Please see below Class 12 Business Studies Sample Paper Term 1 Set A with solutions. We have provided Class 12 Business Studies Sample Papers with solutions designed by Business Studies teachers for Class 12 based on the latest examination pattern issued by CBSE. We have provided the following sample paper for Term 2 Class 12 Business Studies with answers. You will be able to understand the type of questions which can come in the upcoming exams.

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

Section A

1. ……… objectives of management consistently creates economic values for various sections of society.
(a) Organisational
(b) Social
(c) Personal
(d) Both Social and Personal

2. Planning ensures that the goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which ……… .
(a) position
(b) direction
(c) alternative
(d) option

3. Timex watch manufacturing company is a renowned company. It performs various activities like, market analysis, product designing or merchandising, packaging, warehousing, branding, pricing, promotion and selling. The company maintains good customer relations through various followup activities. This helps the company in procuring repeat sales orders.
Name the concept related to the activities mentioned in the above paragraph.
(a) Selling
(b) Marketing
(c) Production
(d) Promotion

4. ……… level of management passes on the instructions of management to the workers.
(a) Top
(b) Middle
(c) Supervisory
(d) None of these

5. According to the principle of ………, all units of an organisation should be moving towards the same objective through coordinated efforts.
(a) unity of direction
(b) unity of command
(b) discipline
(d) initiative

6. The societal marketing concept is the extension of the marketing concept, apart from the customer satisfaction, it pays attention to the social, … and … aspects of marketing.
(a) ethical and legal
(b) ethical and ecological
(c) legal and ecological
(d) personal and ecological

7. Which of the following is the function of low level management?
(a) To interact with the actual work force and pass on instructions of the middle management to the workers.
(b) To scan the business environment and its implications for the survival of the firm.
(c) To be responsible for implementing and controlling plans and strategies developed by top management.
(d) To integrate diverse elements and coordinate the activities of different departments.

8. ………… is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Standardising
(d) Grading

9. The organisation in which decision-making authority lies with the ………….. are termed as centralised organisations whereas those in which such authority is shared with ………….. are decentralised organisations.
(a) top level management, middle level management
(b) lower level management, middle level management
(c) top level management, lower level management
(d) middle level management, lower level management

10. After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at Goa airport to provide a healthy food option to the travelers. To begin with, she has decided to sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes, her planning does not work due to some unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her clients. In context of the above case, identify one of the limitations of planning which adversely affects Payal‘s business.
(a) Planning reduces creativity
(b) Planning may not guarantee success
(c) Planning may not work in dynamic environment
(d) Planning involves huge cost

11. Accountability refers to ……………… for the outcome of the assigned task.
(a) power
(b) right
(c) responsibility
(d) answerability

12. Competition in the market can also upset financial plans as sales targets have to be revised accordingly and cash budget also needed to be modified. Identify the limitation of planning.
(a) Planning may not work in dynamic environment
(b) Planning leads to rigidity
(c) Planning is time consuming (d) Planning involves decision-making

13. For the following two statements, choose the correct option.
Statement I Carton refers to the product’s immediate container.
Statement II Secondary package refers to additional layers of protection that are kept till the product is ready for use.
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

14. By being aware of the changes in business environment, enterprises can identify ……… and strategise ways to capitalise on them.
(a) opportunities
(b) threats
(c) warning signals
(d) political forces

15. ‘Products are not purchased but sold’, with which point of view is this statement associated?
(a) Product concept
(b) Selling concept
(c) Production concept
(d) Marketing concept

16. If ………… factor is not taken into consideration, conditions in the environment may change and all business plans may go waste.
(a) place
(b) time
(c) thinking
(d) other

17. Folk Ltd. is a leather bags manufacturing company. The company is using prohibited
animal skin to make leather bags, in order to satisfy some of its customers. Which marketing concept is being violated in the given case?
(a) Product concept
(b) Production concept
(c) Societal marketing concept
(d) Marketing concept

18. In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and legal dimension
(b) Technological dimension and political dimension
(c) Political dimension and social dimension
(d) Economic dimension and legal dimension

