CBSE Class 12 Business Studies Term 1 Sample Paper Set B

See below CBSE Class 12 Business Studies Term 1 Sample Paper Set B 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 B

Section A

1. ……… is the professional association connected to management.
(a) ICAI
(b) Bar council
(c) IMA
(d) AIMA

2. Effective planning results in decreasing ……… .
(a) coordination
(b) proper use of resource
(c) future uncertainties
(d) control

3. Foody Ltd., a food delivery service app has recently faced criticism for the tampering of their product, by their delivery boys. Foody Ltd. decided to put a hologram seal on the food packets in order to protect the contents from spoilage, leakage, pilferage, damage, along with a tag with a safety warning for the consumers to check the seal.
Which concept of marketing discussed above is performing the important function of communicating with the potential buyer and promoting the sale?
(a) Branding
(b) Product designing and development
(c) Labelling
(d) Packaging

4. The authority-responsibility relationship that exist within the organisation give rise to
(a) different functions within the organisation
(b) different levels in the organisation
(c) management as a multidimensional activity
(d) management as a group activity

5. Principles of management can be modified by the manager when the situation demands. This statement implies that the principles of management are
(a) rigid
(b) contingent
(c) flexible
(d) universally applicable

6. Soniya decided to start a business of selling dress material from her house. She did various online surveys to find out about the preferences of prospective customers.
Based on this, she prepared a detailed analysis of the business. She then made important decisions including deciding about the features, quality, packaging, labelling and branding of the dress material. Identify the element of marketing mix discussed above.
(a) Promotion
(b) Market
(c) Product
(d) Place

7. Management is multi-dimensional because it has ……… dimensions.
(a) one
(b) two
(c) three
(d) four

8. Which of the following is/are feature(s) of marketing process?
(a) Satisfying needs and wants of the consumers
(b) Creating a market offering
(c) Developing an exchange mechanism
(d) All of the above

9. ……… is a process which is followed to share task in an organisation.
(a) Centralisation
(b) Decentralisation
(c) Both (a) and (b)
(d) Delegation

10. Due to ever changing environment, planning function has become a ……… responsibility of management.
(a) periodic
(b) continuous
(c) casual
(d) annual

11. What do we call the division of organisation structure on the basis of products?
(a) Functional organisation
(b) Divisional organisation
(c) Both (a) and (b)
(d) None of these

12. Mr. Prem is working as a top level manager in a business organisation. He is responsible to prepare the plans for the company. For this purpose, he first searches different options to complete the job and then on the basis of their evaluation, he selects most suitable option. In this way, he takes correct decisions and moves forward.
To which particular point of the importance of planning is the above case related?
(a) Planning facilitates decision-making
(b) Planning provides direction
(c) Planning promotes innovative ideas
(d) Planning establishes standard for controlling

13. ……… element of marketing makes the product available to the target customer.
(a) Product
(b) Promotion
(c) Physical distribution
(d) Price

14. Through environment scanning, business firms can enjoy ……… .
(a) competition
(b) first mover advantage
(c) benefit of tax
(d) tapping useful resources

15. ‘‘They don’t sell what they make, but they make what they can sell.’’ The concept referred in the given statement is ……… .
(a) marketing concept
(b) societal concept
(c) selling concept
(d) production concept

16. Which one of the following is not a step of planning?
(a) Forecasting
(b) Establishing objectives
(c) Valuation of objectives
(d) Induction of employees on the job

17. Firework Ltd, a light manufacturing company launched some new products on Eve of Diwali which attracted many buyers. To meet the increased demand, the company employed workers from nearby village. Although the product was in great demand, appropriate safety warnings for use were not mentioned on the packets that led to many accidents.
What important product related decision was not taken into the consideration by the company?
(a) Branding
(b) Labelling
(c) Packaging
(d) Trademark

18. The court passed an order that all schools must follow the Covid guidelines for school children. Identify the dimension of the business environment highlighted in this statement.
(a) Economic environment
(b) Social environment
(c) Legal environment
(d) Technological environment

19. ……… principle of management advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility
(b) Discipline
(c) Order
(d) None of these

20. Departments are established on the basis of ……… in functional organisation.
(a) activities
(b) products
(c) demand
(d) market

21. For the following two statements, choose the correct option.
Statement I Modern marketing concept refers to the group of people who do not have the ability but willingness to buy a particular product.
Statement II Marketing concept set of actual and potential buyers for a product.
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

22. With the introduction of photostats machine in the market, the carbon industry was adversely affected. Which component of environment was responsible for it?
(a) Economic
(b) Political
(c) Technological
(d) All of these

23. XY Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, CEO starts delegating some of his authority to the staff appointed under him at various levels throughout the organisation. Identify the concept of management discussed above.
(a) Delegation
(b) Organising
(c) Decentralisation
(d) Centralisation

24. Rahul, a manager expects his subordinates to get the work done as per his instructions yet has a differential treatment for each person. Which principle of management is overlooked?
(a) Equity
(b) Unity of direction
(c) Unity of command
(d) Order

