CBSE Class 12 Business Studies Answer Key 2025: The Central Board of Secondary Education (CBSE) conducted the Class 12 Business Studies examination on February 22, 2025. Following the exam, students are eager to assess their performance. To assist in this process, we provide the answer keys for all sets of the question paper in PDF format.
CBSE Class 12th Business Studies Answer Key Features
Utilising the answer key offers several benefits:
- Self-Assessment: This helps to evaluate your performance and understanding of the subject.
- Clarification of Doubts: Provide clear solutions to questions you found challenging.
- Preparation for Future Exams: Identifies areas where more practice is needed, which in turn leads to better preparation for upcoming exams and future competitive exams.
Check| CBSE Class 12 Business Studies Question Paper 2025 (All Sets)
Check| CBSE Class 12 Business Studies Paper Analysis 2025 (All Sets)
CBSE Class 12th Business Studies Exam Pattern 2025
Check the marking scheme below for each chapter:
| Units |
| Marks |
| Part A | Principles and Functions of Management |
|
| 1. | Nature and Significance of Management | 16 |
| 2 | Principles of Management | |
| 3 | Business Environment | |
| 4 | Planning | 14 |
| 5 | Organising | |
| 6 | Staffing | 20 |
| 7 | Directing | |
| 8 | Controlling | |
| Part B | Business Finance and Marketing |
|
| 9 | Financial Management | 15 |
| 10 | Financial Markets | |
| 11 | Marketing Management | 15 |
| 12 | Consumer Protection | |
| Part C | Project Work (One) | 20 |
CBSE Class 12 Business Studies Exam Answer Key- Highlights
The CBSE Class 12 Business Studies Exam 2025 consists of a total of 34 questions divided into different sections based on mark distribution. Here’s the breakdown:
| Feature | Highlights |
| Board Name | Central Board Of Secondary Education (CBSE) |
| Exam Name | CBSE Class 12th Business Studies Exam |
| Exam Date | February 22, 2025 |
| Duration | 10:30 AM to 1:30 PM (3 hours) |
| Total Marks | 80 |
| Mode | Offline (Pen and Paper) |
| Time Duration | 3 Hours |
| Question Paper Sets: | Multiple Sets (Set 1, Set 2, Set 3) |
CBSE Class 12th Business Studies Answer Key 2025
Get here the CBSE Class 12th Business Studies Answer Key 2025 which is curated by the subject matter experts. Students can access below the answers to all questions asked in the CBSE Class 12th Business Studies Question Paper 2025.
CBSE Class 12 Business Studies Answer Key - Set 2
1.To ensure that enough funds are available at right time to honour the commitments and to carry out the plans' is discussed in which of the following concepts?
(A) Capital Structure
(B) Financial Leverage
(C) Financial Planning.
(D) Investment Decision
Answer:(C) Financial Planning
Explanation: Financial planning ensures that sufficient funds are available at the right time to fulfill commitments and execute plans.
2.Read the following statements carefully:
Statement-I : The cost of debt is more than the cost of equity.
Statement - II: Lenders risk is lower than the equity shareholders risk.
In the light of the given statements, choose the correct alternative from the following:
(A) Both the Statements are true.
(B) Both the Statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement I is false, Statement II is true.
Answer:(D) Statement I is false, Statement II is true.
Explanation: The cost of debt is lower than the cost of equity because lenders take less risk compared to equity shareholders.
3.Increase in the profit earned by the equity shareholders due to the presence of fixed financial charges like interest' is called:
(A) Financial planning
(B) Dividend decision
(C) Financing decision
(D) Trading on equity
Answer: (D) Trading on equity
Explanation: Trading on equity refers to the increase in earnings available to equity shareholders due to the presence of fixed financial charges like interest.
4.Akshara runs a business in the name of 'AK Solutions' in a well reputed area of her city where people provide spaces to students as library, as study centres and as training and event centres to businesses. Akshara provides only conference halls to big and small enterprises for their meetings and events.
Suddenly, in July 2024, floods affected some libraries and study centres in her neighbouring area. The exams were fast approaching and students were facing a lot of problems as these study centres and libraries had to be closed.
Taking advantage of this opportunity and to help the students 'AK Solutions' adapted itself to the needs of the environment, they decided to convert some of their conference halls into libraries and study centres. They also decided to provide food and other facilities required by the students at subsidized rates. This initiative increased their business manifold and earned them significant goodwill.
The feature of management highlighted in the above case is:
(A) Management is a continuous process.
(B) Management is an intangible force.
(C) Management is a dynamic function.
(D) Management is a group activity.
Answer:(C) Management is a dynamic function.
Explanation: Management is dynamic because it adapts to changes in the environment, as seen when AK Solutions adjusted its services to meet student needs after the flood.
