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CBSE Class 12 Business Studies 2026 All Sets Solved Paper

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Question : 20 of 21
Marks: +1, -0
Read the following statements carefully :
Statement I : In democratic leadership style, the followers are given a high degree of independence to formulate their own objectives and ways to achieve them.
Statement II : In autocratic leadership style, communication is only one-way, with the subordinates only acting according to the command given by their managers. In the light of the given statements, choose the correct alternative :
Solution:  
1. Statement I describes the Laissez-faire (Free-rein) style, not Democratic. In a Democratic style, the leader consults followers, but they aren’t totally independent.
2. Statement II is a perfect description of the Autocratic style, where the leader gives orders and expects strict obedience without consultation.
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