CBSE-CLASS-XII SERIES
Business-studies

Directing

42 previous year questions.

Volume: 42 Ques
Yield: High

High-Yield Trend

8
2026
19
2025
15
2024

Chapter Questions
42 MCQs

01
PYQ 2024
medium
business-studies ID: cbse-cla
After studying Entrepreneurship in Class XII, Neel completed a baking course and started a bakery, 'Cakes and Bakes'. He set a target of earning a modest 10% return on investment in the first year. As he was supplying healthy bakery products, the demand kept increasing. 'Cakes and Bakes' became a famous bakery in a year. He now wanted to develop a plan to define the direction and scope of 'Cakes and Bakes' for the long run. He made a marketing plan to decide if he could charge higher price to improve his return on investment, how to advertise the products, etc.
Quoting lines from the above paragraph, identify and explain two types of plans discussed in the above case.
02
PYQ 2024
medium
business-studies ID: cbse-cla
Which of the following is NOT a feature of Directing function of management?
1
Directing initiates Action.
2
Directing takes place at every level of management.
3
Directing ensures that activities are performed as per plans.
4
Directing flows from top to bottom.
03
PYQ 2024
medium
business-studies ID: cbse-cla
Sushant was an able Project Manager at 'Keiro Ltd.' Sushant's Head, Naveen handed over a new project to Sushant. Sushant already had enough work in hand. So, Sushant decided to divide the work assigned to him, among three of his subordinates. He himself kept that part of the work which he could perform effectively and got his subordinates to help him with the remaining tasks. The project got completed well in time because of this.
The concept of management used by Sushant to complete the project was:
1
Delegation
2
Decentralization
3
Accountability
4
Authority
04
PYQ 2024
medium
business-studies ID: cbse-cla
From the following, choose the incorrect statement about the importance of 'Directing' function of management:
1
Directing helps to initiate action by people in the organization towards attainment of desired objectives.
2
Directing integrates employees' efforts in the organization in such a way that every individual effort contributes to the organization's performance.
3
Directing facilitates introduction of needed changes in the organization.
4
Directing helps in estimating manpower requirements for the organization.
05
PYQ 2024
medium
business-studies ID: cbse-cla
Akash Mehra is the Marketing Manager of 'Kedanta Enterprises'. He gives orders and expects his subordinates to obey those orders. Communication is only one-way with the subordinates only acting according to the command given by him.
Identify the leadership style of Akash Mehra:
1
Authoritative
2
Participative
3
Free-rein
4
Pragmatic
06
PYQ 2024
medium
business-studies ID: cbse-cla
Explain any four points of importance of the 'Directing' function of management.
07
PYQ 2024
medium
business-studies ID: cbse-cla
For taking the company out of losses, Ravi Kumar took over as the Managing Director of the struggling ‘Vova Watch Company’ in January 2020. As soon as he joined, he tried to find out the reason for the company not doing well. He found that the employees were not involved in decision-making and they had to just follow orders, resulting in low morale of employees. Recognising the need for change, Ravi Kumar started on a journey to bring back the enthusiasm and motivation of the employees. He initiated open dialogues and encouraged them to actively participate in decision-making. Together, they developed action plans to address the company’s challenges regarding outdated designs and inefficient production processes etc. As time passed, ‘Vova Watch Company’ transformed from a struggling enterprise to a profit-making enterprise. Identify the leadership style of Ravi Kumar:
1
Autocratic leadership style
2
Democratic leadership style
3
Free-rein leadership style
4
Both (A) and (B)
08
PYQ 2024
medium
business-studies ID: cbse-cla
Naman and Vineet were childhood friends and both were working in 'Sunshine Crockery'. Naman was the Chief Executive Officer while Vineet was the Production Manager. They generally discussed company-related issues during lunch or while traveling together. Recently, the company received an order for 5,000 dinner sets from Shaurya Hotel. It was an unexpected order that would increase the company's revenue. Naman communicated this order to Vineet over intercom, and Vineet executed it within the given time period. The type of communication used by Naman to communicate the order to Vineet was:
1
Formal Communication
2
Informal Communication
3
Online Communication
4
Visual Communication
09
PYQ 2024
medium
business-studies ID: cbse-cla
'Child-O' is a garment manufacturing company which makes clothes with unique and stylish designs for children. Naisha was working as the Human Resource Manager with 'Child-O'. Despite good pay and many other benefits offered, the company is facing the problem of high turnover of its employees. Naisha tried to find out the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out the reason. It was found that other organisations were giving more autonomy and authority to their employees, which made them feel that their jobs were important. This was attracting the employees of 'Child-O' to other organisations. The incentive which attracted the employees of 'Child-O' to other organisations is:
1
Employee Recognition Programmes
2
Employee Participation
3
Career Advancement Opportunity
4
Employee Empowerment
10
PYQ 2024
medium
business-studies ID: cbse-cla
State any four features of the directing function of management.
11
PYQ 2024
medium
business-studies ID: cbse-cla
Explain ’Critical Point Control’ and ’Management by Exception’ as discussed in the controlling process.
12
PYQ 2024
medium
business-studies ID: cbse-cla
A Business Process Outsourcing centre, 'Chromosome' which deals in conversion of voice reports dictated by physicians and other healthcare providers into text format has 40 employees. They ensure that their employees are well versed in at least one foreign language and one Indian language. The employees are also given the required training to ensure that the reports are processed correctly as they are the backbone of the patients' medical history. On frequent complaints about some of its employees, it was observed that they were facing problems in decoding the message as they were not very proficient with the language in which the voice message was received. As a result, they would make mistakes causing different meaning to the message. Not only this, sometimes there were technical words used in voice reports, the actual meaning of which was also not understood by the employees. Due to this, 'Chromosome' was slowly losing its business to competitors.
The above case highlights two communication barriers. Identify and explain these barriers.

