CBSE Class 10 Sample Paper 2026 Solution for Elements Business

CBSE BOARD

SAMPLE
PAPER
2026
SOLUTIONS

DOWNLOAD

ELEMENTS OF BUSINESS (Subject Code 154)
MARKING SCHEME
CLASS – X (2025-26)

Q.No. Question Marks
1. A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct 1
explanation of Assertion (A).
2. A) Equity Shares 1
3. B) Hire Purchase 1
4. B) Direct Selling 1
5. A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct 1
explanation of Assertion (A).
6. A) Both the statements are true. 1
7. A) Sender 1
OR
C) Using hand gestures to express feelings
8. B) Automated Vending Machines 1
9. B) A McDonald’s outlet 1
10. C) They operate by sending catalogs or advertisements to customers, who order goods 1
by mail or online.
11. A) Both the statements are true. 1
12. C) Sole Proprietorship 1
13. B) Trade Credit 1
14. C) Specialty Store 1
15. D) Both A and C 1
16. A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct 1
explanation of Assertion (A).
17. B) The auction sale is a contract of sale between the auctioneer and the highest bidder. 1
18. B) To request a reduction in the amount due to overcharging or returns. 1
19. Advantages:
• Email is fast, convenient, and allows for easy documentation and reference.
• It enables communication with remote teams and is less expensive than physical
meetings or postal mail.
Disadvantages:
• Emails may lead to miscommunications if not structured clearly.
• Important information can be missed if attachments are not noticed or if the 3
subject line is unclear.
20. Anuj proposed registering the business as a private company to safeguard their personal 3
assets through the benefit of limited liability. This means that personal assets of
members are protected and cannot be used to repay business debts, thus reducing financial
risk in case of business losses.
21. (A) Sonia is focusing on verbal communication. She is ensuring clarity in spoken 3
instructions to avoid errors.

(B) To improve verbal communication, Sonia can:
• Use clear, concise language.
• Ask team members to repeat key points to ensure understanding.
• Encourage questions to clarify any uncertainties.
• Encourage feedback to confirm that the message was understood correctly.
22. The main advantage of issuing debentures is: 3
(1) It does not dilute the ownership of the company. Debenture holders are creditors, not
shareholders, meaning the existing ownership structure remains intact.
(2) Interest payments on debentures are tax-deductible, potentially reducing the company's tax
burden, and the company retains full control over its operations without giving up any equity.
23. XYZ Retail is a chain store because: 4
1. It operates multiple outlets under the same brand across different locations.
2. The stores have uniform product offerings, consistent pricing, and centralized
management.
3. The company focuses on economies of scale by purchasing products in bulk
and promoting them through centralized marketing efforts.
4. The centralized structure helps maintain control over the brand and customer
experience, ensuring consistency across all locations.
24. Raj is an effective salesman because he possesses the following qualities: 4
1. Punctuality: He respects the customer's time, ensuring that appointments and
meetings run on schedule.
2. Product Knowledge: He is well-informed about the products and can explain
their features and benefits effectively.
3. Listening Skills: He listens carefully to customers’ needs and tailors his
approach to meet those needs.
4. Customer-focused approach: He provides personalized recommendations and
ensures customers feel valued.
5. Professionalism: Raj handles objections and challenges professionally,
maintaining a positive relationship with customers.
Follow-up: He ensures customer satisfaction by following up after the sale, which builds
loyalty and trust.
25. Cash Transaction: 4
• Completed immediately at the time of purchase.
• The buyer makes full payment in cash or through direct electronic transfer.
• Ownership of the goods or services is transferred immediately.
Credit Transaction:
• The buyer does not pay immediately but agrees to pay in installments or within
a set period after the purchase.
• The ownership of goods is transferred, but the seller waits for payment.

26. . (a) Written Communication: Written communication involves the exchange of 4
information through written symbols, such as letters, emails, reports, or notices. It is
formal, offers a record of the communication, and is useful for conveying complex or
detailed information. However, it may lack immediate feedback.
(b) Oral Communication: Oral communication involves the spoken exchange of
information through face-to-face conversations, phone calls, or video conferences. It
allows for immediate feedback and fosters better personal connections, but it may lack a
permanent record.

