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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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Expert · Level 2View options
Because error time cost quality and risk outcomes should also be seen
Because employees are never correct
Because customers are always wrong
Because record is useless
Expert · Level 2View options
Final outcome verification
Wall colour verification
Employee birthday verification
Owner travel verification
Expert · Level 2View options
Guess and personal perception
Company logo
Weather report
Customer date of birth
Expert · Level 2View options
Fake or disputed refund
Changing office colour
Falling advertising cost
Rising customer income
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Showing only positive opinions in customer reviews
Preparing a weekly schedule for caring for office plants
Arranging chairs systematically in a meeting room
Deciding the location for installing a clock on an office wall
Expert · Level 2View options
Unauthorised or incorrect data deletion and lack of accountability
Greater transparency in deletion and easier auditing
Automatic data backup and assured recovery
Lower deletion cost and higher customer satisfaction
Expert · Level 2View options
Weaknesses and root causes will remain hidden
Success will always double
Law will end
Owner will change
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Risk-based visual identification
Customer greeting
Dividend declaration
Sales slogan
Expert · Level 2View options
When control is necessary, but some steps are unnecessarily repetitive
When the purpose of the method has completely ended
When the task can be performed without any prescribed sequence
When the organisation has permanently discontinued that activity
Expert · Level 2View options
Employees will assign different priorities to complaints
All complaints will be resolved within the same time limit
The number of complaints will decrease automatically
The company will no longer need a procedure
Expert · Level 2View options
Continuous improvement and innovation may stop
Customer language will change
Owner age will reduce
Wall will be painted
Expert · Level 2View options
Passed and failed products may get mixed
Customer income will rise
Sales slogan will change
Owner chair will break
Expert · Level 2View options
Procedure tells sequence and method tells standard manner of a step
Method is always budget
Procedure is only dividend
Both have no meaning
Expert · Level 2View options
Expectation management
Dividend declaration
Ownership identification
Office decoration
Expert · Level 2View options
Delays in delivery and increased labour time
Automatic extension of the vehicle’s legal registration period
Reduction in the age of customers
Change in the colour of advertisements
Expert · Level 2View options
It will be difficult to identify failed, unusual or doubtful cases and take timely action
The standards and rules required for verification will automatically cease to exist
Human verification will become compulsory in every case
All transactions recorded in the method will be automatically approved
Expert · Level 2View options
Customer identity and financial transaction verification
Putting picture on wall
Giving tea to employee
Selecting shop music
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New capacity will not be used and efficiency will reduce
Customers will automatically increase
Policy will end
Budget will always be zero
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Person based accountability proof
Advertising proof
Building proof
Customer age proof
Expert · Level 2View options
Employees may not understand correct decision in special situations
Company name will change
Sales budget will form
Office colour will improve
Expert · Level 2View options
Compliance may fail in some branches
All branches will become beautiful
Customer age will be same
Dividend will rise automatically
Expert · Level 2View options
Confirming cleanliness through a test report after every cleaning
Only asking the employee orally
Estimating cleanliness by looking at the wall
Only recording the cleaning time and leaving it
Expert · Level 2View options
Where the likelihood of error or severity of its consequences is high
Apply the same level of control at every step, regardless of risk
Place control points only at the final stage of the method
Place control points only at the steps that take the most time
Expert · Level 2View options
Cost saving may have happened at the cost of service quality
Improvement is completely successful
Customers are always wrong
No review is needed now
Expert · Level 2View options
It will be difficult to establish accountability for changes and verify the correct version
It will be difficult to determine the number of employees needed to implement the method
It will be difficult to prepare the selling price list of the organisation's products
It will be difficult to estimate the cost of maintaining the office building
Question 1ExpertLevel 2
Why is measuring method success only by employee satisfaction incomplete?
Correct answer: A
Direct answer: Option A, because error, time, cost, quality and risk outcomes must also be examined. Employee satisfaction is useful: it can show whether a method is understandable, practical and acceptable to the people using it. But satisfaction is only one indicator. A method may make employees happy while causing more mistakes, slow service, higher cost, poor quality or safety risk. Step by step, evaluation should identify the intended objectives, collect evidence about errors and completion time, compare costs, check quality, and examine risks and customer or organisational results. Option A is correct because it uses several relevant measures rather than one feeling. Option B is wrong because employees can be knowledgeable and their feedback can be important; saying they are never correct is unfair and irrational. Option C is wrong because customers are not always wrong, and their experience may reveal a real process problem. Option D is wrong because records are valuable evidence for comparison and improvement. Satisfaction should be included, but it must be combined with objective performance data. Memory cue: a successful method must be liked and must work well.
If a method has no measurable indicators what will manager depend on?
Correct answer: A
The direct answer is A: the manager will depend on guesses and personal perception. A measurable indicator is a number or observable standard used to check whether a method is working, such as processing time, error rate, cost or customer complaints. Step by step: set an indicator; collect data; compare actual performance with the target; identify improvement or failure. If no indicator exists, the manager cannot make a reliable comparison. The manager may then rely on memory, impressions, guesses or personal opinion, which can be biased and inconsistent. Option A is correct because it describes this weak decision-making basis. Option B, the company logo, identifies the company but does not measure performance. Option C, a weather report, may matter to some businesses but cannot replace indicators for evaluating an internal method. Option D, a customer’s date of birth, is personal information and normally has no role in measuring whether a work procedure succeeds. Memory cue: no numbers or standards means no objective review.
