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Published on: 25/10/2025
Download CBSE Class 12th Standard CBSE Business Studies question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Business Studies
Questions + Answers key
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1.
_____ ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it.
Span of management
Divisional structure
Functional structure
Hierarchy of authority
2.
"While performing the organising function, jobs are allocated to the members of each department in accordance with their skills and competencies." Identify the step in the organising function being discussed above.
Identification and division of work
Departmentalisation
Assignment of duties
Establishment of reporting relationships
3.
The type of organisational structure in which jobs of similar nature are grouped together on the basis of functions to form departments is called
functional structure
divisional structure
informal structure
grouped structure
4.
Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organisation structure of Aarohan Ltd?
It may lead to increase in cost
Managers may gain power and assert independence and ignore organisation interests
It ensures that different functions get due attention do not get training for top management
Heads do not get training for top management positions
5.
'Compro Solutions offer IT services to chents across the country. During Covid-19, to accommodate changes taking place in the business environment, it suitably modified its organisation structure in a way that work from home became the new way of working for all employees bringing cost benefits and flexibility in the organisation. The point of importance of organising discussed above is
Benefits of specialisation
Adaptation to change
Development of personnel
Clarity in working relationships
6.
A sanitizer manufacturing company wants to become a market leader. For this purpose the manager follows an activity with certain logical steps. The first step suggested by him is to increase profits by at least 30% in the next quarter. What will be the last step of the activity being followed by the manager?
Follow-up action
Identifying alternative course of action
Setting objectives
Evaluating alternative courses of action
7.
"Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisation's interest," The limitation of planning being referred to in the above statement is_____.
planning does not guarantee success
planning may not work in a dynamic environment
planning leads to rigidity
planning is a time consuming process
8.
If there is a plan to increase production then more labour, more machinery will be required. This step in the process of planning will involve organising for labour and purchase of machinery.
Identify the step in the planning process being discussed above.
Identifying alternative courses of action
Setting objectives
Selecting an alternative
Implementing the plan
9.
"Changes or events cannot be climinated but they can be anticipated and managerial responses to them can be developed" is suggested by the following importance of planning.
Planning facilitates decision-making
Planning promotes innovative ideas
Planning provides direction
Planning reduces the risks of uncertainty
10.
'Uttam Ayurvedic Ltd.' is an established Indian company manufacturing organic consumer goods like toothpastes and shampoos. It has planned to increase its market share from 30% to 40% in the current financial year. With the expanding market of organic products, other companies in the consumer goods industry have also launched these products with organic components. The competition in the market has increased and it was found that the sales of Uttam Ayurvedic Ltd. came down and its market share was reduced to 23%.
Identify the limitation of planning highlighted in the above case.
Planning may not work in dynamic environment
Planning is time consuming
Planning involves huge costs
Planning reduces overlapping and wasteful activities
11.
In Shalleen Pvt. Ltd. there is one head Shalleen who has two lines of authority under her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris.
Another line of authority under Shalleen is Lata-Rupa -Geet-Hussain Preeti. According to a principle of management given by Fayol, if Ismail has to communicate with Hussain who is at the same level of authority then illustrate the route he will have to traverse.
Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat- Abhishek-Ismail
Ismail-Chris-Shalleen-Preeti-Hussain
Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet- Hussain
12.
'Flavours of South' is a famous chain of South Indian restaurants. It believes in complete co-operation between the labour and management. It's management encourages the employees for their constructive suggestions. They take their employees into confidence for all important decisions.
Which principle of scientific management has been followed by 'Flavours of South'?
Science, not rule of thumb
Harmony, not discord
Co-operation, not individualism
Development of each and every person to his or her greatest efficiency and prosperity
13.
Sangeeta visited 'Smile Dental Clinic' for treatment of toothache. She observed that the receptionist was seated at the reception desk, the place fixed for her. Dental instruments were laid neatly in dental instrument trays and the used instruments were placed in the sterilisation area.
There was a fixed place for everything and it was present there. There was no hindrance in the work of the dentist and she was working with her maximum efficiency.
The principle of management followed at the 'Smile Dental Clinic' was
equity
discipline
order
initiative
14.
'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.
Identification and division of work
Departmentalisation
Assignment of duties
Establishing authority and reporting relationship
15.
'Best Electronics' is led by its visionary chief executive officer, Nikhil. It has a reputation for good quality products and customer service. Nikhil recognised the need to continually innovate and provide customers with the latest products. He wanted the company to be the market leader in electronics.
Nikhil knew that to realise his ambitious vision, he needed a clear and well-defined plan that would provide broad contours of the company's business. His team conducted extensive market research to uncover emerging trends, customer preferences and potential competitors. On its basis, a plan was prepared competitors. On its basis, a plan was prepared defining the company's direction and scope in the long-run. On the implementation of the plan 'Best Electronics' became the market leader in two years.
The type of plan which helped 'Best Electronics' to become the market leader was
policy
rule
strategy
procedure
16.
Plans are prepared for a specific period of time, may be for a month, a quarter or a year. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions. The feature of planning reflected in the above lines is
planning is futuristic
planning is continuous
planning is pervasive
planning is a mental exercise
17.
