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Business Studies · 2025

CBSE Class 12 Business Studies 2025 — Previous-Year Question Paper

CBSE Class XII Board 2025 · Set 66/1/1

Real board examination
Sets

This paper has 3 questions on a topic removed in CBSE’s 2023-24 syllabus update (each marked Not in syllabus). It’s kept for historical accuracy — the exam really asked it that year — but isn’t in the current syllabus and doesn’t count toward a concept’s importance. Switch to to focus on what’s still examinable.

About this paper

The real Class-12 board examination held in 2025. Every question below is solved the concept-first way. Sample papers are labelled honestly — never shown as a past exam.

Total marks
80
Questions
34
Duration
180 min
Sections
4

The marks / questions / duration above are the official exam pattern. We currently have 34 of this paper’s questions (100% of the full paper), with 34 fully solved. Questions we couldn’t yet extract or verify are held — never shown as complete.

Sections & marks

SectionTypeQuestionsMarks eachTotal
ASection AMCQ20120
BSection BShort answer I4312
CSection CShort answer II6424
DSection DLong answer4624
Total3480

The question paper

The questions we hold for this paper, laid out by section. Solutions are on the Answers tab.

Board Examination

Business Studies

CBSE Class XII Board 2025 · Set 66/1/1

Series/Set: 66/1/1Roll No. ________
Time Allowed: 3 hoursMaximum Marks: 80

General Instructions

  1. This question paper contains 34 questions divided into 4 sections — A, B, C, D.
  2. Section A comprises 20 questions of 1 mark each (MCQ).
  3. Section B comprises 4 questions of 3 marks each (Short answer I).
  4. Section C comprises 6 questions of 4 marks each (Short answer II).
  5. Section D comprises 4 questions of 6 marks each (Long answer).

Above is the official exam pattern. The questions printed below are those we currently hold for this paper.

