CBSE Class 12 Business Studies Exam Board MCQs Set 01

Multiple Choice Questions (MCQs) for Class 12 Business Studies: Exam Board

Access targeted multiple-choice questions for Exam Board designed to align with the latest CBSE academic syllabus for Class 12 Business Studies. These objective practice sets help students evaluate their conceptual understanding and improve exam readiness.

Practice Exam Board MCQs for Class 12 Business Studies

View or download the dedicated Exam Board MCQ resource below. Practicing these 50 objective questions regularly builds familiarity with standard exam patterns and helps secure higher marks in final Business Studies evaluations.

Question. Which deviation is the most important?
a) Negative
b) Positive
c) Both (a) and (b)
d) All of the options

Answer: A

Question. ________________ is not included in the controlling process.
a) Measurement of actual performance.
b) Comparison of actual performance with standards.
c) Doing work of financial management.
d) Analysing deviations

Answer: C

Question. Which type of nature the control has?
a) Positive approach
b) Negative approach
c) Both (a) and (b)
d) None of the options

Answer: C

Question. An efficient control system helps to:
a) Achieve objectives
b) Boost employee’s Morale
c) Efficient use of resources
d) All of these

Answer: D

Question. An efficient control system helps to:
a) Accomplish organisational objectives
b) Boost employee’s morale
c) Judge accuracy of standards
d) All of the options

Answer: D

Question. Controlling function of an organisation is:
a) Forward looking
b) Backward looking
c) Forward as well as backward looking
d) None of the options

Answer: C

Question. How does a manager want to achieve his objectives?
a) Efficiently
b) Effectively
c) Efficiently and Effectively
d) None of the options

Answer: C

Question. What type of force management is:
a) Visible
b) Invisible
c) Separate
d) None of the options

Answer: B

Question. By evaluating results what does management try to find out and then takes corrective actions?
a) Profit
b) Loss
c) Deviations
d) None of the options

Answer: C

Question. In the context of business what does research refer to?
a) Finding out new products
b) Finding out new markets
c) Finding out new methods of distribution
d) All of the options

Answer: D

Question. What happens when the management of an organisation gets weakened?
a) Organisation progresses
b) Production increases
c) Profit increases
d) Organisation faces heavy loss

Answer: D

Question. Which one of the following sequence of process of management is correct?
a) Directing, planning, controlling, organising, staffing
b) Directing, staffing, planning, organising, controlling
c) Planning, organising, staffing, directing, controlling
d) Organising, planning, staffing, controlling, directing

Answer: C

Question. Management is:
a) An activity
b) A process
c) A tradition
d) An illusion

Answer: B

Question. Management ensures:
a) Providing employment opportunities
b) Maintaining profit
c) Ensuring maximum utilisation of resources
d) Control on cost

Answer: C

Question. Management is important because:
a) It helps in achieving group goals
b) It helps in development of society
c) It increases efficiency
d) All of the options

Answer: D

Question. Which tool of promotion mix involves direct face-to-face conversation with prospective customer?
a) Sales promotion
b) Personal selling
c) Advertisement
d) Publicity

Answer: B

Question. Manager + Leadership ability = __________________
a) Loss
b) Success
c) Failure
d) Nothing (Zero)

Answer: B

Question. ___________ is necessary for the existence of a leader.
a) Manager
b) Employee
c) Follower
d) Worker

Answer: C

Question. Which of the following is the characteristic of leadership?
a) Influencing process
b) Physical features
c) Knowledge
d) Integrity

Answer: A

Question. Which of the following leadership styles has the specialty of centralized authority?
a) Autocratic leadership style
b) Democratic leadership style
c) Free-rein leadership style
d) None of the options

Answer: A

Question. From which of the following leadership styles yields the advantage of high level motivation?
a) Autocratic leadership style
b) Democratic leadership style
c) Free-rein leadership style
d) None of the options

Answer: C

Question. In order to complete the process of communication, there should at least be________________ persons.
a) One
b) Two
c) Three
d) Four

Answer: B

Question. During the process of communication there is an exchange of______________.
a) Ideas
b) Orders
c) Feelings
d) All of the options

Answer: D

Question. In the process of communication, feedback aims at knowing_______________________________________.
a) Message has been properly received
b) Message has been understood
c) Both the above
d) Message has been followed

Answer: C

Question. ________________ is an example of the medium of communication.
a) Letter
b) Telephone
c) E-Mail
d) All of the options

