CBSE Class 12 Business Studies Sample Paper Solution - 2021-22


1. “What distinguishes a successful manager from a less successful one is the ability to put the principles into practice.” Which aspect of the nature of management is highlighted in the above statement? 

a) Management as a science 
b) Management as an art 
c) Management as a profession 
d) Management is an intangible force.

2. ____________ provides a rational approach for setting objectives and developing appropriate courses of action for achieving predetermined objectives. 

(a) Directing 
(b) Staffing 
(c) Planning 
(d) Controlling

3. Marketing mix is the set of _____________________ that the firm uses to pursue its marketing objectives in the target market. 

(a) Production tools 
(b) Promotional tools 
(c) Marketing tools 
(d) Selling tools

4. Which level of management is responsible for the welfare and survival of the organisation? 

(a) Top level of management 
(b) Middle level of management 
(c) Supervisory level 
(d) Both (b) and (c)

5. Name the principle of management given by Fayol which when applied would mean that the workers and management both honour their commitments without any prejudice towards one another. 

(a) Discipline 
(b) Mental Revolution 
(c) Remuneration of employees 
(d) Scalar chain

6. A brand or part of the brand that is given legal protection is called _____________ 

(a) Brand Mark 
(b) Trademark 
(c) Brand 
(d) Brand name

7. Identify the dimension of the characteristic of management- “it is multidimensional”, which specifies that the task of management is to make the strengths of human resources effective and their weaknesses irrelevant towards achieving the organisation's objectives. 

(a) Management of work 
(b) Management of people 
(c) Management of operations 
(d) Management of goals

8. ___________________ involves a variety of programmes designed to promote and protect a company’s image and its individual products in the eyes of the public. 

(a) Advertising 
(b) Personal selling 
(c) Publicity 
(d) Public relations

9. Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation ? 

( a) Centralised structure 
(b) Decentralised Structure 
(c) Divisional structure 
(d) Functional structure

10. “Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.” is suggested by the following importance of planning: 

(a) Planning facilitates decision making 
(b) Planning promotes innovative ideas 
(c) Planning provides direction 
(d) Planning reduces the risks of uncertainty.


11. “Grouping similar nature jobs into larger units called departments” is the step in the process of one of the functions of management. Identify the function of management. 

(a) Planning 
(b) Organising 
(c) Directing 
(d) Staffing

12. The Statement “Planning is a primary function”, suggests that…… 

(a) Planning precedes other functions 
(b) Planning requires logical and systematic thinking 
(c) Plan is framed, it is implemented, and is followed by another plan, and so on 
(d) Planning is required at all levels of management as well as in all departments of the organisation.

13. A major decision area under one of the functions of marketing is the decision regarding marketing intermediaries to be used. Name the function. 

(a) Physical Distribution 
(b) Gathering and analysing market information 
(c) Promotion 

14. “The nature of the relationship of our country with foreign countries”, is a major element of which of the following components of the Business Environment? 

(a) Social Environment 
(b) Legal Environment 
(c) Political Environment 
(d) Economic Environment

15. Which of the following statements is incorrect? 

(a) Marketing is a social process 
(b) Focus of the marketing activities is on customer needs 
(c) Marketing is merely a post production activity. 
(d) Marketing mix is a wider term than product mix.

16. Planning is closely connected with _____________ and ________________ 

(a) Responsibility and accountability 
(b) Delegation and decentralization 
(c) Stability and security 
(d) Creativity and innovation

17. _______________ is an important function of marketing which is important not only for protection of the product but also serves as a promotional tool. 

(a) Grading 
(b) Labeling 
(c) Packaging 
(d) Branding

18. As part of regulations to be followed by advertisers, the advertisement for a new brand of baby food for infants provides important information for potential buyers that it is “Not recommended for infants under the age of four months”. Which dimension of the business environment is highlighted in the above statement? 

(a) Social Environment 
(b) Legal Environment 
(c) Political Environment 
(d) Economic Environment

19. The principle of management given by Fayol which aims at preventing overlapping of activities is: 

(a) Division of work 
(b) Unity of Command 
(c) Unity of Direction 
(d) Order

20. ___________________ensures that the subordinate performs tasks on behalf of the manager thereby reducing his workload and providing him with more time to concentrate on important matters. 

