CBSE Class 10 Sample Paper 2027 for Elements of Business

FOR CBSE CLASS 10 PREPARATION

CBSE Class 10 Sample
Paper 2027 for
Elements of Business
EXAM YEAR TYPE SUBJECT

CBSE Class 10 2027 Sample Paper Elements of Business

Notes · Sample Papers · Previous Year Papers · Mock Tests

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ELEMENTS OF BUSINESS (Subject Code 154)
CLASS X (2026–27)
Sample Question paper

Time allowed: 3 Hours Maximum Marks: 70

GENERAL INSTRUCTIONS:
I. This question paper contains 30 questions. All questions are compulsory.
II. Q.1 to 18 are Multiple Choice Type Questions, carrying 1 mark each.
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III. Q.19 to 22 are Short Answer Type Questions, carrying 3 marks each. They are to

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be answered in 60 to 80 words.

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IV. Q.23 to 26 are Short Answer Type Questions, carrying 4 marks each. They are to

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be answered in 80 to 100 words.
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V. Q.27 to 30 are Short Answer Type Questions, carrying 6 marks each. They are to
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be answered in 100 to 150 words.

Q.No. Question Marks
1. Read the following Assertion (A) and Reason (R). Choose the correct option from 1
those given below:
Assertion (A): E-mail has become an essential tool of communication for the modern
business organisations.
Reason (R): E-mail facilitates quicker transmission of information, reduction in cost of

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communication, and easier storage/retrieval of business records.

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A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct

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explanation of Assertion (A).

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B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
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explanation of Assertion (A).
C) Assertion (A) is true, but Reason (R) is false.
D) Assertion (A) is false, but Reason (R) is true.
2. The liability of equity shareholders is __________. 1
A) Limited C) Unlimited
B) Zero D) Equal
3. Identify, which of the following statements correctly describes the hire purchase
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system?
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A) The buyer becomes the owner of goods immediately after taking possession.
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B) The buyer pays the full price in lump sum at the time of purchase.

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C) The buyer gets possession of goods immediately but ownership is transferred

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D) The seller cannot repossess the goods in case of default.
4. Identify, which of the following is commonly sold through vending machines? 1
A) Furniture C) Jewellery
B) Snacks and beverages D) Cars

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5. Goods sold on approval basis are recorded as sales by the seller: 1
A) Immediately after the goods are dispatched.
B) Only when the buyer approves or accepts the goods.
C) As soon as payment is received in advance.
D) When the goods are packed for delivery.
6. Read the following Assertion (A) and Reason (R). Choose the correct options from 1
those given below:
Assertion (A): Departmental stores generally require heavy capital investments.
Reason (R): Departmental stores operate on a large scale and maintain a variety of
goods.
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, but Reason (R) is false.
D) Assertion (A) is false, but Reason (R) is true.
7. Identify, which of the following is an example of non-verbal communication. 1
A) Writing a report. C) Speaking in a meeting
B) Using facial expressions D) Sending a text message
OR
Feedback in the communication process helps to _________.
A) start the communication C) encode the message
B) know if the message is understood D) create barriers
8. Automated vending machine is an example of_____________retailing. 1
A) Itinerant C) Large scale
B) Non-store D) Wholesale trade
9. From the following, identify the correct example of a chain store: 1
A) A small roadside tea stall C) A branch of Big Bazaar in Delhi
B) A weekly village market D) A street hawker
10. Read the following Assertion (A) and Reason (R). Choose the correct options from 1
those given below:
Assertion (A): Mail order houses operate by sending catalogues or advertisements
to customers, who place orders by mail or online.
Reason (R): Mail order houses do not require physical retail stores to sell their
products.
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, but Reason (R) is false.

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D) Assertion (A) is false, but Reason (R) is true.

11. Read the following statements carefully: 1
Statement I: Equity Shareholders enjoy voting rights in company.
Statement II: Equity Shareholders get a fixed rate of dividend.
In the light of given statements, choose the correct option from the following:
A) Statement I is true, Statement II is false.
B) Statement II is true, Statement I is false
C) Both the statements are true.
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D) Both the statements are false.

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Retained Earnings is also known as _______.
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A) Self- financing C) Ploughing Back of Profits
B) Internal financing D) Trade Credit
12. The board of directors of a Joint Stock Company is elected by__________ 1
A) Public C) Shareholders
B) Government bodies D) Employees
13. Credit extended by one trader to another for the purchase of goods and services is 1
called as _______. (Choose the correct option to fill up the blank)
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A) Bank Overdraft C) Term Loan
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B) Trade Credit D) Lease Financing
14.
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A retail outlet that deals in a single line of products such is known as____________. 1

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A) Departmental Store C) Super Market
B) Multiple Shop D) Specialty Store
15. Buying goods on the basis of a small representative portion shown by the seller is 1
known as___________ (Choose the correct option to fill up the blank)
A) Purchase by Description C) Purchase by Sample
B) Hire Purchase D) Cash on Delivery
16. Read the following Assertion (A) and Reason (R). Choose the correct alternative from 1

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those given below:

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Assertion (A): Multiple shops operate under centralised management and follow
uniform policies in all their branches.
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Reason (R): In multiple shops, all major decisions regarding pricing, purchasing, and
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a 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, but Reason (R) is false.
D) Assertion (A) is false, but Reason (R) is true.

