CBSE Class 12 Business Studies Answer Key 2024 (Available): Detailed solutions PDF download

CBSE Class 12 Business Studies Answer Key 2024 (Image Credit: Pexels)

CBSE Class 12 Business Studies Answer Key 2024: The examination for CBSE Class 12 Business Studies 2024 was conducted on March 27, from 10:30 AM to 1:30 PM. We have shared here the answers for all the 1-mark questions for Set 2 (QP Code 66/2/2), Set 3 (QP Code 66/4/3), and Set 1 (QP Code 66/5/1). Since 3-mark, 4-mark, and 6-mark questions are subjective in nature, the marks will be allotted to the candidates based on their writing style. Hence, the answers to the same are not shared here. Here, only the answers to the 20 questions from the objective section are provided. 

CBSE Class 12 Business Studies Answer Key 2024 for QP Code: 66/2/2 (Set 2)

Part A includes 20 multiple-choice questions with internal choices of 1 mark each, the answers to which for QP Code: 66/2/2 (Set 2) are provided here:

1. Assertion (A): Decentralization is an optional policy decision.
Reason (R): It is done at the discretion of the top management.
Answer: (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

2. Lack of confidence of superior in his subordinates' is one of the barriers of communication. Identify the communication barrier:
Answer: (A) Personal barrier

3. _____________ is the process of holding securities in an electronic form.
Answer: (C) Dematerialization

4. 'Lens-o' was started as an online eyewear company selling glasses and contact lenses on their website. Recently, it set up a uniquely designed offline store, so that customers can also buy their products from the company showroom.
Which channel of distribution is used by the company :
Answer: (A) Zero level channel

5. Akash Mehra is the Marketing Manager of Kedanta Enterprises. He gives orders and expects his subordinates to obey those orders. Communication is only one-way with the subordinates only acting according to the command given by him.
Identify the leadership style of Akash Mehra :
Answer: (A) Authoritative

6. The selection tests which are used to measure an individual's potential for learning new skills are called:
Answer: (A) Aptitude Tests

7. 'Increase in profit earned by equity shareholders due to the presence of fixed financial charges like interest' is referred to as :
Answer: (D) Trading on equity

8. JKSD India Ltd.' recently introduced a new range of 'fresh from kitchen' jams, ketchups, salad dressings and peanut butter, etc They appointed salespersons to contact prospective customers in leading malls to create awareness about their products and develop product preferences with the aim of making sales.
Which tool of promotion is being used by 'JKSD India Ltd.' to market its products:
Answer: (D) Public Relations

9. Vishesh Constructions', a construction company, decided to strictly implement 'No Helmet, No Entry' and put the following sign at their construction sites: 
Identify the type of plan indicated by the above sign:
Answer: (B) Rule

10. ___________ is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
Answer: (D) Recruitment

11. Which of the following is not a feature of marketing:
Answer: (B) Storage and warehousing

12. Financial market allocates or directs funds available for investment into the most productive investment opportunity. In doing so, it performs the ___________ function.
Answer: (C) Allocative

13. 'A public issue of equity may reduce the management holding in the company and make it vulnerable to takeover. This factor also influences the choice between debt and equity, especially in companies in which the current holding of management is on a lower side.
'The factor affecting choice of capital structure discussed in the above case is:
Answer: (D) Control

14. From the following, choose the incorrect statement about the importance of 'Directing' function of management:
Answer: (D) Directing helps in estimating manpower requirements for the organization.

15. Sudha and Shweta were twin sisters. After completing their education from college, they decided to start a business. As they were Commerce students, they knew the importance of deciding in advance 'what to do and how to do'. It was very challenging for them as this decision was to guide all their future actions. While discussing the same with their mother, they got a new idea of starting a 'Cloud Kitchen'. Both the sisters were very excited to start this. The idea took the shape of a concrete plan and within a month, they were successful in starting their 'Cloud Kitchen.'
Identify the point of importance of planning highlighted in the above case:
Answer: (B) Planning promotes innovative ideas.

16. A name, term, symbol, design, or some combination of these, used to identify the products, goods or services of one seller or group of sellers and to differentiate them from those of the competitors is known as:
Answer: (A) Brand

17. Sunita opened her travel agency named 'Sunita Travels' in July, 2023. She created separate departments for reservations, hotel bookings, otiline queries and payment handling. Which organisation structure is used by Sunita :
Answer: (A) Functional structure

18. Statement I: Controlling ensures that activities in an organization are performed as per the plans.
Statement II: Controlling function of a manager is a pervasive function.Choose the correct option from the options given below :
Answer: (C) Both the statements are true.

