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CBSE EXAM 2025 20 Sets

Class : 12th
Sub : Business Studies

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Disclaimer: These papers are based on the SQP released by CBSE and
published by a private organization just for the practice of the students.
CBSE has not released these papers and CBSE is not related to these papers
in any manner. Publisher of these papers clearly state that these paeprs
are only for practice of students and questions may not be come in main
exam.
Page 1 Sample Paper 01

Sample Paper 01
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. GreenLeaf Organics Pvt. Ltd., founded by Ms. Ananya Sharma, specializes in organic food
products. Recognizing the competitive market, Ms. Sharma emphasized the concept of
management to achieve sustainable growth. She set clear objectives: expanding the product
line, increasing market share by 15%, and enhancing employee satisfaction.
At the top level of management, Ms. Sharma focused on strategic planning and setting long-
term goals aligned with the company’s vision. Middle-level managers translated these strategies
into actionable plans, coordinating between departments like production, marketing, and HR.
They efficiently allocated resources and monitored progress to ensure targets were met. Lower-
level managers supervised daily operations, ensuring tasks were completed effectively and
maintaining quality standards.
GreenLeaf emphasized effectiveness by achieving its expansion goals and efficiency by
optimizing resource utilization. Management was treated as both a science through systematic
processes and an art by encouraging creative problem-solving. Coordination was maintained
through regular inter-departmental meetings, ensuring smooth workflow and alignment with
organizational objectives. This comprehensive management approach led to successful product
launches, increased market presence, and high employee morale, establishing GreenLeaf as a
trusted brand in the organic market.
Which aspect of management is demonstrated by Ms. Sharma organizing GreenLeaf Organics
into specialized departments to achieve common goals?
(A) Planning (B) Organizing
(C) Leading (D) Controlling

2. EliteConsulting Pvt. Ltd., led by CEO Ms. Neha Sharma, focuses on providing strategic business
solutions. Understanding the concept of principles of management, Ms. Sharma established
foundational guidelines to streamline operations. These principles include clear communication,
defined roles, and continuous improvement. By adhering to these management principles,
EliteConsulting ensures consistency, efficiency, and high-quality service delivery, fostering a
productive work environment and achieving organizational goals effectively.

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Page 2 Sample Paper 01 CBSE 12th Business Studies

What does EliteConsulting Pvt. Ltd. exemplify by establishing foundational guidelines like
clear communication and defined roles?
(A) Leadership
(B) Innovation
(C) Principles of Management
(D) Marketing strategies

3. What does the term “business environment” refer to?

(A) Internal factors affecting business
(B) External factors influencing business decisions
(C) Factors related to marketing strategies
(D) None of the above

4. BrightFuture Education Pvt. Ltd., led by CEO Mr. Ramesh Gupta, focuses on expanding
its online learning platforms. Understanding the concept of planning, Mr. Gupta initiated a
strategic plan to launch new courses and enter international markets within the next two years.
This plan involved setting specific goals, allocating resources, and outlining the steps needed
to achieve expansion. By systematically approaching growth, BrightFuture ensures organized
progress and aligns its operations with long-term objectives.
What is BrightFuture Education Pvt. Ltd. demonstrating by initiating a strategic plan to
launch new courses and enter international markets?
(A) Organizing (B) Leading
(C) Planning (D) Controlling

5. The process of establishing authority relationships in an organization is known as:

(A) Delegation (B) Organizing
(C) Planning (D) Directing

6. BrightPath Logistics, under the leadership of CEO Ms. Anjali Sharma, recognizes the
importance of staffing in achieving operational excellence. By recruiting skilled drivers, efficient
warehouse managers, and competent support staff, BrightPath ensures smooth and timely
deliveries. Effective staffing reduces turnover rates, enhances employee morale, and increases
overall productivity. Additionally, a well-staffed organization can better handle peak seasons
and unexpected challenges, maintaining high service standards and customer satisfaction.
How does effective staffing contribute to BrightPath Logistics’ operations?

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Page 3 Sample Paper 01

(A) By increasing operational costs

(B) By reducing employee morale
(C) By enhancing productivity and service standards
(D) By limiting the ability to handle peak seasons

7. Assertion (A): Maslow’s Hierarchy of Needs is used to understand employee motivation.

Reason (R): According to Maslow, self-actualization needs are the first to be satisfied.
Options:
(A) Both A and R are true and R explains A
(B) Both A and R are true but R does not explain A
(C) A is true but R is false
(D) Both A and R are false

8. EcoDrive Motors, led by CEO Mr. Rajesh Kumar, develops eco-friendly vehicles. During the
planning phase, the company sets targets for production volumes, market expansion, and
sustainability goals. In the controlling phase, EcoDrive monitors actual production and sales
against these targets. By comparing outcomes with the original plan, EcoDrive identifies
deviations and implements corrective actions to stay on track with its strategic objectives.
How does EcoDrive Motors demonstrate the relationship between planning and controlling?
(A) By solely focusing on setting production targets
(B) By ignoring deviations from the plan
(C) By comparing actual performance with planned targets and taking corrective actions
(D) By decentralizing decision-making

9. Concerning the factors affecting the requirements of fixed and working capital, identify the
correct statements.1Business expansion increases the need for fixed capital.
2 High inventory levels reduce working capital requirements.
3 Technological advancements can influence fixed capital needs.
4 Seasonal variations affect working capital requirements.
Which of the following is/are correct?
(A) 1 and 3
(B) 1, 3, and 4
(C) 2 and 4
(D) All are correct

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Page 4 Sample Paper 01 CBSE 12th Business Studies

10. A government issues bonds to finance infrastructure projects. The bonds offer a 3% annual
interest rate, and investors are assured that their principal amount will be returned at maturity.
The government is rated AAA by credit agencies, indicating a low risk of default.
What is the primary characteristic of these bonds?
(A) High-risk investment (B) Fixed interest payments
(C) No guarantee of principal (D) Fluctuating interest rates

11. Read the following statements carefully:

Statement I: Branding helps in product differentiation.
Statement II: Packaging has no role in promoting a product.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Coordination is considered the essence of management.
Statement II: Coordination is required only at the top level of management.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in the process of Scientific Management according to
Taylor:
1 Analyze the task.
2 Develop a work standard.
3 Train the workers.
4 Implement the method.
(A) 1, 2, 3, 4
(B) 2, 1, 3, 4
(C) 1, 3, 2, 4
(D) 4, 3, 2, 1

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Page 5 Sample Paper 01

14. Match the list I with list 2 and select correct option.
List I List II
a. Legal Environment ii GDP and inflation
b. Economic Environment iii Innovations and IT developments
c. Technological Environment iv Demographic trends
d. Social Environment i Government regulations
Options:
(A) a-i, b-ii, c-iii, d-iv
(B) a-iv, b-iii, c-ii, d-i
(C) a-ii, b-i, c-iv, d-iii
(D) a-iv, b-i, c-ii, d-iii

15. Objectives in planning should be:

1 Vague and general.
2 Specific and measurable.
3 Unrelated to the organization’s goals.
4 Focused solely on short-term outcomes.
Which of the following is/are correct?
(A) Only 1 (B) Only 2
(C) 1 and 3 (D) 2 and 4

16. Identify the process illustrated by the picture above in which the superior Mrs. Saloni is
providing a part of his authority to Ruhi for making decisions.

(A) Power (B) Authority

(C) Delegation (D) None of these

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Page 6 Sample Paper 01 CBSE 12th Business Studies

17. Which statement is correct regarding on-the-job training?

(A) On-the-job training occurs outside the actual work environment.
(B) On-the-job training allows employees to learn by performing their job under supervision.
(C) On-the-job training is always conducted in classrooms.
(D) On-the-job training is unrelated to employees’ actual job tasks.

18. Which of the following statements about Maslow’s Hierarchy of Needs is correct?
(A) Physiological needs are at the top of the hierarchy.
(B) Self-actualization needs are the lowest level of needs.
(C) Social needs must be satisfied before safety needs.
(D) Esteem needs are higher than safety needs.

19. Which of the following statements is NOT correct about the concept of controlling?
(A) Controlling involves setting performance standards.
(B) Controlling ensures activities are completed as planned.
(C) Controlling is only relevant in large organizations.
(D) Controlling includes measuring actual performance.

20. Which of the following statements about capital structure is not correct?
(A) Capital structure refers to the mix of debt and equity financing.
(B) A higher proportion of debt in capital structure always reduces the company’s financial
risk.
(C) Equity financing does not require repayment.
(D) Capital structure decisions impact the company’s cost of capital.

21. “If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by
many”. How?

22. Which marketing management philosophy lays more emphasis on the consumer welfare rather
than the consumer satisfaction? How is it different from the Production Concept?

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Page 7 Sample Paper 01

23. Rajesh was working as a First Line Manager. At which level of management was he working?
State any two functions performed at that level.


O
Nowadays the market offers a lot of opportunities to the marketers as the customer income is
rising. People have developed a taste for better quality products even though they may have to
pay more. Their aspiration levels have increased.
(a) Which dimension of business environment is being referred to?
(b) Explain one more dimension of business environment with example.

24. What is meant by ‘Financial Management’ ? State its objective.

O
It is that component of Financial market, in the absence of which the primary market will
become unattractive as there will be no liquidity. Identify the type of Financial market and list
its two functions.

25. In an organisation the morale of the employees is very low in-spite of the different financial
incentives offered to them. The organisation does not provide any developmental opportunities
to them. Neither they are involved in the decision making nor their work appreciated by the
top level management.
(a) Why is the morale of employees low?
(b) State the different incentives that the organisation should offer by giving reference to the
relevant lines.

26. Explain the concept of Democratic style of leadership and state its any two features.


O
‘An ideal controlling technique is the one that checks each and every stage in the process of
production.’ Comment.

27. Elctroreck limited is in the business of manufacturing and exporting untransformed. It has
a share capital of ` 80 lacs at the face value of ` 100 each. Company is considering a major
expansion of its production facilities and wants to raise ` 60 lacs. The finance manager of the
company Mr. Dinkar has recommended that the company can raise funds of the same amount
by issuing 8 % debentures. Given that earning per share of the company after expansion is `
35 and tax rate is 30%, did Mr. Dinkar give a justified recommendation? Show the working.

28. In an organisation different workers completed the same task by adopting different methods,
involving different movements and took different amount of time. This led to a lot of variation
in the type of work performed and the output produced. To do away with this, Rakesh, the
manager decided to eliminate unnecessary diversity of products and find out the best way of
doing the job. Various studies were undertaken to determine standard way and time of doing
a work.

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Page 8 Sample Paper 01 CBSE 12th Business Studies

Explain any two techniques of Taylor used by Rakesh.

O
Harish Sharma set up a small factory manufacturing toys. To begin with he employed 12 people
who had the experience of working in small factories. He was a strict task master. He kept all
the decision making power with himself. The employees were frequently leaving the job as they
were not satisfied about his way of dealing with them and as such Harish faced a lot of problems
tackling the employees. He then appointed a Manager who through his experience, creativity
and personalized way created an atmosphere of complete co-operation and coordination which
led to the achievement of goals.
(a) Which principles of management were ignored by Harish? Identify by quoting the lines.
(b) What does the manager’s way of dealing tell about the nature of management? Discuss.

29. Give your argument in the support that success of a business enterprise is significantly influenced
by its environment?

30. State and explain any four points of importance of planning.

31. After laying down the plans, a function is initiated to lay down the organisational structure.
Explain the importance of this function in management.


O
Planning is deciding in advance the future course of action. Explain briefly what all needs to
be done to make effective and efficient plans.

32. A company was marketing ‘water purifiers’ which were very popular due to their quality and
after sales services provided to the customers. The company was a leading company in the
market and earning huge profits. Because of huge profits, the company ignored the after sales
services. As a result, its relations with the customers got spoiled and the image of the company
was damaged in the public. Top management became concerned when the profits for the
current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services
was its reason. Therefore, the company took all possible measures to protect and promote its
favourable image in the eyes of the public. As a result, the goodwill of the company improved
in the society.
(a) Name and state the communication tool used by the marketer in the above case to
improve its image.
(b) Also explain role of the tool as identified in part (a).

33. A company wants to replace its old machinery with new hi tech machines available in the
market. For this, it will have additional funds requirement of at least ` 50 Crores. As a Finance
Manager, help the company in deciding the right source for raising the money by explaining
the different factors that impact such a decision.

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O
Market ‘A’ involves the sale of securities by the new companies or further issue of securities by
the existing companies to the investors, whereas Market ‘B’ involves the purchase and sale of
existing securities.
Identify the Market ‘A’ and Market ‘B’ highlighted here and differentiate between the two on
any five basis.

34. Blue Heavens Private Limited purchased a new hi-tech machine from Germany for manufacturing
high quality auto components in a cost effective manner. But during the production process,
the manager observed that the quality of production was not as per standard. On investigation
it was found that there was lack of knowledge amongst the employees of using these hi-tech
machines. So, frequent visit of engineers was required from Germany. This resulted in high
overhead charges.
Suggest what can be done to develop the skills and abilities of employees for producing
high quality products by using these hi-tech machines. Also state how the employees or the
organization will benefit from your suggestion.

******

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Page 1 Sample Paper 02

Sample Paper 02
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. FreshFarms, an organic produce company, launched a new line of organic juices targeting health-
conscious consumers. The marketing team developed a comprehensive promotion strategy that
included social media campaigns, influencer partnerships, and in-store sampling events. They
emphasized the health benefits and natural ingredients of the juices to attract their target
audience.
Additionally, FreshFarms set competitive pricing to appeal to a broader market while ensuring
product quality. The products were distributed through both online platforms and retail stores
to maximize reach and convenience for customers. Customer feedback was actively sought
and used to refine marketing strategies and improve product offerings. The company also
collaborated with health and wellness bloggers to enhance brand visibility. This integrated
marketing approach successfully increased brand awareness, boosted sales, and established
FreshFarms as a trusted name in the organic market. By effectively utilizing promotion,
FreshFarms was able to connect with consumers and differentiate its products in a competitive
landscape.
Which marketing activity is exemplified by FreshFarms highlighting the health benefits and
natural ingredients of their organic juices in their campaigns?
(A) Product development (B) Pricing strategy
(C) Promotion (D) Distribution

2. EcoHome Solutions Pvt. Ltd., led by CEO Ms. Priya Kapoor, specializes in eco-friendly home
appliances. Understanding the concept of marketing, Ms. Kapoor ensures that the company not
only focuses on product development but also on creating awareness and generating demand
among environmentally conscious consumers. EcoHome employs market research to identify
customer needs, develops targeted marketing campaigns, and engages in strategic pricing to
position its products effectively in the market. This comprehensive approach helps EcoHome
build a strong brand presence and achieve sustainable growth.
What aspect of EcoHome Solutions Pvt. Ltd.’s operations exemplifies the concept of marketing?


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Page 2 Sample Paper 02 CBSE 12th Business Studies

(A) Developing eco-friendly products

(B) Conducting market research and targeted campaigns
(C) Manufacturing home appliances
(D) Managing internal finances

3. Management is considered a __________ because it involves a series of interrelated

functions aimed at achieving organizational goals.
(A) Science (B) Art
(C) Process (D) Profession

4. HealthPlus Hospitals, under the leadership of Dr. Anil Gupta, implemented Henri Fayol’s
principles of management to enhance operational efficiency. By following principles like
division of work, authority and responsibility, and unity of command, HealthPlus streamlined
its administrative processes. This implementation led to reduced operational redundancies,
improved patient care, and increased staff morale, highlighting the significance of management
principles in achieving organizational excellence.
How did HealthPlus Hospitals benefit from implementing Fayol’s principles of management?
(A) Increased product variety
(B) Enhanced operational efficiency and improved patient care
(C) Expanded market reach
(D) Reduced marketing costs

5. Why is the business environment important?

(A) It determines the pricing strategy
(B) It shapes consumer preferences
(C) It helps businesses anticipate changes and adapt
(D) It ensures employee satisfaction

6. EcoBuild Construction, headed by Ms. Anika Sharma, embarked on a large-scale housing

project. Recognizing the importance of planning, Ms. Sharma developed a detailed project
plan outlining timelines, budgets, resource allocation, and risk management strategies. This
meticulous planning ensured timely completion, stayed within budget, and effectively addressed
potential challenges, thereby enhancing the project’s success and the company’s reputation.
How did EcoBuild Construction benefit from recognizing the importance of planning in their

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Page 3 Sample Paper 02

large-scale housing project?

(A) By reducing the workforce
(B) By ensuring timely completion and staying within budget
(C) By avoiding the use of technology
(D) By eliminating the need for risk management

7. Assertion (A): Delegation reduces the managerial workload.

Reason (R): By assigning tasks to subordinates, managers can focus on higher-level strategic
activities.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

8. GreenLeaf Agro Industries integrates staffing as a crucial component of its Human Resource
Management (HRM) strategy. The HR team undertakes specialized duties such as workforce
planning, talent acquisition, and employee retention programs. By aligning staffing activities
with HRM objectives, GreenLeaf ensures that it attracts and retains top talent, fosters a
positive work environment, and supports its long-term business goals. This comprehensive
approach to staffing contributes to the company’s growth and stability in the competitive
agricultural sector.
How does GreenLeaf Agro Industries integrate staffing within its Human Resource Management
(HRM) strategy?
(A) By focusing only on recruitment
(B) By neglecting employee retention
(C) By aligning staffing activities with HRM objectives
(D) By outsourcing all HR functions

9. Asertion (A): Transactional leadership focuses on managing performance through rewards and
punishments.
Reason (R):Transactional leaders encourage employees to exceed their personal interests for
organizational goals.-

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Page 4 Sample Paper 02 CBSE 12th Business Studies

Options:
(A) Both A and R are true and R explains A
(B) Both A and R are true but R does not explain A
(C) A is true but R is false
(D) Both A and R are false

10. ABC Manufacturing Ltd. set a monthly production target of 10,000 units. At the end of March,
the actual production was 9,500 units. The management decided to analyze the reasons behind
the shortfall and implement corrective measures to meet the next month’s target.
Based on the case study, which step of the controlling process is ABC Manufacturing Ltd.
performing?
(A) Establishing standards
(B) Measuring actual performance
(C) Comparing performance with standards
(D) Taking corrective actions

11. Read the following statements carefully:

Statement I: Working capital management deals with short-term financial decisions.
Statement II: Higher inventory levels always improve liquidity.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Dematerialization is the process of converting physical shares into electronic form.
Statement II: National Stock Exchange (NSE) was established to provide a modern, fully
automated screen-based trading system.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.
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Page 5 Sample Paper 02

13. Arrange the following steps in the correct sequence for the New Product Development Process:
1 Idea Generation
2 Business Analysis
3 Product Development
4 Test Marketing
Options:
(A) 1 - 2 - 3 - 4 (B) 1 - 3 - 2 - 4
(C) 1 - 2 - 4 - 3 (D) 1 - 2 - 3 - 4

14. Match the list I with list 2 and select correct option.
List I List II
a. Organizational Objective i Ensuring long-term success
b. Social Objective ii Economic development of society
c. Personal Objective iii Satisfaction of employees
d. Growth Objective iv Survival, profit, and growth
Options:
(A) a-ii, b-i, c-iv, d-iii; (B) a-iv, b-ii, c-iii, d-i;
(C) a-i, b-iv, c-ii, d-iii; (D) a-iii, b-i, c-iv, d-ii

15. Which of the following is/are correct regarding the significance of management principles?
1 They provide a framework for managerial decision-making.
2 They eliminate the need for strategic planning.
3 They help ensure consistency in management practices.
4 They can adapt to various organizational contexts.
(A) Only 1 and 2 (B) Only 1, 3, and 4
(C) Only 2 and 3 (D) All 1, 2, 3, and 4

16. Identify the communication which may take place between a superior and subordinate, a
subordinate and superior or among same cadre employees or managers.

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Page 6 Sample Paper 02 CBSE 12th Business Studies

(A) Formal communication (B) Grapevine

(C) Informal communication (D) Horizontal communication

17. Which of the following statements is true about objectives in planning?

(A) They are broad and vague.
(B) They provide a clear direction for activities.
(C) They are only relevant for top management.
(D) They focus solely on short-term goals.

18. Which of the following statements correctly explains the importance of organizing in management?
(A) Organizing ensures that managers can control all activities without delegation.
(B) Organizing helps in coordinating and harmonizing the activities of different departments
to achieve organizational goals.
(C) Organizing primarily focuses on employee motivation.
(D) Organizing eliminates the need for planning in management.

19. Which of the following is not a function of Human Resource Management (HRM) in staffing?
(A) Recruitment (B) Financial auditing
(C) Selection (D) Training and development

20. Which of the following statements about Maslow’s Hierarchy of Needs is NOT correct?
(A) Physiological needs are the most basic needs in Maslow’s hierarchy.
(B) Safety needs include job security and protection from danger.
(C) Self-actualization needs are satisfied before social needs.
(D) Esteem needs involve recognition and respect from others.

21. Differentiate between Functional and Divisional Structure.

O
How does planning lead to economy and efficiency? Explain briefly.

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Page 7 Sample Paper 02

22. Explain the type of training that is suitable to train the employees to handle highly sophisticated
machinery and equipments.


O
Identify and explain the importance of a concept of management which aims at distribution of
decision making responsibility among various hierarchical levels.

23. Stock exchange acts as a regulator of the securities market. It creates a continuous market
where the securities are bought and sold. It gives investors the chance to disinvest and reinvest.
Through this process of disinvestment and reinvestment, savings get channelized into their
most productive investment avenues. To ensure that the investing public gets a safe and fair
deal in the market, the membership of the stock exchange is well regulated and its dealings are
well defined according to the existing legal framework. It also ensures wider share of ownership
by regulating new issues, better trading practices and taking effective steps in educating the
public about investments.
Identify and state any three functions performed by the Stock Exchange discussed in the above
para.

24. A construction company got a contract for constructing a foot-over bridge. It appointed an
engineer to take charge of the same. The engineer was instructed that the work should be
completed within a period of two months with the maximum cost of ` 5,00,000. Any negative
variation in the cost beyond 5% should be brought to the notice of authorities immediately.
He was also asked to keep a special check on the supply of construction material as if it is not
supplied in time then, the entire project would get delayed.
Which concept(s) is/are being referred to in the given case? Discuss.

25. Explain the concept of Democratic leadership and state its features.


O
Write a short note on any four types of employment tests.

26. What are the functions of packaging?

27. Describe the concept of Authoritative leadership and state its features.


O
Explain the concept of Democratic leadership and state its features.

28. Rajesh bought a car worth ` 17,50,000. After driving it, she found that the AC of the car
stopped functioning. She approached the dealer who refused to look into the matter.
(a) Suggest her suitable authority where she can file a complaint under the Consumer
Protection Act, 2019.
(b) What procedure will be followed by the concerned authority to redress her grievance?

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Page 8 Sample Paper 02 CBSE 12th Business Studies

29. NODIA Solution Private Limited is in the business of software solutions. It has a share capital
of ` 70 lacs at the face value of ` 100 each. Company is considering a major expansion of
its production facilities and wants to raise ` 50 lacs. The chief financial officer (CFO) the
company has recommended that the company can raise funds of the same amount by issuing
7% debentures. Given that earning per share of the company after expansion is ` 35 and tax
rate is 30%, did CFO give a justified recommendation? Show the working.

30. Malini is a well-known businesswoman in the field of publishing. She owes the success of her
business to her own education in business management and her team of certified management
consultants. Therefore, she decides to send both her children Darshit and Pihu abroad to
acquire a degree in business management in their individual area of expertise. She feels that
all over the world there is marked growth in management as a discipline, but still it is not
considered to be a full-fledged profession for certain reasons.
(a) Explain the reasons because of which Malini considers management as a discipline.
(b) Critically examine the various reasons because of which management is not considered to
be a full-fledged profession.

31. Why is it that organisations are not always able to accomplish all their objectives?


O
What are the steps taken by management in the planning process?

32. Explain the trading procedure or steps on a stock exchange.

O
Explain the various Money Market instruments.

33. SolarPower Private Limited (SPL), an electric equipment company, had the vision of becoming
the national leader in the supply of solar equipments. To fulfil its mission, it had already set up
a plant to manufacture solar equipments. The company realised that the marketing efforts need
to be improved and given due importance as the demand and the usage of solar equipments is
less in the country. Therefore, to concentrate more on marketing than production, it outsourced
the work of preparing the solar panel to a multi-national company named Solar House. First
year saw a dramatic increase in the demand followed by regular supply. However, it could not
continue for longer as the main company Solar Power Inc., headquartered in Japan, faced a
financial crisis and filed for bankruptcy. This led to a question mark on the vision of SPL.
(a) Which limitation of Planning is being highlighted in the above case?
(b) Discuss any five other limitations of Planning.

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Page 9 Sample Paper 02

34. Nihit approached Thomas Book, a Tour and Travel Company, to inquire about Europe tour
packages available during summer vacations. The tour coordinator, Rashmi, mentioned five
different packages with different combinations of number of day/night packages. He selected
one package of combination of Switzerland and Paris for 6 night/7 days and completed the
procedure for the tour by submitting all the necessary documents along with the payment. He
also asked about category of hotels (3 star or 4 star), climate of the touring countries, currency
of these countries, date of departure, name of the flight, any precaution to be taken, etc.
(a) Identify and briefly explain the consumer rights which Nihit availed above.
(b) Mention any three responsibilities that a consumer should always keep in his mind while
purchasing any good or availing service.

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Page 1 Sample Paper 03

Sample Paper 03
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. LogiTrans, a logistics company, implemented a robust controlling system to ensure timely

deliveries and high customer satisfaction. The management set specific performance standards
for delivery times and accuracy. Utilizing GPS tracking and automated reporting tools,
LogiTrans continuously measured actual performance against these standards. Monthly reviews
were conducted to compare performance with benchmarks.
When discrepancies such as delayed deliveries or incorrect shipments were identified, LogiTrans
conducted root-cause analyses to determine the underlying issues. Corrective actions included
optimizing delivery routes using advanced software and providing additional training to drivers
to enhance their efficiency. The company also introduced incentive programs for drivers who
consistently met or exceeded delivery targets. This systematic approach to controlling enabled
LogiTrans to maintain high service quality, reduce operational inefficiencies, and build strong
customer trust. By effectively taking corrective action, the company ensured continuous
improvement and sustained operational excellence.
What step in the controlling process is illustrated by LogiTrans implementing corrective actions
after identifying delayed deliveries?
(A) Setting performance standards
(B) Measuring actual performance
(C) Comparing performance with standards
(D) Taking corrective action

2. AlphaTech Solutions Pvt. Ltd., led by CEO Mr. Ravi Sharma, is a tech startup focused on
developing innovative software solutions. Understanding the concept of financial management,
Mr. Sharma emphasizes effective management of the company’s financial resources. This
involves budgeting, forecasting, and overseeing financial operations to ensure the company’s
growth and sustainability. By prioritizing financial management, AlphaTech can make informed
decisions, allocate resources efficiently, and maintain financial stability amidst the competitive
tech industry.

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Page 2 Sample Paper 03 CBSE 12th Business Studies

What aspect of AlphaTech Solutions Pvt. Ltd.’s operations exemplifies the concept of financial
management?
(A) Developing new software features
(B) Hiring new employees
(C) Budgeting and forecasting financial resources
(D) Marketing their products

3. What is a key advantage of investing in index funds?

(A) High management fees (B) Diversification across many securities
(C) Active management by fund managers (D) Concentration in a single asset

4. BrightWave Electronics, under the leadership of Mr. Anil Verma, leverages the features of
marketing to enhance its market share in the competitive electronics industry. The company
emphasizes customer orientation by tailoring products to meet consumer preferences. It
integrates technology in its marketing strategies, uses data analytics for market segmentation,
and maintains a strong distribution network to ensure product availability. Additionally,
BrightWave focuses on continuous innovation and relationship building with customers,
embodying key marketing features that drive its success.
Which feature of marketing is BrightWave Electronics demonstrating by tailoring products to
meet consumer preferences?
(A) Production orientation (B) Customer orientation
(C) Sales orientation (D) Product orientation

5. Which of the following best describes the ‘Scientific Management’ approach?

(A) Emphasizing human relations and employee needs
(B) Applying scientific methods to improve efficiency
(C) Focusing on organizational structure and hierarchy
(D) Considering the organization as a social system

6. TechWave Solutions, a software development firm, adopted Henri Fayol’s division of work
principle to increase productivity. By assigning specialized roles to developers, testers, and
project managers, TechWave ensured that each employee focused on their expertise. This
specialization led to higher quality software products, faster project completion times, and
increased overall efficiency within the organization.


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Which Fayol’s principle is TechWave Solutions applying by assigning specialized roles to

different employees?
(A) Unity of Command (B) Division of Work
(C) Scalar Chain (D) Esprit de Corps

7. Assertion (A): The social environment influences consumer preferences.

Reason (R): Social trends, cultural values, and demographics determine how businesses shape
their marketing strategies.
(A) Both assertion and reason are true, and reason is the correct explanation of the assertion.
(B) Both assertion and reason are true, but reason is not the correct explanation of the
assertion.
(C) Assertion is true, but reason is false.
(D) Both assertion and reason are false.

8. TechWave Innovations, a tech startup, created an extensive plan to launch a new smartphone.
However, unforeseen market shifts and rapid technological changes rendered parts of the plan
obsolete shortly after implementation. This scenario highlights the limitations of planning,
where rigid plans may fail to adapt to dynamic environments, leading to potential setbacks
despite thorough initial planning.
What limitation of planning is illustrated by TechWave Innovations’ experience with their new
smartphone launch?
(A) Planning ensures complete success
(B) Plans are always adaptable
(C) Rigid plans may fail to adapt to dynamic environments
(D) Planning eliminates all risks

9. Assertion (A): Decentralization enhances employee motivation.

Reason (R): It grants employees decision-making authority, fostering a sense of ownership and
responsibility.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

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Page 4 Sample Paper 03 CBSE 12th Business Studies

10. GreenLeaf Manufacturing conducted a job analysis for its production supervisor role. They
identified that the role requires strong leadership, problem-solving skills, and proficiency in
using production management software. Based on this analysis, they created detailed job
descriptions and specifications to guide their recruitment process.
Which of the following steps did GreenLeaf Manufacturing perform correctly?
1 Conducted job analysis
2 Created job descriptions
3 Developed job specifications
4 Implemented performance appraisal
(A) 1, 2 and 3 only (B) 1 and 4 only
(C) 2, 3 and 4 only (D) All statements are correct

11. Read the following statements carefully:

Statement I: Supervision involves overseeing the work of subordinates.
Statement II: Motivation and leadership are not part of the directing function.
In light of the given statements, choose the correct alternative:
(A) Both statements are true. (B) Both statements are false.
(C) Statement I is true, Statement II is false. (D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Budgetary control is a technique of managerial control.
Statement II: Personal observation is an objective method of control.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the following components of working capital management in the correct sequence:
1 Managing inventory levels
2 Managing receivables
3 Managing payables
4 Ensuring liquidity
Which of the following sequences is correct?
(A) 1, 2, 3, 4 (B) 2, 1, 4, 3
(C) 3, 1, 2, 4 (D) 4, 1, 2, 3

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Page 5 Sample Paper 03

14. Match the list I with list 2 and select correct option.
List I List II
a. Product i Customer orientation
b. Place ii Channels of distribution
c. Promotion iii Branding and packaging
d. Marketing concept iv Advertising and sales promotion
Options:
(A) a-ii, b-iv, c-iii, d-i (B) a-i, b-iii, c-iv, d-ii
(C) a-iii, b-ii, c-iv, d-i (D) a-iii, b-iv, c-i, d-ii

15. Consider the following statements regarding the ‘Societal Marketing Concept’:
1 It emphasizes not only customer satisfaction but also societal welfare.
2 The concept promotes sustainable marketing practices.
3 It disregards company profits in favor of societal interests.
4 It balances company profits, consumer desires, and societal well-being.
Which of the above statements is/are correct?
(A) Only 1, 2, and 4 (B) Only 1, 3, and 4
(C) Only 2, 3, and 4 (D) All 1, 2, 3, and 4

16. Analyse the picture in which Mrs. Suhani is asking about the functions and warranty period of
the Mixer from the shopkeeper.

Choose the correct option reflected in picture

(A) Consumer Awareness (B) Consumer Organisations
(C) Both (A) and (B) (D) None of the above

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Page 6 Sample Paper 03 CBSE 12th Business Studies

17. Which of the following statements correctly describes Fayol’s principle of Division of Work?
(A) It leads to inefficiency among employees.
(B) It allows for specialization and increases efficiency.
(C) It discourages teamwork.
(D) It is only applicable to manufacturing organizations.

