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Business StudiesCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Long answer

CBSE Class 12 Business Studies sample paper 2024-25: question 32(A)

From the official CBSE sample question paper for 2024-25, section D, question 32(A), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q32(A) · 6 marks · Long answerOrganising

Differentiate between functional structure and divisional structure on the basis of:
(I) Formation
(II) Specialisation
(III) Responsibility
(IV) Managerial development
(V) Cost
(VI) Coordination

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which structure duplicates resources?

Hint 2

Which structure gives managers autonomy?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (I) Formation: Functional: based on functions. Divisional: based on product lines, supported by functions.

    1 mark
  2. (II) Specialisation: Functional: functional specialisation. Divisional: product specialisation.

    1 mark
  3. (III) Responsibility: Functional: difficult to fix on a department. Divisional: easy to fix for performance.

    1 mark
  4. (IV) Managerial development: Functional: difficult, since each functional manager reports to top management. Divisional: easier, through autonomy and multiple functions.

    1 mark
  5. (V) Cost: Functional: no duplication of functions, so economical. Divisional: duplication of resources, so costly.

    1 mark
  6. (VI) Coordination: Functional: difficult for a multi-product company. Divisional: easy, as all functions of a product are in one division.

    1 mark

Answer: Functional vs divisional: functions vs products, functional vs product specialisation, responsibility hard vs easy to fix, development hard vs easy, economical vs costly, coordination hard vs easy.

Where the marks are

  • Six bases: 1 mark each

Revise the chapter

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.