CBSE Class 12 Business Studies Set 2 - (66/2/2) Question Paper 2026 with Solution PDF

'Stock Exchange is playing a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.'
The above lines highlight which function of stock exchange from the following?

• (A) Providing Scope for Speculation
• (B) Spreading of Equity Cult
• (C) Safety of Transactions
• (D) Contributes to Economic Growth

Neha is working as a Manager at 'NutriBite', a company that makes protein rich snacks which are high in demand. She is responsible for implementing organisation's marketing plans, and ensuring that her department has necessary personnel to achieve goals as per company's policy.
Identify the 'level' of management at which Neha is working:

• (A) Top level
• (B) Middle level
• (C) Operational level
• (D) Both Middle level and Operational level

‘The process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims’ is known as :

• (A) Management
• (B) Planning
• (C) Organising
• (D) Co-ordination

Alka Motors is one of the leading automobile companies in India. Due to growing demand for electric vehicles, Alka Motors planned to expand its business and for this, it wanted to raise funds. The finance manager suggested that it should raise funds through equity as the market was bullish. As per the suggestion of finance manager, the company decided to raise \( \text{₹ } 3,500 \) crore from equity for its expansion plan for electric vehicles.
The factor that the finance manager took into consideration to raise funds through equity was :

• (A) Cash flow position
• (B) Flexibility
• (C) Cost of debt
• (D) Stock-market conditions

'Lima' is a global sportswear brand known for shoes, apparel and sports accessories. Customers can recognize Lima's shoes, t-shirts and bags just by seeing the tiger symbol imprinted on all Lima's products. Lima has legally registered both its name 'Lima' and its tiger symbol so that no other company can legally use the same or similar design in their sportswear.
The tiger symbol is Lima's :

• (A) Brand name
• (B) Brand mark
• (C) Trade mark
• (D) Both Brand mark and Trade mark

Statement-I: Capital market instruments are safer than money market instruments both with respect to returns and principal repayment.
Statement - II: The capital market deals in medium and long-term securities such as equity shares and debentures etc.
Choose the correct option from the following:

• (A) Statement I is true and Statement II is false.
• (B) Statement I is false and Statement II is true.
• (C) Both Statement I and Statement II are true.
• (D) Both Statement I and Statement II are false.

In the 'Primary Market' prices of securities are determined by:

• (A) Management of the company
• (B) Demand and supply of the security
• (C) Employees of the company
• (D) Only demand for the security

'Taylor believed that industrial efficiency depends to a large extent on personnel competencies. He was of the view that the concern for efficiency could be built in right from the process of employee selection. Each person should be scientifically selected. The work assigned should suit her/his capabilities. To increase efficiency, they should be given the required training.'
The principle of scientific management discussed above is:

• (A) Science, not Rule of Thumb
• (B) Harmony, Not Discord
• (C) Cooperation, Not Individualism
• (D) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

Green-Eats is a start-up offering plant based meal kits. It gained popularity as more young consumers were becoming health conscious and awareness about environmental issues was increasing day-by-day. To promote sustainable eating, they collaborated with schools and colleges and organized workshops for them.
Identify the element of business environment highlighted in the above case:

• (A) Economic Environment
• (B) Social Environment
• (C) Political Environment
• (D) Technological Environment

There are two statements, Assertion (A) and Reason (R).
Assertion (A): The dividend in growth companies is more than that in the non-growth companies.
Reason (R) : Companies having good growth opportunities retain more money out of their earnings so as to finance the required investment.
Choose the correct alternative from those 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).

There are two statements, Assertion (A) and Reason (R).
Assertion (A): Controlling should not be misunderstood as the last function of management.
Reason (R): Controlling is a function that brings the management cycle back to the planning function.
Choose the correct alternative from those 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).

Ramesh wanted to buy a room heater as it had become extremely cold. He went to the nearby market in search of a good room heater. He first visited a few big shops selling branded heaters and checked the design, quality and the price. Walking through the market he saw a road side shop displaying an attractive room heater. He walked into the shop to enquire about the room heater. The shopkeeper demonstrated how the heater worked and simultaneously explained its qualities like its rotating function, auto-cut etc. Ramesh asked about its price and decided to buy it, as in comparison to other room heaters, it was cheaper and had various additional features. However while focusing on the price and features, he did not check the ISI mark or the label which displayed the date of manufacturing, safety features, directions for use etc.
The right exercised by Ramesh in the above case is:

• (A) Right to choose/be assured
• (B) Right to be heard
• (C) Right to consumer education
• (D) Right to safety

'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.' The feature of business environment highlighted above is:

• (A) Relativity
• (B) Uncertainty
• (C) Complexity
• (D) Dynamic Nature

The process of estimating the fund requirements of a business and specifying the sources of funds is called

• (A) Trading on Equity
• (B) Capital Budgeting decision
• (C) Financial Management
• (D) Financial Planning

Statement-I: Workforce analysis enables an assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organizational objectives.
Statement-II: Workload analysis reveals the number and type of human resources available.
Choose the correct option from the following:

• (A) Statement-I is true and Statement-II is false.
• (B) Statement-I is false and Statement-II is true.
• (C) Both Statement-I and Statement-II are true.
• (D) Both Statement-I and Statement-II are false.