Statement I Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance.
Statement II Irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation.
Statement I is true and Statement Il is false
Statement II is true and Statement I is false
Both the statements are true
Both the statements are false
18.
Which of the following is not a feature of informal organisation?
It has no written rules and procedures
It clearly defines the authority and responsibility of every individual.
It is not deliberately created by the management
It is personal means the feelings of individuals are kept in mind.
19.
Which of the following is a limitation of formal organisation?
No clear cut structure
Social interaction
Personal satisfaction
Rigidity
20.
A network of social relationship that arise spontaneously due to interaction at work is called:
Formal organisation.
informal organisation.
decentralisation.
delegation.
21.
Which function of management closely related to planning?
Controlling
Staffing
Directing
Organising
22.
A comprehensive plan for accomplishing an organisations' objectives is known as:
Policy
Objective
Method
Strategy
23.
Which work study is used to study the various movements like lifting, putting objects and sitting of workers?
Time study
Motion study
Fatigue study
Method study
24.
Which of the following principles of management formulated by Taylor for managing an organisation scientifically?
Harmony, not discord
Cooperation, not individualism
Science, not rule of thumb
All of these
25.
Which of the following statements best describes 'Mental Revolution'?
It implies change of attitude.
The management and workers should not play the game of one upmanship.
Both management and workers require each other.
Workers should be paid more wages.
26.
'She/He keeps machines, materials, tools etc., ready for operations by concerned workers.' Whose work is described by this sentence under functional foremanship?
Instruction Card Clerk
Repair Boss
Gang Boss
Route Clerk
27.
Assertion (A) : Delegation is a pre-requisite to the efficient functioning of an organisation.
Reason (R) : It enables a manager to use his time on high priority activities.
(a) Both Assertion (A) and Reason (R) are incorrect
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)
28.
Assertion (A): Organising stimulates creativity amongst the managers.
Reason (R): Delegation allows the managers to reduce their workload and given them time to explore new areas for growth.
Codes:
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.
29.
Assertion (A): Functional Structure promotes specialisation.
Reason (R): Each department has to perform a specific function in case of Functional Structure.
Codes:
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.
30.
Assertion (A): Span of management refers to the number of subordinates that can be effectively managed by a superior.
Reason (R): A narrow span of management results in flat structure whereas wider span of management results in tall structure.
Codes:
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.
31.
Assertion (A): Organising helps in the growth and diversification of an enterprise.
Reason (R): It allows a business enterprise to add more job positions, departments and even diversify their product lines.
Codes:
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.
32.
Assertion (A): Planning requires the application of the mind involving foresight, intelligent imagination, and sound judgment.
Reason (R): It is a mental exercise and activity of thinking rather than doing.
Codes:
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.
33.
Assertion (A): The need for planning arises only when there is one alternative.
Reason (R): Decision making is an integral part of planning.
Codes:
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.
34.
Assertion (A): The various functions of management are interrelated, however, planning provides the basis for all other functions.
Reason (R): Planning is a continuous activity.
Codes:
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.
35.
Assertion (A): Cooperation not individualism an extension of Scientific Management.
Reason (R): The constructive suggestions of workers should be adopted and both management and workers share responsibility and perform together towards the organizational goals.
Codes:
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.
36.
Assertion (A): Fatigue study is important to maintain the efficiency levels of the workers.
Reason (R): The rest interval will enable workers to regain their lost stamina.
Codes:
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.
37.
Assertion (A): Principles of Management are mainly behavioural in nature.
Reason (R): As human behaviour is very complex and dynamic in nature, management principles do not aim to influence such unpredictable behaviour.
Codes:
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.
(b)
Divisional structure
2.
(c)
Assignment of duties
3.
(a)
functional structure
4.
(d)
Heads do not get training for top management positions
5.
(b)
Adaptation to change
6.
(a)
Follow-up action
7.
(c)
planning leads to rigidity
8.
(d)
Implementing the plan
9.
(a)
Planning facilitates decision-making
10.
(a)
Planning may not work in dynamic environment
11.
(a)
Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
12.
(c)
Co-operation, not individualism
13.
(c)
order
14.
(d)
Establishing authority and reporting relationship
15.
(c)
strategy
16.
(b)
planning is continuous
17.
(c)
Both the statements are true
18.
(b)
It clearly defines the authority and responsibility of every individual.
19.
(d)
Rigidity
20.
(b)
informal organisation.
21.
(a)
Controlling
22.
(d)
Strategy
23.
(b)
Motion study
24.
(d)
All of these
25.
(a)
It implies change of attitude.
26.
(c)
Gang Boss
27.
(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A)
28.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
29.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
30.
c) Assertion (A) is true but Reason (R) is False.
31.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
32.
c) Assertion (A) is true but Reason (R) is False.
33.
d) Assertion (A) is False but Reason (R) is true.
34.
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
35.
d) Assertion (A) is False but Reason (R) is true.
36.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
37.
c) Assertion (A) is true but Reason (R) is False.
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