CBSE Business Studies Class 12 Sample Paper 4 Page 1

CBSE Sample Paper 4

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. A consumer can file a suit in_______, when the value of goods and service along with the
View Solution compensation claimed does not exceed ` 1 crore.
(a) State Commission (b) National Commission
(c) District Commission (d) Supreme Court

2. Which of the following is not a limitation of Planning?

View Solution (a) Basis of control (b) Costly
(c) Rigidity (d) Time consuming

3. ________is a joint programme between the educational institutes and the business firms.
View Solution (a) Apprenticeship programme

(b) Vestibule training

(c) Internship training
(d) None of these

4. Who among the following is not considered a consumer under the Consumer Protection Act,
View Solution 2019?
(a) Any user of goods when such use is made with the approval of the buyer.
(b) A person who avails of any service for a consideration which has been promised.
(c) A person who buys any goods for a consideration which has been paid.
(d) A person who avails of a service for a commercial purpose.

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 Page 2 Sample Paper 4 CBSE Business Studies Class 12

5. Management consists of a series of composite but separate functions, viz., planning, organising,
View Solution staffing and controlling. This highlight the following feature of management________.
(a) Pervasive (b) Goal-oriented
(c) Continuous (d) Multi-dimensional

6. With delegation, ______ is transferred from superior to subordinate but ______ remains
View Solution with the superior only.
(a) Accountability; Responsibility
(b) Responsibility; Accountability
(c) Authority; Accountability
(d) Responsibility; Authority

7. For the following two statements choose the correct option:

View Solution Statement I: A consumer should look for ISI mark on electrical goods.
Statement II: Consumer protection is not important for businessmen.
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

8. Which of the following is not an advantage of delegation?

View Solution (a) Employee’s development

(b) Effective management

(c) Better control
(d) Basis of management hierarchy

9. _______is the last step in planning process.

View Solution (a) Follow up action

(b) Setting up objectives

(c) Taking corrective action
(d) Establishing reporting relationships

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 CBSE Business Studies Class 12 Sample Paper 4 Page 3

10. JWS Steel Limited is a steel manufacturing company located in India. It is enjoying buoyant
View Solution demand for its products as economic growth is about 9 to 10 percent and demand for steel is
growing. The company has decided to set up a new plant to cash on the increase demand. It is
estimated that it will require about ` 5,000 crores to set up and about ` 1,000 crores of working
capital to start the new plant.
Identify the decision taken by the financial manager in the above case?
(a) Financial decision (b) Investment decision
(c) Dividend decision (d) Capital structure decision

11. _______is not an advantage of packaging of a product.

View Solution (a) Facilitates use of product

(b) Helps in promotion of product

(c) Status symbol
(d) Prevents from spoilage, pilferage, damage, etc.

12. Match the techniques of scientific management in Column I with their objectives in Column II.
View Solution
Column I Column II
A Method study (i) Elimination of
unnecessary movements
B Motion study (ii) Determination of
standard time for a well
defined job
C Time study (iii) Find out one best way
of doing the job
(a) (iii), (ii), (i) (b) (iii), (i), (ii)
(c) (ii), (iii), (i) (d) (i), (ii), (iii)

13. Which is the incorrect statement among the following?

View Solution (a) Delegation means abdication.

(b) Delegation empowers an employee to act for his superior.

(c) Delegation helps in expansion and growth of organisation.
(d) Delegation is a pre-requisite to the efficient functioning of an organisation.

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 Page 4 Sample Paper 4 CBSE Business Studies Class 12

14. Which of the following standardisation marks is used for gold jewellery?
View Solution (a) FPO (b) ISI
(c) AGMARK (d) Hallmark

15. Which of the following is not an advantage of functional organisational structure?

View Solution (a) Ease in fixation of responsibility

(b) Departmental control and coordination

(c) Ease in training of employees
(d) Occupational specialisation

16. Even after the best efforts of the employees, the standards could not be achieved. An effective
View Solution control system of management found that they needed to be re-framed as they were unrealistic.
Which point of importance of control is highlighted?
(a) Controlling helps in judging accuracy of standards.
(b) Controlling helps in making efficient use of resources.
(c) Controlling helps in accomplishing organisational goals.
(d) Controlling helps in ensuring order and discipline.

