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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.
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Easy · Level 3View options
Order of work steps
Market positioning
Annual profit target
Only ethical principle
Easy · Level 3View options
Verify payment first then approve order
Log complaint first then resolve
Choosing distribution direction to enter rural market
Submit form first then check
Easy · Level 3View options
Everyone can follow the same steps
All decisions will be without reason
All budgets will end
Every work will be different
Easy · Level 3View options
Stating order of work steps bringing clarity and standardising repeated work
Only guiding decision
Writing amount of expense
Giving long-term market direction
Easy · Level 3View options
Work steps
Expense amount
Goal result
Market direction
Easy · Level 3View options
Policy
Procedure
Rule
Budget
Easy · Level 3View options
To make decision fully free
To make work systematic
To make expense a target
To enter market
Easy · Level 3View options
Value customer interest
Entry without pass prohibited
Make receipt first then record payment
Increase sales in three months
Easy · Level 3View options
In repeated work.
Only in a one-time function.
Only in market strategy.
Only in a profit target.
Easy · Level 3View options
Procedure states steps and policy guides decision
Procedure is budget and policy is target
Procedure is strategy and policy is amount
Procedure is rule and policy is technique
Easy · Level 3View options
Objective
Budget
Procedure
Strategy
Easy · Level 3View options
Attendance check first then salary calculation then payment
Value employee welfare
Reduce salary cost
No entry without pass
Easy · Level 3View options
Receive goods first then inspect
Make invoice first then dispatch
Special technique of applying machine oil
Submit form first then verify
Easy · Level 3View options
Every person can follow same steps
Every decision will be without reason
Budget will increase automatically
Objective will end
Easy · Level 3View options
Keep transparency in admission
Registration first then document check then fee deposit
Check merit in scholarship
Keep admission target 500
Easy · Level 3View options
Work flow may get disturbed
All costs will reduce
Every objective will be achieved
Market share will increase
Easy · Level 3View options
Value customer privacy
Take form first then verify identity then activate account
Reduce customer complaints by 20 percent
No entry without identity
Easy · Level 3View options
Policy
Rule
Budget
Objective
Easy · Level 3View options
Procedure states steps and budget states resources in numbers
Procedure states numbers and budget states steps
Procedure is rule and budget is method
Procedure is strategy and budget is policy
Easy · Level 3View options
Every step can be checked
Every rule can be removed
Every target can be changed
Every budget can be hidden
Easy · Level 3View options
Give priority to safety
Reduce accidents by 10 percent
Note incident first then inform supervisor then send report
No entry without gloves
Easy · Level 3View options
Take order first then check stock
Log complaint first then resolve
Reduce returns by 15 percent in three months
Verify bill first then approve
Easy · Level 3View options
First, then, later
Strictly prohibited
Will be given importance
Achieving the target
Easy · Level 3View options
Give priority to quality
Take raw material requisition first then make issue slip then give material
Reduce defects
No entry without helmet
Easy · Level 3View options
Keep machines safe
Log request first then assign technician then close repair
Reduce maintenance cost
No entry without safety shoe
Question 1EasyLevel 3
What must be fixed in procedure?
Correct answer: A
The direct answer is Option A: the order of work steps must be fixed in a procedure. A procedure is a detailed plan for performing a recurring activity. It tells us what should be done first, what should follow, and what should happen later. The exact order helps different employees perform the work consistently and reduces confusion. Option A is correct because fixed step order is the essential feature being tested. Option B, market positioning, describes how a business wants customers to view its product compared with competitors. It is a marketing idea, not a procedure. Option C, annual profit target, is a numerical or result-oriented objective for a year; it does not explain the steps of work. Option D, only an ethical principle, is a value or policy such as honesty or fairness. It may guide behaviour, but it does not provide an operational sequence. Thus, a statement such as ‘check the form, verify documents, obtain approval, and issue the receipt’ is a procedure because each step has a place. Exam cue: when you see words such as first, next, then, and finally, look for procedure.
Writing a complaint first then investigating and then giving solution is an example of what?
Correct answer: B
The direct answer is B: procedure. Complaint handling is described through three ordered actions: first writing the complaint, then investigating it, and finally giving a solution. This sequence guides employees and makes the response systematic rather than random. B is correct because a procedure is a step-by-step method for completing a task. A, a policy, is a broad guideline, for example a policy that every complaint must be treated fairly; it does not necessarily state the exact order. C, a rule, is a specific requirement, such as keeping complaint records, not the whole sequence. D, a budget, concerns planned income and expenditure and has no connection with these service steps. Exam cue: “first, then, finally” is a strong clue for procedure.
The direct answer is B, To make work systematic. A procedure is designed to organise activities into a logical order so that people know what to do, when to do it and what step follows. Therefore its main purpose is systematic work. Option B is correct because a fixed sequence reduces confusion, duplication and unnecessary delay. Option A, to make decision fully free, is the opposite of the usual purpose: a procedure provides guidance and limits random choices in routine work. Option C, to make expense a target, describes neither the essential purpose nor the meaning of a procedure; financial targets may belong to budgets. Option D, to enter market, is a business objective or strategic activity, not the purpose of arranging operating steps. For example, checking a form, approving it and recording it in order helps everyone perform the task consistently. A procedure does not remove all judgement in every situation, but it gives a reliable framework for recurring work. Memory cue: procedure brings order to action, not freedom from all guidance.
For what type of work is a procedure generally useful?
Correct answer: A
Correct answer: A. A procedure is a fixed or predetermined sequence of actions used to complete a task. It is especially useful when the task occurs repeatedly because employees can follow the same order each time. For example, an organisation may prescribe steps for receiving an order, checking the details, preparing the invoice and dispatching the goods. Option A is correct because repeated work benefits from consistency and an established sequence. Option B is incorrect: a one-time function may need planning, but it is not the usual purpose of a recurring procedure. Option C is incorrect because market strategy is a broad plan for dealing with competition and the business environment, not merely a sequence of routine steps. Option D is incorrect because a profit target is an objective, not a process. Memory cue: a procedure is a “repeatable route” from the beginning of a task to its completion.
If in an office a visitor first fills register then takes pass and then enters what is this?
Correct answer: C
Filling the register, collecting a pass and then entering are fixed steps performed in a sequence for visitor entry. A procedure specifies the sequence of steps for carrying out a task. An objective states what is to be achieved, while a budget estimates income or expenditure, so neither fits here. Exam tip: When a question describes ordered steps, look for procedure.
What is the benefit if procedure is in written form?
Correct answer: A
The direct answer is A: “Every person can follow the same steps.” A procedure is an ordered set of steps used to complete a task. When those steps are written down, employees do not have to depend only on memory or personal interpretation. They can read the instructions and perform the work in the same order. This creates standardisation, reduces confusion and helps maintain consistency. Option A is correct because written instructions make similar work more uniform for different people. Option B is wrong because a written procedure does not remove the need for reasons; it simply explains how work should be performed. Option C is wrong because writing a procedure cannot automatically increase a budget. A budget depends on financial planning and available resources. Option D is wrong because an objective does not end when a procedure is written; the procedure helps people achieve the objective. The exam cue is: written steps usually mean uniformity, consistency and standardisation—not automatic money or automatic success.
Which clue is usually found in the language of procedure?
Correct answer: A
A procedure states the ordered steps for carrying out a task. Therefore, words such as ‘first, then, later’ indicate the sequence of actions and are typical of procedure language. Phrases such as ‘strictly prohibited’ indicate a rule or prohibition, not a procedure. Exam tip: Link sequence words and step-by-step action to procedures.
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