Free Business Studies - Class 12th (CBSE) - Sample Paper - SP1
- Class: XII
- Subject: BUSINESS STUDIES
- Time Allowed: 3 Hours
- Maximum Marks: 80
CBSE Class 12th Business Studies Question Paper
General instructions:
- This question paper contains 34 questions.
- 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. Which of the following statements shows the characteristic
of coordination of integrating group efforts and unity of action? (1)
- Both Reena and Meena make conscious efforts to develop a sense of togetherness, unity, and coordination among the various people with different objectives who work under them.
- Anju may devote more time to making plans for a dance show scheduled in a few days.
- Sita and Geeta must perform a series of continuous, composite, but different functions.
- Anju and Manju perform a process at the management level in various organisations in accordance with their individual areas of interest.
Q2. Glow Plastic Makers has decided to include a team of dynamic managers in the company. For this, they want to judge the pattern of interests of the potential managers.
After giving this test, they want to further know how useful the candidate is for the organisation.
They decide to take another test, which can measure the existing skills of the candidates.
Rakesh, an exceptional candidate, is given a certain document that contains information like job title, pay, allowances, responsibilities, etc.
After the employees join, they are given training. The company does not want to stop at ‘training,’ which is a job-related process.
They want to bring a concept that is a
career-related process. Identify the document that is given to Rakesh in the
above case. (1)
- Contract of employment
- Letter of relieving
- Experience letter
- Job description
Q3. ‘Ganga Namkeen’ offered its products at competitive prices, even while offering customer services like gift packaging and free home delivery, to become a household name.
Identify the factor affecting the element of the marketing mix being discussed above. (1)
- Objectives
- Extent of competition in the market
- Product cost
- Marketing methods used
Q4. Consumer protection adopts measures to protect consumers from unethical malpractices by businesses and provide a swift redressal of their grievances.
Which of the following malpractices is being depicted in the
picture below:
- Overcharging a product, i.e., charging a product above its Maximum Retail Price.
- Supplying defective goods.
- Use of malfunctioning weights and measures that lead to underweight of products.
- Supply of inferior services, i.e., quality of service less than the conditions agreed.
Assertion (A): The Government of India decided to set up a separate regulatory body known as the Securities and Exchange Board of India.
Reason (R): There is a need to prevent trading malpractices and achieve a balance of self-regulation by the securities industry and its statutory regulation.
- Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A)
- Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A)
- Assertion (A) is true, but Reason (R) is false
- Assertion (A) is false, but Reason (R) is true
Q6. Which of the following is the appropriate order of hierarchy
of needs according to Abraham Maslow? (1)
- Safety Needs → Basic Psychological Needs → Affiliation Needs → Esteem Needs → Self-actualisation Needs
- Affiliation Needs → Safety Needs → Basic Psychological Needs → Esteem Needs → Self-actualisation Needs
- Basic Psychological Needs → Safety Needs → Affiliation Needs → Esteem Needs → Self-actualisation Needs
- Basic Psychological Needs → Safety Needs → Esteem Needs → Affiliation Needs → Self-actualisation Needs
Q7. Payal was working in a multinational company. She gifted a smartphone worth Rs 40,500 to her daughter on her 15th birthday.
After a few months, the mobile phone started creating problems. Payal tried to contact the manufacturer many times, but he did not respond. Ultimately, Payal decided to file a complaint against the manufacturer.
The appropriate grievance redressal
machinery where Payal can file a complaint is: (1)
- District Commission
- State Commission
- National Commission
- Supreme Court
Q8. For the following two statements, choose the correct option: (1)
Statement I: Business Finance is indispensable for the survival and growth of business, for the production and distribution of goods, and for meeting day-to-day expenses, etc.
Statement II: It involves acquiring funds to buy fixed assets (tangible and intangible) and raw materials, and maintaining working capital.
- Statement I is true and Statement II is false
- Statement II is true and Statement I is false
- Both statements are true
- Both statements are false
Q9. Controlling is forward-looking because: (1)
- It is the post-mortem of past activities to find deviations from standards.
- It initiates corrective action to improve future performance.
- It ensures that employees know well in advance what they are expected to do.
- It ensures that resources are used in the most effective and efficient manner.
Q10. Which of the following is a demerit of functional structure?
(1)
- It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
- It may lead to a conflict of interest among departments due to varied interests.
- It leads to occupational specialisation.
- It may lead to difficulty in coordination among functionally differentiated departments.