5. Match the techniques of scientific management given in Column - I with their meaning given in Column-II:
| Column-I | Column-II |
| (a) Method Study (b) Motion Study (c) Time Study (d) Fatigue Study | (i) It refers to the study of movements like lifting, putting objects, sitting and changing positions etc. which are undertaken while doing a typical job. (ii) It determines the amount and frequency of rest intervals in completing a task. (iii) It determines the standard time taken to perform a well defined job. (iv) It determines one best way of doing a job.
|
Choose the correct option from the options given below:
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (i) (iv) (ii) (iii)
(C) (iv) (i) (iii) (ii)
(D) (iii) (ii) (iv) (i)
Answer:(C) (iv) (i) (iii) (ii)
Explanation:
(a) Method Study → (iv) Determines one best way of doing a job.
(b) Motion Study → (i) Study of movements like lifting, sitting, etc.
(c) Time Study → (iii) Determines the standard time to perform a job.
(d) Fatigue Study → (ii) Determines the amount and frequency of rest intervals.
6. Given below are two statements, Assertion (A) and Reason (R):)
Assertion (A): Planning involves looking ahead and preparing for the future.
Reason (R): The purpose of planning is to meet future events effectively to the best advantage of an organization.
Choose the correct alternative from the alternatives given below:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Answer: (A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
- Planning involves looking ahead because it prepares an organization for the future.
- The purpose of planning is indeed to handle future events efficiently, making Reason (R) a correct explanation of Assertion (A).
7. Identify the dimension of business environment illustrated by the given picture:
(A) Social
(B) Political
(C) Technological
(D) Economics
Answer: (C) Technological
Explanation:
The introduction of an AI News Anchor represents advancements in technology, which impact how news is delivered and consumed.
8.As per the Consumer Protection Act, 2019 which of the following statement is correct?
(A) In case the aggrieved party is not satisfied with the order of the District Commission, he can directly appeal before the National Commission.
(B) In case the aggrieved party is not satisfied with the order of the District Commission, he can directly appeal before the Supreme Court.
(C) In case the aggrieved party is not satisfied with the order of the State Commission, he can directly appeal before the Supreme Court.
(D) In case the aggrieved party is not satisfied with the order of the National Commission, he can appeal before the Supreme Court.
Answer: (D) In case the aggrieved party is not satisfied with the order of the National Commission, he can appeal before the Supreme Court.
Explanation: As per the Consumer Protection Act, 2019, if a consumer is dissatisfied with the order of the National Commission, they can appeal to the Supreme Court within 30 days.
9.The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified to pave the way for a smooth transition."
The point of importance of organizing function of management highlighted in the above lines is:
(A) Benefits of specialization
(B) Clarity in working relationships
(C) Optimum utilization of resources
(D) Adaptation to change
Answer: (D) Adaptation to change
Explanation: Organizing helps a business modify its structure and accommodate changes in the business environment, ensuring a smooth transition.
10. Nimesh was working as a Production Manager in H.L. Ltd., an electrical wire manufacturing company. One of the vendors who was supplying copper to H.L. Ltd. wanted to close down his business within 15 days as he had to go abroad to live with his son. The vendor was selling all his stocks at 60% discount. Nimesh wrote a letter to the General Manager to seek approval for procurement of this material. But due to rigid rules and cumbersome procedures there was delay in getting sanction and order could not be placed.
The type of communication barrier that led to procedural delay was:
(A)Semantic barrier
(B) Psychological barrier
(C) Organizational barrier
(D) Personal barrier
Answer: (C) Organizational barrier
Explanation: Rigid rules and cumbersome procedures are organizational barriers that delay decision-making and approvals within a company.
10. A buyer buys a product or service for what it does for him / her or the benefit it provides to him / her. There can be three types of benefits a consumer may seek to satisfy from the purchase of a product:
(i) Functional benefits, (ii) Social benefits and (iii) ...................
(A) Technological benefits
(B) Economic benefits
(C) Psychological benefits
(D) Environmental benefits
Answer: (C) Psychological benefits
12. "The obligation of a subordinate to properly perform the assigned duty" is called:
(A) Delegation
(B) Authority
(C) Responsibility
(D) Accountability
Answer: (C) Responsibility
13. Isha Sweets was set by Isha Sharma to prepare and sell organic, vegan and healthy sweets alternatives like hazelnut date ladoos, dry fruit date burfi, stuffed medjool date etc. For the last many years, the demand for her products was very high as people these days prefer to buy healthier alternatives for consumption as well as gifting purposes. But this year suddenly, the cost of dates, dry fruits, and other ingredients used for preparing these healthy sweets had increased. With rising prices of raw materials, larger amounts of funds were required to maintain a constant volume of production and sales. As a result, the working capital requirement of Isha Sweets became higher.
