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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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Medium · Level 3View options
Policy
Procedure
Budget
Strategy
Medium · Level 3View options
To ensure work is completed in a prescribed sequence
To compete in the market
To set the maximum limit of expenditure
To set the long-term goals of the organisation
Medium · Level 3View options
Rule
Policy
Procedure
Objective
Medium · Level 3View options
Budget
Procedure
Rule
Method
Medium · Level 3View options
In which general direction should decision be taken
In which sequence will work happen
How much profit is to be earned
Which command is compulsory
Medium · Level 3View options
First material requisition then store issue
Entry into laboratory will not be allowed without safety permission
First order then invoice
First form then verification
Medium · Level 3View options
Programme
Budget
Policy
Procedure
Medium · Level 3View options
Policy
Procedure
Strategy
Objective
Medium · Level 3View options
Rule
Policy
Budget
Procedure
Medium · Level 3View options
First quality check then stock entry
Expense limit of rupees 7 lakh on packaging next year
First application then interview
First ticket then solution
Medium · Level 3View options
Procedure
Policy
Rule
Budget
Medium · Level 3View options
Procedure
Method
Policy
Strategy
Medium · Level 3View options
Because it applies to repeated work
Because it happens only once
Because it only states expense
Because it only states target
Medium · Level 3View options
Budget
Policy
Procedure
Rule
Medium · Level 3View options
Confusion and delay in work
Automatic achievement of target
Expense always decreasing
Rules becoming strong
Medium · Level 3View options
Programme
Procedure
Policy
Budget
Medium · Level 3View options
Value based decision direction
Numerical expense plan
Fixed and sequential work steps
Competitive market direction
Medium · Level 3View options
Procedure
Rule
Objective
Strategy
Medium · Level 3View options
Procedure is sequence of steps and programme is group of related activities
Procedure is expense amount and programme is target
Procedure is rule and programme is method
Both are only policies
Medium · Level 3View options
First order receive then packing
First verification then activation
Adopting local dealer network to enter rural market
First test then report
Medium · Level 3View options
Budget
Procedure
Rule
Method
Medium · Level 3View options
Similar work happens in similar order
A new target is made every time
Every expense increases
Every rule is removed
Medium · Level 3View options
Policy
Procedure
Budget
Objective
Medium · Level 3View options
Procedure
Policy
Programme
Rule
Medium · Level 3View options
Sequential operational tasks
Long term market competition
Expense estimation
Profit target
Question 1MediumLevel 3
In a company for customer complaint first a ticket is created then inquiry is done then solution is approved and then customer is informed. This is an example of which plan?
Correct answer: B
A procedure is a detailed, predetermined sequence used to complete a recurring task. It tells employees the order in which actions should be performed, so that similar cases are handled consistently. In the example, the complaint process has four connected stages: creating a ticket, conducting an inquiry, approving the solution and informing the customer. The order is an essential part of the plan.
The correct choice is Procedure, option B. A policy would provide broad guidance, a budget would present expected financial figures, and a strategy would describe a broad plan for achieving an important objective. None of those alternatives specifically explains a fixed operational sequence. Since the example focuses on ordered steps for complaint handling, the supplied answer is correct.
A procedure lays down the prescribed sequence of steps for performing a task, ensuring that work is carried out systematically and uniformly. Therefore, option A is correct. Setting an expenditure limit is the function of a budget, while setting long-term goals relates to objectives. Exam tip: Link a ‘fixed sequence of steps’ with a procedure.
In a company for salary process first attendance matching then deduction calculation then salary approval and then bank transfer happens. Which type of plan is this?
Correct answer: B
A procedure is a prescribed sequence of steps for completing a task. Here, attendance matching, deduction calculation, approval and bank transfer are performed in a fixed order, so it is a procedure. A rule states what must or must not be done, while a method refers to the way of performing a particular task. Exam tip: If a question describes steps in sequence, look for procedure.
Procedure gives the most correct answer to which question?
