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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 2View options
Rule
Policy
Objective
Method
Medium · Level 2View options
Method tells way of a task while strategy may be a broad plan for a competitive situation
Strategy is always a method of cleaning machine
Method only declares dividend
Both are never used
Medium · Level 2View options
Budget
Method
Dividend
Ownership
Medium · Level 2View options
When they do the actual work daily
When they have no relation with work
When they are only customers
When they are outside the organisation
Medium · Level 2View options
Creating digital receipt immediately after every payment
Planting trees in office
Decorating owners table
Making company festival poster
Medium · Level 2View options
It makes work happen differently every time
It helps work happen in a prescribed manner
It is only the owner's personal thought
It is only tax law
Medium · Level 2View options
Market policy
Profit plan
Safety procedure
Advertising budget
Medium · Level 2View options
It will always make work simpler
It will automatically increase customer demand
It will eliminate ownership rights
It will burden employees unnecessarily and slow down work
Medium · Level 2View options
Cash control procedure
Advertising procedure
Recruitment procedure
Production procedure
Medium · Level 2View options
Programme is always prohibition
Method tells manner and programme may be a coordinated group of activities
Method is always numerical
Both are only budgets
Medium · Level 2View options
Policy
Objective
Service method
Financial budget
Medium · Level 2View options
In arranging chairs
In choosing file colour
In putting wall poster
In mixing chemical substances
Medium · Level 2View options
Because actual performance can be compared with the prescribed method
Because changing the method gives every employee complete freedom
Because a method eliminates competition in the market
Because a method reduces all organisational costs to zero
Medium · Level 2View options
Budget
Method
Objective
Rule
Medium · Level 2View options
Policy
Strategy
Objective
Quality checking method
Medium · Level 2View options
When many employees do the same work in different shifts
When work is never repeated
When organisation has closed
When there are no customers
Medium · Level 2View options
Rule
Method
Budget
Objective
Medium · Level 2View options
When the method is clear and permits changes when needed
When the method is excessively rigid and leaves no scope for improvement or alternative suggestions
When employees are properly trained in the method
When the method is used for regularly performed tasks
Medium · Level 2View options
Checking safety cover before using machine and not operating machine without cover
Changing company logo
Celebrating employees birthday
Choosing wall colour
Medium · Level 2View options
Ownership plan
Method
Dividend plan
Advertising strategy
Medium · Level 2View options
Adopting an arbitrary method each time
Giving different instructions to each employee
Following the same prescribed method for similar work
Leaving work without checking it
Medium · Level 2View options
Objective setting
Capital structure
Advertising policy
Inspection method
Medium · Level 2View options
A method states how work will be done, whereas an objective states what is to be achieved
A method states only long-term results, whereas an objective gives the sequence of daily tasks
Both method and objective state only the funds required
A method states the type of ownership, whereas an objective states the market price
Medium · Level 2View options
Budget
Method
Policy
Programme
Medium · Level 2View options
Is it getting the work done correctly and efficiently
Is it changing owners name
Is it stopping weather
Is it reducing customer age
Question 1MediumLevel 2
If a company decides to first write problem category and then record resolution time on customer complaint what is this?
Correct answer: D
Writing the problem category first and then recording the resolution time specifies the sequence for performing a task. Therefore, it is a method. A rule states what must or must not be done, whereas a method explains the ordered steps for doing the work. Exam tip: When a question gives a fixed sequence of steps, identify it as a method.
Which is the correct difference between method and strategy?
Correct answer: A
The direct answer is A. A method explains the particular way or procedure used to perform a task. For example, a company may prescribe a method for handling a customer complaint or operating equipment. A strategy is broader: it sets a long-term direction or plan, often in response to competition, changing markets, or organisational goals. The reasoning is to compare the scope of the two terms: method is specific and procedural; strategy is wider and directional. Option A is correct because it states this distinction accurately. Option B is wrong because strategy is not always a machine-cleaning procedure; machine cleaning would be a specific method or procedure. Option C is wrong because declaring dividends is a financial decision, not the meaning of method. Option D is wrong because both methods and strategies are commonly used in business management and planning. A weak student can test the terms by asking: “How will this task be done?”—method; “Where do we want to go and how will we compete?”—strategy. Memory cue: method means the way of doing one activity; strategy means the broader plan for achieving goals, especially in a changing or competitive situation.
