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'Riya Mart' is a… (Class 12 Business Studies 2026, Q21)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/1/1 · 3 marks · Short answer

CBSE Class 12 Business Studies 2026: question 21

Set in the CBSE Class 12 board exam of 2026, paper 66/1/1, section B, question 21, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q21 · 3 marks · Short answerCompetency-basedControlling

'Riya Mart' is a company manufacturing disposable crockery. They have been in business for the past five years, but were not earning good profits. Concerned about this, the Chief Executive Officer (CEO), Verma, ordered an internal audit. The audit uncovered several issues like inventory pilferage, employees coming late and their performance not upto the mark. To stop inventory pilferage, Verma, the CEO, introduced surprise stock checks and installed an automated inventory management system to track stock movements. A biometric attendance system was also setup to keep a check on employees coming late. In addition to this, to motivate employees for better performance, they were told in advance what they are expected to do and what are their standards of performance. As a result of these steps, the inventory pilferage reduced, employees became more punctual and their performance improved.

  1. (i)

    Identify and state the function of management performed by Verma, the Chief Executive Officer of the company.

    1 mark
  2. (ii)

    State any two points of importance of the function identified in (i) above, which are not discussed in the above para.

    2 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/1/1.

Hints

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

Hint 1

The CEO compared performance with standards and acted on the gaps.

Hint 2

Motivation and order and discipline are already in the case; choose others.

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) The function is Controlling: measuring accomplishment against standards and correcting deviations to ensure objectives are achieved as planned.

    1 mark

  2. (ii) Accomplishing organisational goals: Controlling measures progress towards goals and brings deviations to light for correction.

    1 mark

  3. Judging accuracy of standards: It reviews and revises standards in the light of changes in the organisation and the environment. (Also: efficient use of resources, facilitating coordination in action.)

    1 mark

Answer: (i) Controlling. (ii) Any two not in the case: accomplishing goals, judging accuracy of standards, efficient use of resources, facilitating coordination.

Where the marks are

  • (i) ½ identification + ½ statement
  • (ii) Two points, 1 each (½ each if only listed)

Revise the chapter

  • Chapter: Controlling (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Controlling, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 66/1/1: 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.