Correct answer: B
Direct answer: Option B, “In which sequence will work happen?” A procedure answers the practical question of order. It tells what step comes first, what follows, and how the task proceeds until completion. For example, a purchase procedure may say request, approval, order, receipt, and payment. Option A asks for a general direction for decisions; that is mainly answered by a policy. Option B is correct because sequence is the defining clue of a procedure. Option C asks about the target amount of profit, which belongs to an objective or plan, not a procedure. Option D asks which command is compulsory; that points to a rule. The distinction is useful: policy gives broad guidance, procedure gives ordered steps, objective gives a desired result, and rule gives a compulsory instruction. Memory cue: procedure answers “first what, then what?”
In a hotel for room booking first availability check then identity details then advance payment and then booking confirmation happens. What is this?
Correct answer: D
Checking availability, taking identity details, collecting advance payment, and confirming the booking are steps performed in a fixed sequence. A procedure is a prescribed sequence for carrying out a task. A policy gives general guidance for decision-making, whereas a procedure specifies the order in which the work is to be done. Exam tip: When a question describes fixed steps in sequence, look for procedure.
In a bank after cheque deposit first cheque acceptance then signature matching then sending for clearing and then amount credit happens. This is an example of which plan?
Correct answer: B
It is the sequential process of cheque processing. In exams identify banking sequence as procedure.
In a hospital for giving medicine first prescription check then medicine issue then dose explanation and then record entry happens. What is this?
Correct answer: D
A procedure is a planned sequence of steps used to complete a particular task. It tells people what should be done first, what should follow, and what should be done at the end. It is more detailed than a broad policy because it describes the order of activities. In this example, the hospital has a clear process for giving medicine safely and recording it.
The prescription is checked first so that the medicine and patient details can be confirmed. The medicine is then issued, the correct dose is explained, and the entry is made in the record. Since these are fixed, connected steps performed in a definite order, the correct choice is D, Procedure. A rule would usually state one instruction, while a policy would provide a general direction.
In a factory after a faulty machine is reported first complaint entry then technician allotment then inspection and then repair closure happens. Which type of plan is this?
Correct answer: A
The correct answer is Procedure because it specifies a definite sequence of steps for handling machine repair: recording the complaint, assigning a technician, inspecting the machine and closing the repair. A policy gives broad guidance for decisions, whereas a rule states what must or must not be done. Exam tip: A fixed, step-by-step sequence usually indicates a procedure.
In a library for depositing late fee first due date check then fee calculation then receipt and then account update happens. What is this?
Correct answer: A
The direct answer is Option A: this is a procedure. A procedure is an ordered series of steps used to perform a recurring operational task. The library process begins by checking the due date, then calculating the late fee, then issuing a receipt, and finally updating the account. Each step has a definite position, and the order helps ensure that the correct amount is collected and the record is accurate. Option A is correct. Option B, method, usually describes the particular way or technique of doing one activity, but the example gives a complete sequence for an administrative process; procedure is the more suitable answer. Option C, policy, would be a general rule such as ‘late fees must be collected fairly’ or ‘fees must be charged according to library rules’; it would not list the operational steps. Option D, strategy, is a broad plan for achieving an important long-term aim, not a routine fee-collection flow. The words first, then, and finally are strong clues that the statement is a procedure. Memory cue: a repeated office or service workflow written in order is usually a procedure.
On an online education platform for certificate issue first course completion check then quiz score verification then certificate generation and then email happens. What is this?
Correct answer: C
The direct answer is C, Procedure. The platform has arranged certificate issue as a fixed sequence: first it checks course completion, next it verifies the quiz score, then it generates the certificate, and finally it sends an email. Since these connected actions must happen in an order, the arrangement is a procedure. Option C is correct because it describes the operational steps for completing a service. Option A, Budget, is a numerical plan of expected receipts, expenses or resources, not a certificate workflow. Option B, Policy, is a broad guideline, such as the organisation’s general rule about eligibility, but it is not this step-by-step chain. Option D, Rule, could state one requirement, for example that a learner must pass a quiz, but it would not describe all four stages. The order also matters: a certificate should not be generated before completion and score verification. This example shows that procedures are used in digital services as well as factories and offices. Memory cue: a process that says check, verify, create and send is a procedure.
In a courier office for damaged parcel claim first photo proof then claim form then inspection and then settlement happens. Which plan does this show?
