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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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Medium · Level 1View options
Unnecessary confusion increases in work
Clarity comes in work
Responsibility of employees ends
All alternatives become useless
Medium · Level 1View options
Programme
Strategy
Objective
Method
Medium · Level 1View options
Method
Objective
Budget
Strategy
Medium · Level 1View options
When employees arrive late without reason
When new equipment can do the same work with fewer errors
When owner buys a new office
When company name changes
Medium · Level 1View options
Method tells only goal
Procedure tells only expense
Procedure tells sequence of steps and method may tell the manner of doing a step
Both have no relation with planning
Medium · Level 1View options
Policy
Programme
Objective
Method
Medium · Level 1View options
Method
Rule
Financial budget
Advertising policy
Medium · Level 1View options
Only old tradition
Nature of work and available resources
Personal hobby of employee
Decoration of building
Medium · Level 1View options
Format for emailing bill to customer
Style of packing product
Smoking is completely prohibited in warehouse
Technique of cleaning machine
Medium · Level 1View options
Deciding customers income
Changing weather
Making law
Increasing uniformity and control in routine work
Medium · Level 1View options
Method
Objective
Profit plan
Market survey
Medium · Level 1View options
It always removes objectives
Very rigid method may reduce flexibility in changing situations
It never gives control
It is related only to owners house
Medium · Level 1View options
Budget
Policy
Objective
Method
Medium · Level 1View options
When the standard way of work is written and simple
When every employee creates a different way
When instructions are deliberately unclear
When nature of work is hidden
Medium · Level 1View options
Recording an employee's date of birth
Checking the stitching of a finished shirt using a checklist
Painting an office wall
Writing a company slogan
Medium · Level 1View options
Objective
Policy
Method
Budget
Medium · Level 1View options
Only on customer preference
Only on office colour
Only on owners name
On employees understanding and compliance
Medium · Level 1View options
A method specifies the prescribed way of performing a task, whereas a budget is a plan expressed in numerical terms.
A method fixes the available amount of money, whereas a budget states the steps for performing a task.
Both a method and a budget are merely statements of general rules.
Both a method and a budget are merely motivational slogans for the future.
Medium · Level 1View options
Programme
Method
Objective
Rule
Medium · Level 1View options
When work is repeated daily
When uniform quality is needed
When the situation is completely new and uncertain
When employees need training
Medium · Level 1View options
Changing law
Increasing share price
Changing ownership
Reducing chance of wrong order
Medium · Level 1View options
Because it can be used repeatedly for similar tasks
Because it is made only for a single day's work
Because it only states the expected profit
Because it applies only to government work
Medium · Level 1View options
Checking both safety cover and emergency switch before starting machine
Selecting company advertisement song
Changing owners chair
Writing customer birthday
Medium · Level 1View options
When all employees are on leave
When the same mistake is happening repeatedly
When office colour is to be changed
When owners vehicle changes
Medium · Level 1View options
Allowing employees to work without instructions
Allowing work to be done according to individual preference
Clarifying the best available manner of doing work
Hiding expenses related to work
Question 1MediumLevel 1
What is the main benefit of deciding the method of work in advance in planning?
Correct answer: B
The governing concept is that planning decides in advance what is to be done and how it is to be done. When the method of work is fixed beforehand, employees understand the sequence, approach, and expected standard of performance. This gives clarity, coordinates individual efforts, and reduces hesitation or duplication. Therefore, option B is correct because advance determination of the method makes work clearer and more systematic. Option A is opposite to the actual effect. Option C is incorrect because planning clarifies responsibility rather than removing it, while option D wrongly suggests that alternatives have no value at all.
Which plan emphasises the specific working technique to be adopted for an activity?
Correct answer: D
The governing concept is that a method specifies the particular manner or technique in which an activity should be performed. The wording “specific working technique” points directly to how one task is to be carried out, so option D, Method, is correct. A programme is a coordinated set of activities, schedules, and resources designed to achieve an objective. A strategy is a broad plan for responding to the environment or achieving an important long-term aim. An objective states the result to be achieved, not the technique for achieving it. The question does not ask what result is desired, how several activities are coordinated, or how the organisation will compete; it asks about the exact working technique, which is the defining feature of a method.
In a hospital the fixed manner of writing patient identification number on a bottle after sample collection is an example of what?
