Business Studies
CBSE Examination Paper – 2024
With Topper’s Answer
Time : 3 Hours Max. Marks : 80
General Instructions:
Read the following instructions very carefully and strictly follow them :
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) Marks are indicated against each question.
(iii) Answer should be brief and to the point.
(iv) Answer to the questions carrying 3 marks may be from 50 to 75 words.
(v) Answer to the questions carrying 4 marks may be in about 150 words.
(vi) Answer to the questions carrying 6 marks may be in about 200 words.
(vii) Attempt all parts of a question together.
1. 'Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent
profits for the last many years. It has a democratic style of working. Workers are encouraged to develp and carry
out plans for improvement in the organisation. Varun who is working in the production department gave a
suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion.
Identify the principle of management followed by 'Vanguard Inc.' in the above case : 1
(A) Esprit De Corps
(B) Subordination of Individual Interest to General Interest
(C) Initiative
(D) Equity
Ans.
2. ‘Child-O’ is a garment manufacturing company which makes clothes with unique and stylish designs for
children. Naisha was working as the Human Resource Manager with ‘Child-O’. Inspite of good pay and many
other benefits offered, the company is facing problem of high turnover of its employees. Naisha tried to find out
the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out
the reason. It was found that other organisations were giving more autonomy and authority to their employees
which made them feel that their jobs were important.
This was attracting the employees of ‘Child-O’ to other organisations. The incentive which attracted the employees
of ‘Child-O’ to other organisations is: 1
(A) Employee Recognition programmes (B) Employee Participation
(C) Career Advancement Opportunity (D) Employee Empowerment
Ans.
3. ‘Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from
different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment’. Thus
it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature
of business environment highlighted above : 1
(A) Uncertainty (B) Complexity (C) Relativity (D) Dynamic nature
Ans.
4. Naman and Vineet were childhood friends and both were working in ‘Sunshine Crockery.’ Naman was working
as the Chief Executive Officer while Vineet was the Production Manager. They would generally discuss company
related issues over lunch-time or while travelling together.
The company had recently received an order for supply of 5,000 dinner sets from Shaurya Hotel. It was an
unexpected order and would increase the revenue of the company. This order was communicated by Naman
to Vineet over intercom. Vineet executed the order within the given time period. For this, he was appreciated by
Naman.
2 | OSWAAL Exam Rehearsal For BUSINESS STUDIES, Class-12
The type of communication used by Naman to communicate the order to Vineet was : 1
(A) Formal Communication (B) Informal Communication
(C) Online Communication (D) Visual Communication
Ans.
5. Statement-I: The basic function of a Stock Exchange is the creation of a continuous market where securities are
bought and sold.
Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in
the market.
Choose the correct option from the following : 1
(A) Statement-I is true and Statement-II is false.
(B) Statement-II is true and Statement-I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.
Ans.
6. As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1st July, 2022.
The dimension of business environment referred to here is ________. 1
(A) Economic environment (B) Legal environment
(C) Technological environment (D) Political environment
Ans.
7. Statement-I : Motivation can be either positive or negative.
Statement-II : Motivation is a complex process as the individuals are heterogeneous in their expectations,
perceptions and reactions.
Choose the correct option from the following : 1
(A) Statement-I is true and Statement-II is false.
(B) Statement-II is true and Statement-I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.
Ans.
8. Navya went to a supermarket for grocery shopping. She bought one kg of bajra flour from the supermarket.
On reaching home when she opened the packet she found worms inside it. She was disappointed and told her
son about the same. Her son asked her to check the label. When she checked the label of the packet, she found
that bajra flour was stale and beyond the expiry date. She approached the sales-person at the supermarket who
replaced the bajra flour immediately. When she thanked the sales-person, she was told that it was the policy of the
supermarket to satisfy the customers. He further told that satisfied customers not only lead to repeat sales but they
also provide good feedback to prospective customers which helps in increasing the customer base of business.
