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In Class 12 Business Studies, this topic explains procedure as a type of plan within the chapter Planning. Students learn that a procedure is a predetermined sequence of steps arranged in the order in which an activity should be performed. It provides clear guidance for routine work, promotes consistency, reduces confusion and supports coordination. The topic also helps students distinguish procedures from policies, methods, rules, programmes and budgets, and understand their practical role in business decision-making.
TOPIC PRACTICE
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Up to 25 questions from this page. Select your focus, then start.
25 questions
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Easy · Level 1View options
Opposite to the goal
Suitable to the goal
Unthoughtful
Completely unrelated
Easy · Level 1View options
Method
Procedure
Objective
Budget
Easy · Level 1View options
Rule
Procedure
Objective
Budget
Easy · Level 1View options
Procedure
Method
Budget
Objective
Easy · Level 1View options
Order of steps for doing work
General guidance for decision
Number of expense
Long-term competitive direction
Easy · Level 1View options
Policy
Procedure
Rule
Budget
Easy · Level 1View options
कार्य का उद्देश्य
कार्य पर होने वाला कुल व्यय
कार्य करने का क्रम
प्रवेश के लिए उपयुक्त बाजार
Easy · Level 1View options
Single-use plan
Only budget
Only strategy
Standing plan
Easy · Level 1View options
Check bill first then take approval then make payment
Give importance to customer interest
Entry without pass prohibited
Increase sales in one year
Easy · Level 1View options
Procedure is decision guidance and policy is step order
Procedure is order of steps and policy is decision guidance
Procedure is budget and policy is target
Procedure is method and policy is machine
Easy · Level 1View options
Take token first then go to counter
Fill form first then submit
No entry without identity card
Check first then prepare report
Easy · Level 1View options
Registering the complaint
Changing discount policy
Making market strategy
Setting yearly objective
Easy · Level 1View options
Using a different way every time
Getting a fixed order of work
Decisions becoming fully arbitrary
Goals ending
Easy · Level 1View options
Budget
Rule
Procedure
Objective
Easy · Level 1View options
Confusion about the sequence of work
Number of customers
Available resources
Organisational goals
Easy · Level 1View options
Procedure is order of steps and method is technique of doing a step
Procedure is technique and method is goal
Procedure is rule and method is budget
Procedure is policy and method is strategy
Easy · Level 1View options
Check the goods first and then keep them in the store.
Take the customer’s call first and then create a ticket.
A special technique for cleaning a machine.
Prepare the invoice first and then issue the receipt.
Easy · Level 1View options
Employee interest will be valued
Apply first then take manager approval then record in human resource
Reduce absenteeism in six months
No entry without identity card
Easy · Level 1View options
For repeated work
Only for one-time function
Only for long-term competition
Only for expense estimate
Easy · Level 1View options
Merit will be valued
Registration first then document check then fee payment
Fairness will be maintained in admission
Increase admission target
Easy · Level 1View options
First, then
Priority
Prohibited
Target
Easy · Level 1View options
Policy
Procedure
Objective
Strategy
Easy · Level 1View options
Give importance to customer convenience
Receive order first then check stock then make invoice
Increase sales next year
No entry without pass
Easy · Level 1View options
Regularity of work
Complete arbitrariness
New way every time
Absence of decisions
Easy · Level 1View options
Procedure is order of steps and rule is strict command
Procedure is strict command and rule is decision guide
Procedure is budget and rule is method
Procedure is objective and rule is strategy
Question 1EasyLevel 1
How should the method selected in planning be?
Correct answer: B
A method in planning is the chosen way of accomplishing an objective. It should therefore be appropriate to the goal, available resources, time and operating conditions. A method that conflicts with the objective cannot help the organisation achieve it, while an unthoughtful or unrelated method lacks a rational connection with the desired result. Option B is correct because effective planning requires a logical fit between the end and the means selected to reach it. For example, a quality-improvement goal needs a method focused on standards and control, not a procedure unrelated to quality. The suitability of means is central to sound planning.
If a manager says on receiving a complaint first check the record then talk to the customer what is it?
Correct answer: B
The governing concept is that a procedure lays down a sequence of steps to be followed while carrying out an activity. In this case, the manager specifies two ordered actions: first check the relevant record and then speak with the customer. Because both the steps and their order are stated, option B, Procedure, is correct. A method generally describes the particular technique used in performing one task, but it does not necessarily present a complete ordered series. An objective states the desired result, such as resolving complaints quickly, and a budget gives numerical estimates of resources or expenditure. The emphasis here is clearly on an ordered process.
If on losing goods one must first inform the security room and then fill a report what is it?
Correct answer: B
The correct answer is B, Procedure. A procedure is a planned sequence of connected steps that explains how a recurring activity or situation should be handled. The instruction has two ordered stages: first inform the security room and then complete a report. The sequence matters, so this is more than a general statement or a single prohibition. A rule might say that lost goods must be reported, but it would not necessarily explain the ordered steps. An objective states the result to be achieved, and a budget records expected figures such as costs or quantities. Because the example specifies what must happen first and what must happen next, it clearly represents a procedure.
Opening the portal, filling details and receiving a ticket number to register an online complaint is what?
