Please see below Class 12 Business Studies Sample Paper Term 1 Set B 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 B

SECTION – A

1. The process of coordinating the activities of an organization begins at which stage?
(A) Planning
(B) Staffing
(C) Directing
(D) Controlling

2. Which of the following is related to principle of Unity of Direction?
(A) One head and one plan
(B) One head and two plans
(C) Two heads and one plan
(D) Two heads and Two plans

3. “Due to enforcement of Euro-IV emission norms, an automobile company had to phase out one of its model.” Identify the dimension of environment highlighted in the given statement.
(A) Technological
(B) Political
(C) Legal
(D) Economic

4. Planning is:
(A) Continuous
(B) Backward looking
(C) A physical exercise
(D) None of these

5. implies being answerable for the final outcome
(A) Accountability
(B) Authority
(C) Responsibility
(D) None of these

6. Which of the following gives shape to the organisation structure?
(A) Extent of delegation
(B) Employee strength
(C) Span of management
(D) None of the above

7. Which of the following statement is correct with respect to advertising?
(A) Advertising is a personal form of communication
(B) Advertising is very flexible.
(C) Advertising is a very economical mode of communication if large number of people are to be reached.
(D) All of the above

8. Which of the following function of management allows a business enterprise to add more job positions, departments and even diversify their product lines.
(A) Planning
(B) Controlling
(C) Organising
(D) Staffing

9. “The enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period, is one of the importance of the business environment”. Identify the importance.
(A) It helps in improving performance.
(B) It helps in assisting in planning and policy formulation.
(C) It helps in tapping useful resources.
(D) It helps in coping with rapid changes.

10. The company “Refresho” has plans of expansion. Their objective is to increase their capacity so that they can employ 800 more professionals. Their target time is six months. The objective of the current year has also been clearly stated which is to increase capacity by 1500-2000 more professionals.
Identify the feature of planning highlighted in the above case?
(A) Planning focuses on achieving objectives.
(B) Planning is pervasive.
(C) Planning is continuous.
(D) Planning is futuristic.

11. Which of the following importance of decentralization is highlighted in the below mentioned lines? “In decentralization, there are less chances of information getting distorted because it doesn’t have to go through long channels.”
(A) Facilitates growth
(B) Quick decision making
(C) Relief to top management
(D) Better control

12. involves putting identification marks on the package.
(A) Packaging
(B) Labelling
(C) Branding
(D) None of these

13. When decisions taken by the lower levels are numerous as well as important an organisation can be regarded as greatly .
(A) Decentralised
(B) Centralised
(C) Both (A) and (B)
(D) None of these

14. Which of the following is not a benefit of organising?
(A) Clarity in working relationship
(B) Adaptation to change
(C) Expansion and growth
(D) Establishing authority and reporting relationships

15. Planning is deciding in advance:
(A) What to do
(B) How to do.
(C) Both (A) and (B)
(D) All of the above

16. “It is very difficult to predict future happenings, especially when environment changes are taking place too frequently Business environment”. This feature of business environment states that it is largely .
(A) Uncertain
(B) Predictable
(C) Determinate
(D) None of these

17. Functional foremanship is an extension of the principle of .
(A) Division of work
(B) Unity of direction
(C) Equity
(D) All of the above

18. According to Fayol, scalar chain should not be violated in the normal course of communication
(A) Informal
(B) Formal
(C) General
(D) Specific

19. ‘The current government initiated Make in India Programme which is good for the manufacturing sector.’
Out of the following, identify the component of Business Environment quoted in the above lines.
(A) Economic
(B) Political
(C) Legal
(D) Technological

20. “Competition in the market can also upset financial plans, sales targets may have to be revised and, accordingly, cash budgets also need to be modified since they are based on sales figures.”
Identify the limitation of planning highlighted in the above case?
(A) Planning leads to rigidity.
(B) Planning reduces creativity.
(C) Planning may not work in a dynamic environment.
(D) Planning is a mental exercise.

21. Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?
(A) Functional
(B) Divisional
(C) Both (A) and (B)
(D) None of these

22. “The extent of delegated authority also decides the power that each job position enjoys in the organisation.”
Identify the importance of delegation highlighted in the above case?
(A) Employee development
(B) Motivation of employees
(C) Basis of management hierarchy
(D) Better coordination

23. Traditionally, marketing has been described in terms of its:
(A) Functions
(B) Activities
(C) Both (A) and (B)
(D) None of these

24. An IT company currently employing 5,000 people, plans to expand its business through diversification. It aims to become a global leader. To achieve this goal, it has started shifting to a decentralized management system from a centralized one. Thus, function of management is being performed by the company to become a decentralised company.
(A) Directing
(B) Staffing
(C) Organising
(D) Planning

SECTION – B

25. Sana enterprises Ltd. manufactures dresses for women. Sana plans her dresses collection in the month of January itself. She has to then ensure that there is adequate workforce and continuously monitor whether production is proceeding according to plans.
Identify the feature of coordination mentioned in the above the text?
(A) Coordination is a continuous process.
(B) Coordination is an all-pervasive function.
(C) Coordination ensures unity of action.
(D) None of these.

