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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 4 · Set 2 · Q32
(a) Explain the following points of importance of planning: (i) Planning provides directions (ii) Planning reduces the risk of uncertainty (iii)…
(a)
Explain the following points of importance of planning :
(i)
Planning provides directions
(ii)
Planning reduces the risk of uncertainty
(iii)
Planning reduces overlapping and wasteful activities
OR
(b)
Explain the following steps in the organising process :
(i)
Departmentalisation
(ii)
Assignment of duties
(iii)
Establishing authority and reporting relationships
Marking-scheme solution
Importance of Planning :
• (i) Planning provides directions:
Planning provides direction for action by stating in advance how
• work is to be done.
Planning ensures that the goals or objectives are clearly stated so that
they act as a guide for deciding what action should be taken and in
which direction.
• (ii) Planning reduces the risk of uncertainty:
By deciding in advance the tasks to be performed, planning shows
• the way to deal with changes and uncertain events.
Changes or events cannot be eliminated but they can be anticipated
and managerial responses to them can be developed.
• (iii) Planning reduces overlapping and wasteful activities:
Planning serves as the basis of coordinating the activities and efforts
of different divisions, departments and individuals. It helps in
• avoiding confusion and misunderstanding.
Useless and redundant activities are minimised or eliminated.
Explain the following steps in the organising process :
(i)
Departmentalisation
(ii)
Assignment of duties
(iii)
Establishing authority and reporting relationships
Steps in the Organising Process:
• (i) Departmentalisation:
The process of grouping together, activities which are similar in
• nature is called departmentalisation. It facilitates specialisation.
Departments can be created on the basis of products, territories, etc.
• (ii) Assignment of duties:
• Each of the departments is placed under the charge of an individual.
Jobs are allocated to the members of each department in accordance
to their skills and competencies.
• (iii) Establishing authority and reporting relationships:
Each individual should know who he has to take orders from and to
• whom he is accountable.
The establishment of such clear relationships helps to create a
hierarchal structure and helps in coordination amongst various
departments.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.