CBSE Class 12 Business Studies Important Questions 2027 (Repeated in Board Exams)

Identify which of the following functions is Not performed by 'Top Level Management': (A) Cooperating with other departments for smooth functioning of the organisation. (B) Being responsible for the welfare and survival of the organization. (C) Analyzing the business environment and its implications for the survival of the firm. (D) Formulating overall organizational goals and strategies for their achievement.

The process by which a manager synchronizes the activities of different departments is known as: (A) Management (B) Planning (C) Organising (D) Co-ordination

The project managers in an organisation set targets for the upcoming months and outline strategies to achieve them. At the same time, they assign specific roles and responsibilities to their team members. They motivate them to meet the deadline, by celebrating their achievements and taking their feedback. Thus, various functions are simultaneously performed by all managers all the time. Name the characteristic of Management discussed above. a) Management is a dynamic function b) Management is a continuous process c) Management is an intangible force d) Management is goal oriented

Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalised and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations. The aspect of the nature of management highlighted in the above case is: (A) Management as an Art (B) Management as a Science (C) Management as a Profession (D) Management both as a Science and as a Profession

(b) 'Objectives of Management can be classified into organisational, social and personal objectives.' Explain these objectives.

__________ refers to doing the task correctly and with minimum cost. (A) Effectiveness (B) Coordination (C) Process (D) Efficiency

Identify the incorrect statement with respect to 'Motion Study', as a technique of scientific management: (A) Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently. (B) It refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job. (C) Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use. (D) This technique helps to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

(b) Explain the following principles of General Management: (i) Unity of Command (ii) Esprit De Corps (iii) Stability of Personnel

Henri Fayol's principle of discipline which emphasizes obedience to organisational rules and employment agreement, is evolved out of the experience and collective wisdom of managers. The nature of principle of management reflected through the above statement is: a) Universal applicability b) Flexible c) Mainly behavioral d) Formed by practice and experimentation

'Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment.' The feature of business environment highlighted above is: (A) Relativity (B) Uncertainty (C) Complexity (D) Dynamic Nature

Green-Eats is a start-up offering plant based meal kits. It gained popularity as more young consumers were becoming health conscious and awareness about environmental issues was increasing day-by-day. To promote sustainable eating, they collaborated with schools and colleges and organized workshops for them. Identify the element of business environment highlighted in the above case: (A) Economic Environment (B) Social Environment (C) Political Environment (D) Technological Environment

Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta always believed in understanding the business environment as well as responding and adapting to it. When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects. The point of importance of Business Environment discussed above is: (A) Tapping useful resources. (B) Identifying threats and early warning signals (C) Improving performance (D) Identifying opportunities and getting first mover advantage.

'High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees etc.' The dimension of business environment referred to above is: (A) Political Environment (B) Technological Environment (C) Social Environment (D) Economic Environment

Greener Organic is a company producing eco-friendly fertilizers and soil boosters. With the growing interest in organic farming, the company is planning to expand its operations across India. Greener sets its target to increase its sales by 25% in the next year. This gave all departments - sales, production, marketing and logistics - a common target to work. To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups. They also plan to promote their brand through on-line campaigns focused on eco-friendly farming. The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers. This would improve quality, support local people and build trust with customers. The company allocated Rs 50 lakhs for marketing, which included funds for regional newspaper advertisements, digital marketing, promotional events and dealer incentives. By quantifying future facts and figures, the company planned to control costs and evaluate performance. Identify and explain any four type of plans discussed in the above case.

(a) Explain the following limitations of planning: (i) Planning leads to rigidity (ii) Planning may not work in a dynamic environment

Explain why planning is considered as a) pervasive b) futuristic function of management.

(a) Explain the following points of importance of 'Planning' function of management: (i) Planning provides directions. (ii) Planning promotes innovative ideas. (iii) Planning reduces the risk of uncertainty.

