case studies for business studies class 12 chapter 2

Business Studies Class 12 Case Studies With Solutions

Here we have to provide Case Study Of Business Studies Class 12 CBSE PDF Download from BST Class 12 case studies with answers books prepared by the subject experts.

Case Study Of Business Studies Class 12 CBSE PDF

Business studies class 12 case studies with solutions, answers.

Part A & B: Principles and Functions of Management & Business Finance and Marketing

• Business Studies Class 12 Chapter 1 Case Studies
• Business Studies Class 12 Chapter 2 Case Studies
• Business Studies Class 12 Chapter 3 Case Studies
• Business Studies Class 12 Chapter 4 Case Studies
• Business Studies Class 12 Chapter 5 Case Studies
• Business Studies Class 12 Chapter 6 Case Studies
• Business Studies Class 12 Chapter 7 Case Studies
• Business Studies Class 12 Chapter 8 Case Studies
• Business Studies Class 12 Chapter 9 Case Studies
• Business Studies Class 12 Chapter 10 Case Studies
• Business Studies Class 12 Chapter 11 Case Studies
• Business Studies Class 12 Chapter 12 Case Studies

Case Studies in Business Studies Business Studies Case Studies Business Studies Commerce

Chapter-wise Business Studies Case Studies Class 12 Solved Pdf 2023-24

• CBSE Board , Class 12th
• Last Updated On April 2, 2024

Business studies case studies class 12 are available for students to practice on this page. The Central Board of secondary education has changed the paper pattern and now asks more case studies than direct questions. Business studies class 12 case studies with solutions are provided to students such that they can easily assess their performance with the solutions provided. The business studies class 12 case studies pdf download is available for students.

Business Studies is a main subject of the Commerce Stream in class 12th that helps students to understand how businesses are crucial for the economy. As the present students are the future of the nation. So, if any student wants to establish their own business then the basic learnings will serve them practically that is beyond academics. NCERT Books for Class 12 Business Studies are designed on the CBSE Class 12 Business Studies Syllabus.

Students can also go through the CBSE Class 12 Business Studies Sample Paper and business studies previous year question papers to practice more and score well in the 12th Boards. VidyaSetu is one of the leading Online portals that is known for providing Free Online Video Lectures by subject experts. Every Online Class is based on a particular chapter of Business Studies in a way to develop a deep understanding so that students can themselves solve business studies case studies in class 12 . Business case study examples are provided in such a way that students can get an idea of every topic’s case studies. Business case studies with solutions are provided on this page below. Students can also find the Business Studies class 12 question bank pdf and business studies book at VidyaSetu.

Also Check: Accounts Project Class 11

Important chapters of Business Studies

Part A: Principles and Functions of Management

• Nature and Significance of Management
• Principles of Management
• Business Environment
• Controlling

Part B: Business Finance and Marketing

• Financial Management
• Financial Markets
• Marketing Management

Chapter-wise Business Studies Class 12 Case Studies With Solutions-

Business studies case studies class 12 has become the most important question as it is tricky and at the same time needs an absolute understanding of the topic. Earlier CBSE used to ask direct questions regarding the meaning, advantages, or disadvantages but now they ask business case studies. This is the case as the central board of secondary education felt that there should be more understanding in business studies so that students could apply it practically in the near future. Business case studies examples are given below with solutions of business studies case studies class 12.

Watch Youtube Video Lectures that will help you solve business studies case studies class 12 For all chapters

Youtube Lecture- 25- Multiple Choice Question: Principles of Management

Youtube Lecture- 26- Long Answer Question: Principles of Management

Youtube Lecture- 39- Short Answer Question

Youtube Lecture- 40- Long Answer Question

Youtube Lecture- 72- Business Environment, MCQs

Youtube Lecture- 73- Short Answer Question

Youtube Lecture- 74- Long Answer Questions

Tips to Solve Case Study Questions in Business Studies

Let’s attempt to understand and solve the case study questions for business studies in class 12. As was already established, two books cover the full syllabus. Students should carefully read the NCERT book because it has been written in clear, basic English. Despite being just theory, the exam is quite difficult.

• Read the passage in depth.
• Try to comprehend the situation and focus on the questions asked.
• Generally, the passage given in Business Studies is lengthy, but the solutions are brief and simple.
• Can follow a reversal pattern, i.e. read the questions before and then search for the answers. You will save time.
• Answer briefly and precisely.
• Focus on solidifying key Business Studies fundamentals for acing any case study. If your concepts are clear, you can answer them quickly.
• While answering the case study, pick the keywords or any keyline based on which you withdraw your conclusion. You need to highlight the reason for your answer.

If these simple concepts are kept in mind, students can do well on case study-based problems in class 12 Business Studies.

Benefits Of Solving Business Studies Class 12 Case Studies With Solutions

• It helps students in understanding what kind of questions can come in the business studies examination and also test their knowledge and preparation.
• Students will get aware of answers and the board exam paper pattern.
• Candidates can analyze their preparation for the coming exam by solving the previous year’s question papers.
• Candidates will also understand how to manage to complete the exam on time.
• Solving business studies case studies class 12 will help in Building Confidence in students.
• Solving the case studies can help you to score more than 90% marks in CBSE class 12th business studies exam

Conclusion-

The business studies case studies class 12 mainly focuses on providing business case studies with solutions pdf to make it student-friendly and useful for both Class 12th Exams and other Competitive Examinations. Business studies class 12 case studies pdf download covers chapter-wise case studies with solutions. The students can download business case studies with solutions pdf from the page above at absolutely free of cost.

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Case Study Chapter 2 Principles of Management

Please refer to Chapter 2 Principles of Management Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 2 Principles of Management

Read the source given below and answer the following questions : Taylor suggested that method of production should not be decided by rule of thumb method but all the methods must be tried in the organisation and the one which brings maximum benefits with minimum cost must be selected. To determine the best way there are certain parameters right from procurement of raw materials till the final product is delivered. Taylor developed the concept of assembly line by using method study. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction. Ford motors used this concept very successfully.

Questions :

Question. Taylor developed which concept by using method study? (a) Six sigma (b) Assembly line (c) Just in time manufacturing (d) None of the above

Question. As per above para which company used this concept successfully? (a) Nike (b) Adidas (c) Ford (d) Hyundai

Question. The objective of method study is (a) to differentiate between efficient worker and inefficient worker. (b) to maximise production. (c) to minimise cost, maximise production and maximise quality. (d) none of the above

Question. There is only one best method to do a thing is suggested in which scientific principle? (a) Science not rule of thumb (b) Harmony, not discord (c) Cooperation, not individualism (d) Development of workers to their greatest efficiency and prosperity

Read the source given below and answer the following questions. Ram is a class twelfth commerce student in a reputed school in Punjab. Mohan is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B.Sc course. During vacations when Mohan comes home, Ram shows him the businessstudies project that he is preparing on the topic ‘Principles of Management’. Mohan tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science.

Question. Management principles are taught in the MBA colleges also. This indicates which aspect of nature of management? (a) Management as Science (b) Management as Art (c) Management as Profession (d) Management as both science and art

Question. Management principles and scientific principles are : (a) Same (b) Different from each other (c) Both (a) and (b) (d) None of the above

Question. Management principles are derived or formed by (a) will and wish of Manager (b) overnight (c) deep observation and repeated experiments (d) none of the above

Question. Outline the feature of Principles of Management highlighted above. (a) Pervasive (b) Contingent (c) Behavioural (d) None of the above

Read the source given below and answer the following questions. Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increasing pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of team was also reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased.

Question. “Workers were feeling cheated and their morale was declining”. This is related to which principle? (a) Principle of Division of Work (b) Principle of Equity (c) Principle of Unity of Command (d) Principle of Initiative

Question. “Departments which were producing one product were asked to produce more than one type of products”. This is violation of which principle? (a) Principle of Discipline (b) Principle of Unity of Direction (c) Principle of Division of Work (d) None of the above

Question. “The spirit of team was also reducing”. This indicates violation of which principle ? (a) Principle of “Espirit De Corps” (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Discipline

Question. “Sometimes workers worked under more than one superior.” This is violation of which principle of management? (a) Principle of Discipline (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Equity

Read the source given below and answer the following questions : The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions , which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers ’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly . These principles of management hold great relevance and managers should try to follow them as far as possible . Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees. On the basis of the above paragraph answer the following questions:

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’. According to this statement, the principles of management are important because they help in  ………………… (a) Meeting changing environment requirements (b) Optimum utilization of resources and effective administration (c) Providing managers with useful insights into reality (d) Fulfilling social responsibility

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him? (a) Discipline (b) Order (c) Unity of direction (d) Initiative

Question. Identify the nature of principle of management discussed in the given para. (Choose the correct alternative) (a) General guidelines (b) Universal applicability (c) Formed by practice and experimentation (d) Contingent

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation. (Choose the correct) (a) Flexible (b) Contingent (c) Behaviour (d) Absolute

Read the source given below and answer the following questions : Principles of Taylor and Fayol are mutually complimentary. One believed that management should share the gains with the workers, while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Taylor also developed certain techniques of scientific management which aimed at improving the performance of the employees. One of his techniques aimed at differentiating between efficient and inefficient workers. The purpose behind this technique is to reward efficient workers and motivate inefficient workers to perform better. 