Choose the correct answer from the options given below:
- A, B, and C only
- B, C, and D only
- A, C, and D only
- A, B, and D only
Q11. Which of the following is not a measure to overcome
communication barriers? (1)
- Clarify ideas before communicating
- Consult others before communicating
- Be a good listener
- No need for proper feedback
Q12. The on-the-job training method means: (1)
- Learning while doing
- Learning before doing
- Both (a) and (b)
- Neither (a) nor (b)
Q13. What may be prepared to show the number of workers required
in the factory at peak production times? (1)
- Objective
- Programme
- Budget
- Policy
Q14. For the following two statements, choose the correct option: (1)
Statement I: For any exchange to take place, it is important that there must be a buyer and a seller
Statement II: Exchange can take place even if the buyers and sellers are not
able to communicate with each other.
- Statement I is true and Statement II is false
- Statement II is true and Statement I is false
- Both statements are true
- Both statements are false
Q15. Plastic utensils are often used as a low-cost, convenient option for business or personal use. These utensils are lightweight, easy to transport, and can be disposed of easily instead of being cleaned and reused.
But plastic utensils are harmful to health and create various environmental issues. Nowadays, the health and fitness trend is becoming popular.
People are looking for different alternatives and have started opting for paper-made or steel utensils, which has tremendously increased the demand for these products.
The above paragraph discusses an important dimension of Business Environment,
which is: (1)
- Economic environment
- Social environment
- Technological environment
- Political environment
Q16. Focusing on achieving objectives indicates that planning:
(1)
- It is a purposeful activity.
- It extends throughout the organisation.
- It is a future-oriented activity.
- It is the first element of the management process.
Q17. A production manager at the top level in a reputed company, Mr. Rathore, holds the responsibility for ordering raw material for the firm.
While deciding on the supplier for the financial year 2025-26, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier, who was willing to lower the rates for the order.
Which principle of
management was violated by Mr. Rathore? (1)
- Principle of Equity
- Principle of Order
- Principle of Discipline
- Principle of Subordination of Individual Interest to General Interest
| Column I | Column II |
|---|---|
|
|
Alternatives:
- A (ii) B (i) C (iv) D (ii)
- A (iv) B (i) C (iv) D (iii)
- A (iv) B (i) C (ii) D (iii)
- A (iv) B (ii) C (ii) D (i)
Q19. Which of the following is a type of non-financial incentive?
(1)
- Retirement benefits
- Fringe benefits
- Organisational climate
- Co Partnership/stock option
Q20. In a school quiz competition, the participants were shown empty packets of chocolates and were asked to identify the brands.
All the
participants were able to do so. Identify the point highlighting the importance
of packaging, which is being described in the given case. (1)
- Rising standards of health and sanitation
- Facilitates product differentiation
- Innovational opportunity
- Useful in self-service outlets
Q21. Suman Mahajan is one of the most successful entrepreneurs in the field of stylish home furnishings. Her venture ‘Décor Ltd.’ highlights the tag line ‘My Sweet Den’ is much used for her promotions.
She uses her creativity and initiative in handling challenging customer preferences. She applies her knowledge and skills that she had gained in her initial years of work by assisting Mr. Ashok Chandra, an interior decorator of repute.
She has a happy fan following of customers due to her promptness in delivering orders. An aspect of the nature of management is highlighted in the above case.
Identify the aspect and explain any two features of it. (3)
OR
Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an accident in childhood. They meet after a long time in a restaurant.
On being asked, Sanjay tells Ajay that he feels very discontented in managing his family business after the death of his father, as it does not match his areas of interest.
Ajay knows that Sanjay possesses extraordinary skills in management, although he has not acquired any professional degree in management.
Therefore, he asks Sanjay to wind up his business in India and join him in his hotel business in Dubai as an Assistant Manager in the Sales and Marketing Division.
In the context of the above case, can Sanjay be deployed at the post of Assistant Manager in the Sales and Marketing Division, though he has not acquired any professional degree in management?
Explain by giving
suitable justifications in support of your answer. (3)
Q22. Tushar recently completed a course in marketing communication and brand building.
He feels that in today’s digital era, most companies wish to expand digitally by advertising through digital channels and social media marketing.
On the other hand, he finds that with low social media agency houses a firm needs to make a low investment in fixed capital.
Suggest
how the decisions related to the choice of techniques and financing
alternatives can help Tushar in ensuring a low investment in fixed capital requirements.