Identify the incorrect statement with respect to 'Motion Study', as a technique of scientific management:

• (A) Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
• (B) It refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job.
• (C) Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
• (D) This technique helps to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

The question mark in the picture given below represents a financial incentive. Identify the incentive :

• (A) Pay and allowances
• (B) Retirement benefits
• (C) Productivity linked wage incentives
• (D) Perquisites

Identify which of the following functions is Not performed by ‘Top Level Management’ :

• (A) Cooperating with other departments for smooth functioning of the organisation.
• (B) Being responsible for the welfare and survival of the organization.
• (C) Analyzing the business environment and its implications for the survival of the firm.
• (D) Formulating overall organizational goals and strategies for their achievement.

Match the non-financial incentives given in Column I with their meaning given in Column II :

• (A) a-ii, b-iii, c-i, d-iv
• (B) a-i, b-iv, c-ii, d-iii
• (C) a-iv, b-i, c-iii, d-ii
• (D) a-iii, b-ii, c-iv, d-i

NV Electronics has an innovative range of smartphones, T.V's, home entertainment systems, kitchen appliances and air conditioners. Besides supplying quality products, their focus is also on handling customer complaints speedily, providing maintenance services, procuring credit services etc. The function of marketing discussed above is:

• (A) Branding
• (B) Marketing Planning
• (C) Product designing and development
• (D) Customer support services

State any three features of Management.

State any three points of significance of Business Environment.

Identify and explain the external source of recruitment discussed in each of the following cases:
(i)Veer Infrastructure Pvt. Ltd. was handling the construction of a government hospital building in Unedabad. During the monsoon season, the project was delayed and there was a sudden rush of work to meet the deadline. The site supervisor placed a notice at the entrance of the construction site stating “Daily wage labourers needed for 15 days. Report with Identity Proof on Monday at 9:00 A.M. Preference for workers with experience in masonry or carrying materials”.

Identify and explain the external source of recruitment discussed in each of the following cases:
(ii)Vista Bank planned to expand its retail banking operations in Tier-2 and Tier-3 cities. They needed to hire over 200 middle-level managers with experience in sales, customer service and operations. Vista Bank approached ‘Avon Consultants’, one of India’s leading management consultancy firms. ‘Avon Consultants’ advertised positions on job portals under their own name and also accessed its database of experienced professionals across India. After extensive screening, they shortlisted and forwarded qualified candidates to Vista Bank.

Riya, a software engineer wanted to invest a part of her savings in the stock-market. Encouraged by some online discussions, she came across a company ‘Smart-Tech Ltd.’, whose stock price was rising very fast. News began to circulate that company had got a large government contract and she believed that its share price would double soon. Convinced by the positive claims, Riya also invested in the shares of this company. Over the next week, the shares continued to rise but suddenly, the price started crashing. Within days, her investment had lost more than 60 value.
Riya started researching and discovered that the news about the government contract was false. Securities and Exchange Board of India (SEBI) also took immediate notice of the situation and called for detailed trading information and conducted enquiries and inspections. After examining trading information and conducting enquiries, SEBI found that a group of traders had spread false information to artificially boost the stock price. By taking action against the group of traders, SEBI made it clear that fraudulent and unfair trade practices are strictly prohibited.
(i) Quote lines from the above to identify the two functions being performed by SEBI.

Explain 'Transfers' and 'Promotions' as internal sources of recruitment.

Explain 'Placement and Orientation' and 'Performance Appraisal' as steps in the process of 'Staffing' function of management.

Meera purchased a mixer-grinder of a reputed brand from a well-known electronic store for \( \text{₹} 5,000 \). Within ten days, the mixer-grinder stopped working. Meera visited the shop for repair or replacement showing the cash memo and the warranty card but the shopkeeper refused to help her. Though the product was only for \( \text{₹} 5,000 \), she filed a complaint at the District Consumer Disputes Redressal Forum.
The Forum ordered the store to replace the product within 30 days. They also added \( \text{₹} 1,000 \) as compensation for mental harassment and \( \text{₹} 800 \) for legal costs.

State two responsibilities fulfilled by Meera and two reliefs which Meera got through Consumer Redressal Forum.

State any four merits of internal sources of recruitment.

State any four benefits of training to the organization.