19. The principles of management enhance the understanding of the relationship between human and material resources for the achievement of organisational goals. Identify the feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural

20. Twelve students work for the school library in the summer vacations. One afternoon,
they are told to unload a shipment of new releases and stock the bookshelves. One student supervises the work by grouping students, dividing the work, assigning each group their quota and developing reporting relationships among them. Which function of management is highlighted in aforesaid situation?
(a) Staffing
(b) Controlling
(c) Directing
(d) Organising

21. The company can draw attention to new products by arranging sports and cultural events is called
(a) Advertising
(b) Public relation
(c) Sale promotion
(d) None of these

22. It may be difficult to know the extent of the relative impact of the social, economic, political, legal and technological factors on change in demand for product in the market. Identify the relevant feature of business environment being discussed above.
(a) Dynamic
(b) Complex
(c) Relativity
(d) Uncertainty

23. Himsagar Beverages Ltd., is engaged in manufacturing of tetra packed fruit juices. The target of the organisation is to manufacture 5,000 units in a day. The structure adopted by Himsagar Beverages Ltd., helps in increasing managerial and operational efficiency.
Which type of organisation is adopted by Himsagar Beverages Ltd. in the aforesaid situation?
(a) Decentralised organisation
(b) Divisional organisation
(c) Functional organisation
(d) Formal organisation

24. Which of the following statement is related to division of work?
(a) Resources should be divided equally among departments
(b) Work should be divided into smaller parts
(c) Subordinates should be divided among superiors
(d) Departments should be divided into sub sections

Section B

25. ……… component of business environment resulted in the relaxation of ban imposed on the Foreign Direct Investment?
(a) Economic environment
(b) Political environment
(c) Social environment
(d) Legal environment

26. An Indian information technology company, presently employing 10,000 people, desires to expand its business in manufacturing, trading, etc. It wants to become a global company. To achieve its objectives, it started shifting from a centralised to a decentralised management system. Identify the management function being performed by the company to become a decentralised company.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

27. While reading the label of a pack of aluminium foil, Rohan discovered that the product was manufactured at Hyderabad but was available for sale in many states across the country. Identify the function of marketing which has made this possible.
(a) Warehousing
(b) Standardisation and grading
(c) Transportation
(d) Promotion

28. Assertion (A) A businessman can influence or change the components of general and specific environment.
Reason (R) A businessman has to change his business policies according to the changes taking place in general environment.
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. Which of the following proves that management is not an exact science?
(a) Management has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as economics, sociology, psychology and mathematics. Like any other organised activity, management has its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have to be modified according to a given situation.
(d) Both (b) and (c)

30. The public relation department advise ……… to adopt certain programmes which will add to their public image and ensure that negative publicity does not take place at all.
(a) middle management
(b) lower management
(c) top management
(d) None of these

31. The process of coordinating the activities of an organisation begins at the ……… stage itself.
(a) planning
(b) staffing
(c) directing
(d) controlling

32. ……… reduces successively as we go down the corporate ladder.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Power

33. Simplification is ……… unnecessary varieties, sizes, and grades of product manufactured in the organisation.
(a) dividing
(b) adding
(c) eliminating
(d) including

34. For the following two statements, choose the correct option.
Statement I The reduction in workload by delegation is not just necessary because of limited capacity of an individual but also allows the manager to develop new methods and ways of performing tasks.
Statement II Organising helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges.
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

35. Assertion (A) Coordination gives a direction to the willing spirit.
Reason (R) Coordination is a voluntarily binding force between individuals and departments.
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)

36. A diwali mela was organised in a residential colony in Delhi. After work was assigned to each member of the welfare association, it was told that from whom he/she has to take orders and to whom he/she will be accountable. Identify the step in organising process being described above.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing authority relationship

37. “Every member of an organisation has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal. This requires team work and coordination of individual effort in a common direction.”
Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function

38. Assertion (A) Tata differentiates it’s three quality of tea with three different labels (Tata Agni ,Tata Premium and Tata Gold).
Reason (R) Labelling helps to describe a product and specify its contents. 
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. “Management has to achieve variety of objectives in all areas considering the interest of all stakeholders including shareholder, employees, customers and the government. The main objective of any organisation should be, to utilise human and material resources to the maximum possible advantage.” Identify the objective of management highlighted above.
(a) Organisational objective
(b) Social objective
(c) Personal objective
(d) None of these

