Business Studies Organising Most Important Previous Year Questions for Class 12 -

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Business Studies Organising Most Important Previous Year Questions for Class 12 helps to review the concepts and develop an appropriate exam strategy for Board exams 2025. The value of Organising Class 12 PYQs stems from a variety of factors, including improved Exam preparation and more confidence. The board exam preparation of Commerce students with Business Studies subject is critical, and even a single error can result in a significant loss of numbers in the exam. Practicing the PYQs on Class 12 Organising can help students pick which questions to answer first and how to answer them in less time. You can even download the Organising PYQ PDF and keep it for future practice.

Business Studies Organising Most Important Previous Year Questions for Class 12

The Organising Previous Year Questions of Business Studies for Class 12 provided here comes with a detailed solution. One of the most essential benefits of having Business Studies’s Organising PYQs of Class 12 as it provides a clear idea of exam pattern and question level. Confidence in answering and solving chapter-related questions, regardless of difficulty level. Furthermore, the previous year’s question paper allows students to practice various questions and receive step-by-step answers to all questions.

Organising Previous Year Questions for Class 12

Students can improve their conceptual knowledge by reviewing the Organising questions with solutions. The detailed solution explains the reasoning behind each question. Check all type of questions (1/2/3/4/5/6 Marks) below –

1 Mark Questions

Q1. The process of defining and grouping the activities of the enterprise and establishing authority relationship among them is:

(a) Directing

(b) Staffing

(d) Organising

S1. Ans. (d)

Sol. Organising involves defining and grouping the activities of the enterprise and establishing authority relationships to ensure effective performance and attainment of objectives.

Q2. ‘Rainbow World School’ planned its annual alumni meet to get in touch with old students. Task groups like invitation committee, decoration committee and food committee were formed and placed under the overall supervision of the official in-charge of the event. Reporting relationships were established among various groups to enable smooth interaction and clarity about each group’s contribution towards the event.

(a) Planning

(b) Directing

(d) Staffing

S2. Ans. (c)

Sol. The formation of task groups like invitation, decoration, and food committees under the supervision of an official, with established reporting relationships, highlights the function of organising to achieve smooth interaction and clarity.

Q3. The process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results is called:

(a) Coordination

(b) Management

(d) Delegation

S3. Ans. (c)

Sol. Organising initiates the implementation of plans by assigning roles, establishing relationships, and deploying resources effectively to achieve identified results.

Q4. Which type of organisation structure has a likely disadvantage of pursuing departmental interests at the cost of organisational interests leading to creation of functional empires wherein importance of a particular function may be over-emphasised?

(a) Formal organisational structures

(b) Functional organisational structure

(d) Informal organisational structures

S4. Ans. (b)

Q5. The framework within which managerial and operating tasks are performed, which specifies the relationship between people, work and resources and allows coordination among different resources to accomplish desired goals is known as

(a) Organisation chart

(b) Levels of management

(d) Organisation structure

S5. Ans. (d):

Sol. The organization structure can be defined as the framework within which managerial and operating tasks are performed.

3 Mark/4 Mark Questions

Q6. State any three limitations of the ‘divisional structure’ of an organization.

S6. Sol. Limitations of the divisional structure of an organization:

(i) Conflicts: Conflicts may arise among different divisions concerning allocation of funds. A particular division may seek to maximize profits at the cost of another division.

(ii) Higher cost: It may increase the cost since there may be a duplication of activities across divisions. (iii) Misuse of authority: Divisional heads may misuse their authority ignoring organizational interests.

Q7. State any three limitations of informal organization.

S7. Sol. The following are the three limitations of informal organization:

(a) Rumours: Informal organization may create rumors which go against the interest of the formal oorganization

(b) Resistance to change: Informal groups may oppose changes proposed by formal organisations. Such resistance to change may delay or restrict growth.

(c) Conformity: Informalorganizationn often puts pressure on their members to conform to group expectations. Norms set by informal groups may be against the organisational interests.