18. Which of the following statements correctly describes the importance of Business Environment?
(A) It helps in ignoring external changes.
(B) It assists businesses in adapting to changes and seizing opportunities.
(C) It only focuses on reducing internal costs.
(D) It has no significant role in strategic planning.

19. Which of the following statements is not correct regarding the role of procedures in planning?
(A) Procedures provide a detailed guide for performing tasks.
(B) Procedures are developed for one-time activities.
(C) Procedures ensure consistency in task execution.
(D) Procedures are part of standing plans.

20. Which of the following statements is NOT correct about the importance of organizing?
(A) Organizing facilitates the efficient allocation of resources.
(B) Organizing eliminates the need for planning in management.
(C) Organizing helps in coordinating activities across different departments.
(D) Organizing provides a framework for achieving organizational goals.

21. Recent years have seen a high rise in the number of fraudulent fund raising operations by
different companies. They are making their way into the poor and middle class people by luring
them with offers of high interest rates and returns. People are falling prey to such companies
and their schemes. They face such risks that extend from loss of personal savings to loss of their
jewellery and homes. Such frauds also have a considerable impact on economies and markets
by reducing the consumer’s trust and confidence in legitimate businesses. Such companies are
witty and quick to alter their modus operandi to reduce the risks of law enforcement detection
and investigation.


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Page 7 Sample Paper 03

(a) Which organisation has been set up to regulate such companies and their offers?
(b) What are its objectives?

22. Why decentralisation is important in an organisation. Explain by giving any three reasons,

23. Explain the meaning of ‘gathering and analysing market information’ as a function of marketing.


O
What is meant by ‘marketing concept’ ?
24. “Authority can be delegated but accountability cannot.” Explain the statement.


O
Taniya is of the view that Planning promotes innovative ideas whereas her colleague Lavanya
says that Planning reduces creativity. Who do you think is correct? Give reason.

25. Describe the first four steps involved in the process of selection of an employee.


O
Discuss the importance of the Controlling function of management.

26. What is informal communication ? How is it different from formal communication on the basis
of natural relationship among the members and speed of communication ?


O
‘Supervision is an important element of directing function’. Explain any four reasons in support
of the above statement.

27. Ramesh Bikanerwala was running a famous sweet shop in Chandni Chowk in the late seventies.
His sweets ranging from barfi and gulab jamuns to jalebi and rabri were famous throughout
Delhi. During marriage season, he had no time to close down his shop due to the excessive
orders. He produced the sweets with best quality raw material and was totally against the
adulteration. He was doing so well that he had to increase his scale of operations. In the
nineties, the Government of India announced the policy of LPG. This enabled many foreign
brands to enter India that gave the customers more choice by offering them the international
sweets and desserts. Ramesh Bikanerwala realised that the customer is no longer going to
stick to their traditional sweets. To stay in the market, they now had to study and analyse the
market and then decide their new offering.
What advantages Ramesh Bikanerwala will get by understanding the business environment?

28. Differentiate between ‘Money Market’ and ‘Capital Market’ on any four basis.

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Page 8 Sample Paper 03 CBSE 12th Business Studies

29. JBC Instrumentation Private Limited is in the business of manufacturing and exporting
transformer. It has a share capital of ` 1.2 crore at the face value of ` 100 each. Company is
considering a major expansion of its production facilities and wants to raise ` 80 lacs. The
finance manager of the company Mr. Patel has recommended that the company can raise funds
of the same amount by issuing 10 % debentures. Given that earning per share of the company
after expansion is ` 28 and tax rate is 30%, did Mr. Patel give a justified recommendation?
Show the working.

30. Listenware Private Limited (LPT) deals in a wide range of products that includes games
consoles, MP3 players and bluetooth speakers. The market in which it operates is highly
competitive and price sensitive. To distinguish itself from the competitors, LPTdecided to lay
stress on the development of customer relations. They laid down their group mission as ‘To be
the Best’. The key points of their philosophy would be:
(a) giving outstanding services to the customers.
(b) be adaptable to the changes in the customers demand.
(c) working together as a team.
The CEO of LPT however knows that to achieve its mission they need to quantify their mission
in terms of the specific type of services to be provided to the customers, changes they need to
introduce, etc. They also need to identify the different ways in which they can achieve their
mission.
(a) Which function of management is being performed by LPT?
(b) Explain the last three steps of the process of the aforesaid function.

31. Training is a life long necessity both for the employees as well as for the organisation. Justify
the statement by giving three arguments each in favour of the employees and the organisation.


O
Explain ‘staffing’ as a function of management. Also explain by giving any four reasons why
proper staffing is required in an organisation.

32. Discuss the principles of Scientific Management.

O
Name the concept of management that binds together all the functions of management. Discuss
its features.

33. Timed is a leading brand of watch. Recently, it is facing increasing competition in the market.
The customer’s taste and preferences has also been changing. To cater the market, the company
is planning to launch a smart watch that have all the features of a mobile phone. It can be used
for viewing notification and sending messages through it. It can track your activities and fitness
goal. It is a GPS enabled device which can be used for listening music or giving instruction to
Google Assistant. This product will be launched under a new logo.

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The pricing of the product is also done so as to obtain market share leadership. The company is
planning to launch this product with aggressive promotion or newspaper, magazines, television
and press releases.
(a) State and briefly explain the concept discussed in the meeting in the given case.
(b) Discuss the elements of the above concept discussed in the above passage.

34. A reputed company had called for the Annual General Meeting of its shareholders. In the
meeting, the Board of Directors laid before the shareholders the Financial Statements disclosing
the fact that the profits of the company have increased by 5% in the current financial year and
they have maintained stable growth rate of 2-3% in earnings since the last six years. It was also
brought to the notice of the investors that the Cash Flow Statement has shown an improvement
in the Cash Flow position with major inflow from their operating activities. Their Stock is
doing well in the Capital Market as is visible from the increase in its price over the past few
years, so raising additional funds, if required, from the capital market will not be a problem
at all. Since, the company has to redeem some debentures in the next accounting year, so they
have to transfer the required amount to Debenture Redemption Reserve. The Board also laid
before the shareholders the proposal to set up a new production capacity in Madhya Pradesh
as they intend to increase their scale of operations.
Identify by quoting the lines, the factors which the Finance Manager needs to consider from
this meeting while deciding the amount of profits to be distributed as dividend.

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Page 1 Sample Paper 04

Sample Paper 04
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. InnovaTech Solutions, a rapidly growing IT firm, prioritized effective staffing to support its
expansion. The HR department launched targeted recruitment campaigns to attract skilled
software developers and project managers, utilizing online job portals, university partnerships,
and professional networks. After selecting the best-fit candidates through rigorous interviews
and assessments, InnovaTech provided comprehensive training and development programs to
enhance their technical and soft skills.
To retain top talent, the company introduced mentorship initiatives and career development
plans. Regular performance appraisals were conducted to identify high performers, offering
promotions, bonuses, and learning opportunities as incentives. Employee feedback was
incorporated into HR policies to improve satisfaction and maintain a positive work environment.
Additionally, InnovaTech fostered a culture of continuous learning by providing access to online
courses and workshops. This comprehensive staffing strategy ensured a skilled, motivated, and
stable workforce, which was crucial for InnovaTech’s sustained growth and success.
Which function of staffing is illustrated by InnovaTech Solutions providing comprehensive
training programs to new hires?
(A) Recruitment (B) Selection
(C) Training and development (D) Performance appraisal

2. BrightFuture Tech Solutions, led by CEO Ms. Kavita Mehra, emphasizes the concept of
directing to ensure smooth operations. Ms. Mehra actively guides her team by setting clear
goals, providing necessary resources, and offering continuous feedback. She ensures that each
employee understands their role and how it contributes to the company’s objectives. Through
effective directing, BrightFuture maintains high productivity levels, fosters a positive work
environment, and achieves its strategic targets consistently.
What concept is BrightFuture Tech Solutions illustrating by setting clear goals and providing
continuous feedback to employees?
(A) Planning (B) Organizing
(C) Directing (D) Controlling
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Page 2 Sample Paper 04 CBSE 12th Business Studies

3. Which of the following is a primary benefit of effective controlling?

(A) Reduced need for planning (B) Increased employee turnover
(C) Enhanced organizational efficiency (D) Decreased communication

4. HealthGuard Pharmaceuticals, under CEO Ms. Anjali Mehta, relies heavily on financial
management to guide its operations. The finance department oversees the allocation of funds
for research and development, production, and marketing. Additionally, financial management
ensures compliance with regulatory requirements and manages risks associated with market
fluctuations. By fulfilling its role, financial management at HealthGuard supports strategic
planning, enhances profitability, and secures the company’s long-term growth in the competitive
pharmaceutical industry.
How does financial management play a role in HealthGuard Pharmaceuticals’ operations?
(A) By developing new pharmaceutical products
(B) By overseeing fund allocation and managing risks
(C) By conducting market research
(D) By manufacturing medicines

5. Which of the following is a feature of preferred stock?

(A) Fixed dividends paid before common stock dividends
(B) Voting rights equal to common stock
(C) Higher risk than bonds
(D) Guaranteed capital gains

6. Sunrise Apparel, led by CEO Ms. Neha Singh, efficiently performs the functions of marketing to
drive its fashion brand. The marketing team undertakes market research to understand fashion
trends, develops product designs that align with consumer preferences, sets competitive pricing
strategies, and orchestrates promotional campaigns to create brand awareness. Additionally,
Sunrise manages the distribution channels to ensure widespread availability of its products.
By effectively executing these marketing functions, Sunrise Apparel successfully captures and
retains its target market.
Which function of marketing is Sunrise Apparel performing by conducting market research to
understand fashion trends?
(A) Promotion (B) Distribution
(C) Product development (D) Market research

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7. Assertion (A): Management is considered a goal-oriented process.

Reason (R): Management focuses on achieving personal objectives over organizational
objectives.
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation
of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).-
(C) Assertion (A) is true, but Reason (R) is false.-
(D) Assertion (A) is false, but Reason (R) is true.

8. BrightFuture Manufacturing, led by CEO Mr. Raj Patel, implemented Fayol’s authority and
responsibility principle. Managers were given the authority to make decisions within their
departments while being held accountable for their outcomes. This clear delegation of authority
ensured that decisions were made efficiently and responsibilities were clearly defined, leading to
improved accountability and better overall performance.
What principle is BrightFuture Manufacturing following by granting managers decision-making
power and holding them accountable?
(A) Division of Work (B) Authority and Responsibility
(C) Unity of Command (D) Remuneration

9. Assertion (A): Political stability has no impact on business operations.

Reason (R): Businesses only rely on economic factors to make decisions.
(A) Both assertion and reason are true, and reason is the correct explanation of the assertion.
(B) Both assertion and reason are true, but reason is not the correct explanation of the
assertion.
(C) Assertion is true, but reason is false.
(D) Both assertion and reason are false.

10. A manufacturing company plans to launch a new product line. The management conducts
market research, analyzes competitors, and sets clear objectives for sales and market share
within the first year. They develop a detailed budget and create timelines for production and
marketing.
What is the first step taken by the management in this planning process?
(A) Conducting market research (B) Setting objectives
(C) Analyzing competitors (D) Developing a budget

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Page 4 Sample Paper 04 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Formal organization is based on established procedures and practices.
Statement II: Informal organization arises spontaneously from within the formal organization.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Job analysis is the process of studying and collecting information about job
responsibilities.
Statement II: Job description specifies the minimum acceptable qualifications required for a
job.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Steps involved in the communication process are:

1 Sender formulates the message.
2 Message is encoded into symbols.
3 Message is transmitted through a medium.
4 Receiver decodes the message.
Which of the following is the correct sequence?
(A) 1, 3, 2, 4 (B) 1, 2, 3, 4
(C) 2, 1, 3, 4 (D) 1, 2, 4, 3

14. Match the list I with list II and select correct option.
List I List II
a. Budgetary Control iii Correcting the actual performance
b. Deviations i Use of financial targets
c. Corrective Action iv Comparing actual performance
d. Benchmarking ii The performance gap

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Page 5 Sample Paper 04

Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iv, b-iii, c-ii, d-i
(C) a-ii, b-iv, c-i, d-iii (D) a-ii, b-iii, c-i, d-iv

15. Which of the following statements correctly describe the concept of financial management?
1 It involves planning, organizing, directing, and controlling financial activities.
2 Its primary goal is to maximize shareholder wealth.
3 It focuses solely on short-term financial decisions.
4 It ensures the optimal utilization of financial resources.
Which of the following is/are correct?
(A) 1 and 2 (B) 1, 2, and 4
(C) 2 and 3 (D) All are correct

16. Identify the barriers may prevent a communication or filter part of it or carry incorrect meaning
due to which misunderstandings may be created illustrated by the picture given below.

(A) Organisational barriers (B) Personal barriers

(C) Semantic barriers (D) Psychological barriers

17. Which of the following statements is correct?

(A) Physical distribution is solely concerned with advertising and sales promotions.
(B) Channels of distribution are pathways that products follow from producers to consumers.
(C) Personal selling is a non-personal form of communication.
(D) Public relations activities are aimed only at increasing immediate sales.

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Page 6 Sample Paper 04 CBSE 12th Business Studies

18. Which of the following statements correctly explains the meaning of ‘Effectiveness’ in
management?
(A) Effectiveness is about completing tasks with minimum resources.
(B) Effectiveness means achieving organizational goals on time.
(C) Effectiveness focuses on cost reduction alone.
(D) Effectiveness ignores the quality of outcomes.

19. Which of the following statements is NOT correct regarding the concept of management
principles?
(A) Management principles are strict rules that must be followed.
(B) Management principles are flexible guidelines for decision-making.
(C) Management principles can be adapted to different situations.
(D) Management principles assist in organizing and coordinating activities.

20. Which of the following statements is not correct about the technological dimension of the
Business Environment?
(A) It includes advancements like automation and artificial intelligence.
(B) It has no impact on product innovation.
(C) It influences the efficiency of business operations.
(D) It affects how businesses communicate with customers.

21. Puneet, the finance manager of Sahara Ltd., is involved in preparation of the financial blueprint
for future operations. He is directed by the seniors to ensure that enough funds are available
at right time. Because if surplus/ excess funds are available, it will add to the cost and may
encourage wasteful expenditure. On the other hand, if funds are short, then firms will not be
able to honour their commitments and carry out plans.
He is taking into consideration the growth, performance, investments and requirement of funds
for a given period. He is working on both short-term and long-term plans. After completing the
process of estimating the funds requirement of the company, he specifies the source of funds
also. Last year also, he got lot of appreciation for his successful effort.
(a) In which process, Puneet is currently involved?
(b) Is the above concept equivalent to or substitute for financial management? Why?
(c) Mention two importance of the concept in which Puneet is involved.

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Page 7 Sample Paper 04

22. Ms. Payal Batra is the General Manager of Mehar Textiles. With a views to run her business
in a careful manner, she divided all activities into seven departments. These departments were
Marketing, Purchase, Production, Personnel, Finance, Accounting and Sales. Later on, she
realised that accounting and sales department can be merged into finance department. Thus,
all business activities were divided into five departments. Ms. Payal is now thinking on the lines
as to which are the departments, out of these five that will have significant role in the success
of the business. After complete analysis, he concluded that marketing, production and finance
were the department on which success of the business depends. It meant that even after some
shortcoming occurred in the departments of purchase and personnel, it would not affect much
the success of the business. Thereafter, Ms. Payal determined deviation tolerance limits of these
three main departments. It meant that if deviation of these departments remains within this
tolerance limit, then it will be looked after by the concerned manager. However, in case the
deviation is beyond this limit then the same will be brought to the notice of General Manager.
(a) Identify two functions of the management referred in the above paragraph.
(b) Describe the relevant concepts of identified functions.

23. A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a science
student of Progressive School to take a loan from State Bank of India to experiment and develop
cars to be powered by fuel produced from garbage. He developed such a car and exhibited it
in the Science Fair organised by Directorate of Education. He was awarded first prize for his
invention. Identify and briefly explain two dimensions of business environment discussed in the
above case.


O
‘In the present day market, the retailers have direct link with the suppliers who replenish
their stocks as and when needed and at the same time the manufacturers follow flexible
manufacturing system.’ This has been possible due to the changes in one of the dimensions of
business environment.
Identify and explain the dimension.

24. Explain any three elements of process of communication other than sender and receiver.


O
What is meant by recruitment of employees?

25. Capital budgeting decisions are capable of changing the financial fortunes of a concern. Justify
giving reasons.

26. ‘It is balancing and keeping together the team by ensuring suitable allocation of tasks to the
members and seeing that the tasks are performed with harmony among the members.’ Which
concept is being referred to? Discuss its features.


O
Explain the Fayol’s management principle of ‘Initiative’ and ‘Stability of Personnel’.

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Page 8 Sample Paper 04 CBSE 12th Business Studies

27. Agra Leather Works (ALW), after a lot of research work, developed a synthetic substitute for
leather. By doing this, it not only took into account the sentiments of people but also ensured
that animals are not hurt. It launched a complete new range of bags in the market. It named
its bags ‘Pure-Sure’ which clearly conveyed to the consumers the message- ‘Pure for Sure’. To
enable the consumers identify its bags, even from a distance, it covered them in a specially
designed translucent covers that would not only protect it from the dust but will also attract
the consumers.
(a) Identify and briefly explain the elements of Product mix discussed in the above case, by
quoting the relevant lines.
(b) Explain the marketing philosophy followed by ALW.

28. “If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by
many”. How?


O
Explain the elements of delegation.

29. VAGA Edtech Limited is a unicorn in the filed of online education. It has a share capital of
` 12 crore at the face value of ` 100 each. Company is considering a major expansion of its
production facilities and wants to raise ` 2 crore. The chief financial officer (CFO) the company
has recommended that the company can raise funds of the same amount by issuing 10 %
debentures. Given that earning per share of the company after expansion is ` 21 and tax rate
is 30%, did CFO give a justified recommendation? Show the working.

30. Mr. Lalit, the Marketing Manager, spends a lot of time in planning for the long-term goals of
his department as he has given complete autonomy to its salesmen to make their own decisions
while they are in the field?
(a) Identify and briefly explain the style of leadership displayed by Mr. Lalit.
(b) Also, state any three benefits of the leadership style identified in part (a).

31. Briefly discuss the process of that function of Management which ensures the conformity of
plans according to the standards laid down.


O
Is planning actually worth the huge costs involved? Explain.

32. How would you argue that success of a business enterprise is significantly influenced by its
environment?


O
In what ways do company respond to various changes taking place in business environment?

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Page 9 Sample Paper 04

33. Ms. Varsha Kanodia intends to start an enterprise that produces chocolates. Initially, in order
to assess the taste and preferences of the people about the chocolates, she used social media and
online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses, opportunities
and threats) analysis of her enterprise to devise a strategy that will give her an edge over the
competitors. Based on her analysis of the market, she decided to launch sesame and jaggery
based chocolates under the brand name ‘Desi Delight’. She has decided to fix up the price of
chocolates relatively at lower level in the beginning and later on as the demand picks up she
may revise the prices.
(a) Identify and give the meanings of the elements of marketing mix being taken into
consideration by Ms. Varsha.
(b) Explain briefly the functions of marketing highlighted here.

34. Lavanya, after acquiring a degree in Hotel Management and Business Administation took over
her family food processing company of manufacturing pickles, jams and squashes. The business
was established by her great grandmother and was doing reasonably well. However the fixed
operating costs of the business were high and the cash flow position was weak. She wanted
to undertake modernisation of the existing business to introduce the latest manufacturing
processes and diversify into the market of chocolates and candies. She was very enthusiastic and
approached a finance consultant, who told her that approximately Z 50 lakh would be required
for undertaking the modernization and expansion programme. He also informed her that the
stock market was going through a bullish phase.
(a) Keeping the above considerations in mind, name the source of finance Lavanya should
not choose for financing the modernization and expansion of her food processing business.
Give two reasons in support of your answer.
(b) Explain any two other factors, apart from those stated in the above situation, which
Lavanya should keep in mind while taking this decision.

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Page 1 Sample Paper 05

Sample Paper 05
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. BrightBuilders Construction Company, led by CEO Mr. Anil Sharma, set an ambitious goal
to expand its operations into three new metropolitan cities within two years. The company
embarked on a detailed planning process. The first step involved conducting comprehensive
market research to identify potential locations, assess demand, and evaluate the competitive
landscape in each target city.
Based on the research, BrightBuilders established specific objectives for each phase of expansion,
including timelines, budget allocations, and key performance indicators (KPIs). The company
developed a step-by-step timeline outlining activities such as acquiring permits, hiring local
staff, and setting up infrastructure. To mitigate risks, the management prepared contingency
plans for potential challenges like supply chain disruptions and labor shortages. Regular
progress reviews were scheduled to monitor the implementation of the expansion plan and
make necessary adjustments. This meticulous planning enabled BrightBuilders to successfully
establish new branches on time, increase market share, and achieve sustainable growth.
What aspect of planning is demonstrated by BrightBuilders preparing contingency plans for
potential challenges during expansion?
(A) Planning is continuous (B) Planning involves decision-making
(C) Planning is flexible (D) Planning anticipates future uncertainties

2. HealthFirst Clinics, led by CEO Dr. Anjali Sharma, focuses on providing comprehensive
healthcare services. Understanding the concept of organizing as both a structure and a process,
Dr. Sharma established specialized departments such as cardiology, neurology, and orthopedics.
As a process, she ensures that resources are efficiently allocated, roles are clearly defined, and
workflows are optimized. This dual approach enhances operational efficiency, improves patient
care quality, and fosters a collaborative work environment, enabling HealthFirst Clinics to meet
its healthcare objectives effectively.
How does HealthFirst Clinics demonstrate organizing as both a structure and a process?


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Page 2 Sample Paper 05 CBSE 12th Business Studies

(A) By focusing solely on departmental divisions

(B) By defining roles and optimizing workflows
(C) By centralizing all decision-making
(D) By reducing the number of departments

3. What is the primary purpose of staffing in an organization?

(A) To increase sales
(B) To ensure the organization has the right people in the right positions
(C) To manage financial resources
(D) To develop marketing strategies

4. EcoBuild Constructors, under the leadership of Mr. Arjun Verma, understands the importance
of directing in achieving project success. Mr. Verma regularly communicates project goals,
motivates his team, and resolves conflicts promptly. By effectively directing his workforce,
EcoBuild ensures that projects are completed on time, within budget, and to the highest
quality standards. This focus on directing not only improves operational efficiency but also
boosts employee morale and client satisfaction.
How does EcoBuild Constructors benefit from understanding the importance of directing?
(A) By increasing operational costs
(B) By ensuring projects are completed on time and within budget
(C) By reducing employee training
(D) By centralizing all decision-making

5. In the controlling process, what is done after establishing standards?

(A) Taking corrective action (B) Measuring actual performance
(C) Setting new goals (D) Motivating employees

6. GreenEnergy Ltd., a renewable energy company, sets clear objectives of financial management
to guide its operations. The primary objectives include maximizing shareholder wealth, ensuring
liquidity for day-to-day operations, and minimizing financial risks. To achieve these objectives,
the finance team implements strategies such as efficient capital allocation, maintaining a
balanced capital structure, and diversifying investments. These objectives help GreenEnergy
maintain financial health, attract investors, and support sustainable growth in the renewable
energy sector.

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Page 3 Sample Paper 05

Which of the following is an objective of financial management at GreenEnergy Ltd.?

(A) Maximizing employee satisfaction
(B) Expanding into new markets
(C) Maximizing shareholder wealth
(D) Enhancing product features

7. Assertion (A): The stock market allows for price discovery of securities.
Reason (R): Prices are determined based on supply and demand dynamics.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

8. TechGadget Ltd., a leading smartphone manufacturer, adopts the marketing concept as its
core philosophy. The company prioritizes customer satisfaction by developing smartphones that
cater to the evolving needs of tech-savvy consumers. TechGadget conducts extensive surveys to
gather feedback, implements customer-centric design principles, and offers excellent after-sales
service. By focusing on creating value for customers, TechGadget aligns its business strategies
with the marketing concept, ensuring long-term customer loyalty and sustained profitability.
Which marketing philosophy is TechGadget Ltd. following by prioritizing customer satisfaction
and creating value for customers?
(A) Production concept (B) Product concept
(C) Selling concept (D) Marketing concept

9. Assertion (A): Efficiency in management means doing tasks correctly with minimum cost.
Reason (R): Efficiency focuses on the end result regardless of the resources used.
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation
of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).-
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

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Page 4 Sample Paper 05 CBSE 12th Business Studies

10. A retail chain implemented a new strategy to improve customer service. They began by
analyzing the tasks performed by employees and determining the most efficient methods for
handling customer inquiries. They then trained staff based on these findings. Which technique
of Scientific Management is being utilized here?
(A) Time Study (B) Method Study
(C) Motion Study (D) Work Specialization

11. Read the following statements carefully:

Statement I: Liberalization refers to reducing government controls and restrictions.
Statement II: Globalization means integrating the domestic economy with the world economy.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Objectives are the end results which management wants to achieve.
Statement II: Policies are specific statements that inform what is to be done.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the following elements of delegation in the correct sequence:

1. Assigning responsibility
2. Granting authority
3. Ensuring accountability
4. Monitoring performance
Which of the following sequences is correct?
(A) 1, 2, 3, 4 (B) 2, 1, 4, 3
(C) 1, 3, 2, 4 (D) 3, 1, 2, 4

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Page 5 Sample Paper 05

14. Match the list I with list 2 and select correct option.
List I List II
a. Recruitment i Assessing employee capabilities
b. Selection ii Identifying sources of applicants
c. Training iii Filling vacancies with appropriate candidates
d. Performance Appraisal iv Hiring process
Options:
(A) a-ii, b-iii, c-iv, d-i (B) a-iii, b-i, c-ii, d-iv
(C) a-ii, b-iv, c-i, d-iii (D) a-i, b-iv, c-iii, d-ii

15. According to Maslow’s Hierarchy of Needs:

1 Physiological needs are the foundation of the hierarchy.
2 Safety needs include financial security and health.
3 Social needs are higher than esteem needs.
4 Self-actualization is the highest level of needs.
Which of the following is/are correct?
(A) 1 and 2 only (B) 1, 2 and 4 only
(C) 2 and 3 only (D) All 1, 2, 3 and 4

16. Analyse the picture in which the incharge of all the departments are in chaos and unable to
work properly. Which function of management is missing here?

(A) Coordination (B) Directing

(C) Planning (D) Controlling

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Page 6 Sample Paper 05 CBSE 12th Business Studies

17. Which of the following statements about capital structure is correct?

(A) Capital structure only includes debt financing.
(B) Equity financing does not affect the capital structure.
(C) Capital structure is the mix of debt and equity financing used by a company.
(D) A higher debt component always reduces financial risk.

18. Which of the following statements is correct?

(A) The money market is focused on long-term financing.
(B) Securities markets include only equity markets.
(C) The primary market facilitates the issuance of new securities.
(D) All financial markets operate without regulation.

19. Which of the following statements is NOT correct?

(A) Public relations activities include press releases and sponsorships.
(B) Advertising allows for direct, personalized interaction with consumers.
(C) Sales promotions can include contests and discounts.
(D) Personal selling involves face-to-face communication between buyer and seller.

20. Which statement about ‘Effectiveness’ and ‘Efficiency’ in management is NOT correct?
(A) Effectiveness is about doing the right tasks to achieve goals.
(B) Efficiency focuses on doing tasks correctly with minimum resources.
(C) Being efficient always guarantees effectiveness.
(D) Both effectiveness and efficiency are essential for successful management.

21. Rajesh is finance manager of Rajasthan Food Products He is in need of finance to expand
the business. He is looking into different sources of funds available. After doing the cost and
risk analysis, he found debt as the best option but as the company has to pay huge insurance
premium for the plant and machinery and lease for the building, the decision was taken to raise
funds through equity.
Identify and explain the factor which affected this decision.

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Page 7 Sample Paper 05

22. Dominos offered ‘Vrat Special Menu’ during Navratras to attract the Indian customers with
vegetarian pizza made of water-chestnut flour (singhada atta), and white millet flour (Samak
ke chawal ka atta). It was topped with fresh mozzarella cheese with rock salt, tomatoes, paneer
and crunchy sabudana. The tomato sauce was made without onions and garlic and used rock
salt rather than common salt. State and explain the feature of management which is highlighted
in the above case.

23. Differentiate between Functional and Divisional Structure on the basis of:
(a) Formation (b) Responsibility (c) Cost involved


O
State the meaning of essential elements of delegation.

24. How does management help in the development of society?

O
Give any three examples in support of the statement that ‘Business environment is dynamic’.

25. What do you mean by Laissez-faire style of leadership? Give two advantages and disadvantages
of Laissez-faire style of leadership. Also suggest the situations where it is suitable.


O
What is meant by delegation? State the importance of delegation in an organisation.

26. ‘Planning and Controlling are inseparable twins of management.’ How?

O
“If you try to control everything, you may end up in controlling nothing”. Comment.

27. You have been appointed as a Brand Manager of Ford Motors. The Company is to introduce
a compact small car in the Indian Market. The name of the car is yet to be decided. You have
been asked to chair a brainstorming session. Before the suggestions come forward, you have
to briefly explain the participants as to what constitutes a good brand name with the help of
suitable examples.

28. How can the company satisfy social and esteem needs of its employees?

29. Bhushan Limited is in the business of manufacturing and exporting ready-made garments It
has a share capital of ` 90 lacs at the face value of ` 100 each. Company is considering a major
expansion of its production facilities and wants to raise ` 50 lacs. The finance manager of the
company Mr. Rathi has recommended that the company can raise funds of the same amount
by issuing 8 % debentures. Given that earning per share of the company after expansion is ` 14
and tax rate is 30%, did Mr. Rathi give a justified recommendation? Show the working.

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Page 8 Sample Paper 05 CBSE 12th Business Studies

30. Mr. Agrawala bought a branded shaving razor from a Departmental Store and took the cash
memo of ` 400 which he had paid to them. Later on, he found that the MRP of the perfume
was ` 370 only, but the shopkeeper had put a sticker of ` 400 on the original price.
(a) Do you think that the consumer right is violated here? If yes, then name the right and
explain it.
(b) State any two responsibilities of a consumer other than that referred here.

31. Explain the factors determining the choice of channel of distribution.

O
‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.

32. “Coordination is not a separate function of management; it is the very essence of managements.”
Clarify.


O
Explain the following principles of management:
(a) Scalar chain
(b) Subordination of individual interest to general interest

33. Blue Heavens Private Limited purchased a new hi-tech machine from Germany for manufacturing
high quality auto components in a cost effective manner. But during the production process,
the manager observed that the quality of production was not as per standard. On investigation
it was found that there was lack of knowledge amongst the employees of using these hi-tech
machines. So, frequent visit of engineers was required from Germany. This resulted in high
overhead charges.
Suggest what can be done to develop the skills and abilities of employees for producing
high quality products by using these hi-tech machines. Also state how the employees or the
organization will benefit from your suggestion.

34. Amit Sports Ltd. was in the business of manufacturing treadmills and had a monopoly in the
market. The business was doing very well and the company was consistently able to meet its
objective of 20% increase in sales year after year. Encouraged by the good track record, Mr.
Akhil, the Managing Director of the company, kept an ambitious target of 30% increase in
sales for the next year. The same year, two competitors entered the market and the company
could not achieve its targets. Identify and explain the limitations of one of the functions of
management because of which the company was not able to meet its targets.

