Class 12 Business Studies: CBSE Sample Question Papers (2024-25) | Business Studies (BST) Class 12 - Commerce PDF Download

 Page 1


1 
BUSINESS STUDIES (054)  
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
 
TIME: 3 HOURS                                                                         M.M. – 80 
• This question paper contains 34 questions. 
• Marks are indicated against each question. 
• Answers should be brief and to the point. 
• Answers to the questions carrying 3 marks may be from 50 to 75 words. 
• Answers to the questions carrying 4 marks may be about 150 words. 
• Answers to the questions carrying 6 marks may be about 200 words. 
 
Q.NO. QUESTION MARKS 
1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 
toys, Mr Ahrawat noticed that the workers in the factory were not giving their 
best as the physical conditions in the factory were not good. He conducted an 
experiment to see the effect of improvement in the physical conditions in the 
factory on the performance of the workers, by providing adequate ventilation 
and water facilities. He observed that the fatigue level of the workers reduced.  
 The nature of management being highlighted in the above case is: 
A. Management as science 
B. Management as profession 
C. Management as art 
D. Both A. and C. 
1 
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 
responsible for promoting exhibitions and events. In the previous season, she 
defined the total work of managing the events into graphic designing, 
registration inquiries, bill payments, etc, in order to facilitate specialisation. 
However, instead of allocating work, she had assigned each team member the 
full responsibility of managing the promotion of an entire event. Inspite of 
holding regular team meetings to take feedback, Jasmine found problems 
throughout the events season in the quality of graphic design, registration 
inquiry, bill payments, etc,. 
For the upcoming events season, Jasmine has decided to divide these 
responsibilities on the basis of her observation of the areas in which the  
individual team members have excelled in the  previous season and allocate 
the roles based on their skills and competencies. 
 Identify the step in the organising process which was not  properly performed 
in the previous season but has been duly performed for the upcoming season. 
A. Identification and division of work  
B. Establishing reporting relationships  
C. Departmentalisation 
D. Assignment of duties 
1 
3. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
1 
Page 2


1 
BUSINESS STUDIES (054)  
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
 
TIME: 3 HOURS                                                                         M.M. – 80 
• This question paper contains 34 questions. 
• Marks are indicated against each question. 
• Answers should be brief and to the point. 
• Answers to the questions carrying 3 marks may be from 50 to 75 words. 
• Answers to the questions carrying 4 marks may be about 150 words. 
• Answers to the questions carrying 6 marks may be about 200 words. 
 
Q.NO. QUESTION MARKS 
1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 
toys, Mr Ahrawat noticed that the workers in the factory were not giving their 
best as the physical conditions in the factory were not good. He conducted an 
experiment to see the effect of improvement in the physical conditions in the 
factory on the performance of the workers, by providing adequate ventilation 
and water facilities. He observed that the fatigue level of the workers reduced.  
 The nature of management being highlighted in the above case is: 
A. Management as science 
B. Management as profession 
C. Management as art 
D. Both A. and C. 
1 
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 
responsible for promoting exhibitions and events. In the previous season, she 
defined the total work of managing the events into graphic designing, 
registration inquiries, bill payments, etc, in order to facilitate specialisation. 
However, instead of allocating work, she had assigned each team member the 
full responsibility of managing the promotion of an entire event. Inspite of 
holding regular team meetings to take feedback, Jasmine found problems 
throughout the events season in the quality of graphic design, registration 
inquiry, bill payments, etc,. 
For the upcoming events season, Jasmine has decided to divide these 
responsibilities on the basis of her observation of the areas in which the  
individual team members have excelled in the  previous season and allocate 
the roles based on their skills and competencies. 
 Identify the step in the organising process which was not  properly performed 
in the previous season but has been duly performed for the upcoming season. 
A. Identification and division of work  
B. Establishing reporting relationships  
C. Departmentalisation 
D. Assignment of duties 
1 
3. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
1 
2 
Assertion(A):  Financial Planning aims at enabling the company to tackle 
the uncertainty in respect of the availability and timing of the funds. 
Reason(R):  Capital structure refers to the mix between owners’ and borrowed 
funds 
Alternatives : 
A. Both Assertion (A) is false and Reason (R) are true. 
B. Both Assertion (A) and Reason (R) are false. 
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not 
the correct explanation of the Assertion. 
D. Both Assertion (A) and Reason (R) are true, and  Reason (R) is the 
correct explanation of the Assertion. 
4. Read the following statements carefully: 
Statement I: Secondary Market directly promotes capital formation. 
Statement lI: Capital market deals in medium and long term securities such 
as equity shares and debentures. 
In the light of given statements, choose the correct alternative from the 
following: 
A. Both the statements are true. 
B. Both the statements are false. 
C. Statement I is true, Statement II is false. 
D. Statement II is true, Statement I is false. 
1 
 5. Choose the statement that correctly highlights the benefit of using external 
sources of recruitment. 
A. Competitive spirit among the existing staff  
B. Reduction in employees turnover 
C. Helps in increasing employees satisfaction  
D. Develops a sense of security amongst employees  
1 
 
