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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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Medium · Level 2View options
First application, then verification, and finally approval
Moving the brush in even strokes to apply polish on wood
First preparing an invoice and then receiving payment
First receiving an order and then dispatching goods
Medium · Level 2View options
Policy
Procedure
Rule
Budget
Medium · Level 2View options
First goods checking then entry
Suitable solution will be chosen after seeing situation in customer cases
No entry without permission
First form then approval
Medium · Level 2View options
Confusion and errors in work may increase
Target will be achieved automatically
Expense will always be zero
Rule will not be needed
Medium · Level 2View options
Procedure
Budget
Policy
Strategy
Medium · Level 2View options
Procedure
Policy
Objective
Budget
Medium · Level 2View options
First submit the request, then obtain approval, and finally make payment
Customer satisfaction must reach 90 percent next year
First receive the call, then create a ticket
First record the stock entry, then place the goods on the shelf
Medium · Level 2View options
In repeatedly performed operational tasks
Only in long term competitive direction
Only in expense estimation
Only in target setting
Medium · Level 2View options
Procedure
Policy
Rule
Method
Medium · Level 2View options
First signature then seal then dispatch
Priority to reliable and timely suppliers in purchase
First loading then transport slip
First form check then approval
Medium · Level 2View options
Programme
Method
Procedure
Budget
Medium · Level 2View options
They know the fixed order of work
They forget targets
All expenses increase
Every rule is removed
Medium · Level 2View options
First check then approval is procedure and no payment without approval is rule
First check then approval is rule and no payment is policy
Both are budgets
Both are strategies
Medium · Level 2View options
Policy
Procedure
Budget
Objective
Medium · Level 2View options
Sequence words such as first, then and after that
Value words such as respect and fairness
Target words such as percentage and deadline
Budget words such as rupees and spending limit
Medium · Level 2View options
Procedure
Budget
Policy
Rule
Medium · Level 2View options
Procedure
Policy
Method
Budget
Medium · Level 2View options
First registration then verification then certificate issue
Group of poster speech inspection and report activities in cleanliness week
First bill then approval
First order then invoice
Medium · Level 2View options
Similar work is done in similar way and order
A new way is made every time
All targets are removed
Expense increases automatically
Medium · Level 2View options
It is a plan of fixed and sequential steps to complete a work
It is general guidance for decisions
It is direction of market competition
It is a numerical plan of expense
Medium · Level 2View options
Procedure
Policy
Rule
Budget
Medium · Level 2View options
First form submission then verification then approval
First stock check then invoice
Fairness and empathy will be maintained in customer complaints
First packing then dispatch
Medium · Level 2View options
Budget
Procedure
Method
Rule
Medium · Level 2View options
First request then approval then issue
First attendance check then salary processing
Overtime will not happen without supervisor permission
First sample collection then testing
Medium · Level 2View options
Policy
Budget
Procedure
Objective
Question 1MediumLevel 2
Which option shows method rather than procedure?
Correct answer: B
A method is a prescribed way or technique for performing a particular task. Moving a brush in even strokes describes how to apply polish to wood, so it is a method. In contrast, application–verification–approval lists a sequence of steps and is therefore a procedure. Exam tip: identify a method from the technique of doing one task, while a procedure shows an ordered series of steps.
In a customer service centre after a call arrives first ticket is created then problem is recorded then it is sent to solution team. What is this?
Correct answer: B
A procedure is a prescribed sequence of steps for performing a task. Here, receiving the call, creating a ticket, recording the problem and forwarding it to the solution team are carried out in a fixed order; therefore, it is a procedure. A rule states what is compulsory or prohibited, but it does not describe the complete step-by-step process. Exam tip: A fixed sequence of actions usually indicates a procedure.
Which statement is policy rather than procedure or rule?
Correct answer: B
The direct answer is B: “A suitable solution will be chosen after seeing the situation in customer cases.” A policy is a broad guide for making decisions. It does not prescribe one fixed sequence or an absolute command; it gives room for judgement according to circumstances. Here, the employee considers the situation and then chooses an appropriate solution, so the statement guides decisions generally. Option A is a procedure because it gives an ordered sequence: first check the goods and then make the entry. Option B is correct because it gives general direction while allowing discretion. Option C is a rule because it is a definite command: entry is not allowed without permission. Option D is also a procedure because it gives fixed steps: first complete the form and then obtain approval. A useful exam cue is this: “first, then” usually indicates procedure, an unconditional “must or must not” indicates a rule, and situation-based guidance usually indicates policy.
