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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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Medium · Level 4View options
Prescribed technique of doing work
Standard manner of routine work
Way that improves efficiency
Total value of company capital
Medium · Level 4View options
Method
Policy
Objective
Programme
Medium · Level 4View options
When they know practical difficulties of actual work
When they are unaware of that work
When they are outside the organisation
When they are only customers
Medium · Level 4View options
Recording every transaction with date and voucher number
Playing music in office
Putting poster on wall
Offering water to customer
Medium · Level 4View options
Continue old method without reason
Update the method according to new technology
Give no instruction to employees
Stop the work completely
Medium · Level 4View options
It provides employees with a standard method for doing similar work
It changes customers’ income
It determines the market price of a product
It terminates ownership rights in a business
Medium · Level 4View options
Marketing policy
Financial budget
Technical method
Ownership structure
Medium · Level 4View options
Method tells money and budget tells technique
Method tells how to do and budget tells plan in numbers
Both are always same
Both are only policies
Medium · Level 4View options
Objective
Budget
Method
Procedure
Medium · Level 4View options
When every product is checked in different ways
When the number of customers is increasing suddenly
When the owner is making personal expenses
When the shop name is short
Medium · Level 4View options
Financial budget
Quality control procedure
Advertising objective
Ownership plan
Medium · Level 4View options
Following the same prescribed method for similar work
Creating a new method every time for each task
Allowing employees to work without any instructions
Leaving the method of work to each employee's preference
Medium · Level 4View options
Screening applications first and then taking skill test to check candidate ability
Making company festival poster
Opening owners personal bank account
Decorating shop window
Medium · Level 4View options
Review the method to identify the causes of errors
Replace the entire method without analysis
Hold only employees responsible for the errors
Ignore the errors and continue with the same method
Medium · Level 4View options
Speaking solution summary and sending message at end of call
Changing shop board
Keeping plants in office
Buying employees personal phone
Medium · Level 4View options
In repeated operational tasks
In purely political decisions
Only in owners personal preference
In changing weather
Medium · Level 4View options
Policy
Claim checking method
Objective
Dividend
Medium · Level 4View options
An unsuitable method can increase time and cost
Method can never be changed
Method always gives only benefit
Method has no relation with work
Medium · Level 4View options
Method
Procedure
Rule
Budget
Medium · Level 4View options
It teaches new employees the correct way of work
It always makes training impossible
It only fixes bonus
It does not allow customer to be trained
Medium · Level 4View options
Method
Objective
Dividend
Ownership
Medium · Level 4View options
Procedure may tell sequence of steps
Method tells manner of doing a task
There is no difference between them
A step of a procedure may have its own method
Medium · Level 4View options
Packing method
Weather forecast
Ownership plan
Advertising slogan
Medium · Level 4View options
New way gives same quality in less time
Old way is working without problem
Employees are already clear
Work is never repeated
Medium · Level 4View options
Scanning important file and keeping it in password protected folder
Keeping flowers in office
Writing shop discount
Placing owners photo
Question 1MediumLevel 4
Which option gives the wrong meaning of method?
Correct answer: D
A method means the way, technique, or standard procedure used to perform work. A prescribed technique tells workers how a task should be done. A standard manner of routine work also describes a method because it provides a regular pattern for carrying out activities. Similarly, a way that improves efficiency remains a method when it explains how work can be completed better. These meanings all concern the performance of work.
The total value of a company’s capital is a financial measure, not a way of doing any task. It may describe the amount invested or the value of business resources, but it does not prescribe steps, technique, or procedure. Therefore option D gives the wrong meaning of method. The correct concept is concerned with work processes, while capital value belongs to finance and accounting.
In a school matching student details with portal before accepting admission form is an example of what?
Correct answer: A
The correct answer is method. A method specifies the sequence of steps for performing a task. Verifying student details on the portal before accepting an admission form is a fixed step in the admission process, so it is a method. A policy gives broad guidance, such as admitting only eligible students; it does not describe the step-by-step process. Exam tip: When a question focuses on how a task is done or the order of steps, look for method.
When is involving employees while making a method beneficial?
Correct answer: A
A method explains the practical way in which a task should be performed. Employees who actually carry out the work often know its real difficulties, time requirements, safety concerns, and possible improvements. Including their experience while preparing a method can make the instructions more realistic, workable, and easier to follow. It can also reduce the difference between a plan written on paper and the conditions found in the workplace.