Identify the point of importance of consumer protection from the point of view of the supermarket which is
helping them to increase the customer base : 1
(A) Long term interest of the business (B) Moral justification
(C) Social responsibility (D) Government intervention
Ans.
9. Which of the following is not an element of social environment ? 1
(A) Composition of family (B) Consumption habits
(C) Rates of saving and investment (D) Educational system and literacy rates
Ans.
Topper's Answers-2024 | 3
10. Read the following statements :
Assertion (A) and Reason (R). Choose the correct alternative from those given below :
Assertion (A) : Availability of leasing facilities may reduce the funds required to be invested in fixed assets thereby
reducing the fixed capital requirements.
Reason (R) : When an asset is taken on lease, the firm pays lease rentals to use it and avoids to invest huge sums
required to purchase it. 1
(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 but 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.
Ans.
11. Match the terms given in Column-I with their meaning in Column-II.
Column-I Column-II
a. Trademark (i) A name, term, sign, symbol, design or some combination of them used to
identify the products and differentiate them from the competitors.
b. Brand name (ii) A brand or a part of the brand that is given legal protection.
c. Brand (iii) That part of the brand which can be recognised but which is not utterable.
d. Brand mark (iv) That part of the brand which can be spoken.
Choose the correct option from the following: 1
a b c d
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (i) (iv)
(C) (ii) (iv) (i) (iii)
(D) (ii) (i) (iv) (iii)
Ans.
12. 'Kanand Ltd.' is an automobile manufacturing company started in 2014 under 'Make in India' initiative of the
Government of India. Expecting higher growth in future, it developed higher capacity in the current year taking
advantage of the subsidies provided by the government. This would enable 'Kanand Ltd.' to meet anticipated
higher demand quickly. For this, requirements of fixed capital. Identify the factor affecting fixed capital
requirements which 'Kanand Ltd.' kept in mind to meet higher anticipated demand quicker. 1
(A) Scale of operations (B) Nature of business
(C) Diversification (D) Growth prospects
Ans.
13. Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job seekers
can be a valuable source of manpower. A list of such job seekers can be prepared and can be screened to fill the
vacancies as they arise. The source of recruitment discussed above is : 1
(A) Direct recruitment (B) Casual callers
(C) Labour contractors (D) Campus recruitment
Ans.
4 | OSWAAL Exam Rehearsal For BUSINESS STUDIES, Class-12
14. Identify from the following – what is shown in the picture of refrigerator given below ? 1
Refrigerator
(A) Brand name (B) Brand mark (C) Trademark (D) Label
Ans.
15. Which of the following is NOT a factor affecting ‘financing decision’ ? 1
(A) Fixed operating costs (B) Cash flow position
(C) Control considerations (D) Diversification
Ans.
16. For holding securities in an electronic form, the investor has to open a demat account with an organisation called
_________. 1
(A) Depository (B) Securities and Exchange Board of India
(C) Stock Exchange (D) Mutual Fund
Ans.
17. __________ means doing the task correctly and with minimum cost. 1
(A) Efficiency (B) Effectiveness (C) Management (D) Coordination
Ans.
18. Which of the following is the function of Top level management ? 1
(A) They ensure that their department has the necessary personnel.
(B) They interact with the actual work force and pass on instructions of the middle management to the workers.
(C) They co-operate with other departments for smooth functioning of the organisation.
(D) They analyse the business environment and its implications for the survival of the firm.
Ans.
19. The activities involved in managing the enterprise are common to all organisations whether economic, political or
social. Identify the feature of management : 1
(A) Management is multidimensional. (B) Management is all pervasive.
(C) Management is a continuous process. (D) Management is a dynamic function.
Ans.
20. Choose the incorrect statement about ‘Money market’ : 1
(A) The main instruments traded in this market are Treasury bills, Trade bills, Commercial paper and Certificates
of deposit.
