CBSE Class 12 Business Studies 2026: question 9
Set in the CBSE Class 12 board exam of 2026, paper 66/1/1, section A, question 9, for 1 mark. Try it first; the hints and our step-by-step solution are below.
Q9 · 1 mark · MCQCompetency-basedNature and Significance of Management
'CARO Tech Solutions' aimed at development of a software system for the company's growing operations. The project was to be completed within six months with a budget of ₹ 12,00,000.
The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ₹ 2,00,000.
From the following, identify whether the software development team is :
- (A)Efficient and Effective
- (B)Efficient but not effective
- (C)Effective but not efficient
- (D)Neither efficient nor effective
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
Effectiveness = finishing the job on time.
Hint 2
Efficiency = doing it at minimum cost.
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.
The project was completed on time, so the target was met: the team was effective.
- 1 mark
It spent ₹2,00,000 more than the budget of ₹12,00,000, so resources were not used economically: it was not efficient. Option (C).
Answer: (C) Effective but not efficient
Where the marks are
- On time but over budget (1 mark)
Revise the chapter
- Chapter: Nature and Significance of Management (notes, formulas, where marks are lost and every past question)
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