In a pharmacy the fixed manner of keeping medicines nearing expiry in front is related to what?
Correct answer: B
The correct answer is Method. A method specifies the prescribed way or sequence of performing a task. Keeping medicines close to expiry at the front is a fixed procedure that helps sell them first and reduces wastage and customer risk. A budget concerns the estimation and allocation of money, not the order in which medicines are arranged. Exam tip: When the question asks how a task will be done, look for method.
Which statement correctly states a feature of method?
Correct answer: B
A method specifies the prescribed and orderly way of performing a task. It guides employees to carry out work in a uniform manner, so option B is correct. Option A is incorrect because a method clarifies a standard way of working rather than a different way each time. Exam tip: remember that a method answers ‘how’ a task should be done.
At a construction site wearing gloves while carrying bricks and walking through the fixed path is an example of what?
Correct answer: C
Wearing gloves and using a fixed path are prescribed steps for carrying out work safely. Hence, this is a safety procedure. A market policy concerns selling, a profit plan concerns income and expenditure, and an advertising budget concerns promotional spending. Exam tip: When a question focuses on fixed steps for doing a task, identify it as a procedure.
An overly detailed and unnecessary method can create which problem?
Correct answer: D
A method specifies the sequence and manner of performing a task. When it becomes unnecessarily detailed or complicated, employees must follow extra steps and rules, increasing workload and slowing the work process. Therefore, option D is correct. A method may aim to simplify work, but an excessively detailed method can produce the opposite result. Exam tip: Remember both the usefulness of methods and the drawback of excessive rigidity or complexity.
If in a bank an employee signs a matching slip after counting cash then what type of method is this?
Correct answer: A
Signing a matching slip after counting cash is a cash control procedure. It specifies the sequence for checking cash and fixes the concerned employee’s accountability through the signature. A recruitment procedure relates to selecting employees, so it does not apply here. Exam tip: Identify a procedure by looking for ordered steps and assigned responsibility in doing a routine task.
Which option gives the correct difference between method and programme?
Correct answer: B
A method explains the manner or sequence in which a particular task should be performed. It is usually concerned with the practical way of doing one type of work. A programme is broader: it may combine several related activities, arrange them in an order, and include a schedule or time period. Thus, the two terms are connected with planning but do not mean the same thing.
Option B states this distinction accurately. A programme is not always a prohibition, and a method is not required to be numerical. Neither concept means only a budget. For example, a training programme may contain lectures, practice, tests, and dates, whereas a method may explain the steps for conducting one lesson or recording one activity. Therefore, B is the correct choice.
In a call centre asking customer satisfaction before ending the call is an example of what?
Correct answer: C
The direct answer is C: Service method. A method is a detailed or prescribed way of carrying out work. Asking the customer about satisfaction before ending a call is a standard step in the service process, so it is a service method. The reasoning is: the call reaches its final stage; the worker follows a specified action; the action checks the customer’s experience; therefore it describes how service is delivered. Option C is correct. Option A, policy, is less correct because a policy is a broad guiding rule for decisions, such as treating complaints fairly; it is not this particular action or sequence. Option B, objective, is wrong because an objective is a target, such as increasing customer satisfaction, not a step used to reach that target. Option D, financial budget, is wrong because a budget estimates money received and spent and says nothing about asking a caller a question. The question may provide feedback and improve quality, but the planning element identified is the method. Memory cue: a target is an objective, a broad guide is a policy, and a fixed service step is a method.
A method specifies the prescribed sequence or way of performing a task. It provides a basis for comparing actual performance, so deviations from the prescribed way can be identified and corrected. A method does not give unlimited freedom to employees; rather, it promotes uniformity in work. Exam tip: remember method as the ‘sequence of doing work’ and control as ‘comparison with a standard’.
In an e commerce company writing product code in file name before uploading product photo is an example of what?
Correct answer: B
Writing the product code in the file name before uploading a photo is a method because it prescribes how the task should be performed. This makes file identification, searching and record management easier. A rule usually states what must or must not be done, whereas this example describes the way of doing the task. Exam tip: Identify a method when an example specifies a standard way to perform a task.
In a hotel the inspector ticking a checklist after room cleaning shows what?
