CUET Sample Paper for Business Studies

CUET UG
ENTRANCE
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2023
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2023 JUNE
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CUET 2023 Overview

CUET is a Common entrance exam. The full form of CUET is Common University Entrance Test. It
is organized by National Testing Agency at a National level. It is organized by National Testing
Agency as a National level exam in India for admission in All Central Universities, and State, Deemed,
Private Universities accepting CUET scores.

Highlights of the examination are as follows.

Aspects Details

Name of Exam CUET 2023

Full Form of CUET Common University Entrance Test

Organizing Body NTA

Full Form of NTA National Testing Agency

Type of Exam Common Entrance Exam

Level of Exam National

Region India

Official Website cuet.samarth.ac.in

Courses Where BA, BCA, B.Sc, B.Com, BJMC, B.Pharm, D.Pharm, B.Tech, B.Voc, BVA,
Admission is Through BFA, BPA, BSW, Integrated MA Integrated B.Ed, Integrated M.Sc,
CUET Integrated B.Tech-M.Tech, Integrated MPA, BA LLB, BBA LLB, Diploma,
Shastri,

Colleges Where All Central Universities, and State, Deemed, Private Universities acepting
Admission is Through CUET scores
CUET

Minimum Educational Class 12th
Qualification

Mode of Exam Computer Based Test-CBT

Type of Questions Objective type with Multiple Choice Questions

Marking Scheme +5, -1

CUET 2023 Exam Pattern

The exam pattern is as follows

▪ Mode of Exam – The exam is a Computer Based Test-CBT.
▪ Question type – The questions are Objective type with Multiple Choice Questions.
▪ Number of Subjects – A candidate can choose upto 10 Subjects for giving the Exam.
▪ Language of Question Paper – The question paper is in 13 languages (Assamese, Bengali,
English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Punjabi, Odia, Tamil, Telugu, and
Urdu).

Marking Scheme –
▪ Candidates get +5 marks for correct answer.
▪ And negative marks is -1 for incorrect answers

List of Languages/ Domain Specific Subjects /General Test offered under CUET (UG)-2023

Sample Paper
CUET 2023
Business Studies

Q.No. 1

Which is not a function of Management of the following?

(A) Planning

(B) Controlling

(C) Cooperating.

(D) Staffing.

Q.No. 2

Mr Reeshabh Bhandari is the chief manager in ‘Bhandari PustakParkashans’. He is fond of continuing to
present innovative ideas while planning for his business. His ideas are usually very significant. It has been
observed several times that these very ideas take the form of concrete plans. This is the very reason that Mr
Bhandari’s contribution to the growth and prosperity of the company continues to be quite great. Identify the
‘importance of planning’ described above.

(A)

Planning provides direction

(B)

Planning reduces the risk of uncertainty.

(C)

Planning reduces overlapping and wasteful activities.

(D)

Planning promotes innovative ideas

Q.No. 3

Which of the following quality a manager must possess to succeed in planning?

(A)

Reflective Thinking

(B)

Imagination

(C)

Farsightedness
---

(D)

All of these

Q.No. 4 CUET 2023
“Time Line” watch manufacturing company is a renowned company marketing watches. It performs various
activities like, market analysis, product designing or merchandising, packaging, warehousing, branding,
pricing, promotion and selling. The company maintains good customer relations through various follow up
activities. This helps the company in procuring repeat sales orders. (I) Name the concept related to the
activities mentioned in the above paragraph.

(A)

Marketing

(B)

Selling

(C)

Industry

(D)

Packaging

Q.No. 5

Which one of the following is a non-financial incentive?

(A)

Recognition

(B)

Perquisite

(C)

Retirement benefit

(D)

Stock option

Q.No. 6

Saurabh decided to start a chocolates manufacturing business. He set the target of earning 10% profit on
sales in the first year. As a good businessman, he was concerned about the future of the business, which was
uncertain. He gathered information that the demand for chocolates is increasing day by day. He used this
information as the base for future planning and shared it with his team. On the basis of the gathered
information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives.
Identify one out of the two steps, which have been followed by Saurabh that are related to the process of one
of the functions of management.

