CBSE(NCERT) GRADE 12 BUSINESS STUDIES 2026 SET4 — CBSE 12th Business Studies Previous Year Question Paper with Solutions

Q1 mcq 1 mark

Ritika wanted to buy a new washing machine. She visited ‘Elec Duniya’, a large electronics store. She saw there many different brands and models on display like KM, Neo, Unipool, INH etc. The salesperson at the store explained the differences in quality, brand reputation and prices of different washing machines. Ritika could now compare fully automatic, semi-automatic, top load and front load washing machines. The salesperson encouraged her to take her time, check different brands and resolve her queries. Ritika also went to another shop nearby to compare prices and features of different washing machines. After comparing all the available options, Ritika chose a ‘Neo’ front load washing machine because it offered the best features within her budget. The consumer right exercised by Ritika in the above case is :

A. Right to be heard
B. Right to be assured
C. Right to consumer education
D. Right to seek redressal

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Reading Passage

Ritika had noticed the differences in quality, brand reputation and prices of different washing machines. Ritika could now compare fully automatic, semi-automatic, top load and front load washing machines. The salesperson encouraged her to take her time, check different brands and resolve her queries. Ritika also went to another shop nearby to compare prices and features of different washing machines. After comparing all the available options, Ritika chose a ‘Neo’ front load washing machine because it offered the best features within her budget.

Q1 mcq 1 mark

The consumer right exercised by Ritika in the above case is :

A. Right to be heard
B. Right to be assured
C. Right to consumer education
D. Right to seek redressal

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Reading Passage

The workers in Alpha manufacturing company were using traditional methods for production of metal parts. Since no standard procedure existed, workers relied on personal experience and guess work. As a result, productivity in the assembly line began to decline. To improve productivity, the company hired a consultant specializing in scientific management. The consultant explained that there was only one best method to maximize efficiency and this method could be developed through proper study and analysis. He emphasized that the scientific method should replace the old method, that the workers were using. So, to develop the scientific method, the consultant carefully investigated the traditional methods through work-study and by unifying the best practices, he developed a standard method that would be followed by everyone in the organization. After applying scientific method, there was a three fold increase in productivity within six months.

Q2 mcq 1 mark

The principle of scientific management which helped the company in increasing the productivity was :

A. Science, not Rule of Thumb
B. Harmony, Not Discord
C. Cooperation, Not Individualism
D. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

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Q3 mcq 1 mark

Read the following statements carefully : Statement – I : Consumers should get together and form themselves into consumer associations for protection and promotion of their interests. Statement – II : The Consumer Protection Act provides for setting up a two-tier enforcement machinery for the redressal of consumer grievances. With reference to given statements, choose the correct alternative from the following :

A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true, Statement II is false.
D. Statement I is false, Statement II is true.

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Q4 mcq 1 mark

From the above figure identify the element of communication process : For disabled students: The element of communication process that converts the message into communication symbols is :

A. Encoding
B. Medium
C. Noise
D. Decoding

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Q4 mcq 1 mark

Identify the element of communication process from the above picture :

A. Feedback
B. Media
C. Noise
D. Decoding

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Q4 mcq 1 mark

For Visually Impaired Candidates : The element of communication process that converts the message into communication symbols is :

A. Feedback
B. Media
C. Decoding
D. Encoding

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Q5 mcq 1 mark

Read the following statements – Assertion (A) and Reason (R) : Assertion (A) : Many enlightened business firms have set up their own consumer service and grievance cells. Reason (R) : The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or service. Choose the correct alternative from the alternatives given below :

A. Both Assertion (A) and Reason (R) are false.
B. Assertion (A) is false and Reason (R) is true.
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
D. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

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Q6 mcq 1 mark

Sudha is a corporate executive and has to attend a felicitation function to be held in her office tomorrow. So she decides to colour her hair. On recommendation of her friend, she purchased ‘NATURO’ hair colour. After reading essential details such as shade, its ingredients, usage instructions and expiry date mentioned on the box, Sudha opened the box. She took out the colour tube and developer bottle from the box and threw away the box. The level of packaging of box thrown away by Sudha was :

A. Primary packaging
B. Transportation packaging
C. Secondary packaging
D. General packaging

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Q7 mcq 1 mark

Read the following statements – Assertion (A) and Reason (R) : Assertion (A) : Money market instruments have a higher degree of liquidity as compared to capital market securities. Reason (R) : Money market instruments are traded on the stock exchanges. Choose the correct alternative from the alternatives given below :

A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.