26. principle of management is being violated if management does not fulfill its promise to increase wages of the workers after the mission is accomplished.
(A) Order
(B) Equity
(C) Discipline
(D) Initiative

27. For the following two statements choose the correct option:
Statement I: By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.
Statement II: Planning helps in avoiding confusion and misunderstanding. 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

28. R-Ox Ltd. wants to increase their market share by 4.5% in next two years. It spent a lot of money to hire specialized people for framing their plans, collecting important facts about environment who took lot of time to frame plans for the company. The competition has started increasing, and it is not able to beat its competitors because it has already spent a huge amount. The plan failed and company suffered a huge loss. Identify the limitation of planning stated in the given case.
(A) Planning involves huge cost.
(B) Planning may not work in a dynamic environment.
(C) Planning is a time-consuming process.
(D) All of the above.

29. Which of the following statement is incorrect with respect to limitations of planning?
(A) Planning guarantee success.
(B) Planning is inexpensive.
(C) Both (A) and (B)
(D) None of these

30. A is a state of felt deprivation or feeling of being deprived of something.
(A) Want
(B) Need
(C) Desire
(D) Demand

31. Himanshu Mehta was working as a sales manager in a reputed company. A company was manufacturing refrigerator. He found that the sales of refrigerators were declining in the past few months. So, he decided to bring it to the notice of top management. The top management framed strategies and policies to increase the sales of the refrigerators. Himanshu thus instructed this to Davik Sharma who in turn share the instructions to actual work force.
Identify the level at which Daivik Sharma was working in the company.
(A) Top Level
(B) Middle level
(C) Supervisory level
(D) None of these

32. Lavender Ltd. is an Indian company dealing with cosmetics. The company finds that a foreign multinational namely Floral beauty is entering the Indian market with new substitutes. On the basis of this information, Lavender Ltd. can prepare themselves to meet the threat by adopting measures such as improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on.
Identify the significance of business environment mentioned in the above text.
(A) Business Environment helps in improving performance.
(B) Business Environment helps in assisting in planning and policy formulation.
(C) Business Environment helps the firm to identify threats and early warning signals.
(D) None of the above

33. Authority is , responsibility is , accountability is .
(A) Delegated, assumed, imposed
(B) Imposed, assumed, delegated
(C) Assumed, delegated, imposed
(D) Imposed, delegated, assumed

34. ‘Buy two get one free’ is printed on the label of the package of toothpaste. Which labelling function is being performed by this statement?
(A) Describe the product
(B) Identification of the brand
(C) Grading of product
(D) Sales promotion

35. Which of the following is an advantage of branding to the customers?
(A) Ease in introduction of new product
(B) Helps in product identification
(C) Helps in advertising and display programmes
(D) Differential pricing

36. Which of the following step in the planning of process is related to making assumptions about the future?
(A) Developing Premises
(B) Setting Objectives
(C) Selecting an alternative
(D) None of these

37. As per the principle of unity of command what should be avoided?
(A) Dual subordination
(B) Discipline
(C) Formal communication
(D) Responsibility

38. For the following two statements choose the correct option: Statement I: Management helps in achieving group goals. Statement II: Management increases efficiency.
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.

39. Management can be called an science.
(A) Inexact
(B) Exact
(C) Human
(D) None of these

40. Which of the following statements is true?
(A) Authority is only formal.
(B) Authority is only informal.
(C) Authority is both formal and informal.
(D) Authority is neither formal nor informal.

41. 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): Organising leads to the proper usage of all material, financial and human resources.
Reason (R): The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources.
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) is wrong.
(D) (A) is wrong but (R) is correct.

42. Comfort manufacturers build beautiful furniture’s. Their main focus is always to improve the designs of the product and not on the quality of the product. They try to include as many designs as possible in their furniture. However, the customers did not like the product as well the designs.
Identify the marketing management philosophy discussed in the above case.
(A) Marketing
(B) Product
(C) Production
(D) Selling

43. Suganya decided to start the business of selling dress materials. She did some research to find out about the preferences of prospective customers. Based on this, she prepared a detailed business plan. She then made important decisions about the features, quality, packaging, labelling and branding of the dress material. Which of the following elements of Marketing Mix is being discussed here?
(A) Promotion
(B) Market
(C) Product
(D) Place

44. “It is that function of management which is considered as the base of all other functions.” Identify the function of management stated in the above lines.
(A) Planning
(B) Controlling
(C) Organising
(D) Staffing

45. Zamara Garments Ltd., found that there was decline in sales even in the festive season. After analyzing, it was found that purchase and sales departments were not synchronizing so that supply of goods could take place according to purchase orders. aspect of management is lacking above.
(A) Planning
(B) Organising
(C) Controlling
(D) Coordination

46. Which of the following nature of management has a feature “Management has a systematised body of knowledge”
(A) Management as an Art
(B) Management as a science
(C) Management as a profession
(D) None of these

