CBSE 12th Half-Yearly Exam 2025-26

Business Studies
Sample Practice Paper

Time allowed: 3 hours Maximum 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) Answers should be brief and to the point.
(iv) Questions 1-20 are Multiple Choice Questions (MCQs) for one mark each.
(v) Questions 21-24 carry 3 marks each.
(vi) Questions 25-30 carry 4 marks each.
(vii) Questions 31 to 34 carry 6 marks each.
(viii) Answers to the questions carrying 3 marks may be from 50 to 75 words.
(ix) Answers to the questions carrying 4 marks may be in about 150 words.
(x) Answers to the questions carrying 6 marks may be in about 200 words.
(xi) Attempt all parts of a question together.
SECTION A: MULTIPLE CHOICE QUESTIONS (1 mark each)
Q1. Management is considered to be a goal-oriented process. This characteristic implies that management:
(a) Is continuously performed by all managers.
(b) Unites efforts of individuals towards achieving organisational goals.
(c) Adapts itself to the changing environment.
(d) Cannot be seen but its presence can be felt.
Q2. Which of the following statements is correct about the nature of management as a science?
(a) Its principles have universal validity and application.
(b) It deals exclusively with human behaviour and its outcomes are accurately predictable.
(c) It is a systematized body of knowledge drawing on other disciplines like Economics and Sociology.
(d) It does not have its own theory and principles.
Q3. The principle of management that emphasizes kindliness and justice in the behaviour of managers towards their
workers, ensuring loyalty and devotion, is:
(a) Division of Work
(b) Authority and Responsibility
(c) Discipline
(d) Equity
Q4. According to Fayol, what is the 'Gang Plank'?
(a) A formal route for communication from top to bottom.
(b) A special team for emergency decision-making.
(c) A shorter route allowing direct communication between employees at the same level but in different chains of command.
(d) A method for workers to report directly to the CEO.
Q5. Which of Taylor's techniques aims at eliminating superfluous varieties, sizes, and dimensions of a product?
(a) Functional Foremanship
(b) Time Study
(c) Simplification of Work
(d) Differential Piece Wage System
Q6. The "growing trend towards healthy consumption habits" is an example of a factor belonging to which dimension of the
business environment?
(a) Economic Environment
(b) Political Environment
(c) Social Environment
(d) Legal Environment
Q7. Which of the following is not a feature of the business environment?
(a) Totality of external forces
(b) Predictability
(c) Inter-relatedness
(d) Dynamic nature
Q8. Assertion(A): Planning is a primary function of management.
Reason (R): Planning lays down the base for other functions of management and precedes them.
Choose the correct alternative:
(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).
Q9. Which type of plan is a statement of expected results expressed in numerical terms, used to quantify future facts and
figures?
(a) Objective
(b) Policy
(c) Rule
(d) Budget
Q10. "A manager takes decisions considering the overall goals of the organisation, rather than personal preferences, when
deciding annual budgets for different departments." This demonstrates which aspect of the significance of principles of
management?
(a) Providing managers with useful insights into reality
(b) Optimum utilisation of resources and effective administration
(c) Scientific decisions
(d) Fulfilling social responsibility
Q11. Organising leads to reduced workload and enhanced productivity due to employees performing specific jobs on a
regular basis. This highlights which importance of organising?
(a) Clarity in working relationships
(b) Benefits of specialisation
(c) Effective administration
(d) Development of personnel
Q12. In which type of organisational structure are divisional heads accountable for profits, as revenues and costs related to
different departments can be easily identified and assigned to them?
(a) Functional Structure
(b) Divisional Structure
(c) Formal Structure
(d) Informal Structure
Q13. In the context of delegation, when an employee is given responsibility for a job, what else must they also be given to
effectively carry it out?
(a) More subordinates
(b) Adequate training
(c) The degree of authority necessary
(d) A higher salary
Q14. Which of the following is not a limitation of internal sources of recruitment?
(a) Reduces scope for fresh talent
(b) Employees may become lethargic
(c) It is a costly process
(d) Hampers competitive spirit
Q15. The selection test that measures an individual's potential for learning new skills and indicates their capacity to develop
is called a/an:
(a) Intelligence Test
(b) Aptitude Test
(c) Personality Test
(d) Trade Test
Q16. The final step in the staffing process, which involves establishing wage and salary plans and other rewards for
employees, is known as:
(a) Performance Appraisal
(b) Promotion and Career Planning
(c) Compensation
(d) Training and Development
Q17. Which of Maslow's needs are satisfied by factors such as self-respect, autonomy, status, recognition, and attention?
(a) Basic Physiological Needs
(b) Safety/Security Needs
(c) Affiliation/Belonging Needs
(d) Esteem Needs
Q18. A manager explaining to a worker the operations to be carried out on a machine is an example of which element of
directing?
(a) Motivation
(b) Leadership
(c) Supervision
(d) Communication
Q19. Assertion (A): Controlling is a backward-looking function.
Reason (R): Controlling is like a postmortem of past activities to find out deviations from the standards.
Choose the correct alternative:
(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).
Q20. When control focuses only on Key Result Areas (KRAs) which are critical to the success of an organisation, it is known
as:
(a) Management by Exception
(b) Critical Point Control
(c) Budgetary Control
(d) Strategic Control
SECTION B: SHORT ANSWER TYPE QUESTIONS (3 marks each)
Q21. 'Unity of action' is a crucial outcome of a specific management concept.
(i) Identify and explain the concept being referred to.
(ii) State any two characteristics of this concept.