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Q8 mcq 1 mark

Ravi purchased gold jewellery from a reputed jewellery store. He ensured that the jewellery had a hallmark which confirm its purity and authenticity. To avoid paying goods and services tax (GST) he asked the salesperson to write the gold weight and making charges on a slip of paper and hand over it to him. Which of the following responsibilities of a consumer was not fulfilled by Ravi while purchasing jewellery ?

A. Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
B. Ask for a cash memo on purchase of goods and services.
C. Buy only standardized goods as they provide quality assurance.
D. Assert yourself to ensure that you get a fair deal.

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Q9 mcq 1 mark

'CARO Tech Solutions' aimed at development of a software system for the company's growing operations. The project was to be completed within six months with a budget of ` 12,00,000. The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ` 2,00,000. From the following, identify whether the software development team is :

A. Efficient and Effective
B. Efficient but not effective
C. Effective but not efficient
D. Neither efficient nor effective

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Q10 mcq 1 mark

Due to severe winter and rising pollution levels, 'Green India Electronics' planned to launch a new eco-friendly heater in the market. It conducted a survey and found that the demand of this product was very high. As the winter seas

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Q10 mcq 1 mark

Due to severe winter and rising pollution levels, ‘Green India Electronics’ planned to launch a new eco-friendly heater in the market. It conducted a survey and found that the demand of this product was very high. As the winter season lasts only for 2 to 3 months, the Chief Executive Officer wanted that there should be close coordination among all the managers to deliver orders on time. Top level managers were asked to work in coordination with their subordinates to ensure that company’s policies were properly followed. To ensure that the heaters would be ready on time, the production manager co-ordinated with the operational level managers. Operational level managers co-ordinated the activities of the workers to ensure that work proceeded according to plans. As a result ‘Green India Electronics’ was able to launch its heaters on time, in the market. The feature of co-ordination discussed in the above case is :

A. Co-ordination is a deliberate function.
B. Co-ordination is the responsibility of all managers.
C. Co-ordination is a continuous process.
D. Co-ordination ensures unity of action.

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Q11 mcq 1 mark

‘Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.’ The feature of business environment highlighted in the above statement is :

A. Totality of external forces
B. Complexity
C. Dynamic nature
D. Relativity

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Q12 mcq 1 mark

A position when a company is unable to meet its fixed financial charges like interest payment, dividend on preference shares and repayment obligations is referred to as ______ .

A. Trading on equity
B. Financial risk
C. Business risk
D. Operating risk

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Q13 mcq 1 mark

Identify the incorrect statement with respect to the importance of planning function of management :

A. Planning provides directions by stating in advance how work is to be done.
B. Planning eliminates uncertainty by looking ahead and anticipating changes.
C. Planning facilitates decision making by making a choice among various alternative courses of action.
D. Planning promotes innovative ideas as new ideas can take the shape of concrete plans.

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Q14 mcq 1 mark

Organising is the process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results. Organising process thus involves a series of steps that need to be taken in order to achieve the desired goal. Arrange the steps of the process of organizing in the correct order:

A. Identification and Division of work, Assignment of duties, Departmentalisation, Establishing authority and reporting relationships
B. Identification and Division of work, Assignment of duties, Establishing authority and reporting relationships, Departmentalisation
C. Departmentalisation, Identification and Division of work, Establishing authority and reporting relationships, Assignment of duties
D. Identification and Division of work, Departmentalisation, Assignment of duties, Establishing authority and reporting relationship

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Q15 mcq 1 mark

Identify the feature of planning which states that the purpose of planning is to meet future events effectively to the best advantage of an organisation:

A. Planning involves decision making
B. Planning is futuristic
C. Planning is a mental exercise
D. Planning focuses on achieving objectives

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Q16 mcq 1 mark

Match the principle of management given in Column – I with its explanation given in Column – II: Column – I (a) Discipline (b) Unity of direction (c) Order (d) Unity of command Choose the correct option from the following:

A. (a) (b) (c) (d) (A) (iii) (iv) (i) (ii) (B) (iv) (iii) (ii) (i) (C) (iv) (iii) (i) (ii) (D) (iii) (iv) (ii) (i)

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Q17 mcq 1 mark

The step of controlling process which reveals the deviation between actual performance and desired results is:

A. Setting performance standards
B. Analysing deviations
C. Taking corrective action
D. Comparing actual performance with the standards

