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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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Medium · Level 6View options
Method
Budget
Strategy
Profit objective
Medium · Level 6View options
Financial budget
Seating arrangement method
Market objective
Ownership policy
Medium · Level 6View options
Advertising method
Dividend plan
Quality monitoring method
Ownership plan
Medium · Level 6View options
Method states the sequence of steps for doing work, whereas a budget states only the policies of an organisation
Method estimates future income and expenditure, whereas a budget states the technique of doing work
Method states compulsory rules, whereas a budget states standards of employee behaviour
Method states the way of doing work, whereas a budget is a plan expressed in numerical terms
Medium · Level 6View options
Stock replenishment procedure
Sales target
Cash budget
Advertising policy
Medium · Level 6View options
Profit objective
Quality approval method
Capital structure
Market survey
Medium · Level 6View options
जब कार्य करने का कोई मानक तरीका निर्धारित न हो
जब कर्मचारी अपनी सुविधा के अनुसार कार्य-पद्धति बदलते रहें
जब निर्धारित कार्यविधि से विचलन को तुरंत पहचाना जा सके
जब कार्य के अभिलेख और रिपोर्ट तैयार न किए जाएँ
Medium · Level 6View options
Feedback policy
Feedback rule
Feedback procedure
Feedback method
Medium · Level 6View options
Order cancellation method
Objective
Policy
Profit budget
Medium · Level 6View options
Advertising policy
Purchase quality method
Ownership plan
Profit objective
Medium · Level 6View options
Accounting method
Sales method
Safety entry method
Market survey
Medium · Level 6View options
Objective
Policy
Programme
Method
Medium · Level 6View options
Shift handover method
Profit objective
Advertising budget
Ownership policy
Medium · Level 6View options
Dividend
Vehicle maintenance procedure
Market policy
Sales budget
Medium · Level 6View options
Financial budget
Ownership plan
Laundry quality method
Advertising objective
Medium · Level 6View options
Writing the company’s annual target
Adding an employee’s personal expenses
Changing the name of a shop
Cleaning hands and the serving spoon before serving food
Medium · Level 6View options
Purchase procedure
Policy
Objective
Sales budget
Medium · Level 6View options
Profit objective
Sales presentation method
Cash budget
Ownership plan
Medium · Level 6View options
Advertising policy
Dividend
Digital submission method
Ownership plan
Medium · Level 6View options
Policy
Rule
Programme
Method
Medium · Level 6View options
Stock audit method
Objective
Sales policy
Dividend
Medium · Level 6View options
Advertising method
Rework method
Profit budget
Ownership policy
Medium · Level 6View options
When complaints are very few and simple
When there is no customer
When many complaints need to be separated by seriousness
When organisation is closed
Medium · Level 6View options
Policy
Dividend
Advertising plan
Cash refund method
Medium · Level 6View options
Technical calibration method
Market objective
Sales budget
Ownership plan
Question 1MediumLevel 6
In a clinic opening old record and noting symptoms before patient appointment is what?
Correct answer: A
Opening the record and noting symptoms before an appointment is a prescribed way of performing a task, so it is a Method. It helps clinic staff carry out the same activity in a consistent sequence. A strategy is a broader plan for achieving an objective, whereas this example describes the manner of doing a specific task. Exam tip: If the question asks how a task will be done, look for Method.
In an event hall arranging chairs according to layout and keeping passage clear before programme is an example of what?
Correct answer: B
Direct answer: B, seating arrangement method. A method tells the fixed way of completing a particular task. In this case, the hall staff follow the layout map, place chairs in the planned positions, and keep the passage clear. Step by step, the map guides placement; the open passage allows movement and emergency access; together these improve order, safety and convenience before the programme begins. Option A, financial budget, is a plan of expected money receipts and spending, not chair placement. Option B is correct because it names the planned procedure for arranging seats. Option C, market objective, is a business target about customers or sales. Option D, ownership policy, concerns who owns or controls an organisation. Exam cue: when a question describes a fixed physical arrangement for a task, look for an arrangement method.
In a milk processing unit recording temperature of every tank every two hours is what type of method?
Correct answer: C
The direct answer is C: recording the temperature of every tank at fixed two-hour intervals is a quality monitoring method. A method is a planned, repeatable way of carrying out work. In milk processing, temperature directly affects safety, freshness and product quality. The worker records each tank at regular times, compares the reading with the approved range, and takes corrective action if the temperature is too high or too low. This creates a checkable record and can help detect spoilage or equipment failure early. Option C is correct because the activity monitors a quality-related condition. A is wrong because advertising promotes a product and does not describe temperature checks. B is wrong because a dividend plan concerns distribution of profit to shareholders. D is wrong because ownership concerns who controls an enterprise. Exam cue: regular measurement against a quality standard is quality monitoring, not promotion or ownership.
