CUET (UG) 2027 Sample Paper (Business Studies)

SAMPLE PAPER

S A M P L E Q U E S T I O N P A P E R

CUET (UG) 2027 (Business Studies)
Modelled on the actual exam pattern
.

QUESTIONS MAX MARKS TIME MARKING

50 250 60 Min +5 / −1

GENERAL INSTRUCTIONS

1. This paper contains 50 multiple-choice questions. All questions are compulsory.

2. Each question has four options — (A), (B), (C) and (D) — of which only one is correct.

3. Each correct answer carries 5 marks; 1 mark is deducted for each wrong answer.

4. Total time allowed is 60 minutes. Manage your time across all sections.

5. Use of calculators, mobile phones or any electronic device is not permitted.

6. Attempt the paper first, then check your answers against the Answer Key at the end.

Candidate Name: Roll No.: Date:

SAMPLE PAPER

CUET (UG) 2027 (Business Studies)
SAMPLE QUESTION PAPER

Questions 50 Max Marks 250 Time 60 Min Marking +5 / −1

Attempt all questions. Choose the one correct option for each.

BUSINESS STUDIES

1.

Assertion (A): Coordination acts as a binding force between departments and ensures that all efforts are focused
towards achieving organisational goals.

Reason (R): Specialists in an organisation usually think that they only are qualified to evaluate, judge and decide
according to their professional criteria.

(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

2. 3.

All other managerial functions are performed within the Pragati Limited has chalked out an action plan in order to
framework of the plans drawn. Identify the related increase its market share in the international market by
feature of planning. 20% in the next one year. The action plan contains the
details about how the production levels will be increased,
(A) promotional activities will be carried out and so on.
Identify the type of marketing function being described
Planning focuses on achieving objectives
in the given lines.

(B)
(A)
Planning is pervasive.
Gathering and analysing market information

(C)
(B)
Planning is futuristic.
Marketing planning

(D)
(C)
Planning is primary function of management.
Product designing and development

(D)

Packaging and labeling

4. 5.

Which of the following is not a characteristic of directing? The labelling of a pack of oats cookies explains how the
product is beneficial in adding fibre to the diet and the
(A) Directing initiate action other related health benefits. Identify the related

(B) It is a continuous process function of labelling being described in the given case.

(C) Flows from top to bottom
(A)
(D) Ensuring order & discipline
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

6.

(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

7. 8.

Harshit is planning a start up a venture for offering At what level of management does the Chief Executive
mobile pet care services at door step. He has decided to Officer operate?
charge Rs. 1000 for heated hydrobath & blow dry of a pet
and Rs. 500 for shampoo and conditioning. Identify the (A) Top-level

element of marketing mix which is not being described in (B) Middle-level
the above case.
(C) Lower-level

(D) None of these
(A) Product

(B) Place

(C) Price

(D) None of the above

9.

.Assertion (A)Personal selling is called a dialogue.

Reasoning (R)Personal selling is possible through face to
face contact and communication with customers.

(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

10.

As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh thought of
preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They
approached the Principal who not only appreciated the students but also gave her consent for the same. The school
decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the
school also decided to extend this project by providing employment to visually challenged and disadvantaged sections
of society on regular basis

Product-related decisions which the students had to take to identify product in the market:

(A)

Branding

(B)

labelling

(C)

packaging

(D)

None of these

11.

(A) Technological environment includes forces relating to scientific improvements and innovations which provide new
ways of producing goods and services and new methods and techniques of operating a business

(R) An adequate knowledge of rules and regulations framed by the Government is a pre-requisite for better business
performance

(A)

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

(B)

Both Assertion(A) and Reason(R) are True and Reason(R)is not the correct explanation of(A)

(C)

Assertion(A) is True but Reason(R) is False

(D)

Assertion(A) is False but Reason(R) is True

12.

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)

Planning involves huge costs

(D)

Planning does not guarantee success

13.

Assertion: Not only employee- turnover but frequent
termination or rotation must be avoided.

Reason: Employee must be provided the feeling of job
security. With feeling of insecurity of job, the employees
cannot contribute maximum.

(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.

14.

ASSERTION (A): Divisional Structure is suitable for those business enterprises where a large variety of products are
manufactured using different productive resources.

REASON (R) : It leads to minimal duplication of efforts which results in economies of scale and the lower cost

(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.

15.

ASSERTION (A): Decentralization develops managerial
talents for future.

REASON (R): In a decentralized organisation decision-
making authority is given to middle and lower level
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.

16.

