CBQ PracticeClass 12 Business Studies
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Class 12 Business Studies
CBQ Practice

Competency Based Questions · 3 chapters · 6 CBQ sets

Question types:Case StudySource BasedAssertion–Reason
💡Attempt each question before clicking Show Answers — then compare.
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Ch 1

Nature and Significance of Management

2 sets
CBQ 1Case StudyManagement Challenges at TechCraft Solutions4 marks

Read the passage

TechCraft Solutions, an IT firm, expanded from 30 to 120 employees in two years. The founder Meena handled everything herself initially. With growth came inefficiency — projects were delayed, clients complained, and coordination among teams broke down. Meena hired experienced managers for each department, defined clear job roles, set targets (20% revenue growth, 95% client satisfaction), and delegated authority. Despite initial resistance, structured management improved outcomes: project delays fell by 60%, client complaints dropped by 40%, and team morale improved.
1

Which characteristic of management is demonstrated when Meena set specific targets like '20% revenue growth' and '95% client satisfaction'?

1M
(A)Management is universal
(B)Management is goal-oriented
(C)Management is a continuous process
(D)Management is a group activity
2

Delegation of authority solved Meena's problem by:

1M
(A)Eliminating all management problems automatically
(B)Assigning specific tasks and corresponding authority to managers so Meena could focus on strategic decisions
(C)Replacing Meena's role in the organisation
(D)Reducing the number of employees needed
3

The improvement in client satisfaction and employee morale represents which objective of management?

1M
(A)Organisational objectives (profit)
(B)Social objectives (benefit to society)
(C)Personal objectives (employee satisfaction and welfare)
(D)Technical objectives (process efficiency)
4

'Management is both a science and an art.' Justify this with two points for each.

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

Management is an intangible force that cannot be seen but its presence can be felt.

R
Reason

The effectiveness of management is visible through orderly work, motivated employees, and achievement of organisational goals — even though the management process itself is not physically visible.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
Ch 2

Principles of Management — Fayol and Taylor

2 sets
CBQ 1Case StudyFayol's Principles in a Garment Factory4 marks

Read the passage

Sunrise Garments employs 500 workers across three shifts. Workers received conflicting orders from the production manager and shift supervisors — some were told to prioritise speed, others quality. Different workers performed the same task differently each day. A new factory manager, Mr. Kapoor, introduced: (i) a rule that each worker reports to only one supervisor; (ii) all quality-related instructions come from one head; (iii) a standard operating procedure for each task. Within a month, production efficiency rose 25% and defect rates fell 30%.
1

Receiving conflicting orders from two supervisors violates which of Fayol's principles?

1M
(A)Unity of Direction
(B)Unity of Command
(C)Division of Work
(D)Discipline
2

Introducing standard operating procedures for each task applies which of Taylor's principles?

1M
(A)Harmony, not discord
(B)Science, not Rule of Thumb
(C)Mental Revolution
(D)Maximum output
3

All quality instructions coming from one head demonstrates which Fayol principle?

1M
(A)Unity of Command (one person, one boss)
(B)Unity of Direction (one head, one plan for a group of activities with same objective)
(C)Centralisation
(D)Scalar Chain
4

Distinguish between 'Unity of Command' and 'Unity of Direction' with examples from the Sunrise Garments case.

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

Fayol's principles of management are universally applicable.

R
Reason

Fayol developed his principles from his experience as a manager in a large mining company — while they provide a general framework, their application may need to be adapted to specific organisational contexts.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
Ch 3

Planning, Organising and Staffing

2 sets
CBQ 1Case StudySpeedTech's Expansion Plan4 marks

Read the passage

SpeedTech Logistics plans to expand to three new cities in two years. The CEO creates a detailed plan: target cities, ₹5 crore investment per city, 50 new staff per location, technology investment for tracking. However, real estate costs in Pune are 40% higher than expected, and new government regulations affect imported tracking equipment. The HR team begins recruitment — posting jobs internally for 5 positions and externally for 45 positions through campus placements, job portals, and a placement agency. Selected candidates go through written tests, group discussions, and two rounds of interviews.
1

Which limitation of planning is demonstrated when real estate costs in Pune turned out 40% higher than planned?

1M
(A)Planning reduces creativity
(B)Planning may not work in dynamic environments where conditions change unexpectedly
(C)Planning takes too much time
(D)Planning leads to rigidity
2

Using internal job postings for 5 positions offers which advantage?

1M
(A)Access to a larger talent pool
(B)Motivates existing employees by providing growth opportunities and reduces induction cost
(C)Brings fresh ideas from outside the organisation
(D)Reduces the total number of employees needed
3

Which step of the staffing process is being performed when candidates undergo written tests, group discussions, and interviews?

1M
(A)Recruitment
(B)Training and Development
(C)Selection
(D)Performance Appraisal
4

Explain 'staffing' as a function of management. Why is it considered a continuous process?

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

Controlling is a backward-looking function of management.

R
Reason

Controlling compares actual performance with planned standards to identify deviations, investigates causes, and takes corrective action to ensure future performance meets the plan — making it future-oriented in its corrective purpose.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
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