CBSE Class 12 Sample Paper 2025 for Business Studies

CENTRAL BOARD OF SECONDARY EDUCATION

SAMPLE PAPER
CLASS 12
2025

BUSINESS STUDIES (054)

CLASS XII (2024-25)

SAMPLE QUESTION PAPER

TIME: 3 HOURS M.M. – 80
• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.

Q.NO. QUESTION MARKS

1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 1
toys, Mr Ahrawat noticed that the workers in the factory were not giving their
best as the physical conditions in the factory were not good. He conducted an
experiment to see the effect of improvement in the physical conditions in the
factory on the performance of the workers, by providing adequate ventilation
and water facilities. He observed that the fatigue level of the workers reduced.
The nature of management being highlighted in the above case is:
A. Management as science
B. Management as profession
C. Management as art
D. Both A. and C.
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 1
responsible for promoting exhibitions and events. In the previous season, she
defined the total work of managing the events into graphic designing,
registration inquiries, bill payments, etc, in order to facilitate specialisation.
However, instead of allocating work, she had assigned each team member the
full responsibility of managing the promotion of an entire event. Inspite of
holding regular team meetings to take feedback, Jasmine found problems
throughout the events season in the quality of graphic design, registration
inquiry, bill payments, etc,.
For the upcoming events season, Jasmine has decided to divide these
responsibilities on the basis of her observation of the areas in which the
individual team members have excelled in the previous season and allocate
the roles based on their skills and competencies.
Identify the step in the organising process which was not properly performed
in the previous season but has been duly performed for the upcoming season.
A. Identification and division of work
B. Establishing reporting relationships
C. Departmentalisation
D. Assignment of duties
3. Read the following statements: Assertion (A) and Reason (R). Choose the 1
correct alternative from those given below:

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Assertion(A): Financial Planning aims at enabling the company to tackle
the uncertainty in respect of the availability and timing of the funds.
Reason(R): Capital structure refers to the mix between owners’ and borrowed
funds
Alternatives :
A. Both Assertion (A) is false and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of the Assertion.
D. Both Assertion (A) and Reason (R) are true, and Reason (R) is the
correct explanation of the Assertion.
4. Read the following statements carefully: 1
Statement I: Secondary Market directly promotes capital formation.
Statement lI: Capital market deals in medium and long term securities such
as equity shares and debentures.
In the light of 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 II is true, Statement I is false.
5. Choose the statement that correctly highlights the benefit of using external 1
sources of recruitment.
A. Competitive spirit among the existing staff
B. Reduction in employees turnover
C. Helps in increasing employees satisfaction
D. Develops a sense of security amongst employees
6. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the 1
needs of both industrial users and consumers. The company is providing easy
finance facilities at a low rate of interest, which has considerably increased the
demand for the product. The company has installed a new branch
management software to efficiently manage and coordinate activities across
their multiple branches and locations.
Identify the components of the business environment from the above case
study.
A. Political and economic environment
B. Economic and social environment
C. Technological and legal environment
D. Economic and technological environment
7. 1

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Identify the responsibility that a consumer fulfills when he looks for the quality
marks given above:
A. Assert yourself to ensure that you get a fair deal
B. Getting a proper receipt
C. Buy only standardised products
D. Be honest in your dealings

For Visually Impaired Candidates:
When a consumer looks for FPO mark while purchasing a bottle of jam or 1
hallmark when purchasing jewellery, which consumer responsibility has he
kept in mind:
A. Assert yourself to ensure that you get a fair deal
B. Getting a proper receipt
C. Buy only standardised products
D. Be honest in your dealings
8. Read the following statements: Assertion (A) and Reason (R). Choose the 1
correct alternative from those given below:
ASSERTION (A): Controlling can prevent deviations.
REASON (R): Controlling helps in minimising deviations by taking actions
and decisions that reduce their recurrence.
A. Both Assertion (A) and Reason (R) are true and Reason is the correct
explanation of Assertion.
B. Both Assertion(A) and Reason (R) are true and Reason is not the
correct explanation of Assertion.
C. Assertion (A) is true, Reason (R) is false.
D. Assertion(A) is false, Reason(R) is true.
9. ‘Joining a job marks the beginning of socialisation of employees at the 1
workplace. The employee should be given a post for which he has been
selected.’
Place the subsequent steps of staffing in a small organisation in the correct
order:
A. Training and development, promotion and career planning,
performance appraisal, compensation
B. Performance appraisal, training and development, promotion and
career planning, compensation
C. Training and development, performance appraisal, promotion and
career planning, compensation
D. Training and development, performance appraisal, compensation,
promotion and career planning
10. Spiceworks, a company providing financial services to its clients is keeping a 1
close check on the employee’s activities by using biometric and retina
scanning as modes of accessing the office premises, in order to ensure greater
security of information in the organisation.
Choose the correct point of significance of controlling highlighted above:
A. controlling helps in achievement of organisational goals
B. controlling helps in ensuring order and discipline
C. controlling helps in improving employees motivation
D. controlling enables optimum utilisation of resources

