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Dash n Dip'… (Class 12 Business Studies SQP 2026-27, Q5)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2026-27: question 5

From the official CBSE sample question paper for 2026-27, section A, question 5, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q5 · 1 mark · MCQCompetency-basedBusiness Environment

Dash n Dip' was established in 2022 as one of the first fast-food chains in India introducing the concept of family-style restaurants. However, within two years, the business started losing customers to multinational food chains and eventually had to shut down its operations.

The owner of the restaurant, Ms Kamya Kulkarni realized that she had been unable to identify, understand, evaluate and respond to the external environmental trends like changes in customer's preferences and increasing competition. This had resulted in hindering the firm's performance.

Identify the importance of understanding the business environment highlighted in the above case.

  1. (A)It helps in tapping useful resources.
  2. (B)It helps the firm to identify threats and early warning signals.
  3. (C)It helps in assisting in planning and policy formulation
  4. (D)It enables the firm to identify opportunities and get the first mover advantage.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Was the firm hurt by an opportunity or a threat?

Hint 2

Rising competition is a warning signal.

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. Kamya failed to read the signals of changing customer preferences and rising competition from multinational chains, and the business shut down.

  2. Understanding the environment helps a firm to identify threats and early warning signals in time to respond. Option (B).

    1 mark

Answer: (B) It helps the firm to identify threats and early warning signals.

Where the marks are

  • Missed threats and warning signals (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Business Environment, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: 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.