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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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25 questions
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Hard · Level 4View options
Different teachers may award different marks for the same answer
The same teacher will check every answer sheet in equal time
All students will receive full marks in every question
The number of answer sheets will decrease automatically
Hard · Level 4View options
Transaction approval and accountability
Decoration control
Advertising control
Weather control
Hard · Level 4View options
Purpose risk and available resources of the work
Owners personal hobby
Wall colour
Customers birthday
Hard · Level 4View options
Before issuing a high-value cash payment
Before placing flowers in the office reception area
Before putting up a poster on the office wall
Before selecting background music for a shop
Hard · Level 4View options
Innovation and continuous improvement may stop
Wall colour will change automatically
Customer count will become zero
Law will end
Hard · Level 4View options
Full capacity of new machine will not be used
Customers will become owners
Advertising will stop
Company name will become short
Hard · Level 4View options
Policy of honest refunds and method of checking bill and signature before refund
Only changing shop name
Only festival decoration
Only owners personal plan
Hard · Level 4View options
Measurement exists but standard is missing
Advertising is too low
Ownership is wrong
Customers are more
Hard · Level 4View options
When deviation can be immediately identified and correction recorded
When there is no record
When employees guess
When the way remains hidden
Hard · Level 4View options
When method completely ignores customers reasonable special need
When service is clear
When record is correct
When employees are trained
Hard · Level 4View options
Wrong refund or payment dispute may occur
Office will become beautiful
Employee birthday will change
Market will close
Hard · Level 4View options
Employee should also understand reason and risk
Because method has no relation with work
Because training is always wrong
Because record is never useful
Hard · Level 4View options
Complete conclusion on efficiency cannot be drawn
Company name is wrong
Customer age is wrong
Advertisement colour is wrong
Hard · Level 4View options
Taking five levels of approval for low value stationery
Taking two signatures on high value payment
Checking safety before mixing chemicals
Matching patient identity before medicine
Hard · Level 4View options
Data comparison and consolidation will be difficult
All customers will disappear
Weather will change
Company ownership will end
Hard · Level 4View options
When it clearly creates possibility of safety accident
When it saves little time
When employees understand it
When records are organised
Hard · Level 4View options
Understanding information in future treatment may be difficult
Wall colour will change
Company dividend will increase
Weather will be controlled
Hard · Level 4View options
Revise by seeing past result data employee suggestions and risk
Remove all steps without reason
Change only name
Implement secretly from employees
Hard · Level 4View options
Customer approval control
Wall decoration control
Festival programme control
Owner travel control
Hard · Level 4View options
Reducing customer complaints by fifteen percent next year
Way of entering complaint in app
Recording video while opening return
Saving document by serial number
Hard · Level 4View options
Strengthen minimum necessary verification while maintaining speed
Remove verification completely
Take no customer data
Give room key without record
Hard · Level 4View options
It shows which version was followed
Company logo becomes larger
Customer income is fixed
Weather changes
Hard · Level 4View options
Traceability is incomplete
Advertising is weak
Dividend is low
Office colour is wrong
Hard · Level 4View options
Fewer errors less time better records and employee compliance
Only big poster
Only new furniture
Only owners preference
Hard · Level 4View options
They may take different decisions by guess
They can write all laws
They can reduce customer age
They can close market
Question 1HardLevel 4
A school made a method for checking answer sheets but did not give marking deduction standards. What inconsistency is likely?
Correct answer: A
When clear marking-deduction standards are absent, different teachers may judge the same type of error differently. As a result, the same answer can receive different marks, causing a lack of uniformity in evaluation. Option B concerns time taken for checking, not consistency in awarding marks. Exam tip: A method is effective only when its steps are supported by clear standards.
What should be analysed first while making a method?
Correct answer: A
A method is a planned way of doing work. It should not be made from personal likes or from unimportant features of the workplace. Before deciding the steps, the planner must understand what the work is meant to achieve, what risks may arise, and which resources are available. These three points make a method useful and practical.