13
PYQ 2024
medium
business-studies ID: cbse-cla
Statement-I: Motivation can be either positive or negative.
Statement-II: Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions, and reactions.
1
Statement-I is true and Statement-II is false.
2
Statement-II is true and Statement-I is false.
3
Both the Statements are true.
4
Both the Statements are false.
14
PYQ 2024
medium
business-studies ID: cbse-cla
Explain any three psychological barriers to communication.
15
PYQ 2024
medium
business-studies ID: cbse-cla
Statement 1: Leadership indicates the ability of an individual which influences the behavior of others.
Statement 2: Leadership is exercised to achieve personal goals of the leader. Choose the correct option from the following:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the Statements are true.
4
Both the Statements are false.
16
PYQ 2025
medium
business-studies ID: cbse-cla
Naman and Vineet were childhood friends and both were working in 'Sunshine Crockery.' Naman was working as the Chief Executive Officer while Vineet was the Production Manager. They would generally discuss company related issues over lunch-time or while travelling together. The company had recently received an order for supply of 5,000 dinner sets from Shaurya Hotel. It was an unexpected order and would increase the revenue of the company. This order was communicated by Naman to Vineet over intercom. Vineet executed the order within the given time period. For this, he was appreciated by Naman. The type of communication used by Naman to communicate the order to Vineet was:
1
Formal Communication
2
Informal Communication
3
Online Communication
4
Visual Communication
17
PYQ 2025
medium
business-studies ID: cbse-cla
'Child-O' is a garment manufacturing company which makes clothes with unique and stylish designs for children. Naisha was working as the Human Resource Manager with 'Child-O'. Inspite of good pay and many other benefits offered, the company is facing problem of high turnover of its employees. Naisha tried to find out the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out the reason. It was found that other organisations were giving more autonomy and authority to their employees which made them feel that their jobs were important. This was attracting the employees of 'Child-O' to other organisations. The incentive which attracted the employees of 'Child-O' to other organisations is:
1
Employee Recognition programmes
2
Employee Participation
3
Career Advancement Opportunity
4
Employee Empowerment
18
PYQ 2025
medium
business-studies ID: cbse-cla
State any four points of importance of ‘Staffing’ function of management.
19
PYQ 2025
medium
business-studies ID: cbse-cla
Explain the following steps of the selection process :
(i) Selection Tests
(ii) Employment Interview
20
PYQ 2025
medium
business-studies ID: cbse-cla
Explain ‘Critical point control’ and ‘Management by exception’ as discussed in the controlling process.
21
PYQ 2025
medium
business-studies ID: cbse-cla
‘Planning and controlling are inseparable twins of management’. Explain with the help of any three points.
22
PYQ 2025
medium
business-studies ID: cbse-cla
A Business Process Outsourcing centre, 'Chromosome' which deals in conversion of voice reports dictated by physicians and other healthcare providers into text format has 40 employees. They ensure that their employees are well versed in at least one foreign language and one Indian language. The employees are also given the required training to ensure that the reports are processed correctly as they are the backbone of the patients' medical history. On frequent complaints about some of its employees, it was observed that they were facing problems in decoding the message as they were not very proficient with the language in which the voice message was received. As a result, they would make mistakes causing different meaning to the message. Not only this, sometimes there were technical words used in voice reports, the actual meaning of which was also not understood by the employees. Due to this, 'Chromosome' was slowly losing its business to competitors. The above case highlights two communication barriers. Identify and explain these barriers.