Question. Which principle of scientific management advocates complete agreement between the managers and workers? (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of Henri Fayol is being referred to in the above paragraph? (Choose the correct alternative) (a) Discipline (b) Order (c) Equality (d) Remuneration of employees

Question. ‘One of his techniques aimed at differentiating between efficient and inefficient workers’. Name the technique of scientific management reflected in the given statement. (Choose the correct alternative) (a) Functional foremanship (b) Method study (c) Differential piece wage system (d) Standardisation and simplification of work

Question. Which principle of scientific management is the extension of the principle ? (Choose the correct alternative) (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity

Read the source given below and answer the following questions : The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per the requirements .These principles are logical rather than blind faith. They are based on objective assessment of the situation. Management decision taken on the basis of principles are free from bias and prejudice. Managers often try to apply these principles in various day to day situations. violation of these principles can result in negative consequences in the organization. For example, Sushma and Suresh are working  in a Multinational company at the same level. Both are working hard and are happy with their employer. Suresh had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees knew about it. At the time of performance appraisal, the performance of Sushma was judged better than Suresh. Even then their boss Nikhil decided to promote Suresh stating that being a female Sushma will not be able to handle the complications of a higher post. This resulted in a great deal of dissatisfaction for Sushma. Nikhil gave priority to his own interest over the interest of the organization. Since he personally liked Suresh more than Sushma, hence he promoted Suresh instead of Sushma, ignoring the overall interest of the organization. On the basis of the above paragraph answer the following questions:

Question. “The application of principles of management is dependent upon the prevailing situation at particular point of time”. What is the nature of principles of management that is depicted by the above statement? (Choose the correct alternative)  (a) Universal applicability (b) Flexible (c) Contingent (d) Mainly behavioural

Question. ‘Decisions based on management principles are free from bias and prejudice’. This statement shows which importance of principles of management. (Choose the correct alternative) (a) Scientific decisions (b) Fulfilling social responsibility (c) Providing managers with useful insights into reality (d) Meeting changing environment requirements

Question. ‘Nikhil gave priority to his own interest over the interest of the organisation’. Which one of the following principles have been violated in the given case.  (a) Order (b) Equity (c) Discipline (d) Initiative

Question. Violation of which principle of management prompted Nikhil to further violate the managerial principle identified (a) Division of work. (b) Unity of direction (c) Subordination of individual interest to general interest (d) Centralization and decentralization

Read the source given below and answer the following questions : Sakaar Foundation is an NGO (Non-Government organization) working to improve thelives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in Cash, they collect dry ration, old clothes, shoes, toys, books, medicines, etc. from donors. At Sakaar Foundation’s office in Lucknow the material collected is segregated, classified and put in shelves and boxes that are numbered systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is a part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field , leading to efficient utilization of human effort. The management of Sakaar Foundation does not close its ears to any constructive suggestion made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All day long the management works side by side with the volunteers helping ,  encouraging and smoothing the way for them.

Question. _____________ is considered as the father of scientific management. (Fill up the blank with the correct alternative) (a) Peter Drucker (b) F.W.Taylor (c) Henri Fayol (d) Abraham Maslow

Question. Identify the principle of scientific management adopted by Sakaar Foundation in the above case. (Choose the correct alternative)  (a) Science not rule of thumb (b) Cooperation not individualism (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of management means “a specific place for everything and everyone” as adopted by Sakaar Foundation? . (Choose the correct alternative) (a) Discipline (b) Order (c) Initiative (d) Scalar chain

Question. Identify the importance of principles of management that can be linked with the given case. (Choose the correct alternative) (a) Fulfilling social responsibility (b) Optimum utilization of resources and effective administration (c) Meeting changing environment requirements (d) Providing managers with useful insights into reality

Read the source given below and answer the following questions : Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by the principles and techniques of scientific management developed by F.W.Taylor. On completing his MBA, he wanted to apply Scientific Management in his family’s business of fast food chain of restaurants named ‘Burger Mania’. His main goal was to reduce costs with increased output. To begin with, he wanted to develop a standard method which would be followed throughout the organization. So, he investigated traditional methods through work study and unified the best practices. The standard method,i.e., the best way of doing the job was then developed taking into account all parameters right from the procurement of raw materials till the delivery of the final product to the customer. Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency. For this, he set up a special training unit called ‘Hamburger’ in Bengaluru where the workers were given the required training to learn the best method. At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements. The standard time and other parameters were determined on the basis of work study and Vishesh rewarded the workers for meeting the standard output . Now, ‘Burger Mania’ has standardized processes, raw material, time, machinery, trained staff and working conditions that ensure that the food they send out to their customers has the same high standards of excellence and level of quality in every chain or franchise. The application of Scientific Management to every aspect of restaurant operations led to ‘Burger Mania’s’ widespread success.

Question. Identify the principle of Scientific Management that helped Vishesh in investigating the traditional methods through work study and unifying the best practices. (Choose the correct alternative) (a) Science not rule of thumb (b) Method study (c) Harmony not discord (d) Cooperation not individualism

Question. ‘Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency . ’ Identify the principle of Scientific Management mentioned in the given statement. (a) Cooperation not individualism (b) Stability of personnel (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Identify the technique of Scientific Management used by Vishesh to reward the workers for meeting the standard output. (a) Time study (b) Motion study (c) Differential piece system (d) Functional foremanship

Question. ‘At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements.’ Identify the technique of Scientific Management mentioned in the given statement. (a) Method study (b) Motion Study (c) Standardization and simplification of work (d) Time study

Read the source given below and answer the following questions : Amar is the Managing director in a garment manufacturing company. He is an experienced manager and firmly believes in application of principles of management in day to day managerial situations. He believes that management principles are flexible to adapt to dynamic business environment. He believes in producing more and better work for the same effort. He always hires specialists for various job positions. This results in efficient and effective output. Hence the organization has separate departments for finance, marketing, production and human resource. Being a management expert, Amar believes in the concept of having one and only one boss for every individual employee. He always aims at avoiding dual subordination within the organization. Under his direction and supervision, his company has achieved new heights within a short span of time. As the Managing director, he formulates policies that aims at minimizing employee turnover and maintaining organizational efficiency. Hence his organization selects personnel after due and rigorous procedure, and once a person is selected, he is kept at his post for a minimum fixed tenure. This helps in improving the overall efficiency of the organization.

Question. Identify which importance of principles of management is mentioned here? (a) Providing managers with useful insights into reality (b) Meeting changing environment requirements (c) Fulfilling social responsibility (d) Scientific decisions

Question. ‘He always aims at avoiding dual subordination within the organization’. Name the principle of management that aims at avoiding dual subordination. (a) Order (b) Equity (c) Unity of direction (d) Unity of command

Question. Identify the principle of management that suggests setting up of separate departments for finance, marketing, production etc. within an organization. (a) Discipline (b) Centralization and Decentralisation (c) Division of work (d) Authority and responsibility

Question. “As a Managing Director, he formulates policies that aim at minimizing employee turnover and maintaining organizational efficiency”. Which principle of management Amar is following? (a) Order (b) discipline (c) Equity (d) Stability of personnel

Read the source given below and answer the following questions : After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his /her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount , whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive with in a year. Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. 

Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here? (a) Discipline (b) Order (c) Remuneration to Employees (d) Unity of Direction

Question. Aditi tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. Which principle is being violated here? (a) Discipline (b) Order (c) Equity (d) None of these

Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here? (a) Centralization and Decentralization (b) Division of work (c) Discipline (d) Order

Question. “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority”. Identify the principle of Management being followed here: (a) Centralization and Decentralisation (b) Authority and Responsibility (c) Unity of Command (d) Unity of Direction

Read the source given below and answer the following questions : Ramesh is day and night involved in the organizing of his business. He has given job to every employee based upon his capability and experience. As there has been proper division of work and systematic allocation of tasks the productivity is increasing. The size of the company has increased in the recent past. The related activities which are similar in nature are grouped together. Everything was going well in the organisation until recently. The company has recently seen a deficit of exchange of information across functionally different departments. 