 
6. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the 
needs of both industrial users and consumers. The company is providing easy 
finance facilities at a low rate of interest, which has considerably increased the 
demand for the product. The company has installed a new branch 
management software to efficiently manage and coordinate activities across 
their multiple branches and locations.  
Identify the components of the business environment from the above case 
study. 
A. Political and economic environment 
B. Economic and social environment  
C. Technological and legal environment  
D. Economic and technological environment     
 1 
7. 
 
 1 
 
 
 
 
 
 
 
 
Page 3


1 
BUSINESS STUDIES (054)  
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
 
TIME: 3 HOURS                                                                         M.M. – 80 
• This question paper contains 34 questions. 
• Marks are indicated against each question. 
• Answers should be brief and to the point. 
• Answers to the questions carrying 3 marks may be from 50 to 75 words. 
• Answers to the questions carrying 4 marks may be about 150 words. 
• Answers to the questions carrying 6 marks may be about 200 words. 
 
Q.NO. QUESTION MARKS 
1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 
toys, Mr Ahrawat noticed that the workers in the factory were not giving their 
best as the physical conditions in the factory were not good. He conducted an 
experiment to see the effect of improvement in the physical conditions in the 
factory on the performance of the workers, by providing adequate ventilation 
and water facilities. He observed that the fatigue level of the workers reduced.  
 The nature of management being highlighted in the above case is: 
A. Management as science 
B. Management as profession 
C. Management as art 
D. Both A. and C. 
1 
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 
responsible for promoting exhibitions and events. In the previous season, she 
defined the total work of managing the events into graphic designing, 
registration inquiries, bill payments, etc, in order to facilitate specialisation. 
However, instead of allocating work, she had assigned each team member the 
full responsibility of managing the promotion of an entire event. Inspite of 
holding regular team meetings to take feedback, Jasmine found problems 
throughout the events season in the quality of graphic design, registration 
inquiry, bill payments, etc,. 
For the upcoming events season, Jasmine has decided to divide these 
responsibilities on the basis of her observation of the areas in which the  
individual team members have excelled in the  previous season and allocate 
the roles based on their skills and competencies. 
 Identify the step in the organising process which was not  properly performed 
in the previous season but has been duly performed for the upcoming season. 
A. Identification and division of work  
B. Establishing reporting relationships  
C. Departmentalisation 
D. Assignment of duties 
1 
3. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
1 
2 
Assertion(A):  Financial Planning aims at enabling the company to tackle 
the uncertainty in respect of the availability and timing of the funds. 
Reason(R):  Capital structure refers to the mix between owners’ and borrowed 
funds 
Alternatives : 
A. Both Assertion (A) is false and Reason (R) are true. 
B. Both Assertion (A) and Reason (R) are false. 
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not 
the correct explanation of the Assertion. 
D. Both Assertion (A) and Reason (R) are true, and  Reason (R) is the 
correct explanation of the Assertion. 
4. Read the following statements carefully: 
Statement I: Secondary Market directly promotes capital formation. 
Statement lI: Capital market deals in medium and long term securities such 
as equity shares and debentures. 
In the light of given statements, choose the correct alternative from the 
following: 
A. Both the statements are true. 
B. Both the statements are false. 
C. Statement I is true, Statement II is false. 
D. Statement II is true, Statement I is false. 
1 
 5. Choose the statement that correctly highlights the benefit of using external 
sources of recruitment. 
A. Competitive spirit among the existing staff  
B. Reduction in employees turnover 
C. Helps in increasing employees satisfaction  
D. Develops a sense of security amongst employees  
1 
 