23
PYQ 2025
medium
business-studies ID: cbse-cla
Statement-I : Motivation can be either positive or negative.
Statement-II : Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions.
Choose the correct option from the following :
1
Statement-I is true and Statement-II is false.
2
Statement-II is true and Statement-I is false.
3
Both the Statements are true.
4
Both the Statements are false.
24
PYQ 2025
medium
business-studies ID: cbse-cla
Statement I: Leadership indicates the ability of an individual which influences the behaviour of others.
Statement II: Leadership is exercised to achieve personal goals of the leader.
Choose the correct option from the following:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the Statements are true.
4
Both the Statements are false.
25
PYQ 2025
medium
business-studies ID: cbse-cla
‘Maslow’s Need Hierarchy theory’ is based on certain assumptions. Identify the incorrect statement with respect to these assumptions:
1
People’s behaviour is based on their needs.
2
A satisfied need can no longer motivate a person.
3
People’s needs are in a hierarchical order, starting from basic needs to higher level needs.
4
A person moves to lower level of need only when a higher level need is satisfied.
26
PYQ 2025
medium
business-studies ID: cbse-cla
To motivate its employees on one side, ‘Harshita Pearls’ rewards them with increase in pay, promotion, recognition, etc. whereas on the other side it stops increments, gives punishment, threatens employees so that they may act in a desired manner. Which feature of motivation is being highlighted in the above case?
1
Motivation is a complex process.
2
Motivation is an internal feeling.
3
Motivation can be either positive or negative.
4
Motivation produces goal-directed behaviour.
27
PYQ 2025
medium
business-studies ID: cbse-cla
(a) Explain any three psychological barriers to communication.
OR
(b) ‘Directing helps in effective and efficient functioning of the organization.’ Explain this statement by giving any three points.
28
PYQ 2025
medium
business-studies ID: cbse-cla
Explain any three psychological barriers to communication.
29
PYQ 2025
medium
business-studies ID: cbse-cla
A Business Process Outsourcing centre, ‘Chromosome’ which deals in conversion of voice reports dictated by physicians and other healthcare providers into text format has 40 employees. They ensure that their employees are well versed in at least one foreign language and one Indian language. The employees are also given the required training to ensure that the reports are processed correctly as they are the backbone of the patients’ medical history. On frequent complaints about some of its employees, it was observed that they were facing problems in decoding the message as they were not very proficient with the language in which the voice message was received. As a result, they would make mistakes causing different meaning to the message. Not only this, sometimes there were technical words used in voice reports, the actual meaning of which was also not understood by the employees. Due to this, ‘Chromosome’ was slowly losing its business to competitors. The above case highlights two communication barriers. Identify and explain these barriers.
30
PYQ 2025
medium
business-studies ID: cbse-cla
Which of the following is \underline{NOT} a feature of ‘Directing’ function of management?
1
Directing initiates Action.
2
Directing takes place at every level of management.
3
Directing ensures that activities are performed as per plans.
4
Directing flows from top to bottom.
31
PYQ 2025
medium
business-studies ID: cbse-cla
From the following, choose the incorrect statement about the importance of ‘Directing’ function of management :
1
Directing helps to initiate action by people in the organization towards attainment of desired objectives.
2
Directing integrates employees’ efforts in the organization in such a way that every individual effort contributes to the organization’s performance.
3
Directing facilitates introduction of needed changes in the organization.
