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‘Game of… (Class 12 Business Studies SQP 2025-26, Q16)

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Business StudiesCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2025-26: question 16

From the official CBSE sample question paper for 2025-26, section A, question 16, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q16 · 1 mark · MCQCompetency-basedFinancial Management

‘Game of Clones’, a reputed amusement company has decided to run an advertising campaign for which it is hiring various celebrities. The campaign involves an expenditure of ₹ 150 Crores. Identify the financial decision involved in the above case.

  1. (A)Long term investment decision
  2. (B)Financing decision
  3. (C)Working capital decision
  4. (D)Dividend decision

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Is the money being raised, invested or distributed?

Hint 2

Will the benefit of the campaign last beyond one year?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A major advertising campaign costing ₹150 crore commits a large amount of funds for long-term benefit and is difficult to reverse.

  2. Such commitments are capital budgeting, i.e. long-term investment decisions. Option (A).

    1 mark

Answer: (A) Long term investment decision

Where the marks are

  • Large campaign = capital budgeting (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Financial Management, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.