Question. Now the related activities which are similar in nature are grouped together. Which step of organising is highlighted in the above case: (a) Identification and division of work (b) Departmentalisation (c) Assignment of duties (d) Establishing authority relationship

Question. The company has recently seen a deficit of exchange of information across functionally different departments. Which one disadvantage of functional structure is highlighted above: (a) Function allocative (b) Conflict of interests (c) Inflexibility (d) Problems in coordination

Question. Which importance of organizing is highlighted in be above case: (a) Optimum utilisation of resources (b) Effective administration (c) Benefits of specialisation (d) Expansion and growth

Question. Identify the type of organisational structure which facilitates occupational specialisation. (a) Functional structure (b) Horizontal structure (c) Network structure (d) Divisional structure

Read the source given below and answer the following questions : Ganesh Leathers is a shoe manufacturing company. The firm has decided to increase the productivity of its workers. For this the firm has chalked out a plan. It will be hiring operational managers to work at the lower levels of management. It has decided to keep eight managers over a group of workers. Thus every worker has to report to all these eight managers. The managing director of the company Mr. Ganesh Tiwari is of the view that the principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. According to him it is necessary to differentiate between efficient and inefficient workers. Hence, he introduced specific rate of wage payment for those who performed above standard and for those who performed below standard. The basic idea behind is to improve the productivity of all the workers.

Questions : Question. Which technique of scientific management is employed by Ganesh leathers by keeping eight managers. (a) Time study (b) Motion study (c) Functional foremanship (d) Standardisation of work

Question. Which principle of Henri Fayol is followed by the company in the above case. (a) Unity of direction (b) Unity of command (c) Initiative (d) Discipline

Question. Which nature of principles of management is mentioned in the given para. (a) Universal applicability (b) Flexibility (c) General guidelines (d) Contingent

Question. Which technique of scientific management is used by the firm to differentiate between efficient and inefficient workers. (a) Time study (b) Motion study (c) Differential piece rate system (d) method study

Read the source given below and answer the following questions : Care Ltd. is a well known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied. The overall pay and compensation paid by the company is fair to both- employees and the organisation. There is complete cooperation between the workers and management. The spirit of competition has been replaced by the spirit of cooperation within the organisation. As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the rural areas. 

Questions : Question. ‘It is able to earn adequate revenue to cover costs’.the company in the given statement. (a) Growth (b) Survival (c) Profit (d) Diversification

Question. Which importance of management is discussed in the given case. (a) Management increases efficiency (b) Management helps in the development of society (c) Management creates a dynamic organisation (d) Management is an intangible force

Question. Name the principle of Fayol followed by the company in the given case. (a) Discipline (b) Order (c) Remuneration of employees (d) Unity of direction

Question. Which principle of scientific management is followed by the company in the given case: (a) Scientific not rule of thumb (b) Harmony not discord (c) Cooperation not individualism (d) Development of each and every person to his or her greatest efficiency and prosperity.

Read the source given below and answer the following questions : Rajat Joined as a CEO of Bharat Ltd. a firm manufacturing computer hardware. On the first day he addressed the employees. He said that he believed that a good company should have an employee suggestion system and he wished to minimize employee turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management . Also that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimize need for using penalties. He told all present that the interests of the organization should take priority over the interests of any one individual employee.

Questions : Question. Identify the principal of management in the following line. “ He said that he believed that a good company should have an employee suggestion system” (a) Unity of command (b) Unity of direction (c) discipline (d) initiative 

Question. Identify the principal of management in the following lines “Which would give rise to a spirit of mutual trust and belongingness among team members. (a) Discipline (b) Unity of command (c) Initiative (d) Esprit de corps. 

Question. Identify the principal of management in following line. “He wished to minimize employee turnover to maintain organizational efficiency.” (a) Stability of personnel (b) Discipline (c) Centralization and Decentralization (d) Remuneration of employees 

Question. Identify the principal of management in the following lines. “He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties.” (a) Initiative (b) Equity (c) Discipline (d) Esprit de corps.

Read the source given below and answer the following questions : Radhika opens a jewellery showroom in Jaipur after completing a course in jewellery designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/ her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discounts rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked the put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.

Question. Identify the principal of management in the following lines. “Therefore after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. (a) Discipline (b) Initiative (c) Scalar chain (d) Remuneration 

Question. Which principle is violated in the following lines. “However when it comes to setting the conflicts among her employees, She tends to be more biased towards her female employees.” (a) Discipline (b) Equity (c) Division of work (d) Justice 

Question. Identify the principal of management in “She divided the work into small tasks and each employee is trained to perform his/her specialised job” (a) Unity of command (b) Unity of direction (c) Division of work (d) Discipline 

Question. Identify the principal “The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority” (a) Division of work (b) Discipline (c) Initiative (d) Centralisation and decentralisation 

Read the source given below and answer the following questions : As students of a management course Karan and Kunal were asked to prepare a project report on applicability of principles of management in real business situations. In order to conduct the survey Kunal had selected an outlet of a popular chain of fast food restaurant whereas Karan visited a nearby department store. When Kunal presented his report to class, Karan realised that their observations were matching on various grounds. In both the business units, work is divided into small tasks and each is performed by a trained employee. A set of rules are predetermined and communicated to employees for compliance and these is a fixed place for every thing and all employees have been allotted individual space. Moreover, the manager encourage a spirit of mutual trust and belongingness among the employees so that need for imposing penalties is reduced.

Question. Identify the principles of management in the following lines: “There is a fixed place for everything and all employees have been allotted individual space” (a) Unity of direction (b) Order (d) Scalar chain (d) Equity 

Question. Identify the principal of management in the following lines “work is divided into small tasks and each is performed by a trained employee.” (a) Unity of direction (b) Unity of command (c) Division of work (d) Initiativ

Question. Identify the principal of management in following lines “A set of rules are predetermined and communicated to the employees for compliance.” (a) Discipline (b) Scalar chain (c) Unity of command (d) Unity of direction 

Question. Identify the principle of management in the following lines: “Managers encourage a spirit of mutual trust and belongingness among the employees” (a) Unity of command (b) order (c) Equity (d) Esprit de corps 

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Class 12 Business Studies Case Study Questions

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In this article, we will discuss how to get CBSE class 12 Business Studies Case Study Questions from the myCBSEguide App and our Student Dashboard for free.

For the students appearing for class 12 board exams from the Commerce Stream, Business Studies is a core subject. Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem . It well establishes the interdependence of business on various social, political, legal and economic forces and vice-versa. Business Studies is a purely theoretical and a relevantly easier subject for the Commerce students. Business Studies class 12 exam is a highly scoring subject and it facilitates the students to increase their percentile and excel in academics.

12 Business Studies Paper Design

The exam is divided into 2 parts:

• Part A generally contains questions from Principles and Functions of Management and carries 60 marks.
• Part B comprises questions from Business Finance and Marketing, it carries a total of 40 marks.

The syllabus of class 12 Business Studies comprises 12 chapters that are divided into 2 books

• Principles and Functions of Management
• Business Finance and Marketing

Business Studies Syllabus

CBSE has released the latest class 12 syllabus (2022-23) for Business Studies. 

Business Studies Case Study Questions

Case-based questions have always been an integral part of Business Studies class 12 question papers for the past many years. Students are required to focus more on case studies as they require the application of their knowledge of the key business concepts. In the year 2021-22 CBSE introduced a few changes in the question paper pattern to enhance and develop analytical and reasoning skills among students. Sanyam Bhardwaj, controller of examinations, CBSE quoted that case-based questions would be based on real-life situations encountered by the students.

The purpose was to drift from rote learning to competency and situation-based learning. He emphasized the fact that it was the need of the hour to move away from the old system and formulate new policies to enhance the critical reasoning skills of students. Introducing case study questions was a step toward achieving the goals of the National Education Policy (NEP) 2020.

What is a case study question? (Business Studies)

A case study in reference to Business Studies can be thought of as a real-world test of how the implementation works. It is predominantly a report of an organization’s implementation of something such as a practice, a product, a system, or a service. Case studies based on NCERT text form a substantial part of the Business Studies examination. Initially, they were confusing for both students and teachers but now there is a clarity that has made the question paper more student-friendly. A significant weightage has been given to case-based and application-based questions.

Critical and Analytical Thinking

These questions demand critical and analytical thinking on behalf of the students. The best part of these questions is that they provide conceptual hints and keys that point to the right answer. According to the new pattern implemented by CBSE, case-based questions would carry a significant weightage of more than 30% in the Business Studies question paper.

Case Study Passage

As part of these questions, the students would be provided with a comprehensive passage, based on which analytical questions will have to be answered by them. The students would be required to read the passage carefully before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%.

Types of Case Study questions in Business Studies

CBSE plans to increase the weightage of such questions in the following years, so as to enhance the intellectual and analytical abilities of the students. Case study questions would be based on various topics and chapters in Business Studies. It is expected from the students to have complete knowledge of the concepts in their syllabus.

They will have to let go of the shortcut techniques and get to read their textbooks with full concentration, especially for solving case-based questions in Business Studies for the passages given are generally lengthy and require an in-depth study. The best part of having these questions is that the question itself projects a hint of its solution.

