Business StudiesCBSE Class 12 · Board exam 2026 (session 2025-26)

CBSE Class 12 Business Studies: 2026 board paper, set 66/1/1

The question paper set in the CBSE Class 12 board exam of 2026, as printed: 34 questions for 80 marks, in sections, with each OR choice shown as an alternative. Try each question first, then open our solution.

Every question here has our step-by-step solution, split into the steps that earn marks. Each one was checked by an independent re-solve from the question paper.

Source: official question paper from cbse.gov.in: https://www.cbse.gov.in/cbsenew/question-paper/2026/XII/Business_Studies.zip (a zip; this paper is the file 2416-1_66-1-1_Business Studies.pdf). Questions are transcribed from that PDF; figures are described in words, so check the official paper for them. Questions printed only for visually impaired candidates are left out (1).

Practise a paper like this, timedMy board paper sets a full paper in this exact format from real board questions, with a timer.Get your written answers markedThe Answer Coach marks a photo of your handwritten answer step by step, like the examiner.

How the paper is set

Section	Questions	What it has
A	1-20	MCQ, assertion-reason, case-based and matching items
B	21-24	short answer
C	25-30	long answer
D	31-34	long answer

Instructions in brief: All 34 questions compulsory; 3-mark answers 50-75 words, 4-mark about 150 words, 6-mark about 200 words; internal choices given in some questions; attempt all parts of a question together.