Correct answer: A
The correct answer is Procedure. A procedure is a set of logically ordered steps that explains how a recurring activity should be completed. In this case, the user first opens the portal, then fills in the required details and finally receives a ticket number. The sequence matters because changing the order could prevent successful registration. A method is the general technique for performing a task, but the question specifically lists successive stages. A budget concerns planned financial figures, while an objective states the intended result, such as reducing complaint time. Since the statement describes an ordered flow for completing online complaint registration, it is a procedure.
If a work says first take application then check and then approve what is it?
Correct answer: B
Taking an application, checking it and then approving it are fixed steps in a sequence. A procedure is the prescribed sequence of steps for carrying out a task, so option B is correct. A policy gives broad guidance, whereas a rule states what must or must not be done. Exam tip: words such as ‘first’, ‘then’ and ‘after that’ usually indicate a procedure.
A procedure specifies the fixed sequence of steps required to perform a task. Therefore, it clarifies the order in which work is to be done. The purpose of work relates to objectives, while total expenditure relates to a budget. Exam tip: If a question asks what should be done first and next, it points to a procedure.
Direct answer: Option D, a standing plan. A procedure is an organised sequence of steps for performing a task. When the same kind of work occurs repeatedly, the procedure can be used again and again. In business studies, such repeatedly applicable plans are called standing plans. Therefore option D is correct. Option A is wrong because a single-use plan is prepared for one particular, non-repetitive situation, such as a special event or one-time project. A procedure normally supports recurring activities. Option B is wrong because a budget is a numerical financial plan, not the general category of every procedure. Option C is wrong because a strategy is a broad plan for dealing with competition or achieving major goals; it is not the same as a step sequence. A procedure may be written as step 1, step 2 and step 3, and employees follow it whenever the task returns. Memory cue: repeated work plus fixed steps means procedure as a standing plan.
Direct answer: Option B, employees get a fixed order of work. A procedure is a sequence of steps established for performing a particular task. It tells employees what should be done first, next and later, so they need not invent a new process each time. Step by step: a task is identified; management arranges its required activities in an order; employees follow that sequence; work becomes more systematic, coordinated and easier to check. Option A is wrong because using a different method every time is the opposite of a standard procedure and can cause confusion. Option B is correct because a fixed work sequence is the basic benefit of a procedure. Option C is wrong because procedures reduce arbitrary action by giving steps; they do not make decisions fully arbitrary. Option D is wrong because procedures help employees work toward organisational goals rather than ending those goals. A procedure may allow limited judgement where circumstances require it, but its normal purpose is orderly action. Memory cue: policy gives broad direction; procedure gives the step-by-step route.
A procedure lays down a fixed sequence of steps for performing a task. It makes clear what should be done first and what should follow, thereby reducing confusion about the order of work. Reducing customers, resources, or organisational goals is not the purpose of a procedure. Exam tip: link procedures with uniformity and clarity in work sequence.
Which option is an example of a method, not a procedure?
Correct answer: C
Correct answer: C. A method is the particular way or technique used to perform one task. A procedure, in contrast, is a sequence of steps arranged in a definite order for completing a recurring activity. “A special technique for cleaning a machine” describes how the task is performed, so it is a method. Option A gives an order of two actions: checking goods and then storing them; that is a procedure. Option B also gives a sequence—answering the call followed by creating a ticket—so it is a procedure. Option D similarly fixes the order of preparing an invoice and giving a receipt. Thus C is the only option focused on a technique rather than on a series of ordered steps. Memory cue: method means “how”; procedure means “which step comes first, next, and later.”
The direct answer is option A: a procedure is made for repeated work. A procedure is a planned sequence of steps that tells employees how to perform a recurring task. For example, purchasing office material may require a request, approval, quotation, order and record entry each time. Because the steps are repeated, writing them down saves time, reduces confusion and promotes uniform performance. Option A is correct because routine, recurring activities need an orderly method. Option B is wrong because a one-time function normally needs a special plan or programme, not a regular procedure. Option C is wrong because long-term competition is a strategic concern, whereas a procedure deals with the steps of doing work. Option D is wrong because an expense estimate is a budget or financial plan, not necessarily a procedure. A procedure is more detailed and action-oriented than a broad policy. Memory cue: policy gives a general direction; procedure gives repeated steps in order.
‘First, then’ indicates the sequence and steps in which work is to be performed, so it is the clearest clue of a procedure. A procedure states the order for carrying out a task. ‘Priority’ indicates importance, not the sequence of steps. Exam tip: words such as first, next, then, and finally usually signal a procedure or sequence of steps.
If steps of a work are changed which plan will be affected most?
Correct answer: B
The direct answer is Option B, procedure. A procedure is a standing plan made up of connected steps arranged in a particular order. It tells an employee how to carry out recurring work. If the steps are changed, skipped, or rearranged, the procedure itself is affected because its identity depends on that sequence. Option A, policy, is a broad guideline for decisions; changing work steps does not directly change the general policy. Option B, procedure, is correct because the question specifically changes the order or content of operational steps. Option C, objective, states the desired result, such as increasing sales or reducing delay. The steps may change while the objective remains the same. Option D, strategy, is a broad plan for dealing with an important situation or competition; it is not simply the detailed order of routine steps. For example, ‘receive form, verify it, approve it, and record it’ is a procedure. If verification is moved after approval, the procedure has changed. Memory cue: changing the destination affects the objective, but changing the route of routine work affects the procedure.
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