CUET 2026 Business Studies May 29 Shift 2 Question Paper- Download Answer Key and Solution PDF

Concept:

Management possesses characteristics of both art and science. It is considered a science because it has a systematic body of knowledge, universal principles, and cause-and-effect relationships. At the same time, it is regarded as an art because it requires personal skill, creativity, experience, innovation, and practical application of knowledge.

The nature of management is one of the most important conceptual topics in Business Studies and is directly based on NCERT explanations.

Step 1: Understanding management as a science.


Science refers to a systematic body of knowledge based on observation and experimentation. Management satisfies several features of science because:

It has organized principles and theories.
It develops through observation and experimentation.
Principles of management can be applied in different situations.
Management aims at establishing cause-and-effect relationships.


For example: \[ Better planning \Rightarrow Higher efficiency \]

Thus, management contains scientific elements.



Step 2: Understanding management as an art.


Art involves practical application of knowledge to achieve desired results. Management requires:

Creativity
Leadership ability
Communication skills
Decision-making ability
Personal judgment


Different managers may apply the same principle differently depending on the situation. Hence management also involves artistic qualities.



Step 3: Analyzing all options carefully.



Option (A) is incorrect because management does not ignore practical skills.
Option (B) is correct because management combines systematic knowledge and practical skill.
Option (C) is incorrect because management does have universal principles.
Option (D) is incorrect because management is not entirely trial and error.


Therefore, the correct answer is: \[ \boxed{Management involves systematic knowledge along with personal skill and creativity} \] Quick Tip: Always remember: \[ Science \Rightarrow Knowledge and Principles \] \[ Art \Rightarrow Skill and Practice \] Management combines both aspects together.

Concept:

Henri Fayol introduced fourteen principles of management to improve organizational efficiency. One of the most important principles is Unity of Command.

This principle states: \[ One employee \rightarrow One boss \]

According to this principle, an employee should receive instructions from only one superior to avoid confusion, conflict, and overlapping authority.

Step 1: Understanding the principle of Unity of Command.


When an employee receives orders from multiple superiors:

Confusion arises.
Discipline gets disturbed.
Employees may face conflicting instructions.
Responsibility becomes difficult to determine.


Therefore Fayol suggested that: \[ Each subordinate must report to only one superior \]



Step 2: Distinguishing from Unity of Direction.


Many students confuse Unity of Command with Unity of Direction.


Unity of Command: One employee should receive orders from one boss.
Unity of Direction: One plan and one head for similar activities.


Thus they are completely different principles.



Step 3: Analyzing all options.



Unity of Direction relates to one plan.
Scalar Chain refers to chain of authority.
Unity of Command refers to one boss for one employee.
Discipline refers to obedience and respect.


Hence the correct answer is: \[ \boxed{Unity of Command} \] Quick Tip: Remember: \[ Unity of Command = One Employee, One Boss \] \[ Unity of Direction = One Plan, One Head \]

Concept:

Financial markets are institutional arrangements where financial assets and securities are traded. Financial markets are broadly classified into:

Money Market
Capital Market


Money Market deals in short-term funds and securities with maturity period up to one year.

Step 1: Understanding Money Market.


Money Market is a market for:

Short-term borrowing
Short-term lending
Highly liquid financial instruments


Examples include: \[ Treasury Bills, Commercial Papers, Call Money \]

These instruments generally mature within: \[ 1 year \]



Step 2: Understanding Capital Market.


Capital Market deals in:

Long-term securities
Shares
Debentures
Bonds


Thus Capital Market is not the correct answer.



Step 3: Analyzing options carefully.



Capital Market deals with long-term funds.
Money Market deals with short-term funds.
Commodity Market deals with goods and commodities.
Foreign Exchange Market deals with currencies.


Therefore the correct answer is: \[ \boxed{Money Market} \] Quick Tip: Remember: \[ Money Market \Rightarrow Short-term funds \] \[ Capital Market \Rightarrow Long-term funds \]

Concept:

Controlling is an important managerial function that ensures organizational activities are performed according to planned standards.

The controlling process includes:

Setting standards
Measuring actual performance
Comparing actual performance with standards
Taking corrective action


Step 1: Understanding the meaning of controlling.


Managers establish performance standards in advance. After implementation:

Actual results are measured.
Deviations are identified.
Corrective measures are taken.


This ensures organizational goals are achieved efficiently.



Step 2: Understanding the need for corrective action.


If deviations are ignored:

Resources may be wasted.
Organizational objectives may not be achieved.
Operational inefficiencies may increase.


Therefore corrective action becomes essential.



Step 3: Analyzing options.



Planning determines future course of action.
Organising arranges resources.
Directing motivates employees.
Controlling measures and corrects deviations.


Hence: \[ \boxed{Controlling} \] Quick Tip: The controlling cycle is: \[ Standards \rightarrow Measurement \rightarrow Comparison \rightarrow Correction \]

Concept:

Functional Foremanship is a concept developed by F.W. Taylor under Scientific Management.

Taylor believed that supervision should be specialized so that each supervisor becomes an expert in a particular function.

Under this system: \[ One worker \rightarrow Multiple specialized supervisors \]

Step 1: Understanding Functional Foremanship.


Taylor divided factory activities into:

Planning Department
Production Department


Each department had specialized foremen.