Section A

MCQ, assertion-reason, case-based and matching items

Q1 · 1 mark · MCQCompetency-basedConsumer Protection
Ritika wanted to buy a new washing machine. She visited 'Elec Duniya', a large electronics store. She saw there many different brands and models on display like KM, Neo, Unipool, INH etc.
The salesperson at the store explained the differences in quality, brand reputation and prices of different washing machines. Ritika could now compare fully automatic, semi-automatic, top load and front load washing machines. The salesperson encouraged her to take her time, check different brands and resolve her queries. Ritika also went to another shop nearby to compare prices and features of different washing machines.
After comparing all the available options, Ritika chose a 'Neo' front load washing machine because it offered the best features within her budget.
The consumer right exercised by Ritika in the above case is :
1. (A)Right to be heard
2. (B)Right to be assured
3. (C)Right to consumer education
4. (D)Right to seek redressal
Try it first, then show our solutionSolution
1. Ritika had access to many brands and models at competitive prices, compared them in two shops and then chose the one that suited her budget.
2. Under the Consumer Protection Act, 2019, the right to be assured, wherever possible, of access to a variety of goods at competitive prices is the right she exercised (traditionally called the right to choose). Option (B).
  1 mark
Answer: (B) Right to be assured
Where the marks are
- Access to a variety of goods at competitive prices (1 mark)
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Q2 · 1 mark · MCQCompetency-basedPrinciples of Management
The workers in Alpha manufacturing company were using traditional methods for production of metal parts. Since no standard procedure existed, workers relied on personal experience and guess work. As a result, productivity in the assembly line began to decline.
To improve productivity, the company hired a consultant specializing in scientific management. The consultant explained that there was only one best method to maximize efficiency and this method could be developed through proper study and analysis. He emphasized that the scientific method should replace the old method, that the workers were using.
So, to develop the scientific method, the consultant carefully investigated the traditional methods through work-study and by unifying the best practices, he developed a standard method that would be followed by everyone in the organization.
After applying scientific method, there was a three fold increase in productivity within six months.
The principle of scientific management which helped the company in increasing the productivity was :
1. (A)Science, not Rule of Thumb
2. (B)Harmony, Not Discord
3. (C)Cooperation, Not Individualism
4. (D)Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity
Try it first, then show our solutionSolution
1. Guesswork was replaced by one best method developed through work-study and standardised for everyone.
2. Replacing guesswork with a scientifically developed method is Science, not Rule of Thumb. Option (A).
  1 mark
Answer: (A) Science, not Rule of Thumb
Where the marks are
- One best method replaces guesswork (1 mark)
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Q3 · 1 mark · MCQConsumer Protection
Read the following statements carefully :
Statement – I : Consumers should get together and form themselves into consumer associations for protection and promotion of their interests.
Statement – II : The Consumer Protection Act provides for setting up a two-tier enforcement machinery for the redressal of consumer grievances.
With reference to given statements, choose the correct alternative from the following :
1. (A)Both the statements are true.
2. (B)Both the statements are false.
3. (C)Statement I is true, Statement II is false.
4. (D)Statement I is false, Statement II is true.
Try it first, then show our solutionSolution
1. Statement I is true: consumers should form consumer associations to protect and promote their interests.
2. Statement II is false: the Act provides a three-tier machinery (District, State and National Commissions), not two-tier. Option (C).
  1 mark
Answer: (C) Statement I is true, Statement II is false.
Where the marks are
- Three-tier machinery, not two-tier (1 mark)
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Q4(a) · 1 mark · MCQCompetency-basedDirecting
Identify the element of communication process from the above picture :
1. (A)Feedback
2. (B)Media
3. (C)Noise
4. (D)Decoding
Figure in the paper: Picture of a man in a suit shouting through a megaphone at another man who covers his ears with his hands and looks distressed; jagged zigzag lines and a speech bubble with symbols (!, *, %, +, x) indicate harsh noise. See it in the official paper.
Try it first, then show our solutionSolution
1. The picture shows a man shouting through a megaphone while the listener covers his ears; the harsh sound distorts the message.
2. Any obstruction or hindrance to communication between sender and receiver is noise. Option (C).
  1 mark
Answer: (C) Noise
Where the marks are
- Disturbance in communication = noise (1 mark)
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Q5 · 1 mark · Assertion-reasonCompetency-basedConsumer Protection
Read the following statements – Assertion (A) and Reason (R) :
Assertion (A) : Many enlightened business firms have set up their own consumer service and grievance cells.
Reason (R) : The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or service.
Choose the correct alternative from the alternatives given below :