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Page 1 Sample Paper 06

Sample Paper 06
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. TechWave Innovations Pvt. Ltd., led by CEO Mr. Sanjay Rao, sought to enhance operational
efficiency by adopting Henri Fayol’s Principles of Management. The company implemented the
division of work by assigning specialized roles to employees, which boosted productivity and
quality. Clear authority and responsibility were established, empowering managers to make
decisions while being accountable for outcomes.
TechWave strictly adhered to the unity of command principle, ensuring each employee reported
to only one supervisor, thereby reducing confusion and conflicts. A well-defined scalar chain
was maintained, facilitating smooth communication from top management to lower levels. The
company also promoted equity, treating all employees fairly, which improved morale and reduced
turnover rates. By encouraging initiative, managers were motivated to take proactive steps and
innovate without waiting for directives. Additionally, TechWave fostered esprit de corps by
organizing team-building activities, enhancing unity and cooperation among employees. These
principles collectively fostered a disciplined and motivated workforce, leading to significant
improvements in project delivery and client satisfaction.
Which of Fayol’s principles is reflected when TechWave ensures that each employee reports to
only one supervisor?
(A) Division of work (B) Unity of command
(C) Scalar chain (D) Esprit de corps

2. EcoDrive Motors Pvt. Ltd., a leading automobile manufacturer, operates in a dynamic business
environment. The company constantly monitors external factors such as market trends, economic
conditions, and technological advancements to stay competitive. By understanding the concept
of business environment, EcoDrive adapts its strategies to meet changing consumer demands
and regulatory requirements, ensuring sustained growth and market relevance.
What does EcoDrive Motors Pvt. Ltd. exemplify by continuously monitoring external factors
like market trends and economic conditions?
(A) Internal analysis (B) Concept of business environment
(C) Marketing strategies (D) Product development
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Page 2 Sample Paper 06 CBSE 12th Business Studies

3. Which of the following plans is created for day-to-day operations and is not expected to be
repeated?
(A) Procedure (B) Rule
(C) Programme (D) Method

4. BrightPath Logistics, under the leadership of CEO Mr. Rakesh Gupta, emphasizes the
importance of organizing to manage its expanding fleet and operations. By structuring the
company into departments such as fleet management, customer service, and maintenance,
BrightPath ensures that each function operates smoothly and efficiently. This organized
approach minimizes operational redundancies, enhances communication, and improves service
delivery, resulting in increased customer satisfaction and sustained business growth.
What is one key benefit BrightPath Logistics gains from effective organizing?
(A) Increased operational redundancies (B) Higher customer satisfaction
(C) Reduced fleet size (D) Ignored communication

5. Why is staffing considered important for organizational success?

(A) It helps in reducing product prices
(B) It ensures availability of skilled and motivated employees
(C) It eliminates the need for marketing
(D) It increases the organization’s physical assets

6. GlobalFinance Ltd., a leading financial services company, focuses on the elements of directing
to enhance employee performance. The CEO, Mr. Ravi Singh, utilizes leadership, motivation,
communication, and supervision as key elements. He leads by example, motivates employees
through incentives, ensures open communication channels, and supervises tasks to maintain
quality. These elements collectively foster a disciplined and motivated workforce, driving the
company’s success in the competitive financial market.
Which of the following is NOT an element of directing demonstrated by GlobalFinance Ltd.?
(A) Leadership (B) Motivation
(C) Communication (D) Budgeting

7. Assertion (A): Controlling ensures that organizational activities are aligned with the set
objectives.
Reason (R): Controlling involves setting standards, measuring actual performance, and taking
corrective actions.


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Page 3 Sample Paper 06

Which of the following is correct?

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

8. TechWave Innovations, led by CEO Mr. Suresh Patel, faces critical financial decisions as
it plans for expansion. The investment decision involves allocating funds to develop a new
software product. The financing decision requires choosing between raising capital through
equity or debt to fund this investment. Finally, the dividend decision involves determining how
much profit to distribute to shareholders versus retaining for future growth. These decisions are
influenced by factors such as market conditions, cost of capital, and shareholder expectations,
ensuring TechWave’s strategic growth and financial health.
Which financial decision is TechWave Innovations making when choosing between equity and
debt to fund a new software product?
(A) Investment decision (B) Financing decision
(C) Dividend decision (D) Budgeting decision

9. Assertion (A): Derivatives are used for hedging risks in financial markets.
Reason (R): They provide a way to lock in prices for underlying assets.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

10. ABC Electronics, a leading manufacturer of smartphones, noticed a decline in sales due to
intense competition. To regain market share, they introduced a new model with advanced
features at a competitive price. They invested heavily in advertising and offered promotional
discounts. The company also ensured widespread availability by partnering with numerous
retailers.
Which marketing strategy is ABC Electronics primarily focusing on to regain market share?
(A) Market Penetration
(B) Product Differentiation
(C) Market Development
(D) Diversification

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Page 4 Sample Paper 06 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Management is a goal-oriented process that focuses on achieving organizational
objectives.
Statement II: Management is only necessary for profit-making organizations.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Henry Fayol proposed the 14 Principles of Management.
Statement II: The principle of Esprit de Corps focuses on individual achievement over team
spirit.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence for analyzing the impact of economic factors on a business:
1. Assess inflation rates.
2. Evaluate consumer purchasing power.
3. Analyze interest rates.
4. Study overall economic growth.
(A) 1, 3, 2, 4 (B) 4, 1, 2, 3
(C) 1, 2, 3, 4 (D) 3, 1, 2, 4

14. Match the list I with list 2 and select correct option.
List I List II
a. Goals i Long-term direction
b. Strategies ii Specific plans for the future
c. Objectives iii Outlining policies
d. Procedures iv Defining the short-term targets

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Page 5 Sample Paper 06

Options:
(A) a-i, b-iv, c-ii, d-iii (B) a-ii, b-i, c-iv, d-iii
(C) a-iii, b-i, c-iv, d-ii (D) a-i, b-iii, c-ii, d-iv

15. Which of the following statements is/are NOT correct regarding delegation?
1 Delegation involves assigning responsibility to subordinates.
2 Delegation includes granting authority to perform tasks.
3 Delegation removes accountability from managers permanently.
4 Delegation helps in employee development and empowerment.
Which of the following statements is/are NOT correct?
(A) 1 only (B) 3 only
(C) 2 and 4 only (D) All are correct

16. A close examination of above picture reveals building of the regulatory authority to protect
the interests of the investors in securities and promote the development of, and to regulate, the
securities market. Identify it.

(A) National Stock Exchange

(B) Reserve Bank of India
(C) Food Safety and Standards Authority of India
(D) Securities and Exchange Board of India

17. Which of the following statements about directing is correct?

(A) Directing only involves giving orders to employees.
(B) Directing includes motivating, leading, and communicating with employees.
(C) Directing is solely responsible for planning organizational activities.
(D) Directing eliminates the need for controlling.
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Page 6 Sample Paper 06 CBSE 12th Business Studies

18. Which of the following statements correctly defines controlling in management?

(A) Controlling involves setting long-term goals for the organization.
(B) Controlling ensures that organizational activities are aligned with established standards.
(C) Controlling is primarily concerned with motivating employees.
(D) Controlling eliminates the need for planning.

19. Which of the following statements about financial management is not correct?
(A) Financial management aims to maximize shareholder wealth.
(B) Financial management only deals with long-term financial decisions.
(C) Financial management involves planning, organizing, directing, and controlling financial
activities.
(D) Financial management plays a crucial role in resource allocation.

20. Which of the following statements is NOT correct?

(A) The primary market is where new securities are issued.
(B) The money market deals with long-term securities.
(C) The capital market is focused on long-term investments.
(D) The secondary market is where existing securities are traded.

21. “If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by
many”. How?

22. Which marketing management philosophy lays more emphasis on the consumer welfare rather
than the consumer satisfaction? How is it different from the Production Concept?

23. Rajesh was working as a First Line Manager. At which level of management was he working?
State any two functions performed at that level.


O
Nowadays the market offers a lot of opportunities to the marketers as the customer income is
rising. People have developed a taste for better quality products even though they may have to
pay more. Their aspiration levels have increased.
(a) Which dimension of business environment is being referred to?
(b) Explain one more dimension of business environment with example.

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Page 7 Sample Paper 06

24. What is meant by ‘Financial Management’ ? State its objective.

O
It is that component of Financial market, in the absence of which the primary market will
become unattractive as there will be no liquidity. Identify the type of Financial market and list
its two functions.

25. In an organisation the morale of the employees is very low in-spite of the different financial
incentives offered to them. The organisation does not provide any developmental opportunities
to them. Neither they are involved in the decision making nor their work appreciated by the
top level management.
(a) Why is the morale of employees low?
(b) State the different incentives that the organisation should offer by giving reference to the
relevant lines.

26. Explain the concept of Democratic style of leadership and state its any two features.


O
‘An ideal controlling technique is the one that checks each and every stage in the process of
production.’ Comment.

27. Elctroreck limited is in the business of manufacturing and exporting trasnformer. It has a share
capital of ` 80 lacs at the face value of ` 100 each. Company is considering a major expansion of
its production facilities and wants to raise ` 60 lacs. The finance manager of the company Mr.
Dinkar has recommended that the company can raise funds of the same amount by issuing 8 %
debentures. Given that earning per share of the company after expansion is ` 35 and tax rate
is 30%, did Mr. Prabhakar give a justified recommendation? Show the working.

28. In an organisation different workers completed the same task by adopting different methods,
involving different movements and took different amount of time. This led to a lot of variation
in the type of work performed and the output produced. To do away with this, Rakesh, the
manager decided to eliminate unnecessary diversity of products and find out the best way of
doing the job. Various studies were undertaken to determine standard way and time of doing
a work.
Explain any two techniques of Taylor used by Rakesh.


O
Harish Sharma set up a small factory manufacturing toys. To begin with he employed 12 people
who had the experience of working in small factories. He was a strict task master. He kept all
the decision making power with himself. The employees were frequently leaving the job as they
were not satisfied about his way of dealing with them and as such Harish faced a lot of problems
tackling the employees. He then appointed a Manager who through his experience, creativity
and personalized way created an atmosphere of complete co-operation and coordination which
led to the achievement of goals.


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Page 8 Sample Paper 06 CBSE 12th Business Studies

(a) Which principles of management were ignored by Harish? Identify by quoting the lines.
(b) What does the manager’s way of dealing tell about the nature of management? Discuss.

29. Give your argument in the support that success of a business enterprise is significantly influenced
by its environment?

30. State and explain any four points of importance of planning.

31. After laying down the plans, a function is initiated to lay down the organisational structure.
Explain the importance of this function in management.


O
Planning is deciding in advance the future course of action. Explain briefly what all needs to
be done to make effective and efficient plans.

32. A company was marketing ‘water purifiers’ which were very popular due to their quality and
after sales services provided to the customers. The company was a leading company in the
market and earning huge profits. Because of huge profits, the company ignored the after sales
services. As a result, its relations with the customers got spoiled and the image of the company
was damaged in the public. Top management became concerned when the profits for the
current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services
was its reason. Therefore, the company took all possible measures to protect and promote its
favourable image in the eyes of the public. As a result, the goodwill of the company improved
in the society.
(a) Name and state the communication tool used by the marketer in the above case to
improve its image.
(b) Also explain role of the tool as identified in part (a).

33. A company wants to replace its old machinery with new hi tech machines available in the
market. For this, it will have additional funds requirement of at least ` 50 Crores. As a Finance
Manager, help the company in deciding the right source for raising the money by explaining
the different factors that impact such a decision.


O
Market ‘A’ involves the sale of securities by the new companies or further issue of securities by
the existing companies to the investors, whereas Market ‘B’ involves the purchase and sale of
existing securities.
Identify the Market ‘A’ and Market ‘B’ highlighted here and differentiate between the two on
any five basis.

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Page 9 Sample Paper 06

34. Blue Heavens Private Limited purchased a new hi-tech machine from Germany for manufacturing
high quality auto components in a cost effective manner. But during the production process,
the manager observed that the quality of production was not as per standard. On investigation
it was found that there was lack of knowledge amongst the employees of using these hi-tech
machines. So, frequent visit of engineers was required from Germany. This resulted in high
overhead charges.
Suggest what can be done to develop the skills and abilities of employees for producing
high quality products by using these hi-tech machines. Also state how the employees or the
organization will benefit from your suggestion.

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Page 1 Sample Paper 07

Sample Paper 07
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. A customer purchased a washing machine from HomeAppliances Store, which malfunctioned

within two weeks of purchase. Despite multiple requests for repair, the store failed to address
the issue satisfactorily. Frustrated, the customer approached the Consumer Disputes Redressal
Commission for resolution. The commission reviewed the case, examined the evidence, and
ruled in favor of the customer. HomeAppliances Store was directed to either repair the faulty
machine or provide a full refund.
This case underscores the importance of consumer protection, highlighting consumers’ rights
to seek redressal for defective products. It demonstrates how legal frameworks are in place to
protect consumers from unfair trade practices and ensure they receive adequate remedies for
grievances. Effective consumer protection mechanisms not only safeguard individual rights but
also promote fair business practices, enhancing overall market trust and integrity. Moreover,
the case emphasizes the role of consumer awareness in holding businesses accountable and
maintaining high standards of product quality and customer service.
Which consumer right is exercised when the customer files a complaint with the Consumer
Disputes Redressal Commission to seek resolution for a faulty product?
(A) Right to safety (B) Right to be informed
(C) Right to choose (D) Right to seek redressal

2. AlphaTech Solutions, led by CEO Mr. Anil Kapoor, specializes in developing software for
educational institutions. To streamline operations, Mr. Kapoor emphasized the concept of
management by setting clear objectives: enhancing software quality, expanding into new
markets, and increasing employee satisfaction. He organized the company into specialized
departments—development, marketing, and HR—ensuring each team worked towards common
goals. This structured approach enabled AlphaTech to efficiently achieve its targets and
maintain a competitive edge in the market.
What management concept is AlphaTech Solutions illustrating by setting clear objectives and
organizing specialized departments?
(A) Leadership (B) Management
(C) Marketing (D) Innovation
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Page 2 Sample Paper 07 CBSE 12th Business Studies

3. Which of the following is a technique used by Taylor to determine a fair day’s work?
(A) Motion Study (B) Time Study
(C) Differential Piece Wage System (D) Functional Foremanship

4. HealthPlus Pharmaceuticals recognizes the importance of business environment in shaping its

operations. By analyzing political regulations, economic shifts, social trends, and technological
advancements, HealthPlus ensures compliance, anticipates market demands, and innovates
its product line. This comprehensive understanding helps the company mitigate risks, seize
opportunities, and maintain a strong market position.
How does HealthPlus Pharmaceuticals benefit from understanding the importance of business
environment?
(A) By focusing only on internal processes
(B) By ignoring external changes
(C) By mitigating risks and seizing opportunities
(D) By reducing product quality

5. In which type of plan are financial resources allocated for a specific purpose or time period?
(A) Method (B) Policy
(C) Rule (D) Budget

6. GlobalTech Innovations follows a structured organizing process to launch its new AI-based
product. The steps include:
1. Identifying Objectives: Launch the product within six months.
2. Grouping Activities: Form teams for development, marketing, and support.
3. Assigning Roles: Designate team leaders and define responsibilities.
4. Delegating Authority: Empower team leaders to make decisions.
5. Coordinating Efforts: Ensure teams collaborate effectively towards the launch.
This systematic approach ensures that the product launch is executed efficiently, on time, and
meets quality standards, positioning GlobalTech for success in the competitive tech market.
Which step in the organizing process involves designating team leaders and defining
responsibilities at GlobalTech Innovations?
(A) Identifying Objectives
(B) Grouping Activities
(C) Assigning Roles
(D) Coordinating Efforts

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7. Assertion (A): External recruitment increases workplace diversity.

Reason (R): External recruitment brings in candidates from different backgrounds and
experiences.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) Both A and R are incorrect.

8. StarTech Innovations, led by CEO Ms. Neha Gupta, prioritizes motivation to enhance employee
performance. Utilizing Maslow’s Hierarchy of Needs, StarTech ensures that basic needs are met
by providing competitive salaries and a safe work environment. To fulfill higher-level needs,
the company offers opportunities for career advancement, recognition programs, and team-
building activities. This comprehensive approach to motivation results in a highly engaged and
productive workforce, driving the company’s innovation and growth.
How does StarTech Innovations apply Maslow’s Hierarchy of Needs to motivate its employees?
(A) By focusing only on financial incentives
(B) By providing competitive salaries and career advancement opportunities
(C) By ignoring employee well-being
(D) By enforcing strict supervision

9. Assertion (A): Management by exception enhances managerial efficiency.

Reason (R): It allows managers to focus only on significant deviations from standards.
Which of the following is correct?
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

10. GHI Enterprises needs to improve its liquidity to meet short-term obligations. The management
decides to reduce inventory levels and expedite receivables.
Which component of working capital management is GHI Enterprises addressing?
(A) Managing Inventory (B) Managing Payables
(C) Managing Fixed Assets (D) Managing Equity

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Page 4 Sample Paper 07 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Money market instruments are used for long-term financing.
Statement II: Treasury bills are issued by the government to meet short-term financial needs.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Physical distribution includes transportation and inventory management.
Statement II: Advertising is a personal form of communication.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the levels of management in the correct hierarchical order from highest to lowest:
(A) Lower-level Management, Middle-level Management, Top-level Management
(B) Middle-level Management, Lower-level Management, Top-level Management
(C) Top-level Management, Middle-level Management, Lower-level Management
(D) Top-level Management, Lower-level Management, Middle-level Management

14. Match the list I with list 2 and select correct option.
List I List II
a. Division of Work i Authority and Responsibility
b. Unity of Command ii One boss for each employee
c. Scalar Chain iii Chain of superior-subordinate
d. Discipline iv Specialization
Options:
(A) a-ii, b-iv, c-i, d-iii (B) a-iv, b-ii, c-iii, d-i
(C) a-iv, b-i, c-ii, d-iii (D) a-iii, b-ii, c-i, d-iv
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Page 5 Sample Paper 07

15. Which of the following is/are correct regarding the concept of business environment?
1. Business environment includes internal and external factors.
2. It influences business decisions and strategies.
3. It is static and remains unchanged over time.
4. Business environment refers to economic factors only.
(A) Only 1 and 2 (B) Only 1 and 3
(C) Only 2 and 4 (D) All of the above

16. Analyse the picture of a factory in which the owner is giving bonus to his worker for making
profit due to high production.

Analyse the picture of a factory in which the owner is giving bonus to his worker for making
profit due to high production.
Demonstrate the principle of Taylor.
(A) Harmony, not discord
(B) Efficiency and prosperity
(C) Science, not rule of thumb
(D) Cooperation, not individualism

17. Which of the following statements is correct regarding the concept of organizing as a structure
and as a process?
(A) Organizing as a structure focuses on the formal arrangement of tasks, while organizing as
a process involves the continuous arrangement of resources to achieve objectives.
(B) Organizing as a structure and as a process are identical concepts in management.
(C) Organizing as a process does not involve assigning tasks to employees.
(D) Organizing as a structure only concerns informal relationships within the organization.

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Page 6 Sample Paper 07 CBSE 12th Business Studies

18. Which of the following statements correctly describes the selection process?
(A) Selection is the same as recruitment.
(B) Selection involves choosing the most suitable candidates from the pool of applicants.
(C) Selection only involves conducting interviews.
(D) Selection does not consider the qualifications of the candidates.

19. Which of the following statements about directing is NOT correct?

(A) Directing involves motivating and leading employees.
(B) Directing is solely responsible for planning organizational activities.
(C) Effective directing ensures that organizational goals are achieved.
(D) Communication is a key element of directing.

20. Which of the following statements is NOT correct regarding the importance of controlling?
(A) Controlling helps in achieving organizational goals.
(B) Controlling eliminates the need for planning.
(C) Controlling ensures efficient resource utilization.
(D) Controlling aids in identifying deviations from plans.

21. Anushka, a school bag manufacturer, decided to improve the product for profit maximisation
and thus, added a water bottle holder to the existing design.
(i) Identify the marketing management philosophy adopted by Anushka.
(ii) Explain this philosophy on the basis of
(a) Main focus (b) Means and ends

22. “Money is not the only motivator”, then what else is required to motivate employees? Explain
by giving any two points.


O
Write the meaning of motivation along-with its process. Also, name the person who gave Need
Hierarchy Theory.

23. Mr. Devraj, who is a vegetarian, went to a newly opened snacks corner. He asked the waiter
for a menu but the waiter informed him that the menu cards are in printing. Then Mr. Devraj
specifically asked for the options available for vegetarians.


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Page 7 Sample Paper 07

The waiter informed him about the available options and Mr. Devraj choose a particular
sandwich. He again specifically asked the waiter if the sandwich was veg, to which the waiter
replied affirmatively.
While eating, he found that the snack had non-vegetarian content. The packaging of the
product did not display that the product had non-vegetarian content. Will Mr. Devraj be able
to claim compensation?
Which right of the consumer is violated here?

24. Explain how controlling helps in

(i) accomplishing organisational goals.
(ii) judging accuracy of standards.


O
Explain any three importance of directing in an organisation.

25. You are a consumer. As per your view-points, what is consumer protection? Also state any
three responsibilities of a consumer.

26. Best Decor Home is a furniture manufacturing company. The company has been able to earn
substantial profit, yet they did not share their profits with the workers. This led to growing
unrest among them leading to fall in productivity and also the quality of their work.
Due to this, the company started facing the problem of falling revenues. Their HR manager Mr
Revanth advised the management to follow the principle of mental revolution. Is the advice of
HR manager appropriate? Elucidate.


O
“It can be said that management has some characteristics of profession, but it is still not a full
fledged profession.” Comment whether this statement is true or false. Also give three reasons
in support of your answer.

27. Discuss the importance of marketing in growth of a firm and economy.

28. SVG Auto Private Limited is setting up a new plant in India, for manufacturing auto components.
India has a highly competitive and cost effective production base in this sector. Many reputed
car manufacturers source their auto components from here.
SVG Auto is planning to capture about 40% of the market share in India and also export to the
tune of atleast $ 5 million in about 2 years of its planned operations. To achieve these targets,
it requires a highly trained and motivated work force. You have been asked by the company
to advise it in this matter. Which function of management helps in obtaining right people and
putting them on the right place/jobs? Explain any two benefits of this function.

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Page 8 Sample Paper 07 CBSE 12th Business Studies

29. Define stock exchange and explain two features of stock exchange.


O
Explain the concept of capital structure and state how cost of debt affects it.

30. Mr. Harsith, a social activist, was concerned with the pollution caused by the use of polythene
bags. These bags are non-biodegradable and are a great threat for the water bodies and also
adversely affect the quality of soil. To ban the use of these bags, he filed a writ petition in the
court.
The court also identified the threats caused by these bags and passed an order banning the use
of these bags as these bags are creating many environmental problems which affect the life of
people in general and society in general is more concerned about quality of life. The government
decided to give subsidy to jute industry to promote this business and innovative techniques
are being developed to manufacture jute bags at low rates with more innovation and better
technology, GDP of country is expected to rise.
Identify the different dimensions of business environment by quoting the lines from the above
particulars.

31. Explain any six factors affecting the decision that determines the amount of profit earned to be
distributed and to be retained in the business.

32. The first step in the process of planning is setting objectives. After that development of
premises is done. Then various alternatives are identified. Explain the further process (steps)
required to complete the process.


O
Distinguish between formal and informal’ organisation.

33. Zoya is running a successful business of providing high-end beauty services to the upper section
of society. Her parlour boasts of innovative beauty products. She has an in-house training
programme for new employees.
Also, she believes in high standards of performance and shares her profits with her employees.
She also gives them yearly bonus and salary hikes. But still she feels that her employees are not
as motivated as she wants them to be.
(i) Are financial incentives the only way to motivate employees?
(ii) What are non-monetary incentives?
(iii) State and explain any four non-monetary incentives which contribute to the performance
of employees.


O
Staffing is one of the most complex and crucial step which ensures success of any business
organisation. Staffing requires a lot of time and efforts. Briefly explain first six steps involved
in the process of staffing.

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Page 9 Sample Paper 07

34. Rashmi Furniture is a renowned company in Sadar Bazar of Delhi for manufacturing quality
furniture. From last 20 years, Rashmi Furniture has occupied the No. 1 position in the market.
It also specialised in imported furniture besides domestic one. It manufactures for both
commercial and residential/ domestic use. For this, company has hired two managers one each
for commercial department and residential department.
Mr. Sahani, who is the incharge of manufacturing furniture for commercial purpose, got the
target of manufacturing 100 pieces of office tables from a corporate house. To achieve this
target, Mr. Sahani has to operate on double shifts due to power failure most of the time. He is
able to manufacture 100 pieces of office tables but at a higher production cost.
Whereas, Mr. Chopra, who is the incharge of manufacturing furniture for residential/domestic
use, got the target of manufacturing 50 double beds for one Ashram in Vrindavan. Mr. Chopra
concentrated more on manufacturing beds with fewer resources (i.e., cutting down the cost of
production) due to which he could not achieve his target.
(a) From the two, which manager is effective but not efficient? Why?
(b) Name the manager who is efficient but not effective. Give reason also.
(c) What should be the ideal aim of managers in given situations?

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Page 1 Sample Paper 08

Sample Paper 08
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. FinGrowth Ltd., a mid-sized enterprise, aimed to expand its operations by opening new branches
across the country. The finance team conducted a thorough financing decision, evaluating various
funding options such as bank loans, issuing bonds, and raising equity through shareholders.
They determined that a balanced mix of debt and equity would minimize the cost of capital
while maintaining financial stability.
Once the necessary funds were secured, FinGrowth allocated resources efficiently across different
projects, ensuring optimal utilization of capital. The finance department diligently monitored
cash flows to maintain liquidity and managed investments to maximize returns while mitigating
risks. Additionally, FinGrowth implemented strict working capital management practices to
ensure that daily operations were adequately funded without overextending resources. The
company also established a budget control system to track expenditures and ensure they
remained within approved limits. Through informed financial decisions and strategic resource
allocation, FinGrowth successfully expanded its operations without compromising its financial
health, demonstrating effective financial management.
Which function of financial management is demonstrated by FinGrowth Ltd. evaluating and
choosing a mix of debt and equity to fund its expansion?
(A) Investment decision (B) Financing decision
(C) Dividend decision (D) Working capital management

2. FinServe Pvt. Ltd., a leading financial services company, operates within a dynamic financial
market. The company facilitates the buying and selling of financial instruments such as stocks,
bonds, and derivatives. By connecting investors with businesses seeking capital, FinServe plays
a pivotal role in the financial ecosystem. The financial market enables efficient allocation of
resources, liquidity provision, and price discovery, which are essential for economic growth and
stability. FinServe’s operations exemplify the fundamental functions of a financial market in
supporting both investors and issuers.
What role does FinServe Pvt. Ltd. play in the financial market?


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Page 2 Sample Paper 08 CBSE 12th Business Studies

(A) Manufacturing goods

(B) Facilitating the buying and selling of financial instruments
(C) Providing healthcare services
(D) Developing software solutions

3. The marketing concept assumes that a company can achieve its goals by:
(A) Maximizing production output
(B) Focusing on product quality alone
(C) Understanding and meeting customer needs
(D) Implementing aggressive selling techniques

4. EcoClean Services, a cleaning company, aimed to increase its market share by 20%. They
achieved this by expanding their client base (effectiveness) and optimizing resource usage,
reducing costs by 15% (efficiency). By implementing eco-friendly cleaning methods and training
employees to work swiftly without compromising quality, EcoClean balanced both effectiveness
and efficiency. This dual focus led to sustainable growth and high customer satisfaction,
positioning EcoClean as a leader in the eco-friendly cleaning industry.
How did EcoClean Services demonstrate both effectiveness and efficiency in their operations?
(A) By increasing the number of employees
(B) By expanding the client base and reducing costs
(C) By introducing new services without training
(D) By focusing solely on customer satisfaction

5. According to Taylor, ‘Fatigue Study’ aims to determine:

(A) The best time for workers to retire
(B) The amount and frequency of rest required to maintain efficiency
(C) How to make workers work longer hours
(D) The mental state of employees

6. AgroGrow Enterprises, an agricultural equipment manufacturer, thrives by adapting to the

economic dimension of the business environment. During economic downturns, AgroGrow
offers affordable financing options to farmers, ensuring steady sales. Conversely, in booming
economies, the company introduces premium products to cater to increased purchasing power.
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Page 3 Sample Paper 08

This strategic flexibility based on economic conditions helps AgroGrow sustain its business
across varying economic cycles.
How does AgroGrow Enterprises adapt to the economic dimension of the business environment?
(A) By ignoring market trends
(B) By offering affordable financing during downturns and premium products in booms
(C) By only focusing on premium products
(D) By reducing product lines

7. Assertion (A): Planning provides direction to the organization.

Reason (R): It helps in reducing uncertainties by anticipating future events.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation for A.
(B) Both A and R are true, but R is not the correct explanation for A.
(C) A is true, but R is false.
(D) A is false, but R is true.

8. Medicare Pharmaceuticals adopts a functional structure, organizing its operations into

departments like research and development, production, marketing, and finance. This structure
allows for specialization and expertise within each function, enhancing efficiency and product
quality. However, as the company expands internationally, it considers shifting to a divisional
structure to better address regional market needs and improve responsiveness, balancing the
benefits of both organizational structures.
What type of organizational structure does Medicare Pharmaceuticals initially adopt by
organizing departments based on functions like R&D and marketing?
(A) Divisional Structure (B) Matrix Structure
(C) Functional Structure (D) Flat Structure

9. Assertion (A): Performance appraisal is solely used for determining employee salaries.
Reason (R): Performance appraisal evaluates employee performance against set objectives.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) Both A and R are incorrect.

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Page 4 Sample Paper 08 CBSE 12th Business Studies

10. Alpha Electronics introduced a mentorship program where experienced employees guided new
hires. This initiative helped new employees adapt quickly, understand company culture, and
develop necessary skills, resulting in higher job satisfaction and reduced onboarding time.
Question: What directing strategy did Alpha Electronics use to enhance new employee
integration?
(A) Job rotation (B) Mentorship program
(C) Financial bonuses (D) Increased supervision

11. Read the following statements carefully:

Statement I: Controlling is a backward-looking function.
Statement II: The first step in the controlling process is setting performance standards.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Dividend decisions affect both current earnings and future growth of the company.
Statement II: A higher dividend payout always leads to higher market price of shares.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of actions in managing investment risk.

1 Assessing risk tolerance
2 Diversifying the portfolio
3 Monitoring investments
4 Setting financial goals
(A) 1, 4, 2, 3 (B) 2, 1, 3, 4
(C) 4, 1, 2, 3 (D) 1, 2, 3, 4

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Page 5 Sample Paper 08

14. Match the list I with list II and select correct option.
List I List II
a. Consumer Rights i Choose products
b. Right to Information ii Be heard
c. Right to Choose iii Seek redressal
d. Right to be Heard iv Access product information
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-iv, c-i, d-ii
(C) a-iii, b-i, c-iv, d-ii (D) a-ii, b-i, c-iii, d-iv

15. Consider the following statements about the concept of management:

1 Management is a dynamic process of achieving organizational goals efficiently and
effectively.
2 Management involves planning, organizing, staffing, directing, and controlling.
3 Management applies only to profit-making organizations.
4 Management integrates human and material resources.
Which of the above statement(s) is/are correct?
(A) 1, 2, and 4 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) All of the above

16. Identify the function of management being highlighted in the picture given below.

(A) Directing (B) Controlling

(C) Organising (D) Staffing

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Page 6 Sample Paper 08 CBSE 12th Business Studies

17. Which of the following statements is correct about the concept of ‘Business Environment’ ?
(A) It includes only internal factors affecting the business.
(B) It comprises external factors that influence a business.
(C) It refers exclusively to the economic factors affecting a business.
(D) It is irrelevant to business operations.

18. Which statement about the limitations of planning is correct?

(A) Planning enhances flexibility.
(B) Planning is an informal process.
(C) Planning can become outdated quickly.
(D) Planning guarantees long-term success.

19. Which of the following statements is NOT correct regarding the concept of organizing as a
structure and as a process?
(A) Organizing as a structure involves defining roles and responsibilities within an organization.
(B) Organizing as a process includes the continuous arrangement and coordination of resources.
(C) Organizing as a structure focuses solely on informal relationships among employees.
(D) Both organizing as a structure and as a process aim to achieve organizational objectives
efficiently.

20. Which of the following statements about internal recruitment is not correct?
(A) Internal recruitment can enhance employee morale.
(B) Internal recruitment broadens the talent pool significantly.
(C) Internal recruitment often reduces recruitment costs.
(D) Internal recruitment relies on existing employees for filling vacancies.

21. List any three functions performed by the top level management.


O
‘Environment provides with constraints and opportunities.’ Discuss with the help of an example.


Ans :

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Page 7 Sample Paper 08

22. Identify and discuss the marketing management philosophy that laid stress on improving the
level of production thereby reducing the average cost of production.

23. Hemant decided to start a chocolate manufacturing business. He set the target of earning 10%
profit on sales in the first year. As a good businessman, he was concerned about the future of
the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared
it with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Hemant that are related to the process of
one of the functions of management.

24. Discuss the importance of Organising in a business concern.

O
Explain when and why the need is felt for having a framework, within which managerial and
operating tasks are performed to accomplish desired goals. Name this ‘framework’ also.

25. Describe different types of depository services.

26. Discuss giving reasons why a business must emphasise on protecting the interest of consumers
and adequately satisfying them.