Section B

25. Many kind of external devices, like Compact Discs (CD’s) for computer, have become obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables the users to store documents, photos, music and movies on web-based servers. Identify the feature of business environment being described in the above lines.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

26. Mr Reeshabh Bhandari is the chief manager in ‘Bhandari Pustak Parkashans’. He is fond of continuing to present innovative ideas while planning for his business. His ideas are usually very significant. It has been observed several times that these ideas take the form of concrete plans. This is the reason that Mr Bhandari’s contribution to the growth and prosperity of the company continues to be quite great.
Identify the ‘importance of planning’ described above.
(a) Planning provides direction
(b) Planning reduces the risk of uncertainty
(c) Planning reduces overlapping and wasteful activities
(d) Planning promotes innovative ideas

27. ……… does not mean abdication.
(a) Decentralisation
(b) Centralisation
(c) Delegation
(d) None of these

28. Assertion (A) Social, legal, technological and political conditions are the specific forces of business environment.
Reason (R) They have impact on all business enterprises and thus may affect an individual firm only indirectly.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is incorrect, but Reason (R) is correct
(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)

29. Sarika, a class 12th student, waned to be a manger, so she talked about it with her mother. But her mother was not really convinced with the idea of her being a manager instead she wanted her to be a lawyer. What can be the possible reason for her mother being doubtful?
(a) Management is not considered a worthy profession
(b) Management is not recognised as a full-fledged profession
(c) Managers are not given much respect by the society
(d) Managers are paid less as compared to other jobs

30. Assertion (A) The sales department insisting on a customer friendly design may cause difficulties in production.
Reason (R) In divisional structure, conflicts may arise among different divisions with reference to allocation of funds.
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)

31. The process by which managers synchronises the activities of different departments is known as ……… .
(a) Management
(b) Planning
(c) Coordination
(d) Controlling

32. Rely Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 80 tubs a day. To achieve this, the efforts of all departments are co-ordinated and interlinked and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom.
Name the function of management discussed above.
(a) Organising
(b) Planning
(c) Staffing
(d) Directing

33. Pawan is working as a production manager in CFL Ltd. which manufactures CFL bulbs. There is no class-conflict between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.
Identify the principle of management.
(a) Harmony, not Discord
(b) Cooperation, not individualism
(c) Science, not rule of thumb
(d) Mental revolution

34. Hari Prakash Ltd. is engaged in manufacturing of irons. The target of the organisation is to manufacture 100 irons a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.
(a) Divisional organisation
(b) Functional organisation
(c) Informal organisation
(d) None of these

35. Biyani group of companies decide to donate 2% of its profits to one of the NGOs for improving the condition of poor in India. This initiative by the company was highly appreciated by the public and their sales increased by 8%. Identify the objective in the given lines.
(a) Social
(b) Organisational
(c) Personal
(d) None of these

36. Systematic planning related to work to be done is helpful in increasing ……… .
(a) cost
(b) loss
(c) efficiency
(d) None of these

37. Assertion (A) Successful organisations do not achieve their goals by chance but by following a deliberate process called management.
Reason (R) People in organisation are performing diverse tasks but they are all working towards the same goal. Management aims at guiding their efforts towards achieving a common objective.
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)

38. ……… is written in the organisation manual.
(a) Goods purchased
(b) Goods sold
(c) Meeting of organisation
(d) Authority and responsibility of different posts

39. During the season of Diwali, a company decided to increase its cost on making of beauty products as more people will be eager to buy the products during the festive season. But due to the financial situation of people due to covid-19, there was a decline in buying of such products. It resulted in loss for the company. What can be the reason for this loss?
(a) The company was not efficient
(b) They were not effective in their working
(c) Both (a) and (b)
(d) All of these

40. Coordination is considered the essence of management because
(a) it is a common thread that runs through all the activities within the organisation
(b) it is implicit and inherent in all functions of the organisation
(c) it is a force that binds all the functions of management
(d) All of the above

41. For the following two statements, choose the correct option.
Statement I False sense of security and complacency lead to failure of planning instead of success.
Statement II Planning, if implemented properly, guarantees success.
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

42. For the following two statements, choose the correct option.
Statement I The principles of Taylor and Fayol are complementary to each other.
Statement II Fayol suggests having an employee suggestion system and Taylor suggest “thinking before doing”.
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

43. Which one of the following is not a part of process of organisation?
(a) Departmentalisation
(b) Doing complete centralisation
(c) Establishing reporting relationship
(d) Assignment of duties

44. Name the process of working with and through other to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.
(a) Management
(b) Planning
(c) Organising
(d) Controlling

