Please refer to the Class 12 Business Studies Sample Paper below. These CBSE Sample Papers for Class 12 Business Studies have been prepared based on the latest guidelines and examination patterns issued for the current academic year. We have provided Term 1 and Term 2 sample papers with solutions. You can click on the links below and access the free latest CBSE Sample Papers for Business Studies for Standard 12. All guess papers for Business Studies Class 12 have been prepared by expert teachers. You will be able to understand the type of questions which are expected to come in the examinations and get better marks.
CBSE Sample Papers for Class 12 Business Studies
Class 12 Business Studies Sample Paper Term 1 with Solutions Set A
Question. Just after declaration of Lok Sabha Elections 2019 results, the BSE’s Price index (Sensex) rose by 2,100 points in a day. Identify the environment factor which led to the rise.
(a) Political environment
(b) Economic Environment
(c) Social Environment
(d) Legal Environment
Question. Same gearbox can be used in different models of cars of a particular brand. Which of the following techniques of scientific management is highlighted in aforesaid situation?
(c) Method Study
(d) Functional Foremanship
Question. The principles of management have evolved over a time based on repeated experimentation and observation in different types of organizations. However, since management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated. Which aspect of management is highlighted in aforesaid statement?
(a) Management as a science
(b) Management as an art
(c) Management as a science and an art
(d) Management as a profession
Question.“The public sector undertakings have realized that, in order to survive and grow, they will have to be more efficient and generate their own resources for the purpose.” Which impact of government policy change on business has been highlighted in aforesaid statement?
(a) Increasing competition
(b) Need for developing human resources
(c) Market orientation
(d) Loss of budgetary support to the public sector
Question. At times, a business may concentrate more on producing goods with fewer resources i.e., cutting down cost but not achieving the target production. In this case the manager is:
(c) Efficient as well as effective
(d) Neither efficient nor effective
Question. Which is the objective of standardization?
(a) To establish interchange ability to manufactured parts and products
(b) To establish standards of performance of men and machines
(c) To find out one best way of doing a job
(d) Both ( a) and (b)
Question. When the fixed assets are available on rent the need for fixed capital is___________
Question. This is an important document as it is legally enforceable and helps to settle disputes/claims between the ‘investor and the broker’. Identify the term highlighted by this statement:
(a) Demat Account
(b) Financial Management
(c) Contract Note
Question. Which detail is mandatory to open a demat account?
(a) Bank Account Details
(b) Client Code Number
(c) Depository Account Detail
(d) PAN Number
Question. A lending company X has decided to put some constraints on the company Y to which it has extended loan. The constraints are related loan. The constraints are related to the declaring of dividends by the company Y. They have signed a contract which puts restrictions on company Y. So, unless and until it pays back the amount taken from company X it cannot enjoy freedom in this regard.
Which factor affecting dividend decision is highlighted above?
(a) Stock market reaction
(b) Growth opportunities
(d) Contractual constraints
Question. Payal purchased a car for Rs. 20 lakhs from an automobile company and found its engine defective. Despite many complaints, the defect was not rectified. She filed a case in the District Forum. But she was not satisfied with the orders of the District Forum and decided to appeal.
In which highest authority she could appeal if not satisfied again by the decision of the next higher authority.
(a) National Commission
(b) State Commission
(c) Supreme Court
(d) All of these
Question. When is Consumer day celebrated?
(a) 15th March
(b) 10th March
(c) 18th March
(d) 14th March
True and False :
Question. A procedure is a chronological sequence of steps.
Question. Responsibility can be entirely delegated.
Question. Informal organization exhibit more flexibility than the formal organization.
Fill in the blanks :
Question. Infosys recruit candidate from ‘Kirorimal college’ is an example of _______________ method of one of the sources of recruitment. Campus Recruitment
Question.The negative aspect of _____________ incentive is that when the people are assured that their job is secured that may become complacent and lazy. Job Security
Question.______________should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible. Key result areas
Question. The organization satisfies ____________needs by offering challenging jobs, providing good job titles, etc. Esteem
Question. Standards can be set in both ___________as well as ___________ terms. Quantitative, Qualitative
Question. Sparkle Chemicals Works Ltd., manufactures detergent powder and bathing soaps. The company decides to enter into construction business. The company has a competent top management who know there are various challenges in the new industry in which they are stepping into. Still the top managers don’t put in the needed efforts in planning the diversification. Advice the top managers why they should put in the required effort towards planning before taking the decision further?
Answer : Importance of planning
Question. Roasted Coffee Corporation is a coffeehouse chain operating in seven states of India. Through its effective organizational structure, it has grown despite pressure from competitors in the national market. The company has a purchase and production department, supply chain management and logistics department, brand management department and sales department. This structure has facilitated operational efficiency, as employees became specialists within their own realm of expertise. They could be imparted specialized training as the focus was on limited range of skills. Identify the organizational structure of Roasted Coffee Corporation. Also state any two advantages of this structure other than discussed in the above para.
