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Business Studies · 2026 · 4 marks
CBSE 2026 · Region 2 · Set 1 · Q27
Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged food products. It’s operations are divided into five main departments –…
Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged
food products. It’s operations are divided into five main departments –
Production, Marketing, Finance, Human Resources and Research and
Development. Each department has its own head and a team that focuses
only on the work related to their department. This promotes efficiency in
utilization of manpower as employees perform similar tasks within a
department and are able to improve performance. This also helps in
increasing managerial and operational efficiency and results in increased
profit.
Since each department handles a narrow range of tasks and focus is
on a limited range of skills, it is easier to train new employees.
(i)
Identify the organization structure followed by Fresh Foods Pvt. Ltd.
(ii)
Also state three advantages of the structure identified in (i) above
not discussed in the given case.
Marking-scheme solution
(i)
Functional structure
(ii)
Advantages of Functional structure not discussed in the given case are:
§ It promotes control and coordination within a department because of similarity in
the tasks being performed.
§ It leads to minimal duplication of effort which results in economies of scale and this
lowers cost.
§ It ensures that different functions get due attention.
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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.