CBSE Class 12th Business Studies Sample Paper - SP4

Free Business Studies - Class 12th (CBSE) - Sample Paper - SP4

Before proceeding to the sample paper, below are the quick details:

• Class: XII
• Subject: BUSINESS STUDIES
• Time: 3 Hours
• Maximum Marks: 80

CBSE Class 12th Business Studies Question Paper

General instructions:

• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.
• Attempt all parts of the questions together.

Q1. Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job seekers can be a valuable source of manpower. A list of such job seekers can be prepared and screened to fill the vacancies as they arise. The source of recruitment discussed above is: (1 Mark)

1. Direct recruitment
2. Casual callers
3. Labour contractors
4. Campus recruitment

Q2. Identify the incorrect statement concerning marketing: (1 Mark)

1. Marketing is a social process.
2. The focus of the marketing activities is on customer needs.
3. Marketing is merely a post-production activity.
4. Marketing mix is a wider term than product mix.

Q3. The name and taste of Coca-Cola are known to almost every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and has a special seat in every gathering. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke name. The most common of these is Diet Coke, along with others, including Caffeine-Free Coca-Cola, Diet Coke Caffeine Free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and the list goes on. It has capitalised on every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of the product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design, and creative advertising. Identify the feature of the Business Environment that the Coca-Cola Company managed to get in its favour: (1 Mark)

1. Complex
2. Specific and general forces
3. Futuristic
4. Mental exercise

Q4. Choose the statement that correctly highlights the political environment: (1 Mark)

1. Existing structure of the economy in terms of the relative role of private and public sectors.
2. Rise in the disposable income of people due to an increase in the gross domestic product of a country.
3. Legislation passed by the government authorities.
4. Attitude of the elected government representatives towards business.

Q5. ABC & Co. is conducting training to help its managers understand the principles of management. However, one employee does not want to attend it as he thinks that such training only benefits employees of large organisations and not small firms like his. Identify which of the following aspects of the nature of management principles the employee does not understand: (1 Mark)

1. Flexible
2. General guidelines
3. Universal applicability
4. Formed by practice and experimentation

Q6. Under the Consumer Protection Act, 2019, ________ can be approached to file a complaint by the legal heir of a deceased consumer if the compensation claimed is ₹ 3 crores. (1 Mark)

1. District Commission
2. State Commission
3. National Commission
4. All of these

Q7. Read the following statements: Assertion (A) and Reason (R). (1 Mark)

Choose the correct alternative from those given below:

• Assertion (A): The availability of leasing facilities may reduce the funds required to be invested in fixed assets, thereby reducing the fixed capital requirements.
• Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and avoids investing huge sums required to purchase it.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Q8. While performing the organising function, jobs are allocated to the members of each department based on their skills and competencies. Identify the step in the organising function being discussed above: (1 Mark)

1. Identification and division of work
2. Departmentalisation
3. Assignment of duties
4. Establishment of reporting relationships

Q9. Some employees have been assigned the job of measuring the output in an objective and reliable way. They are applying different techniques for achieving this aim. Some of these are personal observation, sample checking, etc. They are also keeping the units of measurement the same as that of the units in the standards. Name the step of the Controlling process applicable in the above paragraph. (1 Mark)

1. Analysing deviations
2. Comparing actual performance with standards.
3. Establishing standards.
4. Measurement of actual performance

Q10. With the presence of women in the workforce, there has been a shift towards formal wear, increased demand for electronic gadgets and an increase in demand for cosmetics. The related dimension of business environment referred to in the above lines is: (1 Mark)

1. Technological environment
2. Social environment
3. Political environment
4. Economic environment

Q11. Which of the following are components of a product mix? (1 Mark)

1. Product labelling
2. Product Branding
3. Product advertising
4. Product packaging
5. Product Distribution Channels
6. Product Pricing

Choose the correct alternative from the following: (1 Mark)

1. (a), (b) and (d)
2. (c), (d) and (e)
3. (a), (c) and (e)
4. (b), (d) and (f)

Q12. 

