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India's IT… (Class 12 Business Studies SQP 2026-27, Q33)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Long answer

CBSE Class 12 Business Studies sample paper 2026-27: question 33

From the official CBSE sample question paper for 2026-27, section A, question 33, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q33 · 6 marks · Long answerCompetency-basedOrganising

India's IT services companies saw a sharp decline in the share prices on February 12, 2026 over persistent fears that the artificial intelligence (AI)-led disruption will affect their profits in the coming years. Awino, one of India's top IT solutions providers, in order to face the challenge, has decided to separate itself into several subsidiaries by product line: telecommunications, engineering, financial services, etc. Each subsidiary brings in about $300 million in annual earnings and is self-sufficient with their own accounting books, personnel and administrative functions. The decision making authority is shared with lower levels and is consequently placed nearest to the points of action. Explain briefly any four benefits Awino will get from this selective dispersal of authority.

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

Selective dispersal of authority is decentralisation.

Hint 2

Think about subordinates, decision speed and top management.

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. Awino has adopted decentralisation (selective dispersal of authority to lower levels). Its benefits:

  2. Develops initiative among subordinates: Freedom to decide builds self-reliance and confidence.

    1½ marks

  3. Develops managerial talent for the future: Handling independent assignments builds a pool of managers for promotion.

    1½ marks

  4. Quick decision making: Decisions are taken nearest to the points of action without approvals from many levels.

    1½ marks

  5. Relief to top management: Less direct supervision frees top managers for strategic work. (Also: facilitates growth, better control.)

    1½ marks

Answer: Any four benefits of decentralisation: initiative, managerial talent, quick decisions, relief to top management (also growth, better control).

Where the marks are

  • Any four benefits: ½ heading + 1 explanation each

Revise the chapter

Practise this chapterBoard-style questions from Organising, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

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.