(B) In this market, transactions entail huge sums of money as the instruments are quite expensive.
(C) Participation in this market is by and large undertaken by institutional participants such as the Reserve Bank
of India, banks, financial institutions and finance companies.
(D) It deals in medium and long term securities.
Topper's Answers-2024 | 5
Ans.
21. ‘Cortico Fabrics’ was started by Ashish in 2001 to sell bed sheets, towels, comforters, pillows, cushions, bath mats
etc. It is now a famous name and its branches are across India. To manage the work all over India, it has eight
teams-two each for North, South, East and West India. Ashish spends a considerable amount of time to develop
an orderly pattern of group efforts among different teams and to secure unity of action in pursuit of a common
purpose. To ensure suitable allocation of tasks to the various members of the teams and to see that the tasks are
performed with harmony among the members, he tries to balance the different teams at different locations.
(a) Identify and explain the concept of management discussed in the above para.
(b) Also, explain any one point of importance of the concept identified in (a) above. 3
Ans.
22. State any three points of importance of staffing function of management. 3
Ans.
23. ‘Caro’, a car manufacturing company was manufacturing high cost, good quality luxury cars. For the last few
years, the company was not earning good profits as the demand for the cars was very low.
Chief Executive Officer of the company, Piyush had a meeting with the Production and Sales Managers to
discuss how to increase the revenue of the company. They found that nowadays instead of purchasing luxury
cars people prefer to have such cars on rental basis. So they decided to start ‘Car rental service’. The Production
Manager also suggested that as these cars were sophisticated and each spare part was very costly it would be
better to provide these cars for rental service along with trained drivers so that there would be less wear and tear.
Piyush agreed and a training unit was started. Two of the available cars were used for training the drivers. People
were very happy as they were getting these cars on rental basis with trained drivers. The idea was a big hit and
the company was able to surpass its profit targets of the last 20 years.
(a) Identify and explain the method of training given by ‘Caro’ to its drivers.
(b) Also, state any two advantages the drivers will get after this training. 3
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Ans.
24. State any three protective functions of ‘Securities and Exchange Board of India’. 3
Ans.
25. Kewalram started a sweets shop ‘Karamati Sweets’ in 1950. The sweets were famous all over India for their good
quality and people would come from far and wide to purchase sweets from him. As he grew old, he could no
longer run the shop. So, he sold the shop to one of his neighbours ‘Bholaram’. After a few months, to further
increase the revenue, ‘Bholaram’ started engaging in unfair trade practices like using adulterated khoya and
paneer. He thought that no one would know about it as ‘Karamati Sweets’ had a good image in the eyes of the
people.
Slowly, people started falling sick after consuming sweets purchased from ‘Karamati Sweets’ but they did not
know where to go and to whom to complain. Raghav, a resident of the village had recently completed his studies.
He was also a member of a non-governmental organisation. ‘Meri Voice’. He felt that the villagers should be made
aware about the rights and reliefs available to them. He started creating awareness about consumer rights among
the villagers to protect their interest through a series of talks and presentations in the village.
(a) Identify and explain the consumer right discussed in the above para.
(b) Also, identify and explain the consumer right violated by ‘Bholaram’ in the above case. 4
Ans.
Topper's Answers-2024 | 7
26. A Business Process Outsourcing centre, ‘Chromosome’ which deals in conversion of voice reports dictated by
physicians and other healthcare providers into text format has 40 employees. They ensure that their employees are
well versed in at least one foreign language and one Indian language. The employees are also given the required
training to ensure that the reports are processed correctly as they are the backbone of the patients’ medical history.
On frequent complaints about some of its employees, it was observed that they were facing problems in decoding
the message as they were not very proficient with the language in which the voice message was received. As a
result, they would make mistakes causing different meaning to the message. Not only this, sometimes there were
technical words used in voice reports, the actual meaning of which was also not understood by the employees.
