ISC Class 12 Business Studies Guess Paper 2027
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A full practice paper on the official Business Studies pattern, built from the most-likely questions by repetition analysis. Not an official or leaked paper.
ISC Class 12 Business Studies — Guess Paper 2027
Time: 3 hours · Maximum marks: 80 · Practice paper
Section ACompulsory. Question 1 has sixteen one-mark sub-parts: about three four-option MCQs, one assertion-reason / two-statement question and twelve very-short-answer items (name/identify from a situation, fill in the blank, analogy, expand an abbreviation, true or false). No internal choice.
Q1.1 mark
State whether the following statement is True or False: Food Safety and Standards Authority of India (FSSAI) collects and collates data on contamination of water.
Why this question: Business Regulators and Intermediaries → Identify the regulator and its role (one-mark) — appeared 7× Board 2024Board 2025Board 2026Sample 2023Sample 2024Sample 2025Sample 2026
Q2.1 mark
A ___________ report is intended for the use of a few authorised individuals only.
Why this question: Reports → Identify the type of report from a situation or description — appeared 6× Board 2024Board 2025Board 2026Sample 2024Sample 2025Sample 2026
Q3.1 mark
Observe the relation between the first two phrases / terms and complete the analogy.
Systematic study of a job : Job Analysis :: Explanation of the scope of a job : ____________
Why this question: Job and Manpower Planning → Identify the job planning term from its definition (job analysis, description, specification, manpower estimation) — appeared 6× Board 2023Board 2024Board 2025Board 2026Sample 2023Sample 2026
Q4.1 mark
Which of the following items are commonly included as components of an employee's pay slip?
(P) Provident Fund
(Q) Gratuity
(R) House Rent Allowance
(S) Employee Stock Option
(a) Only (P) and (Q)
(b) Only (P) and (R)
(c) Only (Q) and (R)
(d) Only (R) and (S)
Why this question: Staff Remuneration → Pay slip vs payroll and pay slip components (one-mark) — appeared 4× Board 2025Sample 2023Sample 2026
Q5.
1 mark
[context: pyramid of Maslow's Hierarchy of Human Needs with levels (top to bottom) Self Actualisation, Esteem, Social, Safety and a missing base level marked '?'.]
Name the missing need that appears at the base of Maslow's Hierarchy of Human Needs.

Why this question: Staff Motivation → Name the need in Maslow's hierarchy from its description or position — appeared 7× Board 2023Board 2024Board 2026Sample 2023Sample 2025
Q6.
1 mark
[context: bar graph 'Staff Separation' at Infotide Ltd. showing number of employees under Service completion, Temporary workforce downsizing, Permanent cost cutting separation, Resignation and Involuntary termination.]
Infotide Ltd. has temporarily reduced its workforce. Identify this form of staff separation.

Why this question: Staff Separation → Lay off vs retrenchment (identify / true-false) — appeared 5× Board 2023Board 2026Sample 2024Sample 2026
Q7.1 mark
Some employees at Dawn Ltd. overheard their managers discussing an upcoming Artificial Intelligence enabled project. The news spread quickly, leading to speculations about possible layoffs.
What type of communication is indicated in the above case?
Why this question: Business Communication → Classify communication: formal/informal, internal/external (one-mark) — appeared 5× Board 2023Board 2025Board 2026Sample 2024Sample 2025
Q8.
1 mark
[context: pie chart of the workforce at Infogram Ltd. by emerging HR trends — Core Working Period 45%, Permanent Part-time 30%, Work from Home 20%, Retainership 5%.]
Mention any one advantage to Infogram Ltd. of allocating core working period to 45% of its workforce.

Why this question: Emerging Trends in Human Resources → Advantages / features of flexible hours, work from home, part time (one-mark) — appeared 4× Board 2026Sample 2026
Q9.
1 mark
[context: image of a trainer presenting an 'EMPLOYEE HANDBOOK' slide to a group of employees seated around a table.]
Identify the type of training indicated in the image shown above.

Why this question: Staff Training → Identify the type of training from a description or picture — appeared 5× Board 2024Board 2025Board 2026Sample 2023
Q10.1 mark
[context: pie chart of the workforce at Infogram Ltd. by emerging HR trends — Core Working Period 45%, Permanent Part-time 30%, Work from Home 20%, Retainership 5%.]
Infogram Ltd. outsources the review of its Human Resources policy to a law firm. Name the trend used by the company.
Use the figure given in Q8.
