[Latest] Best 15+ CBSE Business Studies Sample Question Paper Class 12

Business Studies Sample Paper Class 12

1. The revenue of Khazana Ltd. has nearly doubled in the last three years. However, due to huge production costs, the company is not making any profits. Considering the financial situation of the company, the management has decided not to declare any dividends. This makes Khazana Ltd. Shareholders are not very comfortable. Is the shareholders’ reaction appropriate in this situation? Choose the correct answer.

(A) Yes. Management does not have the right to decide whether to declare dividends. This right is with the shareholders.

(B) No. The management is right in not declaring dividend since the company will need cash to meet the huge

(C) Yes. The revenue of the company has doubled and hence dividend should be given to the shareholders.

(D) No. The management is right in not declaring a dividend since the company does not have any profits.

2. Many people confuse selling for marketing. Marketing involves a whole range of activities that analyze and implement a customer’s needs.

Given the context choose the option which would fall in the definition of marketing.

(A) ABC & Co. has priced its product at 20% discount.

(B) ABC & Co. is targeting to reduce its cost of production.

(C) ABC & Co. has hired a new finance manager to track costs.

(D) ABC & Co. has appointed two agents who will help in selling the product.

3. Brahma & Co. offers a special Diwali campaign to its customers. The marketing and graphics team created a brochure that could be shared with customers on social media.

Which business environment does this event cover?

(A) Legal and social

(C) Technological and legal

(B) Political and social

(D) Technological and social

4. Which of the following statements about sales promotion is correct ?

(A) The refund is giving back a part of the price paid by the customer.

(B) Discount means lowering the price of new products to increase awareness.

(C) Discount means offering products at a special price to eliminate overstock.

(D) Multiple gift means giving other products as a gift when purchasing these products.

5. Arrange the steps in the stock exchange in the correct order:

(i) Order processing

(iii) Order place

(ii) Opening Demat account

(iv) Order execution

(A) (ii): (iv): (iii); (i)

(B) (ii); (I); (iii); (ii)

(C) (ii); (iii); (iv); (i)

(D) (iii); (ii); (iv): (i)

6. Which characteristic of the business environment is highlighted when changes are taking place too frequently and it becomes difficult to predict the future?

a). Uncertainty

b). Complexity

c). Inter-relatedness

d). Relativity

7. If bank is for money, then depositories are for ————-

(A) cheques

(B) securities

(C) fixed deposits

(D) physical assets like gold

8. Raman and Vasudev are two employees who steal public money from the import-export company they work for in Varanasi. The company’s finance manager, Sampat Singh, became suspicious of the two employees when he noticed that their activities were not going as planned.

He installed a software program that secretly recorded every touch of the suspect’s computer key and sent an email report to the cyber police. The police caught two corrupt workers red-handed and arrested them. Review the management functions discussed above.

(A) Personnel

(C) Management

(B) Collaboration

(D) Organization

9. ———- One of the most important decisions in the business world is inventory management.

(A) Brand

(C) Promotion

(B) Price

(D) Logistics

10. Read the following statements: claim (A) and reason (R). Choose the correct option from the following:

Assertion (A): Management is a weak function and needs to be adjusted to change.

Reason (R): Management results are the results of an organization achieving its goals as planned.

Alternative:

(A) Both the Assertion (A) and the reason (R) are true, the Reason (R) being the correct explanation of the known claim (A).

(B) The Assertion (A) and the reason (R) are both true, but the reason (R) is not the truth of the claim (A).

(C) Assertion (A) is true but Reason (R) is false.

(D) Assertion (A) is false but Reason (R) is true.

11. Decision-making authority in a company belongs to the top management. How can we talk clearly about the organizational structure?

(A) Integration

(B) Diversification

(C) Centralization

(D) Decentralization

12. A big task for ECB Advisors is to work behind schedule. This keeps its customers unhappy and can affect the company’s reputation in the long run. No managerial action like assigning more workers, equipment or giving overtime has been able to solve the problem.

What step should management of the company take now to avoid this situation in the future?

(A) Revise the schedule.

(B) Providing additional personnel and materials for the project

(C) Obtaining authority to work overtime.

(D) (B) and (C) Both

13. Statement-I: Transportation helps in creating energy time and storage helps in creating energy space.

Statement-II: The process of dividing objects into groups according to their main features is called standardization.

Select true from the following options:

(A) Statement I is true and II is false. (B) Statement II is true, I is false.

(C) Both of these statements are correct.

(D) Both statements are false.

14. The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering.

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering.

The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising

Identify the feature of Business Environment which the Coca-Cola Company managed to get in their favor

(A) Complex

(B) Specific and general forces

(D) Mental exercise

(C) Futuristic

15. Name the concept which explains the manner in which decision-making responsibilities are divided among hierarchical levels.

(A) Organizational structure

(B) Span of management

(C) Delegation

(D) Decentralization

16. Statement I: The market price of equity share increases, if the benefit from a decision exceeds the cost involved.

Statement II: All financial decisions aim at ensuring that each decision is efficient and adds some value.

Choose the correct option from options given below:

(A) Statement I is correct and statement II is wrong.

(B) Statement II is correct and statement I is wrong.

(C) Both the statements are correct.

(D) Both the statements are wrong.

17. “Global stock indices have fallen on account of the pandemic.”

The above statement DIRECTLY falls under which dimension of the business environment?

