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In Class 12 Business Studies, under the chapter Planning, students learn that a method is a detailed, standardised way of performing a particular task. They explore how methods guide day-to-day action, bring consistency, reduce confusion, and support the achievement of organisational objectives. The topic also helps them distinguish a method from related types of plans such as objectives, policies, procedures, rules, programmes, and budgets, using simple business examples to understand its practical role in planning.
TOPIC PRACTICE
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Up to 25 questions from this page. Select your focus, then start.
25 questions
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Easy · Level 3View options
Only the owner's address
The correct steps and method of doing the work
Only market rumours
Only the building plan
Easy · Level 3View options
Objective
Policy
Method
Budget
Easy · Level 3View options
It eliminates all expenses
It changes all legal rules
It makes the customer the owner of the business
It makes work simple, systematic and repeatable
Easy · Level 3View options
A prescribed way of doing a task
A statement of an organisation's income and expenditure
A broad outline of future actions
A guiding principle for decision-making in specific situations
Easy · Level 3View options
Method
Objective
Budget
Strategy
Easy · Level 3View options
Policy
Method
Rule
Objective
Easy · Level 3View options
Standing plan
Single-use plan
Objective
Budget
Easy · Level 3View options
Percentage of profit
Specific manner of doing work
Share market price
Ownership of company
Easy · Level 3View options
Annual target of company
List of employees' leave days
Prescribed technique for pasting shoe soles
Age of customer
Easy · Level 3View options
Deciding only by guess
Finishing work anyhow
Using only old ways
Choosing a way according to the objective of work
Easy · Level 3View options
Specifying a systematic way of doing work
Changing the ownership of the business
Keeping the business capital confidential
Making laws for the government
Easy · Level 3View options
Budget
Method
Objective
Strategy
Easy · Level 3View options
Policy
Programme
Method
Budget
Easy · Level 3View options
Technique of work
Style of work
Manner of work
Number of company shareholders
Easy · Level 3View options
It directs work to be done in a fixed manner
It determines the amount of capital required by the organisation
It states only the final outcome of work
It is a compulsory order issued by the government
Easy · Level 3View options
Every employee records customer complaints differently
The company has enough capital
The owners office is large
The advertisement colour is blue
Easy · Level 3View options
Strategy
Method
Rule
Objective
Easy · Level 3View options
Uniformity in the quality of work
Automatic termination of ownership rights
Automatic change in laws
Elimination of customer demand
Easy · Level 3View options
Owner's personal vehicle
Company's goal statement
Prescribed procedure for stamping received documents
Increase in market demand
Easy · Level 3View options
Prescribed ways of doing work
Estimates of future expenditure
Only an employee’s personal preference
Long-term objectives of the organisation
Easy · Level 3View options
Method
Budget
Strategy
Policy
Easy · Level 3View options
Repetitive tasks
Completely new and uncertain tasks
Purchase of personal property
Passing a law in Parliament
Easy · Level 3View options
Objective
Method
Budget
Programme
Easy · Level 3View options
Method tells expense and budget tells manner
Both tell only goals
Method tells manner and budget tells numerical plan
Both are not used in planning
Easy · Level 3View options
Policy
Objective
Strategy
Method
Question 1EasyLevel 3
What should employees be told while implementing a method?
Correct answer: B
A method is a prescribed and systematic way of performing a task. While implementing it, employees must be told the correct steps, sequence, and procedure to follow; therefore, option B is correct. A building plan or market rumours does not explain how the work should be performed. Exam tip: A question about ‘how a task is to be done’ usually points to a method.
What is the fixed measurement and way for cutting posters in a printing shop called?
Correct answer: C
The prescribed measurements and the fixed way of cutting posters are called a method. A method states the approved manner of performing a task, helping ensure that all posters are cut to a uniform size. A policy gives broad guidance for decision-making; it does not describe the actual way of doing the task. Exam tip: If the question asks “how a task will be done,” look for method.
A method specifies the fixed steps or sequence for performing a task. Even in a small business, it helps work be done consistently, saves time, and enables new employees to learn the task quickly. Therefore, option D is correct. A method does not eliminate all expenses; it makes the work process more systematic. Exam tip: remember ‘method’ as an orderly way of doing a task.
A method specifies the prescribed and orderly way in which a task is to be performed. Therefore, option A is correct. Option C is closer to a plan because a plan gives a broad outline of future activities, not the step-by-step way of doing a task. Exam tip: if the question asks ‘How will the work be done?’, think of a method.
A fixed checklist and way for cleaning hotel rooms is an example of what?
Correct answer: A
A fixed checklist and a prescribed sequence for doing a task are called a method. In a hotel, the cleaning method ensures that every room is cleaned according to the same standard. An objective states what is to be achieved, whereas a method states how the work will be done. Exam tip: If the question focuses on ‘how to do’ a task, look for method.
A method states the prescribed way or sequence for performing a task. Since it can be followed repeatedly for similar routine activities, it is a standing plan. A single-use plan is prepared for a specific project or purpose, while an objective and a budget are different planning elements. Exam tip: policies, procedures, methods and rules are generally classified as standing plans.
A method determines the specific manner in which a task is to be performed. It explains how a particular job will be done, for example, the method used in a production process. Profit percentage and company ownership relate to finance or ownership, not to a method. Exam tip: Link a method with the question, “How should the work be done?”
A method is a prescribed way or technique of performing a task. The prescribed technique for pasting shoe soles directly states how a production activity is to be carried out, so option C is correct. An annual target states what is to be achieved, whereas a method states how the work will be done. Exam tip: Distinguish among objectives, policies and methods—methods describe the way or sequence of doing work.