Why this question: Emerging Trends in Human Resources → Identify the emerging trend in HR from a situation — appeared 4× Board 2024Board 2026Sample 2024Sample 2025
Q11.1 mark
The Partnership Act limits the maximum number of partners in a non-banking partnership firm to _________________.
Why this question: Business Entities → Number of members / partners in business entities — appeared 4× Board 2024Sample 2023Sample 2024Sample 2025
Q12.1 mark
Observe the relation between the first two words and then fill in the fourth word.
Recruitment : Positive :: Selection : ___________.
Why this question: Staff Selection → Recruitment is positive, selection is negative (one-mark) — appeared 4× Board 2023Board 2026Sample 2024Sample 2025
Q13.1 mark
[context: At Pratiksha Ltd., VP (Marketing) Mr. Mehta gives his team complete autonomy and intervenes only when asked; VP (Production) Mrs. Kapoor regularly interacts with her team and makes decisions collaboratively.]
Name the leadership style where the manager solely takes decisions and announces them.
Why this question: Staff Leadership → Name the leadership style from its feature — appeared 4× Board 2023Board 2024Sample 2023Sample 2026
Q14.1 mark
Observe the relation between the first two words and complete the analogy.
Long chain of command : Organisational Barrier :: Unclarified assumptions : ____________
Why this question: Business Communication → Identify the barrier to communication — appeared 4× Board 2023Board 2024Board 2025Sample 2026
Q15.1 mark
State whether the following statement is True or False: A quotation letter seeks information about the availability of products with the seller.
Why this question: Business Correspondence and Letters → Identify the type of business letter (enquiry, quotation, solicited application) — appeared 3× Board 2026Sample 2024Sample 2026
Q16.1 mark
[context: Anandita (invested ₹20,00,000) and Rukhsana (invested ₹30,00,000) started a business on a verbal understanding and agreed to share the financial outcomes equally despite unequal capital.]
Anandita and Rukhsana agreed to share the financial outcomes of the business equally. Which feature of this form of business is highlighted here?
Why this question: Business Entities → Features / advantages of the business form in a case — appeared 3× Board 2026Sample 2026
Section BEight short-answer questions of 4 marks each (32 marks). A question is either one 4-mark answer (distinguish on four bases, state any four points), two 2-mark parts, or four 1-mark parts based on a short case, picture or data chart. Internal choice in two questions.
Q17.4 marks
Distinguish between Piece rate system and Time rate system of remuneration on the following basis:
(a) Quality of work
(b) Wastage of resources
(c) Attitude of Trade Unions
(d) Weightage to efficiency
Why this question: Staff Remuneration → Distinguish between Time Rate and Piece Rate System of wage payment — appeared 3× Sample 2023Sample 2024Sample 2025
Q18.4 marks
As per the Morale Productivity Matrix, discuss the relationship between morale and productivity when morale is high.
Why this question: Staff Morale → Morale Productivity Matrix: explain the morale-productivity situations — appeared 3× Board 2024Board 2025Sample 2026
Q19.2 marks
Briefly discuss any two features of the following source of finance available to an organisation in India: Factoring
Why this question: Sources of Business Finance → Explain factoring as a source of finance — appeared 4× Board 2023Sample 2024Sample 2025Sample 2026
Q20.
2 marks
[context: picture of colleagues congratulating Ms. Roy ('Well done Ms. Roy! Keep it up!', 'Superb! I'm really happy for you.') as she says 'Finally! I have achieved it.']
Briefly explain the need of Ms. Roy that is being satisfied.

Why this question: Staff Motivation → Explain a named need in Maslow's hierarchy — appeared 3× Board 2024Sample 2026
Q21.2 marks
Briefly discuss any two features of the following source of finance available to an organisation in India: Venture Capitalists
Why this question: Sources of Business Finance → Explain angel investors / venture capitalists as sources of finance — appeared 4× Board 2023Board 2024Board 2025Sample 2026
Q22.2 marks
With reference to e-recruitment, briefly explain: Internet
Why this question: Staff Recruitment → Explain Internet / Intranet as a source of e-recruitment — appeared 3× Board 2026Sample 2026
Q23.2 marks
Briefly discuss: G2B
Why this question: e-Business and Online Means of Business → Explain an online means of business (B2B, G2B, Intra B) — appeared 4× Board 2024Board 2025Board 2026
Q24.2 marks
Briefly discuss: Outsourcing
Why this question: Outsourcing → Explain the meaning of outsourcing — appeared 3× Board 2026Sample 2023Sample 2025
Q25.1 mark
[context: Speed Ltd. paid daily wage workers ₹100 per hour (Ravi got ₹800 a day); to increase productivity it switched to paying per unit produced, so fast worker Ravi now earns ₹1000 a day, but the trade union is dissatisfied.]
