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‘Deccan Motors Ltd.’… (Class 12 Business Studies 2026, Q10)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 1 mark · MCQ

CBSE Class 12 Business Studies 2026: question 10

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 10, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q10 · 1 mark · MCQCompetency-basedOrganising

‘Deccan Motors Ltd.’ is a renowned name in the automobile sector in India. It deals in both commercial vehicles like bus, truck and lorries, as well as passenger vehicles like cars, scooters, etc. It presently has a functional organisational structure. The Board of Directors have now decided to shift to divisional structure, with separate divisions for commercial vehicles and passenger vehicles.

Identify the benefit the company will get as a result of shifting to divisional structure :

  1. (A)It will promote flexibility and initiative because each division will function as an autonomous unit.
  2. (B)It will lead to minimal duplication of effort, which will result in economies of scale.
  3. (C)It will make training of employees easier as the focus will be on limited range of skills.
  4. (D)It will lead to occupational specialisation since emphasis will be placed on specific functions.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.

Hints

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

Hint 1

Which options describe a functional structure?

Hint 2

Divisions work like independent units.

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. Each division will run as an autonomous unit with its own functions.

  2. Autonomy allows faster decisions: it promotes flexibility and initiative. Options (B), (C) and (D) are advantages of a functional structure. Option (A).

    1 mark

Answer: (A) It will promote flexibility and initiative because each division will function as an autonomous unit.

Where the marks are

  • Autonomy of divisions (1 mark)

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 paper2026 board paper, set 66/5/1: 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.