Please refer to Sample Paper Class 12 Business Studies Term 1 Set A with solutions provided below. We have provided CBSE Sample Papers for Class 12 Business Studies as per the latest paper pattern and examination guidelines for Standard 12 Business Studies issued by CBSE for the current academic year. The below provided Sample Guess paper will help you to practice and understand what type of questions can be expected in the Class 12 Business Studies exam.

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

SECTION – A

1. “The activities involved in managing an enterprise are common to all organisations whether economic, social or political.” Which characteristic of management is highlighted in the above statement?
(A) Management is all pervasive.
(B) Management is multidimensional.
(C) Management is a continuous process.
(D) Management is a group activity.

2. Which of the following statements is false with respect to Planning?
(A) It is one of the basic managerial functions.
(B) Planning is closely connected with creativity and innovation.
(C) It requires taking decisions.
(D) None of the above

3. Which function of marketing is concerned with the cost and location of target market?
(A) Promotion
(B) Warehousing
(C) Transportation
(D) Branding

4. Name the process of working with and through others to effectively achieve organizational objectives by efficiently using limited resources in a changing environment.
(A) Management
(B) Planning
(C) Organising
(D) Controlling

5. Management principles are very _________ whereas pure science principles are rigid.
(A) Flexible
(B) Contingent
(C) Dependent
(D) Absolute

6. “A car manufacturer offers to sell a particular brand of car at a discount of ₹ 10,000 for a limited period”. Identify the sales promotion activity in the above example.
(A) Refund
(B) Product combinations
(C) Rebate
(D) Discount

7. Identify the nature of management which specifies that “A manager applies acquired knowledge in a personalised and skillful manner in the light of the realities of a given situation.”
(A) Management as a Science
(B) Management as an Art
(C) Management as a Profession
(D) All of these

8. That part of a brand which can be recognized but which is not utterable is called ___________.
(A) Brand
(B) Brand name
(C) Brand mark
(D) Trade mark

9. Delegation refers to the_____________ transfer of authority.
(A) Downward
(B) Upward
(C) Diagonal
(D) None of these

10. “By stating in advance how work is to be done planning provides direction for action.” is suggested by which of the following importance of planning:
(A) Planning facilitates decision making.
(B) Planning promotes innovative ideas.
(C) Planning provides direction.
(D) Planning reduces the risks of uncertainty.

11. Which of the following is an advantage of divisional structure?
(A) Promotes inflexibility
(B) Lead to increase in costs
(C) Provides managers with the authority to supervise
(D) Product specialization helps in the development of varied skills

12. “Top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-to-day operational planning is done by supervisors”.
Which of the following feature of planning is highlighted in the above text?
(A) Planning focuses on achieving objectives.
(B) Planning is pervasive.
(C) Planning is continuous.
(D) None of the above

13. Which of the following statement is correct with respect to marketing management?
(A) Marketing management involves performance of various functions such as analysing and planning the marketing activities.
(B) Marketing management generally is related to creation of demand.
(C) The focus of marketing management is on achieving desired exchange outcomes with the target markets.
(D) All of the above

14. “The significance of political conditions in business success lies in the predictability of business activities under stable political conditions”, is a major element of which of the following components of the Business Environment?
(A) Social Environment
(B) Legal Environment
(C) Political Environment
(D) Economic Environment

15. Why packaging and labelling have become so important in modern day marketing?
(A) It protects the product.
(B) Serves as a promotional tool.
(C) Both (A) and (B)
(D) None of these

16. Which of the following is the first step in the process of planning?
(A) Developing Premises
(B) Evaluating alternative courses
(C) Identifying alternative courses of action
(D) None of these

17. _________ refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.
(A) Standardisation
(B) Packaging
(C) Labelling
(D) Grading

18. Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’. Which dimension of the business environment is highlighted in the above statement?
(A) Social Environment
(B) Legal Environment
(C) Political Environment
(D) Economic Environment

19. Management principles are derived by_____________
(A) Observation
(B) Experimentation
(C) Personal experiences
(D) All of the above

20. Which of the following importance of organizing “reduces the workload as well as enhances productivity”?
(A) Clarity in working relationships
(B) Benefits of specialisation
(C) Adaptation to change
(D) Effective administration

21. is referred to as the essence of marketing.
(A) Exchange
(B) Personal Selling
(C) Product
(D) None of these

