Important Questions Class 12 Business Studies Chapter 7 - Directing

Important Questions with Answers for CBSE Class 12 Business Studies Chapter 7 – Directing which is outlined by expert Business Studies teachers from the latest version of CBSE (NCERT) books

CBSE Class 12 Business Studies Chapter-7 Important Questions:

Question 1

State any two non-financial incentives


  • Status-In a company context, status is referred to as the position or rank given to an employee. In simple words, status can be any managerial post assigned to a person.
  • Career Advancement Position- It refers to higher-level progression in one’s career. A person’s progress can be a move from an entry-level job to a managerial position with the same field.

Also Check: Business Studies MCQs

Question 2

Give the meaning of ‘motivation’ as an element of directing.

Answer: Motivation as an element of directing is a process of understanding and stimulating an employee to work towards the desired objectives and goal. It encourages workers to operate to the best of their skills and work towards common objectives and purpose of a company.

Question 3

Explain three points that highlight the importance of directing the function of management.

Answer: In any organisation, the operation begins with the function of directing. The three important points of directing function of management are mentioned below.

  • Achieving objectives- The actual action of a company starts with the directing function of management. A company cannot function without proper direction and guidance. The directing assists an individual to conclude a specified task properly and on time. The directing also motivate and supervise the employee to accomplish their objectives more efficiently.
  • Integration of Effort- Every company have many employees, with different job role and work at various levels. It is only through directing all the employees’ efforts are integrated and channelised towards accomplishing the common company goal.
  • Employees Development- Right guidance helps and guides an employee in the right direction. Components of directing such as leadership and motivation encourage an employee to give their best and help the company achieve the ultimate goal.

Question 4

What is meant by ‘Esteem needs’ and ‘self-actualisation needs’ in relation to the motivation of an employee?


  • Esteem needs- It refers to the need for self-esteem, self-confidence, and respect. Esteem needs are the foundation of human desire, which needs to be accepted and valued by others. Esteem need includes self-belief, confidence, personal and social acceptance, strength, and respect from others.
  • Self-actualisation needs- It refers to the need for personal development and discovery of what one is capable of doing. Self-actualisation is those individuals who are fulfilled and correctly doing what they are capable of doing.

Question 5

Explain five points of importance of directing function of management.

Answer: Importance of directing function of management.

  • Directing Initiates action- It helps an employee to initiate an action and achieve the desired goal.
  • Directing Integrates Employee’s Effort- Directing assures integration of employees’efforts towards the achievement of company goals.
  • Motivation and Leadership- It motivates an employee to show their leadership quality to work efficiently and give their maximum contribution to achieving an organisation goal.
  • Directing Facility Change- In an organisation, an employee often withstand changes due to the fright of the adverse effect. Efficient directing motivates and encourages the employee to get through the turns.
  • Helps in Stability and Balance in a Company- Effective directing stimulate supportiveness and engagement among an individual and help in balancing between multiple department and activities.

Question 6

What are the various types of leadership style? Example.

Answer: The various types of leadership style are.

  • Autocratic and Authoritarian Leader- It is a leadership style identified by an individual that has total authority and control over decision making. Authoritarian Leader makes a decision based on their choices or ideas and expect little input from others or accepts others advice.
  • Democratic or Participatory Leader– It is a type of leadership, where the leader and the team member take a more participatory role in a decision-making process. Each participant is given a chance and opportunity to share and exchange ideas freely.
  • Laissez-Faire and Rein Leader-In this leadership style, leaders do not participate in any decision-making process and allow group members to make a decision.

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Chapter-wise Important Questions for CBSE Class 12 Business Studies-
Chapter 1 – Nature and Significance of Management Chapter 8 – Controlling
Chapter 2 – Principles of Management Chapter 9 – Financial Management
Chapter 3 – Business Environment Chapter 10 – Financial Markets
Chapter 4 – Planning Chapter 11 – Marketing
Chapter 5 – Organising Chapter 12 – Consumer Protection
Chapter 6 – Staffing


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