The questions asked could be :

• Direct and simple-such questions can easily be solved as the answers are either there in the given passage or the student can solve it at ease by reading and analyzing the passage carefully.
• Indirect and application-based- These are the ones that would require the student to have complete knowledge of the topic and could be answered by application of the concepts. The answers to such questions are slightly tricky and not visible in the given passage, though the passage would highlight the concept on which the questions would be asked by CBSE.

Class 12 Business Studies Case Study

Case study questions asked by CBSE were stated to be quite challenging by many students. It prominently focuses on real and present scenarios of the business world. Though the exam, on the whole, was quite direct and its difficulty level was termed out to be moderate. Around 30% of the question paper consisted of case-based questions that required high-order thinking and analytical skills from the students.

Content of Case Study Questions

The concept of case-based questions is not new since CBSE has always included questions based on Higher Order Thinking Skills (HOTs) and case-based questions. Though now we will have an increased percentage of such questions in the question paper. The student has to keep in mind that the concept-based questions can be attempted only with the proper understanding of the business concepts.

Benefits Of Case-based Questions

Class 12 Business Studies syllabus comprises two books and CBSE can ask Case study questions from any of them. Students must prepare themselves thoroughly for both the books. They must practice class 12 Business Studies case-based questions from the various options available to them.

• Enhance the intellectual capabilities of the students.
• Provide a complete and deeper understanding of the subject.
• Inculcate analytical reasoning and temperament in students.
• Help students retain knowledge for longer periods of time.
• Would definitely help to discard the concept of rote learning and cramming without understanding the core of the subject.
• The questions would facilitate bringing out the much-awaited change in the prevalent system of education in India that hinders the strengthening of practical learning.

Some Case-Study Questions (Business Studies) Class 12

Here are some case study questions for CBSE class 12 Business Studies. If you wish to get more case study questions and other related study material, download the myCBSEguide App now. You can also access it through our Student Dashboard .

Business Studies Case Study 1

Read the following text and answer the questions: ABLEX Ltd. is a big and well-reputed company. The biggest challenge for the company is managing many employees at the same time. As the company has various departments like human resources, marketing, finance,etc., it is very necessary for the company to maintain unity in different departments. All the employees work hard for the organisation. Despite their different interest, they all perform various activities together so as to achieve the objectives of the company. The career of employees is shown a developmental path through proper training modules and job enrichment. Ajay is a manager who assigns all duties and responsibilities to his employees in the department. He uses all sources to develop proper communication with them and leaves no attempt to motivate them.

• It integrates Group Efforts
• It is a Continuous process
• It ensures Unity of Action
• It is Pervasive
• Top Level Management
• Middle-Level Management
• Lower Level Management
• Supervisory Level Management
• Economic objectives
• Social Objectives
• Organisational Objectives
• Personal Objectives

Answer Key:

• (c) It ensures unity of action
• (b) Middle-level management
• (c) Personal objectives
• (a) Directing

Business Studies Case Study 2

Read the following text and answer the question: Mohan works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequited type of bulb manufactured then its production is stopped. Last month when the company came to know that 10-watt bulbs were no more liked by customers, their production was stopped. He works in the purchasing department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Mohan knows this information should be given immediately to the production department before the assembling process starts. However, he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue until it reaches the desired person in the production department. Based on the passage answer the following questions:

• Method study
• Fatigue study
• Standardization and simplification
• None of these
• Scalar chain
• Departmentalization
• Division of Work
• None of the above
• Organization
• Authority and Responsibility
• All of these
• Division of work
• Scalar Chain
• (b) Fatigue study
• (a) Scalar chain
• (c) Gang plank
• (a) Division of work

Business Studies Case Study 3

Read the following passage carefully and answer the questions that follow: Two years ago Radhika completed her degree in food technology. She worked for some time in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months’ credit form farmers cultivating organic crops only. She also decided to follow the steps required for the marketing of the products through her own outlets. She appointed Rakesh as a production manager who decides the exact manner in which the production activities are to be carried out. Rakesh also prepared a statement showing the number of workers that will be required in the factory throughout the year. Radhika informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of 100 per day for not wearing the caps, gloves and apron was announced.

• Standing Plan
• (a) Objectives
• (c) Procedure
• (b) Programme

Tips to Solve Case Study Questions in Business Studies

Let’s try to comprehend and solve case study questions of class 12 Business Studies. As mentioned earlier, the entire syllabus is divided into 2 books. It is expected from the students to rigorously follow the NCERT book as the language written is quite simple and crisp. The exam in spite of being totally theoretical is quite scoring.

• Read the passage in depth.
• Try to comprehend the situation and focus on the questions asked.
• Generally, the passage given in Business Studies is lengthy but the solutions are brief and simple.
• Can follow a reversal pattern, i.e read the questions before and then search for the answers. You will save time.
• Answer briefly and precisely.
• Focus on solidifying key Business Studies fundamentals for acing any case study. If your concepts are clear, you will hardly face any difficulty in answering them.
• While answering the case study, pick the keywords or any keyline based on which you are withdrawing your conclusion. You need to highlight the reason for your answer.

These simple points if kept in mind will definitely help the student to fetch good marks in case study-based questions in class 12 Business Studies.

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CBSE Class 12 Business Studies Chapter 2 – Principles of Management Class 12 Notes

Principles of management class 12 revision notes .

In the principles of management class 12 notes, we will study the business principles guiding the working of Toyota Motor Corporation. Then, we will study the fascinating evolution of management principles. Furthermore, we will study the concept of Principles of Management. Thus, we will see as to how a managerial principle serves as a broad and general guideline for decision making and behavior. Moreover, we will study nature i.e. the qualities and characteristics of Principles of Management. Also, we will read the case study of ‘Kiran Mazumdar Shaw’, a highly successful Indian businesswoman and CEO of ‘Biocon’. From the story, we will understand the significance of management principles. Hence, we will get to know that the principles of management derive their significance from their utility. We will discuss the significance of management principles in terms of six useful points.

Then, we will study the scientific management proposed by the Father of Scientific Management F.W. Taylor. Also, we will read an extract depicting his contribution to Scientific Management. Thus, we will study Principles of Management as proposed by Taylor. Also, we will study the techniques of Scientific Management. Furthermore, we will be discussing the methods to standardize and simplify the work. Then, we will discuss the 14 principles of management as listed by Henri Fayol. These helped in improving managerial efficiencies. In the end, we will compare the contributions of Taylor and Fayol.

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Sub-topics under Principles of Management :

• Concept of Principles of Management :   In this Subtopic, we will understand how a managerial principle serves as a broad and general guideline for decision making and behavior.
• Fayol’s Principles of Management :  In this Subtopic, we will study the 14 principles of management as listed by Henri Fayol which helped in improving managerial efficiencies.
• Taylor’s Scientific Management : In this Subtopic, we will study the scientific management proposed by the Father of Scientific Management F.W. Taylor.

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CBSE Class 12 Business Studies Revision Notes

• CBSE Class 12 Business Studies Chapter 13 – Entrepreneurship Development Class 12 Notes
• CBSE Class 12 Business Studies Chapter 12 – Consumer Protection Class 12 Notes
• CBSE Class 12 Business Studies Chapter 11 – Marketing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 10 – Financial Markets Class 12 Notes
• CBSE Class 12 Business Studies Chapter 9 – Financial Class 12 Notes
• CBSE Class 12 Business Studies Chapter 8 – Controlling Class 12 Notes
• CBSE Class 12 Business Studies Chapter 7 – Directing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 6 – Staffing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 5 – Organising Class 12 Notes
• CBSE Class 12 Business Studies Chapter 4 – Planning Class 12 Notes

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NCERT Solutions for Class 12 Business Studies Chapter 2

NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management updated for CBSE session 2024-25. Get here all very short, short answer type and long answers questions point wise to prepare for exams. All the answers are written step by step format.

Class 12 Business Studies Chapter 2 NCERT Solutions

• Class 12 Business Studies Chapter 2 Solutions
• Class 12 Business Studies Chapter 2 MCQ
• Very Short Answers Questions Chapter 2
• Short Answers Questions Chapter 2
• Long Answers Questions Chapter 2
• Study Material English Medium
• NCERT Book Chapter 2 in English
• Study Material Hindi Medium
• NCERT Book Chapter 2 in Hindi
• Class 12 Business Studies NCERT Solutions
• Class 12 all Subjects NCERT Solutions

What makes principles of management flexible? Principles of management are not applied as it is in real life business because it needs to be modified as per the situations and requirements by the manager.

State the main objective of time study. The main objective of time study is to determine the standard time to complete any task by measuring the quantum of time required to complete that task.

Name the principle that is an extension of the ‘harmony, not discord’. The principle that is an extension of the ‘harmony, not discord’ is Cooperation, Not Individualism.