27. Despite internal sources of recruitment being economical, why do companies not always use this
source? Explain any four reasons.

O
Discuss Maslow’s Need Hierarchy Theory of Motivation.

28. From time to time, an organisation provided the employees with a hike in their salary and
different allowances. It also offered the top and middle level managers with some facilities like
housing and medical. Inspite of this, the employees often felt low and dejected. The Human
Resource Manager tried to identify the reason and he found that the employee turnover was
high in the organisation. The employees were fired from the job for even petty reasons. This
had created a fear in their minds. Also, they were not given sufficient opportunities to interact
with each other and the top level management did not entertain any suggestions from the
employees.
(a) Which incentives were offered by the organisation? State its types by referring to the lines.
(b) Which incentives, they still need to offer to motivate the employees. Quote the lines to
justify its types.
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Page 8 Sample Paper 08 CBSE 12th Business Studies

29. Guru Steel Private Limited allocated work to different teams of workers. Teams were responsible
for cutting of wood, polishing of wood, designing the furniture, assembling of parts respectively.
All the workers had mutual trust amongst each other and worked together in harmony. They
kept their tools and implements in tool boxes. They followed certain rules while working, like no
smoking while working, no leave without permission and no use of cell phones during working
hours. They were paid fair wages for their work which was within the paying capacity of the
company.
Identify any four principles of management being followed in this organisation and state their
one advantage of each.

30. Discuss the technique of functional foremanship given by FW Taylor.

O
After identifying that the majority of Indians were vegetarians, the big giants like KFC and Mc
Donalds introduced Veggie Wraps and Paneer Burgers for them. This not only helped them to
fetch a good response in the market but also provided them with an opportunity to continue to
succeed in the market for a longer period.
What does the above situation tells about the importance of environment scanning to the big
giants? Explain any three other benefits.

31. Business concerns work in a dynamic environment. The introduction of robotics in the
manufacturing processes has led to a revolution in the international market. Identifying this
and to get the benefit from this, Castle Ltd. decided to introduce it in their production process.
But to handle the robots they needed to train their employees. Since the Robots were too
expensive so they did not want the employees to handle them directly.
(a) Which method of training should be followed by them and why?
(b) State any four points of importance of training to the employees.

32. Planning as a function of management requires application of mind and involves intelligent
imagination and sound judgements. It also involves thorough examination and evaluation of
different alternatives to choose the most appropriate one.
(a) Which features of planning are referred to?
(b) Discuss four other features of planning.

33. Vanita deals in the manufacturing of handmade baskets. Her baskets are handcrafted and
made for all the special occasions and festivals. She has given it the name of ‘The Lap’. Each
of the product is attached with a proper label specifying the weight, price, material used and
instructions for its usage. The baskets are nicely packed in corrugated boxes to ensure that
they do not spoil during the transport. To make the consumers aware about her product, she
spent a lot on printing the pamphlets and brochures. During festival time, sales persons are
appointed to contact prospective buyers and create awareness about the product. The products
are moderately priced. As competition is intense in the market, the pricing policy is such to
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Page 9 Sample Paper 08

survive in competitive market. This year, Vanita received a good response from the market and
gained a larger market share.
Identify and explain the concept of marketing mix and its elements that are discussed above.

O
Mr. Bansal is running a poultry farm. He supplies eggs in the neighbouring market under
the brand name ‘Healthy Anda’ . The product is packed in reusable crate of six pieces each.
A proper label is also pasted giving the necessary information to the customers. Explain this
component of product mix along with its functions.

34. Mobu Toys Private Limited was an established brand in the field of electronic toys. It had its
operations spread out in three countries, India, France and Australia. Due to the high demand
of its toys in international market, it decided to set up a manufacturing unit in Japan also.
To start with, they had two options, i.e., to enter into a joint venture with an existing toy
manufacturing company in Japan or to install their own plant. It also tried to find out the
different financing alternatives available there, lease financing being one of them. Since, they
would work on automated machines, so the requirement of labour would be relatively less for
them.
State, by quoting the relevant lines, the different factors affecting their fixed capital requirements
considered by them and how will they impact them.


O
Mr. Harish Parekh was the chairman of ‘Bandhan Bank’. The Bank was earning good profits.
Shareholders were happy as the bank was paying regular dividends. The market price of their
shares was also steadily rising. The bank announced taking over of ‘Karur Bank’.
Harish Parekh knew that the share price of Bandhan Bank would rise on this announcement.
Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his
rich friends Nilesh and asked him to invest `6 crores in the shares of his bank promising him
the capital gain. As expected, the share prices went up by 40% and the market price of Nilesh’s
shares was now `8.4 crores. He had earned a profit of `2.4 crores. He gave `1.2 crore to Mr.
Harish Parekh and kept `1.2 crore with him. On regular inspection and by conducting enquiries
of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this
irregularity. SEBI imposed a heavy penalty on Harish Parekh.
By quoting the lines from the above para, identify and state any two functions that were
performed by SEBI in the above case. Also, explain two more functions of the same category
each.

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Page 1 Sample Paper 09

Sample Paper 09
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. Spark Industries, a manufacturing company, focused on effective directing to boost employee

productivity and morale. The management implemented a recognition program that rewarded
employees for outstanding performance with bonuses and public acknowledgements. Clear
communication channels were established through regular team meetings and updates, ensuring
that all employees were informed about company goals and their roles in achieving them.
Supervisors provided guidance and support, addressing any challenges employees faced in their
tasks. Additionally, Spark Industries conducted leadership training to equip managers with
skills to inspire and lead their teams effectively. The company also introduced a feedback system
where employees could share their ideas and concerns, fostering an open and collaborative
work environment. This approach fostered a positive work culture, increased employee
engagement, and improved overall organizational performance. By emphasizing motivation and
communication, Spark Industries successfully aligned its workforce with its strategic objectives,
driving the company towards greater success.
Which element of directing is demonstrated by Spark Industries’ implementation of a recognition
program to reward outstanding performance?
(A) Supervision (B) Motivation
(C) Communication (D) Leadership

2. HealthFirst Hospitals, led by CEO Dr. Anil Gupta, implements a robust controlling system to
ensure high-quality patient care. The hospital sets specific performance standards for various
departments, such as average patient wait times and treatment success rates. Utilizing data
analytics, HealthFirst continuously measures actual performance against these standards.
Regular performance reviews help identify areas needing improvement, enabling the hospital to
maintain excellence in healthcare delivery.
What aspect of controlling is HealthFirst Hospitals demonstrating by setting performance
standards and measuring actual performance against them?
(A) Planning (B) Organizing
(C) Controlling (D) Staffing
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Page 2 Sample Paper 09 CBSE 12th Business Studies

3. What is the primary objective of financial management?

(A) Maximizing sales (B) Minimizing costs
(C) Maximizing shareholder wealth (D) Ensuring employee satisfaction

4. QuickFinance Ltd., a prominent banking institution, specializes in operations within the money
market. The company deals with short-term borrowing and lending of funds, typically with
maturities of less than one year. QuickFinance offers instruments like Treasury bills, commercial
papers, and certificates of deposit to corporations and government entities. By facilitating these
short-term financial transactions, QuickFinance enhances liquidity in the economy, allowing
businesses to manage their working capital efficiently and ensuring that funds are available for
immediate financial needs.
Which financial instruments does QuickFinance Ltd. primarily deal with in the money market?
(A) Stocks and bonds
(B) Treasury bills and commercial papers
(C) Real estate and commodities
(D) Mutual funds and ETFs

5. Which of the following is a feature of marketing?

(A) It is a one-time activity
(B) It creates utility for customers
(C) It focuses solely on selling
(D) It ignores customer feedback

6. Sunrise Manufacturing Pvt. Ltd., headed by CEO Mrs. Leena Rao, set specific objectives to
drive growth: increasing production by 30%, reducing waste by 10%, and improving employee
training programs. By clearly defining these goals, Sunrise aligned its resources and efforts
towards achieving them. The company implemented quality control measures, invested in
employee development, and streamlined production processes. These objectives guided the
company’s strategic decisions, leading to increased productivity, cost savings, and a more
skilled workforce.
What are the primary objectives of Sunrise Manufacturing Pvt. Ltd.?
(A) Expanding product lines and marketing
(B) Increasing production, reducing waste, and improving training
(C) Enhancing customer service only
(D) Diversifying investments

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7. Assertion (A): Management principles are flexible guidelines for decision-making.

Reason (R): They are rigid laws that must be followed in all situations.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

8. GreenFashion Ltd., a sustainable clothing brand, leverages the social dimension of the business
environment by aligning its products with growing consumer awareness about environmental
conservation. The company promotes eco-friendly materials and ethical manufacturing practices,
attracting socially conscious consumers. By responding to social trends, GreenFashion enhances
its brand image and increases customer loyalty.
How does GreenFashion Ltd. utilize the social dimension of the business environment?
(A) By reducing product quality
(B) By aligning products with environmental conservation trends
(C) By ignoring consumer preferences
(D) By increasing prices only

9. Assertion (A): Single-use plans are developed for unique projects.

Reason (R): They remain relevant indefinitely until the project is completed.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation for A.
(B) Both A and R are true, but R is not the correct explanation for A.
(C) A is true, but R is false.
(D) A is false, but R is true.

10. PQR Textiles operates in three major cities with each city having its own production unit. To
manage the diverse operations effectively, the company adopted a divisional structure where
each production unit operates independently, focusing on the specific demands of its region.
Question: What type of divisional structure has PQR Textiles most likely implemented ?
(A) Product-based divisional structure
(B) Geographic-based divisional structure
(C) Customer-based divisional structure
(D) Process-based divisional structure
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Page 4 Sample Paper 09 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Internal sources of recruitment include promotions and transfers.
Statement II: External recruitment is more time-consuming and expensive than internal
recruitment.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Democratic leadership style involves subordinates in decision-making.
Statement II: Autocratic leadership leads to high employee satisfaction and morale.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in the controlling process.

1 Measuring actual performance
2 Establishing standards
3 Taking corrective actions
4 Comparing performance with standards
Which of the following sequences is correct?
(A) 2 - 1 - 4 - 3 (B) 1 - 2 - 3 - 4
(C) 2 - 4 - 1 - 3 (D) 2 - 1 - 3 - 4

14. Match the list I with list 2 and select correct option.
List I List II
a. Capital Market i Short-term securities
b. Primary Market ii New issue market
c. Secondary Market iii Long-term securities
d. Money Market iv Buying and selling of securities


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Page 5 Sample Paper 09

Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-ii, b-iii, c-iv, d-i
(C) a-iv, b-i, c-ii, d-iii (D) a-iii, b-ii, c-iv, d-i

15. Statement: The stock market facilitates various trading activities. Which of the following is/
are correct?
1 It allows for the trading of both stocks and bonds.
2 It operates without regulatory oversight.
3 It helps determine the price of securities.
4 It is only accessible to institutional investors.
(A) 1 and 3 only (B) 2 and 4 only
(C) 1 and 2 only (D) All of the above

16. Identify the type of the organisation structure adopted by the company as it leads to occupational
specialisation, minimal duplication of effort which results in economies of scale and lowers the
cost.

(A) Divisional Structure (B) Functional structure

(C) Informal organisation (D) Formal organisation

17. Which of the following statements about the concept of management is correct?
(A) Management is only required in large organizations.
(B) Management focuses solely on profit maximization.
(C) Management is the process of getting things done through others efficiently and effectively.
(D) Management does not involve coordinating resources.

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Page 6 Sample Paper 09 CBSE 12th Business Studies

18. Which of the following statements is correct about the principle of Unity of Command?
(A) Employees should report to multiple supervisors.
(B) Each employee should have one direct supervisor only.
(C) It encourages confusion in reporting relationships.
(D) It is irrelevant for modern organizations.

19. Which of the following statements is not correct regarding the social dimension of the Business
Environment?
(A) It includes demographic trends like population growth.
(B) It involves societal values and cultural norms.
(C) It directly affects the technological advancements in a business.
(D) It influences consumer behavior and market demand.

20. Which of the following statements is not correct regarding a strategy in planning?
(A) Strategies are focused on long-term objectives.
(B) Strategies provide a general framework for decision-making.
(C) Strategies are the same as budgets.
(D) Strategies help maintain competitiveness.

21. Mrs. Lalita Kedia had bought a silk saree from Kanpur Saree Center for ` 6,580. She wore
the saree on a couple of occasions but even before a wash, it started tearing on its own. She
complained to the dealer who said good once sold could not be taken back nor refund was
possible. What right can be exercised by the buyer in this case?

22. “Every action in the organisation is initiated by directing.” In the light of this statement,
describe any three importance of directing.


O
“An ideal control technique is the one that checks every bit of performance.” Comment.

23. During covid pandemic, in 2021, Peter left his luxurious life in Delhi, where he worked as
a general manager at prestigious company. He shifted to Neemrana, Rajasthan to fulfil his
father’s dream of converting their 32-acre ancestral land into a fertile farm.


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Page 7 Sample Paper 09

For this, he set out specific goals along with the activities to be performed to achieve the goals.
Every activity was a challenge as he was clueless about farming. So, he decided to learn every
activity from filling the land to sowing the seeds.
Further, he had a thought to aid farmers by launching his own company ‘Creative Farming
Pvt. Ltd.’
The above case highlights the features of planning function of management. Identify and explain
any two such features.

24. Explain any three determinants of working capital requirements.

O
Briefly explain any two money market instruments available for private companies.

25. Saison Global Consultancy is a MNC working in consulting industry for past 22 years. Company
provides healthy work culture with open communication system. Management emphasises on
justice to all employees. It also promotes mutual trust and belongingness among team members.
By doing this, certain principles of management are being followed. State the principles of
management followed by company and write any two positive effects of such principles.

26. Discuss the methods by which securities are issued in the primary market.

27. Explain the various networks of formal communication.

O
There are various financial and non-financial incentives used to motivate employees to improve
their performance. Discuss any two financial incentives and two non-financial incentives.

28. ‘Elecrtro Switch Private Limited is an electronic goods manufacturing company situated in
Bhiwadi, Rajasthan. It is earning a very low revenue in comparison to a competing electronic
goods manufacturing company, ‘NVC Electrical Private Limited situated in Solan, Himachal
Pradesh. Both company’s operations are affected directly by the investors, customers,
competitors and suppliers, which are unique to their respective locations. In addition to this,
individuals and firms of this field are affected indirectly by factors like the money supply,
composition of families, etc.
(i) Identify the concept discussed in the above paragraph.
(ii) Also, state any three points of importance of the concept identified above.

29. Goodmoon School believes in all round development of children, focusing both on academics
and on sports and extra-curricular activities. Many students of this school have secured ranks
at the state level in the board exams and also some of the students have excelled at the state
and national games.


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Page 8 Sample Paper 09 CBSE 12th Business Studies

One of the key reasons for such excellent performance of the students is that the school hires
highly qualified teachers and pays them well.
The school has presently vacancies for middle level classes. The internal sources have been
exhausted. Explain any four sources of recruitment that the school can use for filling up these
vacancies.


O
A good control system helps the organisation to achieve the goals effectively. State any four
benefits that the organisation drive from a good control system.

30. What are the different leadership styles in an organisation? Explain any two.

31. Capital markets in India have undergone through some major reforms in the past few years
leading to its more efficient trading of securities. Explain any two such reforms.


O
There are two Companies P and Q. Total contribution of capital is ` 40 lakh each. The ratio of
equity to total capital in Company B is ` 10 lakh and debt is ` 30 lakh while in Company D,
the total equity capital is ` 40 lakh, sourced through equity. EBIT is ` 8 lakh, the interest rate
on debt is @ 10% and the tax rate is 30%. Which company enjoys favourable financial leverage?

32. How can you define market traditionally as well as in modern sense? Also, mention its
classification on the basis of product, geographical region, buyers and quantity of goods.


O
When Sarika opened the door on hearing the doorbell, a person was standing who was selling
Goodbright facemasks’.
He was also offering that on buying ten facemasks’, you will get ‘a pair of hand gloves’ free.
Identify the element of promotion mix that the Goodbright company is using.
Also, explain why the element so identified, is important for a businessmen?

33. Saanvi purchased 2 litre carton milk from 24 # 7 convenience store. After drinking the milk, she
felt irritation, rashes and tiny bumps all over her body.
Her sister, Sarah saw the carton milk and realised that product has already expired.
Sarah rushed to the store to inquire about the same. Salesman informed her to contact to
the customer care centre for the reason that they supplied them milk on daily basis. Sarah
connected with their customer care cell who refused to take her complaint. Now, Sarah wants
to file complaint in district commission and wants to seek compensation for the treatment of
her sister.
(i) Identify the responsibility neglected by Saanvi.
(ii) Identify the right(s) violated by the company.
(iii) Can Sarah file complaint in District Commission on behalf of her sister? Also, state who
can file a complaint?

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Page 9 Sample Paper 09

34. Somnath Export Private Limited, is engaged in the business of export of garments. In the
past, the performance of the company had been upto the expectations. In line with the latest
technology, the company decided to upgrade its machinery. For this, the Finance Manager,
Raheja estimated the amount of funds required and the timings. This will help the company
in linking the investment and the financing decisions on a continuous basis. Raheja therefore,
began with the preparation of a sales forecast for the next four years. He also collected the
relevant data about the profit estimates in the coming years. By doing this, he wanted to be
sure about the availability of funds from the internal sources of the business. For the remaining
funds he is trying to find out alternative sources from outside.
Identify the financial concept discussed in the above para. Also state the objectives to be
achieved by the use of financial concept, so identified.

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Page 1 Sample Paper 10

Sample Paper 10
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. HealthCare Plus Hospital undertook a major restructuring to improve patient services and
operational efficiency. The management established distinct departments such as emergency,
cardiology, oncology, and administrative services, each led by specialized managers. This
departmentalization ensured that each area had clear roles and responsibilities, enhancing
overall efficiency.
Additionally, HealthCare Plus implemented a hierarchical structure to streamline communication
and decision-making processes. Resources were allocated appropriately to each department, and
inter-departmental coordination was facilitated through regular meetings and integrated IT
systems. By delegating authority to department heads, the hospital empowered them to make
timely decisions, reducing delays and enhancing service quality. This organized approach enabled
HealthCare Plus to deliver high-quality healthcare services, minimize operational redundancies,
and respond effectively to patient needs, thereby improving overall organizational performance.
What organizing principle is highlighted by HealthCare Plus Hospital establishing distinct
departments like emergency, cardiology, and oncology?
(A) Division of work (B) Departmentalization
(C) Delegation of authority (D) Span of control

2. Innovatech Solutions Pvt. Ltd., led by CEO Mr. Rajesh Kumar, focuses on developing cutting-
edge software products. Understanding the concept of staffing, Mr. Kumar ensures that the
company hires the right talent to meet its strategic goals. The HR department conducts
thorough job analyses to identify the skills and competencies required for each position. By
aligning staffing practices with organizational objectives, Innovatech ensures that it has a
skilled and motivated workforce, which is essential for maintaining its competitive edge in the
technology market.
What aspect of staffing is Innovatech Solutions Pvt. Ltd. emphasizing by conducting thorough
job analyses?
(A) Recruitment (B) Selection
(C) Concept of staffing (D) Training
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Page 2 Sample Paper 10 CBSE 12th Business Studies

3. Which leadership style emphasizes collaboration and involves employees in decision-making?

(A) Authoritative (B) Democratic
(C) Laissez-faire (D) Transactional

4. BrightFuture Manufacturing, under CEO Ms. Kavita Mehra, emphasizes the importance of
controlling to maintain production efficiency. The company uses Key Performance Indicators
(KPIs) to monitor production rates, defect rates, and employee productivity. By regularly
reviewing these metrics, BrightFuture can quickly identify and rectify issues, ensuring consistent
product quality and operational efficiency. This proactive approach reduces waste, lowers costs,
and enhances customer satisfaction.
How does BrightFuture Manufacturing illustrate the importance of controlling in its operations?
(A) By expanding its product line
(B) By monitoring KPIs to maintain production efficiency
(C) By hiring more employees
(D) By increasing marketing efforts

5. Which of the following is NOT a function of financial management?

(A) Financial planning
(B) Investment decisions
(C) Marketing strategies
(D) Dividend decisions

6. GreenEnergy Corp., a renewable energy company, decides to raise capital by issuing new
shares through the primary market. The initial public offering (IPO) allows the company to
attract new investors and secure funds for expanding its solar panel production facilities. Once
the shares are listed on the stock exchange, existing investors can buy and sell these shares
in the secondary market. This two-tiered approach ensures that GreenEnergy not only raises
fresh capital but also provides liquidity to its shareholders, enhancing the attractiveness of its
securities.
What activity is GreenEnergy Corp. undertaking when it issues new shares to the public
through an IPO?
(A) Trading shares on the stock exchange
(B) Issuing shares in the primary market
(C) Buying back shares from investors
(D) Facilitating share trading in the secondary market

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7. Assertion (A): Market segmentation leads to a waste of marketing resources.

Reason (R): Market segmentation helps in targeting specific groups with tailored marketing
efforts.
Choose the correct option:
(A) Both A and R are true, but R is not the correct explanation of A.
(B) Both A and R are false.
(C) A is false, but R is true.
(D) Both A and R are true, and R is the correct explanation of A.

8. TechVision Pvt. Ltd., a tech startup led by Mr. Rohan Desai, realized the importance of
management in scaling operations. By implementing structured management practices,
TechVision effectively coordinated between development, marketing, and customer support
teams. This coordination ensured timely product launches, efficient resource use, and high-
quality customer service. The structured management also facilitated better decision-making,
enhanced employee morale, and sustained competitive advantage, demonstrating how critical
management is for organizational success.
How did TechVision Pvt. Ltd. demonstrate the importance of management in their operations?
(A) By hiring more employees
(B) By implementing structured management practices
(C) By focusing solely on product development
(D) By ignoring employee feedback

9. Assertion (A): Fayol’s principles of management are universally applicable.

Reason (R): They provide a framework for effective management across various organizations.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

10. XYZ Ltd., a manufacturing company, faced a significant increase in raw material costs due
to inflation. To maintain profitability, they adjusted their product prices, but customers
started looking for cheaper alternatives. The company also implemented cost-cutting measures,
including reducing employee bonuses and cutting operational costs. What was the primary
factor in XYZ Ltd.’s decision to raise product prices?
(A) Social factors (B) Political factors
(C) Economic factors (D) Legal factors
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Page 4 Sample Paper 10 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Planning provides direction for action.
Statement II: Planning eliminates the need for coordination among departments.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Centralization refers to the concentration of decision-making authority at the top
levels.
Statement II: Decentralization hinders the development of managerial talent.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Regarding the staffing process, which of the following sequences is correct?
1 Recruitment
2 Selection
3 Placement
4 Training
(A) 1, 2, 3, 4 (B) 2, 1, 3, 4
(C) 1, 3, 2, 4 (D) 3, 1, 2, 4

14. Match the list I with list 2 and select correct option.
List I List II
a. Leadership iv Overseeing work
b. Motivation iii Exchange of ideas
c. Communication i Influencing people
d. Supervision ii Fulfillment of needs

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Page 5 Sample Paper 10

Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-iv, c-iii, d-i
(C) a-ii, b-i, c-iii, d-iv (D) a-i, b-iii, c-ii, d-iv

15. The relationship between planning and controlling can be described as:
1 Planning sets the objectives, and controlling ensures they are achieved.
2 Controlling replaces the need for future planning.
3 Planning and controlling are independent functions.
4 Controlling provides feedback to improve planning.
Which of the following is/are correct?
(A) 1 and 4 only (B) 2 and 3 only
(C) 1, 3, and 4 only (D) All 1, 2, 3, and 4

16. Name the feature of marketing referred to as the essence of marketing.

(A) Exchange mechanism (B) Needs and wants

(C) Creating a market offering (D) Customer value

17. Which of the following statements is correct?

(A) A stock market index reflects the performance of a single stock.
(B) Mutual funds only invest in government securities.
(C) ETFs can be traded like stocks while diversifying investments.
(D) Hedge funds are regulated like mutual funds.

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18. Which of the following statements is correct?

(A) Branding is unnecessary for products that have unique physical features.
(B) Packaging serves only to protect the product and has no marketing value.
(C) Labelling provides information about the product and can influence consumer decisions.
(D) The price of a product is determined solely by the cost of production.

19. Which of the following statements about the concept of management is NOT correct?
(A) Management is a process of getting things done through others.
(B) Management applies only to business organizations.
(C) Management involves coordinating and overseeing the work activities of others.
(D) Management aims to achieve organizational goals efficiently and effectively.

20. Which of the following statements is NOT correct about the significance of management
principles?
(A) They help in maintaining consistency in decision-making.
(B) They are irrelevant to organizational success.
(C) They enhance communication and coordination among teams.
(D) They provide a foundation for organizational structure.

21. State any three ‘Development functions’ of Securities and Exchange Board of India (SEBI).

22. “Mr. Ajeet, Production Manager, and Mr. Ravi, Human Resource Manager, were discussing
the plans related to fresh recruitment of employees in their company. Mr. Ajeet wanted that
Mr. Ravi should scientifically select the person and the work assigned to him should suit his/
her intellectual capabilities. Mr. Ravi wanted that the work should be divided into specialised
tasks and then assigned to the worker according to his capability which will lead to increased
efficiency in the production process.”
The given statement proves that the principles of Fayol and Taylor are complementary. Identify
and explain the principles of management referred to above.

23. Teena purchased an electric iron from an authorised dealer of the manufacturer. She checked
the ISI mark and took receipt for the same from the dealer. Her friend, Reena got an electric
shock while using the same electric iron and had severe injuries in her hand. Reena decided to
file a complaint against the manufacturer for a claim of `1.5 Lakh.

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Can Reena file a complaint against the manufacturer? If yes, suggest her an appropriate forum
to file her complaint in the three-tier machinery under the Consumer Protection Act, 2019.


O
‘The act of designing and producing the container or wrapper of a product has three different
levels.’ Explain them.

24. State the steps in the selection procedure, after the employment interview and before the job
offer.


O
The marketing head of an organisation made an exhaustive plan for achieving its sales target.
Targets and standards were fixed. However, when the plan was put to test, it was found that
the targets set in the plan were impractical. As a result the plan was reprocessed and fresh
standards set.
(a) Identify and briefly explain the management function involved in the process.
(b) Give any two importance of management functioning identified in part (a).

25. Hottex Electrical Private Limited set up a manufacturing unit at Neemrana in Rajasthan to
manufacture electric geysers and supply them to dealers all over the country. Their production
target was 600 geysers per week. It was decided by the management that variation in production
upto 10 units would be acceptable.
At the end of the first week, the production was 540 geysers. The next week, production
increased to 575 geysers. A week later, production was 560 geysers. On investigation, it was
found that fluctuation in production was due to irregular supply of electricity.
The above para discusses the steps in the process of one of the functions of management.
Explain these steps.

26. “It is an institution which provides a platform for the buying and selling of existing securities.”
Identify and explain any three functions of the given institution.


O
‘Long-term investment decision relates to investment in fixed assets which must be taken very
carefully after considering several factors affecting it.’ Identify and briefly explain the decision
highlighted in the given statement. Also, state the factors affecting this decision.

27. Distinguish between ‘Delegation’ and ‘Decentralisation’ on the basis of:

(a) Status
(b) Nature
(c) Purpose
(d) Scope

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Page 8 Sample Paper 10 CBSE 12th Business Studies

28. Mr. RK Oberai, the CEO of Softex Rubber Private Limited, contacted the Personnel Manager
and enquired: “What is the problem with the workers? The wage bill shows that we pay them
the highest in the industry. Our working conditions are fine. Our fringe benefits are excellent.
Still these workers are not motivated. What do they really require?” The Personnel Manager
replied: “I have already informed you a number of times that money, working conditions and
benefits are not enough. Other things are equally important. One of the workers recently
gave me a clue, he felt that hardwork and efficiency go unnoticed and unrewarded in our
organisation. Our promotion and benefit plans are tied up to the length of service. Even the
lazy workers, accordingly, enjoy all the benefits in the organisation, which, in fact, according to
workers, should go only to those who work hard.”
Identify the type of incentives referred to by Mr. RK Oberai in the given case. State any three
other incentives for the employees which the personnel manager wanted to introduce.

29. The financial reforms of Government of India as to ‘Make in India’ have motivated many
multinational firms to start producing their goods in India. These reforms have also helped
young entrepreneurs to raise funds from financial markets and get technological support through
collaborations. Domestic producers have also started working on efficiency and improvement in
quality as they foresee threats from foreign goods being made available in India.
Quoting lines from above, identify and explain any two importance of understanding business
environment.

30. The main objective of the Staffing function of management is to obtain, utilise and maintain a
satisfactory and satisfied work force. State any four importance of this function.


O
Romesh is working as a supervisor in a company since last five years. Due to his hard work and
expertise, he is promoted to the post of Production Manager. The post of supervisor laid vacant
and no one in the company was competent enough to be transferred or promoted for the post.
State two advantages and two limitations of the source of recruitment the company will use to
fill the post of supervisor.

31. Ramesh Mittal, CEO of Goldy Fabric Private Limited had a firm belief in teamwork where
the members of the company should work towards fulfilling the common organisational goals.
He gave more emphasis on teamwork and integration of efforts of all individuals, departments
and specialists. He gave importance to reconciliation of individual as well as departmental
differences and creating a work environment which enables all its members to grow and develop
to their maximum capacity.
(a) Identify the concept of management discussed here and state any three features of it.
(b) Identify and explain the characteristic of management which is reflected here.

32. “How can a company having a ‘less’ working capital call itself successful?” DK Grover asked
his friend Rohan. They had recently joined DEF Pvt. Ltd. as management trainees and were
having their lunch in the company’s staff canteen. DEF is a infrastructural company, with
its scale of operation confined to Punjab. DK Grover had spent the morning, studying the
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Page 9 Sample Paper 10

company’s Balance Sheet for the years 2017-18 and 2018-19 and was surprised to see that the
company’s current liabilities were almost equal to its current asset.
Explain any six factors which can be used by Rohan to explain the reasons for the lower
working capital of the company.


O
Debt and equity differ significantly in their cost and riskness for the firm. The cost of debt is
lower than the cost of equity but it is more risky for a business. Ideally, a company must choose
such risk return combination which maximises shareholder’s wealth.
Show with an example how shareholders gain due to loan component in capital employed.

33. “It is the most important factor affecting the success or failure of a product in the market. It
also affects the revenue and profits of the firm.” Identify the marketing factor and explain the
factors that affect its determination by an organisation.


O
‘One of the important task of marketer is to design and develop a tag to be put on the
products displaying important information.’ Identify and explain the functions of this task in
the marketing of products.

34. SR Khanna started a mobile manufacturing company, Mobu Electronics Private Limited to
manufacture economical mobile phones for the Indian rural market with 20 employees. The
company did very well in its initial years. As the product was good and marketed well, the
demand of its products went up. To increase production, the company decided to recruit
additional employees. SR Khanna, who was earlier taking all decisions for the company had to
selectively disperse the authority. She believed that subordinates are competent, capable and
resourceful and can assume responsibility for effective implementation of their decisions. This
paid off and the company was not only able to increase its production but also expanded its
product range.
Identify the concept used by SR Khanna through which she was able to steer her company to
greater heights and explain its importance for an organisation.

******

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Page 1 Sample Paper 11

Sample Paper 11
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. GreenDrive Automobiles, a leading car manufacturer, faced new business environment challenges
with the introduction of stricter emission regulations. To comply, GreenDrive invested in research
and development to produce hybrid and electric vehicles, addressing the legal environment.
Simultaneously, recognizing the growing social environment trend towards eco-friendly
transportation, the marketing team launched campaigns highlighting the environmental benefits
and cost savings of their new models. Technological advancements in battery technology
enabled the production of more efficient electric cars, catering to the technological environment.
Additionally, GreenDrive adjusted its pricing strategies to make sustainable vehicles more
accessible, responding to the economic environment.
By proactively addressing legal, social, and technological factors, GreenDrive not only complied
with regulations but also gained a competitive edge in the eco-friendly automotive market.
Their strategic adaptation to various components of the business environment ensured sustained
growth and enhanced brand reputation, positioning GreenDrive as a pioneer in sustainable
mobility solutions.
Which component of the business environment is GreenDrive Automobiles responding to by
investing in hybrid and electric vehicles to comply with new emission regulations?
(A) Economic environment
(B) Social environment
(C) Technological environment
(D) Legal environment

2. HealthCare Plus Hospital followed the planning process to introduce a new telemedicine service.
The steps included:
1. Setting Objectives: Aim to increase patient reach by 30%.
2. Developing Premises: Assess infrastructure needs.
3. Identifying Alternatives: Choose between different telemedicine platforms.

