CBSE Class 12 Business Studies Sample Paper 2018 (6)

CBSE Class 12 Business Studies Sample Paper 2018 (6). 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.

Q1. Name the function of marketing which is concerned with the cost and location of target market.

Ans. Transportation 1

Q2. Rizul Bhattacharya after leaving his job wanted to start a private Ltd. company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investmentwould be required regularly in this business. Therefore he convinced his son to start a furniture business. Identify the factor affecting fixed capital requirement which made Rizul Bhattacharya to choose furniture business over mobile phones.

Ans. Technology upgradation. 1

Q3. Name and state the aspect of financial management that enables to foresee the fund requirements both in terms of ‘the quantum’ and ‘the timings’. 1

Ans. Financial planning.

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


Financial planning is the preparation of a financial blue print of an organization’s future operation

Q4. Name the type of organizational structure which promotes flexibility and initiative. 1

Ans. Divisional structure.

Q5. Suman bought a box of cheese of a reputed brand from the local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company.Within a week the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her. State the consumer right which Suman exercised. 1

Ans. Rights to safety which states that the consumer has a right to be protected against goods and services which are hazardous to life and those which do not confirm to the safety norms.


Right to seek redressalwhich state that a consumer has a right to get relief such as replacement of product, removal of defect in the product, compensation for any loss or injury suffered by the consumer in case the product or service falls short of his expectation.

Q6. ‘Ismanagement concerned onlywith doing the right task, completing activities and achieving goals without taking into consideration the cost benefit?’ Give reason in support of your answer.

Ans. No, management is not only concerned with doing the right task, completing activities and achieving goals but also has to take into consideration the cost benefit i.e. doing the task correctly and with minimum cost. 1

Q7. Give the meaning of ‘Delegation’. 1

Ans. Delegation is the transfer of authority from superior to subordinate, entrustment of responsibility and creation of accountability for performance.

Q8. State the role of ‘inspector’ in functional foremanship. 1

Ans. The role of ‘inspector’ as a foreman in function foremanship is to check the quality of work.

Q9. State any three limitation of planning function of management. 3

Ans. Limitation of planning (any three)

(a) It lead to rigidity because once a well-defined plan is drawn, the managers may not be in the position to change it.

(b) It may not work in a dynamic environment as it is difficult to accurately assess future trends in the environment.

(c) planning is time- consuming process: sometimes, plan to be drawn up take so much of time that there is not much time left for their implementation.

Q10. Mr. Vikas Mehra was the chairman of ‘IBM Bank’. The bank was earning good profit. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of ‘UK Bank’. Mr. Vikas Mehra knew that the share price of ‘IBM Bank’ would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest Rs 4 crores in shares of his bank promising him the capital gains. As expected after the announcement, the shares prices went up by 50% and the market price of Mukand’s shares was now Rs 6 crores. Mukand earned a profit of Rs 2crores. He gave Rs 1crore toVikas Mehra and kept Rs 1crorewith him.On regular inspection and by conducting enquiries of the brokers involved, securities and exchange board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra. Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case. 3

Ans. Functions that were performed by SEBI in the above case were:

(1) Regulatory function ‘On regular inspection and by conducting enquiries of the brokers involved securities and exchange board of India (SEBI) was able to detect this irregularity.’ SEBI can call for information by undertaking inspection. Conducting enquiries and audits of stock exchanges and intermediaries.

(2) Protective function ‘The SEBI imposed a heavy penalty on Vikas 4Mehra.’

SEBI controls insider trading and imposes penalties for such practices.

Q11. What is meant by a consumer as per the provision of consumer protection act, 1986? 3

Ans. Under the consumer protection act a consumer means:

(a) Any person who buys any good for a consideration,which has been paid or promised, or partly paid and partly promised or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtain goods for re-sale or any commercial purpose.

(b) Any person who hires or avails of any service, for a consideration which has been paid or promised, or party paid and partly promised, or under any system of deferred payment. It includes any beneficiary of services when such services are availed of with the approval of the person concerned, but does not include a person who avails of such service for any commercial purpose.

Q12. Mr. Fernandes is the owner of Unibie enterprises, carrying on the business ofmanufacturing electrical appliances. There is a lot of discontentment in the organization and targets are not being met he asked his son, Michel, how has recently completed his MBA, to find out the reason. Michel found that all decision making of the enterprises were in the hands in of his father. Moreover, his father did not have confidence in the competency of the employees. Thus the employees where not happy.

(a) Identify any two communication barriers because of which ‘Unibie enterprise’ was not able to achieve its target.

(b) State one more barrier each of types identified in part (a) above. 3

Ans. (a) Two communication barriers are:

(1) Organizational barriers / organizational policy

(2) Personal barrier / lack of confidence of superior on his subordinates.

Please click the link below to download CBSE Class 12 Business Studies Sample Paper 2018 (6).



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