State any two causes of fatigue that may create hindrance in the employee’s performance. The two causes of fatigue that may create hindrance in the employee’s performance are long working hours and having uncordial relations with the boss or bad working conditions.

SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited. In the above case the principle that is followed by the Wales Limited is Stability of Personnel. According to this principle employee turnover should be minimized to maintain organizational efficiency. In the above case Sanaklal and Gagan selected through a rigorous recruitment process and according to this principle once the personnel is hired then they should be given a reasonable amount of time to show their results.

Which technique is used by Taylor for distinguishing efficient and inefficient workers? The technique that is used by Taylor for distinguishing efficient and inefficient workers is the differential piece wage system.

How is the principle of ‘unity of command’ useful for management? Explain. According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organization should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. The dual subordination should be avoided. This is to prevent confusion regarding tasks to be done. Suppose a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells her/him not to offer more than 5% discount. Now there is no unity of command. This can be avoided if there is coordination between various departments

Define scientific management. State any three of its principles. The term ‘Scientific management’ was developed by Frederick Taylor (1856-1915) in 1911. It refers to the classical outlook of management which focused on devising the best ways of doing the work and thereby increasing the effectiveness and efficiency of work. Scientific management implies working according to standardized techniques and tools and with the help of specialized personnel so as to improve the quantity as well as the quality of the product and at the same time reducing the costs. The following are three principles of scientific management.

• Harmony, Not Discord: The managers and the workers should maintain a harmonious work environment. They should realize that they depend on each other. Only if they work in amity, will they be able to perform better. Taylor emphasized on complete mental revolution. That is, the workers should change their attitude and each one should realize others importance. Management should take care of the needs of the workers and workers on the other hand should work to their best efficiency. Both should work in harmony towards the common goals of the organization.
• Science, Not Rule of Thumb: According to Taylor, instead of rule of thumb scientific management practices should be followed. Under the rule of thumb, each manger handles a situation as and when they arise. They used the trial and error method to find solutions to a problem. Taylor proposed that instead of this, management practices should be scientific. He suggested that a study of various traditional methods should be done and the best Method/solution among them should be adopted and followed by all the managers in the organization. Such a scientific management greatly reduces the costs and improves efficiency.
• Personnel Development: Overall efficiency of the organization depends on the individual competencies of the employees. Scientific management aimed at improving the working capabilities of the employees to their maximum level. It focused on the training and development of the workers to raise their productivity.

If an organization does not provide the right place for physical and human resources in an organization, which principle is violated? What are the consequences of it? In the stated situation, the Principle of Order is violated. As per the Principle of Order, there should be right arrangement of things. The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities. If this principle is violated, then it leads to chaos and delay in work. For instance, if the files are not kept in a certain order, then it will lead to difficulty in locating a file when required. This will further lead to delay in the work.

Explain any four points regarding significance of Principles of Management. Principles of management play an important role in managerial practices. They guide the Managers in taking actions and decisions. The following points highlight the significance of Principles of Management:

• Providing Managers With Useful Insights Into Reality: It provides the manager with useful insights into real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable mangers to learn from past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.
• Scientific Decisions: Decision must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subject to measurement and evaluation. It helps in decision making. Decisions are taken on the basis of principles that are free from bias and prejudice.
• Fulfill Social Responsibilities: It helps to fulfill social responsibilities by responding to demands of public. Example, the principle of ‘remuneration of employees’ insists on payment of adequate salary to employees which should give them at least a reasonable standard of living.
• Management Training, Education and Research: These principles form the basic roots of management education. Without them management as a discipline could not have been developed. That is, they form an important part of management curriculum. In addition, they also form the basis of further research on management techniques and methods.

Explain the principle of ‘Scalar Chain’ and gang plank. An organization consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as scalar chain. According to Fayol, “Organizations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” Scalar Chain refers to a pre-defined, formal path of authority and communication in the order of highest to the lowest. For example- if A is the CEO of an organization and he has two paths of authorities under him. One, A-B-C and the other A-D-E. Everybody in the organization follows this chain of authority for communication. For example, If C wants to contact with E then he will have to follow this formal path, as C → B → A → D → E. That is, C has to first contact the higher authorities (C → B → A) over him who then traverse the communication to E (A → D → E). However, in case of emergency C may directly contact E through ‘Gang Plank’. Gang plank is a shortest emergency route through which the workers lower in the authority chain can directly contact the persons of higher authority or those working in other scalar chains. In practice it is found that a worker cannot directly contact the CEO of the company. If at all she/he has to, then all the formal levels i.e., foreman, superintendent, manager, director etc. have to know about the matter. However, in an emergency, a worker can contact CEO directly.

Production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle? Mr. Rathore had violated the principle of subordination of individual interest to general interest. By providing the supply order to his cousin at a higher price per unit rather than the firm’s usual supplier who was willing to provide the goods at lower rates for the order he preferred his own interest instead of general interest. And as a result he was achieving his personal goal but not the organizational goal. Following are the positive impacts of following the above principle are:

• This principle helps in achieving the organizational goals.
• This principle provides coordination between individual and organizational goals.
• This principle also helps in maintaining harmony in the organization.
• It leads to increasing the status of the manager and the organization in the eyes of the workers.

Explain the Principles of Scientific management given by Taylor. Scientific management implies knowing exactly what is to be done and devising the best ways of doing it. This term was given by Frederick Taylor (1856-1915) in 1911. It suggests that work should be done according to standardized techniques and tools and with the help of specialized personnel so as to improve the quantity as well as the quality of the product and the same time reducing the costs. That is, scientific management improves the effectiveness and efficiency of work. The following are the principles of scientific management 1. Science, Not Rule Of Thumb: Taylor believed that there was only one best method to maximize efficiency. This method can be developed through studies and analysis. The method so developed should substitute, ‘rule of thumb’ throughout the organization. Scientific method involved investigation of traditional methods through work study, unifying the best practices and developing a standard method, which would be followed throughout the organization. According to Taylor, even a small production activity like loading pigs of iron into box cars can be scientifically planned and managed. This can result in tremendous saving of human energy as well as wastage of time and materials. The more sophisticated the processes, greater would be the savings 2. Harmony, Not Discord: Factory system of production implied that managers served as a link between them- Owners and the workers. Since as managers they had the mandate to ‘get work done’ from the workers, it should not be difficult to appreciate that there always existed the possibility of a kind of class-conflict, the mangers versus workers. Taylor recognized that this conflict helped none, the workers, the managers or the factory owners. He emphasized that there should be complete harmony between the management and workers. Both should realize that each one is important. Management should share the gains of the company, if any, with the workers. At the same time workers should work hard and be willing to embrace change for the good of the company. Japanese work culture is a classic example of such a situation. 3. Cooperation, Not Individualism: This principle emphasized cooperation among the manager and workers over individualism. This principle was an extension of the principle of ‘Harmony, not discord’. According to it, the workers and the manager should work with mutual understanding of each other. For this, management should not close its ears to any constructive suggestions made by the employees. They should be rewarded for their suggestions which results in substantial reduction in costs. They should be part of management and, if any important decisions are taken, workers should be taken into confidence. At the same time workers should desist from going on strike and making unreasonable demands on the management. In fact, when there will be open communication system and goodwill and there will be no need for even a trade union. 4. Personnel Development: Any organization should focus on the development of its workers along with the company’s growth. This is because if the workers will have higher proficiency, then they will be able to increase their contribution to the organization’s development. They should introduce ways and incentives to build up their competitiveness. Efforts towards increasing the efficiency should begin at the very first step i.e. while hiring the workers. Employees should be recruited in a scientific manner. They should be assigned works according to their mental/physical qualities. For increasing the efficiency, the workers should be given a proper training.

Explain the following Principles of management given by Fayol with examples: (a) Unity of direction (b) Equity (c) Espirit de corps (d) Order (e) Centralization and decentralization (f) Initiative

(a) Unity of direction: According to this principle, each unit of the organization should work towards a common objective. According to it, units having same goals should have a single head and plan. This principle helps in eliminating the overlapping of work. For example, if a company is manufacturing motorcycles as well as cars, then it should have two separate divisions for both of them. Each division should have its own in-charge, plans and execution resources. On no account should the working of two divisions overlap.

(b) Equity: This principle focuses on treating each employee fairly/ equally. That is, it states that each employee should be equal in the eyes of the manager. Although this principle calls for kindliness in the behavior of the manager, however sometimes force can also be used. Lazy personnel should be dealt with sternly to send the message that everyone is equal in the eyes of the management. In addition, the workers should be regarded as equal on grounds of religion, language, caste, etc. This helps in building an amiable environment.

(c) Espirit de Corps: This principle recommends that employees should work in unity with each other. They should work as a team. In other words, team spirit should be promoted by the manager. Each employee should have a sense of belongingness. This proves useful especially in large organizations where without team work, achievement of objectives would become difficult. Team sprit increases coordination and mutual understanding among the employees and thereby improves efficiency.