22. Business environment is a phenomenon.
(A) Simple
(B) Flexible
(C) Complex
(D) None of these

23. A structure is an organisational design that groups similar or related jobs together.
(A) Divisional
(B) Functional
(C) Both (A) and (B)
(D) None of these

24. According to Taylor, there should be an almost equal division of work and responsibility between workers and management.
Identify the principle of Scientific management being discussed above.
(A) Harmony, not discord
(B) Science, not rule of thumb
(C) Development of each and every person to his or her greatest efficiency and prosperity
(D) Cooperation, not individualism

SECTION-B

25. Even though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the business environment is being highlighted in the above statement?
(A) Specific and general forces
(B) Dynamic nature
(C) Relativity
(D) All of these

26. “Monitoring the plans is equally important to ensure that objectives are achieved”. Which of the following step of planning process is highlighted in the above lines?
(A) Implementing the Plan
(B) Selecting One Best Alternative
(C) Evaluating Alternative Course of Action
(D) Follow Up Action

27. “The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc.” Identify the concept of marketing management highlighted by this statement.
(A) Production concept
(B) Product Concept
(C) Societal concept
(D) Marketing Concept

28. Kartik, who was running a grocery shop decided to sell his grocery items online so that he can reach out to mass customers over large geographical area and increase its sales. He created a website with the name “Dailyneeds.com” for taking orders online. He earned huge profits by selling the items online. Identify and explain the dimensions of business environment discussed in the above case.
(A) Social
(B) Technological
(C) Legal
(D) Political

29. Oberoi Group of Companies is manufacturing washing machines. A business needs to add to its prospects in the long run, for this it is important for the business to grow. The company decided to diversify and to increase the manufacturing of number of products such televisions, water coolers, refrigerators, etc. Which economic objective of management does the business seek to fulfill?
(A) Survival
(B) Growth
(C) Profit
(D) Efficiency

30. Which of the following functions are involved in the performance of marketing management?
(A) Analysing and planning the marketing activities.
(B) Implementing marketing plans.
(C) Setting control mechanism.
(D) All of the above

31. Markbon is a company which deals with providing car accessories and other electronic parts all over the country. Mr. Sahil is the CEO of the company, Mr. Rakesh is a HR manager, Mr. Anil is a marketing manager and Mr. Kush is a finance manager. Mr. Sahil tries its level best to synchronize the activities of different departments in the best possible manner to achieve the organizational goals. Identify the concept of management highlighted above.
(A) Organizing
(B) Directing
(C) Coordination
(D) Planning

32. For the following two statements choose the correct option:
Statement I: Responsibility is derived from accountability and accountability is derived from authority.
Statement II: When an employee is given responsibility for a job, he must also be given the degree of authority necessary to carry it out.
Choose the correct option from the options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both the statements are correct.
(D) Both the statements are incorrect.

33. 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 her/him not to offer more than 5% discount. The Principle of management given by Fayol being violated is
(A) Remuneration
(B) Equity
(C) Discipline
(D) Unity of Command

34. Bimal, the owner of ‘Reliable Constructions’ decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 20 members to list the different ways that can be adopted for keeping the area clean. An organisational design was chosen which grouped similar activities together in order to minimize duplication of effort. After identification and grouping of these activities, the work was allocated among the different members.
Which step under the process of organizing is being referred to in this line?
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing reporting relationships

35. Making timetable in an educational institute is an example of
(A) Organising
(B) Coordination
(C) Controlling
(D) None of these

36. Planning requires application of the mind involving foresight, intelligent imagination and sound judgement. The feature of planning being referred to in the above statement is:
(A) Planning is a continuous process.
(B) Planning is futuristic.
(C) Planning is pervasive.
(D) Planning is a mental exercise.

37. Regal Ltd. has appointed Mr. Akash Ahuja as a production manager. What will be his basic task?
(A) To integrate diverse elements and coordinate activities of different departments.
(B) To interpret the policies framed by top management.
(C) To oversee the efforts of the workforce.
(D) To formulate overall organisational goals.

38. What is a marketer’s job in an organisation?
(A) To identify needs of the target customers.
(B) To develop products and services that satisfy needs.
(C) Both (A) and (B)
(D) None of the above

39. Ram and Mohan are the managing directors of two different companies. They both met at a business conference. While discussing about their businesses Ram said to Mohan in order to be successful, an organisation must change itself and its goals according to the needs of the environment.
Which characteristic of management was the Ram referring?
(A) Management is a continuous process.
(B) Management is all pervasive.
(C) Management is multidimensional.
(D) Management is a dynamic function.