1. (A)Both Assertion (A) and Reason (R) are false.
2. (B)Assertion (A) is false and Reason (R) is true.
3. (C)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
4. (D)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Try it first, then show our solutionSolution
1. Assertion: True. Many responsible firms have their own consumer service and grievance cells.
  Reason: True. Consumers have the right to be heard, i.e. to file a complaint and be heard when dissatisfied.
2. Firms set up grievance cells precisely so that consumers can be heard, so R explains A. Option (D).
  1 mark
Answer: (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Where the marks are
- Truth of A and R and the link between them (1 mark)
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Q6 · 1 mark · MCQCompetency-basedMarketing
Sudha is a corporate executive and has to attend a felicitation function to be held in her office tomorrow. So she decides to colour her hair. On recommendation of her friend, she purchased 'NATURO' hair colour. After reading essential details such as shade, its ingredients, usage instructions and expiry date mentioned on the box, Sudha opened the box. She took out the colour tube and developer bottle from the box and threw away the box.
The level of packaging of box thrown away by Sudha was :
1. (A)Primary packaging
2. (B)Transportation packaging
3. (C)Secondary packaging
4. (D)General packaging
Try it first, then show our solutionSolution
1. The tube and the developer bottle that hold the hair colour are the primary packages.
2. The box holding them, which protects them and is thrown away once the product is used, is the secondary packaging. Option (C).
  1 mark
Answer: (C) Secondary packaging
Where the marks are
- Additional layer of protection discarded before use (1 mark)
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Q7 · 1 mark · Assertion-reasonCompetency-basedFinancial Markets
Read the following statements – Assertion (A) and Reason (R) :
Assertion (A) : Money market instruments have a higher degree of liquidity as compared to capital market securities.
Reason (R) : Money market instruments are traded on the stock exchanges.
Choose the correct alternative from the alternatives given below :
1. (A)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2. (B)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. (C)Assertion (A) is true and Reason (R) is false.
4. (D)Assertion (A) is false and Reason (R) is true.
Try it first, then show our solutionSolution
1. Assertion: True. Money market instruments are short-term and can be converted into cash quickly, so they are more liquid than capital market securities.
  Reason: False. Money market instruments are not traded on stock exchanges; they are dealt over the telephone or electronically through banks and financial institutions.
2. A is true and R is false. Option (C).
  1 mark
Answer: (C) Assertion (A) is true and Reason (R) is false.
Where the marks are
- Truth of A and R and the link between them (1 mark)
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Q8 · 1 mark · MCQCompetency-basedConsumer Protection
Ravi purchased gold jewellery from a reputed jewellery store. He ensured that the jewellery had a hallmark which confirm its purity and authenticity. To avoid paying goods and services tax (GST) he asked the salesperson to write the gold weight and making charges on a slip of paper and hand over it to him.
Which of the following responsibilities of a consumer was not fulfilled by Ravi while purchasing jewellery ?
1. (A)Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
2. (B)Ask for a cash memo on purchase of goods and services.
3. (C)Buy only standardized goods as they provide quality assurance.
4. (D)Assert yourself to ensure that you get a fair deal.
Try it first, then show our solutionSolution
1. Ravi bought hallmarked jewellery (standardised goods) but avoided a proper bill to dodge GST.
2. He failed the responsibility to ask for a cash memo on purchase of goods. Option (B).
  1 mark
Answer: (B) Ask for a cash memo on purchase of goods and services.
Where the marks are
- No proper bill taken (1 mark)
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Q9 · 1 mark · MCQCompetency-basedNature and Significance of Management
'CARO Tech Solutions' aimed at development of a software system for the company's growing operations. The project was to be completed within six months with a budget of ₹ 12,00,000.
The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ₹ 2,00,000.
From the following, identify whether the software development team is :
1. (A)Efficient and Effective
2. (B)Efficient but not effective
3. (C)Effective but not efficient
4. (D)Neither efficient nor effective
Try it first, then show our solutionSolution
1. The project was completed on time, so the target was met: the team was effective.
2. It spent ₹2,00,000 more than the budget of ₹12,00,000, so resources were not used economically: it was not efficient. Option (C).
  1 mark
Answer: (C) Effective but not efficient
Where the marks are
- On time but over budget (1 mark)
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Q10 · 1 mark · MCQCompetency-basedNature and Significance of Management
