Class 12 Business Studies Official Sample Question Paper (2023-24) | Business Studies (BST) Class 12 - Commerce PDF Download

 Page 1


  
 
SAMPLE QUESTION PAPER 2023-24 
BUSINESS STUDIES (054) 
CLASS XII 
  Max Marks – 80                                                           Time allowed: 3 Hours             
 
 General instructions: 
1. This question paper contains 34 questions. 
2. Marks are indicated against each question. 
3. Answers should be brief and to the point. 
4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 
5. Answers to the questions carrying 4 marks may be about 150 words. 
6. Answers to the questions carrying 6 marks may be about 200 words. 
7. Attempt all parts of the questions together. 
 
1. 
The Board of directors of Medex Pharma Ltd. decided to issue debentures 
worth ?40 lakhs in order to finance a major Research and Development 
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at 
the same time it would increase the Earnings per share. 
 The reason that will justify the above situation is: 
a) Unfavourable financial leverage, as the financial risk will be higher. 
b) Unfavourable financial leverage, as return on investment is lower than the 
cost of debt. 
c) Favourable financial leverage as debt is easily available 
d) Favourable financial leverage, as return on investment is higher than cost 
of debt  
1 
Page 2


  
 
SAMPLE QUESTION PAPER 2023-24 
BUSINESS STUDIES (054) 
CLASS XII 
  Max Marks – 80                                                           Time allowed: 3 Hours             
 
 General instructions: 
1. This question paper contains 34 questions. 
2. Marks are indicated against each question. 
3. Answers should be brief and to the point. 
4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 
5. Answers to the questions carrying 4 marks may be about 150 words. 
6. Answers to the questions carrying 6 marks may be about 200 words. 
7. Attempt all parts of the questions together. 
 
1. 
The Board of directors of Medex Pharma Ltd. decided to issue debentures 
worth ?40 lakhs in order to finance a major Research and Development 
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at 
the same time it would increase the Earnings per share. 
 The reason that will justify the above situation is: 
a) Unfavourable financial leverage, as the financial risk will be higher. 
b) Unfavourable financial leverage, as return on investment is lower than the 
cost of debt. 
c) Favourable financial leverage as debt is easily available 
d) Favourable financial leverage, as return on investment is higher than cost 
of debt  
1 
2.  A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of 
dandruff in one squeeze'. The product related decision involved is-  
a) Branding          b) Product quality  
c) Packaging        d) Labelling 
1 
3. With the presence of women in the workforce, there has been a shift towards 
formal wear, increased demand of electronic gadgets and increase in demand 
of cosmetics. 
The related dimension of business environment referred in the above lines is: 
a) Technological environment.       b) Social environment 
c) Political environment.                  d) Economic environment  
1 
4. 
Name the function of marketing which is effective in bringing repeat sales 
from the customers and developing brand loyalty for a product. 
a) Standardization and grading  
b)  Promotion 
c) Customer support services   
d)  Packaging and labelling  
1 
   5. SEBI calls for information and issues a show cause notice to stock exchange 
and its officials seeking explanation and conducting audit and enquiry. Which 
function is SEBI performing? 
a) Regulatory function          b) Development function 
      c) Protective function             d) Both a) and c) 
 
 
1 
Page 3


  
 
SAMPLE QUESTION PAPER 2023-24 
BUSINESS STUDIES (054) 
CLASS XII 
  Max Marks – 80                                                           Time allowed: 3 Hours             
 
 General instructions: 
1. This question paper contains 34 questions. 
2. Marks are indicated against each question. 
3. Answers should be brief and to the point. 
4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 
5. Answers to the questions carrying 4 marks may be about 150 words. 
6. Answers to the questions carrying 6 marks may be about 200 words. 
7. Attempt all parts of the questions together. 
 
1. 
The Board of directors of Medex Pharma Ltd. decided to issue debentures 
worth ?40 lakhs in order to finance a major Research and Development 
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at 
the same time it would increase the Earnings per share. 
 The reason that will justify the above situation is: 
a) Unfavourable financial leverage, as the financial risk will be higher. 
b) Unfavourable financial leverage, as return on investment is lower than the 
cost of debt. 
c) Favourable financial leverage as debt is easily available 
d) Favourable financial leverage, as return on investment is higher than cost 
of debt  
1 
2.  A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of 
dandruff in one squeeze'. The product related decision involved is-  
a) Branding          b) Product quality  
c) Packaging        d) Labelling 
1 
3. With the presence of women in the workforce, there has been a shift towards 
formal wear, increased demand of electronic gadgets and increase in demand 
of cosmetics. 
The related dimension of business environment referred in the above lines is: 
a) Technological environment.       b) Social environment 
c) Political environment.                  d) Economic environment  
1 
4. 
Name the function of marketing which is effective in bringing repeat sales 
from the customers and developing brand loyalty for a product. 
a) Standardization and grading  
b)  Promotion 
c) Customer support services   
d)  Packaging and labelling  
1 
   5. SEBI calls for information and issues a show cause notice to stock exchange 
and its officials seeking explanation and conducting audit and enquiry. Which 
function is SEBI performing? 
a) Regulatory function          b) Development function 
      c) Protective function             d) Both a) and c) 
 
 
1 
6. 
  
