CBSE Class 12 Business Studies Sample Paper with Solution | CBSE Term 1 Business Studies Paper

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CBSE Class 12 Business Studies Sample Paper : CBSE Term 1 exam has started from 1st December. Recently the datesheet was released by CBSE, according to the CBSE datesheet the first paper of CBSE is Sociology is going to be held on December 1. CBSE students were eagerly waiting for the sample papers and recently the sample papers have also been released. Today, through this article, a sample paper of business studies is being made available for the students of class 12 of CBSE. The direct link to download the sample paper is given below, you can download the PDF by clicking on the link.

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CBSE Class 12 Business Studies Answer Key

CBSE Class 12 Business Studies Sample Paper with Solution

Section A

  1. “In an organisation, employees are happy and satisfied, there is no chaos and the effect of management is noticeable.” Which characteristic of management is highlighted by this statement?
    (a) Management is goal oriented process
    (b) Management is all pervasive
    (c) Management is an intangible force
    (d) Management is a group activity
  2. Making assumptions for future referred as …………
    (a) Making derivative plans
    (b) Making policy
    (c) Setting planning premises
    (d) All of these
  3. Range of products or variety or assortment of products which a company is manufacturing is called ………….
    (a) Product mix
    (b) Place mix
    (c) Price mix
    (d) Promotion mix
  4. Which of the following have no representative professional organisations available?
    (a) Law
    (b) Management
    (c) Medical
    (d) Accountancy
  5. On what basis, the principles of management were derived?
    (a) On the basis of observation
    (b) On the basis of experimental studies
    (c) Both (a) and (b)
    (d) None of these
  6. The time period between receiving of order and delivery of goods and services is called
    (a) Order processing time
    (b) Inventory
    () Warehousing
    (d) Transportation
  7. Authority-responsibility relationship binds individuals as superiors and subordinates and give rise to different ………… in an organisation.
    (a) functions
    (b) levels
    (c) objectives
    (d) policies
  8. To reach the mass customer in non-personal manner, the following element of promotion mix is used.
    (a) Advertisement
    (b) Sales promotion
    (c) Personal selling
    (d) Public relation
  9. If a company deals in metal products and plastic products, what type of organisation will be useful for it?
    (a) Informal
    (b) Functional
    (c) Both (a) and (b)
    (d) Divisional
  10. Planning establishes base or standard for …………
    (a) organising
    (b) staffing
    (c) directin
    (d) controll
  11. The main purpose of ………… is to reduce the work load of managers.
    (a) delegation
    (b) organisation
    (c) functional structure
    (d) divisional structure
  12. All other managerial functions are performed within the framework of the plans drawn. Identify the related feature of planning,
    (a) Planning focuses on achieving objectives
    (b) Planning is pervasive
    (c) Planning is futuristic
    (d) Planning is primary function of management
  13. The communication tool which is used to improve the image or goodwill of the company is called ………….
    (a) Advertisement
    (b) Public relation
    (c) Sales promotion
    (d) Personal selling
  14. “Business environment is the sum total of all things external to business firms and, as such, is aggregative in nature.” Which feature of business environment is highlighted by this statement?
    (a) Specific and general forces
    (b) Dynamic nature
    (c) Inter-relatedness
    (d) Totality of external forces
  15. The first level packing in which product is initially packed, is called
    (a) Primary packing
    (b) Secondary packing
    (c) Transportation packing
    (d) None of these
  16. By comparing ………… with standards, manager can know whether the goals are achieved or not.
    (a) risk
    (b) ideas
    (c) actual performance
    (d) costs
  17. For the following two statements, choose the correct option.
    Statement I Selling concept focuses on customer satisfaction.
    Statement II Packaging and labelling are same or synonyms of each other.
    Alternatives
    (a) Statement Iis correct and Statement II is incorrect
    (b) Statement II is correct and Statement I is incorrect
    (c) Both the statements are correct
    (d) Both the statements are incorrect
  18. Which of the following does not characterise the business environment?
    (a) Uncertainty
    (b) Employees
    (c) Relativity
    (d) Complexity
  19. Mohan, the manager of a business undertaking is very lax with his fellow employees and subordinates. He does not give them parameters or rules for reporting to work and completion of assignments. Which principle of management is being overlooked?
    (a) Division of work
    (b) Discipline
    (c) Scalar chain
    (d) Initiative
  20. Divisional structure focuses on ……… specialisation.
    (a) product
    (b) function
    (c) task
    (d) work
  21. The firms can charge high price for their product, when the product has
    (a) low demand and low utilities
    (b) high demand and high utilities
    (c) Both (a) and (b)
    (d) None of these
  22. Composition of family is an example of ………… environment.
    (a) political
    (b) social
    (c) legal
    (d) technological
  23. Who reports to whom, is decided in the following step of organising process?
    (a) Identifying the activities
    (b) Grouping the activities
    (c) Assignment of duties
    (d) Establish authority relationship