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17. In case of auction sale, a bid may be withdrawn__________ 1
A) after acceptance by the auctioneer C) after delivery of goods.
B) before acceptance by the auctioneer D) after payment is made
18. A credit note is issued by the seller to__________. 1
A) Increase the amount payable.
B) Acknowledge receipt of advance
C) Reduce the amount receivable from the buyer
D) Cancel the order
19. Read the following text carefully:
Riddhi Garments Ltd., headquartered in Jaipur, exports designer clothes to buyers in
the USA and Australia. Earlier, the company’s managers had to travel abroad
frequently to finalise orders and resolve business issues. However, the company
recently adopted a digital communication system that allows participants in different
countries to interact face-to-face, share documents, and make presentations instantly
through the internet.
With the help of this system, Riddhi Garments Ltd. has been able to speed up
decision-making, improve coordination with foreign clients, and significantly reduce
travelling and accommodation expenses.
In the light of the above text and common understanding, answer the following
questions:
1. Identify the communication system adopted by Riddhi Garments Ltd. 1
2. State any two features of this communication system. 2
20. “Vindhya Publications Pvt. Ltd.” has been operating successfully for several years.
Due to increasing demand and expansion plans across the country, the management
is planning to convert it into a public company so that it can raise funds from the
general public.
Question: 3
List any three features of a Public Company.
21. Read the following text carefully:
Abhimanyu is the Sales Manager of AAMC Appliances Ltd. The company recently
launched a new product and Abhimanyu wanted his sales team to understand its
features clearly. He carefully prepared a presentation explaining the product
specifications, pricing, and target customers. During the meeting, he used simple
language and real-life examples to explain the details.
After delivering the message, Abhimanyu asked the team members to share their
understanding of the product and clarify doubts. He also requested weekly sales
reports to check whether the team had understood the instructions properly. As a
result, the sales team confidently explained the product to customers and sales
increased steadily.
In the light of the above text and common understanding, answer the following
questions:
A) Identify the sender and the receivers in the above case. 2
B) Which step of the communication process is involved when Abhimanyu 1
prepares a presentation? Explain briefly.

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Raman Ltd. is planning to expand its business operations. The Finance Manager
suggests raising funds through equity shares, while the Managing Director prefers
taking a long-term loan from a bank.
Questions:
A) Identify the two sources of finance being discussed. 1
B) State any two differences between these two sources of finance. 2
23. Radhika, a young rural girl, visited Delhi during her school holidays to meet her
relatives. One afternoon, she accompanied her cousins to a large shopping outlet,
located in the heart of the city. As she stepped inside, she was amazed to see the
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extensive variety of products available under one roof—from daily-use items to

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premium branded goods. She also noticed that the store provides additional facilities

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such as clean restrooms and a restaurant where customers can relax and eat.
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Questions:

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A) Identify the type of store visited by Radhika.
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B) Quoting relevant lines from the passage, explain any three features of this type 3
of store
24. Read the following text carefully:
Megha works as a sales executive in a reputed furniture showroom. She greets every
customer warmly and patiently explains the features, price, and maintenance of
different products. She never forces customers to buy but helps them compare
options according to their budget and preferences. Megha remains calm even when
customers raise complaints or ask repeated questions. She also keeps herself
updated with the latest designs and trends in the market. Due to her polite behaviour

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and product knowledge, many customers specifically ask for her assistance.

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State and explain any two qualities of a good salesman reflected in the above case. 4

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25. Distinguish between Cash and Credit transaction on the basis of:
(a) Meaning
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(b)Time of payment 2+2
26. Write short notes on:
(i) Internal Business Communication a g (ii) Non- Verbal Communication 2+2
27. Read the following text carefully:
Rachit wanted to buy a laptop but did not have enough money to pay the full amount
at once. He purchased the laptop from a showroom under the hire purchase system.
He paid ₹10,000 as a down payment and agreed to pay the remaining amount in
monthly instalments. The ownership of the laptop would be transferred to Rachit only
after the last instalment is paid. If he failed to pay any instalment, the seller had the
right to take back the laptop.
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In the light of the above text and common understanding, answer the following
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questions:
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a) Identify the method of sale used in the above case. 1

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b) State any two features of this system. 2

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d) State two advantage of this system for buyers. 2

28. Discuss the following:
(i) External Communication (ii) Vertical Communication 3+3

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Explain any two barriers of effective communication.

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29. Distinguish between Public company and Private company on the basis of:
(a) Number of Members 2
(b) Number of Directors 2
(c) Transfer of Shares 2
30. Explain any three importance of personal selling to a business organization. 6
OR
Explain the importance of advertising. 6

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