Which option gives the correct difference between method and budget?
Correct answer: D
A method specifies the prescribed way or steps for carrying out a task. In contrast, a budget is a numerical statement of expected income, expenditure, production, or other activities for a specified period. Therefore, option D is correct. Option B wrongly reverses their roles. Exam tip: “How to do it” points to a method, while “a plan in figures” points to a budget.
In a spare parts shop scanning code first and adding item to purchase list when stock is low is related to what?
Correct answer: A
The ordered steps of scanning an item code and adding the item to the purchase list when stock is low form a stock replenishment procedure. A procedure specifies how a routine task is to be carried out in sequence. A sales target only states the expected level of sales; it does not prescribe steps for replenishing inventory. Exam tip: clues such as ‘how’ and ‘in what sequence’ usually indicate a procedure or method.
In a printing press starting final printing only after colour proof is approved by customer is called what?
Correct answer: B
The direct answer is B, quality approval method. A colour proof is a sample showing how the final printed colours are expected to appear. If the customer approves that proof before full printing, the press follows a defined quality-control and approval step. This confirms the specification in advance and can prevent disagreement, waste and costly reprinting. Option A, profit objective, is a desired financial result, not the procedure of obtaining approval. Option B is correct because it names the fixed method used to verify and approve print quality before production. Option C, capital structure, describes the mix of debt and owners' funds used to finance a business; it has nothing to do with colour checking. Option D, market survey, collects information about customers or market demand before making business decisions; it is not approval of a particular print sample. The sequence is important: prepare proof, show it to the customer, receive approval, then begin final printing. Memory cue: sample approved before bulk work means an approval method, not a profit goal or market survey.
In which situation will control become stronger because of method?
Correct answer: C
A method lays down a prescribed sequence or standard way of doing a task. Control becomes stronger when any deviation from this method can be identified immediately, because corrective action can then be taken in time. The absence of a standard method or records weakens control. Exam tip: Remember that a method provides a standard for control.
Asking rating first then comment and then contact permission in customer feedback is an example of what?
Correct answer: C
This is a feedback procedure because it specifies a fixed sequence of steps: rating first, comment next, and permission to contact last. A policy gives broad guidance, while a rule states what must or must not be done. A method describes a way of performing a task, but a procedure especially emphasises the ordered steps. Exam tip: Words such as ‘first’, ‘then’, and ‘finally’ often indicate a procedure.
Matching payment status and dispatch status before cancelling an online order shows what?
Correct answer: A
An order-cancellation method is a planned sequence of checks completed before an order is cancelled. Payment status tells whether money has been received, refunded, or is still pending. Dispatch status tells whether the order has been packed or sent. Matching these two records before cancellation helps the business choose the correct action and prevents an order from being cancelled after dispatch.
Option A is correct because the described activity is a specific checking step within order cancellation. It can reduce mistaken cancellations, delayed refunds, and disputes about payment or delivery. An objective states a desired result, while a policy gives a broad guiding rule; neither is simply this checking sequence. A profit budget concerns expected income and expenditure, so it does not fit the example.
Allowing entry at construction site only after checking helmet use is what type of method?
Correct answer: C
Checking whether a person is wearing a helmet before allowing entry is a prescribed sequence of steps meant to ensure safety at the construction site. Therefore, it is a safety entry method. An accounting method concerns financial records, whereas this procedure aims to reduce the risk of accidents. Exam tip: A method/procedure states the fixed sequence of steps for performing a task.
If in billing product code then discount and finally tax are checked in a fixed way what is it?
Correct answer: D
A fixed sequence for checking the product code, discount and tax is a method. A method specifies the orderly steps for performing a task, ensuring uniformity and reducing billing errors. A policy gives broad guidance for decisions, but this case states definite steps to be followed. Exam tip: A prescribed sequence explaining ‘how to do’ a task usually indicates a method.
During shift change the previous employee writing pending work and important information is an example of what?
Correct answer: A
A shift handover method is a fixed way of transferring work information from one employee or team to the next. It normally records what has been completed, what is still pending, what problems have appeared, and what action is needed next. Such a method prevents important information from being lost when working hours change. It is especially useful in workplaces that operate continuously or handle tasks over several shifts.
In the situation described, the outgoing employee writes the unfinished work and necessary information for the incoming employee. This is exactly a shift handover method, so choice A is correct. It supports continuity because the next employee can begin with a clear understanding of the work. It also improves accountability because the status and transfer of information can be checked. Profit objective, advertising budget, and ownership policy do not describe this operational information-sharing process.
In a bus service checking brake lights and tyre pressure every morning and filling logbook relates to what?
Correct answer: B
Checking brake lights and tyre pressure each morning and recording the results in a logbook is a prescribed vehicle maintenance procedure. It specifies the sequence of work and provides a record of safety checks. A market policy concerns marketing or customers, so it does not fit this situation. Exam tip: When fixed steps for performing a task are described, identify it as a procedure or method.
