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Subjects

Business Studies

Rule

In Class 12 Business Studies, this topic explains rules as a type of plan used to guide behaviour and decision-making within an organisation. Students learn that a rule clearly states what must or must not be done, helping maintain discipline, consistency and order while implementing a plan. The topic also helps distinguish rules from policies, procedures and methods, and understand their importance and limitations in business planning through practical examples.

Hard · Level 1 · 25 questions

Practice questions

01A company made a rule that no employee will send customer data to personal email. Which managerial concern does this rule most directly address?

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Answer and explanation

02If too many exceptions are allowed in a rule, what will be the biggest effect?

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03In a factory, closing the safety guard before starting a machine is compulsory. Why is it a rule and not a method?

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04A manager applies the same rule differently to different employees. Which objective of the rule will be most affected?

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05Which statement is most accurate regarding rule and policy?

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06A company says a customer complaint will be registered within 48 hours but resolution time will depend on the situation. What is the 48 hour part?

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07If a rule is only written but not communicated to employees, what is the main weakness?

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08In which situation can making a rule reduce employee empowerment?

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09A rule says cash payments will be made only after two authorised signatures. What is its major control benefit?

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10When will rigidity of a rule be considered appropriate?

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11Which is the best clue to distinguish a rule from a procedure?

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12If a new rule conflicts with an old rule, what should be done first?

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13A company says sales staff may give discount but maximum limit will be 5 percent. What type is the limit part?

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14Which statement shows incorrect use of a rule?

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15What should be considered while deciding penalty for violation of a rule?

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16Which example correctly explains the difference between rule and objective?

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17If a rule uses vague words like at a reasonable time, what is the most correct criticism at hard level?

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18A bank has a rule that passwords will not be shared with anyone. Which risk does this rule reduce?

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19Why is a rule considered a standing plan?

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20A company made a rule that the employee who registers a complaint cannot close the same complaint. What is the purpose?

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21Which option gives correct analysis of rule and method?

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22If violations increase even after making a rule, what should a manager check first?

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23What is a possible drawback of writing a rule in unnecessary excessive detail?

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24In which case would a policy be more suitable than a rule?

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25Which statement shows the legal compliance role of a rule?

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