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Q18 mcq 1 mark

Certain provisions of the Companies Act place restrictions on payouts as dividend. Such provisions must be adhered to while declaring the dividend. The factor affecting dividend decision discussed above is:

A. Access to capital market
B. Contractual constraints
C. Legal constraints
D. Stock market reaction

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Q19 mcq 1 mark

Read the following statements carefully: Statement – I: Control should focus on key result areas which are critical to the success of an organization. Statement – II: Only significant deviations which go beyond the permissible limit should be brought to the notice of management. With reference to the given statements, choose the correct alternative from the following:

A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true and Statement II is false.
D. Statement I is false and Statement II is true.

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Q20 mcq 1 mark

Which of the following is NOT an organisational barrier to communication?

A. Status
B. Organisational facilities
C. Lack of proper incentives
D. Rules and regulations

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Q21 long answer 3 marks

‘Riya Mart’ is a company manufacturing disposable crockery. They have been in business for the past five years, but were not earning good profits. Concerned about this, the Chief Executive Officer (CEO), Verma, ordered an internal inquiry. The inquiry revealed many problems such as theft of goods, delay in arrival of workers, and improper production by them. To stop theft of goods, the Chief Executive Officer, Verma installed a biometric attendance system to keep a watch on the workers coming late. In addition, a biometric device was installed so that workers coming late could be watched. Apart from this, the workers were told in advance what action would be taken and what standards of their performance were. As a result of these steps, theft reduced, employees became punctual and there was improvement in their performance. (i) With reasons, explain which type of organisational structure would be suitable for 'Riya Mart'. (1+2) (ii) Mention any two benefits of the organisational structure explained in (i).

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Q21 short answer 3 marks

'Riya Mart' is a company manufacturing disposable crockery. They have been in business for the past five years, but were not earning good profits. Concerned about this, the Chief Executive Officer (CEO), Verma, ordered an internal audit. The audit uncovered several issues like inventory pilferage, employees coming late and their performance not upto the mark. To stop inventory pilferage, Verma, the CEO, introduced surprise stock checks and installed an automated inventory management system to track stock movements. A biometric attendance system was also setup to keep a check on employees coming late. In addition to this, to motivate employees for better performance, they were told in advance what they are expected to do and what are their standards of performance. As a result of these steps, the inventory pilferage reduced, employees became more punctual and their performance improved. (i) Identify and state the function of management performed by Verma, the Chief Executive Officer of the company. (ii) State any two points of importance of the function identified in (i) above, which are not discussed in the above para.

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Q22 short answer

'Soal Footwear Ltd.' is known for its high quality athletic shoes and casual sneakers. With increasing competition and changing consumer preferences, it decided to diversify its product range by adding clothing, bags and accessories under the same brand umbrella. This diversification aimed to capture a larger share of the market and increase customer loyalty. (i) Suggest with reason which type of organisational structure will be suitable for 'Soal Footwear Ltd.' (ii) State any two advantages of the organisational structure suggested in (i) above.

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Q23 short answer 3 marks

(a) State any three measures to improve communication effectiveness. OR (b) State any three features of leadership.

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Q24 short answer 3 marks

(a) State any three functions of middle level management. OR (b) State any three features of 'Demonetisation'.

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Q28 long answer 4 marks

Rajiv was on the board of directors of ‘Tako Solutions’, a software development company and ‘Sabka Mart Retail’, a large supermarket chain. He wanted to apply management principles in both the companies to improve efficiency and profitability. He knew that management principles can be applied as much to ‘Tako Solutions’ as to ‘Sabka Mart Retail’ though the extent to which the principles can be applied will differ, because the nature of work, scale of operations and business activities in a software firm and a supermarket chain are not the same. Rajiv also knew that the management principles would not provide readymade solutions because real world situations faced by the two companies were very complex and dynamic. Still, he believed that even small guidelines could help in solving many problems and will improve the way both companies worked. Identify and explain the two points that highlight the nature of principles of management, in the above case.

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Q29 short answer 4 marks

‘GW Industries’, known for its paper products, decided to produce and launch a new line of sustainable packaging called ‘EcoPac’. As management is a complex activity, the Chief Executive Officer of the company translated the work into clear goals and assigned the means to achieve those. He knew that human resources are the greatest asset of an organization, so getting work done through them is also a major task. The production of high quality sustainable packaging also required a proper production process. This was put in place for managing the flow of input materials and technology to convert these materials into high quality sustainable packaging. In this way ‘GW industries’ took care of various aspects for successful launch of ‘EcoPac’. A characteristic of management is discussed in the above case. Identify and explain the characteristic.