Identify the point of significance of management illustrated in the picture. 
a) Management helps in achieving group goals 
b) Management helps in achieving personal objectives 
c) Management helps in development of society 
d) Management increases efficiency 
1 
7. The allocative function of Financial market helps in ________ 
a) Bringing transparency in trading procedure 
b) Earning higher rate of return to household sector 
c) Better functioning of depository 
d) Determining the prices of securities  
1 
8. IND Dyechem Ltd. is a chemical manufacturing company producing dyes and 
pigments both for domestic and international market. It has enjoyed a 
considerable market share but lately, it has been facing problems in terms of 
target sales and customer satisfaction. This is due to the reason that new 
entrants have emerged with better technology and competitive pricing. The 
Chairman of the company addressed this issue in the departmental meeting. 
The production head, Mr. Kamble, advised the Chairman to revamp the 
system and take immediate necessary actions to rectify the problem so that 
1 
Page 4


  
 
SAMPLE QUESTION PAPER 2023-24 
BUSINESS STUDIES (054) 
CLASS XII 
  Max Marks – 80                                                           Time allowed: 3 Hours             
 
 General instructions: 
1. This question paper contains 34 questions. 
2. Marks are indicated against each question. 
3. Answers should be brief and to the point. 
4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 
5. Answers to the questions carrying 4 marks may be about 150 words. 
6. Answers to the questions carrying 6 marks may be about 200 words. 
7. Attempt all parts of the questions together. 
 
1. 
The Board of directors of Medex Pharma Ltd. decided to issue debentures 
worth ?40 lakhs in order to finance a major Research and Development 
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at 
the same time it would increase the Earnings per share. 
 The reason that will justify the above situation is: 
a) Unfavourable financial leverage, as the financial risk will be higher. 
b) Unfavourable financial leverage, as return on investment is lower than the 
cost of debt. 
c) Favourable financial leverage as debt is easily available 
d) Favourable financial leverage, as return on investment is higher than cost 
of debt  
1 
2.  A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of 
dandruff in one squeeze'. The product related decision involved is-  
a) Branding          b) Product quality  
c) Packaging        d) Labelling 
1 
3. With the presence of women in the workforce, there has been a shift towards 
formal wear, increased demand of electronic gadgets and increase in demand 
of cosmetics. 
The related dimension of business environment referred in the above lines is: 
a) Technological environment.       b) Social environment 
c) Political environment.                  d) Economic environment  
1 
4. 
Name the function of marketing which is effective in bringing repeat sales 
from the customers and developing brand loyalty for a product. 
a) Standardization and grading  
b)  Promotion 
c) Customer support services   
d)  Packaging and labelling  
1 
   5. SEBI calls for information and issues a show cause notice to stock exchange 
and its officials seeking explanation and conducting audit and enquiry. Which 
function is SEBI performing? 
a) Regulatory function          b) Development function 
      c) Protective function             d) Both a) and c) 
 
 
1 
6. 
  
Identify the point of significance of management illustrated in the picture. 
a) Management helps in achieving group goals 
b) Management helps in achieving personal objectives 
c) Management helps in development of society 
d) Management increases efficiency 
1 
7. The allocative function of Financial market helps in ________ 
a) Bringing transparency in trading procedure 
b) Earning higher rate of return to household sector 
c) Better functioning of depository 
d) Determining the prices of securities  
1 
8. IND Dyechem Ltd. is a chemical manufacturing company producing dyes and 
pigments both for domestic and international market. It has enjoyed a 
considerable market share but lately, it has been facing problems in terms of 
target sales and customer satisfaction. This is due to the reason that new 
entrants have emerged with better technology and competitive pricing. The 
Chairman of the company addressed this issue in the departmental meeting. 
The production head, Mr. Kamble, advised the Chairman to revamp the 
system and take immediate necessary actions to rectify the problem so that 
1 
sales are achieved as per the plans. 
Identify the relevant function of management being discussed here. 
a) Organising     b) Staffing 
b) Controlling      d) Planning  
9. Choose the incorrect statement about pricing objectives as a factor affecting 
the price of a product. 
a) If a firm's objective is to maximize profits in the short run, it should charge 
maximum price for its products. 
b) If a firm's objective is to capture market share, it should keep low price of its 
product. 
c) If a firm wants to attain product quality leadership, it should charge lower 
prices. 
d) If a firm is facing problems in survival due to stiff competition, it may offer 
discount on its products. 
1 
10. Read the following statements: Assertion (A) and Reason(R). Choose the 
correct alternative from those given below: 
ASSERTION (A): Management is concerned with efficient use of resources. 
REASONING (R): For management both efficiency and effectiveness need to 
be balanced. 
Alternatives: 
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 
explanation of Assertion (A). 
 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the 
correct explanation of Assertion (A) 
 c) Assertion (A) is true but Reason (R) is False 
 d) Assertion (A) is False but Reason (R) is True 
1 
Page 5


  
 
SAMPLE QUESTION PAPER 2023-24 
BUSINESS STUDIES (054) 
CLASS XII 
  Max Marks – 80                                                           Time allowed: 3 Hours             
 
 General instructions: 
1. This question paper contains 34 questions. 
2. Marks are indicated against each question. 
3. Answers should be brief and to the point. 
4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 
5. Answers to the questions carrying 4 marks may be about 150 words. 
6. Answers to the questions carrying 6 marks may be about 200 words. 
7. Attempt all parts of the questions together. 
 