Identify the element of the business environment stated by the above image. (1 Mark)

1. Economic
2. Environmental
3. Legal
4. Political

13. Match the Situations in Column I with the dimensions of Business Environment in Column II. (1 Mark)

Column I		Column II
(a)	The #MeToo movement has brought about a greater awareness of sexual harassment and gender inequality.	(1) Economic Environment
(b)	The government banned the sale of Chinese goods	(2) Legal Environment
(c)	Due to the launch of 5G mobile phones now come with a 5G spectrum	(3) Social Environment
(d)	The tax rates were increased from 5% to 10%	(4) Technological Environment

1. (a) (3), (b) (2), (c) (4), (d) (1)
2. (a) (4), (b) (3), (c) (2), (d) (1)
3. (a) (4), (b) (1), (c) (3), (d) (2)
4. (a) (3), (b) (4), (c) (2), (d) (1)

Q14. ‘Yamuna Ki Bhujia’ offered its products at competitive prices, even while offering customer services like gift packaging and free home delivery to become a household name. Choose the factor affecting the element of the marketing mix being discussed above. (1 Mark)

1. Marketing methods used
2. Objectives
3. Extent of competition in the market
4. None of these

Q15. Choose the correct statement that highlights the development of SEBI: (1 Mark)

1. Registration of players in the market.
2. Conducting research and publishing information
3. Levying fees
4. Prohibition of unfair trade practices

Q16.

• Statement I: The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold.
• Statement II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. (1 Mark)

1. Statement I is correct, and Statement II is wrong.
2. Statement II is correct and Statement I is wrong.
3. Both statements are correct.
4. Both statements are wrong.

Q17. From the following, identify the channel of distribution in which goods pass from the manufacturer to the retailers who, in turn, sell them to the final users. (1 Mark)

1. One-level channel
2. Two-level channels
3. Three-level channels
4. Zero-level channel

Q18. Feather Loom Ltd. has been doing a great job in the area of clothes designing. Within two years, the company has reached among the top performers in the textile industry. The company has made a lot of profit and decided to distribute its profits to the shareholders who stood with it during the hard times. Identify and explain the type of decisions mentioned in the above case. (1 Mark)

1. Investment decision
2. Budgeting decision
3. Dividend decision
4. Financing decision

Q19. 'Technogadget Inc.' is launching a new smartwatch designed to offer unique features. The company focuses on various strategies to ensure the product stands out in the competitive market. Which of the following functions of marketing is the company utilising to enhance the product's performance and give it a competitive edge? (1 Mark)

1. Marketing planning
2. Product designing and development
3. Promotion
4. Branding

Q20. For holding securities in an electronic form, the investor has to open a Demat account with an organisation called ______ (1 Mark)

1. Depository
2. Securities and Exchange Board of India
3. Stock Exchange
4. Mutual Fund

Q21. "The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market." In light of the given statement, state any three objectives of SEBI. [3] 

OR

List any three tasks that Mr. Armstrong needs to do, as a production manager, in his firm, to carry out the plans laid down by the top managers. [3]

Q22. Unsparked Limited started as an electric wire manufacturer. After a few years, it also started manufacturing other electric appliances like electric bulbs, tube lights, and fans. The decision-making authority rested in the hands of a few top executives. Now, Unsparked Limited is planning to diversify its operations and start the manufacture of other household appliances like food processors, washing machines, and air fryers. For this, they want to change their organisational structure and introduce new levels of management, which will be responsible for different functions for each of these products. It also wants to empower its middle management with the decision-making authority to help in the smooth operations of the organisation.

1. Which organisational structure should Unsparked Limited adapt? Write any two advantages of that organisational structure. (1 Mark)
2. What should be done to empower the middle management with the decision-making authority? (2 Marks)

Q23. From the following information regarding Nanocom Ltd., which is in the business of manufacturing organic skincare products, calculate the Return on Investment (ROI) of the company. (Show working). (3 Marks)

• Earnings before Interest and Tax (EBIT): ₹25,00,000
• 12% Debentures: ₹10,00,000
• Equity Share Capital (₹ 10 each): ₹20,00,000
• Tax Rate: 35%

Q24. Dhaval Acharya, after acquiring a bachelor’s degree in Hotel Management, joined his father's chain of vegetarian restaurants in Ahmednagar. Being young and enterprising, he suggested his father add a new section of vegetarian bakery items, which required an investment of ₹ 5 crores. His father, Mr. Aariketh Acharya, suggested he decide with caution and understand everything comprehensively, as a bad decision may damage the financial fortune of the business.

