In a company's purchase procedure purchase order is being issued before taking quotations. What is the main procedural defect?
Correct answer: A
Correct order is most important in procedure. In exams treat reversed steps as a procedure error.
Business Studies
Procedure
प्रक्रिया
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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Hard · Level 1
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- Order of steps is wrong
- Policy is too flexible
- Budget is high
- Objective is unclear
Hard · Level 1
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- Customer loyalty will always increase
- Wrong refund and control failure
- Budget will form automatically
- Policy will end
Hard · Level 1
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- Procedure is decision principle and policy is step order
- Procedure is expense number and policy is method
- Procedure is ordered steps and policy is decision guidance
- Procedure is broad market path and policy is objective
Hard · Level 1
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- Work will always be faster
- Policy will form automatically
- Budget will reduce
- Responsibility and accountability will be unclear
Hard · Level 1
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- It will be unclear where cases should be forwarded
- Every complaint will resolve automatically
- Budget will always be saved
- Policy will become rule
Hard · Level 1
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- When office colour changes
- When the whole workflow changes to a digital system
- When objective is measurable
- When rule is strict
Hard · Level 1
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- Target is too high
- Policy is ethical
- Critical control step is placed late
- Budget is fixed
Hard · Level 1
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- Every error will end
- Work may become slow and costly
- Strategy will become stronger
- Objective will be achieved automatically
Hard · Level 1
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- Request receipt first then verification then approval
- Stock count first then variance report
- Technique of holding barcode scanner at correct angle
- Claim form first then bill attachment
Hard · Level 1
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- Approval should not happen before verification
- It is highly ethical
- It is an objective
- It is a budget
Hard · Level 1
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- Wrong customer account may be activated
- Sales target will be clear
- Budget will be exact
- Strategy will be narrow
Hard · Level 1
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- Policy is too flexible
- Budget is missing
- Risk of wrong delivery may increase
- Objective is numerical
Hard · Level 1
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- Accountability becomes clear
- Budget amount increases
- Policy becomes rigid
- Objective gets hidden
Hard · Level 1
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- Complaint logging first then investigation
- Reducing processing errors by 15 percent in three months
- Invoice verification first then approval
- Sample collection first then testing
Hard · Level 1
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- Audit conclusion may become unreliable
- Policy will become complete
- Strategy will be clear
- Budget will reduce
Hard · Level 1
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- Redundancy and inefficiency
- Objective clarity
- Policy flexibility
- Budget accuracy
Hard · Level 1
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- Procedure is activity package and programme is step sequence
- Procedure is step sequence and programme is organised package of activities
- Procedure is budget and programme is rule
- Procedure is strategy and programme is method
Hard · Level 1
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- Initial communication control is weak
- Budget is exact
- Strategy is strong
- Objective is measurable
Hard · Level 1
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- The review may become subjective or merely formal
- The procedure will automatically become more flexible
- The purpose of the policy will end
- The budget will necessarily increase
Hard · Level 1
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- Wrong refund or missed refund may occur
- Market share always rises
- Budget becomes objective
- Policy becomes strategy
Hard · Level 1
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- All approvals get stuck with one manager
- Every step is clearly assigned
- Documents are complete
- Checklist is used
Hard · Level 1
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- Delay in steps and follow-up confusion
- Objective will become more measurable
- Rule will form automatically
- Budget will disappear
Hard · Level 1
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- Unauthorized access risk
- Budget surplus risk
- Objective clarity risk
- Policy flexibility risk
Hard · Level 1
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- Removing duplicate approval and keeping one clear approval point
- Removing verification step completely
- Keeping every step secret
- Not writing responsible person
Hard · Level 1
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- Segregation of duties reduces error and fraud risk
- Procedure becomes objective
- Budget becomes hidden
- Policy ends
If product check step is skipped in a refund procedure and refund is directly approved which risk will increase?
Correct answer: B
Direct answer: Option B is correct. In a refund procedure, checking the product is a control step. It may confirm whether the item was actually purchased, whether it is eligible for return, whether it is damaged, and whether the refund amount is correct. If this step is skipped and approval is given immediately, an ineligible or incorrect refund may be paid. The control failure can also make fraud, duplicate claims, or financial loss harder to detect. Option A is wrong because customer loyalty does not always increase; unfair or careless refunds can harm the business. Option B is correct because it states both likely results: wrong refund and failure of control. Option C is wrong because skipping a check cannot automatically create a budget. Option D is wrong because omitting one step does not end the policy; it violates or weakens its implementation. Memory cue: skipped verification = higher error and control risk.