Due to severe winter and rising pollution levels, 'Green India Electronics' planned to launch a new eco-friendly heater in the market. It conducted a survey and found that the demand of this product was very high. As the winter season lasts only for 2 to 3 months, the Chief Executive Officer wanted that there should be close coordination among all the managers to deliver orders on time. Top level managers were asked to work in coordination with their subordinates to ensure that company's policies were properly followed. To ensure that the heaters would be ready on time, the production manager co-ordinated with the operational level managers. Operational level managers co-ordinated the activities of the workers to ensure that work proceeded according to plans. As a result 'Green India Electronics' was able to launch its heaters on time, in the market.
The feature of co-ordination discussed in the above case is :
1. (A)Co-ordination is a deliberate function.
2. (B)Co-ordination is the responsibility of all managers.
3. (C)Co-ordination is a continuous process.
4. (D)Co-ordination ensures unity of action.
Try it first, then show our solutionSolution
1. Top managers coordinated with subordinates, middle managers with operational managers, and operational managers with workers.
2. Coordination performed at every level shows co-ordination is the responsibility of all managers. Option (B).
  1 mark
Answer: (B) Co-ordination is the responsibility of all managers.
Where the marks are
- Coordination at all levels by every manager (1 mark)
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Q11 · 1 mark · MCQCompetency-basedBusiness Environment
'Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competitors in the market.'
The feature of business environment highlighted in the above statement is :
1. (A)Totality of external forces
2. (B)Complexity
3. (C)Dynamic nature
4. (D)Relativity
Try it first, then show our solutionSolution
1. The statement stresses that the environment keeps changing: technology, preferences, competition.
2. Continuous change is the dynamic nature of business environment. Option (C).
  1 mark
Answer: (C) Dynamic nature
Where the marks are
- The environment keeps changing (1 mark)
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Q12 · 1 mark · MCQFinancial Management
A position when a company is unable to meet its fixed financial charges like interest payment, dividend on preference shares and repayment obligations is referred to as ______ .
1. (A)Trading on equity
2. (B)Financial risk
3. (C)Business risk
4. (D)Operating risk
Try it first, then show our solutionSolution
1. Fixed financial charges (interest, preference dividend, repayment) must be paid whatever the earnings.
2. The chance that a company cannot meet these fixed financial charges is financial risk. Option (B).
  1 mark
Answer: (B) Financial risk
Where the marks are
- Inability to meet fixed financial charges (1 mark)
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Q13 · 1 mark · MCQPlanning
Identify the incorrect statement with respect to the importance of planning function of management :
1. (A)Planning provides directions by stating in advance how work is to be done.
2. (B)Planning eliminates uncertainty by looking ahead and anticipating changes.
3. (C)Planning facilitates decision making by making a choice among various alternative courses of action.
4. (D)Planning promotes innovative ideas as new ideas can take the shape of concrete plans.
Try it first, then show our solutionSolution
1. Planning helps a manager anticipate change and prepare responses to it.
2. It cannot eliminate uncertainty, only reduce the risk of uncertainty, so statement (B) is incorrect. Option (B).
  1 mark
Answer: (B) Planning eliminates uncertainty by looking ahead and anticipating changes.
Where the marks are
- Planning reduces, not eliminates, uncertainty (1 mark)
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Q14 · 1 mark · MCQOrganising
Organising is the process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results.
Organising process thus involves a series of steps that need to be taken in order to achieve the desired goal.
Arrange the steps of the process of organizing in the correct order :
1. (A)Identification and Division of work, Assignment of duties, Departmentalisation, Establishing authority and reporting relationships
2. (B)Identification and Division of work, Assignment of duties, Establishing authority and reporting relationships, Departmentalisation
3. (C)Departmentalisation, Identification and Division of work, Establishing authority and reporting relationships, Assignment of duties
4. (D)Identification and Division of work, Departmentalisation, Assignment of duties, Establishing authority and reporting relationship
Try it first, then show our solutionSolution
1. Work is first identified and divided into jobs, then similar jobs are grouped into departments.
2. Jobs are then assigned to people, and finally authority and reporting relationships are established. Option (D).
  1 mark
Answer: (D) Identification and Division of work, Departmentalisation, Assignment of duties, Establishing authority and reporting relationship
Where the marks are
- Four steps of organising in order (1 mark)
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Q15 · 1 mark · MCQPlanning
Identify the feature of planning which states that the purpose of planning is to meet future events effectively to the best advantage of an organisation :
1. (A)Planning involves decision making
2. (B)Planning is futuristic
3. (C)Planning is a mental exercise
4. (D)Planning focuses on achieving objectives
Try it first, then show our solutionSolution
1. Planning looks ahead and prepares the organisation to meet future events effectively.
2. This is the feature planning is futuristic (forward-looking). Option (B).
  1 mark
Answer: (B) Planning is futuristic
Where the marks are
- Planning looks ahead (1 mark)
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Q16 · 1 mark · MCQPrinciples of Management