Section A

MCQ · 1 mark each · 20 of 20 shown

Q1.
The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as : (A) Operating risk (B) Financial risk (C) Business risk (D) None of the above
[1]
Q2.
Bimal Rai is working in Funny Bunny Ltd. The company manufactures games and toys for children. The basic task of Bimal Rai is to integrate diverse elements and coordinate the activities of different departments. He also analyses the business environment and its implications for the survival of the firm. The level of management at which Bimal Rai is working is : (A) Top level (B) Middle level (C) Operational level (D) Both Middle and Operational level
[1]
Q3.
Salim and Karim are good friends. They started a business of selling high quality seeds for growing organic vegetables. They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies and backyards. Due to the growing trend towards healthy consumption habits, there is a huge demand for their seeds. The dimension of business environment being discussed above is : (A) Economic Environment (B) Political Environment (C) Social Environment (D) Legal Environment
[1]
Q4.
Shridhan wanted to purchase an electric car. He visited a retail showroom of a car company where these cars were displayed. The Marketing Manager of this showroom told Shridhan that the company offers credit facilities, maintenance services and many other services that help in bringing repeat sales and developing brand loyalty for their cars. The marketing function being discussed by the Marketing Manager in the above case is (A) Product Designing and Development (B) Marketing Planning (C) Customer Support Services (D) Branding
[1]
Q5.
Which of the following statement is correct with respect to 'Exchange Mechanism', a feature of Marketing ? (A) For an exchange it is necessary that there should be involvement of atleast three parties. (B) The parties do not have the freedom to reject other parties offer. (C) The acceptance of the offer for each party has to take place on the basis of compulsion. (D) For an exchange it is necessary that each party should be capable of offering something of value to the other.
[1]
Page 1 of 6
Q6.
One of the responsibilities of an aware consumer is to buy only standardised goods as they provide quality assurance. Identify the quality certification mark to be seen by a consumer in the picture given below : (A) ISI Mark (B) Agmark (C) Hallmark (D) FPO/FSSAI Mark For Visually Impaired Candidates : Madhu wants to buy Jewellery for her daughter's marriage. Which of the following quality certification mark should she look for while buying Jewellery : (A) FPO/FSSAI Mark (B) ISI Mark (C) Hallmark (D) Eco-mark
[1]
Q7.
Which of the following is not a protective function of Securities and Exchange Board of India : (A) Prohibition of fraudulent and unfair trade practices. (B) Controlling insider trading and imposing penalties for such practices. (C) Promotion of fair practices and code of conduct in securities market. (D) Undertaking measures to develop the capital markets by adapting a flexible approach.
⚠ This question is not in the current syllabus — Financial Markets has been removed from the current NCERT Class 12 Business Studies textbook. This question is kept from previous years' papers and is marked out-of-syllabus.
[1]
Q8.
There are two Statements, Assertion (A) and Reason (R). Assertion (A) : Larger the lead time, larger is the quantity of material required to be stored and larger shall be the amount of working capital required. Reason (R) : If the raw material do not have a record of un-interrupted availability, higher stock levels may be required. Choose the correct alternative from the alternatives given below : (A) Assertion (A) is false and Reason (R) is true. (B) Both Assertion (A) and Reason (R) are false. (C) Assertion (A) is true and Reason (R) is false. (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
[1]
Q9.
Which of the following statement is correct about personal selling : (A) It is an impersonal form of communication. (B) Personal selling does not allow a sales person to develop personal relationships with the prospective customers. (C) Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making a sale. (D) Personal selling refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.
[1]
Q10.
There are two statements, Assertion (A) and Reason (R) : Assertion (A) : Coordination ensures unity of action. Reason (R) : Coordination act as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. Choose the correct alternative from the alternatives given below : (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A). (B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A). (C) Assertion (A) is correct, but Reason (R) is wrong. (D) Assertion (A) is wrong, but Reason (R) is correct.
[1]
Q11.
In an informal organisation, authority arises out of ____. (A) Virtue of position in management (B) Company's rules and policies (C) Scalar chain (D) Personal qualities
[1]
Q12.
HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures like training of employees and assigning additional workers and equipment to the project, the targets could not be met. The Production Manager, now, decided to revise the standards. Identify the step of the controlling process under which the Production Manager decided to revise the standards. (A) Setting performance standards (B) Measurement of actual performance (C) Analysing deviations (D) Taking corrective action
[1]
Q13.
Statement – I : Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions and reactions. Statement – II : Motivation can be either positive or negative. Choose the correct option from the following : (A) Statement I is true and Statement II is false. (B) Statement II is true and Statement I is false. (C) Both Statement I and Statement II are true. (D) Both Statement I and Statement II are false.
[1]
Page 2 of 6
Q14.
Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta always believed in understanding the business environment as well as responding and adapting to it. When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects. The point of importance of Business Environment discussed above is : (A) Tapping useful resources. (B) Identifying threats and early warning signals (C) Improving performance (D) Identifying opportunities and getting first mover advantage.
[1]
Q15.
Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The point of importance of organizing described above is : (A) Adaptation to change (B) Effective administration (C) Development of personnel (D) Expansion and growth
[1]
Q16.
Statement – I : Regulation of takeover bids by companies is one of the Regulatory functions of Securities and Exchange Board of India. Statement – II : Training of intermediaries of securities market is one of the Development functions of Securities and Exchange Board of India. Choose the correct option from the following : (A) Statement I is correct and Statement II is incorrect. (B) Statement II is correct and Statement I is incorrect. (C) Both Statement I and Statement II are correct. (D) Both Statement I and Statement II are incorrect.
⚠ This question is not in the current syllabus — Financial Markets has been removed from the current NCERT Class 12 Business Studies textbook. This question is kept from previous years' papers and is marked out-of-syllabus.
[1]
Q17.
'High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees etc.' The dimension of business environment referred to above is : (A) Political Environment (B) Technological Environment (C) Social Environment (D) Economic Environment
[1]
Q18.
Match the concepts of marketing in Column – I with their respective explanations in Column – II : Column – I | Column – II (a) Product concept | (i) Its main focus is on quality, performance and feature of the product. (b) Selling concept | (ii) Its main focus is on satisfaction of customer needs. (c) Marketing concept | (iii) Its main focus is on aggressively persuading buyer to purchase the existing product. (d) Societal concept | (iv) Its main focus is on satisfaction of customer needs and society's well-being. Choose the correct options from the following : (a) (b) (c) (d) (A) (iv) (iii) (ii) (i) (B) (iii) (ii) (i) (iv) (C) (ii) (i) (iii) (iv) (D) (i) (iii) (ii) (iv)
[1]
Q19.
Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalised and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations. The aspect of the nature of management highlighted in the above case is : (A) Management as an Art (B) Management as a Science (C) Management as a Profession (D) Management both as a Science and as a Profession
[1]
Q20.
'The principles of management can be modified by the managers when the situation so demands.' This highlights which of the following feature of principles of management : (A) General guidelines (B) Flexible (C) Contingent (D) Mainly behavioural
[1]
Page 3 of 6
Section B

Short answer I · 3 marks each · 4 of 4 shown

Q1.
P. Madhav is the production manager of 'Trendy Style Pvt. Ltd.', a firm manufacturing office furniture. His objective is to increase production by 20% in the next one year. But the Sales Manager, R. Shetty does not approve of the increase in production, till changes are brought about in the quality of wood, locks, handles etc. to incorporate latest trends. This kind of conflict brings to light an important concept of management that can help to link the activities of various departments. (i) Identify and explain the concept discussed above. (ii) State any two points of importance of the concept identified in (i) above.
[3]
Q2.
(a) Give meaning of 'Communication'. State first two elements in the process of communication. OR (b) State any three 'Organisational barriers' to Communication.
[3]
Q3.
Madhwan was appointed as a Human Resource Manager in 'Health Grow Ltd.' six months back. As a Human Resource Manager, he has to perform many specialised activities and duties like analyzing jobs by collecting information about jobs and prepare job descriptions, training and development of employees etc. State three other specialized activities that Madhwan must perform in addition to the above as a Human Resource Manager of Health Grow Ltd.
[3]
Q4.
(a) State any three points of importance of Financial Planning. OR (b) State any three factors that affect the fixed capital requirements of a company.
[3]
Section C

