CBSE Class 12 Business Studies Term 1 Sample Paper Set C

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

Section A

1. Ram, Amit and Akhil are employees working in the same factory. The factory receives a big order of producing 500 units in 3 days. The success of the order guarantees great future prospects for the factory, the order must be completed in the given time with  minimum cost. Help Mr. K choose a suitable employee for the job, who can direct other employees to achieve the goal.
• Ram is hardworking employee who aims at completing the task on time no matter  what the cost and even if it means working overtime.
• Amit is finance minded person who prioritises cost effective production.
• Akhil believes in following both time and cost analysis for achieving the task.
(a) Only Ram
(b) Only Amit
(c) Only Akhil
(d) Both Ram and Amit

2. Planning is closely related with ……… .
(a) creativity
(b) innovation
(c) Both (a) and (b)
(d) None of these

3. Which one of the following factors is not relevant in price fixation?
(a) Obtaining market leadership
(b) Age of an organisation
(c) Value for money
(d) Product differentiation

4. The goal of the Harsh retail store is to increase sales and the goal of the Cuts Society ofIndia is to impart education to children of special category. Management unites the efforts of different individuals in the organisation towards achieving these goals.
Identify the characteristics of management discussed above.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is multi–dimensional
(d) Management is a continuous process

5. Values are formed through ……… where as principles are formed through ……… .
(a) research, experimentation
(b) research and experimentation, practice
(c) practice, research and experimentation
(d) None of these

6. Marketing plays a very important role in the economy by
(a) raising living standard of the people
(b) ensuring smooth flow of goods through efficient distribution system
(c) accelerating economic activity
(d) All of the above

7. ……… is the skillful and personal application of existing knowledge to achieve desired results.
(a) Science
(b) Art
(c) Profession
(d) Management

8. For the following two statements, choose the correct option.
Statement I Advertisement is an important element of marketing mix by which marketer encourage exchange of goods and services in the market.
Statement II Promotion mix is one of the element of marketing mix.
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

9. ……… helps to provide stability and growth, despite of external changes occurring in business environment.
(a) Effective administration
(b) Benefits of specialisation
(c) Adaptation to change
(d) Development of personnel

10. Girish is working as the top level manager in a business organisation. He has been given the job of preparing the plans for the whole company. Mr. Girish is an expert in making a correct forecast. At first, he looks for the different options to complete every job, and then on the basis of their evaluation selects the most suitable option. In this way, by taking correct decision and beating his competitors, he is moving forward.
To which particular point of the ‘importance of planning’ is the above event related?
(a) Planning provides direction
(b) Planning promotes innovative ideas
(c) Planning establishes standards for controlling
(d) Planning facilitates decision-making

11. When decisions taken by the lower levels are numerous as well as important, an organisation can be regarded as greatly ……… .
(a) centralised
(b) decentralised
(c) efficient
(d) None of these

12. ……… department of a company manages public grievances.
(a) Marketing
(b) Public relation
(c) Finance
(d) Production

13. A company has to decide its price policy, credit policy, terms of payment, etc. Name the concept which the company is trying to decide.
(a) Price mix
(b) Place mix
(c) Product mix
(d) Promotion mix

14. Which of the following dimensions of business environment includes legislations passed by the government and administrative orders issued by government authorities?
(a) Technological environment
(b) Social environment
(c) Legal environment
(d) Economic environment

15. At which level of packaging, the immediate container is referred to?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these

16. The success of an enterprise is possible only when ……………. are properly drawn up and implemented.
(a) plans
(b) facts
(c) data
(d) budget

17. Mohit selected the brand name for his new product line after carefully assessing the various available alternatives. The feature of planning being highlighted in the given lines is ……… .
(a) planning involves decision–making
(b) planning is futuristic
(c) planning is pervasive
(d) planning is continuous

18. …………… is considered a major element of the economic environment.
(a) Public debt
(b) The nature of relationship of our country with foreign countries
(c) Birth and death rate
(d) Literacy rates

19. Management principles establish ……… relationship between two variables.
(a) cause and effect
(b) contingent
(c) Flexible
(d) None of these

20. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of activities across products.
(b) All functions related to a particular product are integrated in one department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.