Cleaning hands and the serving spoon before food is served is a defined procedure for maintaining hygiene in a canteen. It reduces the chance of food contamination and related health risks. Writing an annual target is a planning activity, not a hygiene method. Exam tip: A method refers to a specified way or sequence for doing a task.
Checking rate comparison sheet and approval signature before issuing purchase order shows which plan?
Correct answer: A
Checking the rate comparison sheet and obtaining approval signatures are prescribed steps to be completed before issuing a purchase order. Hence, this is a purchase procedure. A policy gives broad guidance for decision-making, whereas a procedure specifies the sequence of actions. Exam tip: When fixed steps for completing a task are given, identify it as a procedure.
What will listing the customers problem before explaining the product by a sales representative be called?
Correct answer: B
The direct answer is B: sales presentation method. A sales method is a planned way of communicating with a customer to make the product explanation relevant and useful. Here the representative first lists the customer’s problem and only then explains the product. The reasoning is: identify the customer’s need; understand the difficulty; select relevant product features; present the product as a possible solution. This is more effective than giving the same speech to everyone. Option B is correct because it describes an organised method for presenting a product. Option A, profit objective, states a desired financial result, not a selling procedure. Option C, cash budget, estimates expected cash receipts and payments. Option D, ownership plan, concerns who owns or controls a business and does not guide customer questioning. Memory cue: first understand the need, then present the product—that is a customer-focused sales presentation method.
In online class checking file name and subject code before assignment upload is an example of what?
Correct answer: C
A digital submission method is a set of steps used to upload work correctly and keep records organized. Checking the file name and subject code before uploading helps identify the student’s work, connect it with the correct subject, and reduce errors in storage or evaluation. Such checks are simple procedural controls: they explain how a particular online task should be completed rather than describing a broad business policy.
Option C is correct because the example gives a specific and repeatable procedure for submitting an assignment digitally. Advertising policy concerns promotion, dividend concerns distribution of profit, and an ownership plan concerns control or property. None of those choices describes file verification before upload. The action is therefore best understood as a digital submission method.
In expense reimbursement checking bill first then approval and then payment details is what?
Correct answer: D
A method specifies the fixed sequence of steps for performing a task. Checking the bill, obtaining approval, and then verifying payment details are sequential steps in an expense reimbursement method. A rule states what must or must not be done, whereas a method explains how the work is to be carried out in order. Exam tip: If the question asks ‘how’ and ‘in what sequence’, look for method.
In stock audit counting physically first and then matching with system quantity relates to what?
Correct answer: A
A stock audit method is a planned sequence used to check whether actual stock agrees with recorded stock. In the given case, workers first count the items physically in the store. They then compare that count with the quantity shown in the computer or inventory system. This comparison can reveal shortages, excess items, damaged goods, counting errors or incorrect entries. Following the same order each time makes the audit more reliable and easier to review. It is a practical control method for inventory records.
Option A is correct because both actions are parts of a stock-audit procedure: physical verification followed by comparison with system data. An objective would describe the desired outcome, such as accurate inventory. A sales policy concerns selling decisions, and dividend relates to distribution of profit. The question asks what the fixed checking process is connected with, so the stock audit method is the appropriate choice.
In which situation will customer complaint priority method be most useful?
Correct answer: C
The direct answer is C: a customer complaint priority method is most useful when many complaints must be separated according to seriousness. A priority method ranks work so that urgent or high-impact matters are handled before less serious ones. Staff may consider safety risk, number of affected customers, financial loss, legal importance and urgency. For example, a complaint about unsafe food should be addressed before a minor delay in a reply. Option C is correct because it describes exactly this sorting process. A is wrong because when complaints are very few and simple, special prioritisation may not be necessary. B is wrong because without customers there are no customer complaints to rank. D is wrong because a closed organisation is not actively processing complaints. Prioritisation does not mean ignoring minor complaints; it means arranging their order and giving each a suitable response. Memory cue: many complaints plus different seriousness equals priority method.
In cash refund returning money only after taking customer signature and bill number is an example of what?
Correct answer: D
The direct answer is D: cash refund method. A method describes the exact sequence or procedure for carrying out a particular task. Here, the business does not return cash immediately; it first obtains the customer’s signature and bill number, checks the transaction, and then releases the money. This is a specific operational procedure. Option A, policy, is a broad general guideline or principle, such as the rule that refunds may be given under stated conditions; it is not the detailed sequence itself. Option B, dividend, is a distribution of profit to shareholders, unrelated to a customer refund. Option C, advertising plan, concerns promotion and communication, not repayment. Option D is correct because it names the fixed refund steps. Memory cue: detailed ‘how to do’ steps are a method.
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