CBSE Class 12 Business Studies sample paper 2025-26: question 21(A)
From the official CBSE sample question paper for 2025-26, section B, question 21(A), for 3 marks. Try it first; the hints and our step-by-step solution are below.
Q21(A) · 3 marks · Short answerOrganising
State any three points of significance of decentralization.
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.
Hints
Open one hint at a time and try again before the next.
Hint 1
What happens to subordinates who are allowed to decide?
Hint 2
Think of speed: how many levels must approve a decision?
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 mark
Develops initiative among subordinates: When lower levels are free to take their own decisions they learn to rely on their own judgement, which builds self-reliance and confidence.
- 1 mark
Develops managerial talent for the future: Subordinates get a chance to prove their abilities, creating a pool of trained people to fill higher positions by promotion.
- 1 mark
Quick decision making: Decisions are taken close to the point of action without approval from many levels, so they are faster and less distorted. (Also: relief to top management, facilitates growth, better control.)
Answer: Decentralisation develops initiative, develops managerial talent for the future and speeds up decision making (also relief to top management, growth, better control).
Where the marks are
- Any three points: 1 mark each
Revise the chapter
- Chapter: Organising (notes, formulas, where marks are lost and every past question)
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