Match the principle of management given in Column – I with its explanation given in Column – II :

Column – I	Column – II
(a) Discipline	(i) There should be one and only one boss for every individual employee in the organisation.
(b) Unity of direction	(ii) There should be a place for everything (everyone) and everything (everyone) should be in its (his/her) place.
(c) Order	(iii) There should be obedience to organisational rules and employment agreement which is necessary for the working of the organisation.
(d) Unity of command	(iv) Each group of activities having the same objective must have one head and one plan.

Choose the correct option from the following :

(A)(a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
(B)(a)-(iv), (b)-(iii), (c)-(ii), (d)-(i)
(C)(a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)
(D)(a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

Try it first, then show our solutionSolution

Discipline is obedience to rules and agreements (iii); unity of direction is one head and one plan for activities with the same objective (iv).
Order is a place for everything and everyone (ii); unity of command is one boss for each employee (i). Option (D).
1 mark

Answer: (D) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

Where the marks are

Matching Fayol's principles (1 mark)

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Q17 · 1 mark · MCQControlling
The step of controlling process which reveals the deviation between actual performance and desired results is :
1. (A)Setting performance standards
2. (B)Analysing deviations
3. (C)Taking corrective action
4. (D)Comparing actual performance with the standards
Try it first, then show our solutionSolution
1. Performance is first measured and then compared with the standards.
2. The comparison is the step that reveals the deviation between actual and desired results: comparing actual performance with the standards. (Analysing deviations comes after, to find their causes.) Option (D).
  1 mark
Answer: (D) Comparing actual performance with the standards
Where the marks are
- Comparison reveals the deviation (1 mark)
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Q18 · 1 mark · MCQCompetency-basedFinancial Management
'Certain provisions of the Companies Act place restrictions on payouts as dividend. Such provisions must be adhered to while declaring the dividend.'
The factor affecting dividend decision discussed above is :
1. (A)Access to capital market
2. (B)Contractual constraints
3. (C)Legal constraints
4. (D)Stock market reaction
Try it first, then show our solutionSolution
1. Restrictions imposed by the Companies Act are restrictions of law.
2. They are legal constraints on dividend; contractual constraints arise from loan agreements. Option (C).
  1 mark
Answer: (C) Legal constraints
Where the marks are
- Companies Act provisions = legal constraints (1 mark)
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Q19 · 1 mark · MCQControlling
Read the following statements carefully :
Statement – I : Control should focus on key result areas which are critical to the success of an organization.
Statement – II : Only significant deviations which go beyond the permissible limit should be brought to the notice of management.
With reference to the given statements, choose the correct alternative from the following :
1. (A)Both the statements are true.
2. (B)Both the statements are false.
3. (C)Statement I is true and Statement II is false.
4. (D)Statement I is false and Statement II is true.
Try it first, then show our solutionSolution
1. Statement I is true: control should focus on key result areas critical to success (critical point control).
2. Statement II is true: only significant deviations beyond the permissible limit are reported (management by exception). Option (A).
  1 mark
Answer: (A) Both the statements are true.
Where the marks are
- Critical point control and management by exception (1 mark)
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Q20 · 1 mark · MCQDirecting
Which of the following is NOT an organisational barrier to communication ?
1. (A)Status
2. (B)Organisational facilities
3. (C)Lack of proper incentives
4. (D)Rules and regulations
Try it first, then show our solutionSolution
1. Status, organisational facilities and rules and regulations are organisational barriers.
2. Lack of proper incentives is a personal barrier, so it is NOT an organisational barrier. Option (C).
  1 mark
Answer: (C) Lack of proper incentives
Where the marks are
- Lack of incentives is a personal barrier (1 mark)
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Section B