Malini and Shalini recently completed their web designing course from a reputed University in Mumbai. Malini opened her own website development company 'Rapid Software Private Limited'. In order to ensure a smooth flow of communication and better control over the operations of her business, she divided the entire work of a company into four departments i.e web designing, accounting, research and development and customer service. All departments are required to report to a coordinating head. The company became successful in the market as all operations were carried out with a high degree of specialisation. Shalini joined a big group named Babylon.com, Inc. which offered a variety of services like Babylon Web Services, Babylon Prime, Babylon Retail. She was appointed as the head of Babylon Web Services division and was made responsible for the profit or loss of her service division. She was happy to take the responsibility as the division would function as an autonomous unit, thus enabling her to make faster decisions. (a) Identify the types of the framework within which managerial and operating tasks are performed, in the organisations, of which, Malini and Shalini were a part of. (b) Give any four differences between the frameworks identified above.

(b) Explain the following points of importance of Decentralisation: (i) Develops initiative among subordinates (ii) Develops managerial talent for the future.

Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged food products. It's operations are divided into five main departments - Production, Marketing, Finance, Human Resources and Research and Development. Each department has its own head and a team that focuses only on the work related to their department. This promotes efficiency in utilization of manpower as employees perform similar tasks within a department and are able to improve performance. This also helps in increasing managerial and operational efficiency and results in increased profit. Since each department handles a narrow range of tasks and focus is on a limited range of skills, it is easier to train new employees. (i) Identify the organization structure followed by Fresh Foods Pvt. Ltd. (ii) Also state three advantages of the structure identified in (i) above not discussed in the given case.

'Royal Glaze Ltd.' continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure - 'Foods' and 'Home Care'. Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future. (i) Identify the organisational structure of 'Royal Glaze Ltd'. (ii) Draw the organisational structure chart of 'Royal Glaze Ltd.' considering its future plans to enter into Electronics segment. (iii) State any three advantages of the type of organisational structure drawn in (ii) above.

Identify and explain the external source of recruitment discussed in each of the following cases: (i) Veer Infrastructure Pvt. Ltd. was handling the construction of a government hospital building in Unedabad. During the monsoon season, the project was delayed and there was a sudden rush of work to meet the deadline. The site supervisor placed a notice at the entrance of the construction site stating "Daily wage labourers needed for 15 days. Report with Identity Proof on Monday at 9:00 A.M. Preference for workers with experience in masonry or carrying materials". (ii) Vista Bank planned to expand its retail banking operations in Tier-2 and Tier-3 cities. They needed to hire over 200 middle-level managers with experience in sales, customer service and operations. Vista Bank approached 'Avon Consultants', one of India's leading management consultancy firms. 'Avon Consultants' advertised positions on job portals under their own name and also accessed its database of experienced professionals across India. After extensive screening, they shortlisted and forwarded qualified candidates to Vista Bank.

(b) Explain 'Placement and Orientation' and 'Performance Appraisal' as steps in the process of 'Staffing' function of management.

Shiwakumar runs a legal consultancy firm in Chhattisgarh. Whenever the firm hires new employees, on the first day of joining, they are welcomed to the organisation and are given details about the dress code, lunch timings, introduction to daily operations and fellow colleagues. They are also familiarised with the organisational policies and procedures, emergency exits, evacuation procedure, etc. Name the type of training which is provided by Shiwakumar in his firm. A. Apprenticeship training B. Vestibule training C. Induction training D. Internship training

Since jobs have become more complex, the importance of employee training has increased. Training programmes provide numerous benefits to workers. Explain any four points that support this statement.