 
6. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the 
needs of both industrial users and consumers. The company is providing easy 
finance facilities at a low rate of interest, which has considerably increased the 
demand for the product. The company has installed a new branch 
management software to efficiently manage and coordinate activities across 
their multiple branches and locations.  
Identify the components of the business environment from the above case 
study. 
A. Political and economic environment 
B. Economic and social environment  
C. Technological and legal environment  
D. Economic and technological environment     
 1 
7. 
 
 1 
 
 
 
 
 
 
 
 
3 
Identify the responsibility that a consumer fulfills when he looks for the quality 
marks given above: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt 
C. Buy only standardised products 
D. Be honest in your dealings 
 
For Visually Impaired Candidates: 
When a consumer looks for FPO mark while purchasing a bottle of jam or 
hallmark when purchasing jewellery, which consumer responsibility has he 
kept in mind: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt  
C. Buy only standardised products 
D. Be honest in your dealings 
 
 
 
 
 
 
 
 
1 
 
8. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
ASSERTION (A): Controlling can prevent deviations. 
REASON (R): Controlling helps in minimising deviations by taking actions 
and decisions that reduce their recurrence. 
A. Both Assertion (A) and Reason (R) are true and Reason is the correct 
explanation of Assertion. 
B. Both Assertion(A) and Reason (R) are true and Reason is not the 
correct explanation of Assertion. 
C. Assertion (A) is true, Reason (R) is false. 
D. Assertion(A) is false, Reason(R) is true. 
 1 
9. ‘Joining a job marks the beginning of socialisation of employees at the 
workplace. The employee should be given a post for which he has been 
selected.’ 
Place the subsequent steps of staffing in a small organisation in  the correct 
order: 
A. Training and development, promotion and career planning, 
performance appraisal, compensation  
B. Performance appraisal, training and development, promotion and 
career planning, compensation  
C. Training and development, performance appraisal, promotion and 
career planning, compensation 
D. Training and development, performance appraisal, compensation, 
promotion and career planning 
 1 
10. Spiceworks, a company providing financial services to its clients is keeping a 
close check on the employee’s activities by using biometric and retina 
scanning as modes of accessing the office premises, in order to ensure greater 
security of information in the organisation. 
Choose the correct point of significance of controlling highlighted above: 
A. controlling helps in achievement of organisational goals 
B. controlling helps in ensuring order and discipline 
C. controlling helps in improving employees motivation  
D. controlling enables optimum utilisation of resources  
1  
Page 4


1 
BUSINESS STUDIES (054)  
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
 
TIME: 3 HOURS                                                                         M.M. – 80 
• This question paper contains 34 questions. 
• Marks are indicated against each question. 
• Answers should be brief and to the point. 
• Answers to the questions carrying 3 marks may be from 50 to 75 words. 
• Answers to the questions carrying 4 marks may be about 150 words. 
• Answers to the questions carrying 6 marks may be about 200 words. 
 
