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Business Studies · 2026 · 3 marks
CBSE 2026 · Region 1 · Set 1 · Q21
‘Riya Mart’ is a company manufacturing disposable crockery. They havebeen in business for the past five years, but were not earning good profits.Concerned about this, the Chief Executive Officer (CEO), Verma, orderedan internal audit. The audit uncovered several issues like inventorypilferage, employees coming late and their performance not upto themark. To stop inventory pilferage, Verma, the CEO, introduced surprisestock checks and installed an automated inventory management systemto track stock movements. A biometric attendance system was also setupto keep a check on employees coming late. In addition to this, to motivateemployees for better performance, they were told in advance what theyare expected to do and what are their standards of performance. As aresult of these steps, the inventory pilferage reduced, employees becamemore punctual and their performance improved.(i)Identify and state the function of management performed by Verma,the Chief Executive Officer of the company.(ii)State any two points of importance of the function identified in (i)above, which are not discussed in the above para.
‘Riya Mart’ is a company manufacturing disposable crockery. They have
been in business for the past five years, but were not earning good profits.
Concerned about this, the Chief Executive Officer (CEO), Verma, ordered
an internal audit. The audit uncovered several issues like inventory
pilferage, employees coming late and their performance not upto the
mark. To stop inventory pilferage, Verma, the CEO, introduced surprise
stock checks and installed an automated inventory management system
to track stock movements. A biometric attendance system was also setup
to keep a check on employees coming late. In addition to this, to motivate
employees for better performance, they were told in advance what they
are expected to do and what are their standards of performance. As a
result of these steps, the inventory pilferage reduced, employees became
more punctual and their performance improved.
(i)
Identify and state the function of management performed by Verma,
the Chief Executive Officer of the company.
(ii)
State any two points of importance of the function identified in (i)
above, which are not discussed in the above para.
Marking-scheme solution
(i)
The function of management performed by Verma is
Controlling.
Controlling implies the measurement of accomplishment against the
standard and the correction of deviations to assure attainment of
objectives according to plans.
(ii)
Importance of controlling which are not discussed in the above
para are
• It helps in accomplishing organisational goals as it measures
progress towards the organisational goals and brings to light the
deviations, if any.
• It facilitates coordination in action as each department and
employee is governed by predetermined standards.
• It helps in judging accuracy of standards by reviewing and
revising the standards in the light of changes taking place in the
organisation and in the environment
• By ensuring that each activity is performed in accordance with
predetermined standards and norms, a manager makes efficient
use of resources
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CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.