27. (a) Hire Purchase System: In this system, Ravi will get the product immediately and 6
pay in installments over a period. Ownership is transferred only after the final payment
is made.
Installment System: Priya will have to pay in equal installments, but the product
remains the property of the seller until full payment is made. Ownership is transferred
after the last installment.
(b) Difference between Hire Purchase and Installment System:
1. Ownership Transfer: In hire purchase, ownership is transferred after the final
installment; in installment, ownership is transferred after the first payment.
2. Down Payment: In hire purchase, a higher down payment is usually required
compared to installment systems.
3. Interest Rate: Hire purchase typically has a higher interest rate than the
installment system.
4. Legal Ownership: In hire purchase, the seller retains ownership until full
payment; in installment, the buyer gets ownership after the first installment.
28. Process of communication: 6
The communication process consists of several steps:
1. Sender: The person who initiates the message.
2. Encoding: The process of converting the message into a suitable format.
3. Medium: The channel through which the message is communicated (e.g., email,
face-to-face, phone).
4. Receiver: The person who receives the message.
5. Decoding: The process of interpreting the message.
6. Feedback: The response given by the receiver, confirming or clarifying the
message.
OR
• External Communication: Refers to communication between the business and
external entities such as customers, suppliers, investors, or the public. It includes
marketing messages, press releases, and customer service interactions.
• Vertical Communication: Occurs within the organizational hierarchy, either upward
(from subordinates to superiors) or downward (from superiors to subordinates). It helps
in ensuring that instructions, feedback, and organizational goals are effectively
communicated.
29. 1. A public company requires a minimum of seven members to be formed, whereas a 6
private company can be formed with just two members.

2. A public company can invite the public to subscribe to its shares or debentures, which
helps in raising capital from a wider base. In contrast, a private company is prohibited
from inviting the public to invest in its securities.

3. In a public company, shares are freely transferable, allowing shareholders to sell their
shares easily, while in a private company, the transfer of shares is restricted as per its
Articles of Association to maintain control within a close group.
30. Any six points : 6
S. No Advertising Personal Selling
1. Non-personal communication method. Personal communication method.
2. Mass communication to reach a wide Direct communication with individual
audience. customers.

3. Uses media channels such as TV, radio, Involves face-to-face interactions, phone
print, and online platforms. calls, or video conferences.
4. The message is typically standardized Messages can be customized based on
and consistent. individual customer needs.
5. Requires less time and effort to reach a Requires more time and effort to establish
large audience. one-on-one relationships.
6. Provides a limited opportunity for Provides immediate feedback and
immediate feedback. interaction with customers.
7. The cost of reaching each individual Cost per customer is higher due to
customer is lower. personalized attention.
8. Less persuasive as it relies on creative More persuasive as it allows for personal
messaging. persuasion and demonstration.
9. Targets a broader audience and aims Targets specific individuals or customer
for brand awareness. segments.
10. Can generate brand recognition and Can build trust and establish strong
create long-term awareness. relationships with customers. (3)
OR
(a) Sales promotion refers to short-term marketing activities designed to stimulate
immediate purchase or sales of a product or service. It is used as a tool to attract
customers, enhance demand, or improve product visibility.
Features of Sales Promotion:
1. Short-term focus: Provides temporary incentives to boost sales.
2. Customer attraction: Engages customers through offers like discounts,
coupons, or free samples.
3. Various techniques: Includes contests, buy-one-get-one offers, and point-of-
purchase displays. (3)
4. Enhances brand visibility: Attracts attention to products in competitive
markets.
(b) Television advertising is a form of marketing communication that uses television
broadcasts to promote products or services to a large audience.
Features of Television Advertising:
1. Wide reach: Targets large and diverse audiences.
2. Audio-visual appeal: Combines visuals, sound, and motion to create impactful
messages.
3. Expensive: Requires significant investment for airtime and production costs.
4. Emotional connection: Effective in building emotional resonance with the
audience.

Study Materials
Notes

Model Papers Class 6 Notes

Sample Papers Class 7 Notes
Half Yearly Sample Papers Class 8 Notes

Class 9 Notes
Important Resources
Class 10 Notes
Periodic Table
Class 11 Notes
Writing Skills / Formats

Maps of India / World Class 12 Notes

Books and Solutions

NCERT Books
NCERT Book Solutions
HC Verma Chapter Wise Solutions
RD Sharma Solutions
CGBSE Solutions