ZETA Ltd. is a world-renowned retail chain store. The customers here are very much pleased with the products and
services provided in the stores. The customer satisfaction and internal efficiency indicator of the organization is rated
best in the industry. However there have been a few steps taken by the organization which provide the organization
this edge. The organization has used a special type of software which integrates all the stores and brings uniformity in
its billing and working pattern.

Which principle of scientific management is mentioned here?

(A) Harmony not discord

(B) Science not rule of thumb

(C) Cooperation not individualism

(D) None of these

17.

Assertion (A): Satisfaction of personnel objectives is very
important in an organisation.

Reason (R): Employees are one of the most valuable
resources for an organisation.

(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.

18.

Mr. X works on the floor of a mall as a manager. He is very hard working but is unable to produce results for his
organization. His target for last month was a sale of 10 lakh rupees from his floor. However, by the end of the month
the sale was only 8 lakh rupees. He is very regular and takes all the necessary steps to complete the target. However,
his staff is not as competent as he himself is. When he tries to take action against disobedient employees the top
management doesn‘t allow him to do so. They haven‘t given him the power to fire employees or take any strict action
against them.

Which principle of Fayol is violated here by the Organization?

(A)

Discipline

(B)

Authority and responsibility

(C)

Division of work

(D)

Principle of order

19.

Mehak Limited has hired 300 salesmen who will be
assigned the task of contacting prospective buyers and
creating awareness about the new range of organic
incenses introduced by the company. Identify the
element of promotion been described in the given lines

(A)

Advertising

(B)

Sales promotion

(C)

Personal selling

(D)

Public relation

20.

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

(D) None of the above

21. 22.

Marketing is called a _______ process because it involves Assertion (A): Coordination is needed in all departments
interaction of buyers and sellers and at all levels.

Reason (R): Activities are independent in all departments
(A) Economic
and levels.
(B) Social

(C) Legal (A)

(D) Political
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 Assertion (A)

(C)

Assertion (A) is True but Reason (R) is False.

(D)

Assertion (A) is False but Reason (R) is True.

23. 24.

Assertion (A)There should be a balance in level of Which of the following is not a component of specific
inventory maintained in warehouse. forces of the business environment?

Reasoning (R)Higher level will increase the cost of
(A)
carrying inventory and lower level will make difficult to
fulfill demand. Customers

(A) (B)

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

(B) (C)

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

(C) (D)

Both statements are incorrect None of the above

(D)

(A) is correct but (R) is incorrect

25.

The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the
world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in
each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name.
The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free,
Coca-Cola Zero Sugar, CocaCola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every

opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an
outstanding placement of product goes to the way they have established the connection between every occasion and
the need for Coke to be present there, product design and creative advertising.

Identify the feature of Business Environment which The Coca-Cola Company managed to get in
their favour.

(A)

Complex

(B)

Specific and general forces

(C)

Futuristic

(D)

Mental Exercise

26. 27.

Assertion: Principle of order is to get order from one
superior at one time
A B

a) Functional structure I Tall or Wide structure Reason: Fayol favored this principle as men and material
at fixed place saves time and energy.
b) Divisional structure II Creation of organising
structure
(A)
c) Organising process III Producing diversified
products Both Assertion (A) and Reason (R) are True and Reason (R)

d) Span of management IV Producing single line is the correct explanation of Assertion (A)

products
(B)

Both Assertion (A) and Reason (R) are True and Reason (R) is
not the correct explanation of Assertion (A)
(A)

II III IV I (C)

Assertion (A) is True but Reason (R) is False.
(B)

IV II III 1 (D)

Assertion (A) is False but Reason (R) is True.
(C)

III II 1 IV

(D)

IV III II I

28.

"In every organisation, managers are assigned a great deal of work, and no manager can do it all alone. He divides the
work among various individuals working under him based on their qualifications and divides the tasks among them.
The manager starts by delegating his responsibilities to his subordinates. He purposefully delegated some of his
responsibilities to his subordinates. Following the delegation of responsibilities, the manager delegated some of his
authority, i.e., the power to make decisions, to his subordinates so that the responsibilities could be carried out
properly. The manager establishes accountability to ensure that his subordinates perform all work effectively and
efficiently in the expected manner. "

Name the concept discussed in the above para.

(A) Delegation

(B) Decentralization

(C) Organising

(D) Planning

29. 30.

ASSERTION (A): Responsibility always flows downwards Guneet went to a shop and expressed her desire to buy a
from superior to subordinate. copper water bottle only of Prestige company. Identify
the component related to branding being described in the
REASON (R) : Responsibility is the obligation of a
above case.
subordinate to properly perform the assigned duty.