24………… keeps machines, tools, materials etc. ready for operations by concerned
workers.
(a) Gang boss
(b) Repair boss
(c) Instruction card clerk
(d) Route clerk

Section B

  1. ‘Riya Health Care Limited’, established with the objective of taking care of the people’s
    health. This was the first company of this type established in its field. There being no
    competition in the market was something good for the company. But when the
    company’s business was about to pick up, several competing companies got
    established in that field. Consequently, the comfortable position of the company came
    to an end. Hardly two years had gone since the company was established, when there
    occurred a big change in the priorities of the customers. Now they got tempted
    towards the local health promoting products instead of the company’s products. In this
    way, the company had to face great difficulties to keep itself established in the market.
    Which feature of business environment does the above event acquaint us with?
    (a) Dynamic nature
    (b) Inter-relatedness
    (c) Totality of external forces
    (d) Specific and general forces
  2. ‘Coco Private Ltd.’ is a well-known company making drinkable products. This
    company has left behind several competing companies. Some of the students of
    management felt curious to know the secret of this company’s success. They went to
    the company and examined the planning function of management. They found that
    (i) High level management, does planning for the whole organisation
    (ii) Middle level management, does departmental planning and
    (iii) Low level management, plans the daily activities to be completed by the workers.
    It was concluded that the planning was being done at all levels of management and in
    all the departments, but there was difference in the area of planning. The students
    noticed that the people doing planning had a spirit of dedication. This was the very
    secret of the company’s success.
    Identify the feature of planning discussed in the above event.
    (a) Planning is continuous
    (b) Planning is futuristic
    (C) Planning involves decision-making
    (d) Planning is pervasive
  3. What refers to the process of identification of products into different parts, on the basis of some of its important features like quality, size etc?
    (a) Standardisation
    (b) Labelling
    (c) Grading
    (d) Branding
  4. Assertion
    (A) Entry of new firms in the market may make an enterprise think a fresh about how to deal with the situations.
    Reason (R) Business environment assist in planning and policy formulation.
    Alternatives
    (a) Both Assertion (A) and Reason (R) are correct
    (b) Assertion (A) is correct, but Reason (R) is incorrect
    (c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
    (d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)
  5. ………… gives a common focus to group efforts to ensure that performance is as planned and scheduled.
    (a) Coordination
    (b) Controlling
    (c) Directing
    (d) Organising
  6. A soap manufacturing company is spending substantial amount of money to persuade the target customers to buy its soaps through advertisements, personal selling and sales promotion techniques. Which element of marketing mix is referred here?
    (a) Product
    (b) Price
    (c) Place
    (d) Promotion
  7. Ashoka handloom industries is a company manufacturing bedcovers/bed sheets.
    Mr Ashok Khadhidhari is the production manager in the company. His design team
    developed some prints for bedcovers in bright colours on silk. Although they looked
    very impressive, the use of silk made the product too expensive for the average
    customer. Praising their effort, Mr Ashok suggested that they keep the silk bedcovers
    for special occasions like Diwali and Christmas and offer the bedcovers on a regular
    basis.
    Name the main function of management to which the above case is related.
    (a) Planning
    (b) Organising
    (c) Directing
    (d) Controlling
  8. Selective dispersal of authority leads to ………
    (a) delegation
    (b) centralisation
    (c) decentralisation
    (d) None of these
  9. For the following two statements, choose the correct option.
    Statement I Not only employee-turnover, but frequent termination or rotation must
    also be avoided.
    Statement II Employee must be provided the feeling of job security. With feeling of
    insecurity of job, the employees cannot contribute their maximum.
    Alternatives
    (a) Statement I is correct and Statement II is incorrect
    (b) Statement II is correct and Statement I is incorrect
    (c) Both the statements are correct
    (d) Both the statements are incorrect
  10. Rishabh has joined as a Creative Head in an entertainment company. He always
    ensures that the work has been divided into small and manageable activities and also
    the activities of similar nature are grouped together. Identify the related step in
    organising process being mentioned in the above lines.
    (a) Identification and division of work
    (b) Departmentalisation
    (c) Assignment of duties
    (d) Establishing reporting relationships
  11. “Coordination is not a separate function of management but it happens to be the final
    truth of all functions.” In what context, this observation has been made?
    (a) Coordination is the essence of management
    (b) Coordination is not established automatically
    (c) Coordination is a continuously moving process
    (d) None of the above