A method specifies the sequence and manner in which a task should be performed. Therefore, it helps employees carry out work systematically and uniformly. Changing ownership or making laws is not the purpose of a method. Exam tip: Remember a method as the ‘way of doing’ a task.
What is the fixed system of keeping defective goods separate in a shop called?
Correct answer: B
A fixed, step-by-step way of separating defective goods is called a method. A method specifies how a particular task will be performed. A budget is an estimate of financial requirements and resources, so it is not the correct answer here. Exam tip: Choose method when the question asks for a fixed way of doing a task.
Teaching an employee a fixed style of entering computer data relates to what?
Correct answer: C
A method specifies the fixed and systematic way in which a task is to be performed. A prescribed style for entering computer data ensures uniformity and accuracy in employees’ work; therefore, Method is correct. A policy provides general guidance for decisions, not the detailed way of doing a task. Exam tip: If the question asks how a task will be done, choose Method.
A method specifies the prescribed way in which a task should be performed. Therefore, option A is correct. Stating the final outcome relates more closely to an objective, not to a method. Exam tip: Remember a method as the ‘way of doing’ a task.
The direct answer is Option A: when every employee records customer complaints differently. In business studies, a method is a planned, systematic way of performing a particular activity. It tells employees the usual sequence or procedure to follow. If different employees record the same kind of customer complaint in different ways, important details may be missed, records may not match and solving complaints becomes slow and confusing. A common method makes the work uniform and easier to check, so Option A is correct. Option B, having enough capital, is a financial condition; it does not by itself show a need for a work method. Option C, a large owner’s office, is a physical facility and has no direct connection with standardising complaint recording. Option D, the advertisement being blue, is a design choice and is unrelated to the procedure for handling complaints. The exam clue is inconsistency in the way work is done: when people need a common procedure, a method is useful.
What is the way of arranging medicines by expiry date in a pharmacy?
Correct answer: B
A specified way of arranging medicines according to their expiry dates is a method. A method describes the sequence and manner in which a task is performed. A rule may require checking expiry dates, but the complete procedure for arranging the medicines is the method. Exam tip: When the question asks how a task will be done, look for method.
Which benefit can an organisation get from a method?
Correct answer: A
A method specifies the sequence of steps for performing a task. When employees follow the same prescribed method, work is standardised and uniformity in quality is maintained. A method does not automatically end ownership rights, change laws, or eliminate customer demand. Exam tip: associate method with an orderly sequence of work and standardisation.
A method is a prescribed way or sequence of performing a task. A procedure for stamping received documents standardises office work and helps maintain a record of incoming documents. A company goal statement states an objective, not the way the work is to be done. Exam tip: A statement that tells how a task will be performed indicates a method.
A method specifies the prescribed and orderly ways of performing a task. Therefore, prescribed ways of doing work is the correct answer. Estimates of future expenditure relate to a budget, while long-term objectives are the goals of a plan. Exam tip: A method answers the question, “How will the work be done?”
If a kitchen has a fixed way of cutting vegetables only after washing them what is it?
Correct answer: A
The direct answer is A: method. In planning, a method is a prescribed way of doing a particular task. Here the kitchen has decided on a clear order: first wash the vegetables and then cut them. This tells workers how to perform one activity, so it is a method. Option A is correct. Option B, budget, is a statement of expected income and expenditure, usually expressed in money; no money plan is described. Option C, strategy, is a broad plan made to achieve an important long-term objective, not merely the manner of cutting vegetables. Option D, policy, is a general guideline that helps decision-making, such as a rule about hygiene or purchasing; the example gives a specific working way. Thus the key clue is a fixed manner or technique for completing a task. Memory cue: method means ‘how to do a job.’
A method states the sequence of steps for performing a task. It makes repetitive work easier, more uniform, and less time-consuming. A completely new or uncertain task cannot be handled adequately by a fixed method alone because it requires decisions according to the situation. Exam tip: Remember that a method explains ‘how’ a task is to be done.
Teaching a new employee the safe way to create a password is an example of what?
Correct answer: B
A method specifies a definite, orderly way of performing a task. Teaching a new employee how to create a secure password explains the procedure to be followed, so method is correct. An objective states what is to be achieved, whereas a programme combines several activities with their sequence or schedule. Exam tip: When the question asks ‘how to do’ something, look for method.
Which is the correct difference between method and budget?
Correct answer: C
The direct answer is option C: a method tells how work should be done, while a budget is a numerical plan. In planning, a method is a fixed or suggested way of performing an activity, such as the steps for handling a complaint. A budget expresses expected income, expenditure, quantities, or other results in numbers for a future period. Step by step: first identify the work; next decide the manner or procedure, which is the method; then estimate resources and money, which can be shown in a budget. Option A is wrong because it reverses the meanings: a method does not primarily state expenses, and a budget does not mainly state the manner of doing work. Option B is wrong because goals state what is to be achieved, whereas methods and budgets explain how work will be done or what numerical plan will support it. Option C is correct because it gives the exact distinction. Option D is wrong because both methods and budgets are useful types of plans in management. Memory cue: method means manner; budget means numbers.
What will the fixed operating style of scanning cheques in a bank be called?
Correct answer: D
A fixed, step-by-step way of scanning cheques is called a method. A method specifies how a task will actually be performed and the sequence of steps involved. A policy gives broad guidance, whereas a method describes the practical procedure for doing the work. Exam tip: If the question asks ‘how will the work be done?’, look for method.
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