17. Computronics Informatics Limited issued prospectus for the subscription of its shares for ` 800
View Solution crores in October 2022. The issue was oversubscribed by 10 times. The company issued shares
to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some
misleading statement about the management of the company in it. SEBI imposed a penalty of
` 15 crores and banned its two executive directors from dealing in securities market for 3 years.
Which function is performed by SEBI in the above case?
(a) Protective function (b) Development function
(c) Both (b) and (c) (d) Protective function

18. Prakash has achieved his monthly sales target well in advance. A letter of appreciation was
View Solution given to him by the company. His name and photograph was also exhibited on the notice board.
Which type of incentive is given to Prakash by the Company?
(a) Employee recognition programme
(b) Employee participation
(c) Employee empowerment
(d) Career advance opportunity

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 CBSE Business Studies Class 12 Sample Paper 4 Page 5

19. Identify the characteristic of profession being highlighted in the picture given below.
View Solution

(a) Restricted entry

(b) Professional association
(c) Ethical code of conduct
(d) Well defined body of knowledge

20. Arrange the following steps in the process of Planning in the correct sequence:
View Solution (i) Developing premises
(ii) Identifying alternative courses of action
(iii) Setting objectives
(iv) Evaluating alternative courses
Choose the correct option:
(a) (ii), (iii), (i), (iv) (b) (iii), (i), (iv), (ii)
(c) (iii), (i), (ii), (iv) (d) (iv), (ii), (i), (iii)

21. Puneet, the finance manager of Sahara Ltd., is involved in preparation of the financial blueprint
View Solution for future operations. He is directed by the seniors to ensure that enough funds are available
at right time. Because if surplus/ excess funds are available, it will add to the cost and may
encourage wasteful expenditure. On the other hand, if funds are short, then firms will not be
able to honour their commitments and carry out plans.
He is taking into consideration the growth, performance, investments and requirement of funds
for a given period. He is working on both short-term and long-term plans. After completing the
process of estimating the funds requirement of the company, he specifies the source of funds
also. Last year also, he got lot of appreciation for his successful effort.
(a) In which process, Puneet is currently involved?
(b) Is the above concept equivalent to or substitute for financial management? Why?
(c) Mention two importance of the concept in which Puneet is involved.

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 Page 6 Sample Paper 4 CBSE Business Studies Class 12

22. Ms. Payal Batra is the General Manager of Mehar Textiles. With a views to run her business
View Solution in a careful manner, she divided all activities into seven departments. These departments were
Marketing, Purchase, Production, Personnel, Finance, Accounting and Sales. Later on, she
realised that accounting and sales department can be merged into finance department. Thus,
all business activities were divided into five departments. Ms. Payal is now thinking on the lines
as to which are the departments, out of these five that will have significant role in the success
of the business. After complete analysis, he concluded that marketing, production and finance
were the department on which success of the business depends. It meant that even after some
shortcoming occurred in the departments of purchase and personnel, it would not affect much
the success of the business. Thereafter, Ms. Payal determined deviation tolerance limits of these
three main departments. It meant that if deviation of these departments remains within this
tolerance limit, then it will be looked after by the concerned manager. However, in case the
deviation is beyond this limit then the same will be brought to the notice of General Manager.
(a) Identify two functions of the management referred in the above paragraph.
(b) Describe the relevant concepts of identified functions.

23. A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a science
View Solution student of Progressive School to take a loan from State Bank of India to experiment and develop
cars to be powered by fuel produced from garbage. He developed such a car and exhibited it
in the Science Fair organised by Directorate of Education. He was awarded first prize for his
invention. Identify and briefly explain two dimensions of business environment discussed in the
above case.
OR
‘In the present day market, the retailers have direct link with the suppliers who replenish
their stocks as and when needed and at the same time the manufacturers follow flexible
manufacturing system.’ This has been possible due to the changes in one of the dimensions of
business environment.
Identify and explain the dimension.