Name the step in the staffing process which enables the organizations to offer opportunities for career advancement to their employees by facilitating learning, thereby helping the organisations to not only attract but also retain its talented people in the organisation. a. Placement and Orientation b. Recruitment c. Training and Development d. Performance Appraisal

PP Motors is a reputed automobile company known for manufacturing high performance four wheelers. The company plans to hire eight new engineers. Akhilesh Banerjee, the Human Resource Manager has eliminated unfit job seekers based on the information supplied in the application forms, conducted various tests and interviews and verified the information of the applicants. Identify and explain the remaining steps that Mr Banerjee must undertake in order to ensure that the organisation gets the best among the available, from the pool of prospective job candidates.

(a) State any four limitations of internal sources of recruitment.

In order to streamline the selection procedure, so as to minimise the margin of errors, certain tests are carried out that attempt to measure the characteristics of individuals. Explain any four such tests.

(b) State any four benefits of staffing to the organization.

Arrange the following elements of communication process in the correct sequence: i) Media ii) Message iii) Sender iv) Decoding v) Receiver vi) Feedback vii) Encoding. Choose the correct option: a) iii,i,vii,ii,v,iv,vi b) iii,ii,vii,i,iv,v,vi c) ii,iii,vii,vi,iv,v,i d) ii,i,vii,iii,v,iv,vi

Read the following statements: Assertion (A) and Reason (R). ASSERTION(A): Maslow's need hierarchy theory of motivation is widely recognised and appreciated yet criticised. REASON(R): Even though Maslow's theory focuses on needs as a basis of motivation and helps to develop understanding about the motivation phenomenon, his propositions are questioned on their classification and hierarchy. Alternatives: (a) Both Assertion (A) and Reason (R) are true. (b) Both Assertion (A) and Reason (R) are false. (c) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion. (d) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion.

Mr Pankaj Kumar is working as the Human Resource Manager in Alankaar Fabrics Limited heading a team of fifteen people in his department. He has played a key role in the success of his organisation by maintaining good interpersonal relations with his subordinates and influencing their behaviour. The subordinates willingly cooperate with him and his working style to increase the output of the organisation. a) Identify and explain the element involved in one of the functions of management discussed in the above case. b) State any four features of the element identified in part a).

(b) Explain any four points of importance of directing function of management.

(a) Explain any four semantic barriers to communication.

Match the non-financial incentives given in Column I with their meaning given in Column II: Column I - a. Employee participation, b. Organisational climate, c. Employee empowerment, d. Status. Column II - (i) It indicates the characteristics which describe an organization and distinguish one organization from the other. (ii) It means ranking of positions in the organisation. (iii) It means giving more autonomy and powers to subordinates. (iv) It means involving employees in decision making of the issues related to them. (A) a-ii, b-iii, c-i, d-iv (B) a-i, b-iv, c-ii, d-iii (C) a-iv, b-i, c-iii, d-ii (D) a-iii, b-ii, c-iv, d-i

The question mark in the picture given below represents a financial incentive. Identify the incentive [picture shows Company-Provided Housing, Salary, Education to Children, Car Allowance, Medical Aid]: (A) Pay and allowances (B) Retirement benefits (C) Productivity linked wage incentives (D) Perquisites. [For Visually Impaired Candidates: Authority, responsibility, rewards, perquisites and prestige of job etc. indicate which of the following non-financial incentives given to a person holding a managerial position? (A) Job Enrichment (B) Job security (C) Status (D) Organisational climate]

'A good control system helps the organisation in various ways'. State any four points to support the statement.

Choose the correct statement about the controlling function of management. a) No corrective action is required when the deviation goes beyond the acceptable range in important areas. b) Deviations should be analysed for their causes. c) Measurement of actual performance should be done only after the task is complete. d) Managers must keep a check on each and every activity, otherwise the entire organisation may suffer.

