CBSE Business Studies Class 12 Sample Paper 5 Page 1

CBSE Sample Paper 5

Class XII 2022-23
Business Studies
Time: 3 Hours Max. Marks: 80
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. Rashmi saw ‘Buy one get one free’ printed on the label of the package of a mosquito repellant.
View Solution The function which labelling is performing here is:
(a) Promotes the product
(b) Describes the product and specifies its content
(c) Gives information to consumer
(d) All of these

2. On the introduction of ‘Goods and Services Tax Act’, experts in the field of business started
View Solution analysing and forecasting its impact on various sectors and industries. Vishal, an established
businessman, attended a few seminars and conferences organized by such experts to familiarize
himself with this information. He wanted to use these forecasts to reduce the uncertainty in
making decisions for the future in his business.
Name the step in the planning process that is being discussed in the above paragraph.
(a) Follow up action (b) Developing premises
(c) Setting objectives (d) Selection of alternative

3. The managers at ______level of management are responsible for the welfare and survival of
View Solution an organisation.
(a) Middle (b) Top
(c) Lower (d) All of these

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 Page 2 Sample Paper 5 CBSE Business Studies Class 12

4. Match the marketing philosophies in Column I with their main focus in Column II.
View Solution
Column I Column II
A. Product concept (i) Production on a
large scale
B. Production concept (ii) Enhancing quality
of product
C. Marketing concept (iii) C u s t o m e r
satisfaction
(a) (ii), (i), (iii) (b) (i), (ii), (iii)
(c) (ii), (iii), (i) (d) (iii), (ii), (i)

5. The requirement of working capital will be more for a business concern manufacturing:
View Solution (a) Coolers (b) Bread
(c) Neither (a) nor (b) (d) Both (a) and (b)

6. The functions of management complementary to each other are:

View Solution (a) Directing and Controlling

(b) Planning and Organising

(c) Organising and Staffing
(d) Controlling and Planning

7. Identify the responsibility of consumers being highlighted in the picture given below.
View Solution

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 CBSE Business Studies Class 12 Sample Paper 5 Page 3

(a) Ask for a cash memo on purchase of goods or services.

(b) Be aware about various goods and services available in the market so that an intelligent
and wise choice can be made.
(c) Learn about the risks associated with products and services, follow manufacturer’s
instructions and use the products safely.
(d) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark
on electrical goods, FPO mark on food products, Hallmark on jewellery, etc.

8. Arrange the following steps in the process of controlling in the correct sequence:
View Solution (i) Measurement of Actual Performance
(ii) Analysing Deviations
(iii) Comparing Actual Performance with Standards
(iv) Setting Performance Standards
Choose the correct option:
(a) (iv), (i), (iii), (ii) (b) (i), (ii), (iv), (iii)
(c) (ii), (iii), (i), (iv) (d) (iii), (ii), (i), (iv)

9. A manager applies the existing theoretical knowledge in his own unique manner. This reflects
View Solution that management is:
(a) An Art (b) A Science
(c) Pervasive (d) Universally applicable

10. A company dealing in apparels has decided to clear its stock. It has a huge pile of unsold stock
View Solution in all its branches across the country. It has decided to give discount on its products. It even has
decided to go for various fashion shows in different colleges. They also have decided to sponsor
a few events.
Identify the marketing management philosophy highlighted above.
(a) Production concept (b) Product concept
(c) Selling concept (d) Marketing concept

11. _____is a factor affecting the capital structure of a company.

View Solution (a) Control consideration (b) Cash flow position
(c) Flexibility (d) All of these

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 Page 4 Sample Paper 5 CBSE Business Studies Class 12

12. Which type of recruitment gives the management a wider choice while selecting the people for
View Solution employment?
(a) Internal recruitment
(b) External recruitment
(c) Recruitment through labour contractor
(d) None of these

13. Choose the function of management responsible for motivating employees and giving instructing
View Solution to them to perform the tasks assigned to them.
(a) Staffing (b) Directing
(c) Planning (d) Controlling

14. The forces relating to scientific improvements and innovations which provide new ways, methods
View Solution and techniques of producing goods and services and operating a business is:
(a) Internal environment (b) Social environment
(c) Micro environment (d) Technological environment

15. Which of the following is a factor affecting dividend decision?

View Solution (a) Stability of earnings (b) Cash flow position
(c) Contractual constraints (d) All of these

16. _______is the process of converting a message into communication symbols such as words,
View Solution pictures, gestures etc. by the sender for transmission.
(a) Decoding (b) Encoding
(c) Media (d) Receiver

17. Which of the following is the primary aim of financial management?

View Solution (a) Link present with future

(b) Optimum utilisation of resources

(c) Wealth maximisation
(d) Ensures availability of funds wherever required

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 CBSE Business Studies Class 12 Sample Paper 5 Page 5

18. Ganesh bought a packet of chips from a local shopkeeper and found that the ingredients given
View Solution on the label were not legible. He complained about it to the company. The company sent a
written apology stating that they will make sure that existing packets are withdrawn from the
market and new packets with legible labels are soon made available.
Which consumer right is being exercised by Ganesh?
(a) Right to safety (b) Right to choose
(c) Right to be heard (d) None of these

19. GVS Garment Company suspected that their two employees were robbing it. It hired investigators
View Solution who advised the firm to install a software program that could secretly log every single stroke
of the suspects computer keys and send an encrypted e-mail report back to them. Investigators
revealed that the two employees were deleting orders from the corporate books after processing
them and pocketing the revenues. The programme picked up on their plans to steal a large
shipment of goods late one night. When the suspects entered, they were arrested and charged
with embezzlement.
State the importance of the function of ‘Controlling’ highlighted in the above case.
(a) Controlling judges accuracy of standards.
(b) Controlling ensures order and discipline.
(c) Controlling accomplishes organisational goals.
(d) Controlling improves employees’ morale.

