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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
Take MCQ Business Studies Test

1.
The owner of a restaurant is charging Rs.40 for a bottle of juice from a customer whereas the maximum retail price of the bottle of juice is Rs.17. One of the consumers (a member of NGO) has objected to this but the owner continues to do this malpractice.
(i) Identify any two social values that the traders must follow?
2.
In order to achieve target production of 5000 units per month, a Production Manager has to operate on double shifts. Due to power failure most of the time, the manager is able to achieve 5000 units, but at a higher production cost.
a) In your point of view, what is lacking in management?
b) Identify the values emphasised by management in the above mentioned case.
3.
A commercial unit uses rocks, trees, electric poles, historical movements and walls to advertise its products. This advertising policy shows which faults of the company?
4.
In recent times the Govt. has increased the prices of diesel and LPG. Which value is being overlooked here?
5.
How does managerial principles ensure optimum utilization of resources and effective administration?
6.
Name the managerial function, which is the beginning and end of all managerial activities.
7.
Define authority.
8.
What do you mean by “levels of Management”? Draw a diagram showing the levels of management.
9.
What are financial assets ? How do financial market provide liquidity to time?
10.
State any four objectives of Controlling.
11.
Coordination is a systematic and orderly arrangement of individual and group efforts'. In the light of the statement, state any four features of coordination.
12.
Briefly discuss the three levels of management.
13.
A carpenter, making furniture out of wood and goldsmith, shaping gold into ornaments. This can be done only by practising and implementing applications. Similarly, manager is also complementing and practising the art of management. Do you agree? Give reasons in support of your answer.
14.
Ritu is the manager of the Northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?
1.
Honesty – The manufacturer should be honest in all his dealings.
Respect towards consumers – By providing all information about the product which the consumer intends to buy including its ingredients, date of manufacture, expiry, price quantity etc.
Integrity
2.
(a) Efficiency
(b) Values – (i) optimum utilization of scarce resources.
(ii) sincerity
(iii) Responsible towards achieving the target.
3.
i) Harming the environment
ii) Damaging the natural beauty
iii) Damaging the historical monuments
iv) Providing information to the people
4.
i) Fall in Standard of living
ii) Increase in Domestic Expenditure
iii) Increase in the cost of agricultural products
5.
In every organization resources such as men machines, materials and money play a vital role. Management principles are designed in such a way that maximum benefits from these resources can be achieved with minimum resources wastage. Along with this principles of management also help in establishing effective administration by limiting the boundary of managerial discretion so that their decisions may be free from personal biases.
6.
Planning.
7.
Organisation structure can be defined as a framework within which managerial and operating tasks are performed
1. It specifies the relationship between people, work, and resources.
2. It allows the correlation and coordination among human, physical and financial resources and the enables a business enterprises to accomplish desired goals.
8.
The term “Level of Management” refers to a line of demarcation between various mgt. positions in an organisation.
9.
Financial assets basically refer to assets which can be traded in the financial market like shares or debentures. Financial Markets provide Liquidity to such assets as they can be readily sold and converted into cash whenever require.
10.
Four objectives of controlling are as under :
(i) To seek planned results from subordinates.
(ii) To evaluate the progress of the work.
(iii) To detect deviations from the planned activities.
(iv) To find the causes of deviations
11.
Four features of coordination are:
(i) Coordination is not a distinct function but it is the essence of management.
(ii) Coordination is an ongoing process, it is not a one-time function.
(iii) It is created deliberately by the efforts of a manager, it does not occur spontaneously.
(iv) The main aim of coordination is to achieve unity of action.
12.
Organisational structure possesses three levels of management, as follows:
(i) Top level management: It consists of the Board of Directors, Chief Operational Officers and many more.
This level of management frames policies for overall attainment of management objectives.
(ii) Middle level management: It consists of departmental heads, section officers, etc. This level interprets and explains the policies framed by top level management.
They are involved more in collecting and reporting feedbacks to top level.
(iii) Operational level management: It is the lowest level of management. It consists of plant superintendents, clerks, supervisors, etc.
They are concerned with technical and routine work on day-to-day basis.
13.
It is true that management is an art because of the following reasons:
(i) It has a systematised body of knowledge consisting of principles, concepts and vocabulary which forms the basis of the art.
(ii) The practice of management principles differs from individual to individual, giving rise to different styles of management.
(iii) Management involves practice and creativity for finding solutions to complex managerial problems.
14.
The level of management being discussed in above question is middle level management.
Main functions of the middle level management are as follows:
(i) Interprets the policies framed by top management.
(ii) Assigning necessary duties and responsibilities to the staff.
(iii) Maintains close contacts with operating level so as to evaluate performance.
(iv) Select and appoint employees for middle and lower level.
(v) Cooperates with other departments for smooth functioning.
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