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11. Identify the incorrect statement with respect to ‘Investment decision’: 1
A. Net working capital refers to excess of current assets over current
liabilities
B. Current assets are those assets which get converted into cash within
one year
C. Capital budgeting decisions are irreversible.
D. Size of the assets, Profitability and competitiveness are not affected
by capital budgeting decisions.
12. State Commission has the jurisdiction to entertain complaints where value of 1
goods and services paid as consideration is ________
A. More than ₹1 crore and not more than ₹ 5 crore
B. More than ₹10 crore
C. Less than ₹1 crore
D. More than ₹1 crore and not more than ₹10 crore
13. Match the statements given in column I with the characteristic of business 1
environment given in column II
COLUMN I COLUMN II

(a) Increased demand of Khakhra and Thepla i. Uncertainty
in the region of Gujarat as compared to
Delhi region

(b) Digital academic certificates are issued to ii. Dynamic
students accessible in a secured manner to
eliminate undesirable practices like
corruption and manipulation of records
under Digital India Initiative. Such
technological improvements are happening
at a very fast pace.

(c) Fashion market is facing both opportunities Iii. Relativity
and challenges. Therefore it is difficult to
predict the future of the fashion market.

(d) A new government will result in changing Iv. Interrelatedness
government rules, fiscal policies, market
conditions etc
Choose the correct option from the following:
A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv)
B. (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
C. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
14. The process of classification of products into different groups, on the basis of 1
some of the important characteristics such as quality, size, etc. is known as:
A. Branding
B. Standardisation
C. Grading
D. Marketing planning

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15. Shiwakumar runs a legal consultancy firm in Chhattisgarh. Whenever the firm 1
hires new employees, on the first day of joining, they are welcomed to the
organisation and are given details about the dress code, lunch timings,
introduction to daily operations and fellow colleagues. They are also
familiarised with the organisational policies and procedures, emergency exits,
evacuation procedure, etc.
Name the type of training which is provided by Shiwakumar in his firm.
A. Apprenticeship training
B. Vestibule training
C. Induction training
D. Internship training
16. Identify the incorrect statement with respect to Consumer Protection in India. 1
A. It not only includes educating consumers about their rights and
responsibilities but also helps in getting their grievances redressed
B. It not only requires a judicial machinery for protecting the interest of
consumers but also requires the consumers to get together and form
themselves into Consumer associations for protection and promotion of
their interests.
C. It is the moral duty of any business to take care of consumers' interest
and avoid any form of exploitation.
D. The provisions of Consumer Protection Act came into force from
1981.
17. Identify the decision which is not taken under financial management. 1
A. Dividend Decision
B. Capital Budgeting Decision
C. Pricing Decision
D. Both B. and C.
18. What are the factors that affect financing decisions? 1
(a) Cash flow position of the company
(b) Stability of earnings
(c) Degree of financial risk
(d) Contractual constraints
(e) State of capital market
(f) Level of competition
Choose the correct alternative from the following:
A. (b), (c) and (f)
B. (d), (e) and (f)
C. (a), (c) and (d)
D. (a), (c) and (e)
19. Consumers can ask anything regarding the date of manufacturing, MRP, etc, 1
about the product that he intend to buy.
Identify the consumer right highlighted in the above lines.
A. Right to be informed
B. Right to be assured
C. Right to be heard
D. Right to safety
20. Read the following statements carefully: 1
Statement I: Cost of debt is lower than cost of equity for a company.

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Statement II: The objective of financial management is to increase
shareholder’s wealth.
In the light of 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 II is true, Statement I is false.
21.(A) State the meaning of single use plans and standing plans 3
OR
21.(B) State how planning
(I) reduces creativity 1½
(II) leads to rigidity. 1½
22. (A) Explain the concept of leadership. Give two situations in which autocratic 3
leadership style is most effective.
OR
22. (B) Explain the concept of communication. Give the meaning of formal and 3
informal communication.
23. From the following information regarding Aditya Ltd. which is in the business 3
of manufacturing green tea, calculate the Return on Investment and Interest
Coverage Ratio of the company: (Show working)
Earning before interest and tax ₹ 15,00,000
10% debentures ₹ 12,00,000
Equity Share Capital (₹10 each) ₹ 18,00,000
Tax Rate 40%
24. Mr Vivek Vaswani, a foodpreneur combined his passion for food with his
entrepreneurial skills and started his innovative fast food outlet OH CHILLI! in
2021. He had started his career as a food blogger and had noticed that
numerous Indian consumers were looking for reasonable and pure vegetarian
fast food options for dining out. The high end restaurants were not opted by
many as they were exorbitantly priced. Though many global fast food chains
were running across the country, yet not many outlets offered reasonable and
healthy pure vegetarian fast food options to consumers. OH CHILLI! became
a pioneer in offering a healthy and delicious variety of food.
What came as a surprise for consumers was that even without using onion or
garlic in the pasta sauce, marinade and ketchup ,the food could actually taste
great. The company witnessed an increase in net profit of 26% in its second
financial year and became a market leader.
(I) State the concept of business environment. 1
(II) Identify and explain in what way, a good understanding of business 2
environment enabled Mr. Vivek Vaswani to improve the performance of the
enterprise.
25. The General manager of a reputed organisation, Mr. Agastaya Lokhande,
made the following announcement at the Annual General Meeting of the
company- “When we think of a brand, we think of reputation, but the reputation
is made or broken by the quality of products and customer representation. If
people are miserable, they can't give their best work and the brand suffers. On

