CBSE SAMPLE QUESTION PAPER (2026-27)
SUBJECT: BUSINESS STUDIES (054)
CLASS: XII | SA-2 (FULL SYLLABUS) | SET - 3
Time Allowed: 3 Hours
Maximum Marks: 80
General Instructions
- This question paper contains 34 questions. All questions are compulsory.
- Questions 1 to 20 are objective-type questions carrying 1 mark each.
- Questions 21 to 24 are short-answer type questions carrying 3 marks each.
- Questions 25 to 30 are short-answer type questions carrying 4 marks each.
- Questions 31 to 34 are long-answer type questions carrying 6 marks each.
- Internal choices have been provided in select questions. You must attempt only one of the choices in such questions.
SECTION A
1.
Management is a process of getting things done with the aim of achieving goals effectively and efficiently. 'Effectiveness' in management implies:
[1]
2.
Which principle of management given by Henri Fayol advocates that there should be only one boss for every individual employee?
[1]
3.
The rapid popularization of smartphones and high-speed internet has completely changed the way people shop, severely affecting the sales of traditional retail stores.
This highlights which feature of the business environment?
[1]
4.
Which of the following is an example of a 'Single-Use Plan'?
[1]
5.
Which organizational structure is formed on the basis of major product lines manufactured by the enterprise?
[1]
6.
Which of the following is considered a negative process because it involves rejecting unqualified candidates?
[1]
7.
Which financial decision is concerned with determining the quantum of finance to be raised from various long-term sources like debt and equity?
[1]
8.
The Securities and Exchange Board of India (SEBI) recently launched an online portal to resolve investor grievances and initiated campaigns to spread financial literacy among rural investors.
Which category of SEBI's functions do these activities fall under?
[1]
9.
Which marketing management philosophy believes that products must be pushed aggressively onto the consumer using heavy advertising and promotional techniques?
[1]
10.
Under the Consumer Protection Act, 2019, a complaint regarding defective goods where the value of the goods and compensation claimed is ₹5 Crores should be originally filed in the:
[1]
11.
Which of the following is a short-term, unsecured promissory note issued by large and creditworthy companies to raise funds for working capital?
[1]
12.
Which element of the promotion mix is defined as a paid form of non-personal communication by an identified sponsor?
[1]
13.
The objective of financial management is to maximize the current price of equity shares of the company. This objective is technically known as:
[1]
14.
According to Maslow’s Need Hierarchy Theory, the desire to achieve one's full potential and become everything one is capable of becoming represents:
[1]
15.
Which step in the controlling process involves finding out the exact reasons why the actual performance did not match the planned targets?
[1]
16.
Which of the following is NOT a feature of an informal organization?
[1]
17.
In the context of the secondary market, the process of holding securities like shares and bonds in an electronic form rather than physical paper certificates is called:
[1]
18.
Based on the visual representation described above, identify the specific function of marketing being performed by the manufacturer to communicate this information to the consumer.
[1]
19.
Assertion (A): Trading on equity is considered favorable when the rate of return on investment (ROI) is less than the rate of interest on debt.
Reason (R): If the ROI is lower than the interest rate, the use of debt will cause the Earning Per Share (EPS) of the equity shareholders to decline, increasing the financial risk.
[1]
20.
Assertion (A): A legal heir or representative of a deceased consumer can file a complaint under the Consumer Protection Act, 2019.
Reason (R): The Act provides a comprehensive list of individuals and entities who can file a complaint to ensure that the rights of consumers are not extinguished upon their death.
[1]
SECTION B
21.
The government recently introduced a strict new law mandating that all beverage companies must shift from plastic packaging to 100% biodegradable glass or paper packaging. Consequently, 'PureJuices Ltd.' had to completely overhaul its packaging strategy, which was widely appreciated by environmentally conscious citizens on social media.
Identify and briefly explain the two dimensions of the business environment highlighted in this scenario.
[3]
22.
Mr. Das, the sales manager, assigns the task of collecting daily sales reports to his assistant, Amit. He also grants Amit the right to access the highly confidential sales database. However, Amit forgets to collect the report from one branch. When the CEO questions Mr. Das about the missing data, Mr. Das blames Amit and claims he is no longer responsible.
Is Mr. Das legally correct in escaping responsibility? Explain the three elements of delegation involved in this case to justify your answer.
[3]
23.