Q8. Give the meaning of ‘Informal Organisation. State it’s any three advantages.

S8. Sol. An informal structure is a network of social relationships that arises out of personal interactions among the employees of an organisation beyond their officially defined roles. In this regard, it can be said that an informal structure originates from within a formal organisation.

The following are the advantages of an informal organisation:

(i) Faster flow of communication: As no definite path or channel of communication is followed in an informal organisation, Information spreads faster.

(ii) Fulfillment of social needs: An informal organisation allows for personal communication beyond the officially defined roles. This enables the employees to interact with like-minded colleagues. This unofficial interaction provides a sense of belongingness among the employees towards one another and towards the organisation

(iii) Fulfillment of organizational objectives: An informal organisation supports the working of a formal organisation and thereby helps in the fulfillment of the organisational objectives in a better manner. For instance. the managers can interact with the workers informally and assess their views on various matters.

Q9. Give the meaning of ‘Formal Organisation. State it’s any three advantages.

S9. Sol. A formal organisation structure is a well defined structure of authority and hierarchy that clearly specifies the boundaries of authority and responsibility in an organisation. The rules and policies to be followed are clearly stated.

The following points highlight the advantage of the formal organisation:

(a) Reduced confusion: A formal organisation clearly defines the working relationships and the hierarchy. That is, it clearly specifies who should report to whom. In this way, it facilitates unity of command, thereby reducing confusion in the working operations.

(b) High stability: By defining the procedures and rules clearly, a formal organisation makes the behavior of the employees more predictable, bringing stability to the organisation.

(c) Reduced duplication of work: Since the responsibilities are clearly defined, there is no room for ambiguity in the roles of various employees. This helps in avoiding duplication of work and efforts.

Q10. Explain the following points on importance of delegation of authority:

(a) Motivation of employees

(b) Employee development

S10. Sol. (a) Motivation of employees: Delegation is not merely sharing of work but involves trust on the part of the superior and commitment on the part of the subordinate. This builds the self-esteem of the employees thereby Improving their confidence. It helps to motivate employees as the employees feel encouraged and try to Improve their performance further.

(b) Employee development: Delegation helps in development of employees as the employees get more opportunities to utilise their talent. It empowers the employees by providing them a chance to use their skills, gain experience and develop themselves for higher positions.

(c) Basis of management hierarchy: Delegation helps in establishing a management hierarchy through clear superior-subordinate relationships. It is this degree and flow of authority which determines who has to report to whom which in turn decides the power that each job position enjoys in the organisation.

5 Mark /6 Mark Questions

Q11. Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilisers for North India where the voltage fluctuation ranges from 220 V to 230 V.

Once the so demand for North India was taken care of, they at decided to launch stabilisers of varying voltages from 90 V-260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions. Though all the engineers were appointed to manufacture stabilisers but the product differed from region to region.

(a) Identify the organisational structure of N-Guard Company.

(b) State any two advantages and two limitations of the structure identified in the above para.

S11.

Sol. (a) The divisional structure is followed by N-Guard Company. N-Guard Company decided to appoint different engineers for all the regions.

(b) The advantages of a divisional structure are:

(i) Managerial efficiency: A divisional structure provides numerous opportunities for the development of skills and knowledge of the managers. The head of each division gains experience as he or she deals with a variety of functions simultaneously. This enables the division head to grow professionally and improve proficiency.

(ii) Measurement of performance: In a divisional structure, the performance of each of the divisions is judged on the basis of its profit and loss during a particular period. This type of assessment of performance is easier and helps in taking appropriate and timely corrective action in case of poor performance.

The limitations of a divisional structure are:

(i) Departmental conflicts Sometimes conflicts may arise among different divisions with regard to various decisions and actions of the organisation such as those relating to allocation of funds and resources.

(ii) Increase in cost- As there exists a similar functional structure under each division, the same set of functions are performed under each department. Thus, there is high probability of overlapping of activities, which results in a rise in cost for the organisation.