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Page 2 Sample Paper 11 CBSE 12th Business Studies

4. Evaluating Alternatives: Compare costs and benefits.

5. Choosing the Best Alternative: Select the most efficient platform.
6. Implementing the Plan: Launch the service.
7. Monitoring and Control: Track service performance and patient feedback.
This structured approach ensured a successful rollout of the telemedicine service.
Which step in the planning process did HealthCare Plus Hospital perform by choosing the most
efficient telemedicine platform?
(A) Setting Objectives (B) Developing Premises
(C) Evaluating Alternatives (D) Monitoring and Control

3. In a functional structure, which manager is responsible for coordinating activities across

different functions?
(A) Chief Executive Officer (CEO) (B) Functional Manager
(C) Operations Manager (D) Project Manager

4. TechWave Innovations, a rapidly growing tech firm, employs a robust recruitment process to
attract top talent. The company utilizes both internal and external sources for recruitment.
Internal sources include employee referrals and promotions, which help in retaining existing
talent and leveraging their institutional knowledge. External sources involve online job portals,
recruitment agencies, and campus placements, which bring in fresh perspectives and specialized
skills. By balancing internal and external recruitment, TechWave ensures a diverse and capable
workforce that drives innovation and growth.
What are the sources of recruitment that TechWave Innovations utilizes to attract top talent?
(A) Only internal sources (B) Only external sources
(C) Both internal and external sources (D) Neither internal nor external sources

5. What is the primary focus of Maslow’s safety needs?

(A) Food and shelter (B) Security and protection
(C) Relationships and friendships (D) Self-fulfillment

6. BrightPath Logistics, led by CEO Ms. Anjali Sharma, utilizes the concept of controlling to
manage its extensive delivery network. The company establishes performance metrics such as
delivery times, accuracy rates, and customer satisfaction scores. By continuously monitoring
these metrics, BrightPath can ensure that its operations remain efficient and meet the established
standards. Any deviations are promptly addressed through targeted interventions, ensuring the
reliability and effectiveness of the logistics services.


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Page 3 Sample Paper 11

What is BrightPath Logistics illustrating by establishing and monitoring performance metrics?

(A) Planning (B) Organizing
(C) Controlling (D) Staffing

7. Assertion (A): Financial management aims to maximize shareholder wealth.

Reason (R): Profit maximization is the sole objective of financial management.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A
(B) Both A and R are true, but R is not the correct explanation of A
(C) A is true, but R is false
(D) A is false, but R is true

8. BrightFuture Traders, a brokerage firm, follows a structured trading procedure in the stock
exchange. The process begins with clients placing orders through the firm’s trading platform.
These orders are then routed to the stock exchange where they are matched with corresponding
buy or sell orders. Upon execution, the transactions are settled through the depository services,
and the shares are credited or debited from the clients’ demat accounts. BrightFuture ensures
compliance with regulatory standards, providing seamless and efficient trading experiences for
its clients.
What is the final step in the trading procedure followed by BrightFuture Traders in the stock
exchange?
(A) Placing orders through the trading platform
(B) Routing orders to the stock exchange
(C) Matching buy and sell orders
(D) Settling transactions through depository services

9. Assertion (A): Sales promotion techniques are intended for long-term brand building.
Reason (R): Sales promotions provide short-term incentives to encourage immediate purchases.
Choose the correct option:
(A) Both A and R are true, and R is the correct explanation of A.
(B) A is false, but R is true.
(C) Both A and R are true, but R is not the correct explanation of A.
(D) Both A and R are false.

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Page 4 Sample Paper 11 CBSE 12th Business Studies

10. Rohit, a production manager, notices that the actual output is lower than the planned output.
He investigates the reasons and implements measures to improve productivity, such as employee
training and process optimization. Which function of management is Rohit performing to
address the issue?
(A) Organizing (B) Controlling
(C) Staffing (D) Planning

11. Read the following statements carefully:

Statement I: Scientific management aims at improving efficiency through scientific analysis of
work.
Statement II: Mental revolution involves a complete transformation in the outlook of both
management and workers.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Economic reforms in India were introduced in 1991 to liberalize the economy.
Statement II: Privatization involves transfer of ownership from private to public sector.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in developing a budget:

1. Review past budgets
2. Estimate future financial needs
3. Allocate resources
4. Monitor actual performance
Which of the following is the correct sequence?
(A) 1, 2, 3, 4 (B) 2, 1, 3, 4
(C) 3, 2, 1, 4 (D) 1, 3, 2, 4

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Page 5 Sample Paper 11

14. Match the list I with list II and select correct option.
List I List II
a. Formal Organization iii Grouping of related activities
b. Informal Organization iv Transfer of authority
c. Department-alization ii Arises spontaneously among members
d. Delegation i Deliberate creation
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-iv, c-ii, d-i
(C) a-iv, b-iii, c-i, d-ii (D) a-ii, b-iv, c-i, d-iii

15. Regarding selection methods, which of the following statements is/are correct?
1. Structured interviews provide a consistent basis for evaluating all candidates.
2. Work samples are used to assess practical job-related skills.
3. Reference checks are unnecessary if interviews are conducted.
(A) Statement 1 is not correct. (B) Statement 2 is not correct.
(C) Statement 3 is not correct. (D) All statements are correct.

16. Identify the right of consumers being promoted in the given picture.

(A) Right to be heard (B) Right to seek redressal

(C) Right to be informed (D) Right to consumer education
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Page 6 Sample Paper 11 CBSE 12th Business Studies

17. Which statement correctly describes the relationship between planning and controlling?
(A) Planning and controlling are independent functions with no relation.
(B) Controlling precedes planning in the management process.
(C) Planning sets the standards that controlling measures against.
(D) Controlling eliminates the need for future planning.

18. Which of the following statements about financial planning is correct?

(A) Financial planning is only concerned with short-term financial needs.
(B) Financial planning helps in forecasting future financial requirements.
(C) Financial planning eliminates all financial risks.
(D) Financial planning is not essential for small businesses.

19. Which of the following statements is NOT correct?

(A) Preferred shares generally do not have voting rights.
(B) All stocks pay dividends regularly.
(C) Bonds are considered fixed-income securities.
(D) The secondary market provides liquidity to investors.

20. Which of the following statements is NOT correct?

(A) The product life cycle has four stages: introduction, growth, maturity, and decline.
(B) During the growth stage, competition decreases as the market expands.
(C) In the maturity stage, the market becomes saturated, and sales growth slows down.
(D) The decline stage sees a drop in sales due to market saturation or new technologies.

21. Distinguish between fixed capital and working capital.

22. Over the years, Brook Bond Taj Mahal tea has been a choice of millions of customers. The
company uses the slogan ‘Waah Taj’ on its label. Their price range, quality and taste are
different and unique from their competitors. What are the advantages of labelling a product
highlighted in this case?

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Page 7 Sample Paper 11

23. Explain any three factors affecting capital budgeting decisions.

O
Name the process which helps in estimating the future finance requirements of an organisation.
Also, give four importance of that process.

24. “Expenses on training is an investment and not a wastage.” Clarify. Also give any two advantages
of training for the organisation.


O
A car manufacturing company sets a goal that in future they will expand their production by
15%. After measuring the performance, they noticed that the production has declined by 10%
and the raw material is wasted by the production department.
Can you find out, to which concept of controlling does it relate? Also explain it.

25. Describe briefly multi-dimensional function of management.

26. JP Bajaj Institute is a reputed B-school of Pune. It is offering lots of management degree
programmes in the fields of finance, marketing, human resource, rural development, hospitality
and information technology. The institute advertises that it has a 100% placement records, with
many of its students being placed in top MNCs across the globe.
The highest salary package to a student of the institute was ` 13.5 lakh per annum. The
advertisement also shows the campus to be well infrastructured.
Influenced by this advertisement, hundred of students take admission in this institute. On
taking admissions, the students learn that the campus shown in the advertisements was not
the one that they were studying in and also that the institute is running only diploma and
certificate courses, as it is not recognised by AICTE and therefore, cannot issue degrees. The
placement statistics were also misleading.
What steps should be taken by the students against these frauds?

27. Explain any four features of management.

O
Give any two positive and any two negative effects of the following principles of management
(i) Equity (ii) Stability of personnel

28. The organic food market in India is growing at 25-30 percent, which reflects a clear shift in
consumer tastes and preferences. The current growth in organic food market is driven by
multiplicity of factors like rising health consciousness, changing lifestyles, increase in disposable
income and growing availability of organic food products in shopping malls, retail outlets and
online.
Identify any two features of business environment being referred to here. Also, explain them.

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Page 8 Sample Paper 11 CBSE 12th Business Studies

29. Give the various sources of recruitment and differentiate between the two internal sources.


O
Roza and Zara are working in different departments, but are very close friends. During lunch
time, Roza informs Zara that due to the impact of COVID-19 on business organisations, many
people have lost their jobs.
Identify the type of communication highlighted in the above said case. Also, state any two
advantages and one disadvantage of this type of communication.

30. Tavleen has been running a successful business of manufacturing traditional Indian wear for
women including sarees and lehengas. Her friend Zaheer, who provides web designing solutions
to his clients, suggests him to explore the option of selling his products online.
Tavleen agrees to his suggestion and decides to venture into online business, keeping in view the
various e-commerce regulations in order to avoid imposition of any penalty. In order to facilitate
sale of products, he offers multiple payment options such as cash on delivery, net banking, etc.
(i) Identify one importance of planning in the given case.
(ii) Also, mention any other three points of importance of planning.

31. Timely Watches Limited is a manufacturer of wrist watches and the company is opting a good
control system in order to achieve the targets on time. In context of this, give some points of
importance of controlling.

32. Name the decision, a financial manager takes keeping in view the overall objective of maximising
shareholders’ wealth. Also, explain any five factors affecting the decision.

33. Madhav Bansal started ‘Anti Cure’ a company for providing cyber security solutions to
businesses. It’s objective is to prevent, detect and respond to cyber attacks and protect critical
data. He was a hard working software engineer and an expert in cyber security. His business
. started growing and he was offered a big project by the Ministry of Defence. While working
on the project, he found that the volume of work made it impractical for him to handle all the
work by himself. He decided to expand the team.
For this purpose, he appointed Dhruv and Pranav through campus placement. He found the
new employees capable, enthusiastic and trustworthy. He was thus, able to focus on objectives
and with the help of Dhruv and Pranav, project was completed on time.
Madhav also extended his areas of operations, and both the new employees also got opportunities
to develop and exercise initiative.
(i) Identify and explain the concept in the given case which helped Madhav to focus on
objectives.
(ii) Also, state any five points of importance of the concept identified in point above.


O
“Though planning is an important tool of management, yet it is not a remedy for all types
of problems.” In the light of this statement, mention any three internal limitations and three
external limitations of planning.

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34. Samir Gupta started a telecommunication company, ‘Donira Ltd.’ to manufacture economical
mobile phones for the Indian rural market with 15 employees. The company did very well
in its initial years. As the product was good and marketed well, the demand of its products
went up. To increase production the company decided to recruit additional employees. Samir
Gupta, who was earlier taking all decisions for the company had to selectively disperse the
authority. He believed that subordinates are competent, capable and resourceful and can assume
responsibility for effective implementation of their decisions. This paid off and the company was
not only able to increase its production but also expanded its product range.
(a) Identify the concept used by Samir Gupta through which he was able to steer his company
to greater heights.
(b) Also explain any three points of importance of this concept.

******

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Page 1 Sample Paper 12

Sample Paper 12
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. EcoWave Technologies Pvt. Ltd., led by CEO Ms. Riya Gupta, is an innovative company
specializing in renewable energy solutions. Recognizing the urgent need for sustainable energy,
Ms. Gupta emphasized the nature and significance of management to drive the company’s
mission. She set clear objectives: developing advanced solar panels, increasing market penetration
by 25%, and enhancing employee engagement.
At the top level of management, Ms. Gupta focused on strategic planning and aligning the
company’s vision with global sustainability goals. Middle-level managers translated these
strategies into actionable plans, coordinating between departments such as research and
development, marketing, and operations. They efficiently allocated resources and monitored
project progress to ensure targets were met. Lower-level managers supervised daily tasks,
ensuring that production processes were optimized and quality standards maintained.
EcoWave prioritized effectiveness by achieving its growth targets and efficiency by maximizing
resource utilization. Management was treated as both a science through structured processes
and an art by fostering creativity and innovation. Coordination was maintained through
regular inter-departmental meetings and integrated management information systems,
ensuring seamless workflow and alignment with organizational objectives. This comprehensive
management approach led to successful product launches, increased market share, and high
employee morale, establishing EcoWave as a leader in the renewable energy sector.
Which function of management is demonstrated by Ms. Gupta setting clear objectives for
EcoWave Technologies Pvt. Ltd.?
(A) Organizing (B) Planning
(C) Leading (D) Controlling

2. GlobalTrade Ltd., a multinational trading company, adhered to Fayol’s unity of command

principle by ensuring that each employee reports to only one supervisor. This structure
eliminated conflicting instructions and confusion among staff, fostering clear communication
and efficient workflow. As a result, GlobalTrade experienced smoother operations and increased
employee satisfaction.


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Page 2 Sample Paper 12 CBSE 12th Business Studies

Which principle is demonstrated by GlobalTrade Ltd. ensuring each employee reports to only
one supervisor?
(A) Division of Work (B) Unity of Command
(C) Scalar Chain (D) Initiative

3. Which of the following is NOT a dimension of the business environment?

(A) Economic (B) Social
(C) Emotional (D) Technological

4. BrightFuture Education Pvt. Ltd. developed a single use plan to organize its annual educational
fair. This plan was specifically designed for the event, outlining tasks, schedules, and resource
allocation. Once the fair concluded successfully, the plan was archived and not reused for future
events, highlighting the nature of single use plans being tailored for one-time projects.
What type of plan did BrightFuture Education Pvt. Ltd. use to organize its annual educational
fair?
(A) Standing Plan (B) Single Use Plan
(C) Policy (D) Procedure

5. Which term refers to the systematic process of identifying and grouping activities to achieve
objectives?
(A) Planning (B) Organizing
(C) Leading (D) Controlling

6. GlobalFinance Ltd. employs both internal and external recruitment strategies. Internal
recruitment through promotions and transfers boosts employee morale and reduces training
costs, as existing employees are already familiar with the company culture. However, it may
limit fresh ideas and perspectives. External recruitment brings in new talent and innovative
ideas, enhancing the company’s competitive edge, but it can be costly and time-consuming.
GlobalFinance balances both approaches to optimize its workforce and maintain a dynamic
organizational environment.
What is a merit of external recruitment that GlobalFinance Ltd. benefits from?
(A) Reduces training costs
(B) Boosts employee morale
(C) Brings in new talent and innovative ideas
(D) Limits fresh perspectives

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Page 3 Sample Paper 12

7. Assertion (A): Laissez-faire leadership provides employees with high autonomy.

Reason (R): Laissez-faire leaders closely supervise and control employee activities.-
Options:
(A) Both A and R are true and R explains A
(B) Both A and R are true but R does not explain A
(C) A is true but R is false
(D) Both A and R are false

8. SolarTech Industries, a renewable energy company, recognizes the importance of controlling in

maintaining project timelines and budget constraints. By regularly reviewing project progress
and financial reports, SolarTech can identify potential delays and cost overruns early. This
allows the management to take timely corrective measures, such as reallocating resources or
adjusting project scopes, thereby ensuring that projects are completed successfully without
exceeding budgets.
How does SolarTech Industries demonstrate the importance of controlling in its projects?
(A) By focusing only on project initiation
(B) By regularly reviewing progress and financial reports
(C) By avoiding budget constraints
(D) By expanding project scopes without review

9. Assertion (A): Investment decisions involve the allocation of funds to long-term assets.
Reason (R): Financing decisions determine the company’s dividend policy.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A
(B) Both A and R are true, but R is not the correct explanation of A
(C) A is true, but R is false
(D) A is false, but R is true

10. DEF Technologies, a startup in artificial intelligence, decides to issue stock options to its
employees as part of their compensation package. The aim is to attract top talent and motivate
employees to work towards increasing the company’s value.
What is the main advantage of offering stock options to employees?
(A) Guaranteed salaries (B) Encourages employee retention
(C) Reduces operational costs (D) Limits employee equity

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Page 4 Sample Paper 12 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: Pricing decisions are influenced by factors like cost, demand, and competition.
Statement II: Skimming price strategy involves setting a low initial price to penetrate the
market quickly.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Effectiveness in management is concerned with doing the right task, completing
activities, and achieving goals.
Statement II: Efficiency in management is about completing tasks correctly with minimum cost
and resources.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is false, Statement II is true.
(D) Statement II is false, Statement I is true.

13. Identify the correct sequence of Fayol’s principles of management:

1. Division of Work.
2. Unity of Command.
3. Authority and Responsibility.
4. Esprit de Corps.
(A) 1, 2, 3, 4 (B) 2, 1, 4, 3
(C) 1, 3, 2, 4 (D) 4, 3, 2, 1

14. Match the list I with list II and select correct option.
List I List II
a. Liberalization i Ownership transfer to private sector
b. Privatization ii Reduced government regulations
c. Globalization iii Selling public sector units
d. Disinvestment iv Removal of trade barriers

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Page 5 Sample Paper 12

Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-ii, b-i, c-iv, d-iii
(C) a-iv, b-iii, c-ii, d-i (D) a-iii, b-i, c-iv, d-ii

15. Which of the following correctly outlines the limitations of planning?

1. Planning can lead to rigidity in decision-making.
2. Planning eliminates all risks.
3. Planning requires significant time and effort.
4. Planning reduces uncertainty.
Which of the following is/are correct?
(A) Only 1 and 3
(B) Only 2
(C) 1 and 4
(D) All of the above

16. Consider the following Image :

People’s behaviour is affected by rumours and sometimes may hamper work environment.
Name the communication used by the managers to transmit information so as to know the
reactions of his/her subordinates.
(A) Informal communication
(B) Formal communication
(C) Vertical communication
(D) Horizontal communication

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Page 6 Sample Paper 12 CBSE 12th Business Studies

17. Which statement correctly explains the purpose of induction training?

(A) Induction training is for existing employees to learn new skills.
(B) Induction training is the initial orientation provided to new employees about the
organization.
(C) Induction training focuses solely on technical skills.
(D) Induction training is optional for new hires.

18. Which of the following statements about authoritative leadership is correct?

(A) Authoritative leaders encourage team participation in decision-making.
(B) Authoritative leadership involves minimal supervision.
(C) Authoritative leaders make decisions independently and expect compliance.
(D) Authoritative leadership is synonymous with transformational leadership.

19. Which of the following statements is NOT correct about the relationship between planning and
controlling?
(A) Planning sets the standards for controlling.
(B) Controlling provides feedback to improve planning.
(C) Planning and controlling are independent functions.
(D) Controlling ensures that plans are implemented effectively.

20. Which of the following statements about financial planning is not correct?
(A) Financial planning helps in forecasting future financial needs.
(B) Financial planning ensures that the organization has adequate funds for operations.
(C) Financial planning eliminates all financial risks.
(D) Financial planning involves budgeting and resource allocation.

21. Mr. Pachouri is the General Manager of Fast Life, a company manufacturing and selling
speakers and amplifiers. He manages 15 Departmental Managers who further handles around
200 employees each. Mr. Pachouri allows all his managers to take their operative decisions
but in some cases like if there is a conflict between two departmental managers or there is an
accident, then Mr. Pachouri immediately takes control of the situation to ensure prompt and
coordinated effort.
(a) At which level of management is Mr. Pachouri working?
(b) State any two functions he would perform at that level.

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Page 7 Sample Paper 12

22. What is meant by the Functional Organisation Structure? Discuss its suitability.


O
“Authority can be delegated but accountability cannot.” Explain the statement.

23. Who can file a complaint in the appropriate consumer forum under the Consumer Protection
Act, 2019?

24. Explain how management by exception helps in controlling process.

O
Explain the importance of interview in selection process.

25. How is training in an organisation beneficial ‘for employees’ ? State by giving any four reasons.

26. Principles of Taylor and Fayol are mutually complementary. One believed that the management
should share the gains with the workers, while the other suggested that employees compensation
should depend on the earning capacity of the company and should give them a reasonable
standard of living. Identify and explain the principles of Fayol and Taylor referred to in the
above para.

27. Explain how principles of management:

(a) provides useful insight into reality
(b) helps in thoughtful decision-making

28. Goal Group of companies has three divisions namely Shoes, Garments and Home Decor items
each headed by their Divisional Managers respectively. It has the plans to enter a new venture
that is related to the Hospitality Industry. The company has done the SWOT Analysis and
found that the business environment seems favourable for this industry as the government is
offering huge incentives for setting up of hotels in the remote hilly areas to promote tourism
there. The Chief Executive also knew that the company is having sufficient funds to finance
the project; they just need to add one more division, Hospitality, with a new set of employees,
to their existing structure to start the venture.
(a) What does the Chief Executive’s decision tell about the importance of Organising?
(b) Also, discuss three others points highlighting the importance of Organising.

29. Name and discuss any four techniques of Scientific Management through which the best practices
can be kept and further refined to develop a standard that is to be applied throughout the
organisation.


O
What is meant by coordination? Why is coordination important in an organisation?

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Page 8 Sample Paper 12 CBSE 12th Business Studies

30. Dera Electrical Private Limited is planning to raise funds for a new project. It requires `60,00,000
for installing the plant. It has studied the market and found that the stock market conditions
are favourable and the economy is in boom. Hence, there seems no issue in raising funds either
by equity or debt. The present rate of interest prevalent in the market is 12% p.a. and the
rate of tax is 20%. The company is earning `8,00,000 before any interest or tax. The Finance
Manager suggested that they can raise 50% amount through debt and other 50% by equity
while the Assistant Finance Manager is of the view that the ratio of debt and equity should
be 7:3. Who do you think is giving a better suggestion? Support your answer with proper
justification.


O
‘Shahi Milan’ is a popular online matrimonial portal. It seeks to provide personalised match
making service. The company has 80 offices in India, and is now planning to open offices in
Singapore, Dubai and Canada to cater to its customers beyond the country. The company has
decided to opt for the sources of equity capital to raise the required amount of capital.
(a) Identify and explain the type of risk which increases with the higher use of debt.
(b) Explain briefly any three factors because of which the company has decided to opt for
equity capital.

31. Samir Gupta started a telecommunication company, ‘Donira Ltd.’ to manufacture economical
mobile phones for the Indian rural market with 15 employees. The company did very well
in its initial years. As the product was good and marketed well, the demand of its products
went up. To increase production the company decided to recruit additional employees. Samir
Gupta, who was earlier taking all decisions for the company had to selectively disperse the
authority. He believed that subordinates are competent, capable and resourceful and can assume
responsibility for effective implementation of their decisions. This paid off and the company was
not only able to increase its production but also expanded its product range.
(a) Identify the concept used by Samir Gupta through which he was able to steer his company
to greater heights.
(b) Also explain any three points of importance of this concept.

32. Briefly discuss the Planning process.

O
With the help of any four points, explain the crucial role that organising plays in an enterprise.

33. Stock exchange acts as a regulator of the securities market. It creates a continuous market
where the securities are bought and sold. It gives investors the chance to disinvest and reinvest.
Through this process of disinvestment and reinvestment, savings get channelized into their
most productive investment avenues. To ensure that the investing public gets a safe and fair
deal in the market, the membership of the stock exchange is well regulated and its dealings are
well defined according to the existing legal framework. It also ensures wider share of ownership
by regulating new issues, better trading practices and taking effective steps in educating the
public about investments.

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Page 9 Sample Paper 12

Various functions performed by the Stock Exchange are discussed in the above para. Explain
any four functions of ‘stock Exchange’.

34. You have been appointed as a Brand Manager of Ford Motors. The Company is to introduce
a compact small car in the Indian Market. The name of the car is yet to be decided. You have
been asked to chair a brainstorming session. Before the suggestions come forward, you have
to briefly explain the participants as to what constitutes a good brand name with the help of
suitable examples.


O
Reshma, the Vice President (Marketing) of Well Chemicals Limited, a shampoo manufacturer,
was facing the challenges of increasing competition and decreasing demand. She told the CEO
that they are not lagging behind on the product quality rather they need to re-launch their
product in an attractive package. Most of their products share the shelf space with other
competitors and hence fail to attract the eye of the consumer due to its black and white
container. Also, the standard size of their bottle is 600 ml (without pump) which the consumers
find inconvenient to handle. Hence, they should re-launch their shampoo with two new bright
colours and pump bottles to regain their position in the market.
(a) Which level of Packaging was Reshma talking about?
(b) State two functions of packaging referred to by Reshma in the above case.
(c) State and explain the element of marketing mix that includes the decision related to
packaging.

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Page 1 Sample Paper 13

Sample Paper 13
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. FreshTaste Foods Ltd., led by CEO Ms. Alka Desai, specializes in organic food products. To
increase market penetration and brand recognition, FreshTaste developed a comprehensive
marketing strategy. The company launched a promotion campaign that included social media
advertising, influencer partnerships, and in-store sampling events to highlight the health benefits
and natural ingredients of their products.
Additionally, FreshTaste implemented a pricing strategy by offering competitive prices and
seasonal discounts to attract a broader customer base. The products were distributed through
both online platforms and retail stores to ensure wide accessibility, addressing the distribution
aspect of marketing. Customer feedback was actively sought and used to refine product offerings
and marketing approaches. This integrated marketing approach successfully increased brand
awareness, boosted sales, and established FreshTaste Foods Ltd. as a trusted name in the
organic food market.
Which marketing activity is exemplified by FreshTaste Foods Ltd.’s use of social media
advertising and influencer partnerships to highlight product benefits?
(A) Product development (B) Pricing strategy
(C) Promotion (D) Distribution

2. FreshBite Foods, a startup specializing in organic snacks, utilizes the marketing mix to
strategically position its products in the market. The company focuses on the four Ps: Product
(high-quality organic ingredients), Price (competitive pricing to attract health-conscious
consumers), Place (distribution through health stores and online platforms), and Promotion
(social media marketing and influencer partnerships). By carefully balancing these elements,
FreshBite effectively reaches its target audience and establishes a strong market presence.
Which element of the marketing mix is FreshBite Foods focusing on by using high-quality
organic ingredients?
(A) Price (B) Product
(C) Place (D) Promotion

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Page 2 Sample Paper 13 CBSE 12th Business Studies

3. Which level of management is responsible for formulating strategies and policies?

(A) Lower-level management (B) Middle-level management
(C) Top-level management (D) Operational management

4. EcoBuild Constructors implemented Fayol’s scalar chain principle by establishing a clear

hierarchical structure from top management to frontline workers. This hierarchy facilitated
effective communication and decision-making, ensuring that information flowed smoothly from
higher to lower levels and vice versa. The clear chain of command helped EcoBuild maintain
order and efficiency in its projects.
What principle is EcoBuild Constructors following by establishing a clear hierarchical structure?
(A) Division of Work (B) Scalar Chain
(C) Remuneration (D) Centralization

5. What does the economic dimension of the business environment include?

(A) Cultural norms (B) Government regulations
(C) Inflation and interest rates (D) Technological advancements

6. GlobalTrade Ltd. established standing plans such as policies and procedures to ensure consistent
operations across all its international branches. These plans include standardized processes for
customer service, quality control, and employee conduct. By having standing plans in place,
GlobalTrade ensures uniformity and efficiency in its operations, regardless of the location.
What type of plan has GlobalTrade Ltd. established by standardizing customer service and
quality control processes across branches?
(A) Single Use Plan (B) Standing Plan
(C) Budget (D) Program

7. Assertion (A): Informal organizations operate based on official rules and procedures.
Reason (R): They rely on personal relationships and social interactions among employees.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

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Page 3 Sample Paper 13

8. HealthGuard Pharmaceuticals prioritizes training and development to enhance employee skills

and organizational performance. The company offers regular training programs on the latest
pharmaceutical technologies and soft skills like leadership and communication. This investment
in employee development not only improves job performance and productivity but also increases
employee satisfaction and retention. By fostering continuous learning, HealthGuard ensures
its workforce remains competent and motivated, driving innovation and maintaining high
standards in the pharmaceutical industry.
How does HealthGuard Pharmaceuticals benefit from investing in training and development
programs?
(A) By reducing employee satisfaction
(B) By increasing employee turnover
(C) By enhancing job performance and productivity
(D) By limiting skill growth

9. Assertion (A): Herzberg’s Two-Factor Theory distinguishes between hygiene factors and
motivators.
Reason (R): Hygiene factors directly lead to job satisfaction.
Options:
(A) Both A and R are true and R explains A
(B) Both A and R are true but R does not explain A
(C) A is true but R is false
(D) Both A and R are false

10. XYZ Services introduced a new customer service protocol to enhance client satisfaction. After
six months, customer feedback showed a significant improvement in service quality, leading to
increased customer retention rates.
Which type of control did XYZ Services primarily use to achieve the improvement?
(A) Feedforward control (B) Concurrent control
(C) Feedback control (D) Financial control

11. Read the following statements carefully:

Statement I: Liquidity and profitability are two conflicting objectives in financial management.
Statement II: A firm’s capital structure does not affect its overall cost of capital.
In light of the given statements, choose the correct alternative:
(A) Both statements are true. (B) Both statements are false.
(C) Statement I is true, Statement II is false. (D) Statement II is true, Statement I is false.

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Page 4 Sample Paper 13 CBSE 12th Business Studies

12. Read the following statements carefully:

Statement I: Insider trading refers to trading based on non-public, material information.
Statement II: SEBI regulates the securities market to prevent malpractices like insider trading.
In light of the given statements, choose the correct alternative:
(A) Both statements are true. (B) Both statements are false.
(C) Statement I is true, Statement II is false. (D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in the Marketing Research Process:
(A) Data Collection - Problem Definition - Data Analysis - Report Preparation - Developing
Research Plan
(B) Problem Definition - Developing Research Plan - Data Collection - Data Analysis - Report
Preparation
(C) Developing Research Plan - Problem Definition - Data Collection - Report Preparation -
Data Analysis
(D) Data Analysis - Developing Research Plan - Problem Definition - Data Collection - Report
Preparation

14. Match the list I with list II and select correct option.
List I List II
a. Top-Level Management i Operational decisions
b. Middle-Level Management ii Execution of departmental plans
c. Lower-Level Management iii Framing policies and strategies
d. Supervisory Management iv Directly overseeing workers
Options:
(A) a-iii, b-i, c-ii, d-iv; (B) a-ii, b-iii, c-i, d-iv;
(C) a-iii, b-ii, c-iv, d-i; (D) a-i, b-iv, c-iii, d-ii

15. Which of the following is/are correct regarding the principle of Division of Work?
1. It enhances specialization and efficiency.
2. It leads to confusion about roles in the organization.
3. It is only applicable in manufacturing sectors.
4. It allows employees to develop expertise in specific tasks.
(A) Only 1 and 2 (B) Only 1 and 4
(C) Only 2 and 3 (D) All 1, 2, 3, and 4

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Page 5 Sample Paper 13

16. Consider the follwoing image.

Identify the business dimension of the business environment illustrated by the picture given
above in which National Green Tribunal banned ten year old diesel cars to protect environment.
(A) Economic Environment (B) Legal Environment
(C) Technological Environment (D) Political Environment

17. Which of the following statements is correct regarding the role of procedures in planning?
(A) Procedures are used to develop budgets.
(B) Procedures outline the steps for carrying out specific tasks.
(C) Procedures are guidelines for strategic planning.
(D) Procedures provide long-term objectives.

18. Which of the following statements is correct regarding functional and divisional structures?
(A) Functional structures group employees based on geographic regions.
(B) Divisional structures group employees based on specialized functions like marketing and
finance.
(C) Functional structures are suitable for organizations with a narrow product line.
(D) Divisional structures are more suitable for diversified organizations with multiple product
lines.

19. Which of the following is not a step in the staffing process?

(A) Recruitment
(B) Selection
(C) Marketing
(D) Training

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Page 6 Sample Paper 13 CBSE 12th Business Studies

20. Which of the following statements about authoritative leadership is NOT correct?
(A) Authoritative leaders make decisions independently.
(B) Authoritative leadership encourages high levels of employee participation.
(C) Authoritative leaders provide clear direction and expectations.
(D) Authoritative leadership can be effective in crisis situations.

21. What is meant by business environment? Explain ‘dynamic nature’ and ‘uncertainty’ as features
of business environment.