Q.NO. QUESTION MARKS 
1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 
toys, Mr Ahrawat noticed that the workers in the factory were not giving their 
best as the physical conditions in the factory were not good. He conducted an 
experiment to see the effect of improvement in the physical conditions in the 
factory on the performance of the workers, by providing adequate ventilation 
and water facilities. He observed that the fatigue level of the workers reduced.  
 The nature of management being highlighted in the above case is: 
A. Management as science 
B. Management as profession 
C. Management as art 
D. Both A. and C. 
1 
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 
responsible for promoting exhibitions and events. In the previous season, she 
defined the total work of managing the events into graphic designing, 
registration inquiries, bill payments, etc, in order to facilitate specialisation. 
However, instead of allocating work, she had assigned each team member the 
full responsibility of managing the promotion of an entire event. Inspite of 
holding regular team meetings to take feedback, Jasmine found problems 
throughout the events season in the quality of graphic design, registration 
inquiry, bill payments, etc,. 
For the upcoming events season, Jasmine has decided to divide these 
responsibilities on the basis of her observation of the areas in which the  
individual team members have excelled in the  previous season and allocate 
the roles based on their skills and competencies. 
 Identify the step in the organising process which was not  properly performed 
in the previous season but has been duly performed for the upcoming season. 
A. Identification and division of work  
B. Establishing reporting relationships  
C. Departmentalisation 
D. Assignment of duties 
1 
3. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
1 
2 
Assertion(A):  Financial Planning aims at enabling the company to tackle 
the uncertainty in respect of the availability and timing of the funds. 
Reason(R):  Capital structure refers to the mix between owners’ and borrowed 
funds 
Alternatives : 
A. Both Assertion (A) is false and Reason (R) are true. 
B. Both Assertion (A) and Reason (R) are false. 
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not 
the correct explanation of the Assertion. 
D. Both Assertion (A) and Reason (R) are true, and  Reason (R) is the 
correct explanation of the Assertion. 
4. Read the following statements carefully: 
Statement I: Secondary Market directly promotes capital formation. 
Statement lI: Capital market deals in medium and long term securities such 
as equity shares and debentures. 
In the light of given statements, choose the correct alternative from the 
following: 
A. Both the statements are true. 
B. Both the statements are false. 
C. Statement I is true, Statement II is false. 
D. Statement II is true, Statement I is false. 
1 
 5. Choose the statement that correctly highlights the benefit of using external 
sources of recruitment. 
A. Competitive spirit among the existing staff  
B. Reduction in employees turnover 
C. Helps in increasing employees satisfaction  
D. Develops a sense of security amongst employees  
1 
 
 
6. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the 
needs of both industrial users and consumers. The company is providing easy 
finance facilities at a low rate of interest, which has considerably increased the 
demand for the product. The company has installed a new branch 
management software to efficiently manage and coordinate activities across 
their multiple branches and locations.  
Identify the components of the business environment from the above case 
study. 
A. Political and economic environment 
B. Economic and social environment  
C. Technological and legal environment  
D. Economic and technological environment     
 1 
7. 
 
 1 
 
 
 
 
 
 
 
 
3 
Identify the responsibility that a consumer fulfills when he looks for the quality 
marks given above: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt 
C. Buy only standardised products 
D. Be honest in your dealings 
 
For Visually Impaired Candidates: 
When a consumer looks for FPO mark while purchasing a bottle of jam or 
hallmark when purchasing jewellery, which consumer responsibility has he 
kept in mind: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt  
C. Buy only standardised products 
D. Be honest in your dealings 
 
 
 
 
 
 
 
