CBSE Class 12 Business Studies Question Paper 2024 Solved

Questions no. 1 to 20 are Multiple Choice Questions (MCQs), carrying 1 mark each.

1. For taking the company out of losses, Ravi Kumar took over as the Managing Director of the struggling ‘Vova Watch Company’ in January 2020. As soon as he joined, he tried to find out the reason for the company not doing well. He found that the employees were not involved in decision-making and they had to just follow orders, resulting in low morale of employees.
Recognising the need for change, Ravi Kumar started on a journey to bring back the enthusiasm and motivation of the employees. He initiated open dialogues and encouraged them to actively participate in decision-making. Together, they developed action plans to address the company’s challenges regarding outdated designs and inefficient production processes etc.
As time passed, ‘Vova Watch Company’ transformed from a struggling enterprise to a profit making enterprise. Identify the leadership style of Ravi Kumar :
(A) Autocratic leadership style
(B) Democratic leadership style
(C) Free-rein leadership style
(D) Both (A) and (B)

Answer : b

2. Which of the following is an element of ‘Social Environment’ ?
(A) Rates of saving and investment
(B) Expectations from the workforce
(C) The nature of relationship of our country with foreign countries
(D) Planned outlay in public and private sectors

Answer : b

3. Statement I : Delegation is the entrustment of responsibility and authority to another, and the creation of accountability for performance.
Statement II : Irrespective of the extent of delegated authority, the manager shall still be accountable to the same extent as before delegation.
Choose the correct option from the following :
(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.

Answer : c

4. ____________ refers to doing the task correctly and with minimum cost.
(A) Effectiveness
(B) Coordination
(C) Process
(D) Efficiency

Answer : d

5. ‘Dovex’ was a large company with a renowned name in healthcare industry, specialising in the development and production of life saving medications and medical devices. With a strong reputation for ethical practices, ‘Dovex’ attracted a large number of investors who had great faith in the company’s future. This allowed ‘Dovex’ to raise capital easily from the market whenever expansion or new projects were to be undertaken. As a result, it could pay high dividends to the shareholders.
The factor affecting dividend decision discussed above, which allowed ‘Dovex’ to pay high dividends to the shareholders is :
(A) Cash flow position
(B) Stock market reaction
(C) Legal constraints
(D) Access to capital market

Answer : d

6. ‘‘It is a career oriented process designed to help the employees in the progress towards maturity and actualization of their potential capabilities.’’ Identify the process :
(A) Staffing
(B) Selection
(C) Development
(D) Training

Answer : c

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