22. State any six factors influencing the recruitment, selection and training of employees.


O
Pranav and Ramu are working in same organisation but in different departments. One day,
at lunch time, Pranav came to Ramu and informed him that many people are going to be
retrenched soon from the organisation due to computerisation.
(i) Which type of communication is this?
(ii) State any two limitations of this type of communication.

23. Explain how controlling helps in

(i) Making efficient use of resources
(ii) Improving employee’s motivation

24. What can manufacturers, consumers and government do to remove the evils of advertising?


O
Mr Khanna purchased a book from a bookseller and took the cash memo of ` 650 which he paid
for the book. Later, he found that the actual price of the book is ` 590, but the bookseller had
put a sticker of ` 650 on the original price. Can Mr Khanna recover the extra money that he
paid? What other options are available to him against bookseller?

25. Polaris Solutions Private Limited is a newly established IT company. Company is not having
the adequate finance to recruit the persons from outside. In this situation, which source of
recruitment would be beneficial and why?

26. Rudra Steels Private Limited manufacturing steel at its plant in India. It is enjoying a buoyant
demand for its products as economic growth is about 8% to 9% and the demand for steel is
growing. Therefore, it is planning to set-up a new steel plant to take benefit of such trends in
demand. It is estimated that such an expansion will require about ` 6,000 crore to set-up and
about ` 800 crore of working capital. As the finance manager of the company, state any three
factors that would be considered while determining the capital structure for the new venture.

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Page 7 Sample Paper 13

27. Mr. Aryan is a teacher, having a reputed job with good earnings. He wants to trade on a stock
exchange. Enumerate the first four steps involved for purchase and sale of securities in a stock
exchange.


O
Define investment decisions. Why these decisions are crucial for a business?

28. Adesh is a manager overburdened with work. Recently, the other managers advised him to
share his authority with his subordinates, using the process of delegation. They explained
the concept of delegation to him and its essential elements also. Discuss briefly the essential
elements of delegation.


O
Infoway Software Solutions is planning to set-up a new unit in Pune with a capacity for 900
professionals. The company currently has 1,300 professionals across its centres in Mumbai, and
the new unit is expected to come up in the next six months. The company’s chairman and CEO
said that the company was well on the track to meet its earlier announcement to increase the
head count by 1,600 to 2,000 professionals in the current year. Which function of management
is present here? Also, enlist its two features.

29. NODIA Solution Private Limited is in the business of software solutions. It has a share capital
of ` 70 lacs at the face value of ` 100 each. Company is considering a major expansion of
its production facilities and wants to raise ` 50 lacs. The chief financial officer (CFO) the
company has recommended that the company can raise funds of the same amount by issuing
7% debentures. Given that earning per share of the company after expansion is ` 35 and tax
rate is 30%, did CFO give a justified recommendation? Show the working.

30. Sigma Construction Private Limited is constantly engaged in conducting financial literacy
programmes for the underprivileged sections of the society. What type of objective is highlighted
here?
Explain along with the ways of doing so.


O
Tanmay has just joined a company as its CEO. Advise him, regarding the functions to be
performed by him.

31. Differentiate between primary and secondary market on any four basis.


O
In the backdrop of growing crimes against women, Gaonkar has just floated a private company by
the name of Suraksha’ to provide female bodyguards for women, while travelling or commuting
between work and home. Being new to business, he appointed Mr. Thukral as his finance
manager and asked him to assess the finance needs of his company.


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Page 8 Sample Paper 13 CBSE 12th Business Studies

(i) In which two categories, the finance needs of a firm can be categorised into?
(ii) Explain any five factors that Mr Thukral have to consider while determining the working
capital requirement for the company.

32. Mr. Romesh had started a business of supplying auto components required in the manufacturing
of electrical vehicles. He had started his business five years back and with growing demand,
he had opened two more offices. One in Pune and the other in Jaipur, in addition to the head
office in Delhi. He has to travel a lot, from one city to another, related to his business. He tries
to look after all the aspects of the business. He also takes all the major decisions himself.
For the last couple of months, he is facing a number of problems. He is not able to meet his
orders on time, raw material supply is being affected and productivity is falling. His son Daksh,
a management student advises him to change his style of functioning and delegate his authority.
(i) What does delegation of authority means?
(ii) Delegation of authority is important for effective organisation. How? State by giving three
reasons.
(iii) Quoting lines from the para, identify and discuss the leadership style of Mr. Romesh.

33. Heatax Electricals Private Limited was manufacturing water heaters. In the first year of its
operations, the revenue earned by the company was just sufficient to meet its costs. To increase
the revenue, the company analysed the reasons of less revenues. After analysis, the company
decided
(i) to reduce the labour cost by shifting the manufacturing unit to a backward area where
labour was available at a very low rate.
(ii) to start manufacturing solar water heaters and reduce the production of electric water
heaters slowly.
This will not only help in covering the risks, but also help in meeting other objectives too.
Identify and explain the objectives of management discussed above.


O
Manglam Constructions Private Limited a company engaged in infrastructural sector. The
management of the company holds regular meetings to ensure that people in department are
not only aware of changes but also adapt to them. The CEO of the company motivates and
leads the team keeping in mind the organisation as well as individual goals. He, along with
other top level managers, have decided to set up a plantation drive on the coming weekend.
As a result of training modules of company, cost has been reduced and the productivity of
employees is improved. Therefore, the company is able to achieve its target on time.
The given para highlights one of the aspects of management. Identify it and explain the reasons
for it by quoting the lines.

34. Raman, Joginder, John, Iqbal and Shreya are friends. They are operating different business.
Each one has his/her own concept regarding operating their business.
Raman believes in producing products at a large scale. Thereby decreasing the average cost of
the products and selling its at a reasonable price.

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Page 9 Sample Paper 13

Joginder focuses on providing best quality products because he believes that a customer always
wishes to buy a good quality product. The price of the product is secondary, John is of the
belief that most important aspect of business is sales and so he undertakes aggressive selling &
promotional effort.
Iqbal believes that his firm can achieve its goals only by identifying the needs of the customer
& satisfying them better than the competitors.
Shreya on the other hand feels that her firm has a responsibility towards the society as well.
So she provides customer satisfaction along with using techniques which are environmental
friendly.
(a) What are the Marketing concepts followed by each of them?
(b) Raman’s concept is successful for him because he is into manufacturing and selling iodised
salt under the brand ‘Healthy salt’. This product has a ready market and vast consumer
base, also the product is standardised so he can focus on production at a large to cut down
the cost per unit. Write any business which can be successfully run by the others using
their concepts.
Joginder:
John:
Iqbal:
Shreya:

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Page 1 Sample Paper 14

Sample Paper 14
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. FastTrack Logistics, managed by CEO Ms. Sneha Mehta, operates a nationwide delivery
network. To maintain high service quality and timely deliveries, FastTrack implemented a
robust controlling system. The company set specific performance standards for delivery times
and accuracy rates. Utilizing advanced GPS tracking and automated reporting tools, FastTrack
continuously measured actual performance against these standards.
Monthly performance reviews were conducted to compare performance with the set benchmarks.
When discrepancies such as delayed deliveries or incorrect shipments were identified, FastTrack
performed root-cause analyses to determine the underlying issues. Corrective actions included
optimizing delivery routes using specialized software and providing additional training to
drivers to enhance efficiency.
This systematic approach to controlling enabled FastTrack Logistics to maintain high service
quality, reduce operational inefficiencies, and build strong customer trust. By effectively taking
corrective action, the company ensured continuous improvement and sustained operational
excellence.
What step in the controlling process is illustrated by FastTrack Logistics implementing route
optimization after identifying delivery delays?
(A) Setting performance standards (B) Measuring actual performance
(C) Comparing performance with standards (D) Taking corrective action

2. SolarEnergy Corp., a leader in solar technology, emphasizes financial planning to ensure its
projects are well-funded and sustainable. The finance team develops comprehensive financial
plans that forecast future revenues, expenses, and capital needs. The objectives of financial
planning include ensuring adequate funding for research and development, managing cash flow,
and preparing for potential financial challenges. This proactive approach allows SolarEnergy
to allocate resources effectively, support innovation, and maintain financial stability, which is
crucial for long-term success in the competitive renewable energy market.
What is one objective of financial planning at SolarEnergy Corp.?


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Page 2 Sample Paper 14 CBSE 12th Business Studies

(A) Reducing product quality (B) Ensuring adequate funding for R&D
(C) Limiting market expansion (D) Decreasing employee benefits

3. What does ‘investment horizon’ refer to?

(A) The time frame for holding an investment
(B) The total amount invested
(C) The risk level associated with an investment
(D) The market price of an asset

4. SmartHome Appliances, led by CEO Mr. Rohan Desai, places significant emphasis on branding,
labeling, and packaging as part of its product strategy. The company creates a distinctive
brand identity through a memorable logo and consistent color scheme. Each product is labeled
with clear and informative information, including usage instructions and safety warnings.
Additionally, SmartHome uses innovative packaging designs that not only protect the appliances
during transit but also appeal aesthetically to consumers, enhancing the overall product appeal
and brand recognition.
What aspect of SmartHome Appliances’ strategy involves creating a distinctive brand identity
through a memorable logo and consistent color scheme?
(A) Pricing (B) Branding
(C) Packaging (D) Labeling

5. Which of the following is NOT a feature of coordination?

(A) Integrates group efforts (B) Continuous process
(C) Optional function (D) Ensures unity of action

6. StarRetail Pvt. Ltd., a retail chain, applied Fayol’s remuneration principle by ensuring fair and
equitable compensation for all employees. By offering competitive salaries and performance-
based incentives, StarRetail motivated its staff, reduced turnover rates, and fostered a positive
work environment. This approach not only attracted talented individuals but also enhanced
overall employee satisfaction and productivity.
Which Fayol’s principle is StarRetail Pvt. Ltd. applying by offering competitive salaries and
performance-based incentives?
(A) Remuneration (B) Unity of Command
(C) Centralization (D) Initiative

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Page 3 Sample Paper 14

7. Assertion (A): Demonetization helped to promote digital transactions in India.

Reason (R): Demonetization created a cash shortage, pushing people to adopt digital payment
methods.
(A) Both assertion and reason are true, and reason is the correct explanation of the assertion.
(B) Both assertion and reason are true, but reason is not the correct explanation of the
assertion.
(C) Assertion is true, but reason is false.
(D) Both assertion and reason are false.

8. SolarEnergy Corp., led by CEO Mr. Vikram Singh, set clear objectives to expand its renewable
energy projects by 40% within three years. These objectives guide the company’s strategic
initiatives, resource allocation, and performance measurement. By defining specific, measurable
goals, SolarEnergy ensures focused efforts towards achieving growth and sustainability in the
renewable energy sector.
What type of plan is represented by SolarEnergy Corp.’s goal to expand renewable energy
projects by 40% within three years?
(A) Policy (B) Objective
(C) Procedure (D) Method

9. Assertion (A): A divisional structure is more suitable for large organizations with diverse
product lines.
Reason (R): It allows each division to operate independently, focusing on specific products or
markets.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

10. XYZ Corp decided to implement a job rotation program for its marketing team. Employees are
rotated through different roles such as digital marketing, content creation, and market research
every six months. The aim is to develop versatile employees and reduce monotony.Which of the
following benefits is XYZ Corp aiming to achieve through job rotation?
1. Enhancing employee versatility
2. Increasing employee specialization in one area
3. Reducing employee turnover
4. Broadening employees’ understanding of different roles

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Page 4 Sample Paper 14 CBSE 12th Business Studies

(A) 1 and 3 only (B) 2 and 4 only

(C) 1, 3 and 4 (D) All statements are correct

11. Read the following statements carefully:

Statement I: Maslow’s hierarchy of needs theory is a motivation theory that arranges human
needs in a hierarchy.
Statement II: According to Maslow, self-actualization is the lowest level of need.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Management audit is a technique to keep a check on the performance of the entire
management system.
Statement II: Return on Investment (ROI) is not a control technique used in organizations.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the following steps in the capital budgeting process in the correct order:
1. Identifying investment opportunities
2. Estimating cash flows
3. Evaluating investment proposals
4. Implementing and monitoring the project
Which of the following sequences is correct?
(A) 1, 3, 2, 4
(B) 1, 2, 3, 4
(C) 2, 1, 3, 4
(D) 1, 2, 4, 3

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Page 5 Sample Paper 14

14. Match the list I with list II and select correct option.
List I List II
a. Product Mix i Variety of products offered
b. Price Mix ii Setting product pricing strategies
c. Place Mix iii Distribution channels
d. Promotion Mix iv Advertising, sales promotion
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-ii, b-iii, c-i, d-iv
(C) a-i, b-iv, c-ii, d-iii (D) a-iv, b-ii, c-i, d-iii

15. Regarding ‘Factors Affecting Pricing Decisions,’ evaluate the following statements:
1. Cost of production is a primary factor influencing price.
2. Consumer demand and price elasticity affect pricing strategies.
3. Legal and regulatory factors can limit pricing options.
4. Internal factors like marketing objectives do not impact pricing.
Which of the above statements is/are correct?
(A) Only 1, 2, and 3
(B) Only 1, 3, and 4
(C) Only 2, 3, and 4
(D) All 1, 2, 3, and 4

16. Identify the characteristic of profession being highlighted in the picture given below.

(A) Restricted entry

(B) Professional association
(C) Ethical code of conduct
(D) Well defined body of knowledge

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Page 6 Sample Paper 14 CBSE 12th Business Studies

17. Which of the following statements is correct regarding Taylor’s Scientific Management?
(A) It focuses on intuitive decision-making.
(B) It emphasizes maximizing worker productivity through scientific analysis.
(C) It ignores worker welfare and satisfaction.
(D) It is solely concerned with administrative tasks.

18. Which of the following statements is correct about the social dimension of the Business
Environment?
(A) It only concerns population growth rates.
(B) It includes societal values, cultural norms, and demographics.
(C) It is primarily focused on government policies.
(D) It deals exclusively with technological trends.

19. Which of the following statements is not correct about the importance of planning?
(A) Planning enhances operational efficiency.
(B) Planning provides a sense of direction.
(C) Planning guarantees immediate results.
(D) Planning reduces uncertainties.

20. Which of the following statements is NOT correct regarding functional and divisional structures?
(A) Functional structures group employees based on specialized functions like marketing and
finance.
(B) Divisional structures are more suitable for organizations with a narrow product line.
(C) Functional structures promote expertise within departments.
(D) Divisional structures enhance accountability for specific products or regions.

21. State any three protective functions of Securities and Exchange Board of India.

22. In an organisation the production department blames the marketing department and
the marketing department blames production department, for the non-achievement of the
organisational goals. They are neither ready to listen to each other nor bring any changes in
their workings to help each other.

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Page 7 Sample Paper 14

This force is a vital element of one principle of management given by Fayol and one principle
of Scientific Management given by Taylor. Identify these principles and explain them.

23. Narula Software Limited assured their employees that in spite of recession, no worker will be
retrenched from the job.
(a) Name and explain the type of incentive offered to the employees.
(b) Explain one more incentive of the same category.

24. Dee Industries is facing a lot of opposition as it pays less salary to female workers as compared
to male workers for equal work. Which dimension of business environment is being referred to?
Discuss.


O
Name and explain the technique of Taylor which is the strongest motivator for a worker to
reach standard performance.

25. Capital Structure decisions are essentially the optimisation of the risk return relationship.
Discuss. Explain any three factors affecting the choice of capital structure.


O
Discuss any four factors affecting working capital requirements of a business firm.

26. ‘How well one delegates, determines how well he manages.’ In the light of this statement,
explain any three points of importance of delegation.

27. Explain any four points of importance of the controlling function of management.

28. A company needed to appoint an accountant. For this, it had received 40 applications. Out of
these, 15 were not eligible as per the requirements, so the company rejected their applications
outright. To ensure that everybody gets a chance to prove their worth, they conducted an
intelligence test and trade test. It was followed by a round of face to face conversation between
the shortlisted candidate and the Finance Manager.
(a) Identify the process being followed above.
(b) State by quoting the lines, the stages of the above process followed.


O
Jaipur Handicrafts has been doing good business for last five years. Sameer, the manager
reported a decline in the number of orders received in the year. He ordered for keeping a track
on the progress of all activities in the organisation to bring to light the deviations and to
initiate the corrective action required.
Explain the steps involved in the function Sameer is performing here.

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Page 8 Sample Paper 14 CBSE 12th Business Studies

29. Mr. MK Mishra is working as a Human Resource Consultant in a firm manufacturing garments,
which is facing a problem of high employee turnover. The Managing Director has invited
suggestions from his for retaining the talented employees. Mr. MK Mishra recommends that
the good employees be rewarded in a way that it creates a feeling of ownership amongst the
employees and at the same time makes them contribute towards the growth of the organization.
(a) Identify the incentive which has been suggested by MK Mishra to the Managing Director
of the Company.
(b) Also, explain any two other incentives of the same type.

30. The Consumer Protection Act 2019 seeks to protect and promote the interest of the consumers.
The Act provides for six rights to the consumers with a view to empower them. But, consumer
protection can be achieved only when the consumers understand and fulfil their responsibilities.
State such responsibilities of a consumer.

31. Explain the following principles of scientific management:

(a) Harmony, not discord.
(b) Science, not rule of thumb.
(c) Development of each and every person to his or her greatest efficiency and prosperity.

32. A company earned a profit of 20 lacs during the year end. It had some expansion plans in the
near future, therefore, it decided to retain the profits. At the same time, it did not want to
disappoint its investors. It, therefore, decided to capitalise its reserves and issue bonus shares
to them.
(a) Which financial decision is being referred to?
(b) Discuss the factors affecting it.


O
Capital market has an institutional arrangement to facilitate buying and selling of existing
securities. It helps existing investors to disinvest and fresh investors to enter in the market.
Explain the functions of such institutional arrangement.

33. Plasto Goods Private Limited manufactures plastic goods. It has plans to enter the international
market. For this it has hired the services of professionals who are going to help them in planning
by collecting facts and figures, conducting surveys, etc. The professionals studied the demand
pattern of people in some countries, their occupations and the literacy rate. They also tried to
study the Export Import (EXIM) Policy of not only our country but the other countries so as
to estimate its possible impact on the company’s future plans. A lot of money was spent on all
this and the management feared that the costs may exceed the gains. Finally, a comprehensive
plan stating the objectives, budget involved, policies and procedures to be followed was laid
down.
(a) Which step of planning has been performed by the professionals? Explain it and give next
two steps of planning.
(b) Which limitation of planning is being referred to? Explain by quoting the relevant line.

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Page 9 Sample Paper 14

O
Simran works as a corporate event coordinator in an event management company. She has
been made an overall official incharge for organising a painting exhibition for one of the clients
of the company. For ensuring that the exhibition takes place successfully, she identifies the
various activities involved and divides the whole work into various task groups like marketing
committee, decoration committee and reception committee.
In order to facilitate coordination within and among committees, she appoints a supervisor of
each group. Each member in the group is asked to report to their respective supervisors and all
the supervisors are expected to work as per Simran’s orders.
(a) Identify and explain the function of management being performed by Simran.
(b) Explain the steps involved in the performance of the function of management as identified
in part (a).

34. Mr. Harshil, the Marketing Manager of Sigma Solutions Private Limited had to take few
important decisions related to the sale of product. These decisions were of utmost importance as
they would not only facilitate the customers in product identification, usage and differentiation
but will also help the company in providing the relevant information to the consumer.
(a) Identify and explain the element of marketing mix being referred here.
(b) State and discuss its components.

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Page 1 Sample Paper 15

Sample Paper 15
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. BrightHire Recruitment Agency, managed by CEO Ms. Anjali Verma, focuses on providing
skilled professionals to various industries. Understanding the importance of effective staffing,
BrightHire implemented a comprehensive recruitment strategy to attract top talent. The agency
partnered with leading universities and professional networks to source candidates.
After recruitment, BrightHire conducted rigorous selection processes, including interviews and
assessments, to ensure the best fit for client needs. The company also emphasized training and
development, providing ongoing training programs to enhance employees’ skills and keep them
updated with industry trends.
To retain top performers, BrightHire introduced career development plans and mentorship
programs, fostering a supportive work environment. Regular performance appraisals were
conducted to evaluate employee progress and identify areas for improvement. This strategic
approach to staffing ensured that BrightHire maintained a skilled, motivated, and stable
workforce, leading to high client satisfaction and business growth.
Which function of staffing is illustrated by BrightHire Recruitment Agency providing ongoing
training programs to its employees?
(A) Recruitment (B) Selection
(C) Training and development (D) Performance appraisal

2. BrightPath Logistics employs a mix of financial and non-financial incentives to motivate its
employees. Financial incentives include performance-based bonuses and salary increments.
Non-financial incentives involve recognition programs, professional development opportunities,
and a positive work environment. By balancing both types of incentives, BrightPath enhances
employee satisfaction, reduces turnover, and boosts overall productivity, ensuring efficient and
reliable logistics services.
Which of the following is a non-financial incentive used by BrightPath Logistics?
(A) Performance-based bonuses (B) Salary increments
(C) Recognition programs (D) Overtime pay

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Page 2 Sample Paper 15 CBSE 12th Business Studies

3. Which of the following is an example of a quantitative control method?

(A) Employee satisfaction surveys (B) Sales volume reports
(C) Managerial assessments (D) Peer reviews

4. FastTrack Manufacturing, under CEO Ms. Priya Sharma, focuses on optimizing its capital
structure to balance debt and equity. The company considers factors such as interest rates,
financial risk, company growth stage, and market conditions when deciding the proportion of
debt versus equity financing. By carefully managing its capital structure, FastTrack aims to
minimize the cost of capital, reduce financial risk, and maximize shareholder value, ensuring
sustainable growth and financial stability.
Which factor does FastTrack Manufacturing consider when deciding its capital structure?
(A) Employee satisfaction (B) Interest rates
(C) Product diversity (D) Marketing strategies

5. Which of the following describes a ‘hybrid security’ ?

(A) A security that has both equity and debt characteristics
(B) A security issued by foreign governments
(C) A security that only pays fixed dividends
(D) A short-term investment vehicle

6. TechGear Ltd., a premium laptop manufacturer, carefully considers the concept of price as an
element of its marketing mix. The company sets its prices based on factors such as production
costs, competitor pricing, perceived value by consumers, and market demand. TechGear also
analyzes the economic conditions and customer purchasing power to determine optimal pricing
strategies. By balancing these factors, TechGear ensures that its laptops are competitively
priced while maintaining high-profit margins, catering to both quality-conscious and value-
seeking customers.
Which factor is TechGear Ltd. considering when determining the price of its laptops?
(A) Product design
(B) Competitor pricing
(C) Distribution channels
(D) Promotional activities

7. Assertion (A): Management is considered both a science and an art.

Reason (R): Management principles are rigid and universally applicable like scientific laws.


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(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation
of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.-
(D) Assertion (A) is false, but Reason (R) is true.

8. Precision Manufacturing adopted Taylor’s Scientific Management principles to enhance

productivity. They implemented time studies to optimize workflow, standardized tools and
processes, and introduced performance-based incentives for workers. By scientifically analyzing
tasks and optimizing operations, Precision Manufacturing significantly increased its output and
efficiency while maintaining high quality standards.
Which principle of Taylor’s Scientific Management did Precision Manufacturing apply by
conducting time studies to optimize workflow?
(A) Division of Work
(B) Standardization of Tools and Processes
(C) Time and Motion Studies
(D) Employee Welfare

9. Assertion (A): The political environment affects business regulations.

Reason (R): Political decisions can change the rules governing how businesses operate within
a country.
(A) Both assertion and reason are true, and reason is the correct explanation of the assertion.
(B) Both assertion and reason are true, but reason is not the correct explanation of the
assertion.
(C) Assertion is true, but reason is false.
(D) Both assertion and reason are false.

10. An IT company has decided to implement a new software system to improve efficiency. The
project manager outlines the necessary steps: assessing current processes, training employees,
implementing the new system, and evaluating performance post-implementation.
Which of the following steps comes after training employees?
(A) Assessing current processes (B) Evaluating performance
(C) Implementing the new system (D) Outlining necessary steps

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11. Read the following statements carefully:

Statement I: Delegation of authority means sharing authority but not responsibility.
Statement II: In decentralization, decision-making authority is dispersed throughout all levels
of the organization.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Performance appraisal is the evaluation of employees’ job performance.
Statement II: Promotion is a horizontal movement of an employee in an organization.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Steps in the delegation process include:

1. Defining the task.
2. Assigning the task to an employee.
3. Providing necessary resources and authority.
4. Monitoring and providing feedback.
Which of the following is the correct sequence?
(A) 1, 2, 4, 3 (B) 2, 1, 3, 4
(C) 1, 2, 3, 4 (D) 1, 3, 2, 4

14. Match the list I with list II and select correct option.
List I List II
a. Key Result Areas i Areas affecting overall performance
b. Critical Point Control ii Identifying critical points
c. Feedback iii Information on performance deviation
d. Standards iv Desired level of performance


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Page 5 Sample Paper 15

Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-ii, b-i, c-iv, d-iii
(C) a-i, b-iii, c-ii, d-iv (D) a-iv, b-ii, c-i, d-iii

15. Regarding the role of financial management in an organization, which of the following statements
are accurate?
1. It aids in raising capital through various sources.
2. It is responsible for daily operational tasks.
3. It assists in investment decision-making.
4. It manages the company’s financial risks.
Which of the following is/are correct?
(A) 1 and 3 (B) 2 and 4
(C) 1, 3, and 4 (D) All are correct

16. Identify the responsibility of consumers being highlighted in the picture given below.

(A) Ask for a cash memo on purchase of goods or services.

(B) Be aware about various goods and services available in the market so that an intelligent
and wise choice can be made.
(C) Learn about the risks associated with products and services, follow manufacturer’s
instructions and use the products safely.
(D) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark
on electrical goods, FPO mark on food products, Hallmark on jewellery, etc.

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Page 6 Sample Paper 15 CBSE 12th Business Studies

17. Which of the following statements is correct?

(A) The marketing mix consists only of Product and Price elements.
(B) Promotion mix includes advertising, personal selling, sales promotion, and public relations.
(C) Price is not a significant factor in the marketing mix.
(D) Physical distribution is unrelated to the marketing mix.

18. Which statement correctly highlights the importance of management?

(A) Management is only important for the top-level executives.
(B) Management ensures that goals are achieved with minimal resources.
(C) Management has no impact on society at large.
(D) Management functions do not contribute to economic development.

19. Which of the following statements is NOT correct regarding Fayol’s principle of Division of
Work?
(A) It allows for specialization among employees.
(B) It increases overall productivity.
(C) It leads to confusion about roles and responsibilities.
(D) It enhances efficiency in task execution.

20. Which of the following statements is not correct regarding the legal dimension of the Business
Environment?
(A) It includes laws related to consumer protection.
(B) It involves environmental regulations.
(C) It has no impact on business compliance.
(D) It encompasses labor laws and industry-specific regulations.

21. Mr. Raveesh is a sales representative in a popular DTH company. He is required to personally
assist and persuade the prospective buyers to buy the product. Mr. Raveesh is involved in
which element of the promotion mix? Give any two features of that element as well.

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Page 7 Sample Paper 15

22. What do you understand by organisation structure? Enumerate the need for creating organisation
structure.


O
Distinguish between ‘method’ and ‘budget’ as types of plans.

23. As per the concept of marketing, mention any three items that can be marketed.


O
Uma purchased a bottle of soya-souce from the local grocery shop. The information provided
on the bottle was not clear. She fell sick on consuming it.
She filed a case in the District
Commission under Consumer Protection Act and got the relief.
(i) Identify the important aspect neglected by the marketer in the above case.
(ii) Explain briefly any two functions of the aspect identified in (i) above.

24. Name the method of recruitment in the following cases

(i) A company get applications on and off even without declaring any vacancy. However, as
and when the vacancy arises, the company makes use of such applications.
(ii) Recruitment by which most of the senior positions of the industry as well as commerce are
filled.
(iii) Casual vacancies of unskilled or semi-skilled jobs when there is a rush of order or when
some permanent workers are absent.

25. “There are certain important tests used for selection of employees.” Discuss.

26. ITC Ltd is a multi-national company engaged in the business of FMCG goods. Mr Rajneesh is
currently working in it as the head of its cosmetic products segment. What kind of organisational
structure is being followed in ITC Ltd? Mention any three advantages of such structure.

27. Well Realty Private Limited is a company engaged in developing and promoting housing
projects. The total capital of the company is ` 75,00,000, out of which ` 30,00,000 has been
raised from loans. Compute the following
(i) The debt-equity ratio of the firm.
(ii) The percentage of debt in the total capital of the firm.


O
What are the main objectives of financial management? Briefly explain.

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Page 8 Sample Paper 15 CBSE 12th Business Studies

28. In the rainy season, the level of impurities in the water bodies tend to rise, leading to an
increase in the number of cases of jaundice and hepatitis. Keeping this in mind, the court
passed an order that all schools must have water purifiers for the school children, keeping in
view the below stated reasons
(i) Society in general is more concerned about the quality of life.
(ii) Innovative techniques are being developed to manufacture water purifier at competitive
rates.
(iii) Incomes are rising and children at home are also drinking purified water.
(iv) The government is also showing positive attitude towards the water purifier business.
Identify the different dimensions of business environment by quoting lines from the above para.

29. EVE Auto Limited is a manufacturing company who manufactures electric two wheelers for
domestic Indian market as well as for export. It had enjoyed a substantial market share and
also had a loyal customer base. But, now it is experiencing issue as it is unable to meet its
targets with regard to sales and customers satisfaction. Also, automobile industry in India has
grown tremendously and many new players have come with better technology and pricing,
which has increased the problems for the company. It is now planning to revamp its controlling
system and take other steps necessary to rectify the problems it is facing.
You are required to identify and explain the benefits that the organisation will drive from a
good control system.

30. A stock exchange is an institution which provides a platform for buying and selling of existing
securities. SEBI, as a watch dog performs various functions which protects the investors. Name
and explain any two functions.


O
‘Money market is essential market for short-term funds’. Discuss.

31. The role of financial management cannot be underestimated, since it has a direct bearing on
the financial health of a business. The importance of financial decisions can be judged by the
fact, that almost all items of financial statements are affected by them. In the light of the
above, explain the functions of financial management.

32. Identify the principles of management violated in the following cases and explain them.
(i) Charun, a manager, speaks to people at all levels, including his as well as other departments.
(ii) Charun, a manager, expects his subordinates to work for personal satisfaction and
contentment, without any monetary reward.
(iii) Charun, a manager, expects that his subordinate produce instant results, without giving
him sufficient time to settle in the new environment.
(iv) Charun, a manager, is not strict with his employees regarding timings and targets of work.


O

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Page 9 Sample Paper 15

Identify the characteristics of coordination and explain them.

(i) CEO of Kane Ltd. coordinate activities of his subordinates and purchase manager
coordinates with both CEO and foreman for activities.
(ii) Sales manager of Jimmy Ltd. gave individual targets to all sales executives to ensure that
overall target of sales department is met.
(iii) Managers ensures coordination in all functions from planning to controlling.
(iv) Managers of all the departments tries to ensure coordination with their respective teams.

33. Royal Chairs Private Limited is facing a problem of declining market share due to increased
competition in the market. In order to retain its share in the market, what logical steps should
be followed by a manager?


O
Jaya, Mahi and Meera have decided to start a business of manufacturing shoes. They identified
the following main activities which they have to perform viz. purchase of raw materials;
machinery; production of shoes; arrangement of finance; sale of shoes and selection of employees.
In order to facilitate the work, they thought that four managers should be appointed to look
after production, finance, marketing and personnel.
(i) Identify the function of management involved in above mentioned para.
(ii) Quote the lines from above para which help you in identifying this function.
(iii) State the steps followed in the process of this function of management.

34. Aryaman Mehta is the sales head of Fortune Electrical Private Limited. His team includes three
people. Each of the three team members supposed to sell 20 electric mixers in a month.
At the end of the month of March, he checked the reports of sales persons. Two members sold
less than 20 mixers, whereas one member sold more than 20 mixers.
He decided to hear the reasons of non-accomplishment of target. The reasons they disclosed was
the inadequate supply of mixers which lead to less sales.
Aryaman directed the production department to ensure timely supply of mixers in future.
(i) Name the function of management discussed above.
(ii) State the steps of function identified in part (i) by quoting the lines.

