Class 12 Business Studies — CBSE Board Sample Paper

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Class 12 Business Studies — CBSE Board Sample Paper — solved practice questions

8 Class 12 Board Sample Papers (CBSE) questions with step-by-step solutions. Attempt each, then reveal the answer.

1. Q1medium

   The newly appointed Production Manager of Saheb Ltd., a firm manufacturing toys, Mr Ahrawat noticed that the workers in the factory were not giving their best as the physical conditions in the factory were not good. He conducted an experiment to see the effect of improvement in the physical conditions in the factory on the performance of the workers, by providing adequate ventilation and water facilities. He observed that the fatigue level of the workers reduced. The nature of management being highlighted in the above case is:

   • AManagement as science
   • BManagement as profession
   • CManagement as art
   • DBoth A. and C.
   Show answer & solution

   Correct answer: (A) Management as science

   Conducting an experiment to test the effect of improved physical conditions on worker performance reflects the systematised body of knowledge and cause-and-effect experimentation that characterises management as a science.

2. Q2medium

   Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, responsible for promoting exhibitions and events. In the previous season, she defined the total work of managing the events into graphic designing, registration inquiries, bill payments, etc, in order to facilitate specialisation. However, instead of allocating work, she had assigned each team member the full responsibility of managing the promotion of an entire event. Inspite of holding regular team meetings to take feedback, Jasmine found problems throughout the events season in the quality of graphic design, registration inquiry, bill payments, etc. For the upcoming events season, Jasmine has decided to divide these responsibilities on the basis of her observation of the areas in which the individual team members have excelled in the previous season and allocate the roles based on their skills and competencies. Identify the step in the organising process which was not properly performed in the previous season but has been duly performed for the upcoming season.

   • AIdentification and division of work
   • BEstablishing reporting relationships
   • CDepartmentalisation
   • DAssignment of duties
   Show answer & solution

   Correct answer: (D) Assignment of duties

   Allocating roles to individual team members based on their skills and competencies is the 'Assignment of duties' step, which was earlier mishandled by giving each member full responsibility for an entire event rather than the tasks suited to them.

3. Q3medium

   Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: Assertion (A): Financial Planning aims at enabling the company to tackle the uncertainty in respect of the availability and timing of the funds. Reason (R): Capital structure refers to the mix between owners' and borrowed funds.

   • ABoth Assertion (A) is false and Reason (R) are true.
   • BBoth Assertion (A) and Reason (R) are false.
   • CBoth Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion.
   • DBoth Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion.
   Show answer & solution

   Correct answer: (C) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion.

   Both statements are individually correct, but capital structure (the mix of owners' and borrowed funds) does not explain how financial planning tackles the uncertainty of availability and timing of funds, so R is not the correct explanation of A.

4. Q4medium

   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. In the light of given statements, choose the correct alternative from the following:

   • ABoth the statements are true.
   • BBoth the statements are false.
   • CStatement I is true, Statement II is false.
   • DStatement II is true, Statement I is false.
   Show answer & solution

   Correct answer: (D) Statement II is true, Statement I is false.

   The secondary market only indirectly promotes capital formation (the primary market does so directly), so Statement I is false, while Statement II correctly describes the capital market dealing in medium and long term securities.

5. Q5easy

   Choose the statement that correctly highlights the benefit of using external sources of recruitment.

   • ACompetitive spirit among the existing staff
   • BReduction in employees turnover
   • CHelps in increasing employees satisfaction
   • DDevelops a sense of security amongst employees
   Show answer & solution

   Correct answer: (A) Competitive spirit among the existing staff

   External recruitment brings in fresh talent and creates a competitive spirit among existing staff; the other options are benefits of internal sources of recruitment.

6. Q6medium

   Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the needs of both industrial users and consumers. The company is providing easy finance facilities at a low rate of interest, which has considerably increased the demand for the product. The company has installed a new branch management software to efficiently manage and coordinate activities across their multiple branches and locations. Identify the components of the business environment from the above case study.

   • APolitical and economic environment
   • BEconomic and social environment
   • CTechnological and legal environment
   • DEconomic and technological environment
   Show answer & solution

   Correct answer: (D) Economic and technological environment

   Easy finance at low interest rates reflects the economic environment, while installing new branch management software reflects the technological environment.

7. Q7easy

   When a consumer looks for FPO mark while purchasing a bottle of jam or hallmark when purchasing jewellery, which consumer responsibility has he kept in mind:

   • AAssert yourself to ensure that you get a fair deal
   • BGetting a proper receipt
   • CBuy only standardised products
   • DBe honest in your dealings
   Show answer & solution

   Correct answer: (C) Buy only standardised products

   Looking for quality certification marks such as FPO or hallmark reflects the consumer responsibility to buy only standardised products that carry marks of quality assurance.

8. Q8medium

   Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: Assertion (A): Controlling can prevent deviations. Reason (R): Controlling helps in minimising deviations by taking actions and decisions that reduce their recurrence.

   • ABoth Assertion (A) and Reason (R) are true and Reason is the correct explanation of Assertion.
   • BBoth Assertion (A) and Reason (R) are true and Reason is not the correct explanation of Assertion.
   • CAssertion (A) is true, Reason (R) is false.
   • DAssertion (A) is false, Reason (R) is true.
   Show answer & solution

   Correct answer: (D) Assertion (A) is false, Reason (R) is true.

   Controlling cannot prevent deviations; it can only minimise them by reducing their recurrence, so Assertion (A) is false while Reason (R) is true.

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