Q22.
(a) Give the meaning of ‘Communication’. State the first two elements in the process of communication.
OR
(b) State any three ‘Organisational barriers’ to Communication.

Q23. Madhavan 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
Madhavan must perform in addition to the above as a Human Resource Manager of Health Grow Ltd.

Q24.
(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.

SECTION C: SHORT ANSWER TYPE QUESTIONS (4 marks each)

Q25.
(a) State any four points of importance of the ‘Directing’ function of Management.
OR
(b) State any four limitations of internal sources of recruitment.

Q26.
(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

Q27. "GreenBloom Organics" is a company that sells organic fertilizers and pesticides online. Recently, a customer, Ms. Riya,
purchased a pesticide product, which was advertised as "100% natural and safe for all plants." After applying it, she noticed
that her plants started wilting. Upon closer inspection, she found a tiny label on the back of the package, in extremely small
print, stating that it was not suitable for "flowering plants." She immediately contacted GreenBloom Organics. The company's
customer service representative apologized profusely, arranged for a full refund, and sent her a complimentary organic pest
control product that was genuinely safe for flowering plants, along with detailed usage instructions.
Identify and explain the two consumer rights discussed in the above case.

Q28. "FutureTech Innovations", an AI startup established in 2023, is experiencing rapid growth. To fund its expansion and
invest in advanced research and development, the company needs ₹ 50 crores. The Chief Financial Officer suggested that the
company could raise these funds by issuing new shares to the public for the first time.
(i) Name the type of capital market through which 'FutureTech Innovations' decided to raise funds for its expansion. (ii) State
three features of the market identified in (i) above.
Q29. Rahul and Meena are employees at "Global Solutions Ltd.", a software development firm. Rahul has been working as
a temporary employee for two years and is keen on job stability. Meena, a senior developer, values personal growth and
opportunities to lead projects. The management decided to offer Rahul a permanent position with comprehensive health
insurance and a provident fund scheme. Meena was assigned as the lead for a new, challenging project, giving her significant
autonomy and recognition within the team.
(i) Identify and state the need of employees recognized by the management in the above case, for both Rahul and Meena,
according to Maslow's Need Hierarchy Theory.
(ii) State any two assumptions on which Maslow’s Need Hierarchy Theory is based on.

Q30. "Elite Electronics Ltd." is a well-established company manufacturing high-end electronic gadgets. The company has a
diverse shareholder base, with many individual investors relying on a steady income from their investments. The company
has maintained consistent profitability over the years. The Board of Directors always considers the shareholders' preference
for regular dividends. However, the Finance Manager, Ms. Priya, recently identified a significant opportunity for the company
to invest in developing a new, cutting-edge technology that could give them a major competitive advantage. She
recommended retaining a larger portion of the earnings to fund this investment, rather than distributing a high dividend
every year.
(i) Identify two factors affecting the dividend decision discussed above.
(ii) State two other factors that affect the dividend decision of a company.

SECTION D: LONG ANSWER TYPE QUESTIONS (6 marks each)

Q31.
(a) Explain the following principles of General Management as given by Henri Fayol: (i) Scalar Chain (ii) Equity (iii) Initiative
OR
(b) ‘Objectives of Management can be classified into organisational, social and personal objectives.’ Explain these objectives.

Q32.
(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.

Q33. "Sparkle Clean Ltd.", a company manufacturing eco-friendly cleaning products, has recently developed a new
automatic floor cleaner for commercial use. This machine is designed to be highly efficient, using minimal water and
biodegradable cleaning agents. It features a sleek, ergonomic design and is made from recycled materials, ensuring a
sustainable mode of operation. Sparkle Clean Ltd. has obtained necessary environmental certifications for its product. Priced
at ₹ 1,50,000, the company is deliberating on offering seasonal discounts and flexible payment plans to appeal to commercial
buyers and ensure they perceive its price aligns with its value.
To ensure the machine reaches its target customers (commercial establishments like offices, hotels, and hospitals), Sparkle
Clean Ltd. is in the process of identifying suitable distributors and service partners, as well as providing them with necessary
product training and support.
To communicate the unique features, benefits, and availability of this new product, Sparkle Clean Ltd. plans to launch
targeted digital campaigns, issue press releases in industry journals, and organize live demonstrations at trade shows
conducted by company representatives and industry experts.
The above case describes the combination of elements used by Sparkle Clean Ltd. to prepare its market offering. Quoting
lines from the above paragraph, identify and explain these elements.

Q34. "Global Games Inc." is a leading company in the entertainment industry, known for its diverse range of products
including video games, board games, and educational toys. Its organisational structure is designed to facilitate the
achievement of its objectives in alignment with its mission to bring joy and learning to families worldwide. The company
maintains three distinct product divisions: 'Video Games', 'Board Games', and 'Educational Toys'.
Looking ahead, the company is focusing on embracing changes to continue meeting market demands. As part of its expansion
plans, it is considering venturing into the 'Virtual Reality (VR) Experiences' segment in the near future.
(i) Identify the organisational structure of 'Global Games Inc.'.
(ii) Draw the organisational structure chart of 'Global Games Inc.' considering its future plans to enter the 'Virtual Reality
(VR) Experiences' segment.
(iii) State any three advantages of the type of organisational structure drawn in (ii) above.