What problem may arise if the order of steps in a procedure is changed?
Correct answer: A
Direct answer: Option A, confusion and errors in work may increase. A procedure is designed to make connected tasks happen in a planned order. Some steps depend on earlier steps: for example, goods should be checked before they are recorded, or a payment may need approval before it is released. If the order changes, information may be missing, work may be repeated, the wrong output may be produced, or an important control may be skipped. Therefore option A is correct, though the word ‘may’ is important because the exact effect depends on the task. Option B is wrong because changing a procedure cannot automatically complete a target; objectives still require proper work. Option C is wrong because changing step order does not make expenses zero. Option D is wrong because a procedure and a rule are different planning tools; changing steps does not remove the need for rules. The reasoning is: fixed order supports coordination and accuracy → disorder can cause mistakes and delay. Memory cue: protect the sequence to protect the result.
In a courier company after parcel pickup first barcode scan then sorting then route assignment and then dispatch happens. What is this?
Correct answer: A
The direct answer is A: procedure. A procedure explains the exact order in which a recurring task must be performed. Here, parcel pickup is followed by barcode scanning, sorting, route assignment and dispatch. Each step comes after the previous one and helps move the parcel through the delivery system. Therefore, A is correct. B, a policy, is a broad guideline for decisions, such as a policy about delivery charges or returns; it is not this step-by-step sequence. C, an objective, is a desired result, such as delivering parcels quickly, not the method used to reach it. D, a budget, is a financial plan showing expected income and expenditure, not work stages. Exam cue: when an option gives a fixed “first-next-then-final” work order, identify it as a procedure.
Which statement is an incorrect example of procedure because it states only a target?
Correct answer: B
A procedure specifies the sequence of steps to be followed while performing a task. Option B states the desired result—reaching 90% customer satisfaction next year—but gives no steps for achieving it. Therefore, it is an objective or target, not a procedure. Options A, C, and D each show an ordered sequence of actions. Exam tip: a target tells what is to be achieved, whereas a procedure tells how and in what order it will be done.
A company says that after purchase requisition first department approval then vendor quotation then purchase order will happen. What is this?
Correct answer: A
The direct answer is A, Procedure. A procedure lays down the sequence in which connected activities must be completed. In this case, the purchase requisition comes first; then the department gives approval; after that quotations are obtained from vendors; finally the purchase order is issued. This is a complete purchasing workflow, not merely one rule or one technique. Option A is correct because it presents several linked steps in a fixed order. Option B, Policy, gives broad guidance, such as the organisation’s general purchasing principle, but it does not necessarily state the exact sequence. Option C, Rule, is a specific instruction about what must or must not be done, often without describing a chain of stages. Option D, Method, normally refers to the manner of performing a particular activity, whereas this question describes the entire procurement process. The clue is the sequence “first, then, then, finally.” A procedure makes work predictable, coordinated and easier to follow. Memory cue: a purchasing checklist arranged from beginning to end is a procedure.
Which option gives only policy instead of procedure?
Correct answer: B
The direct answer is Option B: it gives a policy rather than a procedure. A policy is a general guide for making decisions. It states the preference or principle to follow but does not prescribe a complete sequence of operational steps. Option B says that reliable suppliers who provide on time should receive priority in purchasing. This guides the selection of suppliers, so it is a policy. Option A is a procedure because it gives the exact order: first signature, then seal, then dispatch. Option C is also a procedure because it says loading must come first and the transport slip next. Option D is a procedure because it fixes the order of form checking followed by approval. Therefore B is the only option that gives a general purchasing guideline instead of step-by-step instructions. Do not confuse a policy with a procedure: ‘prefer dependable suppliers’ tells the decision-maker what preference to apply, while ‘check documents, compare quotations, approve purchase, and place order’ would be a procedure. Memory cue: preference or principle means policy; first-next-final sequence means procedure.