40. Which of the following objectives of the management is related to the usage of environmentally friendly methods of production?
(A) Organisational Objectives
(B) Social objectives
(C) Personal objectives
(D) None of these

41. Planning is always .
(A) Materialistic
(B) Futuristic
(C) Conservative
(D) None of these

42. The objective of time study is to:
(A) Determine the number of workers to be employed
(B) Frame suitable incentive schemes
(C) Determine labour costs
(D) All of the above

43. For the following two statements choose the correct option:
Statement I: Under the production concept, greater emphasis was placed on improving the production and distribution efficiency of the firms.
Statement II: Product improvement became the key to profit maximisation of a firm, under the concept of product orientation.
Choose the correct option from the options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both the statements are correct.
(D) Both the statements are incorrect.

44. Ramco Ltd. has recently adopted a new technology for the greater good of the people and leads the path towards growth and development. The following importance of management is highlighted above:
(A) Management helps in achieving personal objectives.
(B) Management helps in the development of society.
(C) Management creates a dynamic organisation.
(D) Management increases efficiency.

45. Sana inherited a 20-acre ancestral land from her grandparents. She decided to venture into agriculture. For this purpose, she set out specific goals, objectives and activities. She eventually launched her own company Agricultural Solutions Ltd. She wanted to be sure that the activities effectively met the best interests of the company and the farmers. Hence, she prepared an annual plan for production, sales and marketing through sales forecasting. She also realized that farmers were growing only one or two crops. On account of this; the land remained idle for the rest of the year. She identified and evaluated different alternatives through which the farms could be utilized throughout the year.
“Thus, she identified and evaluated different alternatives through which the farms could be utilized throughout the year.” Which feature of planning is depicted in the statement?
(A) Planning is pervasive.
(B) Planning is continuous.
(C) Planning is futuristic.
(D) Planning involves decision-making.

46. The objective of one of the techniques of scientific management is “to reduce a given line or product to fixed types, sizes and characteristics.” Identify the technique of scientific management.
(A) Standardization
(B) Method study
(C) Motion study
(D) Time study

47. The offer is for a cell phone, available in four different versions, on the basis of certain features such as size of memory, television viewing, internet, camera, etc., for a given price, say between ₹5,000 and ₹20,000 (depending on the model selected), available for sale at say firm’s exclusive shops in and around all metropolitan cities in the country.
The important feature of marketing illustrated above is:
(A) Exchange mechanism
(B) Customer value
(C) Creating a market offering
(D) Needs and wants

48. Assertion (A): Planning reduces overlapping and wasteful activities.
Reason (R): Planning helps in detecting inefficiencies and taking corrective measures to deal with them.
(A) Both (A) and (R) are correct.
(B) (A) is correct (R) is incorrect.
(C) Both (A) and (R) are correct, and R is the correct explanation of A.
(D) Both (A) and (R) are correct, and R is not the correct explanation of A.

SECTION – C

Read the following text and answer question number 49-54 on the basis of the same.

BBS international school is looking forward to celebrate his annual sports day in school in the coming month. It is an occasion where pupils, teachers, and parents come together for a day of competitive sport. The principal and the sports teachers have started planning different races, dances and events and also started assigning the duties and responsibilities to various staff members and students accordingly. The work was identified and divided in accordance with previously determined plans. Different departments and committees were formed to look into and to organize different activities of sports day such as welcoming of parents, handing out refreshments, overseeing races, blowing whistles, or awarding medals and prizes etc. All the decision-making authority is retained by the Principal. She ensures that there should be proper usage of all material, financial and human resources. The responsibility of refreshment was given to Mr. Gopal, who was an art teacher in school. Mr. Gopal calculated the number of students, staff and parents and came to the conclusion that minimum 1400 audience will be gathered on the sports day. Accordingly, he decided to order 1500 snack boxes. He gave the order to the local bakery shop and made payment for 700 boxes in advance. On the day of the sports day only 500 snack boxes were delivered. The distribution and counting of medals were assigned to Ms. Ruchi. But Ms. Ruchi was ignoring her responsibilities. So, the Principal decided to appoint Ms. Salma to work with Ms. Ruchi. Ruchi did not like to work with Ms. Salma. Most of the times, Principal noticed the tension developing between the two. However, she didn’t want to get involved in their personal issues as long as the work was completed effectively and efficiently by them. One day, the tension between them reached the heights and Ms. Ruchi complained to Principal stating that her duties were being largely taken over by Ms. Salma. Principal issued the order stating the clear allocation of the jobs and related duties between the two. She further clarified the working relationship between them by specifying who will take reasonability of which events as the school has planned many events for the sports day. This helped in reducing the workload, enhancing productivity and removing ambiguity.