Option A is correct because employees with direct work experience can identify practical problems that planners may overlook. Employees who do not know the work cannot give equally useful technical guidance. People outside the organisation and customers may provide other kinds of feedback, but they are not normally the primary source for designing an internal work method. Thus, participation is most beneficial when workers understand the actual task.
If new technology gives faster and more accurate results than old method what is suitable?
Correct answer: B
The direct answer is B: update the method according to the new technology. A method is not sacred; it should help work become efficient, accurate and safe. Reasoning step by step: compare old and new results; confirm that the new technology is genuinely faster and more accurate; revise the work steps; train employees; then monitor the results. Option A is wrong because continuing an inferior method without reason wastes time and may increase errors. Option B is correct because planning and methods should adapt to improved resources. Option C is wrong because employees need clear instructions, training and responsibilities. Option D is excessive: a better tool calls for improvement, not stopping useful work. Memory cue: better verified technology means better method, with training and checking.
Which statement correctly shows the role of method?
Correct answer: A
A method specifies the sequence and manner in which a task is to be performed. It gives employees a standard procedure for similar work, helping maintain uniformity, efficiency, and quality. Determining a market price is a pricing decision, not the role of a method. Exam tip: Remember method as ‘how a job will be done’.
In a laboratory the fixed manner of calibrating equipment before testing is related to what?
Correct answer: C
The fixed procedure for calibrating equipment before a test is a technical method. A method specifies how a task will be performed in a defined sequence and according to set standards, helping to ensure reliable test results. A marketing policy concerns promotion and sales, not the calibration process. Exam tip: Link a prescribed way of doing a task with a method.
What is the correct identification when confused between method and budget?
Correct answer: B
A method and a budget are both planning tools, but they answer different questions. A method explains how a task should be carried out, including the manner or sequence of its steps. A budget expresses a plan in numerical or monetary terms, such as expected income, expenditure, quantities, or allocations. Keeping this distinction clear prevents confusion while studying planning techniques.
Option B gives the correct identification. For example, a method may describe how purchase records are checked and approved, while a budget may state the amount available for purchases during a period. A method is therefore not primarily a statement of money, and a budget is not a technique for performing a task. They are also not always identical and are not merely policies. Thus, B is correct.
In a mobile repair centre removing battery connector before replacing screen is what type of plan?
Correct answer: C
Removing the battery connector before replacing the screen is a prescribed way of performing the repair safely; therefore, it is a Method. A method explains how a particular task should be done. A Procedure usually consists of a sequence of several steps, whereas this example highlights the way to carry out a repair task. Exam tip: If the focus is on ‘how to do’ a task, choose Method.
In which situation will method help most in quality improvement?
Correct answer: A
When each product is inspected differently, quality standards become inconsistent and errors may increase. A clear method standardises the steps and criteria of inspection, so option A is correct. An increase in customers may require capacity planning, but it does not directly solve inconsistent quality checks. Exam tip: A method is a prescribed, standardised way of performing a task.
In a restaurant checking temperature of food before serving it from kitchen is an example of what?
Correct answer: B
Checking the temperature before serving is a quality control procedure: it is a prescribed way of ensuring that food is safe and served at a suitable temperature. A financial budget deals with estimates and allocation of money, not with the process of serving food. Exam tip: When a question describes a fixed way of performing a task, look for method or procedure.
What is the most correct meaning of standardisation in method?
Correct answer: A
A method specifies the prescribed sequence or way of performing a task. Standardisation means following one uniform, prescribed method for similar work so that quality, time and efficiency remain consistent. Creating a new method every time is the opposite of standardisation. Exam tip: Remember that standardisation means “same prescribed method for similar work.”
A recruitment method is an organized procedure used to identify and select suitable candidates for a job. Screening applications first helps remove candidates who do not meet basic requirements. A skill test can then examine whether the remaining candidates possess abilities relevant to the position. Using these steps in a planned order makes recruitment more systematic, fair, and efficient, while also giving the organization useful evidence for its decision.
Option A is correct because application screening followed by a skill test is clearly a recruitment procedure. Making a festival poster, opening the owner’s personal bank account, or decorating a shop window does not involve finding or evaluating employees. The example therefore shows a method applied to a specific human-resource task, so the supplied answer is consistent.
If errors are not reducing even after applying a method what is the first suitable step?
Correct answer: A
If errors continue after a method has been implemented, the first step is to review it and identify where and why the problem is occurring. Only after finding the cause can suitable changes be made in the method, training, or control process. Replacing the whole method without analysis may be premature. Exam tip: When a planning method fails to give the expected result, choose review and cause analysis as the first action.