Therefore, option A is correct because purpose, risk, and available resources directly affect the design of the method. The purpose tells what result is needed, risk shows what precautions are necessary, and resources show what can actually be done. The owner's hobby, wall colour, or customer's birthday does not normally decide the work procedure.
A high-value cash payment carries a greater risk of loss, fraud, or an incorrect payment. Therefore, a method requiring verification or approval by two different people before release is appropriate. Routine low-risk tasks such as placing flowers, putting up a poster, or choosing music generally do not need a dual check. Exam tip: Choose dual checking where financial risk and accountability are high.
A factory method reduced defects but employees are not allowed to give improvement suggestions. What is the long term danger?
Correct answer: A
Direct answer: Option A, innovation and continuous improvement may stop. A method is a planned way of doing work, and standardisation can reduce defects. However, a method should not become so rigid that employees cannot report problems or suggest safer, faster, or better ways. Reasoning: the method first lowers defects; employees then observe daily work; they may notice a new cause of waste or a possible improvement; if suggestions are forbidden, those ideas are lost; over time the process may become outdated and improvement may stop. Option A is correct because it identifies this long-term organisational danger. Option B, automatic wall-colour change, is unrelated to employee participation or production quality. Option C, customer numbers becoming zero, is an extreme claim and does not necessarily follow; customers may remain even when improvement is weak. Option D, law ending, is unrelated and impossible as a consequence of one factory rule. The best system keeps useful standard steps but allows controlled feedback, testing, approval, and updating. Memory cue: standardise the work, but do not silence the people who perform it.
If a company buys a new machine but continues old manual method what may happen?
Correct answer: A
Direct answer: Option A, the full capacity of the new machine will not be used. A machine is a technological resource, while a method explains how people and resources should be used. When technology changes, the related work procedure, training, inputs, timing, and quality checks should also be reviewed. Step by step: the company buys a machine with a particular speed or capability; workers continue using instructions designed for manual work; they may perform unnecessary manual steps, feed the machine incorrectly, or use only part of its functions; output, efficiency, and possible savings then remain below what the machine could provide. Option A is correct because it directly expresses under-utilisation of the new resource. Option B, customers becoming owners, does not follow from a production method. Option C, advertising stopping, concerns marketing and has no necessary link with machine instructions. Option D, the company name becoming shorter, is unrelated to production technology. The old method may sometimes be retained temporarily for safety, but it should normally be adapted after training and testing. Memory cue: new technology needs a new or revised procedure.
When will control through method be considered strong?
Correct answer: A
The direct answer is A: control through a method is strong when deviation can be identified quickly and the corrective action can be recorded. A method is a planned sequence of steps for performing work. Control requires a standard, observation of actual performance, comparison with the standard, and corrective action. If a medicine, order, or process goes wrong, a good method should help staff notice the deviation, correct it, and leave a record for review. Option A is correct because it includes both detection and documented correction. Option B is wrong because no record prevents tracing errors and learning from them. Option C is wrong because guessing is not a reliable or standardised method. Option D is wrong because a hidden method cannot be checked, communicated, or audited properly. Control is therefore more than writing rules: the method must be clear, observable, and reviewable. Memory cue: standard, check, correct, record.
A company made an order cancellation method but did not include checking payment status. What is the main risk?
Correct answer: A
Direct answer: Option A, a wrong refund or payment dispute may occur. Payment status is a necessary control when an order is cancelled. Step by step, the company should identify the order, check whether payment was made, determine the amount and payment method, cancel the order, and then calculate any proper refund or outstanding amount. If the payment check is skipped, a customer who has not paid might receive money, a customer who paid might receive too little or nothing, or a refund could be issued twice. These errors can create financial loss, complaints, and disputes. Option A is correct because it follows directly from leaving out a key financial verification step. Option B is unrelated to cancellation and payment. Option C cannot change because of an order procedure. Option D is an exaggerated and unrelated result; the market will not close merely because one method is incomplete. Memory cue: cancellation plus payment check prevents refund mistakes.
Different branches of an organisation enter customer data in their own ways. Which reporting problem will be most likely?
