CBSE Class 12 Business Studies 2026: question 14
Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 14, for 1 mark. Try it first; the hints and our step-by-step solution are below.
Q14 · 1 mark · MCQCompetency-basedDirecting
A leading newspaper company noticed that many of its talented editors were resigning despite being paid competitive salaries. On conducting an internal survey, it was revealed that employees were dissatisfied as they were not being offered benefits over and above the salary, like the employees of other competitive firms. Realising that such additional benefits play an important role in motivating employees, the management decided to provide car allowance, housing facilities, medical benefits, etc. to retain employees in the organisation and improve their satisfaction.
Identify the incentive that the newspaper company decided to provide to their employees :
- (A)Bonus
- (B)Retirement benefits
- (C)Perquisites
- (D)Profit sharing
Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.
Hints
Open one hint at a time and try again before the next.
Hint 1
Are these paid as cash bonus or as facilities?
Hint 2
Perks = fringe benefits.
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.
Car allowance, housing and medical benefits are benefits over and above salary.
- 1 mark
Such fringe benefits are perquisites, a financial incentive. Option (C).
Answer: (C) Perquisites
Where the marks are
- Benefits over and above salary (1 mark)
Revise the chapter
- Chapter: Directing (notes, formulas, where marks are lost and every past question)
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