Answer: D

Question. Loss of letter during the process of communication is the example of____________________.
a) Decoding
b) Message
c) Encoding
d) Noise of the options

Answer: D

Question. ‘Wrong interpretation of message’ – what type of communication barrier is it?
a) Semantic
b) Emotional
c) Organisational
d) Personal

Answer: A

Question. ‘Lack of attention’ – What type of communication barrier is it?
a) Semantic
b) Emotional
c) Organisational
d) Personal

Answer: B

Question. Which of the following is the personal communication barrier?
a) Fear of challenge to authority
b) Organisational Policies
c) Unclarified assumptions
d) Premature evaluation

Answer: A

Question. Which of the following communication spreads rumours?
a) Formal
b) Informal
c) Written
d) All of the options

Answer: B

Fill in the blanks

Question. The bar council of India is a representative organisation of___________________________.
Answer: Legal profession

Question. On the basis of _____________________________management can be called a full-fledged profession.
Answer: Special knowledge in technical skill

Question. Creative power is the speciality of _______________________
Answer: Art

Question. Distribution of work is the basis of____________. (Planning/Organising)
Answer: Organising

Question. The ___________ is regarded as the machine of management. (Planning/Organising)
Answer: Organising

Question. _____________ yields a company benefits of specialisation.
Answer: Organising

Question. Organising is helpful in fixing the___________________. (Accountability/Volume of profit.
Answer: Accountability

Question. ___________ gives a clear account of different duties to be performed and authority received by each worker. (Controlling/Organising)
Answer: Organising

Question. Organisational structure is the result of the process of________________. (Planning/Organising)
Answer: Organising

Question. _______________ can be defined as the framework within which managerial and operating tasks are performed. (Organisational structure/Planning)
Answer: Organisation structure

Question. ________________ organisation refers to the organisation structure which is designed by the management to accomplish a particular task. (Formal/Informal)
Answer: Formal

Question. ____________ organisation makes it clear who will report to whom. (Formal/Informal)
Answer: Formal

Question. ___________ organisation has no place on the organisation chart. (Formal/Informal)
Answer: Informal

Question. _____________ refers to giving the employee more freedom to take decisions. (Employee Empowerment/Job security)
Answer: Employee empowerment

Question. ____________ is an important financial incentive. (Status/Bonus)
Answer: Bonus

Question. Under_____________ communication, there is a prescribed path for sending messages from one person to another. (Formal/Informal)
Answer: Formal

Question. _____________________________ is a limitation of formal communication. (Overload of work/Unsystematic communication)
Answer: load of work

Question. _____________ is an example of semantic barrier. (Faulty translation/Distrust)
Answer: Faulty translation

Question. Absence of appropriate incentive comes under the___________ barrier of communications. (Personal/Organisational)
Answer: Personal

Question. Unwillingness to communicate is an example of ___________ barrier. (Personal/Psychological)Answer
Answer: rsonal

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FAQs

Where can I access latest CBSE Class 12 Business Studies Exam Board MCQs Set 01?

You can get most exhaustive CBSE Class 12 Business Studies Exam Board MCQs Set 01 for free on StudiesToday.com. These MCQs for Class 12 Business Studies are updated for the 2026-27 academic session as per CBSE examination standards.

Are Assertion-Reasoning and Case-Study MCQs included in the Business Studies Class 12 material?

Yes, our CBSE Class 12 Business Studies Exam Board MCQs Set 01 include the latest type of questions, such as Assertion-Reasoning and Case-based MCQs. 50% of the CBSE paper is now competency-based.

How do practicing Business Studies MCQs help in scoring full marks in Class 12 exams?

By solving our CBSE Class 12 Business Studies Exam Board MCQs Set 01, Class 12 students can improve their accuracy and speed which is important as objective questions provide a chance to secure 100% marks in the Business Studies.

Do you provide answers and explanations for CBSE Class 12 Business Studies Exam Board MCQs Set 01?

Yes, Business Studies MCQs for Class 12 have answer key and brief explanations to help students understand logic behind the correct option as its important for 2026 competency-focused CBSE exams.

Can I practice these Business Studies Class 12 MCQs online?

Yes, you can also access online interactive tests for CBSE Class 12 Business Studies Exam Board MCQs Set 01 on StudiesToday.com as they provide instant answers and score to help you track your progress in Business Studies.