24. Explain any three elements of process of communication other than sender and receiver.
View Solution OR
What is meant by recruitment of employees?

25. Capital budgeting decisions are capable of changing the financial fortunes of a concern. Justify
View Solution giving reasons.

26. ‘It is balancing and keeping together the team by ensuring suitable allocation of tasks to the
View Solution members and seeing that the tasks are performed with harmony among the members.’ Which
concept is being referred to? Discuss its features.
OR
Explain the Fayol’s management principle of ‘Initiative’ and ‘Stability of Personnel’.

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 CBSE Business Studies Class 12 Sample Paper 4 Page 7

27. Agra Leather Works (ALW), after a lot of research work, developed a synthetic substitute for
View Solution leather. By doing this, it not only took into account the sentiments of people but also ensured
that animals are not hurt. It launched a complete new range of bags in the market. It named
its bags ‘Pure-Sure’ which clearly conveyed to the consumers the message- ‘Pure for Sure’. To
enable the consumers identify its bags, even from a distance, it covered them in a specially
designed translucent covers that would not only protect it from the dust but will also attract
the consumers.
(a) Identify and briefly explain the elements of Product mix discussed in the above case, by
quoting the relevant lines.
(b) Explain the marketing philosophy followed by ALW.

28. “If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by
View Solution many”. How?
OR
Explain the elements of delegation.

29. VAGA Edtech Limited is a unicorn in the filed of online education. It has a share capital of
View Solution ` 12 crore at the face value of ` 100 each. Company is considering a major expansion of its
production facilities and wants to raise ` 2 crore. The chief financial officer (CFO) the company
has recommended that the company can raise funds of the same amount by issuing 10 %
debentures. Given that earning per share of the company after expansion is ` 21 and tax rate
is 30%, did CFO give a justified recommendation? Show the working.

30. Mr. Lalit, the Marketing Manager, spends a lot of time in planning for the long-term goals of
View Solution his department as he has given complete autonomy to its salesmen to make their own decisions
while they are in the field?
(a) Identify and briefly explain the style of leadership displayed by Mr. Lalit.
(b) Also, state any three benefits of the leadership style identified in part (a).

31. Briefly discuss the process of that function of Management which ensures the conformity of
View Solution plans according to the standards laid down.
OR
Is planning actually worth the huge costs involved? Explain.

32. How would you argue that success of a business enterprise is significantly influenced by its
View Solution environment?
OR
In what ways do company respond to various changes taking place in business environment?

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 Page 8 Sample Paper 4 CBSE Business Studies Class 12

33. Ms. Varsha Kanodia intends to start an enterprise that produces chocolates. Initially, in order
View Solution to assess the taste and preferences of the people about the chocolates, she used social media and
online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses, opportunities
and threats) analysis of her enterprise to devise a strategy that will give her an edge over the
competitors. Based on her analysis of the market, she decided to launch sesame and jaggery
based chocolates under the brand name ‘Desi Delight’. She has decided to fix up the price of
chocolates relatively at lower level in the beginning and later on as the demand picks up she
may revise the prices.
(a) Identify and give the meanings of the elements of marketing mix being taken into
consideration by Ms. Varsha.
(b) Explain briefly the functions of marketing highlighted here.

34. Lavanya, after acquiring a degree in Hotel Management and Business Administation took over
View Solution her family food processing company of manufacturing pickles, jams and squashes. The business
was established by her great grandmother and was doing reasonably well. However the fixed
operating costs of the business were high and the cash flow position was weak. She wanted
to undertake modernisation of the existing business to introduce the latest manufacturing
processes and diversify into the market of chocolates and candies. She was very enthusiastic and
approached a finance consultant, who told her that approximately Z 50 lakh would be required
for undertaking the modernization and expansion programme. He also informed her that the
stock market was going through a bullish phase.
(a) Keeping the above considerations in mind, name the source of finance Lavanya should
not choose for financing the modernization and expansion of her food processing business.
Give two reasons in support of your answer.
(b) Explain any two other factors, apart from those stated in the above situation, which
Lavanya should keep in mind while taking this decision.

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