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 four points of importance of this concept
Answer : Functional organization structure
Any two correct advantages
Correct explanation of points of importance
Question. Explain internship training and vestibule training and classify them as on the job and off the job training.
Answer : Correct explanation of methods of training 2 Identification
Question. What is meant by Controlling? Explain any two importance of Controlling.
Answer : Correct meaning, correct importance points
Question. Why it is important to understand and study business environment?
Answer : Correct explanation of points
Question. Briefly explain the positive and negative aspects of type of communication that arises out of employees need to exchange the views.
Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manger, Ms. Kanta was efficiently handling the processing of orders and had a team of fourteen motivated employees working under her. Everything was going on well. Unfortunately she met with an accident. Umang knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as team because the behaviour of Umang Gupta was positive towards the employees of the organization. Hence everyone put in extra time and efforts and the targets were met on time.
Not only this, Umang visited Ms. Kanta and advised her to take sufficient rest.
Identify the leadership style of Umang Gupta and draw a diagram depicting the style and explain its merits (any two).
Answer : Informal communication 2 for merits and 2 for demerits
Democratic leadership style.
Correct diagram and correct explanation of points of merits of it
Question. What is meant by Delegation of Authority? Explain its importance (any three points).
Answer : Correct meaning
Correct explanation of points
Question. Sandy Shows Ltd. is a profitable business venture that arranges local entertainment events. So far the business has run successful pop concerts, sports events and outdoor theatre, all using local people. Sandy Shows Ltd. uses the local football ground for all the events, which costs Rs. 2,00,000 per day to the company.
Lissa, the Operations Manager hires casual labour for cleaning, checking tickets and setting up the stage. The business has its own full time office staff for all of the administration. Local businesses provide catering and sell the tickets for a commission.
Alexendra, the Finance Manager, is ambitious and wants to expand the business into bigger entertainment events. Lissa is less sure about expansion on this scale.
‘Think of the economies of scale,’ said Alexendra. ‘We will also be able to charge much more for the tickets!’
The business faced a major problems on account of more and more events. The first is its staff. As the business has become more successful, the workload on the office staff has increased. All the staff members are unhappy about working long hours without extra pay. ‘Well they get free tickets for the shows’, said Alexendra. ‘I’m fed up with their complaints. If they don’t like it they can go and work in the local supermarket – they’ll earn more!’ This worried Lissa, as the problem would get worse if the business expanded into bigger entertainment events.
On the basis of the given information about Sandy Shows Ltd. answer the following question:
Identify and explain the methods for improving staff motivation at Sandy Shows Ltd.
Mr. John is working as the Human Resource Consultant in Blue Horizon Pvt. Ltd. The company manufactures squashes and soft drinks. The company is facing a problem of high employee turnover due to which the production and supply situation of its product has been on decline. The personnel manager of the company asks Mr. John to look into the problem of employee turnover.
On analyzing the situation Mr. John suggests that the good employees of the organization should be rewarded in a manner that creates feeling of ownership among the employees and thus motivates them to contribute their best towards the organizational goals.
On the basis of the given information about Mr. John, the Human resource Consultant in Blue Horizon Pvt. Ltd., answer the following questions:
(a) Identify and explain the incentive that has been suggested by Mr. John.
(b) Also, explain any three other incentives of the same category.
Answer : (i) Productivity linked wage incentives
(iii) Profit sharing
(iv) Co-partnership/ Stock option
Any other correct point with explanation
(a) Co-partnership/ Stock option
(b) any other correct points with explanation
Question. As a project work in Business Studies subject, the Commerce students of ‘Knowledge School’ thought of setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise books to be used by the school students. They approached their Principal who not only appreciated the idea of the students but also gave them consent for the same. The school also decided to donate 50% of the revenue generated from the sale of registers and exercise books to a nearby blind school.
(i) State the product related decisions which the children have to take?
(ii) Suggest any three factors the children should keep in mind while choosing the right name for their exercise books and registers.
Answer : (i) Branding, Labelling, Packaging
(ii) Short, Simple, Unique
Question. Sumit purchased as ISI market washing machine of a famous brand ‘MG’ from TG Electronics Ltd. The shopkeeper asked him to wait for two days for installation of the machine. His friend, Vivek was very fond of experimenting with new electronics products. He told Sumit that there is no need to wait for the company’s representative to install the machine and that he could do it. So, both of them installed machine without following the manufacturer instructions. Initially the machine worked effectively and the wash was good. But after two days the machine started stopping in between the wash cycle. Sumit and Vivek tried their best to start the machine but failed in their efforts. Sumit therefore, approached TG Electronics Ltd. which refused to provide any service on the plea that the installation of the machine was not done by the company.
(a) State the responsibility which Sumit had to fulfill as an aware consumer to get the services of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified in part (a).
Answer : (a) Responsibility – Aware consumer to get the services of the company is learn about the risk associated with products and services, follow manufacturer’s instructions and uses the product safety.
(b)Two rights – Right to Heard, Right to seek redressal
Question. State whether the working capital requirements of business manufacturing the following items are less and more:
Justify your statement (a)Milk (b)Steel (c)Room Coolers (d)Industrial Boilers (e)Sign boards manufacturing against orders.