47. For organisational efficiency, it is important to harmonise individual goals and organisational goals through .
(A) Effective planning
(B) Coordination
(C) Proper direction
(D) Proper organizing

48. The macrolevel factors related to the means of production and distribution of wealth which have an impact on business and industry includes:
(A) Economic structure
(B) Stage of economic development of the country
(C) Infrastructural factors
(D) All of the above

SECTION – C

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

“Crispy” company are in the process to launch their first product in the market as potato chips in various flavours and has become a member of the Food Corporation Association. They are newly established company in the market. The chips were made of potato, edible vegetable oil and decided to sell in India with tag a line – Have Crispy Go crazy. The company is trying to increase its sale in the business. In product like chips the intermediaries play a very significant role. The company has decided to keep the prices low initially and start a vigorous promotional campaign to involve the intermediaries. The company has its own farms where pure organic potatoes products are grown. It has decided to go for newspaper advertisements, TV advertisements, celebrity involvement so that customers get information about the product and its features, etc. and are persuaded to purchase these products. They have also developed customer support services such as feedback and suggestions, if any, to improve upon their products. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days. As they were launching the product for the first time, the company wants the packaging of the product to be attractive and differentiated from other products.

49. Which element of marketing mix is highlighted in the below mentioned line:
“It has decided to go for newspaper advertisements, TV advertisements, celebrity involvement so that customers get information about the product and its features, etc.”
(A) Promotion
(B) Place
(C) Price
(D) Product

50. Which function of marketing is highlighted in the below mentioned line:
“They have also developed customer support services such as feedback and suggestions, if any, to improve upon their products.”
(A) Branding
(B) Customer Support Services
(C) Pricing of Product
(D) Physical Distribution

51. Which of the following importance of packaging is highlighted in the below mentioned line:
“As they were launching the product for the first time, the company wants the packaging of the product to be attractive and differentiated from other products.”
(A) Rising Standards of Health and Sanitation
(B) Self Service Outlets
(C) Innovational Opportunity
(D) Product Differentiation

52. Which element of marketing mix is highlighted in the below mentioned line ?
“In product like chips the intermediaries play a very significant role in distribution”
(A) Product
(B) Price
(C) Place
(D) Promotion

53. What kind of a product chips is?
(A) Non-durable
(B) Durable
(C) Shopping
(D) Speciality

54. “All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days.” Which of the following marketing concept is being discussed in these lines?
(A) Product
(B) Social
(C) Marketing
(D) Selling

55. Softie is a company that manufactures towels. The company has its headquarters in Delhi and have its branches in Mumbai and Gujarat. The company decided to open one more branch in Uttar Pradesh. For this the company has already planned its operations and decided on the objectives. The work was identified and divided in accordance with the determined plans and accordingly the departments was formed. Jobs are now to be allocated to the members of each department in accordance to their skills and competencies.
Identify the step in the process of organizing followed in the lines “Jobs are now to be allocated to the members of each department in accordance to their skills and competencies.”
(A) Assignment of duties
(B) Establishing authority and reporting relationships
(C) Identification and division of work
(D) Departmentalisation

56. To make the school fete of the school successful the principal of the school divided all the activities into various task groups each dealing with a specific area like food committee, the decoration committee, the ticketing committee and so on. Each group was placed under the overall supervision of a senior teacher.
Identify the function of management discussed above.
(A) Planning
(B) Organizing
(C) Staffing
(D) Controlling

57. Agro ltd is a spice manufacturing company. They deal with whole lot of spices such as Chhole masala, Rajma masala, Turmeric powder etc. The company has forecasted the demand of their products by making certain assumptions? Which is next step the Agro ltd will follow in their business?
(A) Setting Objectives
(B) Developing Premises
(C) Selecting an alternative
(D) Identifying alternative courses of action

58. “The increase in the demand for many Ayurvedic medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Coronavirus.” Identify the feature of business environment being described above.
(A) Specific and general forces
(B) Inter-relatedness
(C) Relativity
(D) None of the above

59. The CEO of the company which is diversified in many products wanted to maintain its sovereignty in the market. The company has clients all over the world. Recently they had a meeting in which all the reasons which were outside the control of the organisation were discussed. However, when it comes to the evaluation, the CEO of the company found that conditions were different in different countries so the strategies adopted would have to be different and have to products according to taste and culture of that country.
Identify the feature of Business Environment discussed in the above case?
(A) Relativity
(B) Specific and general forces
(C) Uncertainty
(D) Complexity

60. “Extreme fans” is a fan manufacturing company. The managing director of the company wanted to increase the productivity. So, he promised his employees for bonus for extra production. He also said that those who will work more efficient than others and put extra time will be paid extra according to the number of hours. However, some people who worked efficiently than others and worked hard later complained that they were not compensated for the extra units of the production and extra number of hours so demanded in the job.
Which technique of scientific management is not followed over here by the managing director?
(A) Differential Piece Wage System
(B) Fatigue Study
(C) Time Study
(D) Motion Study