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Q30 short answer 3 marks

State any three measures to improve communication effectiveness.

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Q30 short answer 4 marks

‘Eco Care’, a start-up, plans to launch a reusable water bottle for environmentally conscious millennials and Gen Z. For this, they conducted a market research to identify the needs of the customers so that an informed decision could be taken for successful marketing of the product. They wanted to work carefully on the design to make the bottle attractive to the target customers. On the basis of consumer views and opinions, they developed a stylish stainless steel bottle with double wall insulation to keep beverages cold for 24 hours, giving it a competitive advantage in the market. They named the bottle ‘Eco-Sip’ creating a brand identity focused on sustainability and simplicity. It would also help in product differentiation. The packaging was made using hundred percent recyclable cardboard, with details of sustainability, features, price etc. printed on it. State the four functions of marketing that are carried out by ‘Eco Care’ in the above case.

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Q30 short answer 4 marks

State the four functions of marketing that are carried out by ‘Eco Care’ in the above case.

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Q31 short answer 3 marks

State any three features of leadership.

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Q32 short answer 3 marks

State any three functions of middle level management.

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Q32 long answer 6 marks

(a) Explain the following steps in the staffing process : (i) Estimating manpower requirements (ii) Selection (iii) Placement and orientation OR (b) Explain the following non-financial incentives : (i) Status (ii) Organisational climate (iii) Job security

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Q33 short answer 3 marks

State any three features of ‘Demonetisation’.

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Q33 long answer

Ria ran a small online bakery business. Her business was doing very well. She saved a good amount of money every month and now wanted to invest it wisely. She was in a dilemma to keep her savings in a bank account or to invest it in the stock market. Her friend Aabha, who had done a certification course from National Stock Exchange, encouraged her to invest in the stock market. She explained to Ria that if she invests in the stock market, she could disinvest and reinvest whenever she wanted, which would provide her good liquidity. Aabha also told her that the membership of stock exchange is well regulated and all trading takes place within the legal framework. As a result, investors get a fair and safe deal.

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Q34 short answer 4 marks

'Sheetal Cosmetics Ltd.', is a fast growing beauty and skin care company known for its innovative products and aggressive market expansion. As the company increased its marketing activities like new product launches, accelerated advertising campaigns, social media promotions and influencer collaborations etc., the workload of the marketing department grew sharply. Despite working long hours, the marketing manager Arjun couldn’t give adequate attention to strategic planning and high impact decisions as minor operational issues began consuming most of his time. Noticing this, the Chief Executive Officer (CEO) advised Arjun that it was now impractical for him to handle the entire volume of work alone, so he should allow his subordinates to take up routine tasks. This would not only help him manage his time better but also satisfy the subordinate’s need for recognition. This will also provide opportunities to the subordinates to develop and exercise initiative. Identify the concept suggested by CEO that will help Arjun to manage volume of work effectively.

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Reading Passage

Ria was doing very well. She saved a good amount of money every month and now wanted to invest it wisely. She was in a dilemma to keep her savings in a bank account or to invest it in the stock market. Her friend Aabha, who had done a certification course from National Stock Exchange, encouraged her to invest in the stock market. She explained to Ria that if she invests in the stock market, she could disinvest and reinvest whenever she wanted, which would provide her good liquidity. Aabha also told her that the membership of stock exchange is well regulated and all trading takes place within the legal framework. As a result, investors get a fair and safe deal. Ria was still apprehensive as she had heard that there is lot of speculation in the stock market. She wanted to be cautious. Aabha clarified that speculation does exist, but it happens in a restricted and controlled way. She also told Ria that the stock exchange is keen to promote wider share ownership and does so by educating public about investments etc. As a result, young people have started investing in the stock market. After all this discussion, Ria felt confident and decided to invest a part of her savings in the stock market.

Q34 long answer 6 marks

Quoting lines, identify and explain the four functions of stock exchange highlighted in the above case.

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Q34 long answer 6 marks

Explain the following elements of Marketing Mix : (i) Product (ii) Price (iii) Promotion OR (b) Explain the following components of physical distribution : (i) Order processing (ii) Warehousing (iii) Inventory control

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Q35 short answer

State any three points of importance of the concept identified in (i) above.

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