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Manu Priya is… (Class 12 Business Studies SQP 2025-26, Q5)

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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 5

From the official CBSE sample question paper for 2025-26, section A, question 5, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q5 · 1 mark · MCQCompetency-basedStaffing

Manu Priya is working as the Human Resource Manager of EDT Limited at an annual salary of ₹ 8 lakh per annum and is also offered shares of the company at a set price which is lower than the market price. The method being used to calculate the compensation provided to her is------.

  1. (A)Time based direct financial payment
  2. (B)Indirect financial payment
  3. (C)Time based Pay Plus incentives
  4. (D)Performance based direct financial payment

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 salary linked to time or to output?

Hint 2

What is the share offer: pay or an incentive?

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 fixed annual salary is a time-based direct payment. The offer of company shares below market price (employee stock option) is an incentive on top of it.

  2. Salary plus an incentive is time-based pay plus incentives. Option (C).

    1 mark

Answer: (C) Time based Pay Plus incentives

Where the marks are

  • Salary + stock option = time-based pay plus incentive (1 mark)

Revise the chapter

  • Chapter: Staffing (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Staffing, 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.