(A) Trademark
(A)
(B) Generic name
Both Assertion (A) and Reason (R) are True and Reason (R)
(C) Brand name
is the correct explanation of Assertion (A)
(D) Brand mark

(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.

31. 32.

For Covid-19 different vaccines are developed by the Janta Foods Ltd. is a company that sells 'Noodles.' Its
Indian and foreign companies such as covishield, covaxin, registered office is in Kolkata, its manufacturing unit is
moderna, pfizer etc. Identify the dimension of the at Solan, and its marketing department is in Delhi. Which
business environment highlighted in this statement type of organisational structure should the company
adopt to achieve its target?
(A)
(A) Non-Functional Organisation Structure
Economic environment
(B) Functional Organisation Structure.

(B) (C) Planning Organisational Structure

Political Environment (D) None of the Above

(C)

Legal Environment

(D)

Technological Environment

33.

Mr. A works in a bulb manufacturing company. Each bulb which is manufactured is of standard size and quality.
Further if there is any unrequired type of bulb manufactured then its production is stopped. Last month when the
company came to know that 10 watt bulbs were no more liked by customers, their production was stopped. He works
in the purchase department. His job is to purchase the filaments required to make bulbs. This time when he purchases
the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing
the filaments inside the bulb. Mr. A knows this information should be given immediately to the production department
before the assembling process starts. However he finds that his company‘s policies only allow him to give the
message to his immediate boss who will further pass this message to his boss. The passing of this message will
continue till it reaches the desired person in the production department.

Which technique of management is followed here?

(A) Method study

(B) Fatigue study

(C) Standardisation and simplification

(D) Functional foremanship

34. 35.

The channel of communication which is transmitted For the following two statement choose the correct
through informal channels is called ___ option:

Statement I: Coordination is needed in all departments
(A)
and at all levels.
Horizontal communication
Statement II: Activities are independent in all

(B) departments and levels.

Formal communication (A)

(C) Statement I is correct and II is wrong

Grapevine (B)

(D) Statement II is correct and I is wrong

Gang plank (C)

Both the statement are correct.

(D)

Both the statement are incorrect

36.

It is common now to see Internet / Word Wide Web
multimedia pages highlighting the virtues of various
products.‘ Name the dimension of the business
environment highlighted by this statement.

(A) Economic environment

(B) Social Environment

(C) Legal Environment

(D) Technological Environment

37.

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 promotional tool is being used by offering discounts to customers ?

(A)

Advertising

(B)

Personal selling

(C)

Sales promotion

(D)

Public relations

38.

Setting Objective is a function of

(A) Middle level management

(B) Operational level management

(C) Top level Management

(D) None of the above

39.

It is interesting to know that the menu items of the multinational food chains are customized to suit the general
palates of the local people in the region. When McDonald‘s started its business in India in the year 1996, the company
went through a complete Localisation strategy. McDonald‘s changed its product menu to accommodate the vegetable
burger given the large vegetarian population. It also altered its store design and even reduced the product price by
close to fifteen per cent. Also, the ―McAloo Tikki burger‖ is not available anywhere but in the Indian outlets of
McDonalds. Identify the relevant feature of business environment being discussed above.

(A) Dynamic

(B) Complex

(C) Relativity

(D) Uncertainty

40.

Mr. A works in a bulb manufacturing company. Each bulb which is manufactured is of standard size and quality.
Further if there is any unrequired type of bulb manufactured then its production is stopped. Last month when the
company came to know that 10 watt bulbs were no more liked by customers, their production was stopped. He works
in the purchase department. His job is to purchase the filaments required to make bulbs. This time when he purchases
the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing
the filaments inside the bulb. Mr. A knows this information should be given immediately to the production department
before the assembling process starts. However he finds that his company‘s policies only allow him to give the
message to his immediate boss who will further pass this message to his boss. The passing of this message will
continue till it reaches the desired person in the production department.

Which way is to be chosen now by Mr. A to speed up the work.

(A)

Gang Plank

(B)

Scalar Chain

(C)

Direct communication

(D)

Informal communication

41.

Mona is the branch manager of Mitushi Handicrafts Pvt Ltd. The company's objective is to promote the 5 sales of
Indian Handlooms .It sales fabrics, furnishing readymade and household items are made out of traditional Indian
fabrics. Mona decides quantities, variety, colour and texture of all the above items and and then allocates resources
for their purchase from different suppliers .She appoints the team of designers and crafts people in the company who
developed some prints for bed cover in bright colour on silk. Although the product look very attractive and impressive,
they were relatively expensive and on the front of affordability of an average customer. Mona suggest that they
should keep the silk bed cover for special festive occasions and offer the cotton bed cover on a regular basis to keep
cost under control.