  12. ………… is a feature of planning which is also referred to as primacy of planning.
    (a) Pervasive
    (b) Primary function of management
    (c) Continuous
    (d) Integrating
  13. Assertion (A) There is a kind of cost-benefit analysis involved and the relationship
    between inputs and outputs.
    Reason (R) If by using less resources more benefits are derived, then effectiveness has
    increased.
    Alternatives
    (a) Both Assertion (A) and Reason (R) are correct
    (b) Assertion (A) is correct, but Reason (R) is incorrect
    (c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation
    of Assertion (A)
    (d) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct
    explanation of Assertion (A)
  14. Several electronics companies have been selling their products at attractive prices with
    innovative features. All companies are focusing on people and profit but no company
    bothers for planet that how to dispose electronic waste. Which marketing philosophy
    are they neglecting?
    (a) Marketing concept
    (b) Societal marketing concept
    (c) Selling concept
    (d) Product concept
  15. Shivani has started a new business of providing organic vegetables and fruits, although
    she does not have many competitors in the market, but still she tries to offer the goods at
    a minimum price so that she can sell her goods and is able to survive in the market. She
    also make sure that people with a lesser income can also buy her goods.
    State the two objectives she is trying to achieve.
    (a) Organisation and personal
    (b) Organisation and social
    (c) Social and personal
    (d) All of these
  16. Hari Private Ltd., a biscuit manufacturing company set the target to produce 500
    packets of biscuits per month at the cost of 10 per packet. Ajay, a worker, worked
    double shift and produced around 600 packets at the cost of 15 per packet. Another
    worker Vijay mainly focused on cost and handled resources very carefully, so he
    produced 480 packets at the cost of 78 per packet. On reading the above situation, what
    quality both the workers Ajay and Vijay are lacking?
    (a) Effectiveness and efficiency (b) Efficiency and effectiveness
    (c) Both are lacking effectiveness (d) Both are lacking efficiency
  17. For the following two statements choose the correct option.
    Statement I Planning gives guarantee of success.
    Statement II Planning is a function of middle level managers.
    Alternatives
    (a) Statement I is correct and Statement II is incorrect
    (b) Statement II is correct and Statement I is incorrect
    (c) Both the statements are correct
    (d) Both the statements are incorrect
  18. ………… study refers to finding the one best way to perform a task.
    (a) Time
    (b) Motion
    (C) Fatigue
    (d) Method
  19. Assertion (A) Under production philosophy, greater emphasis was placed on
    improving the production and distribution efficiency of the firms.
    Reason (R) It was assumed that buyers can be manipulated.
    Alternatives
    (a) Both Assertion (A) and Reason (R) are correct
    (b) Assertion (A) is correct, but Reason (R) is incorrect
    (c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation
    of Assertion (A)
    (d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
    explanation of Assertion (A)
  20. The words cooperation and coordination are
    (a) opposite
    (b) synonym
    (C) complementary
    (d) All of these
  21. Generally, it is thought that planning is related to the planning cycle. It means that a
    plan is framed, it is implemented and it is followed by another plan and so on. The
    above statement is related to a feature of planning, identify it.
    (a) Planning is continuous
    (b) Planning is futuristic
    (c) Planning involves decision-making
    (d) Planning is pervasive
  22. A purchase manager of a company has to purchase 500 tonnes of raw material. Apart
    from the other suppliers in the market, his son also supplies that raw material. The
    manager purchases the raw material from the firm of his son at a rate higher than the
    market rate.
    Which principle of management has been violated in this situation?
    (a) Unity of command
    (b) Unity of direction
    (c) Subordinating personal interest to general interest
    (d) Equity
  23. Firm shares and informs all the details about the product to customers through
    (a) packaging
    (b) labelling
    (c) grading
    (d) standardising
  24. Mr. Neeraj Chopra won gold medal in recent Olympics held in Japan after he has set
    the goal. He learned many techniques from foreign coaches also. Which of the
    following steps of planning is involved here?
    (a) Development of premises
    (b) Listing out alternatives
    (C) Evaluating alternatives
    (d) Setting objectives

Section C

Direction Read the following case study and answer question number 49-54 on the basis of the same.
HLU Ltd is a MNC operating in more than 100 countries across the globe. The company mainly
manufactures FMCG (Fast Moving Consumer Goods) which includes soaps, food items,
cosmetics, etc. To facilitate specialisation, the company grouped the jobs related to one product
under one department. Once the jobs are grouped, they are assigned to the employees. The
company is very stringent in establishing the relationship of who reports to whom. This removes
ambiguity in transfer of information and instructions. The company also emphasises on
delegation. They believe that it leads them to innovate which helps to strengthen the company’s
competitive position. It also trains subordinate to deal with challenges.

