Please refer to Sample Paper Class 12 Business Studies Term 1 Set B 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 B

SECTION – A

1. “Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions”. The feature of management as a science being referred to in the above statement is:
(A) Restricted entry
(B) Principles based on experimentation
(C) Professional association
(D) Ethical code of conduct

2. The term ‘business environment’ means:
(A) The sum total of all individuals
(B) The sum total of all institutions
(C) Other forces that are outside the control of a business enterprise
(D) All of the above

3. “Plans are prepared for a specific period of time, may be for a month, a quarter, or a year”. 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.

4. Which of the following is not related to ‘Organising as a Process’?
(A) Initiates implementation of plans.
(B) Provides framework for performing managerial and operating tasks.
(C) Clarifies jobs and working relationship.
(D) Effectively deploys resources.

5. Decentralisation awards greater autonomy to which of the following level of management?
(A) Lower levels of management
(B) Divisional or departmental heads
(C) Top levels of management
(D) Lower levels of management as well as divisional or departmental heads

6. In order to get feedback about its recently launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited.
(A) Standardisation
(B) Product designing
(C) Customer support service
(D) Gathering and analysing market information

7. “A marketer of colour TV, having 10 percent of the current market share in the country, aims at enhancing his market share to 20 percent, in the next three years.”
Identify the function of marketing highlighted in the above text.
(A) Gathering and Analysing Market Information
(B) Marketing Planning
(C) Product Designing and Development
(D) Customer Support Services

8. The main focus of concept is the existing product.
(A) Product
(B) Promotion
(C) Marketing
(D) Selling

9. Which of the following is an advantage of functional structure?
(A) Leads to occupational specialisation.
(B) Promotes control and coordination within a department.
(C) Helps in increasing managerial and operational efficiency.
(D) All of the above.

10. 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

11. The principle of states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’.
(A) Stability of Personnel
(B) Equity
(C) Order
(D) Initiative

12. It is determined that standard output per worker per day is 10 units and those who made standard or more than standard will get ₹50 per unit and those below will get ₹40 per unit. Now an efficient worker making 11 units will get 11 × ₹50 = ₹550 per day whereas a worker who makes 9 units will get 9 × ₹40 = ₹360 per day.
Identify the technique of scientific study mentioned in the above text.
(A) Differential Piece Wage System
(B) Fatigue study
(C) Motion study
(D) Method study

13. Management is a activity that has three main dimensions.
(A) Complex
(B) Simple
(C) Effortless
(D) None of these

14. “The significance of political conditions in business success lies in the predictability of business activities under stable political conditions”.
Which of the following dimension of business environment is described in the above lines?
(A) Legal
(B) Economic
(C) Social
(D) Political

15. “Social, political, legal and technological conditions have impact on all business enterprises and thus may affect an individual firm only indirectly”. Identify the force of one of the features of business environment is.
(A) External force
(B) Specific force
(C) General force
(D) Infernal force

16. “If the end result is clear it becomes easier to work towards the goal.” The step in the process of planning being referred to in the above statement is:
(A) Implementing the plan
(B) Selecting one best alternative
(C) Evaluating alternative course of action
(D) Setting objectives

17. Which of the following statements is incorrect?
(A) Superior-Subordinate relationship is the source of origin of ‘Responsibility’.
(B) Authority arises from the established ‘scalar chain’ which links various job positions and levels of an organisation.
(C) Centralisation leads to quick decision making.
(D) None of the above

18. Which of the following functions of marketing helps in building customer’s loyalty and in promoting its sale?
(A) Standardisation
(B) Branding
(C) Pricing of Products
(D) Grading

19. Which of the following statements is true regarding 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

20. Why labelling is important?
(A) Describe the Product and Specify its Contents.
(B) Identification of the Product or Brand.
(C) Grading of Products.
(D) All of the above

21. is an unpaid form of communication.
(A) Personal selling
(B) Public relations
(C) Advertisement
(D) Publicity

22. Planning may not work in environment.
(A) Constant
(B) Stable
(C) Dynamic
(D) None of these

23. “Rise in the disposable income of people due to increase in the gross domestic product of a country creates increasing demand for products.” Identify the dimension of business environment highlighted in the above text?
(A) Social
(B) Economic
(D) Legal
(D) Political

24. The principles of management are formed by the
(A) Experience of managers
(B) Collective wisdom of managers
(C) Experimentation of managers
(D) All of the above

SECTION – B

25. Rajesh owes a company of manufacturing electronic appliances. He was a successful entrepreneur. For this, he has acquired professional knowledge, training and a desirable qualification from Indian Institutes of Management (IIMs) in India. He feels that all over the world there is marked growth in management but still it is not considered to be a full-fledged profession for certain reasons.
Identify the feature of management as a profession highlighted in the above text.
(A) Management as a discipline.
(B) All professions are bound by a code of conduct
(C) Both (A) and (B)
(D) None of these

