Class 12 Business Studies Sample Paper

CBSE Class 12 Business Studies Sample Paper

Time: 3:00 hour/M.M.-80

General Instructions

  • Answer to questions carrying 1 mark (1 to 20) may be from one word to one sentence.
  • Answer to questions carrying 3 marks (21 to 25) may be from 5 to 75 words.
  • Answer to questions Carrying 4-5 marks (26 to 28 & 29 to 31) may be about 150 words.
  • Answer to questions carrying 6 marks (32 to 34) may be about 200 words.
  • Attempt all parts of a question together.


1- In an organization, employees hesitate to express their feelings and suggestions. They do not take initiative to express their problems and suggestions. Suggest the element of directing suitable for the given situation.

2- Which principle of management is violated in informal organizations?

3- The overall financial health of a business is determined by the quality of its financial management’. In the light of above statement, discuss some of the aspects which affect the financial health of the company.

4- What does the term span of management refer to?

5- Some products have certain unique features. They attract a significant group of buyers Identify the kind of product.

6- Which test helps in knowing a person’s emotions, maturity or ethics?

7- Financing should be done in such a way that it should be able to cater to additional requirements of funds in future. State true or false.

8- ‘Auto India Ltd offered to sell their new scooter, at about 4,000 less than the usual price’. Here, company has used discount technique for sales promotion. State true or false.

9- Control is a costly affair as it involves a lot of expenditure, time and effort. State true or false.

10- Internal sources create a large pool of candidates to choose from for the organization, State true or false.

11- ___________ is a series of managerial positions from top to bottom.

a) Levels of management

b) Management as a science

c) Production manager and divisional header

d) None of thee

12- How many principles of management were developed by Fayol?

a) 13

b) 14

c) 12

d) 10

13- Which environment describes characteristics of society in which the organization exists?

a) Political environment

b) Technological environment

c) Social environment

d) Legal Environment

14- Which of the following is included in political environment of business?

a) Constitutional framework

b) Political ideology

c) Political stability

d) All of the above

15- Which of the following is not an external Limitations of planning?

a) Unforeseen natural calamities

b) Political outlook

c) Huge costs

d) None of these

16- Micky industries wants to hire staff for its chemicals division. The personnel department suggest to participate in placement programme organised by different colleges in Delhi University. Identify the source of recruitment indicated here.

a) Campus Recruitment

b) Web Publishing

c) Casual Callers

d) None of these

17- Planning evolves_________ It Is essentially the process of choosing among various alternatives.

a) mental scene

b) decision making

c) the wasteful activities

d) Both (a) and (b)

18- Which of the following statement is not correct?

a) In autocratic leadership, there is no delegation of authority

b) Free-rein leadership presents full freedom to subordinates in decision making.

c) Democratic leadership parents participation, discussion and affirmation of the subordinates.

d) An autocratic leadership is preferred by subordinates.

19- An unsatisfied need of an individual create___________ which stimulates his drive.

a) Peace

b) Tension

c) Satisfaction

d) None of these

20- Controlling function of organization is

a) forward looking

b) backward looking

c) forward as well as backward looking

d) None of the above

21- Diwali, Christmas, Eid are the auspicious occasion of our country. Producers are offering varieties of cards, gifts, sweets, clothes, etc. Identify and explain the business environment depicted in these lines.

22- How can informal communication help to supplement formal communication model?

23- Harry has 500 shares of Religare Ltd. Lately, the company has come out with a fresh issue of shares and Harry received an offer to buy one more share for every two share held by him. Identity the type of issue. Also, explain two more methods of raising funds through this type of issue.

24- ‘Pan Masala Chabana Swasthya ke liye hanikarak hai’. This statutory warning is compulsory to be mentioned on the labels of the product. Identity and discuss the environment which is associated with this example.


‘Management is a profession like medical or legal profession. Give reasons to defend or refute this statement.

25- Ashok purchased a laptop for Rs. 45,000 from Akash Enterprises and found its keypad detective. Despite many complaints the defect was not rectified.

i) Where can he file his complaint?

ii) What remedies can be seek?

26- To promote orderly and healthy growth of securities market, SEBI was set-up. Explain the objectives that SEBI is destined to achieve.

27- ‘XPRES’ a well-known international beauty brand. The policy of the company is to spend more on promotional activities than spending on standardization of product. Suggest the company to spend more on standardization, by giving reasons.


‘Find wants and fill them’. ‘Create products and sell them’ are the two important concepts of marketing, Identify and distinguish between them.

28- ‘Planning is not the remedy of all the deficiencies of the business’. In the light of the statement, discuss its four demerits.

29- Aryan is an overburdened manager and wants to take help from his subordinates. Suggest how and why?


Organizing is a significant function of management. Comment.

30- Ms Jaya has recently completed her post graduation in HR management and joined a steel manufacturing company. She has been given complete charge of the company’s HR department.

At which level of management, Jaya is working? Also, explain the functions she is supposed to perform.

31- Explain the two principles of controlling.


“Poorly motivated people can nullify the soundest organisatioin.” Comment.

32- Determining the relative proportion of various types of funds depends on various factors. Explain any six such factors.

33- In a factory, two personnel communicate with each other, without following the hierarchy. Identify the type of communication and explain the problems that may arise in this communication process.


Micros Ltd manufactures mobile phones for domestic as well as international markets, enjoying a good market share. But, lately, it has been experiencing problems because targets could not be met. It is therefore, planning to revamp its controlling system and take other steps necessary to rectify the problems, it is facing. Identify the probable benefits of this decision.

34- Which element of marketing mix affects the revenue and sales of a firm? Identify it and explain five factors affecting it.


What is meant by public relations? What roles does a public relations play in promotion of an organization?


New CBSE Sample Paper 2021 Class 11 Business Studies