(a) Decentralization 
(b) Delegation of authority 
(c) Authority 
(d) Accountability 


21. ____________ is a process of classification of products into different groups on the basis of some important characteristics such as quality, size, etc. 

(a) Standardization 
(b) Grading 
(c) Product Development 
(d) Selling

22. The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance is known as________________ 

(a) Business environment 
(b) Social environment 
(c) Political environment 
(d) Economic environment.

23. Name the concept that refers to the number of subordinates that can be effectively managed by a superior and determines the number of levels of management in the organisation. 

(a) Organisation structure 
(b) Span of management 
(c) Hierarchy of authority 
(d) Delegation of Authority

24. Taylor believed that there was only one best method to maximise efficiency. This method can be developed through study and analysis. Identify the principle of Scientific management being discussed above: 

a) Harmony not discord 
b) Science not rule of thumb 
c) Development of each and every person to his or her greatest efficiency and prosperity 
d) Cooperation not individualism

25. India has launched its most advanced Geo-imaging satellite which will allow better monitoring of the subcontinent, including its borders with neighbouring countries, by imaging the country 4-5 times a day. The satellite is capable of near real time monitoring of floods and cyclones. The factor constituting the Business Environment being discussed above is: 

(a) Social environment 
(b) Economic environment 
(c) Technological environment 
(d) Political environment

26. Which step in the process of planning will precede the step in which the manager is required to make certain assumptions about the future, which are the base material upon which the plans are drawn. 

(a) Implementing the plan 
(b) Identifying alternative courses of action 
(c) Setting objectives 
(d) Selecting an alternative.

27. “Availability and affordability of the product were considered to be the key to the success of a firm.” Identify the concept of marketing management highlighted by this statement. 

(a) Production concept 
(b) Product Concept 
(c) Societal concept 
(d) Marketing Concept

28. Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as subsidies and low long term interest rates, for films with patriotic and certain other themes shot in J&K, for giving work opportunities to local artistes, etc. This will have an impact on business enterprises in the state. Which component of business environment is highlighted above: 

(a) Specific and general forces 
(b) Technological environment 
(c) Economic environment 
(d) Totality of external forces

29. The Topper group is looking to make a foray into manufacturing of semiconductors and it has set up a business to seize the business opportunity and add to its prospects in the long run. The company has already pivoted into a number of new projects like electronics, 5G network equipment, as well as semiconductors. Which economic objective of management does the business seek to fulfill?: 

(a) Survival 
(b) Growth 
(c) Profit 
(d) Efficiency

30. Product cost sets the lower limits of the price, the utility provided by the product and the intensity of demand of the buyers sets the upper limit. So, in case of inelastic demand, total revenue ………………when price increases 

(a) Rises 
(b) Falls 
(c) Constant 
(d) Both (a) and (b)


31. “A manager in a conscious manner has to ensure that even where members of a department willingly cooperate, coordination gives direction to the willing spirit.” The characteristic of coordination being highlighted above is : 

(a) Coordination is the responsibility of all managers. 
(b) Coordination is a deliberate function. 
(c) Coordination integrates group efforts. 
(d) Coordination is a continuous process

32. For the following two statements choose the correct option: Statement I: Accountability can be delegated Statement II: Responsibility can be delegated completely Choose the correct option from the options given below: 

(a) Statement I is correct and II is wrong 
(b) Statement II is correct and I is wrong 
(c) Both the statements are correct 
(d) Both the statements are incorrect

33. The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from the employees at a competitive cost. On the other hand Ramakaant, an employee of the company wants to get the maximum salary while working the least. The Principle of management given by Fayol being violated by Ramakaant is ----------------. 

(a) Remuneration 
(b) Equity 
(c) Discipline 
(d) Subordination of individual interest to general interest.