During a crucial board meeting, the Chief Financial Officer (CFO) was explaining the new budget using complex accounting terminologies like "EBITDA margins" and "liquidity ratios." The marketing and production heads, who lacked financial backgrounds, were completely confused and failed to understand the budget constraints.
Identify the category and the specific communication barrier highlighted here. State one other barrier belonging to the same category.
OR
Training and Development are crucial for employee growth. Differentiate between 'Training' and 'Development' on the basis of: (a) Meaning, (b) Purpose, and (c) Scope.
[3]
24.
'Zeta Corp' is a highly reputed company with excellent creditworthiness. They require short-term funds for 90 days to meet their seasonal working capital requirements. They decide to issue a short-term, unsecured promissory note to raise funds from the market.
Identify the specific money market instrument used by 'Zeta Corp'. State any two of its characteristics.
[3]
SECTION C
25.
Mr. Kapoor, the general manager of a factory, treats all his employees with absolute fairness and justice. He ensures that there is no discrimination based on gender or religion regarding salaries. However, his management style is incredibly rigid. He dictates every single operational step and strictly forbids workers from suggesting any new, cost-saving ideas, demanding blind obedience instead. This has led to massive frustration among the highly skilled workers who feel their creativity is being suppressed.
Identify and explain the one principle of general management (given by Henri Fayol) that Mr. Kapoor is successfully following, and the one principle he is blatantly violating.
[4]
26.
The top management of 'EcoBuild Ltd.' drafted a comprehensive business blueprint. First, they stated a clear, measurable endpoint: "To increase our total market share by 15% within the next 12 months." To support this, they laid down a broad framework to guide managerial decisions, stating: "The company will only hire candidates with prior experience in eco-friendly construction." Finally, to ensure smooth hiring, they drafted a strict, chronological sequence of steps that the HR department must follow to recruit these specific candidates.
By quoting lines from the paragraph, identify and explain the three different types of plans formulated by the management of 'EcoBuild Ltd.'
[4]
27.
The selection of the right candidate is a crucial and rigorous process. Explain the first four sequential steps involved in the 'Selection Process' of an organization.
OR
Controlling ensures that organizational activities are performed as per the predetermined plans. Explain the first four sequential steps involved in the process of Controlling.
[4]
28.
The Board of Directors of 'Stellar Technologies' is meeting to finalize the annual dividend. The company has generated massive profits this year. However, the Finance Manager suggests declaring a very low dividend. He argues that the company has discovered a revolutionary AI technology and needs to retain massive amounts of cash to fund this high-growth project. Furthermore, he points out that the company's current cash flow position is quite tight because most of their revenue is stuck in pending accounts receivables. Lastly, he notes that their major shareholders are wealthy individuals who prefer capital gains over immediate dividend income to save on taxes.
By quoting lines from the paragraph, identify and explain the three specific factors affecting the Dividend Decision discussed by the Finance Manager.
[4]
29.
'FreshBites' manufactures highly perishable organic bakery products. The management is currently debating their physical distribution strategy. One group suggests setting up their own retail outlets to sell directly to consumers to maintain absolute freshness. The other group suggests hiring large national wholesalers who can distribute the products to thousands of retail shops across the country, saving the company from heavy infrastructure investments.
Based on the scenario above, identify the element of the marketing mix being debated. Explain any three factors that 'FreshBites' must consider before choosing the appropriate channel of distribution.
[4]
30.
Mr. Sharma visited a local pharmacy to buy a vital heart medication. The pharmacist handed him the medicine but refused to provide a printed cash memo to avoid paying GST. Trusting the pharmacist, Mr. Sharma took the medicine without checking the manufacturing and expiry dates printed on the label. The next day, he fell severely ill because the medicine was expired. When he tried to file a legal case in the consumer court, his lawyer told him his case was very weak.
Based on the provisions of the Consumer Protection Act, identify and explain the two specific responsibilities of a consumer that Mr. Sharma completely ignored, which weakened his legal case.
OR
"Coordination is not a separate function of management, but the very essence of it." Justify this statement by explaining how coordination is inherent in all the five functions of management (Planning, Organizing, Staffing, Directing, and Controlling).
[4]
SECTION D
31.
