The CBSE conducted the Class 12 Business Studies Board Exam on February 22, 2025, from 10:30 AM to 1:30 PM. The Business Studies theory paper has 80 marks, while 20 marks are allocated for the project work.
The question paper contains 20% MCQ-based questions, 40% competency-based questions, and 40% short and long answer type questions.
CBSE Class 12 Business Studies 66-4-1 Question Paper and Detailed Solutions PDF is available for download here.
CBSE Class 12 2025 Business Studies 66-4-1 Question Paper with Solution PDF
| CBSE Class 12 Business Studies Question Paper With Answer Key | Download | Check Solutions |
A multinational sweets and snacks company had been into catering business for the last many years. To add to its prospects and to grow in the long run, it wants to increase its sales volume, the number of products and capital investment.
The organisational objective of management it seeks to achieve is :
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With respect to levels of management choose the \underline{incorrect statement from the following:
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‘Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable’.
The above statement is related to one of the steps of organising process. Identify the step from the following:
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The statement refers to clarity of hierarchy — i.e., who reports to whom and who is authorized to direct whom. This is a classic feature of the "Establishing authority and reporting relationship" step in the organizing function of management.
Let’s break down each step of organizing:
- (A) Identification and division of work: Means splitting work into smaller tasks.
- (B) Departmentalisation: Grouping similar jobs into departments.
- (C) Assignment of duties: Assigning tasks to employees.
- (D) Establishing authority and reporting relationship: Creating formal structure by defining lines of authority, responsibility, and communication.
The key phrase in the question is “who he has to take orders from and to whom he is accountable,” which points clearly to step (D).
Final Answer: (D) Establishing authority and reporting relationship
Quick Tip: Organising includes defining hierarchy—who reports to whom. That’s the authority and reporting relationship.
______ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action.
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Read the following statements Assertion (A) and Reason (R). Choose the correct option from the given options.
Assertion (A) : Amount of Earnings is a major determinant of the decision about dividend.
Reason (R) : Dividends are paid out of current and past earnings.
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‘It is a process that allocates or directs funds available for investment into their most productive instrument opportunity’.
This is known as :
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Which of the following is NOT a feature of ‘Directing’ function of management?
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Which of the following is an advantage of Informal organisation?
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‘Marbury biscuits’ launched its new range of oat cookies in three varieties. They decided to distribute free samples of their biscuits in schools as a part of their promotional campaign.
Identify the tool of promotion used by ‘Marbury Biscuits’:
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______ is the process by which a manager synchronises the activities of different departments.
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Match the functions of Securities and Exchange Board of India given in Column-I with their headings given in Column-II :
Column-I & Function & Column-II
A. & Training of intermediaries of securities markets & (i) Regulatory function
B. & Regulation of takeover bids by companies & (ii) Protective function
C. & Controlling insider trading and imposing penalties for such practices & (iii) Development function
Choose the correct alternative :
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- Training of intermediaries is a development function — it improves the efficiency and effectiveness of market operations.
- Regulation of takeover bids is part of regulatory function — it ensures fairness in acquisition of companies.
- Controlling insider trading is a protective function — it protects investors and ensures market transparency.
So the correct match is:
A — (iii), B — (i), C — (ii)
Final Answer: (C) A(iii); B(i); C(ii)
Quick Tip: SEBI protects, regulates, and develops — remember these three pillars of its functioning.
Lyka Ltd. launched its new range of herbal shampoos at the beginning of the year. As per legal framework, Lyka Ltd. provided the name and address of the manufacturer, the weight, manufacturing date, expiry date, maximum retail price etc. on the package and label of the herbal shampoo.
The consumer right highlighted above is :
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Statement – I : Business Environment is dynamic as it differs from country to country.
Statement – II : Business Environment is largely uncertain as it is very difficult to predict future happenings.
Choose the correct option from the following :
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Which of the following is NOT a feature of demonetisation ?
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The dimension of business environment reflected in the above para is:
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The appropriate grievance redressal machinery where Payal can file a complaint is:
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______ is the process of holding securities in electronic form.
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The point of importance of Business Environment highlighted above is :
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Statement – I : That part of a brand which can be spoken is called a brand name.
Statement – II : That part of the brand which is given legal protection is called Trademark.
Choose the correct option from the following :
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The picture given below is the package of a perfume bottle:
Identify the level of packaging of the box shown above:
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(a) Identify and state the nature of management discussed in the above case.
(b) Quoting lines from the above para, state any two features of nature of management identified in (a) above.
(b) Features: "Skillful and personal application of acquired knowledge" — indicates that each individual (Aman, Ashish, Ashi) used their creative methods to teach. "Varies from individual to individual in achieving desired results" — each person used a unique method to achieve the goal of educating slum dwellers.
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(a) Explain the following as factors affecting 'Financing Decision':
(i) Fixed operating costs
(ii) Cash flow position of the company
OR
(b) State any three points of difference between 'Primary Market' and 'Secondary Market'.
(a)
(i) Fixed Operating Costs: Companies with high fixed operating costs (like rent, salaries, etc.) face high business risk. They generally avoid using debt as a source of finance because interest adds to financial burden.
(ii) Cash Flow Position: If a company has a strong cash flow position (steady and predictable inflow of cash), it can afford to take loans and pay interest on time. Hence, it may opt for debt financing. Poor cash flow discourages debt.
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(a) Identify the concept discussed above which would help the employees to do the job in a better way using Artificial Intelligence Technology.
(b) State any five benefits of the concept identified in (a) above to the organisation.