40. “All the management practices are based on the same set of principles, what distinguishes a successful manager from a less successful one is the ability to put these principles into practice.” Identify the nature of management highlighted above.
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) Management is both science and art

41. Mrs. Sharma has joined a new organisation named Realistic Ltd. On her first day to office, she analysed that there were no different departments assigned for various product lines. She observed a separate team structure for each of them and also that they functioned independently of one another. From her analysis, what can we make out of the Realistic Ltd?
(a) It is a functional form of organisation
(b) Divisional structure is the way of the organisation
(c) The company follows the informal structure
(d) No observation can be made out of her analysis

42. For the following two statements, choose the correct option.
Statement I Employees should be shifted from one job to another at regular intervals.
Statement II Scientific management is knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way.
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. ‘Gulati Saree Kendra’ is of the view that leaving the customers alone will not help. 
Rather there is need to attract the customers towards it. In other words, goods are not bought but they have to be sold. The basis of this thinking is that the customers can be attracted. Keeping in view this thinking, companies concentrate their marketing efforts towards educating and attracting the customers. This company is therefore of the view to sell what you have. Identify the marketing philosophy as mentioned above.
(a) Selling philosophy
(b) Product philosophy
(c) Marketing philosophy
(d) Production philosophy

44. Why management is considered a multi-faceted concept?
(a) Because management is a complex activity that has three main dimensions management of work, management of people and management of operations.
(b) The activities involved in managing an enterprise are common to all organisations whether economic, social or political.
(c) The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all the managers at all the times.
(d) None of the above

45. Arrange the following steps in the delegation process in the correct sequence.
(i) Manager shares some of his authority
(ii) Manager deliberately passes some of his responsibilities to his subordinate
(iii) Manager creates accountability
(a) (ii), (iii), (i)
(b) (ii), (i), (iii)
(c) (i), (iii), (ii)
(d) (iii), (i), (ii)

46. Mr. A, plant superintendent of a company is disappointed. When he was on leave he was expecting his subordinates to take the remaining work to be finished. However he finds a new way of dealing with this problem. He develops a system of suggestion building from the side of workers. For this, a suggestion/complain box is to be kept where the workers can drop their advice and hence take steps from their side.
Which principle of management has been implemented here by the plant superintendent?
(a) Principle of order
(b) Principle of initiative
(c) Discipline
(d) Coordination

47. Cadbury chocolates have purple packaging on all its chocolates. Which function of packaging is emphasised here?
(a) Protection
(b) Convenience
(c) Identification
(d) Innovation

48. Aayush joins an e-commerce company as a delivery executive. The Area Team Leader, Shekhar is very happy with his performance. However, after a few months, due to some family problems, Aayush become irregular to work and is not able to meet the work related deadlines. As a result, Shekhar is not able to realise his team targets.
Under such a situation, which of the following statement will hold true?
(a) Shekhar can absolve himself of his accountability to the extent of work assigned to Aayush.
(b) Shekhar cannot absolve himself of his accountability to the extent of work assigned to Aayush.
(c) Shekhar can partly absolve himself of his accountability to the extent of work assigned to Aayush.
(d) None of the above

Section-C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
Z Ltd. is involved in assembling TVs. Kalu, a worker, is required to assemble 2 TVs per day. An idea struck Kalu which would reduce the assembling time of TVs but would also reduce the cost of TVs. However, his supervisor shunned him and ordered him to complete work by the suggested methods and techniques decided earlier. The company assembles 5 types of TVs and plans very efficiently. All the work is carried at centre only. But suddenly due to pandemic, lockdown was imposed and they couldn’t assemble TVs for 2 months, thereby causing huge losses to the company. After the lockdown was eased, they adjusted their target as per the human as well as non-human resources. The team considered the impact of various policy changes towards the sector to decide the further plan of action.