34. Arrange the following steps in the process of organising in the correct sequence: 

(a) Assignment of duties 
(b) Departmentalisation 
(c) Identification and division of work 
(d) Establishing reporting relationship 

Choose the correct option: 

(a) (a ) ; (b) ; (d); (c) 
(b) (c ) ; (b) ; (a); (d) 
(c) (c ) ; (b) ; (d); (a) 
(d) (b) ; (c) ; (a); (d)

35. The production department at Karishmaa Ltd, a firm manufacturing readymade garments for men has an objective to increase production by 10% but the Sales department does not approve of the increase in production, till changes are brought about in the product to incorporate latest fashion. These kinds of conflicts bring to light the following importance of the force that can help to accomplish the linking of activities of various departments: 

(a) Growth in size 
(b) Functional differentiation. 
(c) Specialization 
(d) Efficiency

36. Planning requires logical and systematic thinking rather than guess work. The feature of planning being referred to in the above statement is: 

(a) Planning is a continuous process 
(b) Planning is futuristic 
(c) Planning is pervasive 
(d) Planning is a mental exercise

37. Silico Ltd. has appointed the former Consulting executive of Shri Shakti Ltd. Rajan Bahl as its Vice President. What will be his basic task? 

(a) To integrate diverse elements and coordinate activities of different departments. 
(b) To carry out plans formulated by top managers. 
(c) To oversee the efforts of the workforce. 
(d) Help to maintain quality of output.

38. The marketing management philosophy which is based on the premise that any activity which satisfies human needs but does not pay attention to the ethical and ecological aspects of marketing cannot be justified is known as: 

(a) Marketing concept 
(b) Societal marketing concept 
(c) Production concept 
(d) Product concept

39. Ravi joined a marketing firm as a Sales manager. On his first day in the company, during the orientation programme, the CEO of the company told Ravi that he will have to simultaneously perform the functions of management (planning, organising, staffing, directing, controlling) all the time. Which characteristic of management was the CEO referring to? 

(a) Management is a continuous process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is goal oriented

40. Unlike professions such as medicine or law which require a practising doctor or lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager to possess any such professional degree. Identify the characteristic of the profession being discussed above which is not being strictly met by management. 

(a) Well defined body of knowledge 
(b) Restricted Entry 
(c) Professional Association 
(d) Ethical code of conduct


41. “Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisation's interest.” The limitation of planning being referred to in the above statement is-------------------------. 

(a) Planning does not guarantee success 
(b) Planning may not work in a dynamic environment 
(c) Planning leads to rigidity 
(d) Planning is a time consuming process.

42. The technique of Scientific Management given by Taylor, which aims to establish interchangeability of manufactured parts and products is ...…………………….. 

(a) Method Study 
(b) Motion study 
(c) Standardization 
(d) Differential Piece wage system.

43. For the following two statements choose the correct option: Statement I: Advertising is an impersonal form of communication Statement II: Advertising lacks direct feedback Choose the correct option from the options given below: 

(a) Statement I is correct and II is wrong 
(b) Statement II is correct and I is wrong 
(c) Both the statements are correct 
(d) Both the statements are incorrect

44. KTX Group is rolling out an initiative to help create wealth for its employees through the implementation of Employee Stock option. Through motivation and leadership the management will help individuals to develop team spirit, cooperation and commitment to the success of the group. The following importance of management is highlighted above: 

(a) Management helps in achieving personal objectives 
(b) Management helps in the development of society 
(c) Management creates a dynamic organisation 
(d) Management increases efficiency

45. If there is a plan to increase production then more labour, more machinery will be required. This step in the process of planning will involve organising for labour and purchase of machinery. Identify the step in the planning process being discussed above. 

(a)Identifying alternative courses of action 
(b) Setting objectives 
(c) Selecting an alternative 
(d) Implementing the plan
46. Taylor proposed eight specialists from whom each worker will have to take orders from as part of the technique of Functional Foremanship specified by him. Those with technical, mastery, intelligence and grit may be given----------------------------- work. Those with energy and good health may be assigned ---------------- work. 