(A)
---

Follow up action

(B)

Selecting an alternative CUET 2023
(C)

Developing Premises

(D)

Evaluating alternative courses

Q.No. 7

Soft-core Ltd.is a company which has improved its functioning by proper management. The company has
been successful in deciding and completing targets. In the previous meeting, it was decided that in coming
years, the company could show increase in the number of workers, number of products produced and also the
sales turnover. However, recently it earned a negative reputation 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 cannot be tackled by unity of command. They were egoistic as they were specialists. After the meeting,
things started to change for the organisation as all the departments started to work with one single target of
giving back 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 improved

Identify the feature of management highlighted in the given case.

(A) Management is an intangible force

(B) Management is multidimensional

(C) Management is a goal-oriented process

(D) Management is all pervasive

Q.No. 8

For the following two statement choose the correct option

Statement I: Management is called an Exact Science.

Statement II: Management deals with complex human behaviour, which cannot be determined with accuracy.

(A)

Statement I is correct and II is wrong

(B)

Statement II is correct and I is wrong

(C)

Both the statement are correct.

(D)
---

Both the statement are incorrect.

Q.No. 9

CUET 2023
As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco
products within the area of 200 meters of all educational institutions. Identify the dimension of the business
environment highlighted in this statement

(A)

Economic environment

(B)

Political Environment

(C)

Legal Environment

(D)

Technological Environment

Q.No. 10

Number of levels of management are:

(A) one

(B) two

(C) three

(D) four

Q.No. 11

ASSERTION (A): Decentralization can be defined as even and systematic distribution of authority at every
levels of management. REASON (R): An organisational structure clearly defines the levels of management
and span of control under each level.

(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 and 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

Q.No. 12
---

Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein’
which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters.
Combining ISP with stabiliser technology allows to make ice creams that don’t melt so easily thereby
making it more convenient for small children and consumers in hot countries.
CUET 2023
In the context of above case: I) The component of marketing mix being taken into consideration by the
company

(A)

Product

(B)

price

(C)

place

(D)

promotion.

Q.No. 13

___ is the process of stimulating people to engage in goal-directed behaviour.

(A)

Communication

(B)

Motivation

(C)

Directing

(D)

None of these

Q.No. 14

(1)The Government of India is putting more stringent measures on consumption of tobacco products in
the country. So ITC Ltd. decided to decrease its sale of cigarettes by 5% in the year 2021-22.
(2)In order to get a maximum share in the FMCG sector ITC is exploring various alternatives like entering

into tie-up with existing players in the market, exporting goods to other Asian countries, spending more
money on brand building measures, technical collaboration with foreign companies to launch new products
in the country etc.
(3)After a lot of discussion the company decided to spend more money on brand building activities.
(4)The company started huge advertising campaign by spending Rs.100 crores. Even ITC is seriously
thinking to separate its Hotels business from FMCG because of this corona pandemic.

Listing out various alternative courses of action - identify the correct sentence from the above para.

(A) Sentence 4
---

(B) Sentence 2

(C) Sentence 1

(D) Sentence 3 CUET 2023
Q.No. 15

Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since
then, it enjoys a rich record of industry presence and experience. In 2005, with the aim to accelerate growth
the company had gone through several rounds of meetings and discussions before launching ERP system to
attract large projects. The management had done effective forecast and critical thinking regarding allocation
resources to reduce wastage. For this purpose, the company had laid down multiple courses of action to meet
the challenge of adverse situations. In 2008, the company suffered loss in many projects due to the great
recession despite taking many cost cutting measures. The management had taken utmost care regarding the
possible outcome and timely review of the plans to achieve the set target during that hard time. In 2010 the
system implemented successfully which subsequently helped the company to execute numerous projects
with precision and timeliness.

“In 2008, the company suffered loss in many projects due to the great recession despite taking many cost
cutting measures.” Which limitation of the management process is indicated here?

(A)

It fails to cope with sudden changes

(B)

It involves huge cost

(C)

it requires critical thinking

(D)

Economic Environment

Q.No. 16

ASSERTION (A): Decentralization has narrow scope as it is limited to superior and his immediate
subordinate.