(d) Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.

(e) Centralization and Decentralization: Centralization refers to the consolidation of power and authority to one or only few hands. Here, the decision-making power gets reserved to the central’s point of an organization. On the other hand, decentralization refers to the delegation of authority to more than one level. According to Fayol, the involvement of the employees with the higher authority should be balanced by decentralizing the authority to the managers. For example, if the CEO of a company is responsible for decision making for the entire organization then, this is centralization of power. On the other hand, if the decision-making power is delegated to managers at the middle and lower level then, this will be called decentralization.

(f) Initiative- According to this principle, workers should be given enough motivation and incentive to work. They should be inspired to come up with suggestions for regarding the work. Although initiatives should be encouraged, but they should be in line with the practices and rules of the organization. For example, the managers can ask the workers for their inputs over how to increase efficiency. Also, good suggestions can be rewarded.

How many principles of management are discussed in chapter 2 of Class 12 Business Studies?

Fourteen principles of Fayol’s and 4 principles of Taylor and about 8 techniques of scientific management are discussed in this topics.

According to Class 12 Business Studies, is there a difference between the approach of Fayol and Taylor?

Yes, however their ultimate goal was same – To improve the production and productivity.

What is the major difference between the approaches of Fayol and Taylor in 12th B. St. Chpater 2?

Fayol spoke about improving the administration. His is approach is called top to bottom approach. Whereas, Taylor talked of Improving production at shop – floor level. His approach is called bottom to top approach.

What is the importance of chapter 2 Class 12 Business Studies?

Some of the principles discussed in this chapter will be repeated in the chapter organizing as well as in the chapter directing.

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Case Study Questions for Class 12 Business Studies Chapter 2 Principles of Management

• Last modified on: 7 months ago
• Reading Time: 10 Minutes

Case Study Question 1:

Here you will find Case Study Questions for CBSE Class 12 Business Studies Chapter 2 Principles of Management.

Laxmi opens a jewellery showroom in Delhi after completing a course in jewellery designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Laxmi as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.

In context of the above case:

(i) Identify the principle being applied by Radhika while assigning work. a) Unity of Command c) Division of Work b) Science not rule of thumb d) Unity of Direction

(ii) Identify the principle of management which is being violated by Radhika. a) Discipline c) Equity b) Order d) Remuneration

(iii) While taking decision related to discount which principle of management is being used. a) Scalar chain c) Discipline b) Order d) Centralisation and Decentralisation

(iv) “She had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honor her commitment”.

In the above statement identify the principle of management being followed by Laxmi? a) Scalar chain c) Discipline b) Order d) Centralisation and Decentralisation

Ans. (i) Division of Work (ii) Equity (iii) Centralisation and Decentralisation (iv) Discipline

Units and Chapter List:

Unit 1 – Nature and Significance of Management, Principles of Management and Business Environment

Chapter 1: Nature and Significance of Management Case Studies Chapter 2: Principles of Management Case Studies Chapter 3: Business Environment Case Studies

Unit 2 – Planning and Organising

Chapter 4: Planning Case Studies Chapter 5: Organising Case Studies

Unit 3 – Staffing, Directing and Controlling

Chapter 6: Staffing Case Studies Chapter 7: Directing Case Studies Chapter 8: Controlling Case Studies

Unit 4 – Financial Management and Financial Market

Chapter 9: Financial Management Case Studies Chapter 10: Financial Market Case Studies

Unit 5 – Marketing and Consumer Protection

Chapter 11: Marketing Case Studies Chapter 12: Consumer Protection Case Studies

How to Tackle Business Studies Case Studies in Exams

Here’s a tip on how to approach and answer case study questions for Class 12 BST (Business Studies) exams:

1. Understand the Format:

• Case study questions are designed to test your ability to analyze and apply your knowledge to real-world situations.
• These questions are usually longer in length, but your answers should be concise and to the point.

2. Careful Reading:

• Begin by carefully reading the entire case study. Don’t rush; understand the context and details provided.
• Pay attention to any data, statistics, or specific information presented in the case.

3. Examine the Question:

• Before diving into the case study, read the question(s) associated with it. This will help you focus on what to look for while reading the case.
• Identify the key concepts or issues the question is addressing.

4. Highlight Key Information:

• While reading the case, underline or highlight important facts, figures, or statements that seem relevant to the question.
• Make notes if necessary to organize your thoughts.

5. Analyze the Situation:

• Once you have a good grasp of the case and its details, analyze the situation. Consider the cause-and-effect relationships, potential solutions, and any ethical or business principles involved.

6. Structure Your Answer:

• Start your answer with a brief introduction, summarizing the main problem or situation presented in the case.
• Organize your response logically. You can use bullet points or numbered lists for clarity.
• Present your analysis, providing relevant business theories or concepts as appropriate.
• Offer solutions or recommendations based on your analysis. Be clear and concise in your suggestions.

7. Use Simple Language:

• Write your answers in clear and simple language. Avoid unnecessary jargon or complex vocabulary.
• Ensure your answers are easy to understand for the examiner.

8. Practice with Sample Papers:

• Practice case study questions from sample papers and previous year papers to get a feel for the format and types of questions that may be asked.
• Writing practice answers will help you refine your approach.

Remember to practice, and you’ll become more proficient at tackling case study questions effectively.

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MCQs for CBSE Class 12 Business Studies Chapter 2: Principles of Management

This article provides a list of important mcq-type questions for cbse class 12 business studies chapter 2, principles of management. also, find attached, a pdf download link for future reference. we have also attached a few links which can be useful for the preparation of cbse board examinations 2024..

MCQs for Class 12 Business Studies Chapter 2: This article presents MCQs for CBSE Class 12 Business Studies Chapter 2, Principles of Management. You can also find a PDF download link for future reference. Also, find attached, important resources for preparation for upcoming CBSE Board Examinations 2023-24.

• Divide your time into sections. Dedicate time per question, at your convenience.
• Prioritize solving questions you are confident about.
• Don’t waste your time on questions you have no idea about. Leave it for the last.
• If your answer isn’t available in the options, choose the most precise option and move on to the next question. You can, however, redo the question at last, if time permits.
• Do not waste your time on questions you are not getting the answer to. Move on to the next question.

 CBSE Class 12 Business Studies Revised Syllabus 2023-2024 (PDF)

CBSE Class 12 Business Studies Sample Paper 2023-2024(PDF)

  Important MCQs for CBSE Class 12 Business Studies Chapter 2, Principles of Management are:

 1.' Rule of thumb’ refers to-

( a)Use of personal judgment in handling management issues

( b)Adopting a hit and trial approach to resolve management problems

( c)Both a)and b) given above

( d)None of the above

Answer. c) Both ‘a’ and ‘b’ given above

2.The principle of management given by Fayol which aims at preventing overlapping of activities is:

(a) Division of work

(b) Unity of Command

(c) Unity of Direction

Answer. c) Unity of Direction

3.Espirit de corps means______________.

(a) union is strength.

(b)service is our motto.

(c) buyer beware.

(d) product is our strength.

Answer. a) Union is strength

4.The chain of command from the highest authority to the lowest level in the organization is

(a) Unity of direction.

(b) Unity of command.

(c) Centralization.

(d) Scalar chain.

Answer. d) Scalar chain

5.---------------- is an extension of the principle of division of work but it violates the principle of Unity of command.

(a) Cooperation, not individualism

(b) Functional foremanship

(d) Standardization and Simplification of work

Answer. b) Functional foremanship

6.Concentration of authority at one level is called: -

(a) Decentralisation

(b) Delegation

(c) Accountability

(d) Centralisation

Answer. d) Centralisation

7.Harmony Not discord principle is concerned with ----------------------.

(a) Management should share the gain of the company with workers

(b) Investigation of Task

(c) Scientific inquiry

(d) Observation and Analysis.

Answer. a) Management should share the gain of the company with workers

8." Principles of management are at the core of management theory.They provide basic groundwork for the development of management as a discipline."Identify the significance of Principles of management.

(a)Optimum utilisation of resources and effective administration

(b) Providing managers with useful insights into reality

(c) Management training, education and research

(d) Meeting changing environment requirements

Answer. c) Management training, education and research

9.Assertion: The principles of Harmony not discord & concept of Mental Revolution though appear to be different yet they do convey similar meaning.

Reasoning: The essence of both is the underlying spirit of mutual co-operation.

(a) Both A & R are correct

(b) Both are incorrect

(c) A is correct but R is false

(d) R is correct but A is false

Answer. a) Both A and R are correct

10. The technique of Scientific Management given by Taylor, which aims to   establish the interchangeability of manufactured parts and products is

(a) Method Study

(b) Motion study

(c) Standardization

(d) Differential Piece wage system.

Answer. c) Standardization

11.Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?