In a restaurant after an online order first kitchen ticket then cooking then packing and then delivery handover happens. This is an example of what?
Correct answer: C
A procedure specifies the fixed sequence of steps to be followed for completing a task. Here, kitchen ticket, cooking, packing and delivery handover occur in an ordered sequence after receiving an online order, so it is a procedure. A method refers to a general way of doing work, whereas a procedure states the step-by-step order. Exam tip: If a question lists successive operational steps, look for procedure.
A procedure states the ordered steps for performing a task. Therefore, words such as ‘first, then, and after that’ clearly indicate a procedure. Percentages and deadlines relate to targets or objectives, while rupees and spending limits relate to a budget. Exam tip: Link words showing sequence with a procedure.
In a company for employee onboarding first documents are collected then system account then orientation and then team assignment happens. This is an example of which plan?
Correct answer: A
The direct answer is A: procedure. Employee onboarding here has a fixed sequence: collect documents, create the system account, conduct orientation and assign the employee to a team. This sequence tells staff exactly what action comes first and what follows, so the work can be completed consistently. A is correct because a procedure is an ordered set of steps for carrying out a task. B, a budget, would show money planned for onboarding, not the stages. C, a policy, would give a general guideline, such as equal treatment of new employees, but would not necessarily list these steps. D, a rule, is a specific instruction or requirement, such as submitting identity proof; it is not the complete sequence. Memory cue: a process written in time order is a procedure.
In a bank for opening an account first form submission then identity verification then initial deposit and then account activation happens. What is this?
Correct answer: A
The correct answer is Procedure because it specifies the fixed, sequential steps for opening an account: submitting the form, verifying identity, making the initial deposit, and activating the account. A policy provides broad guidelines for decisions, whereas a procedure states how a task must be carried out step by step. Exam tip: A question describing a prescribed sequence of actions usually refers to a procedure.
Which option shows only programme rather than procedure?
Correct answer: B
A programme is a comprehensive plan that brings together several activities to achieve a particular purpose within a broad situation or period. It may mention what kinds of activities will be undertaken, but it does not have to give the exact sequence for carrying them out. A procedure, in contrast, specifies ordered steps that are normally followed one after another.
Option B is correct because a cleanliness week containing posters, speeches, inspection, and reporting is a collection of related activities. It describes the activity package rather than a single compulsory sequence. The other options—registration followed by verification and certificate issue, bill followed by approval, and order followed by invoice—focus on one step-by-step order. They therefore illustrate procedures, not only a programme.
Which statement gives an exam useful definition of procedure?
Correct answer: A
Direct answer: Option A, a plan of fixed and sequential steps to complete a work. A procedure is a practical plan for carrying out a particular activity. It identifies the actions required and places them in the order in which they should occur. For example, an office procedure may require receiving a request, checking it, obtaining approval and recording the result. Option A is correct because it contains both ‘fixed’ and ‘sequential steps’ and connects them with completion of work. Option B is wrong because general guidance for decisions describes a policy. A policy may allow judgement and need not give a complete sequence. Option C is wrong because direction of market competition is a strategy, a broad approach for reaching major business goals. Option D is wrong because a numerical plan of expense is a budget, which deals with amounts of money and a period. The exam test is simple: if the statement answers ‘what step comes first, next and last?’, it defines procedure. Memory cue: procedure means an ordered work plan.
In a company for travel reimbursement first travel proof submission then manager approval then accounts verification and then payment happens. Which type of plan is this?
Correct answer: A
A procedure specifies the fixed sequence of steps to be followed while performing a task. Here, travel proof submission, manager approval, accounts verification and payment are arranged in order; therefore, it is a procedure. A policy gives broad guidance for decisions, whereas a rule states what must or must not be done. Exam tip: When a question lists step-by-step actions, the answer is usually procedure.
In a factory for machine maintenance first complaint entry then technician assignment then inspection and then repair report is prepared. What is this?
Correct answer: B
It is a sequential process of maintenance work. In exams identify repair process steps as procedure.
In a school for issuing report card first marks entry then teacher verification then principal approval and then distribution happens. This is an example of what?
Correct answer: C
It is the sequence of steps for issuing report card. In exams treat school process sequence as procedure.
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