Q12. Give the meaning of ‘divisional structure’ of organising. State it’s any four advantages.

S12. Sol. Divisional structure is an organisation structure comprising of separate business units or divisions created on the basis of different products, geographical area, customer groups etc.

Advantages of divisional structure:

(i) Executive development: Divisional heads gain experience in all functions relating to a particular product. Development of varied skills prepare them for top management positions.

(ii) Accountability: It is possible to measure performance and fix responsibility because resources and costs can be easily accounted for as they are assigned to divisions.

(iii) Easy expansion: For every product a separate division is opened. For example, if a company wants to introduce a new product, it can be introduced easily without disturbing the existing divisions. Hence, corporate expansions can be easily implemented.

(iv) Quick decision making: Every division is independent in itself. The divisional manager can take decisions regarding his division independently without consulting other divisional managers.

Q13. State any five points which highlight the importance of delegation of authority.

S13. Delegation refers to the downward transfer of authority from a superior to a subordinate. It takes place when a manager passes on to his subordinate some of his tasks or functions, together with the necessary authority to perform the tasks.

Importance of delegation of authority:

(a) Effective management: By delegation of authority, managers get freedom from doing routine work. They get more time for strategic planning and policy making.

(b) Employee development: As a result of delegation of authority, employees get more opportunities to utilise their talents and skills. It prepares them to be future managers.

(c) Motivation of employees: Subordinates feel motivated when they are delegated higher level responsibilities. It enhances their job satisfactions and confidence level.

(d) It facilitates growth of organisation by providing a ready work force to take up leading positions in new ventures.

(e) It establishes a management hierarchy through clear superior-subordinate relationships.

(f) It helps in better coordination by avoiding duplication of work and avoids overlapping of duties.

Q14. Kartik opens a bakery shop in the local market. With the increasing demand of his bakery products, he feels it will be impossible for him to handle all the work himself. So, he appoints Bhavana to perform tasks on his behalf, thereby reducing his workload. It enables Kartik to use his time on high priority activities.

(a) Identify and explain the concept of ‘organising’ discussed in the above case.

(b) Explain the two essential elements of the concept identified in (a) above.

S14.Sol. (a) The concept of organising discussed in the above case is Delegation. Delegation is the transfer of authority from superior to subordinate, entrustment of responsibility and creation of accountability for performance.

(b) Essential elements of delegation.

(i) Authority: Authority refers to the right of an individual to command his subordinates and to act within the scope of his position. It flows from top to bottom.

(ii) Responsibility: Responsibility as an element of delegation means obligation of a subordinate to perform the assigned duty properly. It flow upwards.

(iii) Accountability: Accountability as an element of delegation means the answerability for the outcome of the assigned task. It flows upwards.

Q15. Aman Chadha started ‘Bulls Eye’ a company for providing cyber security solutions to businesses. Its objective is to prevent, detect and respond to cyber-attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project. He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only to this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.

(i) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.

(ii) Also, state any four points of importance of the concept identified in (i) above.

S15. Sol. (i) The concept used by Aman is ‘Delegation’. Delegation refers to the downward transfer of authority from a superior to a subordinate, thus reducing his/her work load. It is essential for the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. The subordinates perform the task on behalf of the superior. It also satisfies the subordinate’s need for recognition.

However, delegation does not mean abdication as the superior manager would still be accountable for the performance of the assigned task. Further, the authority granted to a subordinate can be taken back and re- delegated to another subordinate.

(ii) Delegation is an integral part of successful running of an organisation. Effective delegation leads to the following benefits to the organisation.

(a) Effective management: By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important matters. Freedom from doing routine work provides them with opportunities to excel in important and new areas.

(b) Employee development: As a result of delegation, employees get more opportunities to utilise their talent. It allows them to develop those skills which will enable them to perform complex tasks and assume those responsibilities which will improve their career prospects.