short answer

Q21 · 3 marks · Short answerCompetency-basedControlling
'Riya Mart' is a company manufacturing disposable crockery. They have been in business for the past five years, but were not earning good profits. Concerned about this, the Chief Executive Officer (CEO), Verma, ordered an internal audit. The audit uncovered several issues like inventory pilferage, employees coming late and their performance not upto the mark. To stop inventory pilferage, Verma, the CEO, introduced surprise stock checks and installed an automated inventory management system to track stock movements. A biometric attendance system was also setup to keep a check on employees coming late. In addition to this, to motivate employees for better performance, they were told in advance what they are expected to do and what are their standards of performance. As a result of these steps, the inventory pilferage reduced, employees became more punctual and their performance improved.
1. (i)
  Identify and state the function of management performed by Verma, the Chief Executive Officer of the company.
  1 mark
2. (ii)
  State any two points of importance of the function identified in (i) above, which are not discussed in the above para.
  2 marks
Try it first, then show our solutionSolution
1. (i) The function is Controlling: measuring accomplishment against standards and correcting deviations to ensure objectives are achieved as planned.
  1 mark
2. (ii) Accomplishing organisational goals: Controlling measures progress towards goals and brings deviations to light for correction.
  1 mark
3. Judging accuracy of standards: It reviews and revises standards in the light of changes in the organisation and the environment. (Also: efficient use of resources, facilitating coordination in action.)
  1 mark
Answer: (i) Controlling. (ii) Any two not in the case: accomplishing goals, judging accuracy of standards, efficient use of resources, facilitating coordination.
Where the marks are
- (i) ½ identification + ½ statement
- (ii) Two points, 1 each (½ each if only listed)
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Q22 · 3 marks · Short answerCompetency-basedOrganising
'Soal Footwear Ltd.' is known for its high quality athletic shoes and casual sneakers. With increasing competition and changing consumer preferences, it decided to diversify its product range by adding clothing, bags and accessories under the same brand umbrella. This diversification aimed to capture a larger share of the market and increase customer loyalty.
1. (i)
  Suggest with reason which type of organisational structure will be suitable for 'Soal Footwear Ltd.' (1+2)
  1 mark
2. (ii)
  State any two advantages of the organisational structure suggested in (i) above.
  2 marks
Try it first, then show our solutionSolution
1. (i) Divisional structure. Reason: the company is diversifying into a large variety of products (clothing, bags, accessories) under one brand.
  1 mark
2. (ii) Product specialisation develops managers: Divisional heads gain varied skills and are prepared for higher positions.
  1 mark
3. Facilitates expansion and growth: New divisions can be added for new product lines without disturbing existing ones. (Also: accountability for profits, flexibility and initiative.)
  1 mark
Answer: (i) Divisional structure, as the company is diversifying its product range. (ii) Any two advantages: managerial development, accountability for profits, flexibility, easy expansion.
Where the marks are
- (i) ½ structure + ½ reason
- (ii) Two advantages, 1 each
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Answer one of these 2 alternatives.
Q23(a) · 3 marks · Short answerDirecting
State any three measures to improve communication effectiveness.
Try it first, then show our solutionSolution
1. Clarify ideas before communicating: The message should be studied and stated clearly so that subordinates understand it.
  1 mark
2. Communicate according to the needs of the receiver: Adjust the message to the education and understanding of subordinates.
  1 mark
3. Ensure proper feedback: Ask questions to check the message has been understood. (Also: consult others, mind language and tone, convey things of value, communicate for present and future, follow up, be a good listener.)
  1 mark
Answer: Any three: clarify ideas, communicate to the receiver's needs, ensure feedback, consult others, mind language and tone, follow up, be a good listener.
Where the marks are
- Any three measures, 1 each (½ each if only listed)
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OR
Q23(b) · 3 marks · Short answerDirecting
State any three features of leadership.
Try it first, then show our solutionSolution
1. Ability to influence others: Leadership indicates an individual's ability to influence the behaviour of others.
  1 mark
2. Brings change in behaviour: It tries to change the behaviour of others towards goals.
  1 mark
3. Continuous process: Leadership is exercised continuously, not once. (Also: interpersonal relations between leaders and followers; exercised to achieve common goals.)
  1 mark
Answer: Any three: ability to influence, change in behaviour, interpersonal relations, achieving common goals, continuous process.
Where the marks are
- Any three features, 1 each
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Answer one of these 2 alternatives.
Q24(a) · 3 marks · Short answerNature and Significance of Management
State any three functions of middle level management.
Try it first, then show our solutionSolution
1. Interpret policies: They interpret the policies framed by top management.
  1 mark
2. Ensure necessary personnel: They ensure their department has the necessary personnel and assign duties to them.
  1 mark
3. Motivate and cooperate: They motivate people in their department and cooperate with other departments for smooth functioning. (Also: implement and control plans; responsible for first-line managers.)
  1 mark
Answer: Any three: interpret policies, ensure personnel, assign duties, motivate, cooperate with other departments, implement plans, oversee first-line managers.
Where the marks are
- Any three functions, 1 each
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OR
Q24(b) · 3 marks · Short answerBusiness Environment
State any three features of 'Demonetisation'.
Try it first, then show our solutionSolution
1. Tax administration measure: It requires declaration of unaccounted wealth and payment of tax at a penalty rate.
  1 mark
2. Shift against tax evasion: It signals that the government will no longer tolerate tax evasion.
  1 mark
3. Less-cash economy: It moves savings into the formal financial system and creates a less-cash (cash-lite) economy, improving tax compliance.
  1 mark
Answer: Any three: tax administration measure, signal against tax evasion, channelling savings into the formal system, less-cash economy.
Where the marks are
- Any three features, 1 each
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Section C