Which system of wage payment was initially followed by Speed Ltd.?
Why this question: Staff Remuneration → Identify the wage payment system from a situation or feature — appeared 4× Board 2024Board 2025Board 2026Sample 2023
Q26.1 mark
XYZ Ltd. follows a compensation policy that focuses solely on financial incentives as it believes that money is a great motivator. Despite receiving handsome salaries, several managers have recently resigned from the company.
Which one of the following is MOST likely the reason for their resignation?
(a) The managers are satisfied with only financial rewards.
(b) The managers are satisfied with non-monetary benefits.
(c) The managers feel that the monetary incentives are too high.
(d) The managers want both monetary as well as non-monetary incentives.
Why this question: Staff Motivation → Monetary vs non-monetary incentives (one-mark) — appeared 3× Board 2025Sample 2024Sample 2026
Q27.1 mark
Name the outsourcing process in which an organisation assigns its non-core processes to an external agency.
Why this question: Outsourcing → Identify BPO / KPO / LPO from its description — appeared 3× Board 2026Sample 2023Sample 2026
Q28.1 mark
State whether the following statement is True or False: A dividend policy of the company determines the extent to which profits can be retained in the business.
Why this question: Sources of Business Finance → Public deposits and retained profits (one-mark) — appeared 3× Board 2023Sample 2025Sample 2026
Q29.1 mark
Varsha wants to attend the naming ceremony of her friend's baby which requires only a day's leave. Since her friend has been unwell and requires support, Varsha decides to apply for an additional day's leave.
Considering the purpose and duration of leave, select the type of leave Varsha should apply for.
(a) Earned leave
(b) Medical leave
(c) Casual leave
(d) Maternity leave
Why this question: Staff Remuneration → Identify the type of leave (casual leave) from a situation — appeared 3× Board 2025Board 2026Sample 2025
Q30.1 mark
Which characteristic of Human Resource Management deals with providing competent employees to an organisation, both now and in the future?
Why this question: Introduction to Human Resource Management → Identify the characteristic of HRM from its description (pervasive, interdisciplinary, future oriented) — appeared 3× Board 2024Sample 2024Sample 2025
Q31.1 mark
The Human Resource Department at Harry & Sons wants to reduce subjective bias while evaluating the performance of each worker and comparing the results. Which one of the following would be MOST suitable to appraise the workers at Harry & Sons?
(a) Appraisal of performance based on achievement of targets.
(b) Workers' performance evaluated by their immediate supervisors.
(c) Feedback on performance collected from self, superiors, subordinates and peers.
(d) Workers rated in fixed performance categories such as excellent, good, satisfactory and poor.
Why this question: Staff Appraisal → Performance appraisal method that reduces rater bias — appeared 3× Board 2024Board 2026Sample 2025
Q32.1 mark
Select the preliminary step in the procedure of Staff Dismissal.
(a) Holding of an enquiry
(b) Issuing of a written charge sheet
(c) Issuing of a notice of enquiry
(d) Receipt of an explanation
Why this question: Staff Separation → Procedure for staff dismissal (one-mark) — appeared 3× Board 2024Board 2025Sample 2025
Q33.1 mark
[context: picture of colleagues congratulating Ms. Roy ('Well done Ms. Roy! Keep it up!', 'Superb! I'm really happy for you.') as she says 'Finally! I have achieved it.']
Identify the factor indicated in the above image as per the Two-factor theory of Herzberg.
Use the figure given in Q20.
Why this question: Staff Motivation → Herzberg's two-factor theory (one-mark) — appeared 3× Board 2024Board 2026Sample 2024
Q34.1 mark
Welcoming a new employee in an organisation with a firm handshake / 'namaste' is an example of _____________ communication.
Why this question: Business Communication → Gestural / non-verbal communication (one-mark) — appeared 2× Sample 2025Sample 2026
Q35.1 mark
[context: Anandita (invested ₹20,00,000) and Rukhsana (invested ₹30,00,000) started a business on a verbal understanding and agreed to share the financial outcomes equally despite unequal capital.]
Identify the form of business set up by Anandita and Rukhsana.
Why this question: Business Entities → Identify the form of business ownership in a case — appeared 2× Board 2026Sample 2026
Q36.1 mark
[context: Anandita (invested ₹20,00,000) and Rukhsana (invested ₹30,00,000) started a business on a verbal understanding and agreed to share the financial outcomes equally despite unequal capital.]