There are two statements, Assertion (A) and Reason (R). Assertion (A): Controlling should not be misunderstood as the last function of management. Reason (R): Controlling is a function that brings the management cycle back to the planning function. Choose the correct alternative from those given below: (A) Assertion (A) is false and Reason (R) is true. (B) Both Assertion (A) and Reason (R) are false. (C) Assertion (A) is true and Reason (R) is false. (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Umang was working as a 'Production Manager' at 'LG Papers Ltd.' The company had launched new eco-friendly paper straws in the market. He was given a target of producing 5,000 straws a day, by the General Manager. In spite of making the employees work overtime, Umang could not meet the target. On investigation, it was found that the employees had not received the right training to manufacture these eco-friendly paper straws. So the employees were sent for special training. The function of management which helped Umang in identifying that he could not meet the target is: (a) Planning (b) Organising (c) Directing (d) Controlling

There are two statements, Assertion (A) and Reason (R). Assertion (A): The dividend in growth companies is more than that in the non-growth companies. Reason (R): Companies having good growth opportunities retain more money out of their earnings so as to finance the required investment. Choose the correct alternative from those given below: (A) Assertion (A) is false and Reason (R) is true. (B) Both Assertion (A) and Reason (R) are false. (C) Assertion (A) is true and Reason (R) is false. (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Alka Motors is one of the leading automobile companies in India. Due to growing demand for electric vehicles, Alka Motors planned to expand its business and for this, it wanted to raise funds. The finance manager suggested that it should raise funds through equity as the market was bullish. As per the suggestion of finance manager, the company decided to raise Rs 3,500 crore from equity for its expansion plan for electric vehicles. The factor that the finance manager took into consideration to raise funds through equity was: (A) Cash flow position (B) Flexibility (C) Cost of debt (D) Stock-market conditions

Satya Prakash has been successfully running a dry fruit wholesale business in Rajasthan for the past five years. He makes sufficient investments in current assets in order to facilitate smooth day-to-day operations of the business. The company has recently sold dry fruits worth Rs 50 lakhs to one of its corporate customers, 'Deshmukh Pure Grains' on a strict credit policy. Satya Prakash then immediately placed an additional order for replenishment of stock. However, he received the dry fruits from his supplier after a large time lag. a) State the concept of Financial Management discussed above. b) Briefly explain the factors highlighted above that will affect the requirement of the concept identified in part a).

'Game of Clones', a reputed amusement company has decided to run an advertising campaign for which it is hiring various celebrities. The campaign involves an expenditure of Rs 150 Crores. Identify the financial decision involved in the above case. a. Long term investment decision b. Financing decision c. Working capital decision d. Dividend decision

The process of estimating the fund requirements of a business and specifying the sources of funds is called ______. (A) Trading on Equity (B) Capital Budgeting decision (C) Financial Management (D) Financial Planning

Read the following statements carefully: Statement I- The objective of financial management is to maximize the wealth of directors of the company. Statement II- The financing decision of the company is unaffected by the extent of retained earnings. Choose the correct alternative: (a) Both the statements are true. (b) Both the statements are false. (c) Statement I is true, Statement II is false. (d) Statement II is true, Statement I is false.

'Freshju' is a trading company, selling bottled juices made by other manufacturers. Now, it planned to sell its juices across India. For this, 'Freshju' decided to enter into 'Juice manufacturing'. It also has ambitious plans to export its juices to other countries in the future. To meet anticipated higher demand in future, the company set-up a larger manufacturing unit. The Chief Executive Officer, Ravinder, ordered automatic juice-filling and bottling machines to increase speed, improve hygiene and for consistency in production. Since the investment was huge, instead of buying all new machinery 'Freshju' took some expensive machines on lease. They also collaborated with a nearby packaging unit to use their packing machines during peak-season. This helped 'Freshju' to manage seasonal surges in demand without investing in additional equipment that would remain underutilized during off season. Quoting lines from the above, identify and explain any four factors that will affect the fixed capital requirements of 'Freshju'.

From the following information regarding Aditya Ltd. which is in the business of manufacturing green tea, calculate the Return on Investment and Interest Coverage Ratio of the company: (Show working) Earning before interest and tax Rs 15,00,000; 10% debentures Rs 12,00,000; Equity Share Capital (Rs 10 each) Rs 18,00,000; Tax Rate 40%.