26. Which of the following statement is incorrect with respect to features of planning?
(A) Planning lays down the base for staffing functions of management.
(B) Planning is required at top level of management.
(C) Both (A) and (B)
(D) None of these

27. While ‘selecting an alternative’ under the planning process, which of the following are considered?
(A) Combination of plans may be selected instead of one best course.
(B) Subjectivity and manager’s experience or judgment plays a role.
(C) The most feasible, profitable plan with least negative consequences is chosen.
(D) All of the above

28. For the following two statements choose the correct option:
Statement I: Delegation develops in the subordinate the ability to deal effectively with challenges and helps them to realise their full potential.
Statement II: Organising provides a clear description of jobs and related duties. 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.

29. “A philosophy implies selective dispersal of authority because it propagates the belief that people are competent, capable and resourceful.” Identify the philosophy in this case.
(A) Delegation
(B) Decentralization
(C) Authority
(D) Accountability

30. In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:
Assertion (A): Marketing orientation implies that focus on satisfaction of customer’s needs is the key to the success of any organisation in the market.
Reason (R): The marketing concept is based on the identification of market or customer who are chosen as the target of marketing effort.
Options are:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(C) (A) is correct but (R) are wrong.
(D) (A) is wrong but (R) are correct.

31. Which of the following statements is incorrect with respect to the various aspects of Marketing Mix?
(A) The advantage of registering Trade Mark is to get exclusive legal rights for its use and no other firm can use this mark to sell similar goods.
(B) Promotion mix refers to the decisions related to sales promotion tools used by an organisation to achieve its objectives.
(C) Product mix includes activities that are involved in transferring the ownership to customers and to make the product available at the right place at the right time.
(D) None of the above.

32. ‘Pappu Sweets Makers’ is a sweet making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. It is expected that employees who are performing similar tasks work under the same department. So, the company now has HR, Marketing and Finance departments. The division is based on specific functions.
Which type of organisation structure is discussed in the above case?
(A) Functional
(B) Divisional
(C) Linear
(D) None of the above

33. 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

34. Which of the following statement is true with respect to business environment:
(A) Business environment is the sum total of all things external to business.
(B) Business environment is a relative concept.
(C) Both (A) and (B)
(D) None of the above

35. Aryan was working as a sales person in an organization where he has to work under Mr. Goel (Marketing manager) and Mr. Agarwal (Finance manager). Aryan was asked by Mr. Goel to give 20% discount to the customer while selling a product whereas he was asked by Mr. Agarwal to give 10% discount only.
Which Principle of Management are being violated in the above text?
(A) Unity of command
(B) Order
(C) Equity
(D) Unity of direction

36. Legal Environment includes:
(A) Laws passed by the government
(B) Administrative orders
(C) Court judgments
(D) All of these

37. Which of the following statements is true regarding planning?
(A) Once plans are made to decide the future course of action, the management may not be in a position to change them.
(B) Planning is a one-time process.
(C) Planning is required only at Top Level of Management as plans are made by Top Level of Management.
(D) Planning always leads to success.

38. Which of the following difference between decentralization and delegation is correct?
(A) Delegation is a compulsory act because no individual can perform all tasks on his own whereas decentralization is an optional policy decision.
(B) Delegation is a process followed to share tasks whereas decentralization is the result of the policy decision of the top management.
(C) Both (A) and (B)
(D) None of these

39. Which step in the process of organizing is essential for effective performance that a proper match is made between the nature of a job and the ability of an individual.
(A) Establishing authority and reporting relationships
(B) Assignment of duties
(C) Identification and division of work
(D) Departmentalisation

40. “Tea produced in Assam has to be transported not only within the state but to other for off places like Tamil Nadu, Punjab, Jammu and Kashmir” Identify the function of Marketing.
(A) Transportation
(B) Warehousing
(C) Grading
(D) Planning

41. For the following two statements choose the correct option:
Statement I: The organisation structure is the framework within which managerial and operating tasks are performed.
Statement II: Organisation structure is the outcome of the organising process. 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.

42. 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

43. “It is not always true that just, because a plan has worked before, it will work again.” Identify the related imitation of planning.
(A) Planning leads to rigidity
(B) Planning reduces creativity
(C) Planning may not work in dynamic environment
(D) Planning does not guarantee success

44. A company is in a process of recruitment of employees for its upcoming projects. After recruitment ten new employees joined the company. They have to work under Mr. Mahesh, the production manager. Mr. Mahesh noticed some employees are not working efficiently and are not able to give desired results. On finding out he came to know that the employees are new to the environment of the organisation and have no idea about the demanding jobs. So, he decided to give them two months of time to show their results.
Which of the following Fayol principle of management is discussed in the above case?
(A) Equity
(B) Order
(C) Division of work
(D) Stability of Personnel

45. For the following two statements choose the correct option:
Statement I: The principles of management are formed by experience and collective wisdom of managers as well as experimentation.
Statement II: The principles of management are not rigid prescriptions, which have to be followed absolutely.
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.