long answer

Q25 · 4 marks · Long answerCompetency-basedOrganising
'Sheetal Cosmetics Ltd.', is a fast growing beauty and skin care company known for its innovative products and aggressive market expansion. As the company increased its marketing activities like new product launches, accelerated advertising campaigns, social media promotions and influencer collaborations etc., the workload of the marketing department grew sharply. Despite working long hours, the marketing manager Arjun couldn't give adequate attention to strategic planning and high impact decisions as minor operational issues began consuming most of his time. Noticing this, the Chief Executive Officer (CEO) advised Arjun that it was now impractical for him to handle the entire volume of work alone, so he should allow his subordinates to take up routine tasks. This would not only help him manage his time better but also satisfy the subordinate's need for recognition. This will also provide opportunities to the subordinates to develop and exercise initiative.
1. (i)
  Identify the concept suggested by CEO that will help Arjun to manage volume of work effectively.
  1 mark
2. (ii)
  State any three points of importance of the concept identified in (i) above.
  3 marks
Try it first, then show our solutionSolution
1. (i) The concept is Delegation (of authority).
  1 mark
2. (ii) Effective management: Managers are freed from routine work to concentrate on important matters.
  1 mark
3. Employee development: Subordinates use their talent and develop for higher positions.
  1 mark
4. Motivation of employees: Entrusting a task shows trust and builds commitment and recognition. (Also: facilitates growth, basis of management hierarchy, better coordination.)
  1 mark
Answer: (i) Delegation. (ii) Any three: effective management, employee development, motivation, growth, basis of hierarchy, better coordination.
Where the marks are
- (i) Naming the concept (1)
- (ii) Any three points, 1 each
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Answer one of these 2 alternatives.
Q26(a) · 4 marks · Long answerStaffing
State any four merits of internal source of recruitment.
Try it first, then show our solutionSolution
1. Motivates employees: A promotion can start a chain of promotions, encouraging better performance.
  1 mark
2. Simplifies selection and placement: Existing employees can be evaluated more accurately and economically.
  1 mark
3. Transfer is a tool of training: It prepares employees for higher jobs, and no induction training is needed.
  1 mark
4. Economical: Filling jobs internally is cheaper than going outside. (Also: shifts surplus staff to departments with shortage.)
  1 mark
Answer: Any four: motivates employees, simplifies selection, transfer as training, shifts surplus staff, economical.
Where the marks are
- Any four merits, 1 each
Open Q26(a) on its own page
OR
Q26(b) · 4 marks · Long answerStaffing
State any four benefits of training to the employees.
Try it first, then show our solutionSolution
1. Better career: Improved skills and knowledge lead to a better career.
  1 mark
2. Higher earnings: Increased performance helps the employee earn more.
  1 mark
3. Fewer accidents: Trained employees handle machines efficiently and are less prone to accidents.
  1 mark
4. Higher satisfaction and morale: Training increases job satisfaction and morale.
  1 mark
Answer: Better career, higher earnings, fewer accidents, higher satisfaction and morale.
Where the marks are
- Four benefits to employees, 1 each
Open Q26(b) on its own page
Answer one of these 2 alternatives.
Q27(a) · 4 marks · Long answerPlanning
Explain the following points of importance of planning : (2+2)
(i) Planning establishes standards for controlling
(ii) Planning reduces overlapping and wasteful activities
Try it first, then show our solutionSolution
1. (i) Establishes standards for controlling: Planning provides the goals against which actual performance is measured; without planned standards, deviations could not be found, so planning is a prerequisite for controlling.
  2 marks
2. (ii) Reduces overlapping and wasteful activities: Planning is the basis for coordinating departments and individuals; it removes confusion and useless, redundant activities.
  2 marks
Answer: Planning provides the standards for control and removes overlapping and wasteful activities.
Where the marks are
- Each point explained, 2 marks
Open Q27(a) on its own page
OR
Q27(b) · 4 marks · Long answerPlanning
Explain the following types of plans : (2+2)
(i) Objective
(ii) Method
Try it first, then show our solutionSolution
1. (i) Objectives: The desired future position management wants to reach, stated in specific, written terms; usually set by top management, with departments having their own objectives.
  2 marks
2. (ii) Method: The prescribed way in which a task, one step of a procedure, is to be performed considering the objective; it can vary from task to task.
  2 marks
Answer: Objectives are the desired end results; a method is the prescribed way of performing one step of a procedure.
Where the marks are
- Each type explained, 2 marks
Open Q27(b) on its own page
Q28 · 4 marks · Long answerCompetency-basedPrinciples of Management
Rajiv was on the board of directors of 'Tako Solutions', a software development company and 'Sabka Mart Retail', a large supermarket chain. He wanted to apply management principles in both the companies to improve efficiency and profitability.
He knew that management principles can be applied as much to 'Tako Solutions' as to 'Sabka Mart Retail' though the extent to which the principles can be applied will differ, because the nature of work, scale of operations and business activities in a software firm and a supermarket chain are not the same.
Rajiv also knew that the management principles would not provide readymade solutions because real world situations faced by the two companies were very complex and dynamic. Still, he believed that even small guidelines could help in solving many problems and will improve the way both companies worked.
Identify and explain the two points that highlight the nature of principles of management, in the above case.
Try it first, then show our solutionSolution
1. Universal applicability: The principles apply to all kinds of organisations (here a software firm and a supermarket chain), though the extent of application differs with the nature of work and scale of operations.
  2 marks
2. General guidelines: Principles are guidelines to action, not readymade solutions, because real situations are complex and dynamic; still, even a small guideline helps solve problems.
  2 marks
Answer: Universal applicability and general guidelines.
Where the marks are
- Each point: ½ identification + 1½ explanation
Open Q28 on its own page
Q29 · 4 marks · Long answerCompetency-basedNature and Significance of Management
'GW Industries', known for its paper products, decided to produce and launch a new line of sustainable packaging called 'EcoPac'.
As management is a complex activity, the Chief Executive Officer of the company translated the work into clear goals and assigned the means to achieve those. He knew that human resources are the greatest asset of an organization, so getting work done through them is also a major task. The production of high quality sustainable packaging also required a proper production process. This was put in place for managing the flow of input materials and technology to convert these materials into high quality sustainable packaging.
In this way 'GW industries' took care of various aspects for successful launch of 'EcoPac'.
A characteristic of management is discussed in the above case. Identify and explain the characteristic.
Try it first, then show our solutionSolution
1. The characteristic is Management is multidimensional: it has three dimensions.
  1 mark
2. Management of work: Work is translated into goals and the means to achieve them are assigned.
  1 mark
3. Management of people: Employees are dealt with as individuals with diverse needs and as a group, getting work done through them.
  1 mark
4. Management of operations: A production process manages the flow of input material and technology to turn inputs into output.
  1 mark
Answer: Management is multidimensional: management of work, people and operations.
Where the marks are
- Identification (1)
- Each dimension: ½ heading + ½ explanation
Open Q29 on its own page
Q30 · 4 marks · Long answerCompetency-basedMarketing
'Eco Care', a start-up, plans to launch a reusable water bottle for environmentally conscious millennials and Gen Z. For this, they conducted a market research to identify the needs of the customers so that an informed decision could be taken for successful marketing of the product. They wanted to work carefully on the design to make the bottle attractive to the target customers.
On the basis of consumer views and opinions, they developed a stylish stainless steel bottle with double wall insulation to keep beverages cold for 24 hours, giving it a competitive advantage in the market.
They named the bottle 'Eco-Sip' creating a brand identity focused on sustainability and simplicity. It would also help in product differentiation. The packaging was made using hundred percent recyclable cardboard, with details of sustainability, features, price etc. printed on it.
State the four functions of marketing that are carried out by 'Eco Care' in the above case.
Try it first, then show our solutionSolution
1. Gathering and analysing market information: Market research identified customers' needs for an informed decision.
  1 mark
2. Product designing and development: The bottle was designed to be attractive and given double-wall insulation for competitive advantage.
  1 mark
3. Branding: Naming it "Eco-Sip" built a brand identity and product differentiation.
  1 mark
4. Packaging and labelling: Recyclable cardboard packaging with details of features and price printed on it.
  1 mark
Answer: Gathering and analysing market information; product designing and development; branding; packaging and labelling.
Where the marks are
- Four functions, 1 each (½ each if only listed)
Open Q30 on its own page