1. Identify the decision suggested by Mr. Aariketh Acharya. (1 Mark)
2. State by giving any two reasons as to why he must have advised his son to decide with caution. (2 Marks)

Q25. Vinber Ltd. set up a manufacturing unit at Bhiwadi, Himachal Pradesh, to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that a variation in production of up to 10 units would be acceptable. At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found that the fluctuation in production was due to an irregular supply of electricity.

1. Identify and explain the steps of the management function exercised in Vinber Ltd. (1 Mark)
2. Explain the step(s) of the management function that are not discussed in the paragraph. (3 Marks)

26. SEBI protects investors by ensuring market transparency, fairness, and preventing fraud and manipulation. Explain any four functions of SEBI that support this statement. (4 Marks)

OR

Understanding economic shifts and regulatory changes helps businesses like Apple adapt their strategies, manage risks, and seize new opportunities effectively. Explain any four features of the business environment. (4 Marks)

27. 'Filling vacancies for various job positions from within the organisation has many limitations.' State any four such limitations. (4 Marks)

OR

State any four features of an organisation that is an aggregate of interpersonal relationships and is formed without any conscious purpose. (4 Marks)

28. Mayank purchased a pack of chocolates from a renowned brand for his daughter from a shop in the nearby market. After consuming the chocolates, his daughter fell sick. He filed a case with the District Forum against the renowned brand. He lost the case because of a mistake that he could not provide proof of purchase. What responsibilities should be kept in mind by a consumer while purchasing, using and consuming goods and services, apart from avoiding the mistake committed by Mayank, to enable him/her to achieve the objective of consumer protection? Enumerate any four points. (4 Marks)

29. The workers of 'Vyam Ltd' are unable to work on new and hi-tech machines imported by the company to fulfil the increased demand. Therefore, the workers are seeking extra guidance from the supervisor. The supervisor is overburdened with frequent calls from workers.

1. Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently. (1 Mark)
2. Also state any four benefits that the workers will derive from the decision of the supervisor. (3 Marks)

30. Give any four points of difference between financial and non-financial incentives. (4 Marks)

31. Analyze the importance of the four elements of the marketing mix in achieving a company's marketing objectives. How do these elements work together to enhance overall marketing effectiveness? (6 Marks)

OR 

Discuss the key factors that influence the pricing of a product or service, and explain how each factor impacts pricing decisions with relevant examples. (6 Marks)

Q32. Explain 'Objectives' and 'Budget' as types of plans. (6 Marks)

OR

Explain any four functions performed by a Stock Exchange and discuss how they contribute to the overall financial system. (6 Marks)

Q33. Explain the following characteristics of the Principles of Management: (6 Marks)

1. General guidelines
2. Flexible
3. Cause and effect relationship

OR

Explain the following techniques of Scientific Management: (6 Marks)

1. Method Study
2. Differential Piece Wage System
3. Fatigue Study

Q34. 'Memo Builders' was constructing a five-star hotel for a leading hotel chain. The hotel had to be given possession by next year, but the construction of the hotel was running six months behind schedule. The Chief Executive Officer of 'Memo Builders' was concerned, as Memo Builders was known for its quality and timely completion of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and reported to the Chief Executive Officer that, despite the huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective. Nitin ordered the repair of the machines and asked the Project Head to appoint additional workers with attractive wages to ensure that the deadline was met. (6 Marks)

1. Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
2. Also explain any two points of importance of the function of management identified in (a) above.

The End

Below are the links to more sample papers:

• Sample Paper 1
• Sample Paper 2
• Sample Paper 3