(a) State any three points of importance of Financial Planning.

Statement-I: Capital market instruments are safer than money market instruments both with respect to returns and principal repayment. Statement-II: The capital market deals in medium and long-term securities such as equity shares and debentures etc. Choose the correct option from the following: (A) Statement I is true and Statement II is false. (B) Statement I is false and Statement II is true. (C) Both Statement I and Statement II are true. (D) Both Statement I and Statement II are false.

In the 'Primary Market' prices of securities are determined by: (A) Management of the company (B) Demand and supply of the security (C) Employees of the company (D) Only demand for the security

Riya, a software engineer wanted to invest a part of her savings in the stock-market. Encouraged by some online discussions, she came across a company 'Smart-Tech Ltd.', whose stock price was rising very fast. News began to circulate that company had got a large government contract and she believed that its share price would double soon. Convinced by the positive claims, Riya also invested in the shares of this company. Over the next week, the shares continued to rise but suddenly, the price started crashing. Within days, her investment had lost more than 60% of its value. Riya started researching and discovered that the news about the government contract was false. Securities and Exchange Board of India (SEBI) also took immediate notice of the situation and called for detailed trading information and conducted enquiries and inspections. After examining trading information and conducting enquiries, SEBI found that a group of traders had spread false information to artificially boost the stock price. By taking action against the group of traders, SEBI made it clear that fraudulent and unfair trade practices are strictly prohibited. (i) Quote lines from the above to identify the two functions being performed by SEBI. (ii) Also state one more function of each category of the functions identified in (i) above.

Give any three protective functions performed by Securities and Exchange Board of India.

'Stock Exchange is playing a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.' The above lines highlight which function of stock exchange from the following? (A) Providing Scope for Speculation (B) Spreading of Equity Cult (C) Safety of Transactions (D) Contributes to Economic Growth

Choose the correct statement about the meaning of depository. a) Depository holds and transfers securities in the Demat Form. b) Depository serves as an intermediary and buys and sells securities on the instructions of clients. c) Depository is like a bank and keeps securities in electronic form on behalf of investors. d) Depository buys securities from a company and sells to the public at a higher price.

Read the following statements carefully: Statement I: Secondary Market directly promotes capital formation. Statement II: Capital market deals in medium and long term securities such as equity shares and debentures. Choose the correct alternative: A. Both the statements are true. B. Both the statements are false. C. Statement I is true, Statement II is false. D. Statement II is true, Statement I is false.

Name the element of marketing mix which includes deciding about the features, quality, packaging, labelling and branding of goods or services or 'anything of value' which is offered to the market for sale. a) promotion b) place c) product d) price

Anabel Creations, an apparel designing company has a huge pile of young men's and women's garments to be sold across its branches in various cities. In order to clear the stock, the company has decided to give a heavy discount on its garments, with a view to lure the buyers. It is also visiting various colleges for sponsoring fashion shows in order to push its sales. However, the garments are not liked by the customers as they have not been made as per their needs and preferences. a) Identify and state the Marketing Management philosophy being followed by Anabel Creations. b) Name and state any two other philosophies of Marketing apart from the one identified in part a.

'Priya Motors', a motorbike manufacturing company, launched a new model of bike in the market named 'Moto Glide III'. The company planned carefully to make this bike to young riders. The design team focused on making the bike attractive and stylish to the target customers, primarily the youth. They gave it a sleek body, sharp headlights and a digital speedometer. The design made the bike not just look good but also improved its aerodynamics and fuel efficiency. This helped the company stand out from other brands, thereby getting a competitive edge. The company followed strict quality standards in making each part of the bike which helped in achieving uniformity and consistency in output. 'Priya Motors' also offered different versions of bike with different prices based on features like Bluetooth connectivity, colour options etc. Identify and explain two functions of marketing discussed above.