(a) Discipline

(d) None of these

Answer. c) Equity

12.W. Taylor is associated with________________.

(a) Scientific Management.

(b) Future management.

(c) Modern management.

(d) Principles of management.

Answer. a) Scientific Management

13.The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems. This is so because ------------------.

(a) The application of principles can be changed as per requirements.

(b) Real business situations are very complex and dynamic and are a result of many factors.

(c) Principles are like different tools serving different purposes, the manager must decide which tool to use under what circumstances.

(d) All the above

Answer. b) Real business situations are very complex and dynamic and are a result of many factors.

 14. The Practice of Management is written by __________.

(a) Peter F. Drucker.

(c) Louis Allan.

(d) Henry Fayol.

Answer. a) Peter. F. Drucker

15.Gang Plank permits direct communication between ----------------.

(a) Employees working at same level

(b) Any employees irrespective of their level

(c) Employees of same department only

(d) None of the above

Answer. b) Any employees irrespective of their level

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• Class 12 Business Studies Important Questions on Chapter 2 - Principles of Management

CBSE Class 12 Business Studies Chapter-2 Important Questions - Free PDF Download

Free PDF download of Important Questions with solutions for CBSE Class 12 Business Studies Chapter 2 Principle of Marketing is prepared by expert teachers from the latest edition of NCERT books . Register online for Business Studies tuition on Vedantu.com to score more marks in your examination.

Vedantu is a platform that provides free NCERT Solutions and other study materials for students. Class 12 Commerce students who are looking for important questions on Business Studies Chapter 2 Principles of Marketing can download the important questions from this page to kickstart your chapter preparation.

Topics Covered in the Chapter Principle of Management

Principle of Management: The Concept

Nature of Principle of Management

Significance of Principle of Management

Taylor’s Scientific Management

Principles of Scientific Management

Techniques of Scientific Management

Functional Foremanship

Standardisation and Simplification of Work (Method Study, Motion Study, Time Study, and Fatigue Study)

Differential Piece Wage System

Fayol Principle of Management

Fayol V/S Taylor

Related Chapters

Study Important Questions for Class 12 Business Studies Chapter 2 – Principles of Management

Very short answer questions (1 mark).

1. State the role of 'Gang Boss' in functional foremanship.

Ans: Gang boss ensures that both the workers and machines are fit for the production. Hence, he is responsible to keep machines and tools in a ready state of work.

2. What is meant by Management principles?

Ans: Management Principles are broad and fundamental truths that establish relation between cause and their effects. These principles serve as guidelines for managerial decision-making and their course of action. 

3. State the technique of scientific management which is the strong motivator for a worker to reach standard performance.

Ans: Differential Piece wage system

4. State the role of 'route clerk' in functional foremanship.

Ans: Route clerk gives or tells the order or route in which the given task should be completed or accomplished. Hence, he is responsible for the specification of the production route.

5. Factory owners or managers relied on personal judgement in attending to the problems they confronted in the course of managing their work. Which principle of Taylor is it referring to?

Ans: Science not Rule of Thumb 

6. What do you mean by Mental Revolution?

Ans: Mental revolution involves transformation in the thinking of both the management and the workers from competition to cooperation.

7. Name the organizational structure which helps in increasing managerial and operational efficiency.

Ans: Functional Structure.

8. A company manufacturing motorcycles and cars should have separate divisions for both, headed by separate divisional managers, separate plans and resources. Identify the principle with the help of this example.

Ans: Unity of Direction.

9. The directors of XYZ limited, an organization manufacturing computer, wants to double the sales and have given the responsibility to the sales manager. The sales manager has no authority either to increase sales expense or appoint new salesmen. Hence, he could not achieve this target. Identify the principle violated in this situation.

Ans: Principle of Authority and Responsibility.

10. Who suggested the concept of functional foremanship?

Ans: Fredrick Winslow Taylor.

11. A subordinate receives order from more than one boss’. Which principle in violated?

Ans: Unity of Command.

12. Hina & Hitesh are typists in a company having the same educational qualification. Hina is getting Rs. 3000 per month and Hitesh is getting Rs 4000 per month as salary for the same work hours. Which principle of management is violated in this case? Name the principle and explain it.

Ans: Principle of Equity is violated in this case. This principle states that employees at similar positions must be treated equally and management must be fair, kind and just towards its employees.

13. What is meant by flexibility of principles of management?

Ans: Flexibility of principles of management means that the managers can modify the principles according to their need and use them creatively for solving the business problems.

Short Answer Questions (3 or 4 Marks)

14. Explain why is it said that principles of management are 'mainly behavioural' and 'contingent' in nature. Also explain how principles of management ‘provides managers with useful insights into reality' and 'helps in thoughtful decision-making'.

Ans: The principles of management are 'mainly behavioural' and 'contingent' in nature and ‘provides managers with useful insights into reality' and 'helps in thoughtful decision-making'. This can be explained as follows:

Mainly Behavioural: Principles of management explains the relationship between human and physical resources but they influence human behaviour the most while achieving organizational goals.

Contingent: The applicability of principles of management depends on the given situation and that point of time according to the needs in which that situation happens.

Provides managers with useful insights into reality: The principles of management are formed after experimentation and practice. So they provide ideas, hints or guidelines to cope up with similar business problems. 

Helps in thoughtful decision-making: Principles of management based on experiments, observations and logic provide realistic, timely objective assessment of the given situation.

15. Explain the principles of scientific management.

Ans: The principles of scientific management are as follows:

Science Not Rule of Thumb: Each and every task performed in an organization should be based on a scientific study and analysis instead of hit and trial method. There should be a scientific plan along with standardised equipment to do work efficiently and effectively.  Hence, to simplify the tasks, and promote ease in its performance, new techniques and methods need to be developed and the management should not keep using the age-old methods and techniques.

Harmony, Not discord: This principle states that management and workers must have good understanding and faith amongst them. The combined efforts of management and workers help in achieving organizational goals.

Cooperation Not Individualism: It is an extension of Harmony, Not Discord. This principle states that each individual must work in the organization towards achieving organizational goals. Both management and workers must work as a team to achieve desired results effectively and efficiently.

Development of Each and Every Person to his or her Greatest Efficiency and Prosperity: According to this principle, organizations must appoint individuals who have capability and ability to perform required work. It must provide continuous on the job training for employees to improve productivity and achieve growth.

16. Explain briefly 'discipline' and 'scalar chain' as principles of general management.

Ans: The explanations are:

Discipline: Discipline means following organizational rules and terms of employment agreement while working in the organization. To maintain discipline, an organization must have a good supervisor, clear and fair agreements and judicious application of penalties.

Scalar Chain: This principle states that an organization must follow a line of authority and communication from the highest to the lower ranks. Only in emergencies, the two people at the same authority levels but working in different departments may follow the concept of gang plank and communicate directly. 

17. Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop 'Aroma Coffee Can' in a famous mall in New Delhi. The specialty of the coffee shop was the special aroma of coffee and wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular; Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the causes for the same. Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analyzed and found out that there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for processing the order. She also realised that there were some flavors whose demand was not enough. So, she also decided to stop the sale of such flavors. As a result within a short period Sandhya was able to attract the customers. Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.

Ans: Techniques of scientific management used by Sandhya to solve the problems were:

Motion Study: It is a study of movements undertaken while doing a job. It eliminates unnecessary movement to complete the task in minimum time with greater efficiency. 

In this case Sandhya identified many unnecessary obstructions in between the processes which could be eliminated.

Simplification of Work: It means simplifying work by eliminating needless varieties, sizes, dimensions etc. of products produced to utilise resources optimally and reduce labour and overhead costs.

In this case, Sandhya stopped the sale of those flavors whose demand was not enough.

18. Explain briefly 'Unity of Direction' and 'Order' as principles of general management.

Unity of Direction: This principle states that each department or group of activities with the same objective should have their own plans and must be headed by independent incharge. One head and one plan concept must be followed.

Order: This principle states that there should be orderliness in the organization. It means there should be a defined place for all resources and all resources should be in the assigned place.

For Example: In a plant layout, production is supposed to be taken on Machine 1 and Machine 2 in a sequence, then both the machines should be arranged near to each other. If both the machines are far away from each other, then there can be delay in the production process, thus causing reduced productivity, and high costs.

19. How are management principles derived? 

"Management principles are evolutionary." Explain.

"Derivation of management principles may be said to be a matter of science." Explain.

Ans: Management principles are derived after observation, experimentation and practice by different managers. These principles evolved over a long period of time after continuous practicing and personal experiences of the managers in the past in real life situations. Management principles are based on human behaviour and can be used creatively by the managers according to the given situations.

20. ‘Discipline is double-edged tool’ Comment.

Ans: Discipline is a double-edged tool as it is not only related to formation of rules and regulations for the employees of the organization but also to motivate or encourage them to follow these rules and regulations. To maintain discipline, an organization must have a good supervisor, clear and fair agreements and judicious application of penalties.