Correct answer: D
A method is a fixed manner of carrying out a particular task. In the hospital example, writing the patient identification number on the bottle after collecting a sample describes the exact way staff must perform that task. This makes option D, method, the correct answer. A policy gives a general guiding principle, a programme combines several activities over time, and an objective states what an organisation wants to achieve. None of those directly names the prescribed manner of writing the number.
The action is narrow and procedural: first collect the sample, then write the identification number in the required way. Because it explains how one step should be done, it is a method. The purpose may be to reduce mistakes and keep the sample linked to the correct patient, but that purpose does not change the classification. The question asks for the fixed manner itself, not its result. Therefore option D is correct, and the supplied answer is clear and accurate.
If every employee is packing differently and product presentation is becoming uneven which plan should be prepared first?
Correct answer: A
A method specifies the standard sequence and procedure for performing a task. A packing method ensures that all employees follow the same steps, materials, and presentation standards, producing uniform output. A rule only states what must or must not be done; it does not provide the complete process for packing. Exam tip: Choose a method when the question asks for fixed steps or a way of performing a task.
A rule states what must be done or what must not be done. It is usually a clear instruction or prohibition that guides behaviour. “Smoking is completely prohibited in the warehouse” tells everyone that smoking is not allowed there. It does not describe the steps or technique for completing a task. Therefore the statement in option C is a rule rather than a method.
The other options explain how to perform work: a format describes how a bill should be emailed, a packing style describes how a product is packed, and a cleaning technique describes how a machine is cleaned. These are methods because they give a manner or procedure of doing something. The word “prohibited” is the key sign of a rule, so option C is correct.
In management, a method is a prescribed and systematic way of carrying out routine work. It gives employees a common sequence of actions and helps them perform similar tasks with fewer unnecessary differences. The main managerial benefit is therefore greater uniformity and better control over daily operations, so option D is correct.
When a method is followed, supervisors can compare performance with a known standard, identify mistakes, train new workers, and maintain more consistent quality. It can also reduce confusion and make responsibility easier to monitor. A method cannot decide customers’ income, change the weather, or create laws; those choices are unrelated to its managerial purpose. Thus, increasing uniformity and control in routine work is the benefit described by option D.
In an online store the fixed way of recording video before opening return parcels shows which plan?
Correct answer: A
The direct answer is A: Method. In planning, a method is a prescribed or fixed way of performing a particular task. Here, recording a video before opening every return parcel tells workers exactly how to inspect the parcel. The reasoning is: there is one repeated activity, a fixed sequence is given, and employees follow that sequence; therefore it is a method. Option A is correct because it explains how the work must be done. Option B, objective, is wrong because an objective states the desired result, such as reducing return fraud; it does not give the steps. Option C, profit plan, is wrong because profit planning deals with income, costs and profit, not parcel-opening procedure. Option D, market survey, is wrong because a survey collects information about customers or markets, whereas this is an internal operating instruction. The method may reduce disputes because a video creates a record, but its defining feature is the prescribed procedure. Memory cue: objective means what to achieve; method means how to do it.
Which statement correctly states a limitation of method?
Correct answer: B
The direct answer is B: a very rigid method may reduce flexibility in changing situations. In planning, a method is an established way or sequence for carrying out work. It gives guidance and can support consistency, but it should not become so rigid that people cannot respond to new conditions. Step by step: an organisation chooses a method, circumstances change, the old steps may no longer fit, and a completely rigid method prevents timely adjustment; therefore flexibility can fall. Option B is correct because it states this genuine limitation. Option A is wrong because a method does not always remove objectives; objectives are the goals that planning tries to achieve. Option C is wrong because methods can support control by providing standards for action, even though they are not the only control tool. Option D is wrong because a method concerns work procedures, not only an owner’s home. A good method should be clear but reviewable. Memory cue: method gives a path, but a rigid path can block adaptation.
In a car service centre spraying water first then applying foam and finally wiping with dry cloth is an example of what?
Correct answer: D
A method states the definite sequence of steps to be followed for performing a task. Here, spraying water, applying foam, and wiping with a dry cloth are clearly arranged steps for cleaning a car; therefore, it is a method. A policy gives general guidance for decision-making, whereas a method specifies the actual steps to be taken. Exam tip: When a question describes a step-by-step sequence for doing work, look for method as the answer.
Which example links method directly with quality control?