1. 
The Board of directors of Medex Pharma Ltd. decided to issue debentures 
worth ?40 lakhs in order to finance a major Research and Development 
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at 
the same time it would increase the Earnings per share. 
 The reason that will justify the above situation is: 
a) Unfavourable financial leverage, as the financial risk will be higher. 
b) Unfavourable financial leverage, as return on investment is lower than the 
cost of debt. 
c) Favourable financial leverage as debt is easily available 
d) Favourable financial leverage, as return on investment is higher than cost 
of debt  
1 
2.  A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of 
dandruff in one squeeze'. The product related decision involved is-  
a) Branding          b) Product quality  
c) Packaging        d) Labelling 
1 
3. With the presence of women in the workforce, there has been a shift towards 
formal wear, increased demand of electronic gadgets and increase in demand 
of cosmetics. 
The related dimension of business environment referred in the above lines is: 
a) Technological environment.       b) Social environment 
c) Political environment.                  d) Economic environment  
1 
4. 
Name the function of marketing which is effective in bringing repeat sales 
from the customers and developing brand loyalty for a product. 
a) Standardization and grading  
b)  Promotion 
c) Customer support services   
d)  Packaging and labelling  
1 
   5. SEBI calls for information and issues a show cause notice to stock exchange 
and its officials seeking explanation and conducting audit and enquiry. Which 
function is SEBI performing? 
a) Regulatory function          b) Development function 
      c) Protective function             d) Both a) and c) 
 
 
1 
6. 
  
Identify the point of significance of management illustrated in the picture. 
a) Management helps in achieving group goals 
b) Management helps in achieving personal objectives 
c) Management helps in development of society 
d) Management increases efficiency 
1 
7. The allocative function of Financial market helps in ________ 
a) Bringing transparency in trading procedure 
b) Earning higher rate of return to household sector 
c) Better functioning of depository 
d) Determining the prices of securities  
1 
8. IND Dyechem Ltd. is a chemical manufacturing company producing dyes and 
pigments both for domestic and international market. It has enjoyed a 
considerable market share but lately, it has been facing problems in terms of 
target sales and customer satisfaction. This is due to the reason that new 
entrants have emerged with better technology and competitive pricing. The 
Chairman of the company addressed this issue in the departmental meeting. 
The production head, Mr. Kamble, advised the Chairman to revamp the 
system and take immediate necessary actions to rectify the problem so that 
1 
sales are achieved as per the plans. 
Identify the relevant function of management being discussed here. 
a) Organising     b) Staffing 
b) Controlling      d) Planning  
9. Choose the incorrect statement about pricing objectives as a factor affecting 
the price of a product. 
a) If a firm's objective is to maximize profits in the short run, it should charge 
maximum price for its products. 
b) If a firm's objective is to capture market share, it should keep low price of its 
product. 
c) If a firm wants to attain product quality leadership, it should charge lower 
prices. 
d) If a firm is facing problems in survival due to stiff competition, it may offer 
discount on its products. 
1 
10. Read the following statements: Assertion (A) and Reason(R). Choose the 
correct alternative from those given below: 
ASSERTION (A): Management is concerned with efficient use of resources. 
REASONING (R): For management both efficiency and effectiveness need to 
be balanced. 
Alternatives: 
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 
explanation of Assertion (A). 
 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the 
correct explanation of Assertion (A) 
 c) Assertion (A) is true but Reason (R) is False 
 d) Assertion (A) is False but Reason (R) is True 
1 
11. Concentration of decision making functions at the apex of management 
hierarchy is called __________ 
a) Decentralisation.                  b) Delegation 
       c) Organisational structure.      d) Centralisation 
1 
12. Some employees have been assigned the job of measuring the output in an 
objective and reliable way. They are applying different techniques for 
achieving this aim. Some of these are personal-observation, sample-checking 
etc. They are also keeping the units of measurement same as that of the units 
in the standards. 
 Name the step of ‘Controlling process applicable in the above paragraph.  
 a) Analysing deviations 
b) Comparing actual performance with standards. 
 c) Establishing standards.  
d) Measurement of actual performance 
1 
13. 
 
 
 
 
 
 
 
 
 
 
 
Statement I: For products requiring long term storage like agricultural 
products, the warehouses are located near to the market. 
Statement II: Higher the level of inventory, higher will be the level of service to 
customers but the cost of carrying the inventory will also be high. 
Choose the correct option from the following: 
a) Statement I is true and II is false 
b) Statement II is true and I is false 
c) Both the statements are true 
d) Both the statements are false 
1