 
1 
 
8. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
ASSERTION (A): Controlling can prevent deviations. 
REASON (R): Controlling helps in minimising deviations by taking actions 
and decisions that reduce their recurrence. 
A. Both Assertion (A) and Reason (R) are true and Reason is the correct 
explanation of Assertion. 
B. Both Assertion(A) and Reason (R) are true and Reason is not the 
correct explanation of Assertion. 
C. Assertion (A) is true, Reason (R) is false. 
D. Assertion(A) is false, Reason(R) is true. 
 1 
9. ‘Joining a job marks the beginning of socialisation of employees at the 
workplace. The employee should be given a post for which he has been 
selected.’ 
Place the subsequent steps of staffing in a small organisation in  the correct 
order: 
A. Training and development, promotion and career planning, 
performance appraisal, compensation  
B. Performance appraisal, training and development, promotion and 
career planning, compensation  
C. Training and development, performance appraisal, promotion and 
career planning, compensation 
D. Training and development, performance appraisal, compensation, 
promotion and career planning 
 1 
10. Spiceworks, a company providing financial services to its clients is keeping a 
close check on the employee’s activities by using biometric and retina 
scanning as modes of accessing the office premises, in order to ensure greater 
security of information in the organisation. 
Choose the correct point of significance of controlling highlighted above: 
A. controlling helps in achievement of organisational goals 
B. controlling helps in ensuring order and discipline 
C. controlling helps in improving employees motivation  
D. controlling enables optimum utilisation of resources  
1  
4 
11. Identify the incorrect statement with respect to  ‘Investment decision’: 
A. Net working capital refers to excess of current assets over current 
liabilities 
B. Current assets are those assets which get converted into cash within 
one year 
C. Capital budgeting decisions are irreversible. 
D. Size of the assets, Profitability and competitiveness are not affected 
by capital budgeting decisions. 
 1 
12. State Commission has the jurisdiction to entertain complaints where value of 
goods and services paid as consideration is ________ 
A. More than ?1 crore and not more than ? 5 crore 
B. More than ?10 crore 
C. Less than ?1 crore 
D. More than ?1 crore and not more than ?10 crore 
 1 
13. Match the statements given in column I with the characteristic of business 
environment given in column II 
 COLUMN I  COLUMN II 
(a) Increased demand of Khakhra and Thepla 
in the region of Gujarat as compared to 
Delhi region 
i. Uncertainty 
(b) Digital academic certificates are issued to 
students accessible in a secured manner to 
eliminate undesirable practices like 
corruption and manipulation of records 
under Digital India Initiative. Such 
technological improvements are happening 
at a very fast pace. 
ii. Dynamic 
(c) Fashion market is facing both opportunities 
and challenges. Therefore it is difficult to 
predict the future of the fashion market. 
Iii. Relativity 
(d) A new government will result in changing 
government rules, fiscal policies, market 
conditions etc 
Iv. Interrelatedness 
Choose the correct option from the following: 
A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv) 
B. (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv) 
C. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii) 
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv) 
1 
14. The process of classification of products into different groups, on the basis of 
some of the important characteristics such as quality, size, etc. is known as: 
A. Branding 
B. Standardisation 
C. Grading  
D. Marketing planning 
 1 
Page 5


1 
BUSINESS STUDIES (054)  
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
 
TIME: 3 HOURS                                                                         M.M. – 80 
• This question paper contains 34 questions. 
• Marks are indicated against each question. 
• Answers should be brief and to the point. 
• Answers to the questions carrying 3 marks may be from 50 to 75 words. 
• Answers to the questions carrying 4 marks may be about 150 words. 
• Answers to the questions carrying 6 marks may be about 200 words. 
 