Examples:

Route Clerk
Instruction Card Clerk
Repair Boss
Gang Boss


This improved efficiency and specialization.



Step 2: Understanding Scientific Management.


Scientific Management aims at:

Increasing efficiency
Reducing wastage
Improving productivity
Scientific selection of workers


Functional Foremanship was one of its key techniques.



Step 3: Analyzing options.



Henri Fayol gave administrative principles.
F.W. Taylor introduced Functional Foremanship.
Peter Drucker emphasized management by objectives.
Keith Davis contributed to organizational behavior.


Thus: \[ \boxed{F.W. Taylor} \] Quick Tip: Taylor is known as: \[ Father of Scientific Management \] Functional Foremanship is one of his most important concepts.

Concept:

SEBI stands for: \[ Securities and Exchange Board of India \]

It was established to regulate the securities market and protect investors from unfair trade practices.

Step 1: Understanding the objectives of SEBI.


Major objectives include:

Protecting investors
Regulating stock exchanges
Preventing fraudulent practices
Promoting fair trading




Step 2: Role of SEBI in financial markets.


SEBI ensures:

Transparency in trading
Fair disclosure of information
Prevention of insider trading
Investor education


This builds confidence in financial markets.



Step 3: Analyzing options.



Producers are not SEBI's primary concern.
Investors are directly protected by SEBI.
Wholesalers are unrelated to SEBI regulation.
Government employees are not the focus.


Hence: \[ \boxed{Investors} \] Quick Tip: Remember: \[ SEBI \Rightarrow Protect Investors + Regulate Securities Market \]

Concept:

The Consumer Protection Act provides several rights to consumers for protecting them from exploitation.

One of the most important rights is: \[ Right to Safety \]

This right protects consumers against hazardous goods and services.

Step 1: Understanding Right to Safety.


Consumers have the right to:

Protection from dangerous products
Protection from unsafe manufacturing
Safe usage of services


Examples include:

Defective electrical appliances
Expired medicines
Unsafe packaged food




Step 2: Distinguishing other consumer rights.



Right to Choose ensures availability of alternatives.
Right to Seek Redressal provides compensation.
Right to Information ensures correct product details.


Only Right to Safety deals with hazardous products.



Step 3: Final conclusion.


Therefore: \[ \boxed{Right to Safety} \] Quick Tip: Important Consumer Rights: Right to Safety Right to Information Right to Choose Right to Seek Redressal

Concept:

Organising is the managerial function concerned with arranging resources and activities systematically to achieve organizational objectives.

It includes:

Identifying activities
Grouping activities
Assigning duties
Delegating authority
Coordinating relationships


Step 1: Understanding organising.


After planning determines objectives, organizing ensures proper arrangement of resources.

Managers:

Divide work
Assign responsibilities
Establish authority relationships
Create departmental structure




Step 2: Importance of organising.


Organising:

Improves efficiency
Avoids duplication of work
Facilitates specialization
Ensures smooth functioning




Step 3: Analyzing options.



Staffing deals with recruitment.
Organising assigns duties and authority.
Planning decides future actions.
Coordination synchronizes activities.


Hence: \[ \boxed{Organising} \] Quick Tip: Sequence of managerial functions: \[ Planning \rightarrow Organising \rightarrow Staffing \rightarrow Directing \rightarrow Controlling \]

Concept:

Planning is deciding in advance what to do, how to do, when to do, and who will do it.

Features of planning include:

Futuristic
Continuous
Pervasive
Mental exercise
Decision-making process


Step 1: Understanding planning and risk.


Planning helps in:

Reducing uncertainty
Anticipating future situations
Improving preparedness


However: \[ Planning cannot completely eliminate risks \]

because business environments are dynamic and uncertain.



Step 2: Analyzing remaining statements.



Planning is futuristic because it deals with future events.
Planning involves choosing among alternatives.
Planning requires intellectual thinking and analysis.


All these are true features.



Step 3: Final conclusion.


The incorrect statement is: \[ \boxed{Planning eliminates all risks completely} \] Quick Tip: Planning reduces uncertainty but cannot eliminate it entirely because future business conditions always involve some unpredictability.

Concept:

Abraham Maslow proposed the Need Hierarchy Theory of motivation. According to this theory, human needs are arranged in a hierarchy from lower-level needs to higher-level needs.

The hierarchy is: \[ Physiological \rightarrow Safety \rightarrow Social \rightarrow Esteem \rightarrow Self-Actualization \]

Self-Actualization is the highest need.

Step 1: Understanding lower-level needs.


Lower-level needs include:

Physiological needs such as food and shelter.
Safety needs such as job security and protection.


These needs must generally be satisfied first.



Step 2: Understanding higher-level needs.


Higher-level needs include:

Social needs
Esteem needs
Self-Actualization needs


Self-Actualization refers to:

Realizing full potential
Creativity
Personal growth
Self-fulfillment




Step 3: Final conclusion.


The highest level in Maslow's hierarchy is: \[ \boxed{Self-Actualization Needs} \] Quick Tip: Maslow hierarchy order: \[ Physiological \rightarrow Safety \rightarrow Social \rightarrow Esteem \rightarrow Self-Actualization \] Always remember: \[ Self-Actualization = Highest Need \]