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Business StudiesCBSE Class 12 · Sample paper, session 2025-26 · 3 marks · Short answer

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. 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
  2. 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
  3. 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.)

    1 mark

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)

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.