45. Two friends, Ramesh Singh and Krishan Gopal are working as managers in different companies. They met in a family function and had a discussion about the activities taking place in their organisations. Krishan said now-a-days he is busy in making a policy regarding what employees have to do, when to do, how to do and for whom to do, so that departments and individuals are able to work in coordination.
Identify the importance of planning mentioned by Krishan in the above discussion.
(a) Planning reduces the risk of uncertainties
(b) Planning provides direction
(c) Planning reduces overlapping and wasteful activities
(d) Planning promotes innovative ideas

46. ……… technique of scientific management concentrates on uniformity in material, machine, tools etc.
(a) Standardisation of work
(b) Method study
(c) Differential piece wage system
(d) Fatigue study

47. How many standardised forms of organisation structure are there?
(a) Two
(b) Three
(c) Four
(d) No definite number

48. Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities
(b) Planning is a mental exercise
(c) Planning provides directions
(d) Planning reduces the risks of uncertainty

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
BP Ltd. is a company dealing in distribution of medical equipment’s. The company recently imported 18,500 units of best quality blood pressure testing machines to test the blood pressure levels with the help of a chip based machine, with the motive of profit maximisation. For deciding the marketing strategy, the marketing manager of the company called a meeting of the marketing heads of different zones. In the meeting, Mr. Gourang, the east zone marketing head, suggested that since the machines were sophisticated they need to visit hospitals personally, to explain its working to the hospital staff who would be using the machines. Mr. Viabhav suggested that the price of the machine should be affordable to all as this machine is used by hospitals as well as households.

49. “In the meeting, Mr. Gourang, the east zone marketing head, suggested that since the machines were sophisticated they need to visit hospitals personally, to explain its working to the hospital staff who would be using the machines.” Identify the element of promotion mix being highlighted in the above lines.
(a) Personal selling
(b) Advertising
(c) Sales promotion
(d) Public relation

50. “For deciding the marketing strategy, the marketing manager of the company called a meeting of the marketing heads of different zones.” Identify the function of marketing highlighted in the above lines.
(a) Gathering and analysing market information
(b) Product designing and development
(c) Marketing planning
(d) Standardisation and grading

51. “The company recently imported 18,500 units of best quality blood pressure testing machines”. Identify the function of marketing highlighted in the given lines.
(a) Gathering and analysing market information
(b) Procurement of goods and services
(c) Marketing planning
(d) Standardisation and grading

52. Which component of marketing mix has not been discussed in the above case?
(a) Product
(b) Promotion
(c) Place
(d) None of these

53. “The company recently imported 18,500 units of best quality blood pressure testing machines to test the blood pressure levels with the help of a chip based machine, with the motive of profit maximisation.” Which marketing philosophy have been adopted by BP Ltd.?
(a) Production concept
(b) Selling concept
(c) Product concept
(d) Marketing concept

54. In the above said case, Mr. Vaibhav is discussing about which marketing mix strategy?
(a) Product mix
(b) Price mix
(c) Promotion mix
(d) Place mix

55. Ananya ‘s grandfather while telling her about the past of Indian economy told her that even after opening up of our economy in 1991, foreign companies found it very difficult to cut through the bureaucratic red tape to get permits for doing business in India. Sometimes it took months to process even their application in process. As a result, these companies were discouraged from investing in India but the situation has improved overtime. Identify the element of business environment which was the cause for discouragement to foreign companies based on above case.
(a) Economical
(b) Social
(c) Political
(d) Legal

56. Immunity Ltd. is engaged in the manufacturing of metal products. It was a market leader but due to failure to cope up with the changes in business environment on time, it lost its market share. Mr. Anil, a founder of the company analysed the situation critically and decided to involve the employees while making decisions and delegate some of the authority to various employees at various levels throughout the organisation.
Identify the concept of management highlighted in the given case.
(a) Delegation
(b) Organising
(c) Decentralisation
(d) Centralisation

57. The term ‘public relations’ refers to ……… .
(a) A non-personal form of communication
(b) Conducting a variety of programs designed to promote or protect company’s image
(c) Short-term incentives, which are designed to encourage the buyers to make immediate purchase
(d) Oral presentation of message in the form of conversation with one or more prospective customers

58. ‘Chandra Chemicals Ltd.’ is a newly established company in chemical industry. The goals of the company have been very well defined. The employees know what the organisation aims at doing and what they should do for the realisation of the goal. The company did the planning in such a way that all the departments and employees are able to work in coordination. This is the result of successful planning that the company is moving forward on the path of success.
On the basis of the event stated above, tell why planning is important?
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.

59. Rahul, as an efficient worker, wanted more than average salary. But the company’s goal was to maximise profit and thus they denied Rahul’s request. Rahul did not like the company’s decision and therefore created chaos in the company, by breaking the company’s rules. Which principle(s) of management is being violated here?
(a) Remuneration of employees
(b) Subordination of individual interest to general interest
(c) Discipline
(d) Both (b) and (c)

60. “A sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells him not to offer more than 5% discount.” Which managerial principle has been violated in aforesaid situation?
(a) Unity of command
(b) Unity of direction
(c) Scalar chain
(d) Discipline