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Page 1 Sample Paper 16

Sample Paper 16
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. UrbanBuild Construction Ltd., led by CEO Mr. Suresh Kumar, plans to expand its operations
to two new cities within the next three years. The company embarked on a detailed planning
process, starting with comprehensive market research to identify potential locations and assess
demand.
UrbanBuild set specific objectives for each new project, including timelines, budget allocations,
and resource requirements. A step-by-step timeline was developed, outlining activities such as
acquiring permits, hiring local staff, and initiating construction. To mitigate risks like delays in
permits or supply chain disruptions, UrbanBuild prepared contingency plans. Regular progress
reviews were scheduled to monitor the implementation of the expansion plan and make necessary
adjustments.
This meticulous planning enabled UrbanBuild to successfully establish new branches on time,
increase its market share, and achieve sustainable growth, demonstrating effective planning in
action.
What aspect of planning is demonstrated by UrbanBuild Construction Ltd. preparing
contingency plans for potential delays in permits?
(A) Planning is continuous (B) Planning involves decision-making
(C) Planning is flexible (D) Planning anticipates future uncertainties

2. HealthGuard Medical Devices utilizes a functional structure, dividing the company into
specialized departments like engineering, quality control, sales, and customer service. This
structure offers several advantages: it promotes specialized expertise, enhances operational
efficiency, and facilitates better coordination within departments. Employees can focus on
their areas of expertise, leading to higher quality products and improved customer satisfaction,
thereby strengthening HealthGuard’s market position.
Which advantage does HealthGuard Medical Devices gain from using a functional structure?
(A) Increased inter-departmental conflicts (B) Specialized expertise within departments
(C) Difficulty in managing multiple projects (D) Reduced efficiency

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3. Which of the following is a step in the staffing process?

(A) Marketing analysis (B) Recruitment
(C) Budget allocation (D) Product development

4. HealthFirst Hospitals, led by Dr. Anil Kumar, exemplifies effective leadership through various
styles. Dr. Kumar adopts an authoritative style during critical decision-making, a democratic
style when seeking team input for projects, and a laissez-faire style to encourage autonomy
among senior staff. This adaptive leadership approach ensures that the hospital operates
smoothly, fosters innovation, and maintains high standards of patient care, catering to different
situations and team dynamics effectively.
Which leadership style does Dr. Anil Kumar use when he encourages autonomy among senior
staff at HealthFirst Hospitals?
(A) Authoritative (B) Democratic
(C) Laissez-faire (D) Transactional

5. What is the main purpose of budgetary control?

(A) To increase sales (B) To manage financial resources
(C) To train employees (D) To develop marketing strategies

6. GreenLeaf Agro Industries manages both fixed and working capital to ensure smooth operations.
Fixed capital is used for purchasing land, machinery, and equipment necessary for production.
Working capital covers daily operational expenses like raw materials, wages, and utilities.
Factors influencing fixed capital requirements include the scale of operations and technology
used, while working capital needs depend on inventory levels, credit terms, and sales volume.
Efficient management of both types of capital ensures GreenLeaf’s operational efficiency and
financial stability.
What type of capital does GreenLeaf Agro Industries use to cover daily operational expenses
like raw materials and wages?
(A) Fixed capital (B) Working capital
(C) Equity capital (D) Debt capital

7. Assertion (A): The forex market is the largest financial market in the world.
Reason (R): It operates 24 hours a day, facilitating global currency trading.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.
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8. FreshFarm Organics, led by CEO Ms. Meera Rao, excels in physical distribution to ensure its
organic products reach consumers efficiently. The company manages several components of
physical distribution, including transportation, warehousing, inventory management, and order
processing. FreshFarm employs multiple channels of distribution, such as direct-to-consumer
online sales, partnerships with organic grocery stores, and participation in farmers’ markets. By
optimizing these components and channels, FreshFarm ensures timely delivery, reduces costs,
and maintains product quality, enhancing customer satisfaction and loyalty.
Which component of physical distribution is FreshFarm Organics managing by ensuring timely
delivery of products?
(A) Warehousing (B) Inventory management
(C) Transportation (D) Order processing

9. Assertion (A): Top-level management is responsible for the day-to-day supervision of workers.
Reason (R): Top-level management focuses on strategic planning and policy-making.
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation
of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

10. A company observed that high employee turnover was affecting productivity and morale.
To address this, management introduced policies that focused on job security, benefits, and
opportunities for career advancement, which encouraged employees to stay longer.
Which principle of management is most relevant to this case?
(A) Esprit de Corps (B) Stability of Tenure
(C) Authority and Responsibility (D) Division of Work

11. Read the following statements carefully:

Statement I: Political environment includes changes in government policies and regulations.
Statement II: Technological environment is static and does not impact business significantly.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

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12. Read the following statements carefully:

Statement I: Planning establishes standards for controlling.
Statement II: Planning ensures success in all business situations.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the following steps of decentralization in the correct order:

1. Distributing decision-making authority
2. Empowering lower-level managers
3. Enhancing organizational flexibility
4. Reducing the workload of top management
Which of the following sequences is correct?
(A) 1, 2, 3, 4 (B) 2, 1, 4, 3
(C) 1, 3, 2, 4 (D) 2, 3, 1, 4

14. Match the list I with list II and select correct option.
List I List II
a. On-the-job training iv Practical training during education
b. Vestibule training i Learning while performing
c. Apprenticeship ii Off-the-job training
d. Internship iii Technical training for a specific job
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iv, b-iii, c-ii, d-i
(C) a-ii, b-i, c-iv, d-iii (D) a-i, b-iii, c-ii, d-iv

15. Non-financial incentives include:

1. Performance bonuses.
2. Recognition programs.
3. Flexible working hours.
4. Career development opportunities.
Which of the following is/are correct?
(A) 1 and 2 only (B) 2, 3 and 4 only
(C) 1, 3 and 4 only (D) All 1, 2, 3 and 4

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Page 5 Sample Paper 16

16. Identify the right of consumers being promoted in the given picture.

(A) Right to be heard

(B) Right to seek redressal
(C) Right to be informed
(D) Right to consumer education

17. Which of the following statements about working capital is correct?

(A) Working capital is invested in long-term assets.
(B) Working capital represents current assets minus current liabilities.
(C) High working capital always indicates poor financial health.
(D) Working capital is irrelevant for day-to-day operations.

18. Which of the following statements is correct?

(A) Diversification reduces risk by concentrating investments in one asset class.
(B) All investments guarantee returns.
(C) Debt securities have higher risks than equity securities.
(D) The capital market only deals with government-issued securities.

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19. Which of the following statements is NOT correct?

(A) Market research is an ongoing process that helps businesses stay competitive.
(B) Market research only gathers data on past sales performance.
(C) Market research can identify consumer needs and preferences.
(D) Market research assists in making informed marketing decisions.

20. Which of the following statements about the objectives of management is NOT correct?
(A) Management objectives include economic, social, and personal goals.
(B) Management’s sole objective is profit maximization.
(C) Social objectives involve contributing to the welfare of society.
(D) Personal objectives relate to the development needs of employees.

21. Nature of money market can be well explained with the help of its features. State any three
such features of money market.


O
Explain the various terms used in relation to stock exchange.

22. Discuss the importance of Directing in an organization.

O
Discuss the concept of Formal Communication in an organization.

23. Lavish Foods Limited a reputed chocolate manufacturer, had recently recruited their employees
through campus placements organized by different Hotel management Institutes across North
India. During one of their training sessions, the Master Chef was elaborating the process they
follow to make chocolate bars after receiving the cocoa beans from the suppliers. These include
roasting, winnowing, grinding and tempering which are done with utmost care. But the most
important being Roasting. The beans need to be roasted at a temperature between 105° C
and 120° C in order to eliminate the pathogens. Any variation in temperature will impact the
quality of their finished products and will lead to the rejection of the entire lot due to the
presence of pathogens. Finally, they must ensure that while packaging is done the chocolate
bars are wrapped in aseptic conditions, otherwise all their efforts and resources will go waste.
In explaining the process, the Master Chef referred to one of the techniques used in analysing
the deviations in controlling. Identify and explain it.

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24. Satya completed her MBA (Event Management) in the year 2019. She joined an Event
Management Company. Being fresher in the field of work, she had to undergo a process
through which her skills and abilities to perform the assigned jobs can be increased. Since
event management involves activities, like identifying and understanding the target audience,
developing the theme of the event, communicating and promoting the concept, coordinating
technical parameters, projecting the cost and successfully conducting the event, so for first
three months, Satya worked with Mr. Raveesh, the Event Coordinator. She visited the events
organized by their company such as seminars, symposiums, exhibitions, functions, etc which
not only gave her the real hands on experience but also learning in an environment where she
actually implements the knowledge and skills obtained by her during her MBA.
(a) Name the process by which Satya’s skills and abilities to perform the assigned jobs can be
increased.
(b) Identify and state the method of the concept identified in part (a) adopted by the company
for Satya.

25. Discuss any four factors affecting the Working capital requirement of a firm


O
Define Financial management and discuss the various type of decisions taken under it.

26. The website of a reputed private bank stated

‘If you have any complaints related to our services you can follow these steps:
Contact the officer concerned or the Manager of Division or Branch Manager.
Obtain the complaint book from the branch and file your written complaint. A copy of the
complaint is returned with acknowledgement of receipt.’
(a) Which consumer right is being taken care of by the Bank?
(b) Also discuss three other rights of a consumer as per the Consumer Protection Act, 2019.

27. In a manufacturing firm, there was no system for sharing information between the Divisional
heads and the Project Managers. Project Managers were kept in the dark on all aspects of
labour hour usage and direct costs, preferring to focus solely on methodology and execution
of the project. They were also not provided any information related to whether invoices were
being sent out and paid correctly by clients, whether subcontractors and consultants were
billing appropriately, etc. As a result, projects went over budget, incorrect invoices were sent
out, and miscommunication occurred frequently with clients and partners.
(a) Which quality of Management is missing in the above organization?
(b) Discuss its importance.

28. Amid the COVID-19 pandemic, in order to promote the concept of social distancing, the
companies resorted to change their taglines and logos. Coca Cola, for instance featured its
brand name - typically written in tightly connected Spencerian script - with extended spaces
between letters accompanied by the message, “Staying apart is the best way to stay connected.”
Similarly, Starbucks logo now features a mermaid wearing a protective mask.


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Page 8 Sample Paper 16 CBSE 12th Business Studies

(a) The above changes in the logos or taglines aim at handling which dimension of business
environment?
(b) Also discuss three other dimensions that got impacted during COVID-19.

29. Discuss the importance of the primary function of Management.

O
Discuss the limitations of the function of management that aims to eliminate the uncertainty
that exists in future.

30. To finance its expansion plans, MBV Spices Private Limited. is planning to raise the funds by
issuing shares. Since the issue of shares is a lengthy procedure involving high floatation costs,
so the Finance Manager suggested that for bridge financing, they can issue Commercial Papers.
As the company had a good financial record in the past, so they were able to raise the funds
as planned.
(a) Identify the components of Financial Markets through which MBV Spices, had raised
funds.
(b) Differentiate between the components identified above on any three basis.

31. The Marketing department of Lime Tree Ltd. has to design its promotion strategies. For this
the Marketing Manager assigns the task as follows:
• Advertising executive will do the research to figure out what their organization needs the
most, i.e., increase in customer base, building brand image or increasing the awareness about
their product.
• The Copywriter will come up with taglines, scripts, jingles, and other written content.
• The Public relation officer will approach media platforms, influencers, and other relevant
third parties to negotiate deals.
• The Graphic designer will be designing of the billboards, social media posters, video
advertisements, etc.
Each individual associated with designing of the promotion strategy knew the scope of their
decision making.
(a) Which concept of Management has been adopted by the Marketing Manager to get the
promotion strategy designed?
(b) Discuss any five points highlighting the importance of the concept identified above.

32. Discuss the following four functions of Marketing.

(a) Gathering and Analysing Market Information
(b) Product Designing and Development
(c) Physical Distribution
(d) Customer Support Services


O
Discuss any four factors that affect the price of a product.

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Page 9 Sample Paper 16

33. Explain the following techniques of Scientific management:

(a) Standardization and Simplification of work
(b) Differential Piece Wage System


O
Discuss the following principles given by Henry Fayol :
(a) Unity of Direction
(b) Stability of Personnel
(c) Order

34. The management of Shree Polymer Private Limited keeps its employees motivated throughout
the year. They believe that it is not only the money which motivates an employee to work more
but there are other ways too to keep them motivated.
Whenever the sales representatives succeed in achieving their monthly targets, the Marketing
manager post a shoutout on social media, or send a mass email to the entire company giving
details about their job done well. This gives employees a sense of pride and ownership over
their work.
Every quarter, the Directors of the company call all the supervisors with their team for
community lunch. This makes them refreshed and rejuvenated, thereby boosting up their
morale, which is critical to workplace success. As a result, they feel supported by their team,
build bonds and enjoy to work more.
Whenever the company has a big project coming up, they let an employee take a leadership
role. The Management offers its guidance throughout the project which is appreciated by the
employees. This not only develops in them the ability to tackle a new project, but as they gain
experience it helps them in availing better career and leadership opportunities in future.
Identify and explain the different non-financial incentives used by the company.

******

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Page 1 Sample Paper 17

Sample Paper 17
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. PrimeTextiles Ltd., under the leadership of CEO Mr. Sameer Desai, is a prominent player in the
textile industry. To enhance operational efficiency, Mr. Desai adopted Henri Fayol’s Principles
of Management. The company implemented the division of work by assigning specialized roles
to employees, which significantly boosted productivity and product quality. Clear authority
and responsibility were established, empowering managers to make decisions while holding
them accountable for their outcomes.
PrimeTextiles strictly adhered to the unity of command principle, ensuring that each employee
reported to only one supervisor, thereby reducing confusion and conflicts. A well-defined scalar
chain facilitated smooth communication from top management to lower levels, ensuring that
information flowed seamlessly throughout the organization. The company promoted equity,
treating all employees fairly, which enhanced morale and reduced turnover rates. By encouraging
initiative, managers were motivated to take proactive steps and innovate without waiting for
directives.
These principles fostered a disciplined and motivated workforce, leading to significant
improvements in production efficiency, product quality, and client satisfaction. PrimeTextiles’
commitment to Fayol’s principles solidified its reputation as a reliable and forward-thinking
textile manufacturer.
Which of Fayol’s principles is reflected when PrimeTextiles Ltd. ensures that each employee
reports to only one supervisor?
(A) Division of work (B) Unity of command
(C) Scalar chain (D) Esprit de corps

2. TechWave Solutions stays ahead by embracing the technological dimension of the business
environment. The company invests in cutting-edge software development tools and artificial
intelligence to enhance its product offerings. By adopting the latest technologies, TechWave
improves efficiency, reduces costs, and delivers innovative solutions that meet the evolving
needs of its clients, thereby maintaining a competitive edge in the tech industry.


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In what way does TechWave Solutions respond to the technological dimension of the business
environment?
(A) By avoiding new technologies
(B) By investing in cutting-edge software and artificial intelligence
(C) By reducing research and development
(D) By focusing only on traditional methods

3. Which type of plan provides a broad guideline for decision-making in routine situations?
(A) Strategy
(B) Policy
(C) Method
(D) Budget

4. GlobalFoods Ltd. employs a divisional structure by creating separate divisions for different
product lines such as beverages, snacks, and dairy. This structure offers advantages like
enhanced flexibility, better product focus, and quicker decision-making within each division.
Each division operates semi-autonomously, allowing GlobalFoods to respond swiftly to market
changes and consumer preferences, thereby maintaining competitiveness and driving growth in
diverse markets.
What is one advantage GlobalFoods Ltd. gains from using a divisional structure for different
product lines?
(A) Centralized decision-making
(B) Enhanced flexibility and product focus
(C) Reduced accountability
(D) Limited responsiveness to market changes

5. Which recruitment source involves advertising job openings in newspapers, online portals, and
other media?
(A) Employee referrals
(B) Internal job postings
(C) External advertisements
(D) Campus recruitment

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6. GlobalTech Ltd. emphasizes both formal and informal communication to enhance organizational
efficiency. Formal communication is structured through official channels like meetings, reports,
and emails, ensuring clear and documented information flow. Informal communication occurs
through social interactions, fostering a collaborative and friendly work environment. By
balancing both types of communication, GlobalTech ensures that important information is
effectively conveyed while also building strong interpersonal relationships among employees.
What type of communication involves structured channels like meetings and reports at
GlobalTech Ltd.?
(A) Informal communication (B) Non-verbal communication
(C) Formal communication (D) Electronic communication

7. Assertion (A): Feedback control is applied before the commencement of activities.

Reason (R): Feedback control helps in preventing potential problems by anticipating them.
Which of the following is correct?
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

8. AlphaRetail Ltd., a growing retail chain, faces important financial decisions as it plans to open
new stores. The investment decision involves determining the amount to invest in new store
locations. The financing decision requires choosing between issuing new shares or taking loans
to fund the expansion. Additionally, the company must decide on the dividend policy, whether
to distribute profits to shareholders or retain earnings for further growth. These decisions are
influenced by factors such as cost of capital, market conditions, and shareholder expectations.
What financial decision is AlphaRetail Ltd. making by choosing between issuing new shares or
taking loans to fund expansion?
(A) Investment decision (B) Financing decision
(C) Dividend decision (D) Budgeting decision

9. Assertion (A): Economic indicators are crucial for investors in financial markets.
Reason (R): They provide insights into the overall health of the economy.
(A) Both A and R are true, and R is the correct explanation of A.
(B) Both A and R are true, but R is not the correct explanation of A.
(C) A is true, but R is false.
(D) A is false, but R is true.

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10. Fresh Farm Organics, a company selling organic vegetables, decided to segment its market
based on consumers’ lifestyles and values. They targeted health-conscious customers who prefer
organic over conventional produce. Their marketing campaigns highlighted the benefits of
organic living and sustainability.
Which type of market segmentation is Fresh Farm Organics employing?
(A) Demographic Segmentation (B) Geographic Segmentation
(C) Psychographic Segmentation (D) Behavioral Segmentation

11. Read the following statements carefully:

Statement I: Management is a multidimensional activity that includes management of work,
people, and operations.
Statement II: Management is applicable only to large organizations and not to small enterprises.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Division of work leads to specialization and efficiency in operations.
Statement II: According to Taylor, there should be no standardization of work.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Arrange the following in the correct order when conducting a SWOT analysis:
1. Identify strengths.
2. Identify weaknesses.
3. Identify opportunities.
4. Identify threats.
(A) 1, 2, 3, 4 (B) 3, 4, 1, 2
(C) 2, 1, 4, 3 (D) 4, 3, 1, 2

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Page 5 Sample Paper 17

14. Match the list I with list II and select correct option.
List I List II
a. Objectives i General guidelines for action
b. Strategy ii Overall direction for long-term goals
c. Policy iii Series of steps for tasks
d. Procedure iv Specific results to be achieved
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-i, c-ii, d-iv
(C) a-ii, b-iv, c-iii, d-i (D) a-iv, b-ii, c-i, d-iii

15. Which of the following statements is/are correct regarding the importance of organizing?
1. Organizing ensures efficient allocation of resources.
2. Organizing helps in coordinating activities to achieve goals.
3. Organizing eliminates the need for controlling activities.
4. Organizing provides a structured framework for the organization.
Which of the following statements is/are correct?
(A) 1 and 2 only (B) 1, 2 and 4 only
(C) 2 and 3 only (D) All 1, 2, 3 and 4

16. Identify the responsibility of consumers from the picture above in which the doctor is suggesting
the surgery to his patient.

(A) Be honest in your dealings

(B) Learn about the risk associated with product and services
(C) Respect the environment
(D) Assert yourself to ensure that you get a fair deal.

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Page 6 Sample Paper 17 CBSE 12th Business Studies

17. Which of the following statements about financial incentives is correct?

(A) Financial incentives do not affect employee motivation.
(B) Financial incentives include recognition awards.
(C) Financial incentives directly increase an employee’s take-home pay.
(D) Financial incentives are the only way to motivate employees.

18. Which of the following is a correct step in the controlling process?

(A) Ignoring deviations from standards
(B) Establishing standards
(C) Increasing resource allocation without assessment
(D) Delegating all control responsibilities

19. Which of the following statements about working capital is not correct?
(A) Working capital is calculated as current assets minus current liabilities.
(B) Adequate working capital ensures smooth day-to-day operations.
(C) Working capital is invested in long-term assets like machinery.
(D) High working capital can indicate good liquidity.

20. Which of the following statements is NOT correct?

(A) An index fund aims to replicate the performance of a specific market index.
(B) Bonds are always safer than stocks.
(C) The primary market allows companies to raise capital.
(D) The capital market includes both stocks and bonds.

21. Rozar Electricals Limited recently proposed to issue commercial paper of ` 10,00,000 and
equity shares of ` 140 each for meeting its capital requirements of diversification.
(i) Quoting the lines, identify the markets from where they, would procure the necessary
funds.
(ii) Distinguish between the markets identified in (i), on the basis of duration and investment
outlay.

22. If planning involves working out details for the future, why does it not ensure success?

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Page 7 Sample Paper 17

O
Explain how
(i) Adaptation to change, and
(ii) Effective administration, make organising important.

23. Jairaj is a well-known businessman. He decided to send both his children Viraj and Saroj
abroad to acquire a degree in management of business. He is of the opinion that there is a
growth in management as discipline, but still it is not considered to be a full-fledged profession.
(i) Why Jairaj considers management as a discipline?
(ii) Why management is not considered to be a full-fledged profession?

24. “Selection is a negative process.” Do you agree? Give reason to support your answer.


O
“Directing is the heart of management process.” Do you agree? Give reason in support of your
answer.

25. “Packaging has acquired great significance in the marketing of goods.” Explain any three
functions of packaging.

26. “Management is skillful and personal application of existing knowledge to achieve desired
results.” Explain.

27. Suhasini purchased some household goods from a general store. After reaching home, she found
a face cream in her merchandise,. for which she has not been billed. After checking the date of
expiry and other details, she started using it. Her face burnt due to the use of cream.
(i) Can Suhasini file a complaint? Justify your answer.
(ii) Under Consumer Protection Act, 2019, who can file a complaint?

28. You are a management guru. In your opinion, is controlling the last function or the beginning
of the process of management?


O
RLT Global Auto Limited is setting-up a new plant in India, for manufacturing auto components.
India has a highly competitive and cost effective production base in this sector. Many reputed
car manufacturers source their auto components from here.
RLT Global is planning to capture about 40% of the market share in. India and also export
to the tune of atleast $5 million in about 2 years of its planned operations. To achieve these
targets, it requires a highly trained . and motivated work force. You have been asked by the
company to advise it in this matter. Which function of management helps in obtaining right
people and putting them on the right place/jobs? Explain any three benefits of this function.

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Page 8 Sample Paper 17 CBSE 12th Business Studies

29. Discuss any two features of planning function of management.

O
Discuss the benefits of organising function of management.

30. Thermex Cookware Private Limited is a manufacturer of premium utensil. The company has
been doing extremely well and has been able to carve a niche in the market. The company
recently decided to go global.
To achieve the above objective, the company decided to increase its production to 30,000 units
per month. But, after two months, the management observed that only 45,000 units were
manufactured. Company is opting for a good control system in order to achieve the targets on
time. In context to this, give some of the advantages of controlling.

31. Motivation refers to the way in which urges, desires, aspirations, strivings or needs direct,
control and explain the behaviour of human beings. It is something which moves the person
to action and continues him in the course of action already initiated. With reference to this,
explain the process of motivation.


O
Formal communication is the communication which flows through scalar chain, i.e. official
channels designed in the organisation chart. It may be oral or written and may be upward,
downward or even horizontal. With reference to this, write three major merits and three major
demerits of formal communication.

32. “The marketing process involves a number of functions or activities to be performed by the
marketer to provide goods and services to the customers.” In the light of this statement,
explain any six functions of marketing.


O
Explain the concept of marketing management along with its functions and objectives.

33. JAY Cloths Limited is a company manufacturing textiles. It has a share capital of ` 60 lakh.
In the previous year, its earning per share was ` 0.50. For diversification, the company requires
additional capital of ` 40 lakh.
The company raised funds by issuing 10% debentures for the same. During the year, the
company earned profit of ` 8 lakh on capital employed. It paid tax @ 40%.
(i) State whether the shareholders gained or lost, in respect of earning per share on
diversification. Show your calculations clearly.
(ii) Also, state any three factors that favour the issue of debentures by the company as part
of its capital structure.

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Page 9 Sample Paper 17

34. A company was manufacturing ‘LED bulbs’ which were in great demand. It was found that
the target of producing 300 bulbs a day was not met by the employees. On analysis, it was
found that the workers were not at fault. Due to electricity failure and shortage of workers, the
company was not able to achieve the set targets and alternative arrangements were needed.
To meet the increased demand, the company assessed that approximately 88 additional workers
were required out of which 8 would work as heads of different departments and 10 would work
as subordinates under each head. The required qualifications and job specifications were also
enlisted. It was also decided that necessary relaxation should be given to encourage women,
persons from backward and rural areas and persons with special abilities to assume responsible
positions in the organisation. All efforts were made to match the ability of the applicants with
the nature of work:
(a) Identify the functions of management discussed above.
(b) State the two steps in the process of each function discussed in the above para.
(c) List any two values which the company wants to communicate to the society.


O
Dharma Production House is a company engaged in the production and distribution of films.
The company is an established name in Bollywood.
Now the company wants to enter in the regional cinemas also and for this, they are now
targeting the South Indian Film Industry.
They have launched three films in South with leading actors and actresses and even managed
to sign Rajnikanth. To fund its projects, the management takes a decision to raise money for
long-term capital needs of business from certain sources.
(i) State the different sources of long-term capital.
(ii) Decision to raise money for long-term capital needs is affected by several factors
Discuss any five such factors.

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Page 1 Sample Paper 18

Sample Paper 18
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. HomeElectro Retailers, managed by CEO Mr. Karan Joshi, is a major distributor of household
appliances. A customer purchased a washing machine from HomeElectro, which malfunctioned
within two weeks of purchase. Despite multiple requests for repair, the store failed to address
the issue satisfactorily. Frustrated, the customer filed a complaint with the Consumer Disputes
Redressal Commission. The commission reviewed the case and ruled in favor of the customer,
directing HomeElectro to either repair the faulty machine or provide a full refund.
This case underscores the importance of consumer protection, highlighting consumers’ rights
to seek redressal for defective products. It demonstrates how legal frameworks are in place to
protect consumers from unfair trade practices and ensure they receive adequate remedies for
grievances. Effective consumer protection mechanisms not only safeguard individual rights but
also promote fair business practices, enhancing overall market trust and integrity.
Which consumer right is exercised when the customer files a complaint with the Consumer
Disputes Redressal Commission to seek a refund for a faulty washing machine?
(A) Right to safety (B) Right to be informed
(C) Right to choose (D) Right to seek redressal

2. HealthCare Innovations Ltd., led by Dr. Anjali Verma, views management as a science, art, and
profession. As a science, they use data analytics to streamline operations and improve patient care.
As an art, they encourage creative solutions to healthcare challenges. Recognizing management
as a profession, HealthCare Innovations invests in continuous professional development and
upholds ethical standards. This multifaceted approach ensures efficient operations, innovative
healthcare solutions, and a commitment to professional integrity.
How does HealthCare Innovations Ltd. exemplify management as an art?
(A) By using data analytics (B) By encouraging creative solutions
(C) By investing in professional development (D) By implementing systematic processes

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Page 2 Sample Paper 18 CBSE 12th Business Studies

3. The principle of ‘Authority and Responsibility’ by Fayol indicates that:

(A) Authority comes without responsibility
(B) Responsibility should exceed authority
(C) Authority and responsibility should be balanced
(D) Employees have authority over managers

4. SecureBuild Construction closely monitors the political dimension of the business environment.
Changes in government policies, such as new building regulations or infrastructure spending,
directly impact their projects. By staying informed about political developments, SecureBuild
adjusts its strategies, complies with regulations, and capitalizes on government contracts,
ensuring smooth operations and growth despite political fluctuations.
How does SecureBuild Construction navigate the political dimension of the business environment?
(A) By ignoring government policies
(B) By staying informed about political developments and adjusting strategies
(C) By reducing compliance efforts
(D) By focusing solely on private contracts

5. The most critical step in the planning process is:

(A) Developing premises (B) Setting objectives
(C) Evaluating alternatives (D) Allocating resources

6. BrightFuture Technologies maintains a formal organization with defined roles, hierarchical

structures, and standardized procedures to ensure operational efficiency. Simultaneously, an
informal organization thrives through employee friendships and spontaneous collaborations.
The formal organization ensures tasks are completed efficiently, while the informal organization
fosters a positive work environment, enhances communication, and promotes teamwork,
contributing to overall organizational harmony and productivity.
What advantage does BrightFuture Technologies gain from having both formal and informal
organizations?
(A) Increased operational inefficiency
(B) Enhanced teamwork and operational efficiency
(C) Reduced employee morale
(D) Confusion in roles

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Page 3 Sample Paper 18

7. Assertion (A): On-the-job training is conducted in a simulated environment.

Reason (R): On-the-job training allows employees to learn by performing their actual job tasks
under supervision.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) Both A and R are incorrect.

8. TechWave Innovations faces several barriers to effective communication within its teams.
Language differences among international employees, technological glitches in communication
tools, and hierarchical structures that limit open dialogue are major challenges. To overcome
these barriers, TechWave implements multilingual training programs, invests in reliable
communication technology, and fosters a culture of open communication where employees feel
comfortable sharing ideas and feedback, thereby enhancing overall organizational communication.
Which barrier to effective communication is TechWave Innovations addressing by implementing
multilingual training programs?
(A) Technological glitches (B) Language differences
(C) Hierarchical structures (D) Lack of feedback

9. Assertion (A): Variance analysis is a tool used in financial control.

Reason (R): It involves comparing actual financial performance with budgeted figures.
Which of the following is correct?
(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

10. JKL Manufacturing is planning its capital structure. Given the current low-interest rates and
tax benefits on debt, the management considers increasing debt in their financing mix.
Which factor is JKL Manufacturing primarily considering in its capital structure decision?
(A) Business Risk
(B) Tax Considerations
(C) Operational Efficiency
(D) Dividend Policy

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Page 4 Sample Paper 18 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: A commercial paper is an unsecured, short-term debt instrument issued by
corporations.
Statement II: Certificate of deposit is a negotiable instrument issued by commercial banks.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Place or distribution is concerned with making products available to customers
at the right time and place.
Statement II: A zero-level channel involves intermediaries between the producer and consumer.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in the controlling process:

(A) Setting standards, Measuring performance, Taking corrective action, Comparing
performance
(B) Measuring performance, Setting standards, Comparing performance, Taking corrective
action
(C) Setting standards, Measuring performance, Comparing performance, Taking corrective
action
(D) Comparing performance, Setting standards, Measuring performance, Taking corrective
action

14. Match the list I with list II and select correct option.
List I List II
a. Science i Personalized application of knowledge
b. Art ii Systematic body of knowledge
c. Profession iii Ethical code of conduct
d. Management iv Universal applicability

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Page 5 Sample Paper 18

Options:
(A) a-ii, b-i, c-iv, d-iii (B) a-iv, b-ii, c-iii, d-i
(C) a-ii, b-i, c-iii, d-iv; (D) a-i, b-iii, c-ii, d-iv;

15. Which of the following is/are correct regarding the importance of business environment?
1. It helps businesses identify potential opportunities.
2. It provides insight into market conditions.
3. It reduces the risk of unexpected changes in policies.
4. It promotes better decision-making.
(A) Only 1 and 4
(B) Only 1, 2, and 4
(C) Only 3 and 4
(D) All of the above

16. Choose the levels of packaging depicted in the picture.

(A) Secondary Packaging and Transportation Packaging

(B) Primary Package and Secondary Packaging
(C) Primary Package and Transportation Packaging
(D) None of these

17. Which of the following steps is NOT part of the organizing process?
(A) Identifying activities
(B) Assigning tasks
(C) Establishing relationships
(D) Controlling activities

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Page 6 Sample Paper 18 CBSE 12th Business Studies

18. Which of the following statements is correct about employee referrals as a recruitment source?
(A) Employee referrals are considered an external recruitment source.
(B) Employee referrals often lead to higher-quality hires due to existing employees recommending
suitable candidates.
(C) Employee referrals are always more expensive than other recruitment methods.
(D) Employee referrals limit the diversity of the workforce.

19. Which of the following statements about financial incentives is NOT correct?
(A) Financial incentives include bonuses and salary increments.
(B) Financial incentives directly increase an employee’s take-home pay.
(C) Financial incentives have no impact on employee motivation.
(D) Profit sharing is considered a financial incentive.