The factor which led to an increase in the working capital requirements of Isha Sweets was:
(A) Availability of raw material
(B) Inflation
(C) Scale of business
(D) Production cycle
Answer: (B) Inflation
14. Atul was working as an employee in a readymade garments factory. He was very sincere and dedicated and always completed his work on time. It pained him to see that his colleagues were reluctant to do the work even though they had the ability to do it.
Due to his good behaviour and willingness to work, he was promoted to the post of the supervisor of the same team in which he was a worker earlier. He understood very well that it was not always possible to get the best out of employees merely by exercising formal authority. He had insight into the causes of behaviour of people. He knew how to get the work done by the workers in a desired manner to achieve the organizational objectives. Under his supervision, even the workers who were reluctant to work started working efficiently and effectively.
From the following, identify the concept used by Atul, as a supervisor to get the work completed:
(A) Leadership
(B) Financial Incentives
(C) Motivation
(D) Non-financial Incentives
Answer: (C) Motivation
15. Choose the statement that correctly highlights the benefit of using internal sources of recruitment.
(A) It helps in simplifying the process of selection.
(B) It provides wider choice while selecting the employees.
(C) It brings new blood in the organization.
(D) It is an expensive and time-consuming source.
Answer: (A) It helps in simplifying the process of selection.
16. Read the following statements carefully:
Statement - I: Staffing is that part of the process of management which is concerned with obtaining, utilizing, and maintaining a satisfied and satisfactory workforce.
Statement - II: Staffing is a continuous process.
In the light of the given statements, choose the correct alternative from the following:
(A) Both the Statements are true.
(B) Both the Statements are false.
(C) Statement I is true, but Statement II is false.
(D) Statement II is true, but Statement I is false.
Answer: (A) Both the Statements are true.
17. CVX Ltd. was a leading company, manufacturing home appliances like food processors, juicers, and mixer grinders. The company was earning good profits and was paying high dividends to its shareholders consistently. The company now decided to manufacture soup-making machines, pop-up toasters, and new electric irons. The company wanted to enter more emerging markets outside India. Entering these markets will require additional capital investment, which will facilitate production and distribution infrastructure, etc. For this, the management decided to retain money out of earnings to finance the required investment and distribute smaller dividends to shareholders.
The factors affecting the dividend decision which was kept in mind by the management of CVX Ltd. for entering into emerging markets and launching new products was:
(A) Amount of Earnings
(B) Stability of Earnings
(C) Stability of Dividends
(D) Growth Opportunities
Answer: (D) Growth Opportunities
18. Given below are two statements, Assertion (A) and Reason (R):
Assertion (A): Directing facilitates the introduction of needed changes in the organization.
Reason (R): Directing increases resistance to changes in the organization.
Choose the correct alternative from the alternatives given below:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
(B) Assertion (A) is true, but Reason (R) is false.
(C) Assertion (A) is false, but Reason (R) is true.
(D) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Answer: (B) Assertion (A) is true, but Reason (R) is false.
19. Kavi works as a Marketing Manager in a stationery mart. It deals in various types of stationery items for many schools across the country. When a new session starts in schools, Kavi forecasts the sales of different stationery products for each school for every month. All items are represented in numbers so that it becomes easier for him to compare the actual sales with expected sales.
The type of plan discussed above is:
(A) Strategy
(B) Policy
(C) Programme
(D) Budget
Answer: (D) Budget
20. It is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Identify the process.
(A) Management
(B) Organising
(C) Staffing
(D) Directing
Answer: (A) Management
*We will keep updating more answers soon*
CBSE Class 12 Business Studies Answer Key - Set 3
1.A buyer buys a product or service for what it does for him/her or the benefit it provides to him / her. There can be three type of benefits, a consumer may seek to satisfy from the purchase of a product: (i) Functional benefits, (ii) Social benefits and (iii) ....................
(B) Economic benefits
(A) Technological benefits
(C) Psychological benefits
(D) Environmental benefits
Answer: (C) Psychological benefits
Explanation: Consumers seek psychological benefits such as emotional satisfaction, status, or personal comfort from a product.
2."The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified to pave the way for a smooth transition.'
The point of importance of organizing function of management highlighted in the above lines is:
(A) Benefits of specialization
(B) Clarity in working relationships
(C) Optimum utilization of resources
(D) Adaptation to change
Answer: (D) Adaptation to change
Explanation: Organizing helps businesses adjust to changes in the environment by modifying their structure for a smooth transition.
*We will keep updating more answers soon*
CBSE Class 12th Business Studies Answer Key 2025 (PDF) |
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