19. Sushant was an able Project Manager at 'Keiro Ltd.' Sushant's Head, Naveen handed over a new project to Sushant. Sushant already had enough work in hand. So, Sushant decided to divide the work assigned to him, among three of his subordinates. He himself kept that part of the work which he himself could perform effectively and got his subordinates to help him with what remained. The project got completed well in time because of this.
The concept of management used by Sushant to complete the project was:
Answer: (A) Delegation

20. Match the Marketing Management philosophies given in Column I with their main focus given in Column II :
Column I
1. Production concept
2. Product concept
3. Marketing concept
4. Societal marketing concept
Column II
(i) Customers' needs
(ii) Quality, performance and features of product
(iii) Customers' needs and societal well-being
(iv) Quantity of productChoose the correct option from the following :
Answer: (C) 1 - (iv), 2 - (ii), 3 - (i), 4 - (iii)

CBSE Class 12 Business Studies Answer Key 2024 for QP Code: 66/4/3 (Set 3)

Part A includes 20 multiple-choice questions with internal choices of 1 mark each, the answers to which for QP Code: 66/4/3 (Set 3) are provided here:

1. Assertion (A): Amount of Earnings is a major determinant of the decision about dividend.
Reason (R): Dividends are paid out of current and past earnings.
Answer: (A) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of Assertion (A).

2. Choose the incorrect statement with respect to levels of management from the following:
Answer: (A) Operational level management is responsible for implementing and controlling plans and strategies developed by top management.

3. Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable'.
The above statement is related to one of the steps of organising process. Identify the step from the following:
Answer: (D) Establishing authority and reporting relationship

4. A multinational sweets and snacks company had been into catering business for the last many years. To add to its prospects and to grow in the long run, it wants to increase its sales volume, the number of products and capital investment. The organisational objective of management it seeks to achieve is :
Answer: (C) Growth

5. Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws. He heard about the upcoming ban on single use plastics. He was able to identify this external environmental trend which could hinder his firm's performance. So he took action and shifted to manufacturing the plates, cups and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit. The point of importance of Business Environment highlighted here is:
Answer: (B) It helps the firm to identify threats and early warning signals.

6. _________ is the process by which a manager synchronises the activities of different departments.
Answer: (C) Coordination

7. Lyka Ltd. launched its new range of herbal shampoos at the beginning of the year. As per legal framework, Lyka Ltd. provided the name and address of the manufacturer, the weight, manufacturing date, expiry, maximum retail price etc. on the package and label of the herbal shampoo. The consumer right highlighted above is:
Answer: (B) Right to be informed

8. _________ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action.
Answer: (C) Comparing Actual Performance with standards and analysing deviations

9. Match the functions of Securities and Exchange Board of India given in Column I with their headings given in Column-II:
Column-I
A. Training of intermediaries of securitiesmarkets
B. Regulation of takeover bids by companies
C. Controlling insider trading and imposingpenalties for such practices
Column-II
(i) Regulatory function
(ii) Protective function
(iii) Development funcChoose the correct alternative:
Answer: (C) A (iii); B (i); C (ii)

10. 'It is a process that allocates or directs funds available for investment into their most productive instrument opportunity.This is known as:
Answer: (C) Allocative Function

11. Statement - I : That part of a brand which can be spoken is called as brand name.
Statement - II: That part of the brand which is given legal protection is called ad Trademark.
Choose the correct option from the following:
Answer: (C) Both the statements are true.

12. ___________ is the process of holding securities in electronic form.
Answer: (B) Dematerialisation

13. Payal was working in a Multinational company. Her father gifted her a smart phone worth₹ 40,500 on her birthday. The mobile phone was purchased by her father from his friend's shop. After few months, the mobile phone started creating problems. Payal tried to contact the manufacturer many times but he did not respond. Ultimately Payal decided to file a complaint against the manufacturer. The appropriate grievance redressal machinery where Payal can file a complaint is:
Answer: (A) District Forum/ Commission

14. Which of the following is NOT a feature of 'Directing' function of management?
Answer: (D) Directing flows from top to bottom.

15. Marbury biscuits' launched its new range of oat cookies in three varieties. They decided to distribute free samples of their biscuits in schools as a part of their promotional campaign Identify the tool of promotion used by 'Marbury Biscuits':
Answer: (C) Sales Promotion

16. Which of the following is an advantage of Informal organisation?
Answer: (C) It enhances the employee's job satisfaction since it gives a sense of belongingness in the organisation and allows them to find like-minded people.

17. The picture given below is the package of a perfume bottle.Identify the level of packaging of the box shown above :
Answer: (B) Secondary Package

18. Statement I: Business Environment is dynamic as it differs from country to country.Statement - II: Business Environment is largely uncertain as it is very difficult to predict future happenings.Choose the correct option from the following:
Answer: (B) Statement II is true and Statement I is false.

19. Which of the following is NOT a feature of demonetisation?
Answer: (B) It is interpreted as a shift on the part of the government that tax evasion will no longer be tolerated or accepted.