(A) Legal environment

(B) Social environment

(C) Economic environment

(D) Technological environment

19. Which of the following management styles was suggested by Fredrick Winslow Taylor instead of rule of thumb

(A) Planned management

(B) Scientific management

(C) Organized management

(D) Systematic management

20. What kind of business environment stands out when there is a lot of change and it is difficult to predict the future?

(A) Uncertainty

(B) Complexity

(C) Relativity

(D) Inter-relatedness

21. Mita owns a premium ice cream business called Smart Flavors in Bikaner. The ice cream he makes is delicious. She makes his ice cream from fresh milk and there are many flavors and fillings to choose from. She sets business goals and keeps them the same in mind in order to ensure that the customers will come back for purchasing.

Business is going well with the first mover advantage. He began cutting costs to make more money. This sometimes causes delivery to be delayed and the ice cream not reaching the store on time. 

After a while, the demand for its ice cream fell and competitors entered the market. Some of its business was lost to competitors. She received orders for the supply of 4,000 different packages of ice cream for a special occasion at the beginning of the summer. She employs more workers to make sure jobs are completed and orders are delivered on time.

Therefore, it is possible to produce and deliver ice cream packages, but the production costs are very high. Mita realized that while completing tasks and completing tasks assigned to her to achieve goals, she was ignoring one of the important aspects of management.

Find the aspect of management that Mita ignored. The same situation can also be explained with the help of examples

22. Controlling will be more effective if the plan is based on reality. Check out the statement based on the relationship between planning and management.

Or

Explain “Management by exception” with respect to analyzing deviations, a step in the process of controlling. Give a suitable example.

23. Mrs.Renuka Singh is the principal of a prestigious school in New Delhi. There is a vacancy for a headmaster at the school. Senior teachers at the school believe that only internal candidates should be considered for the job. But Mrs.Singh and the management would like to invite applications from external sources too. 

Briefly explain three reasons why management may have been able to persuade employees

to invite outside candidates to apply to employees in the past.

24. Mention any three protective functions of SEBI.

Or

What does “financial management” mean? State the main purpose of financial management.

25. State any four barriers to communication which are related to authority relationships, rules and regulations of the company.

Or

State any four barriers to communication which are concerned with problems and obstructions in the process of encoding and decoding the message into words or impressions.

26. Name the mechanism that attempts to measure certain characteristics of individuals in the process of identifying and choosing the best person out of the number of prospective candidates for the job. Enumerate any three of its types.

OR

Explain briefly ‘transfers’ and ‘promotions as internal sources of recruitment.

27. Rajneesh purchased a 500 ml bottle of fruit juice for Rs.60 in Ahmedabad from a local store. While consuming it, he found an insect floating in it. He sent a legal notice to the company immediately and decided to approach a Consumer Redressal Agency for a relief of ₹ 2 lakh.

(i) Which Consumer Dispute Redressal Agency did Rajneesh approach out of the three-tier machinery set up under Consumer Protection Act, 2019 for redressal?

(ii) If Rajneesh is not satisfied by the order of the above Agency, where can he appeal against such order and within how many days?

(iii) State any two relief that can be granted to Rajneesh in the above case.

28. Explain the following factors affecting financing decision

(i) Cost of capital

(ii) Cash flow position of business

(iii) Level of fixed operating cost

(iv) Control considerations

29. Identify and state the element of directing in the following cases:

(i) Tina, the manager, sends an e-mail to all the employees asking them to come to a meeting at 4:00 pm.

(ii) Rahul sees that his employee Astha is not working efficiently. He promises her incentives if she improves her work.

(iii) Anita directs her employee Hemant to work on the new project.

(iv) Manju tells her employee Harshita to start working properly or else she will be fired from her job.

30. Saksham Ltd., a firm manufacturing textile, wished to diversify its business. They were considering two options, either to diversify into manufacturing toothpaste or switches.

They wanted to invest in the purchase of land, to set up a manufacturing unit in the backward areas of Gujarat, which would also lead to the generation of employment opportunities in the area, but only after fulfilling all legal requirements and taking appropriate steps to ensure that the environment was not polluted.

The finance manager of the company, Mr. Ramakant was asked by the management to prepare a report on the factors which should be considered while making the above investment decision.

(i) State any two factors that Mr. Ramakant would give in his report.

(ii) Also state any two reasons which makes it important for the above decisions to be made carefully.

31. (i) Explain any two of the following principles of management as given by E.W. Taylor:

(a) Science Not Rule of Thumb

(b) Harmony not discord

(c) Maximum not Restricted Output

(ii) Differentiate between Time Study and Motion Study.

OR

(i) Explain any two of the following principles of management as given by Henry Fayol

(a) Subordination of Individual Interest to General Interest

(b) Remuneration of Persons

(c) Centralisation and Decentralisation

(ii) Differentiate between authority and responsibility on any three bases.

32. The pros and cons of each alternative need to be weighed.’ Name and briefly explain the logical steps in the process of planning which are followed by a manager before performing the step highlighted in the above statement.

OR

Briefly explain the next three steps in the process of planning which the manager will have to follow after using conjecture about what might happen in the future.

33. Read the statement given in point (i) and (ii) and answer the questions that follows:

(i) Sona has built a very big brand and now every customer needs the brand as created by Sona.

(a) Identify and explain the function of marketing that enables Sona to build a brand.

(b) State any two benefits that the marketer gets from the function.

(ii) The design of the product of Anupama Ltd. is very attractive and the consumer buys their product because of that.

Final Words

From the above article you have have learnt class 12 business studies sample paper. This business Studies Sample paper class 12 will certainly help you for final exam.