Q.NO. QUESTION MARKS 
1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing 
toys, Mr Ahrawat noticed that the workers in the factory were not giving their 
best as the physical conditions in the factory were not good. He conducted an 
experiment to see the effect of improvement in the physical conditions in the 
factory on the performance of the workers, by providing adequate ventilation 
and water facilities. He observed that the fatigue level of the workers reduced.  
 The nature of management being highlighted in the above case is: 
A. Management as science 
B. Management as profession 
C. Management as art 
D. Both A. and C. 
1 
2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, 
responsible for promoting exhibitions and events. In the previous season, she 
defined the total work of managing the events into graphic designing, 
registration inquiries, bill payments, etc, in order to facilitate specialisation. 
However, instead of allocating work, she had assigned each team member the 
full responsibility of managing the promotion of an entire event. Inspite of 
holding regular team meetings to take feedback, Jasmine found problems 
throughout the events season in the quality of graphic design, registration 
inquiry, bill payments, etc,. 
For the upcoming events season, Jasmine has decided to divide these 
responsibilities on the basis of her observation of the areas in which the  
individual team members have excelled in the  previous season and allocate 
the roles based on their skills and competencies. 
 Identify the step in the organising process which was not  properly performed 
in the previous season but has been duly performed for the upcoming season. 
A. Identification and division of work  
B. Establishing reporting relationships  
C. Departmentalisation 
D. Assignment of duties 
1 
3. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
1 
2 
Assertion(A):  Financial Planning aims at enabling the company to tackle 
the uncertainty in respect of the availability and timing of the funds. 
Reason(R):  Capital structure refers to the mix between owners’ and borrowed 
funds 
Alternatives : 
A. Both Assertion (A) is false and Reason (R) are true. 
B. Both Assertion (A) and Reason (R) are false. 
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not 
the correct explanation of the Assertion. 
D. Both Assertion (A) and Reason (R) are true, and  Reason (R) is the 
correct explanation of the Assertion. 
4. Read the following statements carefully: 
Statement I: Secondary Market directly promotes capital formation. 
Statement lI: Capital market deals in medium and long term securities such 
as equity shares and debentures. 
In the light of given statements, choose the correct alternative from the 
following: 
A. Both the statements are true. 
B. Both the statements are false. 
C. Statement I is true, Statement II is false. 
D. Statement II is true, Statement I is false. 
1 
 5. Choose the statement that correctly highlights the benefit of using external 
sources of recruitment. 
A. Competitive spirit among the existing staff  
B. Reduction in employees turnover 
C. Helps in increasing employees satisfaction  
D. Develops a sense of security amongst employees  
1 
 
 
6. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the 
needs of both industrial users and consumers. The company is providing easy 
finance facilities at a low rate of interest, which has considerably increased the 
demand for the product. The company has installed a new branch 
management software to efficiently manage and coordinate activities across 
their multiple branches and locations.  
Identify the components of the business environment from the above case 
study. 
A. Political and economic environment 
B. Economic and social environment  
C. Technological and legal environment  
D. Economic and technological environment     
 1 
7. 
 
 1 
 
 
 
 
 
 
 
 
3 
Identify the responsibility that a consumer fulfills when he looks for the quality 
marks given above: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt 
C. Buy only standardised products 
D. Be honest in your dealings 
 
For Visually Impaired Candidates: 
When a consumer looks for FPO mark while purchasing a bottle of jam or 
hallmark when purchasing jewellery, which consumer responsibility has he 
kept in mind: 
A. Assert yourself to ensure that you get a fair deal 
B. Getting a proper receipt  
C. Buy only standardised products 
D. Be honest in your dealings 
 
 
 
 
 
 
 
