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Home/Practice questions/Business Studies
Business StudiesDirecting

Ram is running his father's business. According to his father, Ram is…

Ram is running his father's business. According to his father, Ram is doing his best in this field. He always influences the behaviour of people, plays a key role in introducing required changes in the organisation, handles conflicts effectively and is always ready to train subordinates.

Which of the following concept is explained in above given lines?

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → Importance of leadership

  • Option (1) Qualities of a good leader — Incorrect. Qualities are the traits a leader has, such as knowledge, integrity, initiative and self-confidence. The lines describe what Ram does for the business, not his traits.

  • Option (2) Importance of leadership — Correct. A good leader influences the behaviour of people, plays a key role in introducing required changes, handles conflicts effectively and provides training to subordinates. These are the benefits of leadership, and the lines about Ram match them almost word for word.

  • Option (3) Process of leadership — Incorrect. The lines do not describe any steps or stages that a leader follows.

  • Option (4) Communication concept — Incorrect. Communication is the exchange of ideas between people. The lines are about the role of a leader, not about passing messages.

NCERT (2026-27 Edition): “Importance of Leadership: … The importance of leadership can be discussed from the following benefits to the organisation:”

“(i) Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation. …”

“(iii) Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. …”

“(iv) A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts. …”

“(v) Leader provides training to their subordinates. A good leader always builds up his successor and helps in smooth succession process.”

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