CBSE Class 12 Business Studies sample paper 2026-27: question 3
From the official CBSE sample question paper for 2026-27, section A, question 3, for 1 mark. Try it first; the hints and our step-by-step solution are below.
Q3 · 1 mark · MCQCompetency-basedOrganising
Raja is the Managing Director of Shraddha Ltd.,a firm manufacturing Environment Friendly products. As the firm grows in size he has decided to pay attention to the organisation structure. Which of the following organization structures should he choose in order to make managerial development easier, by providing autonomy and the chance to perform multiple functions?
- (A)Functional Structure
- (B)Span of management
- (C)Divisional Structure
- (D)Informal organisation
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.
Hints
Open one hint at a time and try again before the next.
Hint 1
Which structure groups activities by product lines?
Hint 2
Span of management and informal organisation are not structures to choose here.
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.
In a divisional structure each product division has its own production, finance, marketing and other functions, headed by a divisional manager who enjoys autonomy.
- 1 mark
Running a whole division gives managers varied, multi-functional experience, so it helps managerial development. Option (C).
Answer: (C) Divisional Structure
Where the marks are
- Autonomy and multiple functions per division (1 mark)
Revise the chapter
- Chapter: Organising (notes, formulas, where marks are lost and every past question)
- Topic: Functional and Divisional Structure
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