Class 12 PT II Question Paper 2025-26 Business Studies

CBSE CLASS 12
PT II Question Paper
Session 2025-26

BUSINESS STUDIES

Exam CBSE Class 12
Subject Business Studies
Session 2025-26
Document Type PT II Question Paper

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Question Paper a
SECOND UNIT TEST
SESSION – 2025-2026

CLASS – XII MAXIMUM MARKS: 40
SUBJECT: BUSINESS STUDIES TIME: 1:30 Hrs.
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General Instructions:

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a.� This question paper contains 4 pages and 17 questions. All questions are compulsory.

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b.� Question No. 1 to 10 are 1 mark questions. Question No. 11 and 12 are 3 marks
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questions. Question No. 13 to 15 are 4 marks questions and question No. 16 and 17
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are 6 marks questions.
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1. The process of estimating fund requirements of a business and specifying the sources of funds is 1
called:
(A) Capital Structure (B) Financial Planning
(C) Financial Management (D) Capital Budgeting

2. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative 1

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among those given below:

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Assertion (A): Amount of Earnings is a major determinant of the decision about dividend.

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Reason (R): Dividends are paid out of current and past earnings.

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(A) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of

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

3. Which market should we approach for the purpose of buying shares of a company, which are being 1
traded at National stock exchange?
A)� Money market

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B)� Primary market

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C)� Secondary market

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D) Both (B) and (C)

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4. Which of the following statements is incorrect?
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funds, both debt and equity are raised and invested.
(B) Secondary market is the market where securities are sold by the company to the investor
directly or through an intermediary.
(C)Primary Market is the Market where only buying of securities takes place. Securities cannot
be sold there.
(D)Money Market is a market for short-term funds which deals in monetary assets whose period
of maturity is upto one year.

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a For more Question Papers, Sample Papers, Notes & Syllabus visit Page 1 of 4

5. Match the following by choosing the correct option. 1

Column A Column B
(i) New issues market (a) Depository
(ii) Trading of the existing securities (b) Dematerialisation
(iii) Holding securities in electronic form (c) Primary market
(iv) A custodian of the securities in electronic form (d) Secondary market

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

6. Which marketing philosophy assumes that customers will buy products that are easily available 1
and inexpensive?
A)� Product concept
B)� Selling concept
C)� Production concept
D)� Societal concept

7. Read the following statements and choose the correct alternative among those given below: 1
Statement I: That part of a brand which can be spoken is called a brand name.
Statement II: That part of the brand which is given legal protection is called Trademark.
Alternatives:
(A) Both the Statements are true.
(B) Both the Statements are false.
(C) Statement I is true and Statement II is false.
(D) Statement II is true and Statement I is false.

8. Identify the tool of promotion used by ‘Raymond Garments’ to boost its sales in short term: 1
(A) Advertising
(B) Personal Selling
(C) Sales Promotion
(D) Public Relations

9. As per Consumer Protection Act, 2019, ‘The consumer has a right to get relief in case the 1
product or service falls short of his expectations’. Which consumer right is discussed in the
above statement?
(A) Right to be heard (B) Right to be assured
(C) Right to seek redressal (D) Right to safety

10. Mahavir bought a Laptop for ₹90,000. It was later found to be defective. He asked the company 1
to exchange it, but the company refused to do so. So, he filed a complaint in the District
Commission. However, the District Commission also disallowed it. As he was not satisfied with
the order of District Commission, he decided to appeal further after 60 days. In which redressal
agency Mahavir can appeal against the order of District Commission?
(A) Supreme Court (B) National Commission
(C) State Commission (D) Cannot Appeal

For more Question Papers, Sample Papers, Notes & Syllabus visit Page 2 of 4

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11. State any three factors affecting the financial decision that is a
concerned with raising of finance 3
using shareholders' funds and borrowed funds.
OR
You are the Finance Manager of a newly established manufacturing company. Explain any three
factors that you will consider while determining the fixed capital requirements of the company.

12. ABC Ltd. issued prospectus for the subscription of its shares for ₹500 crores in 2024. The issue 3

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was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata

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basis. Later SEBI inspected the prospectus and found some misleading statement about the

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management of the company in it. SEBI imposed a penalty of ₹5 crores and banned its three

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executive directors for dealing in securities market for three years. Identify the function and its

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type performed by SEBI in above case.

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13. Differentiate between ‘Capital Market' and 'Money Market' on the basis of: 4
(i) Participants; (ii) Instruments; (iii) Investment Outlay; (iv) Liquidity.

OR

Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a
Demat Account and a bank account for cash transactions in securities market. Discuss the four
subsequent steps involved in the screen based trading for buying and selling of securities in this

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case.

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. local grocery shop. The information
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e on consuming it. She filed a case in the
14. Ashima purchased a bottle of tomato-sauce from the 4

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provided on the bottle was not clear. She fell sick

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District Forum under Consumer Protection
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(a)� Identify the important aspect neglected
the relief.
in the above case.
(b)�Explain briefly the three functions of the aspect identified in (a) above.

15. Explain the following consumer rights provided under the Consumer Protection Act, 2019: 4
(a) Right to be heard (b) Right to be informed.

16. Smart Stationery Ltd. wants to raise funds of ₹40,00,000 for its new project. The management is 6

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considering the following mix of debt and equity to raise this amount:

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Particulars Alternative I Alternative II Alternative III

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Capital Structure:

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Equity ₹40,00,000 ₹30,00,000
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₹10,00,000

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₹10,00,000 ₹30,00,000
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Debt 0

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Other details are as follows:

a Interest rate on Debt
Face value of Equity shares
=
=
9%
₹100 each
Tax Rate = 30%
Earnings before Interest and Tax (EBIT) = ₹8,00,000
Analyse the above three alternatives in order to the answer the following questions.
(a) State whether the shareholders gained or lost, in respect of earning per share in Alternative II
compared to Alternative I. Show your calculations clearly.

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a For more Question Papers, Sample Papers, Notes & Syllabus visit Page 3 of 4

(b) Under which of the three alternatives will the company be able to take advantage of Trading
on Equity?
(c) Does Earning per Share always rise with increase in debt? Give reason.

17. The elements of marketing mix are popularly known as 4 P's of marketing. Briefly explain these 6
elements.
OR
‘Determination of the Price of a Product’ is influenced by many factors. Explain any four factors
that have an influence on price.
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