Correct answer: D
The direct answer is D, quality checking method. A method is a fixed, orderly way of doing or checking work. Here, cleaning is completed first, and the inspector then compares the room with a checklist. Each required point can be marked, so missed tasks are noticed and the same service standard can be maintained. Option A, policy, is a broad guideline for decisions; a checklist is more specific and practical. Option B, strategy, is a broad plan for achieving a major goal, not a small inspection routine. Option C, objective, is the result to be achieved, such as a clean and safe room; it is not the checking process itself. Option D is correct because ticking items is a systematic quality-control procedure. This also helps training, supervision and accountability. Memory cue: policy gives direction, strategy gives a broad plan, objective gives the target, and method tells how work is checked.
When is putting method in written form especially useful?
Correct answer: A
The direct answer is A. A written method is especially useful when many employees perform the same task in different shifts. A method records the correct sequence, safety points and quality standard, so one shift can continue the work in the same way as another. It also gives new workers a clear training guide and allows supervisors to compare performance. Option A is correct because repeated work by different people needs uniformity. Option B is wrong: if work is never repeated, a detailed routine is usually less useful, although records may still sometimes be needed. Option C is irrelevant because a closed organisation has no active work requiring a method. Option D is wrong because the absence of customers does not remove the need for orderly internal work; moreover, the question concerns different workers and shifts. The key idea is standardisation: written instructions reduce personal guesswork and variation. Memory cue: repeated task plus many workers or shifts means write the method.
If an organisation decides that an email reply will first mention complaint number and then solution status what is this?
Correct answer: B
The correct answer is method. A method specifies the steps or sequence for performing a task. Here, the organisation has fixed the order in which information must appear in an email reply: complaint number first and solution status next. A rule generally states what must or must not be done, whereas a budget concerns financial estimates and an objective is a desired goal. Exam tip: Look for a prescribed sequence of actions to identify a method.
In which situation can a method reduce employee initiative?
Correct answer: B
A method lays down the prescribed procedure for doing a task. When it is excessively rigid and gives employees no scope to suggest improvements or alternatives, it can restrict independent thinking and initiative. A clear but flexible method, in contrast, helps organise work. Exam tip: Remember that a limitation of methods is that excessive rigidity may reduce employee initiative.
In a library classifying a new book first then giving barcode and shelf number is an example of what?
Correct answer: B
A method is a clear and systematic way of performing a task. When a task contains a fixed order of steps, following that order helps people work consistently and reduces confusion. The library example deals with the routine processing of a newly received book. It gives a sequence rather than a financial decision, ownership arrangement, or promotional plan.
First, the book is classified so that its subject and place in the collection can be identified. Next, a barcode is assigned for recording and circulation, and then a shelf number is given so that the book can be located physically. This ordered procedure is exactly a method. Option B therefore follows from the nature of the activity. The other options do not describe the step-by-step handling of a library book.
A method lays down the prescribed sequence of steps for performing a task. Standardisation means using one approved method for similar tasks, which ensures uniformity, quality and control. Giving different instructions to different employees is the opposite of standardisation. Exam tip: Look for ‘similar work + same prescribed procedure’ to identify standardisation.
If in a furniture factory final polish of every table is checked separately by two workers then this is related to what?
Correct answer: D
Having two workers independently check the final polish of every table is an inspection method prescribed for quality control. A method specifies how a task is to be performed and the sequence to be followed. Objective setting would state a goal, such as ensuring defect-free polish, but would not prescribe this specific checking process. Exam tip: When the question asks how a task will be performed, look for a method.
Which clue gives the correct answer when there is confusion between method and objective?
Correct answer: A
A method specifies the prescribed way in which a task will be performed, so its key clue is “how it will be done.” An objective clarifies the result or target to be achieved, so its clue is “what is to be achieved.” Option B reverses these roles; funds, ownership, and market price are not the usual identifying clues for either term. Exam tip: Link “how” with method and “what is to be achieved” with objective.
An organisation fixes a way to check raw material first by weight then moisture and finally colour. This is an example of what?
Correct answer: B
A method specifies the fixed sequence of steps for performing a task. Here, raw material is checked in the stated order—weight, moisture, and colour—so it is a method. A policy gives broad guidelines for decision-making, whereas a programme coordinates several activities, time, and resources. Exam tip: If a question focuses on how a task is done and in what order, the answer is usually a method.
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