(a) Planning, Execution 
(b) Execution, Planning 
(c) Production, Planning 
(d) Implementation, Production

47. A person feeling hungry may get food by offering to give money or some other product or service in return to someone who is willing to accept the same for food. The important feature of marketing illustrated above is: 

(a) Exchange mechanism 
(b) Customer value 
(c) Creating a market offering 
(d) Needs and wants

48. Assertion :( A) Planning is futuristic Reason: (R ) Planning is concerned with the future which is certain and does not require forecast 

( a) Both (A) and ( R ) are correct 
( b) (A) is correct ( R) is incorrect 
( c ) Both (A) and ( R) are correct, and R is the correct explanation of R 
( d) Both (A) and ( R) are correct, and R is not the correct explanation of R

Read the following text and answer question number 49-54 on the basis of the same. 'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent. 

49. Identify the philosophy that is being followed by S&M through which it is dividing the decision making responsibilities among hierarchical levels. 

(a) Delegation of authority 
(b) Decentralization of authority; 
(c) Division of work 
(d) Span of management.

50. ‘Why is there, need to apply the philosophy being followed by S&M, with caution? 

(a) As it can cause a delay in communication 
(b) As it can cause disintegration of the organisation 
(c) As it can increase the workload of the top management 
(d) As it can reduce the chances of growth of the firm.


51. The application of the philosophy discussed above can foster a sense of competition amongst the departments, which in turn will help the firm in the following manner: 

(a) Facilitates growth 
(b) Better control 
(c) Relief to top management 
(d) Quick decision making.

52. Quote the line from above which highlights the importance of the philosophy towards providing management education to employees. 

(a) “Maintain short lines of communication 
(b) ‘Accelerate the development of talent’ 
(c) ‘selective dispersal of authority; 
(d) ‘Recognises decision makers need for autonomy’
53. As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because: 

(a) There is no requirement for approval from many levels 
(b) Organisation is able to generate more returns 
(c) There are innovative performance systems 
(d) It's a means of management education

54. The philosophy being followed by S&M is not followed by most other companies. This tells us that the philosophy is : 

(a) Optional 
(b) Compulsory 
(c) Limited to superior and his subordinate 
(d) Merely done to lessen the burden of the manager

55. Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe of at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in their balconies, rooftops and back gardens. As he had been focussed on eating right the thought of domesticating honey bees to promote healthy consumption habits and seeing honey being cultivated right before his eyes was mesmerising for him. Identify the factor constituting the general environment being discussed above.

(a) Economic environment 
(b) Social environment 
(c) Technological environment 
(d) Political environment

56. Zolo, a marketer of cars having 40 % of the current market share of the country aims at increasing the market share to 70% in next few years. For achieving this objective the manager of the company specified the action programme covering various aspects. Identify the function of marketing discussed above: 

(a) Customer support services 
(b) Gathering and Analysing market information 
(c ) Product designing and development 
(d) Marketing Planning

57. Style and Fit, a footwear manufacturing company has decided to offer 50 % off on all its products due to the fall in demand of its products as more efficient substitutes have been introduced in the market. Identify the pricing objective included by the firm which has made the firm resort to discounting its product. 

(a) Obtaining market share leadership 
(b) Surviving in the competitive market 
(c) Attaining product quality leadership 
(d) Protect the interest of public

58. A sanitizer manufacturing company wants to become a market leader. For this purpose the manager follows an activity with certain logical steps. The first step suggested by him is to increase profits by at least 30% in the next quarter. What will be the last step of the activity being followed by the manager. 

(a) Follow-up action 
(b) Identifying alternative course of action 
(c) Setting objectives 
(d) Evaluating alternative courses of action
59. In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority under Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of Management given by Fayol, If Ismail has to communicate with Hussain who is at the same level of authority then illustrate the route he will have to traverse. 

(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain 
(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail 
(c) Ismail-Chris-Shalleen-Preeti-Hussain 
(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

60. According to the technique of Scientific management “Differential Piece Wage system” How much more will a worker making 60 units earn as compared to a worker making 49 units? If the standard output per day is 50 units and those who make standard output or more than standard get Rs. 75 per unit and those below get Rs. 65 per unit. 

(a) Rs. 4500 
(b) Rs. 3185 
(c) Rs. 1315 
(d) Rs. 3250

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