CBSE Class 10 Sample Paper 2025 for Elements of Business

CENTRAL BOARD OF SECONDARY EDUCATION

SAMPLE PAPER
CLASS 10
2025

ELEMENTS OF BUSINESS (154)
CLASS X (2024-25)
SAMPLE QUESTION PAPER
TIME: 3 HOURS M.M. – 70
General Instructions:
• This question paper contains 30 questions. All questions are compulsory.
• Q.1 to 18 carries 1 mark each
• Q.19 to 22 carries 3 marks each
• Q.23 to 26 carries 4 marks each
• Q.27 to 30 carries 6 marks each
Q.NO. QUESTION MARKS

1. Name the method of communication which is used where face to face 1
communication is difficult and can be delivered to the receiver through post
offices or private couriers?
A. Email B. Telephone
C. Letter D. Video conferencing
2. Out of the following which source of finance is included in the category of 1
owner’s funds?
A. Debentures B. Equity shares
C. Bank Loan D. Public Deposits
3. Under which system, the seller has the right to repossess the goods in case 1
of default in payment?
A. Hire purchase B. Credit sale
C. Installment payment D. Cash sale
4. Identify the mode of receiving payment which is not appropriate in mail order 1
business?
A. Full advance payment B. Value payable post
C. Delivery through a bank D. Payment on credit terms
5. _________ type of large scale retail trade offers a large variety of goods and 1
satisfies all the needs of customers under one roof.
A. Discount store B. Departmental store
C. Multiple shops D. Convenience stores
6. Read the following statements carefully: 1
Statement I: In auction sale, the goods are displayed and there is a reserve
price below which goods are not to be sold.
Statement II: Goods delivered to the buyer ‘on approval’ basis are always
paid for in advance.
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
7.(A) _________ is the subject matter of communication which may contain facts, 1
ideas, feelings or thoughts.

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A. Feedback B. Sender
C. Receiver D. Message
OR
7.(B) _________ is not an email service provider. 1
A. Gmail B. Zoho
C. Outlook D. Bing
8. _________ is the type of retail trade in which coin operated machines are 1
used for selling products like hot beverages, tickets, milk, soft drinks,
chocolates etc.
A. Departmental store B. Multiple shops
C. Automated vending machines D. Mail order houses
9. Choose the incorrect statement about departmental stores. 1
A. They cater to the needs of rich people who care more for the services
rather than prices
B. There is no uniformity in decoration and each store is different from
other departmental stores
C. They do not provide credit facilities
D. They make extensive use of advertising, window displays to people
10. Trading of goods through mail order houses is not suitable for 1
A. Goods that can be graded and standardized
B. Goods that can be easily transported at low cost
C. Goods that have ready demand in the market
D. Goods that are perishable and bulky in nature
11.(A) ________ is the portion of net earnings which may be reserved in the 1
business for use in future.
A. Interest B. Retained Earnings
C. Dividend D. Debit balance of profit & loss account
OR
11.(B) _________ is the source of finance which is issued by the company and its 1
holders are entitled to receive interest but do not have the right to vote.
A. Debentures B. Equity shares
C. Bank loan D. Trade credit
12. Read the following statements: Assertion (A) and Reason (R). Choose the 1
correct alternative from those given below:
Assertion (A): Board of Directors of a company exercise full control over
the business.
Reason (R): Board of Directors are the owners of the company.
Alternatives:
A. Assertion (A) is true but Reason (R) is false.
B. Assertion (A) is false but Reason (R) is true.
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.
13. Out of the following choose a short-term source of finance. 1
A. Trade credit B. Equity shares
C. Public deposits D. Debentures