20. Which of the following statements is NOT correct regarding the steps in the controlling process?
(A) Establishing standards is the first step.
(B) Measuring actual performance follows establishing standards.
(C) Ignoring deviations is a step in the controlling process.
(D) Taking corrective action is the final step.

21. GK Goenka started a Publishing house named ‘Entire’ signifying the wide range of books it will
offer ranging from comic series for children to novels and documentaries for serious readers. As
a part of its marketing strategy, it decided to organise a mega reading event for which it even
opened a facebook page through which it invited people to come, attend and like the event.
The event gave special invitation to the underprivileged children and to the orphanages who
do not have access to such facilities. Prabhakar wanted to gain a lot of publicity through this.
Do you think the brand name ‘Entire’ is relevant in context of the publishing house started by
GK Goenka.
Give any two reasons to justify your answer.

22. Identify and explain the dimensions of Business Environment in the following cases:
(a) It is mandatory to give a statutory statement on the Mutual Fund Investment documents-
“Mutual Fund Investments are subject to market risk. Please read the offer document
carefully before investing”.
(b) Small business will now move towards transaction of business affairs in plastic money.
This will lead to use of internet, new gadgets, etc. and reduce dependence on cash. Report
generation of these transactions will be helpful in acting as a proof for the betterment of
future business.

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Page 7 Sample Paper 18

23. Explain any three features of planning.

O
Explain any three points highlighting the importance of planning.

24. Decentralisation is an optional policy. Explain why an organisation would choose to be

decentralised.


O
You are a manager in a toy manufacturing company. How will you perform the job of ‘grouping
of activities’ as a step towards process of organisation?

25. ‘The right people can help to take a business to the top; the wrong people can break the
business’.
Identify the management function indicated in the statement and explain its importance.

26. In the organisational context basic salary helps to satisfy the basic physiological needs of
hunger, thirst, shelter, sleep etc. How are the remaining needs given by Maslow in his need
hierarchy are satisfied? Explain briefly.

27. Ms. Sushma recently completed her Post Graduate Diploma in Human Resource Management.
A few months from now, a large steel manufacturing company appointed her as its Human
Resource Manager. As of now, the company has 800 persons as employees and has an expansion
plan in hand which may require 80 persons more for various types of additional requirements.
Ms. Sushma has been given complete charge of the company’s Human Resource Department.
Ms. Sushma designed rigorous selection procedure to ensure right person is placed on different
posts.
Explain various steps Ms. Sushma needs to perform during selection of an employee after a
candidate cleared the employment interview and reference checking.

28. Rozar purchased an ISI mark electric iron from ‘Newer Electronics’. While using, he found
that it was not working properly. He approached the seller to complain for the same. The
seller satisfies Rozar by saying that he would ask the manufacturer to replace this iron. The
manufacturer refuses to entertain the complain and ‘Newer Electronics’ decided to file a
complaint in the consumer court. Can ‘Newer Electronics’ do this?
Why? Also, explain ‘who is a consumer’ as per the Consumer Protection Act, 2019.


O
Ankur bought a pack of toothpaste and a toothbrush from a shop. After returning home, he
opened them, discarded the outer pack of both the products and started using them. Explain
the levels of packaging for both products giving reference to their packaging.

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Page 8 Sample Paper 18 CBSE 12th Business Studies

29. Mr. Bothra, wants to start a manufacturing business, approaches you to advise him with
reasons whether the following manufacturing businesses would require large or small working
capital:
(a) Bread
(b) Tea
(c) Air-conditioners
(d) Furniture

30. “Management is both a science as well as an art.” In the light of this statement, explain the
nature of management.


O
Identify and explain the principle of management being violated in the following situations:
(a) When manager grants one month medical leave to a supervisor with pay and only one
week medical leave to an accountant.
(b) When worker is wasting time in search of toolbox in the organisation.

31. (a) “An ideal control technique is the one that checks on every stage in the process of
production.” Comment.
(b) Explain the steps of controlling process after comparison of actual performance with
standard performance.

32. Samir Gupta started a telecommunication company Airways Mobile Private Limited to
manufacture economical mobile phones for the Indian rural market with fifteen employees.
The company did very well in its initial years. As the product was good and marketed well,
the demand of its product went up. To increase production the company decided to recruit
additional employees. Samir Gupta, who was earliest taking all decision for the company had
to selectively disperse the authority. He believed that subordinates are competent, capable, and
resourceful and can assure responsibility for effective implementation of their decisions. This
paid off and the company was not only able to increase its production but also expanded its
product range.
(a) Identify the concept used by Samir Gupta through which he was able to steer his company
to greater heights.
(b) Also explain any three points of importance of this concepts.

33. How are shareholders likely to gain with a loan component in the capital employed? Explain
with a suitable example.


O
Explain any four factors affecting financial decision which determines the amount of profit
earned to be distributed and to be retained in the business.

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Page 9 Sample Paper 18

34. Reena went to the market and purchased 2 litre fruit juice in tetrapack. She did not checked
the information provided on the pack. She fell sick on consuming it as the juice has expired.
She wanted to file a case in the district forum under the Consumer Protection Act but was
denied as she did not fulfilled her responsibilities. Explain different consumer responsibilities
as per the Act.


O
Arjun, after working as a chef in a reputed restaurant, started his business of catering. He gave
the name Dana Pani to his concern and is very particular about the quality of his products. He
advertised his products on different TV channels to make people aware about the services. He
wants to fix prices for his products and services.
Explain the major factors affecting the price mix of a product to him.

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Page 1 Sample Paper 19

Sample Paper 19
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. CapitalGrowth Investments Pvt. Ltd., led by CFO Mr. Vikram Singh, specializes in providing
investment solutions to clients. To fund the company’s expansion, CapitalGrowth conducted a
thorough financial management process. The finance team evaluated various financing decisions,
considering options like issuing new shares, taking bank loans, and using retained earnings.
They determined that a balanced mix of debt and equity would minimize the cost of capital
while maintaining financial stability.
Once the necessary funds were secured, CapitalGrowth allocated resources efficiently across
different projects, ensuring optimal utilization of capital. The finance department diligently
monitored cash flows to maintain liquidity and managed investments to maximize returns while
mitigating risks. Additionally, CapitalGrowth implemented strict working capital management
practices to ensure that daily operations were adequately funded without overextending
resources. Through informed financial decisions and strategic resource allocation, CapitalGrowth
successfully expanded its operations without compromising its financial health.
Which function of financial management is demonstrated by CapitalGrowth Investments Pvt.
Ltd. evaluating options like issuing shares and taking bank loans to fund expansion?
(A) Investment decision (B) Financing decision
(C) Dividend decision (D) Working capital management

2. StarFinance Ltd. operates both in the capital market and the money market. In the capital
market, StarFinance assists companies in issuing long-term securities like bonds and equity
shares to raise capital for expansion projects. Conversely, in the money market, StarFinance
provides short-term financial instruments such as commercial papers and Treasury bills to meet
immediate liquidity needs of businesses. This dual presence allows StarFinance to cater to both
long-term investment needs and short-term financial requirements of its clients.
How does StarFinance Ltd. differentiate its operations in the capital market from the money
market?

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Page 2 Sample Paper 19 CBSE 12th Business Studies

(A) By issuing short-term securities in the capital market and long-term securities in the
money market
(B) By assisting in issuing long-term securities in the capital market and providing short-term
instruments in the money market
(C) By focusing solely on stock trading
(D) By avoiding short-term financial instruments

3. Which function of marketing involves gathering and analyzing information about the target
market?
(A) Pricing
(B) Promotion
(C) Market research
(D) Distribution

4. GlobalTrade Ltd., a multinational company, operates with three levels of management. Top-level
management, led by CEO Mr. Rajesh Kumar, focuses on strategic planning and long-term goals.
Middle-level managers oversee departments like finance, marketing, and operations, translating
strategic plans into actionable tasks. Lower-level managers supervise daily activities and ensure
tasks are completed efficiently. This hierarchical structure ensures clear communication and
effective implementation of company strategies across all levels.
What role does middle-level management play at GlobalTrade Ltd.?
(A) Setting long-term goals
(B) Translating strategic plans into actionable tasks
(C) Supervising daily activities
(D) Making major corporate decisions

5. ‘Harmony, Not Discord’ principle by Taylor emphasizes:

(A) Individualism over teamwork
(B) Conflict is necessary for progress
(C) Peaceful cooperation between management and workers
(D) Ignoring worker grievances

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Page 3 Sample Paper 19

6. HealthGuard Pharmaceuticals ensures compliance with the legal dimension by adhering to

stringent drug safety regulations and obtaining necessary licenses. The company regularly
updates its practices to comply with new laws and industry standards, avoiding legal penalties
and maintaining its reputation. By prioritizing legal compliance, HealthGuard builds trust with
consumers and regulators, facilitating uninterrupted business operations.
How does HealthGuard Pharmaceuticals address the legal dimension of the business environment?
(A) By ignoring regulatory requirements
(B) By adhering to drug safety regulations and obtaining necessary licenses
(C) By reducing product quality
(D) By avoiding legal counsel

7. Assertion (A): Advertising is a paid form of personal communication.

Reason (R): Advertising reaches a large audience through mass media without personal
interaction.
Choose the correct option:
(A) Both A and R are true, but R is not the correct explanation of A.
(B) Both A and R are false.
(C) A is false, but R is true.
(D) Both A and R are true, and R is the correct explanation of A.

8. Innovatech Manufacturing practices delegation by assigning project leads the authority to make
decisions regarding their teams. The elements of delegation include authority, responsibility,
and accountability. Project leads are given the autonomy to manage tasks, while being
accountable for the outcomes. This delegation empowers employees, improves efficiency, and
fosters leadership skills within the organization, leading to enhanced productivity and employee
satisfaction.
Which element of delegation is Innovatech Manufacturing implementing by allowing project
leads to make decisions?
(A) Authority (B) Responsibility
(C) Accountability (D) All of the above

9. Assertion (A): Training and development are interchangeable terms.

Reason (R): Both training and development aim to enhance employee skills and performance.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) Both A and R are incorrect.

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Page 4 Sample Paper 19 CBSE 12th Business Studies

10. During a performance review, Mr. Khan identified that some employees were underperforming
due to lack of clear goals. He introduced SMART (Specific, Measurable, Achievable, Relevant,
Time-bound) goals for each employee, which provided clarity and direction, leading to improved
performance.
What method did Mr. Khan use to improve employee performance?
(A) Implementing laissez-faire leadership (B) Setting SMART goals
(C) Increasing financial incentives (D) Reducing employee responsibilities

11. Read the following statements carefully:

Statement I: Controlling helps in achieving organizational goals by ensuring that activities are
as per plans.
Statement II: An effective control system should be economical and cost-effective.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Factors affecting dividend decisions include earnings, stability of earnings, and
growth opportunities.
Statement II: Legal constraints do not influence a firm’s dividend policy.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in the process of issuing bonds.
1. Determining the bond’s terms
2. Underwriting by investment banks
3. Rating the bond by credit agencies
4. Selling the bonds to investors
(A) 1, 2, 3, 4 (B) 2, 3, 1, 4
(C) 3, 1, 2, 4 (D) 1, 3, 2, 4

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Page 5 Sample Paper 19

14. Match the list I with list II and select correct option.
List I List II
a. Right to Safety i Protection from hazardous goods
b. Right to be Informed ii Knowledge of product quality and price
c. Right to Choose iii Availability of options
d. Right to Consumer Education iv Awareness about consumer rights
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-i, c-ii, d-iv
(C) a-ii, b-iv, c-i, d-iii (D) a-i, b-iii, c-ii, d-iv

15. Regarding ‘Effectiveness’ and ‘Efficiency’ in management, consider the following statements:
1. Effectiveness is concerned with doing the right things to achieve organizational goals.
2. Efficiency means doing tasks correctly with minimum cost and waste.
3. A manager can be efficient but not effective.
4. Effectiveness focuses on resource utilization.
Which of the above statement(s) is/are correct?
(A) 1 and 2 only (B) 1, 2, and 3 only
(C) 2 and 4 only (D) All of the above

16. Identify the function of management illustrated by the picture given above in which the manager
Mr. Modi is discussing about taking some remedial plans of action to stop the downfall in sales
in the coming financial year.

(A) Directing (B) Controlling

(C) Planning (D) Organising

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Page 6 Sample Paper 19 CBSE 12th Business Studies

17. Which of the following statements is correct regarding the economic dimension of the Business
Environment?
(A) It only deals with inflation rates.
(B) It includes factors like GDP, inflation, and exchange rates.
(C) It is unrelated to consumer income levels.
(D) It solely focuses on technological advancements.

18. Which of the following statements about strategies is true?

(A) Strategies are short-term plans.
(B) Strategies outline how to achieve long-term objectives.
(C) Strategies are used only at the operational level.
(D) Strategies eliminate the need for planning.

19. Which of the following is NOT a step in the organizing process?

(A) Identifying activities
(B) Assigning tasks
(C) Establishing relationships
(D) Motivating employees

20. Which statement is not correct about external recruitment sources?

(A) They bring in new skills and perspectives.
(B) They are generally less expensive than internal recruitment.
(C) They include job fairs and employment agencies.
(D) They can help increase workplace diversity.

21. While analyzing their Financial Statements, for the year ended March 31, 2019, Gopal and
Nirmala the partners, discovered that in the current year, operating expenses increased by 5%
against the expected rate of 3%. The investigations revealed that it was due to the increase in
the cost of raw material. They immediately directed their Purchase Manager to find out the
alternative sources of raw material.
(a) Which function of management is being performed?
(b) Discuss any two of its features.

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Page 7 Sample Paper 19

22. Procter and Gamble’s (P and G) philosophy is that it should lead the industry in implementing
a global environmental programme. P&G is one of the first companies in the world to actively
study the influence of consumer products on the environment and introduce concentrated
products, recycled plastic bottles, and refill packages to the industry. P&G contributes to
sustainable development and addresses environmental and social issues connected with its
products and services.
Which Marketing Management philosophy is applied by Procter and Gamble. Elaborate.

23. Romila is running a departmental store keeping a wide variety of stock procured from diverse
companies. Being a management graduate, she knows the importance of inventory management
and hence she follows the system of just-in-time inventory. One day, when the stock of biscuits
and wafers arrived from Roz Stores Private Limited, the Purchase Manager informed that
most of them were either approaching the expiry date or had a damaged package. They called
the Marketing Manager of Roz Stores Private Limited who refused to collect back the stock
and blamed the transportation company. The Purchase Manager asked Romila to approach
the consumer court to get the matter resolved. Can Romila be called a consumer under the
Consumer Protection Act, 2019? Give reason for your answer.


O
Neel bought an electric kettle from an authorized dealer of Sunrise Appliances Ltd. Being
an aware consumer, he also took the cash memo from the seller. The Sunrise Appliances Ltd
offered a warranty of six months. After two months of using the kettle, Neel found that its
automatic shut off switch has stopped working. He approached the dealer who refused to look
into the matter. Neel decided to file a case in the District Commission. State any six remedies
that can be made available to Neel.

24. Discuss the elements of Delegation.

O
Discuss the importance of Decentralization.

25. Saroj, having an experience of over eight years in the cosmetic industry, joined Beauty Pvt Ltd.,
a cosmetic manufacturing firm as a Sales Manager. Inspite of its good quality products and
aggressive promotion, the sales of Beauty Pvt Ltd. were not picking up. Saroj had a team of
highly efficient people working under her. She called a meeting of her team and communicated
them that their goal is to find out how to improve the sales of product and the deadline for
the task is two weeks. They can design the survey questions, choose the platform, and collect
information on their own way. After two weeks, the team will come to her office with the final
results. Thereafter with mutual deliberations and discussions they will reach a conclusion about
the final steps to be taken.
(a) Which leadership style is depicted by Saroj?
(b) Discuss its features.

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Page 8 Sample Paper 19 CBSE 12th Business Studies

26. Define the concept of Financial Planning and list any three points highlighting its importance
for an organization.


O
Discuss any four factors affecting the dividend decision of a firm.

27. The Hotel and Lodging Industry across the world are focused on meeting leisurely needs of their
guests, rather than basic ones, as they are well aware that majority of their guests avails their
facilities to refresh themselves physically and mentally. In doing so, the hotels offer a wide range
of facilities that includes gourmet dining, luxury spas, full-service health clubs with personal
trainers, golf courses, tennis centers, cultural activities and children’s day camps. While this
sector can take the vacation of an individual to a totally different level, but it comes at a price.
Therefore, before finalizing their bookings, the customer always compares the sacrifice they
make in terms of the amount charged by a hotel for the facilities offered by it.
By quoting the lines, identify the features of Marketing.

28. Tez Auto Private Limited, the nation’s largest automobile manufacturer by revenue, had
recently seen its market share in passenger vehicles drop to almost 4% from as high as 14% as
compared to the previous year. On investigation, it was found that although the workers were
quite efficient, but the supervisors who were directly overseeing their activities were not able
to plan properly. The supervisors, like workers, had manual dexterity but lacked the skills to
formulate the plans.
The Production Manager approached the Vice President to discuss the application of one of the
techniques of Taylor that will help them to solve their problem.
Identify and explain the technique that the Production Manager must have suggested.

29. Soly Tiles Private Limited having a strong base in India, aims to expand its area of operation
overseas in the next two years. For this, it will need an investment of `5,000 crores, half of
which will be met through retained earnings and the rest to be arranged from other sources. To
decide the most suitable source of finance, the Vice-President (Finance) called for a meeting of
his team. Considering the stock market conditions and the recession in the economy, the team
knew that it would be difficult to raise funds through equity. Hence, they decided to fulfill it
through the borrowings from financial institutions and issuing of debentures.
(a) State the function of management being performed.
(b) State the steps of the process of the function identified above in part (a) being performed.

30. Name and discuss the concept of the two functions of Marketing that are also called the pillars
of marketing.


O
Ragini received an e-mail from HiFi Pvt Limited, an online retail fashion brand, offering a
discount voucher of `999 on purchases of above `4,000 made before 20th December, 2022.
(a) State the promotional tool used by HiFi Pvt Limited.
(b) Also discuss other tools of promotion.

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31. Airways Carrier Limited, a famous telecommunication company, having its network spread
in India and South Asia, is headed by the Chairman, Mr Rohan Sharma and the Managing
director Ms. Poonam Agrawal. Their India and South Asia operations are headed by their Chief
Operating Officers, Ms. Rohini (India) and Mr. Veer Dua (South Asia). The Chief Operating
Officers are responsible for the profits, revenues and costs incurred in their area of operations
as they have full authority over their respective unit.
(a) Identify the organizational structure adopted by Airways Carrier Limited.
(b) Name the process through which the organization structure is created.
(c) State the steps Airways Carrier Limited must have followed to create the structure
identified in part (a) above.

32. Debt and equity are the two important sources of finance for the firms. The financing decision
taken by the Finance manager is concerned with the decisions about how much funds to be
raised and from which source.
Equity, although is risk less but its excessive use may not add to the value of shareholders.
Debt, on the other hand, has risk associated with it but it is considered as a cheaper source of
finance. Also, the trade-off theory referred to as a balancing act between the cost of debt and
benefits of debt suggests that the advantage of financing with debt is to be balanced with its
cost. However, with the use of debt also, there is a situation when, the EPS of the company
falls with increased use of debt.
(a) What makes debt a cheaper source of finance?
(b) Name and explain the risk that is associated with the use of debt in financing the business.
(c) ‘However, with the use of debt also, there is a situation when, the EPS of the company
falls with increased use of debt.’ Which situation is being referred to?
(d) ‘Equity, although is riskless but still its excessive use may not add to the value of
shareholders.’ In the context of this statement, State the objective of Financial management
that will be violated with excessive use of equity

33. Discuss any four points highlighting the importance of that managerial function which is
concerned with filling and keeping filled the positions in the organisation structure.


O
Discuss the process of that activity through which the best candidates are chosen out of a pool
of applicants for a particular position in an organization.

34. Fast Sports Private Limited, one of the well-known sports brand in the country, wants to be
recognized globally. In this endeavour, the management keeps a vigilant eye on the changes
taking place in the external environment so that their plans can be easily modified as per the
environmental demands. This has ensured success for the organization taking it to great heights.
(a) State the feature of management that is highlighted.
(b) Also discuss three other features of Management.

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Page 10 Sample Paper 19 CBSE 12th Business Studies

O
Latika, the Chief Operating officer of TIY Concrete Private Limited, a cement manufacturing
firm has seen the changes that have come in the goals being pursued by their organization.
While in the past two years they were targeting increasing their customer base, at present
when the markets are showing recessionary trend, especially in the construction segment, their
targets have shifted to managing their expenses and reducing their administrative costs.
(a) State the objective of management that has been referred to in the above case.
(b) Also discuss the other objectives of management.

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Page 1 Sample Paper 20

Sample Paper 20
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. Marks : 80
General Instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.

1. Sparkle Cosmetics Ltd., led by CEO Mr. Rajiv Malhotra, is a well-known brand in the beauty
industry. To ensure high employee performance and motivation, Sparkle implemented effective
directing strategies. The management introduced a recognition program that rewarded employees
for outstanding performance with bonuses and public acknowledgments.
Clear communication channels were established through regular team meetings and updates,
ensuring that all employees were informed about company goals and their roles in achieving
them. Supervisors provided guidance and support, addressing any challenges employees faced
in their tasks. Additionally, Sparkle Cosmetics conducted leadership training for managers to
equip them with skills to inspire and lead their teams effectively.
This focus on motivation and communication fostered a positive work environment, increased
employee engagement, and improved overall organizational performance. As a result, Sparkle
Cosmetics experienced higher productivity, reduced turnover rates, and enhanced customer
satisfaction.
Which element of directing is demonstrated by Sparkle Cosmetics Ltd.’s recognition program
that rewards outstanding performance?
(A) Supervision (B) Motivation
(C) Communication (D) Leadership

2. TechWave Innovations, a leading tech firm, follows a systematic controlling process to ensure
project success. The steps include:
1. Setting Standards: Defining benchmarks for project timelines and quality.
2. Measuring Performance: Tracking actual progress using project management tools.
3. Comparing Performance: Analyzing discrepancies between actual progress and standards.
4. Taking Corrective Action: Implementing solutions to address any deviations.
5. Feedback: Reviewing the effectiveness of corrective actions to improve future performance.
This structured approach ensures that TechWave consistently meets its project goals and
maintains high standards.


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Page 2 Sample Paper 20 CBSE 12th Business Studies

Which step in the controlling process involves implementing solutions to address discrepancies
at TechWave Innovations?
(A) Setting Standards (B) Measuring Performance
(C) Comparing Performance (D) Taking Corrective Action

3. Financial management plays a crucial role in:

(A) Product design (B) Resource allocation
(C) Hiring employees (D) Setting up factories

4. The National Stock Exchange (NSE) serves as a pivotal stock exchange where securities like
stocks, bonds, and derivatives are traded. NSE’s primary functions include facilitating the
buying and selling of securities, ensuring fair and transparent trading practices, and providing
a regulated platform for price discovery. Additionally, NSE offers depository services through
its subsidiary, NSE Depository Services Ltd. (NDSL), which handles the holding and transfer
of securities in dematerialized form, enhancing the efficiency and security of transactions.
Which function is NOT performed by the National Stock Exchange (NSE)?
(A) Facilitating the buying and selling of securities
(B) Ensuring fair and transparent trading practices
(C) Manufacturing financial instruments
(D) Providing depository services for securities

5. What does the term ‘marketing mix’ refer to?

(A) A combination of marketing philosophies
(B) A blend of production and selling efforts
(C) The set of controllable marketing tools used by a company
(D) The mix of customers in a market

6. BrightFuture Education Pvt. Ltd., led by CEO Mr. Sanjay Gupta, efficiently implements
the functions of management. In planning, they set goals for expanding online courses. In
organizing, they structure teams for course development, marketing, and support. Through
staffing, they hire skilled educators and support staff. In directing, they motivate employees
and communicate objectives clearly. For controlling, they monitor course performance and
student feedback to ensure quality and achieve educational outcomes.
Which function of management is BrightFuture Education Pvt. Ltd. performing by setting
goals for expanding online courses?
(A) Organizing (B) Planning
(C) Staffing (D) Controlling

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Page 3 Sample Paper 20

7. Assertion (A): Taylor’s Scientific Management focuses on maximizing productivity.

Reason (R): It emphasizes scientific analysis of work processes.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

8. CashFlow Retailers experienced significant changes during the demonetization event. With the
sudden withdrawal of high-denomination currency notes, the company had to quickly adapt by
enhancing its digital payment systems. CashFlow accelerated the adoption of mobile wallets
and online transactions to maintain sales and customer satisfaction. This shift not only helped
the company navigate the immediate impact of demonetization but also positioned it for long-
term growth in the digital economy.
How did CashFlow Retailers respond to the demonetization event?
(A) By increasing cash transactions
(B) By enhancing digital payment systems like mobile wallets and online transactions
(C) By reducing product prices
(D) By closing physical stores

9. Assertion (A): The principle of Division of Work leads to specialization.

Reason (R): Specialization decreases efficiency among employees.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

10. STU Pharmaceuticals noticed that decision-making was slow as all major decisions were
centralized at the headquarters. To speed up the process, the company decided to decentralize
by empowering branch managers to make decisions related to sales and inventory management.
Question: Which management function is primarily enhanced by decentralizing decision-making
at STU Pharmaceuticals ?
(A) Planning (B) Organizing
(C) Leading (D) Controlling

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Page 4 Sample Paper 20 CBSE 12th Business Studies

11. Read the following statements carefully:

Statement I: External sources of recruitment bring new ideas and skills into the organization.
Statement II: Campus recruitment is an external source of recruitment.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is false, Statement II is true.
(D) Statement II is false, Statement I is true.

12. Read the following statements carefully:

Statement I: Barriers to effective communication can be semantic, psychological, organizational,
or personal.
Statement II: Feedback is not necessary for effective communication.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of steps in variance analysis.

1. Identifying variances
2. Comparing actual performance with standards
3. Analyzing reasons for variances
4. Taking corrective actions
Which of the following sequences is correct?
(A) 2 - 1 - 3 - 4 (B) 1 - 2 - 3 - 4
(C) 2 - 3 - 1 - 4 (D) 2 - 1 - 4 - 3

14. Match the list I with list II and select correct option.
List I List II
a. Working Capital i Long-term funds
b. Capital Budgeting ii Short-term funds
c. Dividend Decision iii Project investment decisions
d. Financial Planning iv Determining dividend payout ratio

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Page 5 Sample Paper 20

Options:
(A) a-ii, b-iii, c-iv, d-i (B) a-iii, b-ii, c-i, d-iv
(C) a-i, b-iv, c-iii, d-ii (D) a-ii, b-i, c-iv, d-iii

15. Statement: Derivatives are complex financial instruments used for various purposes. Which of
the following is/are correct?
1. They can be used for hedging risks.
2. They always guarantee high returns.
3. Their value is derived from an underlying asset.
4. They are traded on exchanges or over-the-counter.
(A) 1 and 3 only (B) 2 and 4 only
(C) 1, 3, and 4 only (D) All of the above

16. Identify the financial decision illustrated by the given picture.

(A) Financing decision

(B) Dividend decision
(C) Investment decision
(D) None of these

17. Which of the following statements about the objectives of management is correct?
(A) Management objectives are limited to profit maximization.
(B) Management objectives include organizational, social, and personal goals.
(C) Management does not concern itself with employee development.
(D) Management’s only objective is to control subordinates.

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Page 6 Sample Paper 20 CBSE 12th Business Studies

18. Which of the following statements correctly describes the principle of Authority and
Responsibility?
(A) Authority should exceed responsibility.
(B) Responsibility should always be avoided.
(C) Authority and responsibility should be balanced for effective management.
(D) Authority is irrelevant in decision-making.

19. Which of the following statements is not correct about the political dimension of the Business
Environment?
(A) It includes government stability and policies.
(B) It involves legal regulations like labor laws.
(C) It deals exclusively with economic factors.
(D) It affects taxation and trade policies.

20. Which of the following statements is not correct regarding the steps in the planning process?
(A) Setting objectives is the first step.
(B) Developing premises comes after setting objectives.
(C) Implementing the plan is the first step.
(D) Evaluating alternatives follows developing premises.

21. What do you mean by business environment scanning?

22. Ramawatar works as superwiser at Rozar electronics Private Limited. He is given the
responsibility of meeting a production target of 500 TV sets in a month. The target can be
completed by placing 70 workers under him. Presently, only 50 workers are working under him.
Ramawatar is not given the authority to employ 20 more workers. As a result, he failed to meet
the target. Explain briefly the reasons for the failure and remedy for it.


O
Oasis Pharma Furniture Limited is a leading furniture company in India. The company chooses
to diversify its operations to capture a wider market. SK Goel, the Managing Director of
the company suggests that it should add handicrafts as an additional product line without
interrupting the existing operations.
(a) What kind of organisational framework would you suggest and why?
(b) State any two limitations of this framework.

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Page 7 Sample Paper 20

23. Distinguish between capital market and money market on the basis of participants, investment
outlay and liquidity.

24. State the steps in the selection procedure, after the employment interview and before the job
offer.


O
State ‘Job Enrichment’ and ‘Employee Participation’ as non-financial incentives. How do they
motivate employees?

25. Why is organising considered as an important function of management?

O
Explain any four points highlighting the importance of planning function of management.

26. ‘Bending the customer according to the product’ and ‘Developing the product according to the
customer needs’ are two important concepts of marketing management. Identify the concepts
and differentiate between the two.

27. It is heartening that the implementation of compliance requirements of the Companies Act,
2013 has progressed substantially with NIFTY 500 companies. Data shows a significant increase
in women’s participation in the top management of Indian Companies from 5% few years ago
to 13% now. Even companies which are not in NIFTY 500 have undertaken drives to increase
women’s participation across different areas of work. The government had also announced that
it would support such companies.
Identify and explain the dimensions of business environment discussed above which brought
about the change.

28. Veer Steels Private Limited is a leading manufacturer of iron and steel in north Delhi. Company
decided to open up a new branch in remote areas in Uttar Pradesh so that unemployed youth
from the rural areas could get the same opportunities as those available in the urban areas.
The company also decided to provide these employees with wage incentive plans linked with
payment of wages based on output. For recruitment and selection of persons, for different posts,
the company gave an advertisement in the local newspaper of that area.
(a) Which source of recruitment is opted for? State its two benefits.
(b) Briefly explain any two other sources of recruitment under same type.

29. “Management is regarded as an Art by some, as Science or as an inexact Science by others. The
truth seems to be somewhere in between.” In the light of this statement, explain the nature of
management.


O
Describe any four reasons for the growing importance of management day-by-day.

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Page 8 Sample Paper 20 CBSE 12th Business Studies

30. Explain the following principles of management with the help of an example:
(a) Scalar chain
(b) Discipline

31. After completing her studies in product design, Sonal wishes to start her own business to design
products to cater to the mobility and communication requirements of persons with special
needs. She told her friend that she wanted to focus on supplying high quality and affordable
products on “no profit - no loss basis”. The Unique Selling Proposition (U.S.P.) of the products
will be sensitivity to the challenges and needs of the differently abled. She has to follow a series
of steps to attain her predetermined objectives.
In the above lines, Sonal has discussed about one of the functions of management. Identify the
function and state its steps in chronological order other than the one discussed in the above
para.

32. You are the finance manager of Grover Cloths Private Limited. The Board of directors have
asked you to determine the working capital requirements for the company. State four factors
that you would take in consideration while determining the requirements of working capital for
the company.


O
How do the following factors affect the fixed capital requirements of a firm?
(a) Scale of operations
(b) Choice of technique
(c) Technology upgradation
(d) Financing alternative

33. Name that element of marketing mix which affects the revenue and profits of a firm. Explain
any five factors which help in determining this element.


O
The Consumer Protection Act, 2019 confers certain rights to consumers with a view to empower
them and protect their interests. Explain these rights.

34. Shivani has established a small scale factory after completing a course in textile designing.
She has tied up with the big home furnishing retail outlets in the city for supplying to them
good quality designer home furnishing products like bed covers, cushions etc. She believes that
controlling without planning is blind. So, every time she gets an order, she sets the standards
in terms of the number of personnel required, the estimated requirements in man-hours per
product, the requirements of direct materials for the projected production and the amount of
normal overhead expenses required at the projected workload. She also keeps a close watch on
the activities so as to ensure that they conform to plans. Whenever the order size is too large,
she hires extra workers by placing a notice on the notice-board of the factory specifying the
details of the jobs available.
Identify and explain the steps of the function of management being performed by Shivani.


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