Short answer II · 4 marks each · 6 of 6 shown

Q1.
(a) State any four points of importance of 'Directing' function of Management. OR (b) State any four limitations of internal sources of recruitment.
[4]
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Q2.
(a) Explain the following external sources of recruitment : (i) Direct Recruitment (ii) Casual Callers OR (b) Explain the following non-financial incentives which motivate employees for higher performance : (i) Employee participation (ii) Organisational climate
[4]
Q3.
Abha had guests at home. She ordered vegetable, biryani from 'Biryani House'. The biryani came in a beautiful packaging and Abha opened it with lot of excitement. However, when she started serving biryani to the guests, she realised that it was non-vegetarian. She checked the package and noticed that there was no indication whether it was a vegetarian or non-vegetarian biryani. She contacted 'Biryani House' for the same. The manager at 'Biryani House' apologized and immediately sent a vegetarian biryani along with complimentary sweet dish. Identify and explain the two consumer rights discussed in the above case.
[4]
Q4.
'Tech Work' an Artificial Intelligence (AI) startup started in 2024. It was earning good profits. It wanted to expand its business and for its research and development, it required ₹ 100 crores. The Chief Executive Officer of 'Tech Work' consulted the Finance Manager who suggested that there is a market which facilitates transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or expand existing ones through the issue of securities. The management of 'Tech Work' decided to raise funds from the investors by issuing equity shares @ ₹ 200 per share for the first time. (i) Name the type of capital market through which 'Tech Work' decided to raise funds for its expansion. (ii) State three features of the market identified in (i) above.
⚠ This question is not in the current syllabus — Financial Markets has been removed from the current NCERT Class 12 Business Studies textbook. This question is kept from previous years' papers and is marked out-of-syllabus.
[4]
Q5.
Ganesh Jain is the Marketing Manager at 'KL Foods Ltd'. He has a team of four employees working under him – Kavya, Ritesh, Pooja and Madhav. Kavya and Ritesh are temporary employees while Pooja and Madhav's job is permanent. All four of them have been working hard and consistently met all targets. Ganesh Jain wanted to reward them for their good performance. He understood that in all human beings, there exists a hierarchy of needs. So, he identified the need level of each of the employees to provide motivation to them. Kavya and Ritesh were made permanent in the job with a good pension plan while Pooja and Madhav were given an autonomy status. (i) Identify and state the need of employees recognized by Ganesh Jain in the above case. (ii) State any two assumptions on which Maslow's Need Hierarchy Theory is based on.
[4]
Q6.
VK Ltd. is a fast moving consumer goods company. It has shareholders spread all over India. Most of its shareholders depend upon a regular income from their investment. VK Ltd. has been earning consistent profits. The management of the company keeps in mind the preference of the shareholders regarding payment of dividend. Since its shareholders, in general, desire that atleast a certain amount is paid as dividend to them every year, the company declares dividend every year. Atul, the Finance Manager of the company identified promising growth opportunities. He suggested to the Chief Executive Officer to retain the earnings to finance the required investments instead of declaring dividend every year. For this, the Chief Executive Officer decided to call a General Body Meeting of the shareholders. (i) Identify two factors affecting dividend decision discussed above. (ii) State two other factors that affect the dividend decision of a company.
[4]
Page 5 of 6
Section D

Long answer · 6 marks each · 4 of 4 shown

Q1.
(a) Explain the following principles of General Management : (i) Scalar chain (ii) Equity (iii) Initiative OR (b) 'Objectives of Management can be classified into organisational, social and personal objectives.' Explain these objectives.
[6]
Q2.
(a) Explain the following points of importance of 'Planning' function of management : (i) Planning provides directions. (ii) Planning promotes innovative ideas. (iii) Planning reduces the risk of uncertainty. OR (b) Explain 'Objectives', 'Rule' and 'Budget' as types of plans.
[6]
Q3.
DG Ltd., an E-plane car company has developed a revolutionary flying car for passenger mobility. This hybrid flying car can accommodate upto two persons and features innovative wing like doors for comfortable entry. The seats are designed for utmost comfort, crafted from high quality materials. The distinguishing feature of this flying car is that its production will be in India and it will utilise biofuel alongside electricity, ensuring a sustainable mode of transportation. DG Ltd. has obtained the first testing approval for its category. Priced at ₹ 2.5 crores, the company has to take decisions in respect of discounts to customers, credit terms etc., so that the customers perceive the price to be in line with the value of the product. To make the flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc. To communicate the availability, features, merits etc. of the product to the target customers and persuade them to buy the flying car. DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists. The above case describes the combination of elements used by DG Ltd. to prepare its market offering. Quoting lines from the above para, identify and explain the elements.
[6]
Q4.
'Royal Glaze Ltd.' continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure – 'Foods' and 'Home Care'. Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future. (i) Identify the organisational structure of 'Royal Glaze Ltd'. (ii) Draw the organisational structure chart of 'Royal Glaze Ltd.' considering its future plans to enter into Electronics segment. (iii) State any three advantages of the type of organisational structure drawn in (ii) above.
[6]
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