4
Directing helps in estimating manpower requirements for the organization.
32
PYQ 2025
medium
business-studies ID: cbse-cla
Akash Mehra is the Marketing Manager of ‘Kedanta Enterprises’. He gives orders and expects his subordinates to obey those orders. Communication is only one-way with the subordinates only acting according to the command given by him. Identify the leadership style of Akash Mehra :
1
Authoritative
2
Participative
3
Free-rein
4
Pragmatic
33
PYQ 2025
medium
business-studies ID: cbse-cla
‘Lack of confidence of superior in his subordinates’ is one of the barriers of communication. Identify the communication barrier :
1
Personal barrier
2
Psychological barrier
3
Semantic barrier
4
Organizational barrier
34
PYQ 2025
medium
business-studies ID: cbse-cla
Inaya Ltd is a multinational technology company focusing on artificial intelligence, online advertising and search engine technology. The company is generating good profits and takes care of the well-being of its staff. The company offers benefits like car allowance, medical aid and allowance for childrens education to all employees above the Manager level. It regularly contributes towards the Employees Provident Fund and pays gratuity on retirement to its employees. Under a special incentive scheme, the employees are offered shares of Inaya Ltd at a set price which is lower than the market price. Each year, the company keeps aside funds to pay one percent of base salary as bonus to its employees. No wonder 90 percent of the employees would recommend working at Ltd to a friend.
Explain four incentives being provided by \textquoteleft Inaya Ltd. to motivate their employees for better performance.
35
PYQ 2026
medium
business-studies ID: cbse-cla
Explain any four personal barriers of communication.
36
PYQ 2026
medium
business-studies ID: cbse-cla
Explain any four non-financial incentives.
37
PYQ 2026
medium
business-studies ID: cbse-cla
Explain any four semantic barriers of communication.
38
PYQ 2026
medium
business-studies ID: cbse-cla
Explain any four psychological barriers of communication.
39
PYQ 2026
medium
business-studies ID: cbse-cla
Explain any four points of importance of directing function of management.
40
PYQ 2026
medium
business-studies ID: cbse-cla
Read the following statements carefully :
Statement I : In democratic leadership style, the followers are given a high degree of independence to formulate their own objectives and ways to achieve them.
Statement II : In autocratic leadership style, communication is only one-way, with the subordinates only acting according to the command given by their managers.
In the light of the given statements, choose the correct alternative :

1
Statement I is true and Statement II is false.
2
Statement I is false and Statement II is true.
3
Both Statement I and Statement II are true.
4
Both Statement I and Statement II are false.
41
PYQ 2026
medium
business-studies ID: cbse-cla
A leading newspaper company noticed that many of its talented editors were resigning despite being paid competitive salaries. On conducting an internal survey, it was revealed that employees were dissatisfied as they were not being offered benefits over and above the salary, like the employees of other competitive firms. Realising that such additional benefits play an important role in motivating employees, the management decided to provide car allowance, housing facilities, medical benefits, etc. to retain employees in the organisation and improve their satisfaction. Identify the incentive that the newspaper company decided to provide to their employees :
1
Bonus
2
Retirement benefits
3
Perquisites
4
Profit sharing
42
PYQ 2026
medium
business-studies ID: cbse-cla
Which of the following statements is incorrect with reference to Maslow’s Need Hierarchy Theory of motivation ?
1
People’s behaviour is based on their needs.
2
People’s needs are in hierarchical order, starting from basic needs to other higher level needs.
3
Only a satisfied need can motivate a person.
4
A person moves to the next higher level of the hierarchy only when the lower need is satisfied.