46. ABC Ltd. had been taken over by XYZ Ltd. Since then it enjoys a good reputation in the market. The company had laid down multiple courses of action to meet the challenge of adverse situations. In 2021, the company has a set back and suffered loss due to outbreak of COVID 19. The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set target during hard time.
“The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set target during that hard time.” Identify the step followed over here in the process of planning.
(A) Implementation of plan
(B) Timely execution of projects
(C) Follow up
(D) To prepare alternative course of action

47. “A popular brand of Hair Conditioners comes in different categories for different hair, say for normal hair and for other categories”. Identify the function of labelling in the above example.
(A) Providing information required by law
(B) Describe the product and specify its contents
(C) Grading of products
(D) Promotion of products

48. Crepton Ltd. is a mobile manufacturing company. On the eve of New Year, they have launched a new mobile FX35 in their existing list of products. The top management is planning the marketing strategies in order to convince people to buy their newly launched product. To increase the sales, the company is offering ‘scratch a card’ option to win instant gifts and coupons on a new year day. Also, additional 10% discount will be granted to the customers who will buy on the new year day.
Identify the type of promotion strategy adopted by the company to boost the sales of mobiles.
(A) Advertising
(B) Sales Promotion
(C) Publicity
(D) Public relations

SECTION – C

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

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle- level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

49. Which characteristic of coordination has been highlighted in the above case?
(A) Unity of action
(B) Responsibility of all managers
(C) Integration of group efforts
(D) All of the above

50. Which of the following importance of coordination has been described in the above case?
(A) Functional differentiation
(B) Growth in size
(C) Specialisation
(D) All of the above

51. Which type of objective is fulfilled here?
(A) Personal
(B) Social
(C) Organizational
(D) None of the above

52. At which level of management does Sanjeev work?
(A) Top
(B) Middle
(C) Lower
(D) None of the above

53. Which of the following task is performed by the middle level managers?
(A) They are responsible for all the activities of first line managers.
(B) They are responsible for all the activities of the business and for its impact on society.
(C) They formulate overall organisational goals and strategies for their achievement.
(D) None of these

54. “He gives a common direction to the individual effort in achieving the overall goal of the organisation.” Identify the importance of management highlighted in the above text.
(A) Management helps in achieving group goals.
(B) Management increases efficiency.
(C) Management creates a dynamic organisation.
(D) Management helps in achieving personal objectives.

55. “Happy homes” are the leading manufacturers of home decors items, bedsheets curtains etc. The owner of a company suddenly notice that the sales of the company are deteriorating. After analysis, he came to know that the productivity of workers has fallen. He decided to increase the productivity of his workers. For this he will be hiring operational managers and each single worker will have to work under eight managers.
Which technique of scientific management is followed here?
(A) Functional Foremanship
(B) Time study
(C) Method study
(D) Motion study

56. Melbon Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹50 per unit and those below will get ₹40 per unit.
What will be the earnings of a worker producing 15 units?
(A) ₹600
(B) ₹500
(C) ₹400
(D) ₹750

57. “Even after opening up of the Indian economy in 1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business.” Identify the dimension of the business environment which led to creation of the negative impact on business.
(A) Social Environment
(B) Technological Environment
(C) Political Environment
(D) Legal Environment

58. A company owned by Vikas Malhotra has a set target and objectives to achieve in the coming year. He informed the production manager in one of the meeting that the company has to produce 1 million units of the product every day to meet its objectives and Mr. Vikas has decided to monitor the performance of production manager so as to control it accordingly.
Identify the importance of planning in the above case.
(A) Planning reduces overlapping and wasteful activities.
(B) Planning facilitates decision making.
(C) Planning establishes standards for controlling.
(D) Planning reduces the risks of uncertainty.

59. Prateek took his nephew Raman for shopping to ‘Hamleys’ to buy him a toy car for his birthday. Raman was delighted when on payment of the bag, he got a school bag along with the toy car free of cost. Identify which technique of sales promotion is being used by the company.
(A) Quantity gift
(B) Product combinations
(C) Lucky draw
(D) Sampling

60. Sumit has been using ‘Smooth Shave’’, a famous shaving cream available in the market. On watching numerous advertisements in the television, he decided to try a new brand of shaving cream. When he went to the near-by store to purchase the same, he saw shaving creams by other producers making similar claims. Hence, he could not make up his mind as to which shaving cream to purchase.
Which of the following objection to advertising is being discussed in this case?
(A) Undermines social values
(B) Confuses the buyers
(C) Encourages sale of inferior products
(D) Adds to cost