Which example connects customer service method and communication?
Correct answer: A
A customer service method is a planned way of handling a customer’s need. Communication is involved when the employee clearly shares information with the customer. Speaking a solution summary at the end of a call and then sending the same message uses both a service procedure and communication. It helps the customer know what was decided and what action will follow.
Option A is correct because it gives a definite closing step and communicates the result in two clear forms. The summary checks understanding, while the message provides a record that can be read later. The other options concern appearance, office decoration, or personal equipment; they do not describe a customer-service method linked with communication. This practice can reduce confusion and make follow-up easier.
A method is especially useful when an organisation performs the same or similar task repeatedly. A fixed sequence gives workers a common guide, supports consistency, and reduces the need to decide every step afresh. Repeated operational activities such as checking stock, processing an order, or recording attendance can therefore be performed more efficiently when a suitable method is available.
Option A correctly identifies repeated operational tasks. Following the same approved steps can save time, make training easier, and reduce avoidable errors, although it cannot remove every possible mistake. Purely political decisions and an owner’s personal preference are not necessarily routine operational procedures. Weather changes are natural events, not organisational tasks controlled through a method. Hence, A is the most suitable use of method.
In an insurance company matching photo proof and bill before accepting claim is an example of what?
Correct answer: B
The direct answer is B: claim checking method. A method explains how a particular task is carried out. Here, before accepting an insurance claim, the company compares the photograph with the bill. The steps are easy to follow: receive the claim, inspect the photo, inspect the bill, compare the details, and then accept or question the claim. This is a practical checking method and helps prevent false or unsupported claims. Option A, policy, is a broad general rule, not this particular checking action. Option B is correct because it describes the actual method used to verify the claim. Option C, objective, is the desired result, such as reducing fraud; it is not the checking process itself. Option D, dividend, is a distribution of profit to shareholders and has no connection with insurance verification. Exam cue: a fixed way of performing a task is a method; a broad rule is a policy; a desired result is an objective.
In a printing press making plate only after final proof reading is an example of what?
Correct answer: A
Making the plate only after the final proof has been read is a prescribed way of performing a task; therefore, it is a Method. A procedure usually describes a sequence of several steps, whereas this statement highlights the specific manner to be followed before plate-making. Exam tip: Remember that a method is the ‘way’ of doing a task, while a procedure is the ‘sequence of steps’.
A method provides a clear and repeatable way of performing work, so it can serve as an important basis for training. New employees can learn the correct sequence, tools, standards, and precautions by studying and practising the approved method. This reduces confusion and helps different employees perform the same task with greater consistency. A method does not itself determine bonuses or make training impossible.
Option A is correct because teaching the correct way of doing work is a direct connection between method and training. When the method is clearly described, a trainer can demonstrate it and a learner can practise it and receive feedback. The other options either deny this relationship or describe unrelated matters. Therefore the supplied answer accurately explains how a method supports employee learning.
If an organisation follows a fixed way of converting decisions into action list after every meeting what is it?
Correct answer: A
The direct answer is A: method. A method is a fixed or accepted way of performing a task. In this case, after every meeting, the organisation changes decisions into an action list. The reasoning is: a meeting produces decisions; the decisions are written down; each decision is converted into a task; responsibility or timing may then be assigned. This repeated way of moving from decision to action is a method. Option A is correct because it names the manner of carrying out the follow-up task. Option B, objective, means what the organisation wants to achieve, such as completing a project; it does not describe the steps used after a meeting. Option C, dividend, is profit distributed to owners or shareholders and is unrelated. Option D, ownership, concerns who owns or controls the organisation, not how meeting decisions are implemented. Memory cue: objective tells “what result,” while method tells “how the work is done.”
Which option does not correctly differentiate method and procedure?
Correct answer: C
The direct answer is C: saying that there is no difference between method and procedure is incorrect. A procedure normally gives the ordered sequence of steps, while a method explains the manner or technique used to perform a task or a step. For example, a procedure may say receive an application, check documents, approve it, and record the decision. The method may explain how the documents are checked. Option A is correct because a procedure may show the sequence. Option B is correct because a method tells the way of doing work. Option C is the incorrect differentiation because the two ideas are related but not identical. Option D is also correct: one step in a procedure can have its own method. Thus C is the answer to a “does not correctly differentiate” question. Exam cue: procedure means ordered steps; method means the manner of carrying out a task.
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