REASON (R): Decentralization is an optional policy decision and is done at the discretion of the
top management.

(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 and 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

Q.No. 17

CUET 2023
The government of India proposed to encourage e-transactions by encouraging the use of plastic
money(through debit, credit and gift cards) or net banking by allowing deductions in usage charges, fees and
income tax exemptions. Which component of business environment does it represent?

(A)

Economic environment

(B)

Political environment

(C)

Legal environment

(D)

Social environment

Q.No. 18

'Mamta Rice Food Ltd‘ is a well know rice producing company. The sales have been falling down from the
beginning of the year. The managing director Mr. Bhuvan is worried about this situation. With a view to find
out the solution of this problem he made a team to find out the reasons for downfall of sales. The team
conducted the survey and found that, due to availability of other eatable substitute the taste of people is
diverted from rice. Identify the dimension of Business Environment discussed in the above case

(A)

Economic environment

(B)

Social Environment

(C)

Political Environment

(D)

Technological Environment

Q.No. 19

Soft-core Ltd.is a company which has improved its functioning by proper management. The company has
been successful in deciding and completing targets. In the previous meeting, it was decided that in coming
years, the company could show increase in the number of workers, number of products produced and also the
sales turnover. However, recently it earned a negative reputation 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 cannot be tackled by unity of command. They were egoistic as they were specialists. After the meeting,
things started to change for the organisation as all the departments started to work with one single target of
giving back 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 improved.

Identify the feature of coordination being discussed from the given line:..................as all the departments
CUET 2023
started to work with one single target of giving back the company its lost fame."

(A)

Unity of action

(B)

Responsibility of all managers

(C)

Pervasive

(D)

Continuous process

Q.No. 20

Assertion (A)Production mix is the combination of all decisions taken by marketers regarding product.

Reasoning (R)Product mix covers only tangible attributes of products.

(A)

Both are correct and (R) is the correct explanation of (A)

(B)

Both are correct but (R) is not the correct explanation of (A)

(C)

Both statements are incorrect

(D)

(A) is correct but (R) is incorrect

Q.No. 21

ABC group of companies decide to donate 3% of its profits to ‗Child Rights and You‘ (CRY) for improving
the condition of children in India. This initiative by the company was highly appreciated by the public and
their sales increased by 10%, Identify the objective in the given lines.

(A)

Social.

(B)

Organisational.

(C)

Personal.
---

(D)

None of These

Q.No. 22 CUET 2023
(1)The Government of India is putting more stringent measures on consumption of tobacco products in
the country. So ITC Ltd. decided to decrease its sale of cigarettes by 5% in the year 2021-22.
(2)In order to get a maximum share in the FMCG sector ITC is exploring various alternatives like entering
into tie-up with existing players in the market, exporting goods to other Asian countries, spending more
money on brand building measures, technical collaboration with foreign companies to launch new products
in the country etc.
(3)After a lot of discussion the company decided to spend more money on brand building activities.
(4)The company started huge advertising campaign by spending Rs.100 crores. Even ITC is seriously
thinking to separate its Hotels business from FMCG because of this corona pandemic.

Implementation of the plan - identify the correct sentence from the above para.

(A) Sentence 4

(B) Sentence 3

(C) Sentence 2

(D) Sentence 1

Q.No. 23

Assertion (A)Brand is used to identify a product in market by customers.

Reasoning (R)Brand provides a specific name to a product.

(A)

Both are correct and (R) is the correct explanation of (A)

(B)

Both are correct but (R) is not the correct explanation of (A)

(C)

Both statements are incorrect

(D)

(A) is correct but (R) is incorrect

Q.No. 24

Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for
cash. In 2015, for the first time company’s number one position in the industry has been threatened because
other companies started selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to
rely on its previously tried and tested successful plans which didn’t work because the environment is not
static. This led to decline in sales of Super Fine Rice Ltd. The above situation is indicating two ‘limitations
of planning’ which led to decline in it sales. Identify one of them.