Due to this, ‘Chromosome’ was slowly losing its business to competitors.
The above case highlights two communication barriers. Identify and explain these barriers. 4
Ans.
27. (a) State any four limitations of planning. 4
OR
(b) Explain the following types of plans :
(i) Strategy
(ii) Procedure 4
Ans.
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28. Differentiate between ‘Production concept’ and ‘Marketing concept’ of marketing management philosophies on
the basis of :
(a) Meaning (b) Main focus
(c) Means (d) Ends 4
Ans.
29. Inspired by the success of Chandrayaan-3, the Chief Scientist at ‘Space Rover’ a private research group, decided
to send some innovative ideas regarding the mission to the Chief Scientist of Chandrayaan-3.
The Chief Scientist at ‘Space Rover’ formed four groups for the same. As it was an intellectual activity of thinking
rather than doing, these four groups started` interacting with each other and friendships developed. On the basis
of their interaction and friendship, some members from each group formed ‘Entertainment Through Reading’
group which showed conformity in terms of their interest. ‘Entertainment Through Reading’ group had no
written rules, was unstable in form and scope and had no fixed lines of communication. The members of this
group enhanced the morale of each other, enjoyed drinking coffee together, read books, served different issues of
their work areas and provided support to each other.
Ultimately this group developed some innovative ideas which were sent by ‘Space Rover’ to the Chief Scientist
of Chandrayaan-3. Though this group was formed for recreation but it contributed towards fulfillment of
organisational objectives.
(a) Identify and explain the type of organization which emerged as ‘Entertainment Through Reading’.
(b) State any three advantages of the type of organisation identified in (a) above. 4
Topper's Answers-2024 | 9
Ans.
30. (a) Explain the following functions of marketing :
(i) Product Designing and Development.
(ii) Standardisation and Grading 4
OR
(b) Explain the four important elements of marketing mix. 4
Ans.
31. (a) Explain the following characteristics of Principles of Management :
(i) General guidelines
(ii) Flexible
(iii) Cause and effect relationship 6
OR
10 | OSWAAL Exam Rehearsal For BUSINESS STUDIES, Class-12
(b) Explain the following techniques of Scientific Management :
(i) Method Study
(ii) Differential Piece Wage System
(iii) Fatigue Study 6
Ans.
Topper's Answers-2024 | 11
32. (a) Explain the following factors affecting the working capital requirements of a business :
(i) Operating efficiency
(ii) Credit availed
(iii) Level of competition 6
OR
(b) Explain the following factors affecting the dividend decision of a company :
(i) Stability of dividends
(ii) Contractual constraints
(iii) Stock market 6
Ans. (a)
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33. The G20 Summit was organised in India. The government left no stone unturned to make G20 summit a success.
At the higher level, the work to be performed was identified and grouped to enable people to work most effectively
together for accomplishing objectives. This involved building infrastructure, beautification of the city, hospitality,
security arrangements etc. Duties were assigned to different job positions which led to establishment of clear
relationships. This helped in creating a hierarchical structure and in co-ordination amongst all working for the
summit.
(a) Identify and explain the function of management discussed in the above para.
(b) Explain any four points of importance of the function identified in (a) above. 6
Ans.
34. ‘Memo Builders’ was constructing a five star hotel for a leading hotel chain. The hotel had to be given possession
by next year but the construction of the hotel was running six months behind schedule. The Chief Executive
Officer of ‘Memo Builders’ was concerned as Memo Builders was known for its quality and timely completion
of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and
Topper's Answers-2024 | 13
reported to the Chief Executive Officer that inspite of huge absenteeism of workers, additional workers were not
called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers
were defective. Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers
with attractive wages to ensure that the deadline is met.
(a) Identify the function of management. Quoting the lines from the above para, explain the steps of the process
of the function of management discussed.
(b) Also explain any two points of importance of the function of management identified in (a) above. 6
Ans.
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