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CBSE · Class 12 · Business Studies

Organising

Standard difficulty · 20 questions · 40 marks · Time: 37 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
The first step in the process of organising is:
  1. assignment of duties
  2. establishing reporting relationships
  3. departmentalisation
  4. identification and division of work
2.
What is meant by “delegation”?
  1. passing authority down to a subordinate
  2. answerability for the final result
  3. the network of social relationships among employees
  4. the right to command
3.
Which firm would best suit a functional structure?
  1. A growing firm adds new product lines often and wants to expand easily.
  2. A company has separate units for cars, tractors and buses, each with its own head.
  3. A firm makes soaps, biscuits and paints, each needing separate attention.
  4. A firm makes only cement and wants specialists in production, finance and sales.
4.
Which of these is part of informal organisation?
  1. Employees who play cricket together help each other at work.
  2. Each manager’s authority and duties are set out in the job description.
  3. Orders pass down the official chain of command.
  4. Rules and procedures for each job are written down.
5.
Which statement is about responsibility?
  1. The supervisor can order workers to work overtime.
  2. The supervisor must complete the order by Friday.
  3. The manager must answer to the director for the result, though he delegated the task.
  4. The manager gives the supervisor the right to buy materials up to ₹50,000.
6.
The firm can add new departments as it grows. Which importance of organising does this show?
  1. expansion and growth
  2. benefits of specialisation
  3. development of personnel
  4. optimum utilisation of resources
7.
A factory has 54 workers. Each supervisor can manage 10 workers. How many supervisors are needed?
  1. 540 supervisors
  2. 5 supervisors
  3. 6 supervisors
  4. 8 supervisors
8.
Which is true of delegation, but not of decentralisation?
  1. it is a process
  2. it is the result of delegating at all levels
  3. it has a wide scope
  4. it gives lower levels more autonomy
Section B — Short answer8 × 2 = 16 marks
9.
What is organising?
10.
Explain each term: (a) informal organisation (b) organising
11.
Which organisation structure suits each firm? (a) A small firm wants to avoid duplicating effort across units. (b) A firm wants each product line to be responsible for its own profit.
12.
Which element of delegation is shown in each? (a) The supervisor can order workers to work overtime. (b) The manager gives the supervisor the right to buy materials up to ₹50,000.
13.
Put these steps of the organising process in order: (a) assignment of duties (b) identification and division of work (c) departmentalisation
14.
Distinguish between delegation and decentralisation on the basis of (a) scope (b) freedom of action.
15.
A firm has 525 workers. Each supervisor manages 25 workers and each manager manages 3 supervisors. How many supervisors and managers are needed?
16.
Is each a part of formal or informal organisation? (a) Employees who play cricket together help each other at work. (b) A senior worker is looked up to as a leader by his friends, though he has no official post.
Section C — Word problems4 × 4 = 16 marks
17.
Explain the steps in the process of organising.
18.
Match each with its meaning: (a) accountability (b) decentralisation (c) informal organisation. Choose from: answerability for the final result; the network of social relationships among employees; spreading decision-making authority to all levels.
19.
At Greenleaf Agro Ltd: (a) The manager must answer to the director for the result, though he delegated the task. (b) The supervisor must complete the order by Friday. (c) The manager gives the supervisor the right to buy materials up to ₹50,000. Identify the element of delegation in each, and state the direction in which it flows.
20.
Pragati Paper Mills Ltd used to make only shoes and was organised into production, marketing and finance departments. It now also makes paints and fans. (a) Name its present and suitable new structures. (b) Give two advantages of the new structure. (c) Give one disadvantage of it.
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Business Studies

Answer key

Organising · AW-12BS-ORG-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) identification and division of work—
2(a) passing authority down to a subordinate—
3(d) A firm makes only cement and wants specialists in production, finance and sales.—
4(a) Employees who play cricket together help each other at work.—
5(b) The supervisor must complete the order by Friday.—
6(a) expansion and growth—
7(c) 6 supervisors54 ÷ 10, rounded up
8(a) it is a process—
9Identifying and grouping the work to be done, defining and delegating authority and responsibility, and establishing relationships so people can work together.—
10(a) the network of social relationships among employees (b) grouping work and setting up relationships so people can work together—
11(a) functional structure (b) divisional structure—
12(a) authority (b) authority—
13b, c, aidentification and division of work → departmentalisation → assignment of duties
14(a) delegation: narrow; decentralisation: wide (b) delegation: more control by superiors; decentralisation: less control—
1521 supervisors; 7 managers525 ÷ 25; 21 ÷ 3
16(a) informal organisation (b) informal organisation—
17Identification and division of work, departmentalisation, assignment of duties to people suited to them, and establishing reporting relationships so everyone knows from whom to take orders.—
18(a) answerability for the final result (b) spreading decision-making authority to all levels (c) the network of social relationships among employees—
19(a) accountability: flows upward and cannot be delegated (b) responsibility: flows upward (c) authority: flows downward—
20(a) functional structure; divisional structure (b) e.g. product specialisation, clear accountability for each division, quick decisions, easy expansion (c) e.g. duplication of activities and higher cost, or conflicts between divisions—