(A)

Planning creates rigidity
---

(B)

Planning reduces creativity

(C) CUET 2023
Planning involves huge costs

(D)

Planning does not guarantee success

Q.No. 25

MrsMadhviBhire is working as a manager in ‘Taarik and Company’. She is involved in a problem related to
a particular product. She is unable to decide whether she should produce that product in her own company or
she should buy it from the market. She studied both the options deeply with the help of specialists. In order
to maintain the company’s impression on the minds of the customers, she decided to produce the product in
the company itself. She is hopeful of the complete success of this decision. Identify the stage of the ‘planning
process’ on which MrsMadhvi reached the final decision.

(A)

Evaluating alternative courses

(B)

Selecting an alternative

(C)

Implementing the plan

(D)

Follow-up action

Q.No. 26

___ aims at instructing, guiding, motivating people to achieve the desired results.

(A) Communication

(B) Directing

(C) Motivating

(D) Organising

Q.No. 27

After completing a diploma in Bakery and Patisserie, Julie sets up a small outlet at Goa Airport to provide a
healthy food option to the travellers. To begin with, she has decided to sell five types of patties, three types
of pizzas and low sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she
is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes her
planning does not work due to some unavoidable circumstances like cancellation of flights due to bad
weather conditions, government alert etc. which adversely affects her business. In context of the above case:

The limitation of planning which adversely affects Payal’s business is:
---

(A)

Planning may not work in a dynamic environment:

(B) CUET 2023
Planning may not guarantee success

(C)

Planning involves huge costs

(D)

None of these.

Q.No. 28

A recent rate cut in the interest on loans announced by the banks encouraged Amit, to take a loan from State
Bank of India for expansion of his business. Name the dimension of the business environment highlighted by
this statement.

(A) Economic environment

(B) Social Environment

(C) legal Environment

(D) Technological Environment

Q.No. 29

Encoding is related to

(A) converting message into symbols.

(B) converting symbols into machine

(C) transmitting message.

(D) receiving symbols

Q.No. 30

Polythene bags are creating many environmental problems, So Government decided to give subsidy to jute
industry to promote this business. Identify the dimension of the business environment highlighted in this
statement.

(A)

Economic environment

(B)

Political Environment

(C)

Legal Environment

(D)
---

Technological Environment

Q.No. 31

CUET 2023
Identify the correct sequence of steps involved in the communication process.

(A)

Sender, Message, Encoding, Media, Decoding, Receiver

(B)

Sender, Decoding, Receiver, Feedback, Message, Encoding, Media

(C)

Sender, Message, Encoding, Media, Decoding, Receiver, Feedback

(D)

(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback

Q.No. 32

Mayra Ltd. received a new order of 30,000 toys. Mr. Abhilash, the production manager is expected to deliver
goods in fifteen days otherwise the contract will be null and void. To retain the customers, Abhilash
outsourced the production of 15,000 toys and delivered the order on time. The outsourcing of production
resulted in increase in cost by 50%. Mayra Ltd. uses environment friendly methods of production and
disposes off the waste material by either recycling it or using the same for landfill in such a manner that the
aquatic life is not disturbed."

Which objective of management is fulfilled by Mayra Limited?

(A)

Organisational

(B)

Personal

(C)

Social

(D)

None of these

Q.No. 33

Haryaram is a famous chain selling a large variety of products in the Indian market. Their products include
chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells
quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It
has five of its own retail shops. It also sells its products through various grocery stores so that the products
are made available to customers at the right place, in the right quantity and at the right time. It regularly uses
different communication tools to increase its sales.

Which philosophy of marketing management is being used by Haryaram?
---

(A)

Production concept

(B) CUET 2023
Product concept

(C)

Selling concept

(D)

Marketing concept

Q.No. 34

Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture into agriculture, for
this purpose she set out specific goals, objectives.Everything was a challenge because she was not aware
about farming. She learned every activity and, in the process, thought of assisting other farmers as well. She
eventually launched her own company Agro limited.She wanted to be sure that the activities effectively met
the best interest of the company and the farmers.Hence, she prepared an annual plan for production, sales
and marketing, through sales forecasting she’ll I realized that farmers were growing only one or two crops.
On account of this the land remained idle for the rest of the year. she identified and evaluated different
alternatives through which the farms could be utilized throughout the year.She used her foresight and
systematic thinking,based on analysis of all fixed analysis of all the facts and examined and evaluated all the
alternatives. She presented a plan to the Farmers Union, where after harvesting the primary crops, seasonal
vegetables and foods could be grown.