‘G Motors’ is the manufacturer of sophisticated cranes. The Production manager of the company, reported to the Chief Executive Officer, Ashish Jain that one of the machines used in manufacturing sophisticated cranes had to the replaced to complete in the market, as other competitors were using automatic machines for manufacturing cranes. After a detailed analysis, it was decided to purchase a new automatic machine having the latest technology. It was decided to purchase a new automatic machine having the latest technology. It was also decided to finance this machine through long term sources of finance. Ashish Jain compared various machines and decided to invest in the machine which would yield the maximum returns to its investors.
(a) Identify the financial decision taken by Ashish Jain.
(b) Explain any three factors affecting the decision identified in (a) above.
Answer : (a) less (b) more (c) more (d) more (e) less
(a) Long term investment decision
(b) Correct explanation of these Factors-
Cash flows of the project, the rate of return, the investment criteria involved
Question. Spectra Ltd. is a highly reputed company having many employees performing different functions at different levels. A clear hierarchy exists between people and they are bound by it while performing their diverse tasks.
Ms. Ananya is responsible for deciding the overall goals and objectives of the organization and ensures the welfare and survival of the organization.
Mr. Shetty ensures the upkeep and maintenance of machinery and tools, takes care of the quality of output and prevents any wastage of materials. He also makes sure that safety standards are maintained.
Ms. Rita assigns necessary duties and the responsibilities to the personnel. She motivates then to achieve targets. Also decides about departmental targets.
At which levels of management are Ms. Ananya, Mr. Shetty and Ms. Rita working? Explain two functions of each level.
Thomas is working as a manager of United Bearings Ltd. He has the authority to make purchases for the organization and also to appoint employees.
Thomas misuses his authority and grants an order of office stationery to his brother’s concern while the same products were available at a cheaper rate with other suppliers.
While appointing two office executives he gives preference to Michael over Mamta because Michael is a Christian. Like Thomas himself is and also because he prefers male employees over females.
Thomas also has a habit of not letting the employees put forward any suggestions for improvement in work and productivity. He expects them to just follow his orders. Employees are also dissatisfied as they don’t get fair wages for the work they put in.
The production activities of United Bearings ltd. lead to water pollution as the waste from the factory is disposed off in the nearby river.
On the basis of the given information about United Bearings Ltd. answer the following question.
Identify an explain various principles of management that are being violated in United Bearings Ltd., by quoting the relevant lines from the case to support your answer
Answer : (i) Ms. Ananya is at Top level
(ii) Mr. Shetty is at lower level
(iii) Ms. Rita is at Middle level
Correct explanation of their functions
(i) Subordination of individual interest to general interest
(iv) Remuneration of employees
Question. Divi’s Laboratories is manufacturing medicines. The company has reported highest profit ever of Rs. 3.2 billions in 2016, up by 41% as compared to profits of last year. For 2017, Divi’s sales have grown by 21% to Rs. 37.1 billions as compared tp 2016. The result indicates consistent growth in company’s profits and sales figures year after year. Divi’s is undertaking aggressive capital expenditure plan of Rs. 11 billions over next 2 years at new site at Kakinada. Entire capital expenditure is being funded through internal cash accruals. Company’s cash reserves are high enough to meet the requirements of capital expenditure, revenue expenditure and regular payouts to shareholders to meet shareholders preferences. Strong apex programme is indicate of future growth potential in custom manufacturing for Divi’s Management expects revenues to grow by 15% in 2018 as key focus remains on capacity expansion plans. The company is fully compliant with all regulatory requirements and restrictions.
The above discussion about the company leads to various factors which decide how much of profits should be retained by the company and how much to be distributed. Quoting the lines from above passage, identify and explain any four such factors.
Answer : Dividends Decision
Correct explanation of points of factors affecting dividend decision
Question. Shivam bought pain relieving ointment after seeing it being displayed in the chemist’s shop. The ointment tube was packed in a cardboard box. The tubes were received by the chemist from the wholesaler in corrugated boxes containing 20 units.
Identify and explain the different levels of packaging of the pain relieving medicine and explain its functions.
Aryaman, a class XII student was in need of a ball-pen. He went to the nearest stationery shop. The shopkeeper showed him a wide variety of ball-pens having of different prices. He selected a pen and paid Rs. 250, the maximum retail price, and took the cash memo for the same. Aryaman felt dissatisfied on using the pen as its performance doesn’t matched his expectation. On the basis of the given information about Aryaman, answer the following questions:
(a) Identify the right exercised by Aryaman in above case.
(b) Identify the right that empowers a consumer to file a complaint and to be heard in case of dissatisfaction with a good or a service.
(c) Briefly explain the importance of consumer protection from the view point of consumer.
Answer : Levels of packaging:
Primary Packaging, Secondary and Transportation packaging
Correct explanation of functions of packaging
a) Right to choose
b) Right to be heard
c) Consumer protection importance