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the contrary, positive results can be observed if there is job satisfaction,
effective and efficient functioning.”
(I) Identify and explain the feature of management discussed by Mr Agastaya 1
in his announcement.
(II) Explain any three reasons that make management important to any 3
organisation.
26. (A) In order to streamline the selection procedure, so as to minimise the margin 4
of errors, certain tests are carried out that attempt to measure the
characteristics of individuals. Explain any four such tests.
OR
26. (B) Since jobs have become more complex, the importance of employee training
has increased. Training programmes provide numerous benefits to workers. 4
Explain any four points that support this statement.
27. When Bhaanupriya joined as technical head of Logic Lotus Innovators, she
was keen on increasing the productivity and profitability of the company.
However, she observed that the employees were demotivated as no attention
was given to their work. Also, the workers were given little freedom to make
decisions.
Bhaanupriya decided to stimulate the employees by giving each worker T-
shirts with their name on it. She also decided to include workers in work
committees. This helped in improving the performance of the workers.
(I) On the basis of the understanding of Maslow’s Need Hierarchy Theory
of motivation, identify the human need that Bhaanupriya has recognised 1
in order to make the subordinates act towards achievement of
organisational goals.
(II) Identify and explain two incentives that have been provided by 3
Bhanupriya to improve the performance of the employees.
28. (A) Explain how Planning and controlling are both backward looking, as well as 4
forward looking functions.
OR
28. (B) The first step in the controlling process is setting up performance standards. 4
Explain the subsequent two steps in the process of controlling.
29. When Chandrashekhar Shukla returned to India after completing a Certificate 4
course in Food Quality Assurance and Quality Control from the Netherlands,
he was convinced that he would fulfil his grandfather's dream of converting
their 58 acre land into a fertile farm. He started by setting out specific goals
and laid down related activities to be performed to achieve the goals. Soon
he launched his own company ‘Food and Agribusiness Solutions Private
Limited’.
He sought to ensure that the future events effectively meet the best interest
of the company. He prepared an annual statement for production and sales,
based on sales forecasting. He noticed that the farmers grew only paddy due
to which land remained idle for the subsequent 8 to 9 months of the year. He
identified and assessed various alternatives through which farms could be
utilised for the remaining months of the year.
Through his accurate vision, judgement and systematic thinking based on
analysis of the facts, he presented a scheme to the farmers where both paddy
and vegetables could be grown.

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Identify and explain the features of one of the functions of Management
highlighted above.
30. Give any four points of difference between advertising and personal selling. 4

31. It was established by the Government of India on 12 April 1988 as an interim
administrative body to promote orderly and healthy growth of the securities
market and for investor protection. It was given statutory status in 1992
through an Act of Parliament.
(I) Identify the regulatory body which has been highlighted above. 1
(II) State the three objectives of the regulatory body identified in part (I). 3
(III) State any two functions that are performed for the development of the 2
securities market by the regulatory body identified in part (I).
32. (A) Differentiate between functional structure and divisional structure on the basis 6
of:
(I) Formation
(II) Specialisation
(III) Responsibility
(IV) Managerial development
(V) Cost
(VI) Coordination
OR
32. (B) ‘Delegation helps a manager to extend his area of operations as without it, his 6
activities would be restricted to only what he himself can do.’
In light of the above statement, explain how effective delegation helps the
organisation in achieving objectives.
33. Leena has been appointed as the Operations Manager in a small trading 6
company dealing in garments, with growing online sales. The company has
recently rented space in a warehouse to store garments and mail out orders.
In order to take over the responsibilities of order fulfilment, Leena promotes an
associate, Kushagra to the post of Inventory and Order fulfilment Supervisor.
Kushagra has been given the task to assess whether it is best to process
orders as they come in or let them accumulate and then to process them in
batches. He concludes that accumulating and then processing them in
batches is the best way of fulfilling orders, in order to minimise cost and
maximise customer satisfaction.
Through several readings Leena finds that the standard time taken from the
placement of order to the delivery of garments for a batch of 100 pieces is 72
hours. This helped her to determine the labour cost.
On the basis of the understanding of concepts of scientific management,
identify and explain the techniques used by Leena and Kushagra to improve
the performance of the employees.
34. (A) Explain the four elements of marketing mix. 6
OR
34. (B) Explain any four factors affecting determination of the price of a product or 6
service.

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1 Time Table 09 Sample Paper
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