She used her foresight and logical and systematic thinking based on analysis of all facts and examined and
evaluated all the alternatives. which feature of planning is depicted here?

(A)

Planning focuses on achieving objectives

(B)

planning is a primary function of management

(C)

planning is mental exercise

(D)

planning involves decision-making

Q.No. 35

By comparing with standards manager can know whether the goals are achieved or not:-

(A)

Risk

(B)

Ideas
---

(C)

Actual performance

(D) CUET 2023
Costs

Q.No. 36

‖In an organisation, the objective of marketing department is to increase sales by 10% by offering discounts.
However the finance department is reluctant to offer discounts as it means loss of revenue‖. One of the
benefits of coordination helped to resolve the conflict Identify it.

(A)

Growth in Size

(B)

Specialisation

(C)

Functional differentiation

(D)

Both a and c

Q.No. 37

Mr. Y is a middle level manager. He keeps all his subordinates under a lot of discipline. His employees
however complain of wastage of time and efforts as they are spending a lot of time in search of
various items. Which principle of management is violated here?

(A) Principle of Order

(B) Principle of initiative

(C) Discipline

(D) None of these

Q.No. 38

Rahul, Vinay, and Tarun have decided to start a toy manufacturing company. They identified the following
major activities that they must complete:
(i) Purchasing raw materials

(ii) Purchasing machinery
(iii) Toy production
(iv) Arrangement of finance
(v) Toy sales
(vi) Identifying areas where they can sell their toys
(vii) Recruitment of employees

They believed that four managers should be appointed to oversee the work in order to make it more efficient.
A) Production B) Finance C) Marketing D) Marketing

By grouping the activities in four departments, the manager is performing which step of process?
---

(A) Assignment of Duty

(B) Reporting Relationship

(C) Departmentalization CUET 2023
(D) None of the above

Q.No. 39

The labelling of a pack of oats cookies explains how the product is beneficial in adding fibre to the diet and
the other related health benefits. Identify the related function of labelling being described in the given case.

(A)

Describes the product and specifies its content

(B)

Identification of the product or brand

(C)

Grading of products

(D)

Helps in promotion of the products

Q.No. 40

Assertion (A)Industrial products are easily sold through personal selling.

Reasoning (R) Queries of customers can be easily solved in personal selling.

(A)

Both are correct and (R) is the correct explanation of (A)

(B)

Both are correct but (R) is not the correct explanation of (A)

(C)

Both statements are incorrect

(D)

(A) is correct but (R) is incorrect

Answer Sheet
Q.No Answer
Q.No. 1 (C)
Q.No. 2 (D)
Q.No. 3 (D)
---

Q.No. 4 (A)
Q.No. 5 (A)
Q.No. 6 (C)
CUET 2023
Q.No. 7 (A)
Q.No. 8 (B)
Q.No. 9 (C)
Q.No. 10 (C)
Q.No. 11 (B)
Q.No. 12 (A)
Q.No. 13 (B)
Q.No. 14 (B)
Q.No. 15 (A)
Q.No. 16 (D)
Q.No. 17 (A)
Q.No. 18 (B)
Q.No. 19 (A)
Q.No. 20 (D)
Q.No. 21 (A)
Q.No. 22 (A)
Q.No. 23 (A)
Q.No. 24 (D)
Q.No. 25 (B)
Q.No. 26 (B)
Q.No. 27 (A)
Q.No. 28 (A)
Q.No. 29 (A)
Q.No. 30 (B)
Q.No. 31 (C)
Q.No. 32 (C)
Q.No. 33 (B)
Q.No. 34 (C)

Q.No. 35 (C)
Q.No. 36 (C)
Q.No. 37 (A)
Q.No. 38 (C)
Q.No. 39 (D)
Q.No. 40 (A)
---