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Important Questions For CBSE Class 12 Business Studies Chapter 5
Important Questions For CBSE Class 12 Business Studies Chapter 5
Business Studies
Chapter 5 – Organizing
1. To make the annual function of the school successful the principal of the
school divided all the activities into task groups each dealing with a specific
area like rehearsals, decoration, stage management, refreshments etc. Each
group was placed under the overall supervision of a senior teacher. Identify
the function of management performed by the Principal in doing so.
(CBSE BOARD 2015)
Ans: Organizing. Organizing is the procedure of recognizing and assemblage the
work to be performed.
12. Divisional structure is more suitable for the firms having several products
and each product has distinct features. Do you agree?
Ans: Yes, I do agree. Divisional structure is suitable to organizations having
several products with each product having distinct features, or for organizations
having coverage of wide geographical area, or having distinct segments. Dividing
the organization into several autonomous divisions allows it may advantages of
functional structure.
13. Which term denotes “The number of subordinates that can be effectively
managed by a superior?
Sanjay found that in both the companies there was systematic coordination
among the various activities to achieve organizational goals. Every employee
knew who was responsible and accountable to whom, The only difference was
that in his organization communication took place only through the scalar
chain whereas ‘Panda Trucks Ltd.’ was allowing flow of communication in all
the directions as per the requirement which lead to faster spread of
information as well as quick feedback.
(a) Identify the type of organization, which permits ‘Panda Trucks Ltd.’ the
flow of communication in all the directions.
Ans: In Panda Trucks Ltd., informal organization permits the flow of
communication in all the directions.
(b) State another advantage of the type of organization identified in (a) above.
Ans: The another advantage of informal organization is Promotion of social and
cultural values. Members of informal organization share common thoughts, social
and cultural beliefs. Their interests are promoted which adds to the strength of the
organization and a commitment to accomplish its formal goals.
(c) State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to
the society.
Ans: The two values that ‘Panda Trucks Ltd.’ wanted to connect to the society are
given underneath.
Advantages:
i. Each division can work as an independent unit.
iii. Removes the need for direct supervision of division by corporate managers.
19. “A Manager is of the view that he is not responsible for the quality of work
that he has delegated to his subordinate.” Do you agree with his view point?
Justify you answer by giving proper agreements.
Ans: Statement is incorrect as the principle of absoluteness of responsibility is
violated in this case.The person who delegates authority remains accountable to his
own boss for the work he has delegated to his subordinate. In brief, it can be said
that the process of delegation of authority does not relieve the manager of his own
accountability.
20. A Manager revises the production target from 3000 kg per month to 6000
kg per month. But the authority to purchase raw material was not given by
the manager. Therefore, revised production target could not be achieved.
Who is responsible?
Ans: The Manager is answerable because obligation has been created without
granting authority. The principle of parity of authority and responsibility has been
despoiled.
22. A company has been registered under the Companies Act with an
authorized share capital of Rs. 20,000 crores. Its registered office is situated in
Delhi and manufacturing unit in a backward district of Rajasthan. Its
marketing department is situated in Bhopal. The company is manufacturing
Fast Moving Consumer Goods (FMCG).
(i) Suggest with the help of a diagram a suitable organization structure for the
company.
Ans. Divisional Structure
(i) Identify and briefly explain the concept used by Aman Chadha in the above
case which helped him in focusing on objectives.
(CBSE BOARD 2017)
Ans: Aman Chadha employs the notion of delegation. This is because Aman found
the level of work too much for him to handle alone, so he decided to hire more
people. He then allocated the responsibilities to Ishan and Vrinda so that Aman
could concentrate on the goals. As a result, he's delegating work to his
subordinates.
(ii) Also, state any four points of importance of the concept identified in (i)
above.
Ans: Advantages:
1. Each division can work as an independent unit.
Disadvantages:
1. This structure is not suitable for small organization.
Preference If the lower level managers are If the lower level managers are
not very competent or competent enough to make the
experienced enough to take decisions, organizations will
decisions, organizations tend to benefit from decentralization.
prefer centralization.