21. ……… ensures a particular level of quality of the product and helps in building the confidence of the customers.
(a) Packaging
(b) Branding
(c) Labelling
(d) None of the above

22. Environment is a source of various resources for running a business. To engage in any type of activity, a business enterprise assembles various resources called inputs like money, machine, material, men, etc. from its environment including financers,
government and suppliers. Which importance of business environment is highlighted by this statement?
(a) It helps in tapping useful resources
(b) It helps in coping with rapid changes
(c) It helps in assisting in planning and policy formulation
(d) It helps the firm to identify threats and early warning signals

23. When decision-making authority is retained by higher management levels, an organisation is said to be ……… .
(a) decentralised
(b) centralised
(c) fragmented
(d) None of these

24. Ayesha, a manager decided that there will be separate departments for finance, marketing, production and sales in her company. By doing so, she is following a principle of management. Name that principle.
(a) Division of work
(b) Equity
(c) Order
(d) Unity of direction

Section B

25. Specific attitude that elected government representatives hold towards business is called ……… environment.
(a) legal
(b) social
(c) technological
(d) political

26. ………….. step in the process of planning is concerned with putting the plan into action.
(a) Evaluation of alternatives
(b) Follow–up
(c) Setting objectives
(d) Implementation of plans

27. Smita Ltd., a manufacturer of water proof mobiles achieves a breakthrough by developing a mobile which is water proof. This product has created a good image of the company in the market. This development is effectively communicated by the company to its dealers and prospective customers. The company has also set-up a department that advises its top management to adopt such programmes which will add to its public image. Name the term that is used for this activity.
(a) Advertising
(b) Sales promotion
(c) Public relation
(d) Personal selling

28. Assertion (A) Turbulent market conditions, less brand loyalty, division and sub-division of markets are just a few of the images to describe business environment.
Reason (R) Business environment is dynamic where changes are taking place at a slow pace.
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)

29. Jyoti Ltd. decided to give more stress on the following
• to use environmental friendly methods of production,
• to provide employment opportunities to the disadvantaged section of the society and
• to make available basic amenities like schools and creches to the employees.
Identify the objective of management discussed above.
(a) Organisational objective
(b) Social objective
(c) Personal objective
(d) None of these

30. Which of the following philosophy of marketing assumes that in the long-run, an organisation can achieve its objective of maximisation of profit by identifying the needs of its buyers?
(a) Selling
(b) Marketing
(c) Product
(d) Societal

31. ………….. increases the importance of the subordinates.
(a) Centralisation
(b) Decentralisation
(c) Delegation
(d) Specialisation

32. Assertion (A) Departmentalisation facilitates specialisation.
Reason (R) Departments can be created using several criteria as a basis for division of work.
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)

33. For the following two statements, choose the correct option.
Statement I An organisation can never be completely centralised or completely decentralised.
Statement II The technique of ‘mental revolution’ is derived from the scientific principle of cooperation, not individualism given by Taylor.
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

34. What is the key to managerial post?
(a) Responsibility
(b) Authority
(c) Accountability
(d) None of these

35. A and B are working as departmental heads in best living limited. A has been entrusted with the responsibility of clothes division whereas B is heading the equipment division. Identify the type of organisational structure adopted by the company.
(a) Divisional
(b) Functional
(c) Matrix
(d) None of these

36. 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

37. Under what function of management, the relationship between different posts (positions) is explained?
(a) Planning
(b) Communication
(c) Organising
(d) Supervision

38. Assertion (A) Personal selling involves face-to-face interaction between buyer and seller for the purpose of sale.
Reason (R) Public relations are strategic management function that adds value to anorganisation by helping it to manage its reputation.
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)

39. When organisation grows, ……… structure of departments becomes complicated and creates problem in coordination.
(a) functional
(b) divisional
(c) Both (a) and (b)
(d) None of these

40. The need of organising function of management lies ……… .
(a) in business organisation
(b) in non-business organisation
(c) Both (a) and (b)
(d) None of these

41. Name the step in the process of planning which is considered as the “real point of decision-making”.
(a) Selecting an alternative
(b) Setting objectives
(c) Evaluating alternative courses
(d) All of the above

42. Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of scientific management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. According to you Beena should have related ……… technique of scientific management being used by factories.
(a) motion study
(b) time study
(c) standardisation and simplification
(d) method study

43. Which of the following statement is true for marketing?
(a) It is a process whereby people exchange goods and services for money
(b) It has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers.
(c) It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold.
(d) All of the above

44. ‘Raghav Pvt. Ltd.’ has divided the whole of its business into five departments. Now the company’s General Manager is telling all the employees what different jobs are to be done by them. While giving the jobs to the employees, the nature of job and the person’s ability to do the job is especially being taken into account. This also has been pre-determined who will report to whom. This makes it clear who is superior/senior and who is subordinate.
Identify the function of management highlighted here.
(a) Organising
(b) Planning
(c) Controlling
(d) Staffing

45. Rakhi Dua is employed at the middle level management of Punjab Food Suppliers.
Working in her department, she noticed that they are asked to implement the plans prepared by the top management without making any change. Many a time, even though wishing to do she cannot make any change in them. As a result of it, the initiative and creativity of the managers at the middle level management, gets killed.
Not only this, several times, even opportunities of advantage slip out of hand. Rakhi is very unhappy with this state of affairs of the company and she is thinking of shifting to some other company at the earliest.
Identify the ‘limitation of planning’ in the above event.
(a) Planning reduces creativity
(b) Planning may not work in a dynamic environment
(c) Planning involves huge costs
(d) None of the above

46. Which of the following statement is false with respect to principles of management?
(a) The principles of management are formed by experience and collective wisdom of managers as well as experimentation.
(b) The principles of management are not rigid prescriptions, which have to be followed absolutely.
(c) Management principles aim at influencing behaviour of human beings.
(d) The application of principles of management is not contingent or dependent upon the prevailing situation at a particular point of time.