  1. Which function of management is highlighted in the given case?
    (a) Planning
    (b) Organising
    (C) Staffing
    (d) Directing
  2. As per the above said case, which structure is followed by HLU Ltd?
    (a) Divisional structure
    (b) Functional structure
    (c) Both (a) and (b)
    (d) Can’t be determined
  3. Which step of organising is highlighted in the lines, “To facilitate specialisation, the
    company grouped the jobs related to one product under one department”?
    (a) Identification of work
    (b) Assignment of duties
    ©) Departmentalisation
    (d) Establishing reporting relationships
  4. Which importance of organising is highlighted in the lines, “The company is very
    stringent in establishing the relationship of who reports to whom. This removes
    ambiguity in transfer of information and instructions”?
    (a) Benefits of specialisation
    (b) Clarity in working relationships
    (c) Adaptation to change
    (d) Expansion and growth
  5. Which importance of organising is highlighted in the lines, “The company also
    emphasises on delegation. They believe that it leads them to innovate which helps to
    strengthen the company’s competitive position. It also trains subordinate to deal with
    challenges”?
    (a) Optimum utilisation of resources
    (b) Effective administration
    (c) Development of personnel
    (d) Expansion and growth
  6. “The company is very stringent in establishing the relationship of who reports to
    whom.” Which step of organising is highlighted in the given lines?
    (a) Identification of work
    (b) Assignment of duties
    (c) Departmentalisation
    (d) Establishing reporting relationships
  7. ‘Sarika Motors Limited’ is a famous vehicle manufacturing company. The Research and
    Development department of the company is very strong. The manager of the
    department, Mr. Gopal Rai, keeps a sharp eye on the business environment. On the
    basis of the data
    by the nment he has concluded that the pollution level in
    the country is rising very fast and that the vehicles running on petrol and diesel
    contribute a lot into it. Keeping this fact in mind, Mr. Rai developed such an engine
    which can run on air pressure. The company used this engine, first of all, in cars, which
    proved to be completely successful. The cars were expensive, but the company got full
    support from the market. From the government also, several concessions in the taxes,
    power rate, etc. were available. The company earned a huge profit.
    Afterwards, several other companies also followed this technique, but no other
    company got as much fame as was got by ‘Sarika Motors’.
    Identify the point of ‘importance of business environment in the event described
    above.
    (a) It helps the firm in identifying the threats and early warning signals.
    (b) It enables the firm in identifying opportunities and getting the first mover advantage.
    (c) It helps in tapping useful resources.
    (d) It helps in coping with rapid changes.
  8. Nishu wants to start a washing machine manufacturing company. She has decided to
    make a budget for the amount of production she will do, the efforts behind promotion
    she will put and all other major actions she will undertake to achieve its objectives.
    Identify the function of marketing management.
    (a) Gathering and analysing market information
    (b) Marketing planning
    (C) Transportation
    (d) Warehousing
  9. Which statement is correct with respect to the societal concept of marketing
    philosophy?
    (a) Quantity of product
    (b) Quality, performance, features of product
    (c) Customer needs
    (d) Customer needs and society’s well being
  10. Sanjivan Madan is working as the sales manager in the ‘Sharda Shopping Mall’. He is
    preparing a sales plan for his department. He is taking the help of forecast as the base
    of the form of his sales plan. He is of the view that a good plan can be prepared by
    learning about the possibilities of future events and conditions through the medium of
    forecast. The plan being prepared by Sanjivan is very important as the production plan
    and other plans of business are prepared on this very basis.
    Identify the feature of planning in above event.
    (a) Planning is continuous
    (b) Planning is futuristic.
    (c) Planning involves decision-making
    (d) Planning is pervasive.
  11. Ram, a manager, very often speaks with people at all levels, passing on instructions
    regarding his department and also the other departments. Which principle of
    management is being overlooked?
    (a) Scalar chain
    (b) Order
    (c) Equity
    (d) Unit of command
  12. Ankit, a manager, expects his subordinates to work for the happiness and pleasure of
    being in the organisation.
    Which principle of management is being overlooked?
    (a) Subordination of individual to general interest
    (b) Remuneration to employees
    (c) Espirit de corps
    (d) Centralisation and decentralisation

CBSE Class 12 Business Studies Sample Paper cbse class 12 sample paper business studies cbse business studies answer key CBSE Term 1 Business Studies cbse term 1 business studies answer key sample paper

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