Which option gives the hard level difference between procedure and policy correctly?
Correct answer: C
Procedure states the work sequence and policy states the decision basis. In exams keep sequence and decision guide separate.
In a loan processing procedure approval authority is not clear. What will be the biggest operational problem?
Correct answer: D
A procedure should clearly state who will approve a step. In exams connect authority clarity with effective procedure.
If a complaint procedure has no escalation step what problem may occur in unresolved cases?
Correct answer: A
Escalation step helps move unresolved cases forward. In exams treat escalation as procedure control.
In which situation is it most necessary to update a procedure?
Correct answer: B
When workflow changes old steps may not remain practical. In exams connect changed workflow with procedure review.
In a sales order procedure stock check happens after invoice. Which defect is shown?
Correct answer: C
Stock check should happen before invoice to avoid wrong billing. In exams treat misplaced control step as procedure weakness.
If a procedure has too many unnecessary approvals what effect may occur?
Correct answer: B
Unnecessary approvals reduce efficiency. In exams view procedure through balance of control and speed.
Which option gives a method instead of a procedure?
Correct answer: C
The technique of holding scanner is method. In exams understand exact technique as method and step order as procedure.
A procedure says take final approval first and then verify documents. Why is this wrong?
Correct answer: A
Verification control step should come before approval. In exams treat logical sequence as procedure quality.
If identity verification step is unclear in customer onboarding procedure what is the risk?
Correct answer: A
If verification step is unclear onboarding risk increases. In exams treat unclear verification as procedure weakness.
A dispatch procedure has no address verification after packing. What weakness exists?
Correct answer: C
Address verification is a control step for dispatch accuracy. In exams treat missing check as procedure weakness.
If responsible person is written for every step in a procedure what is the main benefit?
Correct answer: A
Responsibility clarity strengthens procedure execution. In exams connect step ownership with effective procedure.
Which option gives an objective instead of a procedure?
Correct answer: B
A statement with percentage and time is an objective. In exams keep measurable result separate from procedure.
In an internal audit procedure voucher checking step is skipped before report preparation. What problem will occur?
Correct answer: A
Voucher checking is a necessary step of audit evidence. In exams understand skipping evidence step as procedure failure.
If the same data is entered twice by two different departments in a procedure what defect exists?
Correct answer: A
Duplicate steps can make procedure slow and error-prone. In exams treat redundant steps as procedure weakness.
Which option correctly separates procedure and programme?
Correct answer: B
Procedure is sequence and programme may be a set of many activities. In exams keep sequence and activity package separate.
If complainant does not get acknowledgement in grievance procedure what weakness is shown?
Correct answer: A
Acknowledgement clarifies complaint receipt. In exams treat acknowledgement as a grievance procedure step.
A procedure has a final review step but review criteria are not given. What is the main problem?
Correct answer: A
A final review is effective only when clear criteria, such as expected results, time limits, or quality standards, are specified. Without criteria, different people may judge performance on different bases, making the review subjective or merely a formality. A higher budget is not a necessary consequence. Exam tip: In a procedure, look for clear standards and responsibility in the review or control stage.
If order cancellation procedure has no payment status check step what risk exists?
Correct answer: A
Payment status check is necessary for refund accuracy. In exams treat missing financial check as procedure weakness.
In which situation is a procedure bottleneck shown?
Correct answer: A
Work stopping at one point is a bottleneck. In exams understand delay source as procedure bottleneck.
If a procedure has no time limit what problem may arise?
Correct answer: A
Time limits control procedure completion. In exams treat time-bound steps as an effective procedure feature.
If system access is given before joining in an onboarding procedure what risk exists?
Correct answer: A
System access should be given at the correct stage. In exams treat premature access as procedure control risk.
Which option is the most suitable procedure improvement?
Correct answer: A
Removing duplicate approval can improve efficiency. In exams treat simplification with control as good procedure improvement.
In a cash deposit procedure counting and deposit slip filling are done by different persons. What is the control benefit?
Correct answer: A
Involvement of different people improves internal control. In exams connect segregation with procedure control.
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