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'Soal Footwear Ltd.'… (Class 12 Business Studies 2026, Q22)

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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 22

Set in the CBSE Class 12 board exam of 2026, paper 66/1/1, section B, question 22, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q22 · 3 marks · Short answerCompetency-basedOrganising

'Soal Footwear Ltd.' is known for its high quality athletic shoes and casual sneakers. With increasing competition and changing consumer preferences, it decided to diversify its product range by adding clothing, bags and accessories under the same brand umbrella. This diversification aimed to capture a larger share of the market and increase customer loyalty.

  1. (i)

    Suggest with reason which type of organisational structure will be suitable for 'Soal Footwear Ltd.' (1+2)

    1 mark
  2. (ii)

    State any two advantages of the organisational structure suggested in (i) above.

    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

Many product lines suggest which structure?

Hint 2

Each division works like an autonomous unit.

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) Divisional structure. Reason: the company is diversifying into a large variety of products (clothing, bags, accessories) under one brand.

    1 mark

  2. (ii) Product specialisation develops managers: Divisional heads gain varied skills and are prepared for higher positions.

    1 mark

  3. Facilitates expansion and growth: New divisions can be added for new product lines without disturbing existing ones. (Also: accountability for profits, flexibility and initiative.)

    1 mark

Answer: (i) Divisional structure, as the company is diversifying its product range. (ii) Any two advantages: managerial development, accountability for profits, flexibility, easy expansion.

Where the marks are

  • (i) ½ structure + ½ reason
  • (ii) Two advantages, 1 each

Revise the chapter

  • Chapter: Organising (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Organising, 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.