If Anandita decides to leave the business in future, can Rukhsana continue business in the same form? Justify your answer by giving a reason.
Why this question: Business Entities → Can this business form issue shares / continue? Justify — appeared 2× Board 2026Sample 2026
Section CFour long-answer questions of 8 marks each (32 marks). Q12 is always a scenario-based business letter / e-mail to be drafted (8 marks; extracted as q_type case_study so it fills this slot); the other three are split into 4- and 2-mark parts (e.g. 'briefly explain' four terms) and a passage/data-based case study with 1-2 mark parts. Internal choice in one question.
Q37.8 marks
Madhuban Verma applied for the post of a Choreographer at Twist & Turn Dance Academy. At the end of the selection procedure, the panel found him suitable for the position.
Draft an email from Twist & Turn Dance Academy to Madhuban Verma informing him about the final approval of the management.
Why this question: Business Correspondence and Letters → Draft a letter / e-mail from the firm to a candidate (interview call or appointment) — appeared 3× Board 2026Sample 2023Sample 2025
Q38.4 marks
ABC Ltd., a well-known IT firm has opened a new branch in Ahmednagar. In order to maintain their standards, the Company is committed to hiring the best brains in the field.
As the HR Manager of ABC Ltd., suggest any two strategies that the firm can use to attract suitable candidates. Justify your suggestion.
Why this question: Staff Recruitment → Name and explain internal / external sources of recruitment — appeared 3× Board 2023Sample 2024Sample 2025
Q39.2 marks
Briefly discuss: Group Life Insurance
Why this question: Staff Remuneration → Explain Group Insurance as a staff benefit — appeared 3× Board 2024Board 2026Sample 2025
Q40.2 marks
Briefly explain: Retainership
Why this question: Emerging Trends in Human Resources → Explain an emerging HR trend (permanent part time, retainership, work from home) — appeared 3× Board 2024Board 2025Sample 2025
Q41.2 marks
Briefly explain the significance of the following step in the employee selection process: Placement
Why this question: Staff Selection → Significance of Placement in the selection procedure — appeared 2× Sample 2025Sample 2026
Q42.2 marks
With reference to staff benefits, explain NPS.
Why this question: Staff Remuneration → Explain the National Pension System (NPS) — appeared 2× Sample 2024Sample 2026
Q43.
2 marks
[context: two images A and B depict two different styles of leadership.]
State any one feature of each of the above styles of leadership.

Why this question: Staff Leadership → Features / differences of leadership styles shown in a case or picture — appeared 2× Sample 2024Sample 2026
Q44.2 marks
[context: Annie and Naveen are fresh engineering graduates at Scottish Automobile Ltd. Annie wants to introduce changes in production but is hesitant to discuss her ideas with her superior Mr. Shah, so she discusses them with Naveen; Naveen presents a PowerPoint on Annie's ideas to Mr. Shah in the monthly review meeting.]
Name and explain the type of communication between Annie and Naveen.
Why this question: Business Communication → Name and explain the type of communication by direction (horizontal, vertical, diagonal) — appeared 3× Board 2024Sample 2024
Q45.2 marks
Briefly explain the significance of the following step in the employee selection process: Reference check
Why this question: Staff Selection → Significance of Medical Examination / Reference Check in selection — appeared 2× Sample 2023Sample 2026
Q46.2 marks
[context: IBM's CEO Arvind Krishna says employees who work from home may be equally productive in the short term but their careers suffer — moving to another role is less likely because nobody observes them in another context, and remote workers do not acquire skills such as dealing with difficult clients.]
Explain the two ways by which an employee can be moved from one position / department to another in an organisation.
Why this question: Staff Promotion and Transfer → Promotion vs transfer as ways of moving employees — appeared 2× Sample 2024Sample 2025
Q47.2 marks
With reference to staff benefits, explain Gratuity.
Why this question: Staff Remuneration → Explain Gratuity as a staff benefit — appeared 2× Board 2024Sample 2026
Q48.1 mark
A manufacturing company files its GST returns and pays taxes through the official public portal of the income tax department.
Which type of online transaction does this represent?
Why this question: e-Business and Online Means of Business → Identify the online means of business from a situation — appeared 2× Sample 2023Sample 2026
Q49.1 mark
___________ means integrating the economy of a country with the world economy.
Why this question: Globalisation → Meaning of globalisation (one-mark) — appeared 2× Sample 2023Sample 2026