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14. Rashika sells only school uniforms in her shop. Name the type of retailer 1
she can be called.
A. General Store B. Departmental Store
C. Multiple shops D. Specialty stores
15. Sumesh is a manufacturer of cotton sarees. He wants to buy cotton fabric in 1
bulk. The best mode of purchase will be:
A. Purchase by inspection B. Purchase by description
C. Purchase by sample D. Both A. and B.
16. Read the following statements: Assertion (A) and Reason (R). Choose the 1
correct alternative from those given below:
Assertion (A): A Departmental store is a large establishment offering a
wide variety of products.
Reason (R): These stores are generally located at a central place in the
heart of the city.
Alternatives:
A. Assertion (A) is true but Reason (R) is false.
B. Assertion (A) is false but Reason (R) is true.
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.
17. An auction sale is complete on the 1
A. Fall of hammer B. Delivery of goods
C. Payment of price D. Both B. and C.
18. After sending an invoice, if the seller notices that the goods delivered to the 1
buyer have been under charged he can rectify his mistake by preparing a
A. Credit note B. Debit note
C. Letter of advice D. Letter of regret
19. Achintya India Life Insurance Co. Ltd. is a Life insurance company offering a
complete range of competitive insurance plans to its customers with prompt
and quality customer services. Hira Asset Management Company Pvt. Ltd. is
a professional Mutual fund house which manages various mutual fund
schemes.
(I) Identify the type of companies referred to in the above case study. 1
(II) Differentiate between the types of companies identified in part (I) on any 2
two basis.
20. Kaushal has invested ₹ 1,00,000 in the securities of Kinjal Enterprises Ltd.
Due to this investment, he is entitled to the right to vote and to participate in
the affairs of the company.
(I) Identify the source of finance that Kinjal Enterprises Ltd has raised through 1
issue of securities to Kaushal.
(II) State any two disadvantages of using the source of finance identified in 2
part (I)
21. Define channels of communication. Name any two types of channels of 3
(A) communication.
OR
21. Give the meaning of voicemail system in business. State any two advantages 3
(B) of voicemail.

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22. Urban Fresh is a popular grocery store in India which is a one-stop- shop for
all grocery needs. It offers products like fresh fruits, vegetables, dairy
products, packaged foods, and personal care items to the whole country
through its convenient locations.
(I) Identify the type of large scale retail trade referred to in the above case. 1
(II) State any two features of the type of retail trade identified in part (I). 2
23. Ms. Eshita Varshney is the finance manager of Hexagon Ltd, a toy 4
manufacturing company. The company requires ₹ 50 crore to expand its
operations in the states of Gujarat and Rajasthan. The Board of directors
asked Ms. Eshita to advise upon arrangement of funds. She has two options
-issue of equity shares or debentures. After a thorough analysis of facts, she
decides to go in favour of issuing debentures.
Give four reasons that Ms. Eshita Varshney may have given to convince the
directors to opt for debentures.
24. Explain in brief the following modes of purchase:
(A) (I) Purchase by sample 2
(II) Purchase by inspection 2
OR
24. Define purchase and sale. Differentiate between cash transaction and credit 4
(B) transaction.
25. Perfect look is a company manufacturing electric shavers and is looking out 4
for personal selling as the means to promote its product. It seeks to hire
effective salespersons for this purpose. List any four qualities that a good
salesperson should possess.
26. Deepika Rastogi, a senior Human Resource manager of Zooshi
Pharmaceuticals Ltd working in Gurugram was assigned the task of recruiting
two software developers for the company. She placed the advertisement on
the company’s website and received an application from Mr. Jasprit, a
software developer working in Canada. She arranged the interview with Mr.
Jasprit through a method that enabled her to see and talk to each other by
sitting at different locations.
(I) Identify and explain the method of communication used by Ms Deepika 2
Rastogi.
(II) Give any two benefits of using the method of communication identified in 2
part (I).
27. Write short notes on:
(A) (I) Horizontal communication 3
(II) Vertical communication 3
OR
27. (I) What is meant by External communication? Name any two types of 3
(B) External communication
(II) Name any three key elements of communication. 3
28. Radha, Basudha and Medha were friends working in a fast food outlet. One
day, while having lunch, Radha informed that she wanted to buy a car.
Basudha suggested to her to buy a car on hire purchase system of payment
whereas Medha suggested her to use the Installment system. Radha did not
have a clear understanding of how the two systems work.

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(I) Explain the meaning of hire purchase and Installment system of payment 2
to Radha.
(II) Differentiate between these two systems by giving four points. 4
29. Mr. Harsh Malhotra has recently set up a business organisation which is an 6
artificial person and is created by law through a proper legal procedure.
Identify the form of business organisation and explain any five of its features.
30. (I) Define television advertising. Give any two advantages. 3
(A) (II) Give any three points of significance of advertising. 3
OR
30. (I) Define sales promotion. 1
(B) (II) State any five tools used for sales promotion. 5

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