A retail store takes bill number for refund but not customer signature and identity. What is the main risk?
Correct answer: A
The direct answer is A: the main risk is a fake or disputed refund. A bill number can show that a transaction existed, but by itself it may not prove who requested the refund, whether the request was authorised, or whether the same bill is being used improperly. A customer signature and identity check create accountability and make later verification easier. Without them, an employee or another person might process an unauthorised refund, and a genuine customer might later dispute what happened. Option A is correct because it describes the direct financial-control risk. Option B, changing office colour, has no connection with refund verification. Option C, falling advertising cost, is neither a likely result nor the main control issue. Option D, rising customer income, is unrelated to the store’s refund procedure. The remedy is to verify identity where appropriate, obtain acknowledgement, preserve records, and require authorised approval for exceptions. Memory cue: refund control needs proof of transaction plus proof of claimant.
In which case is ethical control most needed in a method?
Correct answer: A
Showing only positive customer reviews can mislead customers by giving them incomplete information about a product or service. Ethical control is therefore needed to ensure fairness, transparency and honesty in this method. Procedures for plant care, chair arrangement or clock placement normally do not create a similar risk of misleading consumers. Exam tip: Give priority to ethical control when a procedure affects a customer’s informed and fair decision.
If data deletion method has no dual approval and no deletion log what combined risk exists?
Correct answer: A
Without dual approval, one person may delete required data or carry out an unauthorised deletion without an independent check. Without a deletion log, it becomes difficult to identify who deleted what data and when, weakening accountability and the audit trail. The benefits in option B would arise from having approvals and logs, not from their absence. Exam tip: For missing controls, link the risk of unauthorised action with the inability to trace it.
A company records only successful cases through method and not failures. What is the biggest disadvantage?
Correct answer: A
The direct answer is A: weaknesses and root causes will remain hidden. A method improves only when an organisation studies both successful and unsuccessful cases. Step by step: record what happened; compare the result with the expected result; examine failures; ask why the failure occurred; correct the root cause; test the improved method. If only successes are recorded, the data becomes incomplete and biased. Managers may believe the procedure is stronger than it really is and may repeat the same errors. Option A is correct because missing failure records prevents learning about weaknesses and their causes. Option B is wrong because recording only success cannot guarantee that success will double. Option C is absurd: a record-keeping choice does not make law disappear. Option D is unrelated: the owner does not automatically change because failures are omitted. A useful exam cue is that failure data is not merely blame; it is feedback for improvement.
A warehouse uses the same label for hazardous and normal material. From expert view what is missing in the method?
Correct answer: A
A method for handling warehouse materials must include clear, risk-based visual identification for hazardous items. Distinct labels immediately guide employees about safe storage, movement and precautions, reducing the chance of incorrect handling. Customer greeting concerns service behaviour, not material-safety procedures. Exam tip: In safety-based questions, look for controls such as identification, warnings and standardised procedures.
In which situation is simplifying a method better than removing it completely?
Correct answer: A
A method specifies the steps and sequence for performing a task and helps retain necessary control. When control is still needed but a few steps are repetitive or unnecessary, the method should be simplified by removing those steps. It may be removed only when its purpose has ended; repetition alone does not justify removing the entire method. Exam tip: If essential control remains necessary, choose simplification rather than complete elimination.
A company has complaint priority method but the definition of severity is unclear. What will happen?
Correct answer: A
A procedure needs clear definitions for criteria such as ‘severity’. If severity is unclear, different employees may judge the same complaint differently and assign different priorities. Option B is incorrect because vague criteria cannot ensure identical resolution timelines. Exam tip: A sound procedure states not only the steps, but also clear decision criteria.
A production unit does not put pass mark on product after inspection pass. What is the real risk?
Correct answer: A
Direct answer: Option A, passed and failed products may get mixed. Inspection gives information about whether a product meets the required standard. After a pass, a visible pass mark, label or separate location communicates that status to workers and later handlers. Without such identification, a passed product may be confused with one still waiting for inspection or one that failed. Step by step, inspection creates a status; the status must be recorded or displayed; the product must then be sorted or controlled according to that status. If the signal is missing, wrong products can be packed, sold or sent for rework. Option A is correct because mixing statuses is the direct control risk. Option B is wrong because a missing mark cannot increase a customer’s income. Option C is wrong because it has no necessary connection with inspection control or the product’s status. Option D is clearly irrelevant: an owner’s chair will not break because a label is missing. The mark should not replace the inspection record, but it is an important visual control. Memory cue: inspect, identify, then separate.
A dispatch method has loading order but no unloading order. Which efficiency problem is likely?