49. Which function of management is discussed in the above case?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

50. Which step of planning is highlighted in the lines, “After the lockdown was eased, they adjusted their target as per the human as well as non-human resources”?
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative course of action
(d) Selecting an alternative

51. Which limitation of planning is highlighted in the lines, “But suddenly due to pandemic, lockdown was imposed and they couldn’t assemble TVs for 2 months, thereby causing huge losses to the company”?
(a) Planning leads to rigidity
(b) Planning involves huge costs
(c) Planning does not guarantee success
(d) Planning may not work in dynamic environment

52. Which step of planning is highlighted in the lines, “The team considered the impact of various policy changes towards the sector to decide the further plan of action”?
(a) Selecting an alternative
(b) Evaluating alternative courses
(c) Identifying alternative courses of action
(d) Developing premises

53. Which limitation of planning is highlighted in the lines, “An idea struck Kalu which would reduce the assembling time of TVs but would also reduce the cost of TVs. However, his supervisor shunned him and ordered him to complete work by the suggested methods and techniques decided earlier”?
(a) Planning leads to rigidity
(b) Planning reduces creativity
(c) Planning is a time consuming process
(d) Planning involves huge costs

54. Which feature of planning is highlighted in the above case?
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning is a mental exercise
(d) Planning involves decision-making

55. According to the United Nations Environmental Agency, the world produces around 300 million tons of plastic each year, half of which constitutes single-use items. Ford is recycling over one billion plastic bottles every year to develop elements of the car’s interior, reducing the amount of plastic ending up in a landfill. The American car maker has revealed that their Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single-use plastic bottles. The process for making Ford EcoSport carpets involves shredding bottles and their caps into tiny flakes and then heating them to 260°C. Identify the related dimension of business environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension

56. Before buying a thing, a customer analyses its cost and the satisfaction that he is to get from it. He will buy the thing only when he feels that its satisfaction will be more than its cost. Seller is to make the thing while keeping in mind this tendency of the buyer. A seller, who does not pay heed to the importance that the buyer gives to the product, certainly lags behind in competition.
Which feature of marketing has been highlighted in the above paragraph?
(a) Customer value
(b) Need and want
(c) Creating a market offring
(d) Exchange mechanism

57. Malaysian budget airline group SKY Europe announced discounted fares, starting as low as ₹ 1,099 for domestic destinations operated by its Indian Joint venture carrier and ₹ 2,099 for international flights operated by other group airline under limited offer. Which medium of communication (Promotion mix) can be used by the firm to inform large number of people about the new fares?
(a) Public relation
(b) Advertisement
(c) Sales promotion
(d) Personal selling

58. Shrey runs a door locks manufacturing factory. He wants to expand his business. For this, he wants to enter into manufacturing of locks for cars such as steering lock, wheel lock, gear lock, central car lock, etc as an ancillary company. By doing this, his company will be able to provide many products to car manufacturers. Which type of organisation structure will he choose for his factory?
(a) Informal structure
(b) Formal structure
(c) Divisional structure
(d) Functional structure

59. In today’s dynamic business environment, companies are specialising in their core competency and divesting non- core businesses. In this context, one may cite the decision of Hindustan Unilever Limited in divesting non-core businesses of chemicals and seeds. Some companies are outsourcing their non-core activities like share-transfer management and advertising to outside agencies. Even core processes such as R&D, manufacturing and marketing are being outsourced today. Thus, the significance of Business Process Outsourcing (BPO)and Knowledge Process Outsourcing (KPO) has increased.
Identify the significance of principles of management highlighted above.
(a) Providing managers with useful insight into reality
(b) Optimum utilisation of resources
(c) Meeting changing requirements
(d) Scientific decisions

60. ZETA Ltd. is a world-renowned retail chain store. The customers here are very much pleased with the products and services provided in the stores. The customer satisfaction and internal efficiency indicator of the organisation is rated best in the industry. However there have been a few steps taken by the organisation which provide the organisation this edge. The organisation has used a special type of software which integrates all the stores and brings uniformity in its billing and working pattern.
Which principle of scientific management is mentioned here?
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Cooperation, not individualism
(d) None of the above