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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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Hard · Level 1View options
Programme
Rule
Method
Budget
Hard · Level 1View options
Objective is wrong
Budget is insufficient
Method is not being followed at the actual time of work
Policy is too broad
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Add priority category in the complaint method
Stop taking complaints from customers
Close all complaints without reading
Increase only advertising budget
Hard · Level 1View options
Both tell only spending limit
Method tells manner and rule may give an order to comply
Rule is always numerical and method is always oral
Both are not parts of planning
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Policy is too short
Target is too high
Budget is too high
Control point in the method is weak
Hard · Level 1View options
Prepare a standard service method and train staff
Change branch names
Hide customer count
Make all budgets zero
Hard · Level 1View options
Risk of unauthorised cash manipulation
Risk of delay in cash reconciliation
Lack of accountability
Risk of increased training cost
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Work will immediately become zero
Customers will automatically become owners
Market law will change
Work may become slow and burdensome
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Office wall colour is old
The same error repeatedly occurs at the same step
Owner bought a new chair
Company name is long
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A broad plan to protect market share against competitors new pricing policy
Fixed way of stamping bill
Style of keeping medicine in fridge
Technique of counting cash
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Decoration principle
Principle of standardised verification
Profit maximisation principle
Advertising principle
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Procedure tells goal and method tells profit
Both are always identical
Method may tell the best manner of performing a step in a procedure
Procedure is only owners personal plan
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Video search and proof matching will be difficult
Customer will automatically pay
Product weight will always reduce
Advertising will improve
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Only budget defect
Only policy defect
Neglect of pre control step
Ownership defect
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Employees may interpret the work differently and perform it inconsistently
All legal rules of the organisation will change automatically
The need to prepare a budget for the work will end
Customers' income will immediately decrease
Hard · Level 1View options
Where service options can change according to customer needs
Where chemical safety standards are compulsory
Where signature is necessary in cash matching
Where legal document verification is fixed
Hard · Level 1View options
Office decoration will reduce
Owners age will change
Advertising will slow
Quality defect may remain hidden
Hard · Level 1View options
Accountability and control
Wall decoration
Customer entertainment
Advertising attraction
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Dividend plan
Recruitment advertisement
Training method
Ownership policy
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Keeping important safety check in written form
Making ten unnecessary approvals compulsory for a simple task
Keeping checklist for quality checking
Taking signature on cash matching
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Remove customer name
Hide menu price
Add clear visual alert for allergy order
Stop advertising
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It can be used repeatedly in similar situations
It is designed only for one special occasion
It applies only to one customer
It relates only to the owner's personal trip
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Only building weakness
Lack of evaluation standard
Lack of owners signature
Lack of customer age
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Prescribed format for replying to a customer email
Step-by-step technique for cleaning a machine
Numerical limit of spending on packing next month
Procedure for scanning documents
Hard · Level 1View options
Method is fully successful
Efficiency increased at the cost of quality control
Company objective has ended
Budget is always wrong
Question 1HardLevel 1
A mobile repair centre explains the micro technique of changing a screen including heat and tools. This identifies which plan?
Correct answer: C
A method is a detailed and specific way of performing a particular task. The example focuses on the technical technique of replacing a screen and mentions the tools and heat involved, so it explains how that operation should be carried out. It does not set a broad project with several activities and deadlines, which would be a programme. It does not prohibit or compel conduct in the form of a rule, and it does not allocate money, which would make it a budget. A procedure may contain an ordered series of steps for a process, but the question stresses the particular technical manner or approach to the task. Therefore, option C, method, is correct.
A factory manager prepared an inspection checklist to reduce product defects but employees fill it only at month end. What is the most correct diagnosis?
Correct answer: C
A method is useful only when followed during work. In exams distinguish implementation from mere documentation.
A service centre has a complaint recording method but serious complaints reach late because priority level is not written. What is the most suitable improvement?
Correct answer: A
The issue is in the design of the method so priority should be added. In case questions choose improvement according to cause.
If two branches use different methods for the same service and customer experience is uneven which managerial step should get priority?
Correct answer: A
The direct answer is A: the organisation should prepare a standard service method and train staff to use it. A method is a defined sequence or manner of doing work. If two branches use different methods for the same service, customers may receive different waiting times, information and treatment. First, management should study the effective process, define common steps and service standards, document them clearly, and then train employees. Supervisors can monitor performance and improve the method when evidence shows a problem. Option A is correct because standardisation plus training addresses both the process difference and employee understanding. B is wrong because changing branch names does not change service behaviour. C is wrong because hiding customer numbers removes useful information and cannot improve service. D is wrong because making budgets zero would stop resources rather than create consistency. Memory cue: same service, same standard, trained staff.
A bank made a cash matching method but kept the signature step optional. Which risk will increase the most?
Correct answer: C
A signature records that the concerned employee has checked or approved the cash reconciliation. If it is optional, it becomes difficult to identify who was responsible when an error or irregularity occurs; therefore, the risk of lack of accountability increases the most. Unauthorised manipulation may also become more likely, but it mainly results from weak accountability and control records. Exam tip: Link every approval step in a procedure with control and accountability.
In a company the method is so long that employees fill many unnecessary forms even for small tasks. What is the most likely result?
Correct answer: D
A method should help employees complete work in a clear and efficient way. Some forms and checks may be useful for control, but forms that add no necessary information create extra steps. When employees must complete many unnecessary forms even for small tasks, they spend time on paperwork instead of the actual work. This can delay decisions, increase frustration, and make the system difficult to use.
Option D is correct because an excessively long method is likely to make work slow and burdensome. The problem is not that work immediately becomes zero; rather, efficiency and morale may decline. Customers cannot automatically become owners, and a company’s paperwork does not change market law. A good method should be sufficiently detailed for accuracy but simple enough to avoid needless effort.