47. 20% discount is given on One Plus smart phone by Amazon India for four days i.e., from 15^th August to 18th August, only. Identify the promotion tool used.
(a) Public relation
(b) Advertisement
(c) Sales promotion
(d) Personal selling

48. For the following two statements, choose the correct option.
Statement I Planning will be a futile exercise if it is not acted upon or implemented.
Statement II Planning is time consuming and sometimes not much time is left for its implementation.
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

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
Sureksha Pvt. Ltd. is a well-established knowledge process outsourcing company with experienced specialists in different areas. The company provides services for a whole cross section of clients from multinational corporations to hotels, corporate houses, residences, embassies, educational institutions, industrial establishments, multinational companies, ATMs, etc. The effect of sound management is noticeable in an organisation as the employees are happy and satisfied.
Considering it to be the need of the hour, the company wants to introduce new system of accounting. Initially, there is some resistance from the accounting staff but when manager explains the purpose, provides training and motivates with additional rewards, the employees accept the change and cooperate with him.

49. Identify any one feature of management discussed above.
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is intangible
(d) Management is a group activity

50. Identify the type of objective of management not discussed above.
(a) Organisational
(b) Personal
(c) Social
(d) All of these

51. Identify the level of management which does not interact with the work force directly.
(a) Supervisory management
(b) Operational management
(c) First line managers
(d) Middle level management

52. Identify the related function of management which has helped the company to introduce changes in the organisation.
(a) Planning
(b) Directing
(c) Controlling
(d) Organising

53. “Considering it to be the need of the hour, the company wants to introduce new system of accounting.” Which feature of management is highlighted in the given lines?
(a) Continuous process
(b) Dynamic function
(c) Goal oriented
(d) Pervasive

54. “But when manager explains the purpose, provides training and motivates with additional rewards, the employees accept the change and cooperate with him.” Which importance of management is highlighted in the above lines?
(a) Management improves efficiency
(b) Management helps in achieving personal objectives
(c) Management helps in developing society
(d) None of the above

55. ‘Neerja Milk Producer Pvt. Ltd.’was established to produce tasty and nutritious dry milk for small children. The company gave its product the brand name ‘Mother’s Love’. The company publicised its product very much and produced the goods of supreme quality. Being impressed by the quality of the product, the people purchased the ‘Mother’s Love’ brand in no time. Here one particular thing was that the company had lain its full emphasis on the packaging of their product. On the milk box were written the ‘instructions of use’. Besides, it was also written that ‘mother’s milk is the best’. To write this was the legal requirement. The company was very much successful and within a days, it became the leader in its industry. Which ‘dimension of the business environment’ is perceived from the event quoted above?
(a) Technological environment
(b) Political environment
(c) Legal environment
(d) Economic environment

56. In order to improve upon its competitive edge, Khushboo Limited has changed the packaging of its hair care products. They are now available in a consumer friendly design, which has a nozzle attached to the lid so that at the time of usage, the consumer doesn’t need to open the cap of the bottle. Name the marketing function being explained in the given lines.
(a) Product designing and development
(b) Customer support services
(c) Promotion
(d) Physical distribution

57. Drishti Limited is a chain of trusted optical centers for prescription and fashion eyewear.
In order to raise the level of buyers’ satisfaction, the company has decided to caters to affluent people with a range of premium sunglasses for men, women and create a special section in each of its outlets for handling customer complaints and adjustment requirements. Identify the type of marketing function described in the given lines.
(a) Product designing and development
(b) Customer support services
(c) Promotion
(d) Physical distribution

58. Mr. Sanjiv Gupta decided to double the production of his company. Now he is going to translate his decision into reality. Here, he is also thinking how many additional/extra machines and workers will be required to achieve the production target. His dream will be possible to be realised only after the arrangement for these extra sources are done.
Which step of ‘planning process’, Mr. Gupta is going to start in the above event?
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action

59. The production manager of Prem Ltd. instructs a salesman to give discount to customers at the time of selling, whereas the marketing manager instructs them not to allow any discount. Which principle of management is being violated in this case?
(a) Unity of command
(b) Unity of direction
(c) Equity
(d) Order

60. ‘We are the Best’ Public School, though is a disciplined organisation, lacks in well-defined rules and regulations. With passage of time, the management of the school finds out that if there are proper rules and regulations for the students and the teachers, the result of the school will improve.
Which nature of principles of management is highlighted here?
(a) General guidelines
(b) Cause and effect relationship
(c) Universally applicability
(d) Mainly behavioural