Correct answer: A
Direct answer: Option A is correct. Reporting requires information from different branches to have the same meaning and format. If one branch records a customer’s name, date, complaint type or sales value differently from another branch, the organisation cannot easily compare results. Combining the records may require manual cleaning, and totals may become slow, inconsistent or inaccurate. This is the problem of difficult comparison and consolidation. Option A describes it exactly. Option B is wrong because different entry styles do not make customers disappear. Option C is unrelated: data-entry choices cannot change the weather. Option D is wrong because ownership does not end merely because branches use different formats. A common method, such as standard fields, codes and date formats, improves reliable reporting. Memory cue: different formats create difficult comparison and consolidation.
In which situation should a method be stopped immediately and reviewed?
Correct answer: A
A method should be stopped and reviewed immediately when it creates a clear possibility of a safety accident. A procedure is useful only when it achieves its purpose without exposing workers, customers, equipment, or the public to serious avoidable harm. Safety risks require priority because an accident may cause injury, damage, loss, or legal and ethical problems.
Saving a small amount of time is not, by itself, a reason to stop a method. Similarly, employees understanding the method and records being organised are positive features, not warning signs. When a clear accident risk is present, the method must be paused, examined, and corrected before work continues. Thus choice A correctly identifies the situation requiring immediate review.
A clinic has a method for seeing patient records but no common format for doctors notes. What problem will occur?
Correct answer: A
Direct answer: Option A, information may be difficult to understand during future treatment. A common note format helps every doctor record the same essential details in the same order. Step by step, a doctor should record symptoms, examination findings, diagnosis, medicines, advice, allergies, and follow-up needs in clear fields. If each doctor writes in a different style, important information may be missing, hidden in unclear wording, or difficult to locate. The next doctor may misunderstand the history, repeat a test, prescribe an unsuitable medicine, or delay proper care. Option A is correct because inconsistent notes reduce continuity and information quality. Option B is irrelevant because clinical documentation does not change a wall’s colour. Option C concerns company finance, not patient records. Option D is unrelated and impossible as a result of note formatting. Memory cue: common format means clear records and continuous treatment.
In which case will objective be the correct answer instead of method?
Correct answer: A
Direct answer: Option A is correct. An objective states the result an organisation wants to achieve, often with a number and a time limit. ‘Reduce customer complaints by 15% next year’ contains a desired result, a measurable percentage and a time period, so it is an objective. A method, in contrast, explains how the result will be achieved. Option B describes the method of entering complaints in an app. Option C describes a procedure for opening and documenting a return. Option D describes a filing procedure for saving documents. Therefore only A is the objective. The other choices may support the objective, but they are actions or procedures rather than the target itself. Memory cue: objective answers ‘what and how much by when’; method answers ‘how’.
A hotel check in method is fast but security verification is weak. What is the correct improvement approach?
Correct answer: A
A good hotel check-in method should be both efficient and safe. Speed is valuable because guests should not face unnecessary waiting, but speed cannot be achieved by removing controls that protect identity, room access, and records. The aim is to keep the quick steps while making the essential security check reliable and practical.
The correct improvement is therefore to strengthen the minimum necessary verification, such as confirming the guest’s identity and reservation details, while avoiding needless delay. Removing verification, collecting no customer data, or giving a key without a record would make unauthorised access and disputes more likely. These choices weaken control rather than improve the method. Hence option A gives the balanced and appropriate approach.
The direct answer is A: a version number shows which edition of the method document was followed. A procedure may change when a step is improved, a legal requirement changes, or a safety risk is discovered. Without version control, two employees may use different instructions and an auditor may not know which one applied at the time of the work. A version number, often used with an issue date or change record, helps track the history of revisions and establish accountability. Option A is correct because it gives the practical audit benefit. Option B is wrong because a version number does not enlarge a company logo. Option C is wrong because it cannot determine a customer's income. Option D is unrelated because document control does not change the weather. The exam cue is to connect version numbers with traceability, revision history, and proof of the instruction used.
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