Long Answer Questions (5 or 6 Marks)

21. Explain the features of the principles of Management. 

Ans: The features of management are as follows:

Universal Applicability:   Principles of management have universal validity. These are applicable to all types of organizations, business as well as non-business, small as well as large enterprises and at different levels of authority. As these principles are universal, it can be applied in different managerial situations

General guidelines: Principles of management provide broad and general guidelines for the organization to solve the problems arising in the business. 

Formed by practice and experimentation: Principles are formed after observation, experimentation and practice by different managers over a long period of time. These are evolved after continuous practicing and personal experiences of the managers in the past in real life situations.

Flexibility: Flexibility means that the managers can modify the principles according to their need and use them creatively for solving the business problems.

Mainly behavioural: Principles of management explains relationship between human and physical resources but they influence human behaviour the most while achieving organizational goals.

Cause and Effect relationship: They establish a relationship between cause and effect so that they can be used in different situations.

Contingent: The principles are relative and not absolute. Depending upon the current situation at a certain point of time, the principles are applied. 

22. Explain the importance of management principles.

Ans: The following are the importance of principles of management:

Provides managers with useful insights into reality: The principles of management are formed after experimentation and practice. So they provide ideas, hints or guidelines to cope up with similar business problems.

Optimum utilisation of resources and effective administration: The cause and effect relationship helps managers to foresee the effect of their decisions and actions thus, enabling them to use resources most effectively i.e., maximum benefit with minimum cost.

Scientific decisions: Principles of management are based on experiments, observations and logic. Hence, they provide realistic, timely and objective assessment of the given situation.

Meeting changing requirements: The flexible nature of principles of management provides opportunities to managers to modify principles to meet the needs of the dynamic business environment.

Fulfilling Social Responsibility: By incorporating values as a part of principles has enabled businesses to fulfil social responsibilities. Providing equal opportunities, following environment-friendly production techniques, producing good quality products are examples of social responsibilities of business.

Management training, education and research: The principles of management and the managerial experiences are used as case studies to train employees or for further modification or development of principles already applied.

23. Discuss the differences between the contributions of Taylor and Fayol.

Ans : The difference between the contributions of Taylor and Fayol are:

24. Explain why is it said that principles of management are 'mainly behavioural' and 'contingent' in nature. Also explain how principles of management ‘provides managers with useful insights into reality' and 'helps in thoughtful decision-making'.

25. Discuss the following techniques of Scientific Work Study:

(a) Time Study:

Ans: Time study is concerned with determining the standard time for performing a well defined work. In this, standard time is fixed by using the average time taken to perform the same activity several times. Time study also assists in the determination of wages, drafting incentive schemes, manpower requirements etc. 

(b) Motion Study: 

Ans: It is a study of movements undertaken while doing a job. It eliminates unnecessary movement to complete the task in minimum time with greater efficiency. Also, it aids in designing the best possible method to perform the repetitive work. The major objective of motion study is to eliminate the unnecessary movements in order to complete a task in a shorter time. 

(c) Fatigue Study:

Ans: Fatigue study helps in determining the amount and frequency of rest intervals required to complete a task without getting physically or mentally tired. The break interval in between work helps workers to regain the stamina to work with the same energy, and hence, rest is essential to perform the work with full capacity. This study helps to find out the standard intervals of break that help a worker to regain its energy. 

(d) Method Study: 

Ans: The objective of method study is to find out the best way of doing the job. By determining the best method one can minimise the cost of production and maximise the quality and satisfaction of the customer.

(e) Simplification and Standardisation of work:

Ans: Simplification of work aims at eliminating the unnecessary diversity in the products. It helps in savings of cost of labor, machine and tools and increased turnover. There are shoe sizes, cloth sizes such as M, L, XL etc., this is done to reduce unnecessary variations, and expenses.

Standardization refers to setting of standards or benchmarks for every business activity, such as standardization of work, process, etc. Standardization thrives to achieve quality work, and quality products by establishing standards of performance for men and machines. For example there are standards for gold (hallmark), agricultural products (Agmark), industrial products(ISI) that assure that the product is a quality product.

Benefits of Vedantu’s CBSE Class 12 Business Studies Important Questions on Chapter 2 - Principles of Marketing

The following are the reasons to refer to Vedantu’s important questions before sitting for your Class 12 Business Studies exam: 

The questions are prepared by the experts to ensure that no student fails to practise any important concepts of the chapter from where the questions can be raised in the exam. 

Our expert teachers have curated the important questions according to the latest syllabus of the Class 12 CBSE Business Studies exam.

The questions and solutions are prepared according to the CBSE Board guidelines.

These questions will help students score well in the Class 12 Business Studies exam.

CBSE Class 12 Business Studies Chapter 2 important questions give you an overview of the important concepts covered in the chapter. CBSE Class 12 Business Studies Chapter 2 Important Questions are very effective for students to have a last-minute quick revision of important topics. Download the PDF now to master the important topics of the chapter.

FAQs on Class 12 Business Studies Important Questions on Chapter 2 - Principles of Management

1. How many important questions are given in Class 12 Business Studies Chapter 2 Principles of Management free pdf given here?

The Class 12 Business Studies Chapter 2 Principles of Management free PDF has given here majorly has 13 very short questions, 7 short questions, and 5 long questions.

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BUSINESS STUDIES FOR CLASS 12 CHAPTER 2 PRINCIPLES OF MANAGEMENT MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 12 along with answers, Chapter 2: Principles of Management. Business Studies MCQs for Class 12 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?

(a) Stability of personnel.

(b) Remuneration of employees.

(c) Equity.

(d) Esprit De Corps.

Answer: (a) Stability of personnel.

2. Through this principle of management, Henri Fayol guides the managers to exhibit exemplary behaviour and advises that they should not fall into the temptation of misusing their powers for personal benefit at the cost of the general interest of the organisation. Which principle of management is being described in the above statement?

(a) Remuneration of employees.

(b) Centralisation and decentralisation.

(c) Subordination of individual interest to the general interest.

(d) Equity.

Answer: (c) Subordination of individual interest to the general interest.

3. According to Henri Fayol, if this principle of general management is violated, “Authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.

(a) Authority and responsibility

(b) Discipline

(c) Unity of command

Answer: (b) Discipline

4. Name the principle of management suggested by Henri Fayol, which advocates that, “There should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”

(b) Esprit De Corps

(d) None of the above

Answer: (d) None of the above

5. According to this principle of general management, “An organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management is described in the given statement.

(a) Discipline

(b) Authority and responsibility

(d) Unity of direction

Answer: (b) Authority and responsibility

6. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.

(c) Division of work

Answer: (c) Division of work

7. The technique of differential piece rate system was developed by Taylor in order to

(a) Discriminate between efficient and inefficient workers

(b) Reward the efficient worker

(c) Motivate the inefficient workers to perform better

(d) All of the above

Answer: (d) All of the above

8. This technique of scientific management aims to determine the amount and frequency of rest intervals that should be provided to the employees during working hours.

(a) Time study

(b) Method study

(c) Motion study

9. Which of the following is an objective of time study?

(a) To determine the number of workers to be employed

(b) To formulate suitable incentive schemes

(c) To calculate the labour costs

10. This technique of scientific management helps in the development of the concept of the assembly line, which is widely used in automobile companies these days as well. Identify the technique.

(a) Motion study

(b) Standardisation and simplification of work

(c) Method study

(d) Time study

Answer: (c) Method study

11. The objective of this technique of scientific management is to reduce a given line or a product to fixed type sizes and characteristics. Name the technique.

(a) Method study

(b) Differential piece wage system

(c) Standardisation and simplification of work

(d) Functional foremanship

Answer: (c) Standardisation and simplification of work

12. The concept of Work-Study techniques includes

(b) Motion study

(c) Fatigue study

13. Considering the fact that it is difficult to find one single person with all the needed qualities, Taylor suggested the appointment of a specialist through this technique of scientific management. Identify the technique.

(a) Standardisation and simplification of work

(c) Functional foremanship

(d) Motion study

Answer: (c) Functional foremanship

14. According to Taylor, “Each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.

(a) Functional foremanship

(b) Science, not the rule of thumb

(c) Development of each and every person to his or her greatest efficiency and prosperity

Answer: (c) Development of each and every person to his or her greatest efficiency and prosperity

15. According to this principle of scientific management, the employees should be rewarded for their suggestions which results in a substantial reduction in the cost.

(a) Science, not the rule of thumb

(b) Cooperation, not individualism

(c) Harmony, not discord

Answer: (b) Cooperation, not individualism

We trust that the offered Business Studies MCQs for Class 12 with respect to Chapter 2: Principles of Management will help you. Assuming you have any questions with respect to CBSE Class 12 Business Studies Principles of Management MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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