(a) Training and Development
(b) Benefits: Improves employee efficiency Prepares employees for future roles Reduces the need for close supervision Improves job satisfaction and morale Helps the organisation adapt to technological changes
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(a) The concept discussed is Training and Development. It refers to a planned effort by an organisation to facilitate employees' learning of job-related competencies. In this case, the company is preparing employees to work with Artificial Intelligence by upgrading their skills.
(b) The five major benefits of training and development are:
Improves employee efficiency: Trained employees perform better and make fewer mistakes.
Prepares for future roles: It helps in succession planning and makes employees ready for higher responsibilities.
Reduces need for supervision: Well-trained employees require less supervision as they are confident in their work.
Improves job satisfaction: Employees feel more valued and secure when they are given training opportunities.
Supports change management: It helps organisations stay competitive by adapting to new technologies and business environments.
Final Answer: Training and Development
Quick Tip: Training is a short-term process focusing on current job needs; development is a long-term investment in employee potential.
(a) ‘Planning and controlling are inseparable twins of management’. Explain with the help of any three points.
OR
(b) Explain ‘Critical point control’ and ‘Management by exception’ as discussed in the controlling process.
(a) Planning provides the basis of control: Without objectives set in planning, controlling has no benchmarks. Controlling ensures that the actual performance conforms to plans. Both are forward and backward looking — planning is futuristic, controlling is retrospective but used for future correction.
(b) Critical point control: Focuses control efforts on key result areas which are most important. \textbf{Management by exception:} Managers deal only with significant deviations; minor issues are left to subordinates.
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(a) State any four features of directing function of management.
OR
(b) Explain the following ‘Semantic barriers’ to communication :
(i) Technical jargon
(ii) Body language and gesture decoding
(a) Directing initiates action. Directing takes place at every level of management. Directing is a continuous process. Directing flows from top to bottom.
(b) Technical Jargon: The use of technical or complex words can confuse the receiver if they lack domain-specific knowledge. \textbf{Body Language and Gesture Decoding:} If gestures or expressions are misinterpreted, the intended message may be misunderstood.
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(a) Explain the following steps of the selection process :
(i) Selection Tests
(ii) Employment Interview
OR
(b) State any four points of importance of ‘Staffing’ function of management.
(a) Selection Tests: Assess a candidate's skills, aptitude, personality, and intelligence. \textbf{Employment Interview:} A formal interaction that helps assess suitability of the candidate.
(b) Helps in discovering and obtaining competent personnel. Makes optimum utilisation of human resources. Improves performance through right placements. Ensures continuous survival and growth of the enterprise.
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(a) Identify and explain the incentives given by Shanta Enterprises to its employees.
(b) State the needs of the employees being met by such incentives as per Maslow’s Need Hierarchy Theory.
(a) Financial Incentive: Permanent employment offered to Arvind and Yogesh reflects job security, which is a monetary-based incentive.
Non-Financial Incentive: Awarding Ekta with "Best Employee of the Year" is a recognition-based incentive, motivating through appreciation.
(b) Job Security: Satisfies safety needs in Maslow’s hierarchy. \textbf{Recognition and Award:} Satisfies esteem needs by valuing an individual's contribution and building self-worth.
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Explain the following factors affecting the working capital requirements of a company :
(a) Level of competition
(b) Inflation
(a) State two responsibilities discharged by Nishi, as a consumer, in the above case.
(b) State any two reliefs which can be granted to Nishi, if the consumer court is satisfied with the genuineness of the complaint.
(a) Responsibility to be aware and Responsibility to seek redressal
(b) Replacement of product and Compensation for loss or injury
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Kaysons Ltd. was a reputed company manufacturing automotive parts for electric vehicles. As the demand for electric vehicles grew, Kaysons Ltd. needed more capital to keep up with the demand for automotive parts. Atul, the Finance Manager of Kaysons Ltd., suggested that the company should raise funds through a public issue of shares as the stock market was bullish. The Chief Executive Officer fully understood that this process of raising funds would not only reduce the management’s holding in the company but would also require considerable expenditure. Even then he agreed with the Finance Manager and the public issue of shares was made complying with the guidelines of Securities and Exchange Board of India.
Identify and state any four factors affecting choice of capital structure being discussed above.
Trading on equity, Cost of raising funds, Stock market conditions, Regulatory framework
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(a) Explain the following types of plans :
(i) Strategy
(ii) Method
(iii) Budget
OR
(b) Explain the following limitations of planning function of management :
(i) Planning may not work in a dynamic environment.
(ii) Planning leads to rigidity.
(iii) Planning is time consuming.
(a) Strategy, Method, Budget
(b) Limitations include lack of flexibility, rigidity, and time consumption
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The above case highlights the use of Scientific principles and techniques by ‘Coffee Bean’. Explain any one such principle and two techniques.
Principle: Science, not rule of thumb
Techniques: Standardization and training
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(a) Explain the following functions of marketing:
1. Marketing Planning
2. Branding
3. Pricing
OR
(b) Explain Advertising, Sales Promotion and Public Relations as elements of promotion mix.
Preeti started her own cooking channel on YouTube Mood Art. As her subscribers increased, she was not in a position to manage everything on her own. She hired Rahul and Riya to help her with filming, editing, lighting and content research. She granted authority to them to operate within prescribed limits. She was thus, able to use her time on high priority activities like developing new recipes and content development etc. As a result, Rahul and Riya were given opportunities to develop and exercise initiative. Preeti was now able to focus on objectives and meet the target of achieving a subscriber base of one million in six months.
(a) Identify the concept of management used by Preeti to focus on objectives of her business and meet her targets.
(b) Explain any five points of importance of the concept identified in (a) above.
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