 
1 
 
8. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct alternative from those given below:  
ASSERTION (A): Controlling can prevent deviations. 
REASON (R): Controlling helps in minimising deviations by taking actions 
and decisions that reduce their recurrence. 
A. Both Assertion (A) and Reason (R) are true and Reason is the correct 
explanation of Assertion. 
B. Both Assertion(A) and Reason (R) are true and Reason is not the 
correct explanation of Assertion. 
C. Assertion (A) is true, Reason (R) is false. 
D. Assertion(A) is false, Reason(R) is true. 
 1 
9. ‘Joining a job marks the beginning of socialisation of employees at the 
workplace. The employee should be given a post for which he has been 
selected.’ 
Place the subsequent steps of staffing in a small organisation in  the correct 
order: 
A. Training and development, promotion and career planning, 
performance appraisal, compensation  
B. Performance appraisal, training and development, promotion and 
career planning, compensation  
C. Training and development, performance appraisal, promotion and 
career planning, compensation 
D. Training and development, performance appraisal, compensation, 
promotion and career planning 
 1 
10. Spiceworks, a company providing financial services to its clients is keeping a 
close check on the employee’s activities by using biometric and retina 
scanning as modes of accessing the office premises, in order to ensure greater 
security of information in the organisation. 
Choose the correct point of significance of controlling highlighted above: 
A. controlling helps in achievement of organisational goals 
B. controlling helps in ensuring order and discipline 
C. controlling helps in improving employees motivation  
D. controlling enables optimum utilisation of resources  
1  
4 
11. Identify the incorrect statement with respect to  ‘Investment decision’: 
A. Net working capital refers to excess of current assets over current 
liabilities 
B. Current assets are those assets which get converted into cash within 
one year 
C. Capital budgeting decisions are irreversible. 
D. Size of the assets, Profitability and competitiveness are not affected 
by capital budgeting decisions. 
 1 
12. State Commission has the jurisdiction to entertain complaints where value of 
goods and services paid as consideration is ________ 
A. More than ?1 crore and not more than ? 5 crore 
B. More than ?10 crore 
C. Less than ?1 crore 
D. More than ?1 crore and not more than ?10 crore 
 1 
13. Match the statements given in column I with the characteristic of business 
environment given in column II 
 COLUMN I  COLUMN II 
(a) Increased demand of Khakhra and Thepla 
in the region of Gujarat as compared to 
Delhi region 
i. Uncertainty 
(b) Digital academic certificates are issued to 
students accessible in a secured manner to 
eliminate undesirable practices like 
corruption and manipulation of records 
under Digital India Initiative. Such 
technological improvements are happening 
at a very fast pace. 
ii. Dynamic 
(c) Fashion market is facing both opportunities 
and challenges. Therefore it is difficult to 
predict the future of the fashion market. 
Iii. Relativity 
(d) A new government will result in changing 
government rules, fiscal policies, market 
conditions etc 
Iv. Interrelatedness 
Choose the correct option from the following: 
A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv) 
B. (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv) 
C. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii) 
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv) 
1 
14. The process of classification of products into different groups, on the basis of 
some of the important characteristics such as quality, size, etc. is known as: 
A. Branding 
B. Standardisation 
C. Grading  
D. Marketing planning 
 1 
5 
15. Shiwakumar runs a legal consultancy firm in Chhattisgarh. Whenever the firm 
hires new employees, on the first day of joining, they are welcomed to the 
organisation and are given details about the dress code, lunch timings, 
introduction to daily operations and fellow colleagues. They are also 
familiarised with the organisational policies and procedures, emergency exits, 
evacuation procedure, etc. 
Name the type of training which is provided by Shiwakumar in his firm. 
A. Apprenticeship training 
B. Vestibule training 
C. Induction training 
D. Internship training 
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16. Identify the incorrect statement with respect to Consumer Protection in India. 
A. It not only includes educating consumers about their rights and 
responsibilities but also helps in getting their grievances redressed 
B. It not only requires a judicial machinery for protecting the interest of 
consumers but also requires the consumers to get together and form 
themselves into Consumer associations for protection and promotion of 
their interests. 
C. It is the moral duty of any business to take care of consumers' interest 
and avoid any form of exploitation. 
D. The provisions of Consumer Protection Act came into force from 
1981. 
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17. Identify the decision which is not taken under financial management. 
A. Dividend Decision 
B. Capital Budgeting Decision 
C. Pricing Decision 
D. Both B. and C.  
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18. What are the factors that affect financing decisions? 
(a) Cash flow position of the company 
(b) Stability of earnings 
(c) Degree of financial risk 
(d) Contractual constraints 
(e) State of capital market 
(f) Level of competition 
Choose the correct alternative from the following: 
A. (b), (c) and (f) 
B. (d), (e) and (f) 
C. (a), (c) and (d) 
D. (a), (c) and (e) 
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19. Consumers can ask anything regarding the date of manufacturing, MRP, etc, 
about the product that he intend to buy. 
Identify the consumer right highlighted in the above lines. 
A. Right to be informed 
B. Right to be assured 
C. Right to be heard 
D. Right to safety  
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20. Read the following statements carefully: 
Statement I: Cost of debt is lower than cost of equity for  a company. 
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