NV Electronics has an innovative range of smartphones, T.V's, home entertainment systems, kitchen appliances and air conditioners. Besides supplying quality products, their focus is also on handling customer complaints speedily, providing maintenance services, procuring credit services etc. The function of marketing discussed above is: (A) Branding (B) Marketing Planning (C) Product designing and development (D) Customer support services

Which of the following statement is correct about personal selling: (A) It is an impersonal form of communication. (B) Personal selling does not allow a sales person to develop personal relationships with the prospective customers. (C) Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making a sale. (D) Personal selling refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.

Explain two features of the following: a. Personal selling b. Advertising

A product will be purchased only if it is perceived to be giving the greatest benefit for the money. Name the feature of marketing reflected in this statement. a) Creating a market offering b) Customer value c) Exchange mechanism d) Needs and wants

Aditya owned a skincare company named 'Nat-Ayur'. In July, 2025, he decided to launch a new herbal face cream in the market using traditional herbs like turmeric, sandalwood, neem, aloe vera, saffron etc. The total cost of producing, packaging, distributing and selling the cream came to Rs 60 per tube. 'Nat-Ayur' decided that this would be the minimum price to cover the cost. They wanted to earn a fair margin of profit too. For this 'Nat-Ayur' conducted a survey and found that the expected demand would be high. Customers were ready to pay more for herbal and chemical free products. They also found that many face creams with similar features are available in the market priced between Rs 80 to Rs 120. To compete effectively, 'Nat-Ayur' decided to price the cream at Rs 99 to attract the customers while offering better benefits. To add value to the product 'Nat-Ayur' invested in eco-friendly packaging, free home delivery and on-line advertisements. This uniqueness gives 'Nat-Ayur' a competitive freedom in fixing price of its cream. Identify and explain any two factors that were taken into consideration by 'Nat-Ayur' for determining the price of their herbal face cream.

'Lima' is a global sportswear brand known for shoes, apparel and sports accessories. Customers can recognize Lima's shoes, t-shirts and bags just by seeing the tiger symbol imprinted on all Lima's products. Lima has legally registered both its name 'Lima' and its tiger symbol so that no other company can legally use the same or similar design in their sportswear. The tiger symbol is Lima's: (A) Brand name (B) Brand mark (C) Trade mark (D) Both Brand mark and Trade mark

Which of the following is not a component of 'Physical Distribution'? (A) Inventory control (B) Standardisation and grading (C) Order processing (D) Transportation

Ramesh wanted to buy a room heater as it had become extremely cold. He went to the nearby market in search of a good room heater. He first visited a few big shops selling branded heaters and checked the design, quality and the price. Walking through the market he saw a road side shop displaying an attractive room heater. He walked into the shop to enquire about the room heater. The shopkeeper demonstrated how the heater worked and simultaneously explained its qualities like its rotating function, auto-cut etc. Ramesh asked about its price and decided to buy it, as in comparison to other room heaters, it was cheaper and had various additional features. However while focusing on the price and features, he did not check the ISI mark or the label which displayed the date of manufacturing, safety features, directions for use etc. The right exercised by Ramesh in the above case is: (A) Right to choose/be assured (B) Right to be heard (C) Right to consumer education (D) Right to safety

Meera purchased a mixer-grinder of a reputed brand from a well-known electronic store for Rs 5,000. Within ten days, the mixer-grinder stopped working. Meera visited the shop for repair or replacement showing the cash memo and the warranty card but the shopkeeper refused to help her. Though the product was only for Rs 5,000, she filed a complaint at the District Consumer Disputes Redressal Forum. The Forum ordered the store to replace the product within 30 days. They also added Rs 1,000 as compensation for mental harassment and Rs 800 for legal costs. State two responsibilities fulfilled by Meera and two reliefs which Meera got through Consumer Redressal Forum.

State any six reliefs available to a consumer under Consumer Protection Act, 2019.