Which is the strongest signal for reviewing a method?
Correct answer: B
Direct answer: Option B is correct. A method is a planned way of doing work, so its review should begin with evidence about how the work actually operates. If the same error happens repeatedly at the same step, that step may be unclear, unnecessary, badly designed or missing a control. The reasoning is: repeated result means a pattern; the same location identifies a likely cause; a likely cause gives a useful basis for reviewing the method. Option B is therefore the strongest signal. Option A, an old office wall colour, is unrelated to whether the work procedure produces errors. Option C, a new chair, concerns furniture and gives no evidence about process performance. Option D, a long company name, has no connection with method quality or control. A review should investigate the cause rather than blame workers automatically. Memory cue: repeated error at the same step points to the method.
In which case will strategy be a more suitable answer than method?
Correct answer: A
Direct answer: A, a broad plan to protect market share against a competitor’s pricing. Strategy is a broad, long-term or situation-based plan made to reach an important objective, especially when external competition or uncertainty is involved. Here the company responds to a rival’s new pricing policy and tries to protect market share, so it must consider the wider market and several possible actions. Option A is correct. Option B, stamping a bill in a fixed way, is a method because it describes one specific task. Option C, keeping medicine in a fridge, is a handling procedure, not a competitive plan. Option D, counting cash, is a technique for a routine operation. The key distinction is: method explains how one task is performed; strategy gives a broad direction for dealing with a situation.
A hospital has a method for applying patient identity band but nurse relies on spoken name. Which principle is being violated?
Correct answer: B
The direct answer is B, the principle of standardised verification. A patient identity band is part of a fixed safety method: the nurse should check the band and use approved identifiers before giving treatment, medicine or services. A spoken name alone may be misunderstood, repeated by another patient or affected by hearing and language problems. Therefore, ignoring the prescribed band-checking step weakens the control designed to prevent wrong-patient errors. Option A, decoration principle, concerns appearance and has no patient-safety meaning. Option B is correct because standardised verification requires the same reliable checking process every time, rather than personal guesswork. Option C, profit maximisation, concerns earning the highest possible profit and is irrelevant to safe identification. Option D, advertising principle, concerns communicating with or attracting customers, not verifying a patient's identity. The reasoning is: identity error can cause serious harm; a fixed identifier creates a repeatable safety barrier; replacing it with an informal spoken name violates that method. Memory cue: in safety-critical work, verify with the standard identifier, not memory or casual speech.
An e commerce company fixed video recording while opening returns but did not include order number in file name. Which problem is most likely?
Correct answer: A
The direct answer is A: video search and proof matching will be difficult. A procedure is useful only when each record can be traced to the correct transaction. Here, a return-opening video is evidence about a particular order, but the file name does not contain the order number. The reasoning is: many returns may be recorded; similar files may have unclear names; staff must open files one by one or may choose the wrong file; therefore searching and matching evidence becomes slow and unreliable. Option A is correct because it identifies the direct traceability failure. Option B is wrong because a file name cannot make a customer pay automatically. Option C is wrong because recording a return does not always reduce product weight. Option D is wrong because this is an operations-control issue, not an advertising improvement. A good method records the order number, date, item code, and responsible employee. Exam cue: evidence without an identifier is difficult to retrieve and prove.
In a laboratory skipping machine calibration before sample testing shows which method related defect?
Correct answer: C
The direct answer is C: neglect of a pre-control step. Calibration means checking and adjusting a machine before it is used, so that its readings are dependable. The reasoning is: first prepare the machine, next calibrate it against a known standard, then test the sample, and finally interpret the reading. If calibration is skipped, an incorrect reading may be accepted as correct; therefore the defect is in the method or procedure, especially the step before testing. Option A is wrong because the situation does not by itself concern money, spending, or a budget. Option B is wrong because no written rule or policy is being discussed; the problem is failure to follow a testing step. Option C works because calibration is a pre-control activity and its omission can reduce accuracy and reliability. Option D is wrong because ownership means who possesses or is responsible for something, not whether the machine was prepared correctly. Memory cue: before testing, “calibrate first, trust later.”
If a method is not properly explained to employees what will be the most direct effect?
Correct answer: A
A method specifies the prescribed sequence for performing a task. If it is not explained clearly, employees may interpret the instructions differently, resulting in inconsistent performance. Therefore, option A is the most direct effect. Budgeting needs and customers’ income are not direct consequences of an unclear method. Exam tip: In questions on methods, focus on how work is to be done and on uniformity in performance.
Which condition is most important when calling method a standing plan?
Correct answer: A
A standing plan is designed for repeated use in similar or recurring situations. A method prescribes the way in which a task should be performed, so it must be reusable. A plan made for only one occasion is a single-use plan, not a standing plan. Exam tip: Repeated applicability is the key feature of a standing plan.
In which case will budget be the answer instead of method?
Correct answer: C
A budget is a numerical plan that fixes limits for income, expenditure, or resources for a specified period. Therefore, a numerical limit on packing expenditure for the next month is a budget. The other options describe a way or sequence of performing work, so they relate to method. Exam tip: Look for amounts, costs, quantities, or time-bound numerical limits to identify a budget.
If time reduced after improving a method but defects increased what is the correct managerial conclusion?
Correct answer: B
A reduction in time indicates improved speed or efficiency, but an increase in defects signals weaker quality control. Therefore, the improvement cannot be called fully successful; efficiency has increased at the cost of quality. Option A is incorrect because a method is successful only when it improves performance without harming quality. Exam tip: Assess a method using all outcomes, such as time, cost, quality, and errors.
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