49. Which of the following importance of organizing is highlighted in the below mentioned lines:
“She further clarified the working relationship between them by specifying who will take reasonability of which events as the school has planned many events for the sports day”.
(A) Optimum utilisation of resources
(B) Adaptation to change
(C) Effective administration
(D) Clarity in working relationships

50. Which of the following concept of organization is described in the below mentioned lines: “All the decision-making authority is retained by the Principal.”
(A) Centralization
(B) Decentralization
(C) Authority
(D) Responsibility

51. Which of the following elements of delegation is being described in the below mentioned lines with respect to Mr. Gopal:
“He decided to order 1500 snack boxes. He gave the order to the local bakery shop and made payment for 700 boxes in advance. On the day of the sports day only 500 snack boxes were delivered”.
(A) Authority and Responsibility
(B) Accountability and Responsibility
(C) Authority and Accountability
(D) None of these

52. Which of the following step in the process of organizing is highlighted in the line:
“The work was identified and divided in accordance with previously determined plans.”
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationships

53. Which step was succeeded in the process of organizing after the work was identified and divided in accordance with previously determined plans?
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationships

54. Which of the following importance of organization is described in the below mentioned lines: “She ensures that there should be proper usage of all material, financial and human resources.”
(A) Benefits of specialisation
(B) Optimum utilisation of resources
(C) Adaptation to change
(D) Clarity in working relationships

55. Airline companies have Internet and World Wide Web pages where customers can look for flight times, destinations and fares and book their tickets online. In addition, continuing innovations in different scientific and engineering fields such as lasers, robotics, biotechnology, food preservatives, medicine, telecommunication and synthetic fuels have provided numerous opportunities and threats for many different enterprises.
Which of the following dimensions of business environment is discussed in the above text?
(A) Social
(B) Political
(C) Legal
(D) Technological

56. Samay wanted to purchase a car with the latest standards and possessing features to minimize pollution. He saw an advertisement and subsequently visited the showroom of the company where the car was displayed. In his discussion, the marketing manager told Samay that the company is providing credit facilities, maintenance services and many other useful services on account of which the company is experiencing repeat sales and has been able to develop brand loyalty. Thus, marketing function is being discussed between the marketing manager and Samay.
(A) Branding
(B) Customer support service
(C) Promotion
(D) Physical distribution

57. Rohan is manufacturing lunch boxes for school going children. To maximize the profits, he decided to improve their quality and added a hot case to the boxes. As a result of this improvement in the product, its sale increased gradually. Which of the following marketing philosophy was involved?
(A) Product
(B) Prize
(C) Standard
(D) None of these

58. Mehta and Mehta Company has recently entered into the textile industry. Before setting objectives of the company and deciding what to do, the top management started recruiting the required staff and land up in recruiting more staff than what it is required in the company.
Which of the following feature of planning is ignored by Mehta and Mehta company in the above case?
(A) Planning is pervasive.
(B) Planning focuses on achieving objectives.
(C) Planning is a primary function of management.
(D) Planning is continuous.

59. Shashi joined ‘Fashion Ltd.’ as Head of Production Department and realized that company was not performing well. She developed the best method using several parameters right from deciding the sequence of operations, place of men, machines and raw materials till the delivery of the product to the customers. Identify the technique of scientific management being followed by Shashi.
(A) Motion study
(B) Fatigue study
(C) Method study
(D) Time study

60. Mahesh is the owner of a shoes company. The company was doing good and the size of the company has increased in two years span of time. The company has established a goodwill in a market and earning good profits. However, he takes all the important decisions on his own. The concentration of decision-making authority lies upon him. Even though the size of the organisation has increased yet he never considers the ideas and suggestions of his employees. He does not give any decision making authority to his employees.
Which principle of Fayol has been violated by Mahesh in the above case?
(A) Centralisation and Decentralisation
(B) Remuneration of Employees
(C) Unity of Direction
(D) Unity of Command