Section D

long answer

Q31 · 6 marks · Long answerCompetency-basedFinancial Management
'Koka Manufacturing Ltd.' is a large scale manufacturer in the electronics industry. In this industry assets are prone to obsolescence and their replacement becomes due faster with change in technology. The company is constantly under pressure to upgrade its machinery and equipment as it would help company to stay competitive, improve its product quality and reduce production costs. So instead of purchasing the machinery, company decides to lease the required machinery, giving it flexibility to upgrade equipment at the end of lease term. This helps company to maintain operational efficiency, technological competitiveness and financial flexibility.
Identify and explain four factors that would affect the fixed capital requirements of 'Koka Manufacturing Ltd.'.
Try it first, then show our solutionSolution
1. Nature of business: A manufacturing concern like Koka needs heavy investment in plant and machinery, unlike a trading concern.
  1½ marks
2. Scale of operations: As a large-scale manufacturer it needs bigger plant and more space, so more fixed capital.
  1½ marks
3. Technology upgradation: In electronics, assets become obsolete quickly and need faster replacement, raising fixed capital needs.
  1½ marks
4. Financing alternatives: Leasing machinery instead of buying it reduces the funds to be invested in fixed assets.
  1½ marks
Answer: Nature of business, scale of operations, technology upgradation and financing alternatives (leasing).
Where the marks are
- Each factor: ½ identification + 1 explanation
Open Q31 on its own page
Answer one of these 2 alternatives.
Q32(a) · 6 marks · Long answerStaffing
Explain the following steps in the staffing process :
(i) Estimating manpower requirements
(ii) Selection
(iii) Placement and orientation
Try it first, then show our solutionSolution
1. (i) Estimating manpower requirements: Finding how many and what type of people are needed, through workload and workforce analysis, which show whether the firm is under-, over- or optimally staffed.
  2 marks
2. (ii) Selection: Choosing from the pool of candidates developed by recruitment so that the firm gets the best available; it also raises the self-esteem of those selected.
  2 marks
3. (iii) Placement and orientation: Placement is the employee occupying the post for which selected; orientation introduces the employee to colleagues and to the organisation's rules and policies.
  2 marks
Answer: Manpower estimation by workload/workforce analysis; selection of the best from the pool; placement in the post and orientation to the organisation.
Where the marks are
- Each step explained, 2 marks
Open Q32(a) on its own page
OR
Q32(b) · 6 marks · Long answerDirecting
Explain the following non-financial incentives :
(i) Status
(ii) Organisational climate
(iii) Job security
Try it first, then show our solutionSolution
1. (i) Status: The ranking of positions in the organisation, shown by authority, responsibility and recognition; it satisfies psychological, social and esteem needs.
  2 marks
2. (ii) Organisational climate: The characteristics that describe an organisation and distinguish it from others, such as autonomy, reward orientation, consideration for employees and risk-taking.
  2 marks
3. (iii) Job security: Stability of future income and work, so employees work with zeal without worry; more important where jobs are scarce.
  2 marks
Answer: Status: rank of a position; organisational climate: distinguishing characteristics of the organisation; job security: stability of income and work.
Where the marks are
- Each incentive explained, 2 marks
Open Q32(b) on its own page
Q33 · 6 marks · Long answerCompetency-basedFinancial Markets
Ria ran a small online bakery business. Her business was doing very well. She saved a good amount of money every month and now wanted to invest it wisely. She was in a dilemma to keep her savings in a bank account or to invest it in the stock market. Her friend Aabha, who had done a certification course from National Stock Exchange, encouraged her to invest in the stock market. She explained to Ria that if she invests in the stock market, she could disinvest and reinvest whenever she wanted, which would provide her good liquidity. Aabha also told her that the membership of stock exchange is well regulated and all trading takes place within the legal framework. As a result, investors get a fair and safe deal.
Ria was still apprehensive as she had heard that there is lot of speculation in the stock market. She wanted to be cautious. Aabha clarified that speculation does exist, but it happens in a restricted and controlled way. She also told Ria that the stock exchange is keen to promote wider share ownership and does so by educating public about investments etc. As a result, young people have started investing in the stock market. After all this discussion, Ria felt confident and decided to invest a part of her savings in the stock market.
Quoting lines, identify and explain the four functions of stock exchange highlighted in the above case.
Try it first, then show our solutionSolution
1. Providing liquidity and marketability: "...she could disinvest and reinvest whenever she wanted, which would provide her good liquidity." A continuous market lets investors buy and sell existing securities.
  1½ marks
2. Safety of transactions: "...the membership of stock exchange is well regulated and all trading takes place within the legal framework." Investors get a safe and fair deal.
  1½ marks
3. Providing scope for speculation: "...speculation does exist, but it happens in a restricted and controlled way." Speculative activity is allowed within the law.
  1½ marks
4. Spreading of equity cult: "...the stock exchange is keen to promote wider share ownership and does so by educating public about investments." It widens share ownership.
  1½ marks
Answer: Liquidity and marketability; safety of transactions; scope for speculation; spreading of equity cult.
Where the marks are
- Each function: ½ quoting + ½ identification + ½ explanation
Open Q33 on its own page
Answer one of these 2 alternatives.
Q34(a) · 6 marks · Long answerMarketing
Explain the following elements of Marketing Mix :
(i) Product
(ii) Price
(iii) Promotion
Try it first, then show our solutionSolution
1. (i) Product: Goods, services or anything of value offered for sale, including after-sales service; decisions cover features, quality, packaging, labelling and branding.
  2 marks
2. (ii) Price: The money customers pay to obtain the product; price affects demand, and decisions cover the basic price, discounts and credit terms.
  2 marks
3. (iii) Promotion: Activities that inform target customers about the product and persuade them to buy, using advertising, personal selling, public relations and sales promotion.
  2 marks
Answer: Product: what is offered; price: what customers pay; promotion: informing and persuading customers.
Where the marks are
- Each element explained, 2 marks
Open Q34(a) on its own page
OR
Q34(b) · 6 marks · Long answerMarketing
Explain the following components of physical distribution :
(i) Order processing
(ii) Warehousing
(iii) Inventory control
Try it first, then show our solutionSolution
1. (i) Order processing: Orders flow from customers to manufacturers; accurate and speedy processing prevents late or wrong deliveries and customer dissatisfaction.
  2 marks
2. (ii) Warehousing: Storing and assorting goods to create time utility, needed because production and consumption happen at different times.
  2 marks
3. (iii) Inventory control: Deciding the level of inventory, balancing customer service against carrying cost, based on a correct estimate of demand.
  2 marks
Answer: Order processing: accurate, speedy handling of orders; warehousing: storage creating time utility; inventory control: balancing service and cost.
Where the marks are
- Each component explained, 2 marks
Open Q34(b) on its own page

Source: official question paper, cbse.gov.in. Chapter tags and solutions are ours. Spotted a transcription error? Write tosupport@questionbuddy.in.