CBSE Class 12 Business Studies Term 1 Sample Paper Set A

Sample Paper Class 12

See below CBSE Class 12 Business Studies Term 1 Sample Paper Set A with solutions. We have provided CBSE Sample Papers for Class 12 Business Studies as per the latest paper pattern issued by CBSE for the current academic year. All sample papers provided by our Class 12 Business Studies teachers are with answers. You can see the sample paper given below and use them for more practice for Class 12 Business Studies examination.

CBSE Sample Paper for Class 12 Business Studies Term 1 Set A

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

Answer

C

2. Making assumptions for future is referred as ………… .
(a) Making derivative plans
(b) Making policy
(c) Setting planning premises
(d) All of these

Answer

C

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

Answer

A

4. Which of the following have no representative professional organisations available?
(a) Law
(b) Management
(c) Medical
(d) Accountancy

Answer

B

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

Answer

C

6. The time period between receiving of order and delivery of goods and services is called
(a) Order processing time
(b) Inventory
(c) Warehousing
(d) Transportation

Answer

A

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

Answer

B

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

Answer

A

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

Answer

D

10. Planning establishes base or standard for ………… .
(a) organising
(b) staffing
(c) directing
(d) controlling

Answer

D

11. The main purpose of ………… is to reduce the work load of managers.
(a) delegation
(b) organisation
(c) functional structure
(d) divisional structure

Answer

A

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

Answer

D

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

Answer

B

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

Answer

D

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

Answer

A

16. By comparing ………… with standards, manager can know whether the goals are achieved or not.
(a) risk
(b) ideas
(c) actual performance
(d) costs

Answer

C

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 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

Answer

D

18. Which of the following does not characterise the business environment?
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity

Answer

B

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

Answer

B

20. Divisional structure focuses on ……… specialisation.
(a) product
(b) function
(c) task
(d) work

Answer

A

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

Answer

B

22. Composition of family is an example of ………… environment.
(a) political
(b) social
(c) legal
(d) technological

Answer

B

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

Answer

D

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

Answer

A

Section B

25. ‘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

Answer

A

26. ‘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

Answer

D

27. 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

Answer

C

28. 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)

Answer

A

29. ………… gives a common focus to group efforts to ensure that performance is as planned and scheduled.
(a) Coordination
(b) Controlling
(c) Directing
(d) Organising

Answer

A

30. 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

Answer

D

31. 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

Answer

C

32. Selective dispersal of authority leads to ………… .
(a) delegation
(b) centralisation
(c) decentralisation
(d) None of these

Answer

C

33. 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

Answer

C

34. 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

Answer

B

35. “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

Answer

A

36. ………… 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

Answer

B

37. 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)

Answer

B

38. 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

Answer

B

39. 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

Answer

B

40. 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 `8 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

Answer

B

41. 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

Answer

D

42. ………… study refers to finding the one best way to perform a task.
(a) Time
(b) Motion
(c) Fatigue
(d) Method

Answer

D

43. 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)

Answer

D

44. The words cooperation and coordination are
(a) opposite
(b) synonym
(c) complementary
(d) All of these

Answer

C

45. 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

Answer

A

46. 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

Answer

C

47. Firm shares and informs all the details about the product to customers through ………… .
(a) packaging
(b) labelling
(c) grading
(d) standardising

Answer

B

48. 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

Answer

D

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.

49. Which function of management is highlighted in the given case?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer

B

50. 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

Answer

A

51. 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
(c) Departmentalisation
(d) Establishing reporting relationships

Answer

C

52. 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

Answer

B

53. 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

Answer

C

54. “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

Answer

D

55. ‘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 given by the government 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.

Answer

B

56. 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

Answer

B

57. 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

Answer

D

58. 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.

Answer

B

59. 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

Answer

A

60. 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

Answer

B

CBSE Class 12 Business Studies Term 1 Sample Paper Set A