Correct answer: B
The question gives a fixed sequence of actions: photo proof, claim form, inspection and settlement. A Procedure specifies the prescribed step-by-step method for performing a task, so option B is correct. A programme is a broader set of activities for achieving an objective, while a policy provides general guidance for decisions. Exam tip: words such as ‘first’, ‘then’ and ‘after that’ usually indicate a procedure.
Which option gives the most correct identification of procedure?
Correct answer: C
A procedure is a plan that explains the order in which several related actions must be performed. Its main features are that the steps are identified in advance and that they follow a particular sequence. This helps different workers perform a task in a consistent way and reduces confusion about what should happen next. The idea is practical and action-oriented rather than merely a general statement.
Option C says “fixed and sequential work steps,” which directly expresses this meaning. A value-based decision direction is closer to a policy, because a policy guides decisions. A numerical expense plan is a budget, and a competitive market direction is a broad strategy or policy. Therefore, the correct answer is C, because only it identifies the defining structure of a procedure.
In a warehouse for separating damaged stock first damage marking then supervisor check then loss entry and then disposal approval happens. What is this?
Correct answer: A
It is the fixed order of damaged stock handling. In exams identify warehouse procedure through sequence.
In a company for asset purchase first need note then quotation comparison then approval and then purchase order happens. This is an example of what?
Correct answer: B
The stages—need note, quotation comparison, approval and purchase order—are stated in a fixed sequence for making an asset purchase. A procedure is a prescribed sequence of steps for performing a task. A rule states what must or must not be done, whereas a method is a general way of doing something. Exam tip: When a question gives an ordered set of steps, look for Procedure.
What is the effect of standardization in procedure?
Correct answer: A
The direct answer is A, Similar work happens in a similar order. Standardization means deciding and following a common approved way of doing recurring work. When a procedure is standardized, employees handling similar cases generally follow the same steps, which creates consistency, predictable quality and easier supervision. Option A is correct because it expresses uniformity of sequence. Option B, making a new target every time, concerns goal setting, not standardization of procedure. Option C, every expense increases, is not a necessary effect; standardization may sometimes reduce waste, and it does not automatically raise every cost. Option D, every rule is removed, is the opposite of standardization: standardization normally clarifies and reinforces common instructions. For example, if every reimbursement claim is checked, approved and recorded in the same order, similar cases receive similar treatment. Standardization does not mean that every unusual case can never be reviewed; it means routine cases have a common baseline. Memory cue: standard procedure means same kind of work, same basic sequence.
In a restaurant for dine in billing first table order entry then kitchen confirmation then bill generation and then payment collection happens. What is this?
Correct answer: B
The direct answer is Option B: this is a procedure. A procedure explains the ordered steps for completing a recurring task. In the restaurant example, the work starts with table order entry, continues with kitchen confirmation, then moves to bill generation, and ends with payment collection. This sequence connects the stages of dine-in billing and tells staff what must happen before the next stage. Option A, policy, would be a general rule such as ‘customers must be billed accurately’ or ‘payment should be collected according to approved rates’; it would not list the operational order. Option B is correct because the statement gives a complete, fixed workflow. Option C, budget, is a numerical plan showing expected income and expenses, such as expected sales or food costs; it is not a sequence of billing actions. Option D, objective, is the result to be achieved, such as accurate billing, quick service, or higher customer satisfaction. An objective does not explain the steps used to reach the result. The words first, then, and finally are the exam clue. Memory trick: a process flow for repeated service work is a procedure; a desired result is an objective.
In a company for customer onboarding first KYC form then identity verification then account setup and then welcome message happens. This is an example of which plan?
Correct answer: A
A procedure is used when a task has to be carried out through a stated series of actions. The sequence is important because each step prepares for, confirms, or completes the next one. In customer onboarding, the organisation needs reliable information before creating an account, and it should communicate with the new customer after the account is ready. Thus, the example describes an operating process rather than a general policy.
The KYC form is completed first, identity details are verified next, the account is then set up, and a welcome message follows. These four activities have a fixed order and together explain how onboarding is performed. Therefore, option A, Procedure, is correct. A policy would guide decisions generally, a rule would state one requirement, and a programme would normally include a broader set of activities and objectives.
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