Correct answer: B
A method is a prescribed sequence of steps for performing a task. Checking the stitching of a finished shirt against a checklist is a quality-control method because it identifies defects and ensures that specified quality standards are met. Recording an employee's date of birth is administrative record-keeping, not quality checking. Exam tip: In questions on methods, look for a clear, step-by-step way of doing a task.
If an organisation decides that cash deposit will be matched by two employees what is it an example of?
Correct answer: C
The prescribed way of matching a cash deposit through two employees is a method. A method specifies the steps or sequence for performing a task. A policy gives broad guidance for decision-making, whereas this situation fixes a clear process for checking cash. Exam tip: If the question asks how a task will be performed, choose method.
Effective implementation of method depends most on what?
Correct answer: D
The direct answer is option D: effective implementation of a method depends most on employees understanding and following it. A method is useful only when people who perform the work know what it means and apply its steps correctly. The chain is: management explains the procedure; employees understand the instructions; they follow the steps consistently; results are checked and improved. If employees do not understand or comply, even a well-written method remains only a document. Option A is wrong because customer preference may affect some business decisions, but it cannot by itself implement an internal work procedure. Option B is wrong because office colour has no direct role in whether employees understand or follow instructions. Option C is wrong because the owner’s name does not make a procedure workable. Option D is correct because employee understanding supports correct action and compliance supports regular application. Training, clear language, supervision, and feedback can strengthen this implementation. Memory cue: a method works when people know it and do it.
Which option shows the correct difference between method and budget?
Correct answer: A
A method explains the prescribed procedure or sequence for carrying out a task. In contrast, a budget is a plan expressed in numerical terms, such as expected income, expenditure, quantity, or cost. Therefore, option A is correct. Option B reverses the roles of the two terms. Exam tip: ‘How a task will be done’ indicates a method, while a ‘plan in figures’ indicates a budget.
In a school the fixed manner of checking objective questions first and then short answers is called what?
Correct answer: B
A method specifies the prescribed way or sequence for performing a task. Here, checking objective questions before short-answer questions is a fixed sequence for evaluating an answer sheet, so it is a method. A programme is broader and usually includes a schedule of activities, while a rule states what must or must not be done. Exam tip: Choose ‘method’ when the question asks how a task will be performed or in what order.
A method specifies the prescribed sequence for performing a task. It can be applied again whenever similar work has to be done, so it is treated as a standing plan. A plan made for only one day or one specific occasion is not a standing plan. Exam tip: standing plans guide recurring activities, whereas single-use plans are prepared for a particular purpose.
Which example is a medium level application of safety method?
Correct answer: A
A safety method is a fixed and practical way of preventing accidents while work is being done. A medium-level application means that the learner or worker applies more than one relevant safety step in an ordinary work situation. The chosen action is directly connected with safe machine operation, unlike the other choices, which concern advertising, furniture, or customer information.
Before starting the machine, checking both the safety cover and the emergency switch follows a planned safety procedure. The cover helps prevent contact with dangerous moving parts, while the emergency switch provides a way to stop the machine quickly if something goes wrong. Therefore, option A correctly shows a medium application of the safety method. The other options do not reduce operational safety risk.
The direct answer is option B: a method should be reviewed when the same mistake is happening repeatedly. Review means examining whether the procedure is clear, practical, current, and being followed correctly. The reasoning is: repeated error appears; find where the process fails; check the instructions, training, tools, and supervision; then revise or explain the method if necessary. Option A is wrong because employees being on leave is not, by itself, evidence that the method is weak. Option B is correct because a repeated mistake is useful evidence that the method may be unclear, incomplete, impractical, or poorly implemented. Option C is wrong because changing the office colour has no necessary connection with the quality of a work procedure. Option D is wrong because changing the owner’s vehicle does not show that the method needs review. A review should be based on performance evidence, changing requirements, safety concerns, or repeated confusion—not on unrelated personal or decorative events. Do not blame employees immediately; first check whether instructions and training are adequate. Memory cue: repeated error means review the method.
Which option states the purpose of method most correctly?
Correct answer: C
A method specifies the best available way of performing a task. It gives employees clear guidance and promotes uniformity and efficiency in work. Option B is incorrect because allowing individual preferences can lead to different ways of doing the same task and reduces standardisation. Exam tip: A method answers the question, “How should the work be done?”
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