(3)
Q23. The attitudes, skills, and abilities of employees to
perform specific jobs are increased by adopting a specific process. This
process benefits the organisation in many ways. State any three benefits of
this process to the organisation. (3)
OR
‘Maintaining labour relations and union-management
relations’ is one of the specialised activities performed by Human Resource
Management. Mention any three specialised activities of Human Resource
Management. (3)
Q24. The sales manager of Sell Well Ltd. visited a hospital to sell his company’s products. The purchase manager of the hospital was keen to purchase the products for all the branches of his hospital across India, but he asked the sales manager to give a 30% discount.
Though the manager knew that his company and the company would be able to make profits even after giving a 30% discount, he could not offer prices better than the price he had been given by the sales director.
He tried to contact the director but he was unavailable. As a result, the order could not be finalised.
Identify and explain the
limitations of planning that the sales manager had to face while discussing
orders with the prospective customer. (3)
Q25. Identify and state the various elements of the Organising process highlighted in the following cases: (4)
- Arnav divides the work into manageable activities. Which element is highlighted in Arnav’s decision?
- Harshit groups similar and related jobs into larger units called departments, divisions, or sections and places them under a department head. What prompts Harshit to do so?
- Suraj assigns jobs to an individual based on their optimal skill sets. What underlies this approach for assigning jobs?
- Gagan says each individual should know who he has to take orders from and to whom he is accountable. What is the underlying rationale for this perspective?
Q26. Differentiate between formal and informal communication,
clearly stating the basis of distinction. (4)
Q27. Harsha purchased a food processing machine for ₹3,000 from Kajal Machinery Pvt. Ltd. She found that the machine was not working properly.
Despite many complaints, the defect was not rectified by Kajal Machinery Pvt. Ltd. (1+1+2)
- Identify the consumer right that has been violated by Kajal Machinery Pvt. Ltd.
- Suggest the appropriate forum where Harsha can file her complaint.
- To whom and within how many days the parties can appeal if not satisfied by the order of the forum identified in (b).
OR
Give the meaning of the term ‘Consumer’ as per the Consumer Protection Act 2019. Who can file a complaint in case of dissatisfaction with a product? (2+2)
Q28. Viyo Ltd. is a company that manufactures textiles. It has a share capital of ₹60 lakhs divided into 6 lakhs shares of ₹10 each.
The earnings per share in the previous year were ₹0.50. For diversification, the company requires additional capital of 40 lakhs.
The company raised funds by issuing 10% debentures for the same. During the current year, the company earned a profit of 6 lakhs, and its capital employed is 40 lakhs.
State whether the shareholders gained or lost, in respect of earnings per share, on diversification.
Show your calculations clearly. (4)
Q29. How does decentralisation ‘Develop managerial talent’ and ‘Lead to better control’? (4)
OR
How does delegation of authority ‘Motivate employees’ and ‘Lead to better coordination’? (4)
Q30. Saran is working as a production manager in CFL Ltd., which manufactures CFL bulbs.
There is no class conflict between the management and workers. The working conditions are very good.
The company is earning huge profits. As a policy, the management shares the profit earned with the workers because they believes in the prosperity of the employees.
Identify and discuss the principle of scientific management described in the above paragraph. (4)
Q31. Michal John is a sole proprietor in Nicobar. He started trading after getting an MBA degree.
He is fully familiar with all the functions of management. He starts his business with the planning function of management.
He desires that all his activities should conform to planning. To this effect, he has adopted a system that keeps a constant watch on all activities of business.
Consequently, there is no possibility of adverse results. In the end, therefore, he said that this method is directly related to the results.
Mr. John also believes that this method applies not only to any one level of management but to all the levels.
- Identify and define the function of management referred to in the above paragraph. (4)
- Describe three features of the function of management as identified in part (a) above. (6)
- Order Processing
- Transportation
- Warehousing
OR
Differentiate between Advertising and Personal Selling on any six bases.
Q33. Eco-friendly products are gaining importance as consumers’ awareness about environmental issues has increased over the years, and they are conscious about choosing products that do not have adverse effects on the environment.
They are now more conscious about the effects of carbon emissions and climate change, and want a minimal carbon footprint.
The concept of recycling has also evolved, and it has become a challenge for companies to cope with it in a meaningful way.
In such a scenario, consumers ensure that their products are safe not only for society but also to meet the needs of the consumers by using better and advanced technologies to work as a catalyst in this regard.
- Identify and explain the relevant features of the business environment being discussed above. (6)
- Describe any three features of the business environment other than those highlighted above. (6)
Q34. Due to various malpractices and multiplied investors' grievances, the Government of India decided to set up a separate regulatory body to protect the interests of investors and to regulate the securities market.
Identify the regulatory body set up by the Government of India for the above-stated purpose.
Also, state its five regulatory functions. (6)