Correct answer: A
If the unloading sequence is not specified, workers may need to search for or repeatedly move other parcels to reach the required one. This causes delivery delays and increases labour time. Vehicle registration and advertisement colour are unrelated to the efficiency of this method. Exam tip: A clear sequence in a procedure saves time, labour and cost.
If automated verification is added in a method but exception report is not generated what weakness remains?
Correct answer: A
Automated verification can check routine cases quickly, but an exception report separately highlights cases involving errors, unusual results or a need for further review. Without that report, timely human review and corrective action on such cases become difficult. Option C is the closest distractor, but the absence of a report does not make human verification compulsory for every case; the key weakness is the lack of clear identification of exceptions. Exam tip: When asked about a weakness in a method, check how errors and exceptions will be identified and reported.
In which situation will adding legal compliance reference in method be almost necessary?
Correct answer: A
The direct answer is A: customer identity and financial transaction verification. A method becomes closely connected with legal compliance when it handles activities that laws regulate, especially identifying customers, checking transactions, preventing fraud, and recording evidence. Reasoning step by step: identity data and money movement can create privacy, anti-money-laundering, consumer-protection, and record-keeping duties; therefore the procedure should mention applicable rules, approvals, documentation, and escalation of suspicious cases. Option A is correct because both identity checking and financial verification can carry legal consequences. Option B is wrong because putting a picture on a wall normally does not require a compliance procedure of this kind. Option C is wrong because giving tea to an employee is an ordinary welfare action, not the stated legal-risk activity. Option D is wrong because choosing shop music is usually a preference, not customer or financial verification. Exam cue: where personal identity and money meet, compliance matters.
A factory got a new machine but old manual method continued. What is the resource related problem?
Correct answer: A
The direct answer is A: the new capacity will not be used and efficiency will reduce. A method is a planned way of doing work, so it must match the resources and technology available. Step by step: the new machine provides greater speed, capacity or precision; the old manual procedure does not use those abilities; workers and output remain limited by the old process; therefore the expected benefit from the machine is lost and efficiency may fall relative to what was possible. Option A is correct because it identifies both the unused resource and the efficiency problem. Option B is wrong because customers do not automatically increase merely because a machine is purchased. Option C is wrong because a company policy does not automatically end when an old method continues. Option D is wrong because the budget is not necessarily zero; the factory may even waste money by failing to use an expensive machine. The main lesson is that planning and methods must be updated when resources, technology or capacity change.
If cash counting method has camera recording but not the name of counter what is incomplete?
Correct answer: A
Direct answer: Option A, person-based accountability proof. A camera can preserve evidence of the cash-counting activity, but it does not automatically identify the person who counted the money. For proper control, the procedure should connect the transaction with a named and responsible employee. Step by step: cash is counted; recording is made; the counter’s name is missing; therefore responsibility cannot be assigned clearly, so person-based accountability is incomplete. Option A is correct. Option B is wrong because advertising relates to informing or persuading customers, not controlling cash. Option C is wrong because a building record concerns premises and construction, not the identity of the cash counter. Option D is wrong because customer age has no direct relation to cash-counting responsibility. A reliable method needs both evidence of the event and identification of the responsible person. Memory cue: CCTV may show the action, but a name establishes accountability.
Which option shows the strongest result based control of a method?
Correct answer: A
A test report after every cleaning measures and verifies the actual cleanliness achieved. Therefore, it is the strongest form of result-based control. Recording only the time shows that an activity may have been performed, but it does not prove that the required cleanliness standard was achieved. Exam tip: In result-based control, look for measurable evidence of the final outcome rather than proof that an activity was merely carried out.
What is the most correct principle for placing control points in a method?
Correct answer: A
Control points in a method should be placed at stages where errors are more likely or where an error can seriously affect quality, cost, safety, or the final result. Therefore, option A correctly states the principle of risk-based control. Keeping controls only at the final stage may detect errors too late. Exam tip: Look for ‘high risk’ and ‘serious consequences’ when choosing control points.
If cost reduced after method improvement but customer complaints increased what is the most correct analysis?
Correct answer: A
Direct answer: Option A, cost saving may have occurred at the cost of service quality. A method should not be judged by one result alone. Lower cost can be good, but rising customer complaints are a warning that the new method may have reduced speed, accuracy, courtesy or some other part of service quality. Reasoning: first observe the cost decrease; then observe the complaint increase; compare both indicators; conclude cautiously that the saving may have produced a quality trade-off; review the method before declaring success. Option A is correct because it recognises both outcomes. Option B is wrong because lower cost alone cannot prove complete success. Option C is wrong because customers are not automatically wrong; their complaints may reveal a real problem. Option D is wrong because worsening complaints make review more necessary, not unnecessary. A balanced evaluation uses cost, quality and customer results together. Memory cue: saving money is not improvement if customers receive worse service.
An organisation made a method but kept no history of who changed it and when. What difficulty will arise in audit?
Correct answer: A
A record of changes made to a method forms an audit trail. It shows who made a change, when it was made, and which version is currently authorised. Without this history, an auditor cannot fix responsibility for changes or verify the correct approved version. The other options are unrelated to version control of a method. Exam tip: Link audit trail, version control, and accountability in such questions.
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