CBSE Class 12 Business Studies Sample Paper 2017 (3)

CBSE Class 12 Business Studies Sample Paper 2017 (3). It’s always recommended to practice as many sample papers as possible before the examinations. Students can download the sample papers and also question papers of previous years to practice and score better marks in examinations. Refer to other links too for more sample papers.

1. What do you mean by capital structure? 1

2. A Cosmetics Manufacturing Co. claims in advertisement that its face cream improves the face complexion. On using it was found incorrect. Here which values are being ignored? 1

3. A wholesaler of onion comes to know that due to less production the prices of onion will increase heavily. He stores the onion during rising prices. He earns heavy profits by selling the stored onion. From the earned profits he provides some money for social activities also. In this situation which values are affected here? 1

4. "Controlling is forward looking." How can this be ensured? 1

5. On Sonica's birthday her mother gave her a pair of gold earrings. After one month Sonica observed that the ear-rings are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she filed a complaint in the District Forum which rejected it. Not satisfied by the decision of District Forum, she was very . much disturbed and after two months decided to appeal further. Can Sonica appeal against the decision of the District Forum? Give reason in support of your answer. 

6. A manufacturer of electronic product produces such products which need special care while using it. But the Co. has not given the instructions to consumers. If you are the manager of that Co. What steps you would take? 1

7. In a company the employees achieved quantitative standards but could not attain qualitative standards. Which values have been ignored here? 1

8. List two characteristics of a good brand name. 1

9. 'Financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.' Explain any three such functions. 3

10. Explain how the 'product related factors' affect the choice of channels of distribution. 3

11. Manish is engaged in the business of Garment manufacturing. Generally he used to sell his garments in Delhi. Identify the working capital requirements of Manish giving reasons in support of your answer. Further, Manish wants to expand and diversify his garment business. Explain any two factors that will affect his fixed capital requirements. 3

12. 'Suresh Steel Ltd.' is a large and credit-worthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decided to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money-market.

(a) Name and explain the money-market instrument the company can use for the above purpose.

(b) What is the duration for which the company can get funds through this instrument?

(c) State any other purpose for which this instrument can be used. 3

13. Distinguish between Capital Market and Money Market on the basis of :

(a) Participants

(b) Duration 3

14. Explain the following rights of a consumer as provided under Consumers Protection Act 1986:

(a) Right to choose; and

(b) Right to consumer education. 4

15. Define controlling. Discuss the relationship between planning and controlling. 4

16. 'R' Limited is a real estate company which was formed in 1950. In about 56 years of its existence the company has managed to carve out a niche for itself in this sector. Lately, this sector is witnessing a boom due to the fact that the Indian economy is on the rise. The incomes of middle class are rising. More people can afford to buy homes for themselyes due to easy availability of loans and accompanying tax concessions. To expand its business in India and abroad the company is weighing various options to raise money through equity offerings in India. Whether to tap equity or debt market, whether to raise money from Domestic market or International market or Combination of both?, whether to raise the necessary finance from money market or capital market? It is also planning to list itself in New York Stock Exchange to raise money through ADR's. To make its offerings attractive it is planning to offer host of financial plans products to its stakeholders and investors and also expand its listing at NSE after complying with the regulations of SEBI.

(i) What are the regulations of SEBI that the company must comply with?

(ii) How does the SEBI exercise control over 'R' Limited in the interest of investors? 4

17. The Directors of a company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for the new public issue of shares. Advice the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advice about the different methods which the company may adopt for the new public issue of shares. 4

18. Explain the objectives of SEBI. 4

19. A sales man approaches you to promote the sales of a 'water purifier'. Which communication tool is the marketer using by sending a salesman at your door-step? Explain any two qualities of a good salesman. 4

20. Anahita purchased a book from Marvelous Book Stores . While reading the book she found that ten pages were missing. She approached the seller of the book and complained about the missing pages. The seller promised that if the publisher was ready to change the book he would change the same. After a week the seller informed Anahita that the publisher had refused to change the book. Where can Anahita file a complaint against the seller of the book? Give reasons in support of your answer. Also, explain who is a consumer as per 'Consumer Protection Act 1986'. 5

21. What are the factors affecting determination of the price of a product or service? Explain. 5

22. A company 'M' Limited is manufacturing mobile phones both for Domestic Indian market as well as for export. It had enjoyed a substantial market share and also had loyal customers following it. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.


1. Identify the benefits the company will derive from a good control system.

2. Give the steps in the control process that the company should follow to remove the problems it is facing. 5

23. 'Grand' is a famous chain store, selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discount to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products' through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales. The above paragraph describes the combination of variables used by Grand to prepare its market offering. Identify and explain the variables. 6

24. 'Though advertising is one of the most frequently used medium of promotion of goods and services, yet it attracts a lot of objections.' Explain such objections. 6

25. 'Sarah Ltd.' is a company manufacturing Cotton yarn. It has been consistently earning good profits for many years. This year too, it has been able to generate enough profits. There is availability of enough cash in the company and good prospects for growth in future. It is a well managed organisation and believes in quality, equal employment opportunities and good remuneration practices. It has many shareholders who prefer to receive a regular income from their investments. It has taken a loan of 40 lakhs from IDBI and is bound by certain restrictions on the payment of dividend according to the terms of loan agreement. The above discussion about the company leads to various factors which decide how much of the profits should be retained and how much has to be distributed by the company. Quoting the lines from the above discussion identify and explain any four such factors.

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