The management of 'Speedy Logistics' was alarmed by the massive delays in their warehouses. Workers were constantly complaining of severe exhaustion and back pain, leading to high absenteeism. A consultant was hired to apply F.W. Taylor's scientific principles to resolve the crisis. First, the consultant used a stopwatch to record the exact duration it took an average worker to load a truck, establishing a strict standard timeline. Second, he installed high-speed conveyor belts, completely eliminating the need for workers to manually lift and carry heavy boxes across the floor, saving immense physical effort. Third, noticing their exhaustion, he implemented a mandatory 20-minute rest interval after every four hours of continuous labor, allowing the workers to recover their stamina. Finally, to motivate them financially, he introduced a system where workers loading more than the standard 50 boxes a day were paid at a higher rate per box, while those loading fewer were paid at a significantly lower rate.
By quoting the relevant lines from the paragraph, identify and deeply explain the **four specific techniques of Scientific Management** implemented by the consultant to revolutionize efficiency at 'Speedy Logistics'.
[6]
32.
Mr. Verma has accumulated savings of ₹5 Lakhs and wishes to invest in the equity shares of a reputed blue-chip company listed on the National Stock Exchange (NSE). Since he is a first-time investor, he is entirely unaware of how the stock market operates. He approaches a registered financial advisor to understand the exact mechanism. The advisor explains that he cannot directly walk into the stock exchange to buy shares. He must follow a strict digital and legal procedure, starting from finding an authorized intermediary to the final settlement where the shares are legally transferred to his name.
Explain the detailed, sequential **Trading Procedure on a Stock Exchange** that Mr. Verma must follow to successfully purchase the shares, starting from the selection of a broker to the final settlement of the trade.
OR
'Pioneer Heavy Industries' is planning to set up a massive steel manufacturing plant. This project requires an enormous initial investment of ₹500 Crores in land, blast furnaces, and heavy robotics. The Finance Director is tasked with analyzing the Fixed Capital requirements. He notes that the very nature of their business (manufacturing heavy metals) demands massive infrastructure. Furthermore, he anticipates that the demand for steel will triple over the next decade, indicating massive growth prospects. However, to save some initial costs, he successfully negotiates a deal to lease a large portion of the required land for 99 years instead of buying it outright. Lastly, he acknowledges that their steel-melting technology will likely become obsolete in five years, requiring frequent and expensive upgrades.
Identify the financial concept being evaluated. By quoting lines from the paragraph, identify and explain the **four specific factors affecting the Fixed Capital requirements** of 'Pioneer Heavy Industries'.
[6]
33.
'Vibrant Beverages' wants to launch a new, healthy energy drink targeted at young athletes. The Marketing Manager, Ms. Neha, has to design a comprehensive strategy. First, she focuses on the physical attributes of the drink, ensuring it is packed with vitamins and zero sugar, and gives it a highly catchy and legally protected brand name, "AeroBoost". Second, she analyzes the costs and competitor prices to set the MRP at ₹45 per bottle, ensuring it is affordable yet profitable. Third, she builds a robust distribution network, appointing regional wholesalers and thousands of local retail shops to ensure the drink is easily available across the country. Finally, to create awareness and persuade athletes to buy it, she launches a massive TV advertising campaign featuring a famous cricketer and offers a "Buy 2 Get 1 Free" introductory scheme.
The case study highlights the four critical pillars of a marketing strategy. Identify and deeply explain the **four elements of the Marketing Mix** utilized by Ms. Neha to ensure the successful launch of "AeroBoost".
[6]
34.
'MegaMart Retail' began as a single grocery store in Delhi. The founder, Mr. Singh, tightly held all decision-making powers. From selecting the suppliers to approving the leave of a cashier, every file had to be signed by him. This centralized approach worked perfectly when the business was small. However, over a decade, MegaMart expanded to 150 stores across India. Mr. Singh found himself buried in paperwork. Approvals took weeks, and local store managers were frustrated because they could not instantly offer discounts to counter local competitors without Delhi's permission. Realizing the crisis, Mr. Singh fundamentally changed the organization's philosophy. He systematically passed down the authority to make day-to-day operational and pricing decisions to the respective regional store managers. Suddenly, the local managers felt highly motivated, took absolute ownership of their branch's profits, and reacted to local market trends within hours. Mr. Singh, now free from daily operations, focused his entire energy on acquiring a rival retail chain.
Identify the core organizational concept (philosophy) adopted by Mr. Singh to resolve the crisis. Deeply explain the importance of this concept by highlighting **four specific benefits** it provided to 'MegaMart Retail', as evident from the case.
[6]
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