Class 12 PT I Question Paper 2026-27 Business Studies

CBSE CLASS 12
PT I Question Paper
Session 2026-27

BUSINESS STUDIES

Exam CBSE Class 12
Subject Business Studies
Session 2026-27
Document Type PT I Question Paper

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Question Paper

SESSION – 2026-2027ag
Class: XII Maximum Marks: 40
Subject: Business Studies Time: 1 hr 30 Minutes
General Instructions:
1. This question paper contains 14 questions in 3 pages.
2. Marks are indicated against each question.
3. Attempt all parts of the questions together.

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4. Answer should be brief and to the point.

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5. Answers to the questions carrying 3 marks may be from 50 to 75 words.

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6. Answers to the questions carrying 4 marks may be about 150 words.

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eworking conditions and ensuring that quality of output is maintained is the gl1
7. Answers to the questions carrying 6 marks may be about 200 words.
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function ofg______________
1. Providing proper

a (B) Middle (C) Top ( D) All of these
level of management.
(A) Operational
2. Mr. Rajan works as a foreman in ‘Raj Lakshmi Automotives Limited’ a company 1
manufacturing cars. He is a subordinate to Mr. Ramesh who is in production in the factory.
Mr. Rajan is incharge of timely and accurate completion of job by workers working in the
production department. There are three other foremen working under Mr. Naresh, planning
incharge in the factory. Each of the foreman is specialist in his area and gives orders to
workers relating to it. The technique of scientific management, highlighted in the above case

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is:

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(A.) Method study (B.) Differential piece weight system
(C.) Functional foremanship
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(D.)Standardization and Simplification

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3. Two Big Banner Movies were scheduled to be released on the same date. However, at the 1
last moment, release of one movie had to be postponed due to opposition by a group of
people because of some unethical content of the movie. The loss suffered by movie
postponed, provided opportunity for the released movie to earn huge revenues. Which
feature of business environment is highlighted in the given case?
(A)�Relativity (B) Complexity (C)Uncertainty (D) Dynamic
4. Two friends - Ramesh Singla and Krishna Gopal are working as managers in different 1
companies. On Sunday, both together set off on traveling. Both began talking about the
activities going on in their respective companies. Mr. Ramesh said that during those days he

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was busy with the job of planning function of management. Also, he said that he was

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planning in such a way that the other managerial functions should be completed under the

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framework of plans prepared by him.

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Identify the feature of Planning described in the above discussion.
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las (A) Planning focuses on achieving objectives.
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(B) Planning is the primary function of management.
(C) Planning is Pervasive.
(D) Planning is continuous.
5. Assertion (A): The principle of 'Unity of Command' resembles a military organization where 1
an employee receives orders from one superior only.
Reason (R): Dual subordination leads to confusion, conflict, and overlapping activities,
undermining discipline.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).

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(B) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(C) (A) is true but (R) is false.
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(D) (A) is false but (R) is true.
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6. Assertion (A): Understanding business environment helps the firms to get first mover 1
advantage.
Reason (R) Environment scanning helps the firms to identify competitor‘s strategies.
Which one of the following is correct?
Codes :
(A)Both (A) and (R) are true and (R) is the correct explanation of (A)
(B)Both (A) and (R) are true but (R) is not the correct explanation of (A)
(C) (A) is true, but (R) is false.
(D)(A) is false but (R) is true.
7. "Management is considered to be an Art." Do you agree with this statement? Provide any 3
three arguments based on the features of art to justify your stance.
OR
Explain the 'Organizational Objectives' of management that a business entity must strive to
fulfil for long-term sustenance.
8. Explain with an example how an understanding of the business environment assists a 3
manager in:
(i) Identifying opportunities and getting the first-mover advantage.
(ii) Coping with rapid changes.
9. Pricey Medicines was a world level medicine manufacturing company. However recently its 4
fame had come down under the impact of resignations put forth by two of its departmental
heads. These departmental heads were experts in their fields. One was leading the marketing
department and the other was a scientist of repute who headed the manufacturing
department. In the top level management meeting it was found that such departmental heads
who were specialists in their areas can’t be tackled by unity of command. They were egoistic
as they were specialists.
After the meeting the things started to change for the organisation as all the departments
started to work with one single target of giving the company its lost fame. There was a
combined effort which doubled the revenue of the organisation. A special regulation system
of including every level manager was brought into action. Thus the overall functioning of the
organisation was improved.
In this case a concept of management was missing. Identify it and explain it. Also identify its
characteristics highlighted here.
10. Explain the following principles of management of Fayol: 4
(i) Division of Work
(ii) Authority and Responsibility
11. Explain the following dimensions of Business Environment: 4
(i) Economic Environment
(ii) Political environment
12. Matta Auto Ltd. manufactures different types of commercial vehicles. Their sales were 4
rupees two hundred crores in the previous year. The company has decided to increase sales
by 20% during the current year. It conducted internal as well as external audits for the same.
Through internal audits, they analysed the strengths and weaknesses of the business across
all the departments. External audit focused on the opportunities and the threats to the
constantly changing business environment. Thus, a comprehensive plan was prepared taking
into consideration the business environment and the necessary resources were allocated to
achieve the target. The company directed its officers throughout the country to follow the
plan. The company’s commitment to developing effective plans to achieve a consistent
increase in sales has ensured its continual growth over the past one decade.
Based on the above case identify and explain the two types of plans discussed above.

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. c13. Radhika opens a jewellery showroom in Jaipur after completing a coursee min jewellery
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divides the work into small tasks and each employee is trainedato perform his or her
designing. She has employed 11 persons in her showroom. For greater

specialised job. The salespersons are allowed to close a deal with the buyer by giving a
maximum discount of 10%; whereas the decision to give any further discount rests with
Radhika as the final authority. In the earlier days of starting the business, 5 of her employees
were asked to put in extra hours of work. In return, she had promised to give them a special
incentive within a year. Therefore, after 6 months when the business was doing well, she
awarded a cash bonus to each of these employees to honour her commitment. However,

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when it comes to settling the conflicts among her employees, she tends to be more biased

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towards her female employees.

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(i) In the context of the above case, identify and explain any three principles of

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management that are being applied by Radhika, from the paragraph by quoting the

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lines.
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(ii) Identify and explain the principle of management which is being violated by
Radhika by quoting lines from the above.
14. "Planning is an essential prerequisite for performance, but it does not automatically 6
guarantee success because it has to operate within several constraints." Explain this statement
by detailing any three internal and any three external limitations of planning.
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