20. For the following two statements choose the correct option:
View Solution Statement I: Accountability can be delegated.
Statement II: Responsibility can be delegated completely.
Choose the correct option from the options given below:
(a) Both the statements are false
(b) Statement II is true and I is false
(c) Both the statements are true
(d) Statement I is true and II is false

21. Rajesh is finance manager of Rajasthan Food Products He is in need of finance to expand
View Solution the business. He is looking into different sources of funds available. After doing the cost and
risk analysis, he found debt as the best option but as the company has to pay huge insurance
premium for the plant and machinery and lease for the building, the decision was taken to raise
funds through equity.
Identify and explain the factor which affected this decision.

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 Page 6 Sample Paper 5 CBSE Business Studies Class 12

22. Dominos offered ‘Vrat Special Menu’ during Navratras to attract the Indian customers with
View Solution vegetarian pizza made of water-chestnut flour (singhada atta), and white millet flour (Samak
ke chawal ka atta). It was topped with fresh mozzarella cheese with rock salt, tomatoes, paneer
and crunchy sabudana. The tomato sauce was made without onions and garlic and used rock
salt rather than common salt. State and explain the feature of management which is highlighted
in the above case.

23. Differentiate between Functional and Divisional Structure on the basis of:
View Solution (a) Formation
(b) Responsibility
(c) Cost involved
OR
State the meaning of essential elements of delegation.

24. How does management help in the development of society?

View Solution OR
Give any three examples in support of the statement that ‘Business environment is dynamic’.

25. What do you mean by Laissez-faire style of leadership? Give two advantages and disadvantages
View Solution of Laissez-faire style of leadership. Also suggest the situations where it is suitable.
OR
What is meant by delegation? State the importance of delegation in an organisation.

26. ‘Planning and Controlling are inseparable twins of management.’ How?

View Solution OR
“If you try to control everything, you may end up in controlling nothing”. Comment.

27. You have been appointed as a Brand Manager of Ford Motors. The Company is to introduce
View Solution a compact small car in the Indian Market. The name of the car is yet to be decided. You have
been asked to chair a brainstorming session. Before the suggestions come forward, you have
to briefly explain the participants as to what constitutes a good brand name with the help of
suitable examples.

28. How can the company satisfy social and esteem needs of its employees?
View Solution

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 CBSE Business Studies Class 12 Sample Paper 5 Page 7

29. Bhushan Limited is in the business of manufacturing and exporting ready-made garments It
View Solution has a share capital of ` 90 lacs at the face value of ` 100 each. Company is considering a major
expansion of its production facilities and wants to raise ` 50 lacs. The finance manager of the
company Mr. Rathi has recommended that the company can raise funds of the same amount
by issuing 8 % debentures. Given that earning per share of the company after expansion is ` 14
and tax rate is 30%, did Mr. Rathi give a justified recommendation? Show the working.

30. Mr. Agrawala bought a branded shaving razor from a Departmental Store and took the cash
View Solution memo of ` 400 which he had paid to them. Later on, he found that the MRP of the perfume
was ` 370 only, but the shopkeeper had put a sticker of ` 400 on the original price.
(a) Do you think that the consumer right is violated here? If yes, then name the right and
explain it.
(b) State any two responsibilities of a consumer other than that referred here.

31. Explain the factors determining the choice of channel of distribution.

View Solution OR
‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.

32. “Coordination is not a separate function of management; it is the very essence of managements.”
View Solution Clarify.
OR
Explain the following principles of management:
(a) Scalar chain
(b) Subordination of individual interest to general interest

33. Blue Heavens Private Limited purchased a new hi-tech machine from Germany for manufacturing
View Solution high quality auto components in a cost effective manner. But during the production process,
the manager observed that the quality of production was not as per standard. On investigation
it was found that there was lack of knowledge amongst the employees of using these hi-tech
machines. So, frequent visit of engineers was required from Germany. This resulted in high
overhead charges.
Suggest what can be done to develop the skills and abilities of employees for producing
high quality products by using these hi-tech machines. Also state how the employees or the
organization will benefit from your suggestion.

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 Page 8 Sample Paper 5 CBSE Business Studies Class 12

34. Amit Sports Ltd. was in the business of manufacturing treadmills and had a monopoly in the
View Solution market. The business was doing very well and the company was consistently able to meet its
objective of 20% increase in sales year after year. Encouraged by the good track record, Mr.
Akhil, the Managing Director of the company, kept an ambitious target of 30% increase in
sales for the next year. The same year, two competitors entered the market and the company
could not achieve its targets. Identify and explain the limitations of one of the functions of
management because of which the company was not able to meet its targets.

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