Fresh Foods Pvt. Ltd. manufactures and distributes organic packaged food products. It’s operations are divided into five main departments – Production, Marketing, Finance, Human Resources and Research and Development. Each department has its own head and a team that focuses only on the work related to their department. This promotes efficiency in utilization of manpower as employees perform similar tasks within a department and are able to improve performance. This also helps in increasing managerial and operational efficiency and results in increased profit.
Since each department handles a narrow range of tasks and focus is on a limited range of skills, it is easier to train new employees.

(i) Identify the organization structure followed by Fresh Foods Pvt. Ltd.

‘Priya Motors’, a motorbike manufacturing company, launched a new model of bike in the market named ‘Moto Glide III’. The company planned carefully to make this bike appeal to young riders. The design team focused on making the bike attractive and stylish to the target customers, primarily the youth. They gave it a sleek body, sharp headlights and a digital speedometer. The design made the bike not just look good but also improved its aerodynamics and fuel efficiency. This helped the company stand out from other brands, thereby getting a competitive edge. The company followed strict quality standards in making each part of the bike which helped in achieving uniformity and consistency in output. ‘Priya Motors’ also offered different versions of bike with different prices based on features like Bluetooth connectivity, colour options etc. Identify and explain two functions of marketing discussed above.

Explain the following limitation of planning :
(i) Planning reduces creativity

Explain the following limitation of planning :
(ii) Planning involves huge costs

Explain the following point of importance of Decentralisation :
(i) Quick decision-making

Explain the following point of importance of Decentralisation :
(ii) Relief to top management

Aditya owned a skincare company named ‘Nat-Ayur’. In July, 2025, he decided to launch a new herbal face cream in the market using traditional herbs like turmeric, sandalwood, neem, aloe vera, saffron etc. The total cost of producing, packaging, distributing and selling the cream came to ` 60 per tube. ‘Nat-Ayur’ decided that this would be the minimum price to cover the cost. They wanted to earn a fair margin of profit too. For this ‘Nat-Ayur’ conducted a survey and found that the expected demand would be high. Customers were ready to pay more for herbal and chemical free products. They also found that many face creams with similar features are available in the market priced between ` 80 to ` 120. To compete effectively, ‘Nat-Ayur’ decided to price the cream at ` 99 to attract the customers while offering better benefits. To add value to the product ‘Nat-Ayur’ invested in eco-friendly packaging, free home delivery and on-line advertisements. This uniqueness gives ‘Nat-Ayur’ a competitive freedom in fixing price of its cream. Identify and explain any two factors that were taken into consideration by ‘Nat-Ayur’ for determining the price of their herbal face cream.

Explain ‘Harmony, Not Discord’ as a principle of Scientific Management and ‘Method Study’ and ‘Standardization and Simplification of Work’ as techniques of Scientific Management.

Explain the following principle of General Management :
(i)Division of work

Explain the following principle of General Management :
(ii)Discipline

Explain the following principle of General Management :
(iii)Equity

Greener Organic is a company producing eco-friendly fertilizers and soil boosters. With the growing interest in organic farming, the company is planning to expand its operations across India.

Greener sets its target to increase its sales by \( 25\% \) in the next year. This gave all departments – sales, production, marketing and logistics – a common target to work. To achieve this, Greener made a comprehensive plan to enter Tier-2 and Tier-3 cities by working with local farmer groups. They also plan to promote their brand through on-line campaigns focused on eco-friendly farming. The company also laid down broad parameters within which the managers could function. All raw materials used had to be certified organic and preferably sourced from local farmers. This would improve quality, support local people and build trust with customers. The company allocated \( \text{₹} 50 \) lakhs for marketing, which included funds for regional newspaper advertisements, digital marketing, promotional events and dealer incentives. By quantifying future facts and figures, the company planned to control costs and evaluate performance.

Identify and explain any four type of plans discussed in the above case.

‘Freshju’ is a trading company, selling bottled juices made by other manufacturers. Now, it planned to sell its juices across India. For this, ‘Freshju’ decided to enter into ‘Juice manufacturing’. It also has ambitious plans to export its juices to other countries in the future. To meet anticipated higher demand in future, the company set-up a larger manufacturing unit. The Chief Executive Officer, Ravinder, ordered automatic juice-filling and bottling machines to increase speed, improve hygiene and for consistency in production. Since the investment was huge, instead of buying all new machinery ‘Freshju’ took some expensive machines on lease. They also collaborated with a nearby packaging unit to use their packing machines during peak-season. This helped ‘Freshju’ to manage seasonal surges in demand without investing in additional equipment that would remain underutilized during off season. Quoting lines from the above, identify and explain any four factors that will affect the fixed capital requirements of ‘Freshju’.

Explain any four personal barriers to communication.

Explain any four points of importance of controlling function of management.