"She appoints a team of designers and craft people in the company, who developed some prints for bed cover in bright
colour on silk" which function of management is highlighted in the statement?

(A)

controlling

(B)

staffing

(C)

planning

(D)

directing

42.

(A)

1-a, 2-b, 3-d, 4-c

(B)

1-a, 2-c, 3-d, 4-b

(C)

1-c, 2-a, 3-b, 4-d

(D)

1-c, 2-a, 3-d, 4-b

43.

Leo Cloth Ltd. produces only fabrics. After experiencing great success in the fabric industry, the directors of Leo Cloth
Ltd. acquired three new manufacturing (Electronics, Mobile Phones, Cement) units and began selling a variety of
products in the market. They decided that each unit would be led by an individual with the ability and competence to
handle responsibility. Only female candidates will be considered for the vacant position.

State the organisational structure suitable to Leo Cloth Ltd. after they plan to add more line of products.

(A) Functional

(B) Divisional

(C) Both (a) and (b)

(D) None of the above

44.

ASSERTION (A): The first step in the process of organizing involves identifying dividing the work.

REASON (R): Once work has been divided in to small and manageable activities then those activities which are similar
in nature are grouped together called departments.

(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

45.

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 type of products are sold by Haryaram?

(A)

Consumer goods

(B)

Producer goods

(C)

Services

(D)

None of the above.

46.

Assertion (A): Management is considered as a tangible
force.

Reason (R): Management cannot be seen, felt and
touched.

(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.

47.

Every year a meeting is organized in the lawns of the Promoter of a company. In this meeting the owner of the
company grants some funds for the benefit of the families of the employees. The employees on the other hand never
resist any change or put excessive demands. But Management is not in the favour of it as they think to utilise these

funds somewhere else instead of spending on employees. The employee turnover is very high. The employees do not
come forward with their ideas after seeing the dull response from the management side.
The employees do not come forward with their ideas after seeing the dull response from the management side. What
principle of management is lacking in these lines?

(A) Esprit de corps

(B) Initiative

(C) Discipline

(D) Authority and Responsibility

48.

Every year a meeting is organized in the lawns of the Promoter of a company. In this meeting the owner of the
company grants some funds for the benefit of the families of the employees. The employees on the other hand never
resist any change or put excessive demands. But Management is not in the favor of it as they think to utilize these
funds somewhere else instead of spending on employees. The employee turnover is very high. The employees do not
come forward with their ideas after seeing the dull response from the management side.

Which principle you would suggest to management to follow?

(A) Discipline

(B) Team spirit

(C) Stability of personnel

(D) Initiative

49.

Mona is the branch manager of Mitushi Handicrafts Pvt Ltd. The company's objective is to promote the sales of Indian
Handlooms .It sales fabrics, furnishing readymade and household items are made out of traditional Indian fabrics.
Mona decides quantities, variety, colour and texture of all the above items and and then allocates resources for their
purchase from different suppliers .She appoints the team of designers and crafts people in the company who
developed some prints for bed cover in bright colour on silk. Although the product look very attractive and impressive,
they were relatively expensive and on the front of affordability of an average customer. Mona suggest that they
should keep the silk bed cover for special festive occasions and offer the cotton bed cover on a regular basis to keep
cost under control.
"She appoints a team of designers and craft people in the company, who developed some prints for bed cover in bright
colour on silk" which function of management is highlighted in the statement?

(A) controlling

(B) staffing

(C) planning

(D) directing

50.

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 20 items.
Which principle of management is violated here?

(A)

Principle of Order

(B)

Principle of initiative

(C)

Discipline

(D)

None of these

ANSWER KEY

1. (B) 2. (D) 3. (B) 4. (D) 5. (D) 6. (A) 7. (D)

8. (A) 9. (A) 10. (A) 11. (B) 12. (D) 13. (A) 14. (C)

15. (A) 16. (B) 17. (A) 18. (B) 19. (C) 20. (C) 21. (B)

22. (C) 23. (A) 24. (D) 25. (B) 26. (D) 27. (D) 28. (A)

29. (D) 30. (C) 31. (D) 32. (B) 33. (C) 34. (C) 35. (B)

36. (D) 37. (C) 38. (C) 39. (C) 40. (A) 41. (B) 42. (C)

43. (B) 44. (A) 45. (A) 46. (D) 47. (B) 48. (C) 49. (B)

50. (A)