20. ___________ is the process of holding securities in electronic form.
Answer: (B) Dematerialisation

CBSE Class 12 Business Studies Answer Key 2024 for QP Code: 66/5/1 (Set 1)

Part A includes 20 multiple-choice questions with internal choices of 1 mark each, the answers to which for QP Code: 66/5/1 (Set 1) are provided here:

1. Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion. Identify the principle of management followed by Vanguard Inc.' in the above case:
Answer: (C) Initative

2. 'Child-O' is a garment manufacturing company which makes clothes with unique and stylish designs for children. Naisha was working as the Human Resource Manager with 'Child-O'. Inspite of good pay and many other benefits offered, the company is facing problem of high turnover of its employees. Naisha tried to find out the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out the reason. It was found that other organisations were giving more autonomy and authority to their employees which made them feel that their jobs were important.
Answer: (D) Employee Empowerment

3. 'Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above :
Answer: (B) Complexity

4. Naman and Vineet were childhood friends and both were working in 'Sunshine Crockery.' Naman was working as the Chief Executive Officer while Vineet was the Production Manager. They would generally discuss company related issues over lunch-time or while travelling together.The company had recently received an order for supply of 5,000dinner sets from Shaurya Hotel. It was an unexpected order and would increase the revenue of the company. This order was communicated by Naman to Vineet over intercom. Vineet executed the order within the given time period. For this, he was appreciated by Naman. The type of communication used by Naman to communicate the order to Vineet was:
Answer: (B) Informal Communication

5. Statement-I : The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold.
Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market.Choose the correct option from the following:
Answer: (C) Both the Statements are true.

6. As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1 July. 2022. The dimension of business environment referred to here is _______.
Answer: (A) External environment

7. Statement-I: Motivation can be either positive or negative.
Statement-II: Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions.Choose the correct option from the following:
Answer: (C) Both the Statements are true.

8. Navya went to a supermarket for grocery shopping. She bought one kg of bajra flour from the supermarket. On reaching home when she opened the packet she found worms inside it. She was disappointed and told her son about the same. Her son asked her to check the label. When she checked the label of the packet, she found that bajra flour was stale and beyond the expiry date. She approached the sales-person at the supermarket who replaced the bajra flour immediately. When she thanked the sales-person, she was told that it was the policy of the supermarket to satisfy the customers. He further told that satisfied customers not only lead to repeat sales but they also provide good feedback to prospective customers which helps in increasing the customer base of business. Identify the point of importance of consumer protection from the point of view of the supermarket which is helping them to increase the customer base:
Answer: (A) Long term interest of the business

9. Which of the following is not an element of social environment?
Answer: (C) Rates of saving and investment

10. Assertion (A): Availability of leasing facilities may reduce the funds required to be invested in fixed assets thereby reducing the fixed capital requirements.
Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and avoids to invest huge sums required to purchase it.
Answer: (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

11. Match the terms given in Column-I with their meaning in Column-II.
Column-I
a. Trademark
b. Brand name
c. Brand
d. Brand mark
Column-II
i. A name, term, sign, symbol, design or some combination of them used to identify the products and differentiate them from the competitors.
ii. A brand or a part of the brand that is given legal protection.
iii. That part of the brand which can be recognised but which is not utterable.
iv. That part of the brand which can be spoken. Choose the correct option from the following:
Answer: (C) a - (ii), b - (iv), c - (i), d - (iii)

12. Kanand Ltd. is an automobile manufacturing company started in 2014 under 'Make in India' initiative of the Government of India. Expecting higher growth in future, it developed higher capacity in the current year taking advantage of the subsidies provided by the government. This would enable 'Kanand Ltd.' to meet anticipated higher demand quickly, For this, 'Kanand Ltd.' invested large amounts in fixed assets leading to higher requirements of fixed capital. Identify the factor affecting fixed capital requirements which 'Kanand Ltd. kept in mind to meet higher anticipated demand quicker.
Answer: (D) Growth prospects

13. Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job seekers can be a valuable source of manpower. A list of such job seekers can be prepared and can be screened to fill the vacancies as they arise. The source of recruitment discussed above is:
Answer: (A) Direct recruitment

14. Identify from the following - what is shown in the picture of refrigerator given below ?
Answer: (D) Label

15. Which of the following is NOT a factor affecting 'financing decision'?
Answer: (D) Diversification

16. For holding securities in an electronic form, the investor has to open a demat account with an organisation called _________.
Answer: (B) Securities and Exchange Board of India

17. ___________ means doing the task correctly and with minimum cost.
Answer: (A) Efficiency

18. Which of the following is the function of Top level management?
Answer: (C) They co-operate with other departments for smooth functioning of the organisation.

19. The activities involved in managing the enterprise are common to all organisations whether economic, political or social. Identify the feature of management:
Answer: (B) Management is all pervasive.

20. Choose the incorrect statement about 'Money market':
Answer: (B) In this market, transactions entail huge sums of money as the instruments are quite expensive.

CBSE Class 12 Business Studies  2024: Analysis and Question Paper

The analysis and question paper for CBSE Class 12 Business Studies  2024 held on March 27, 2024, can be checked at the following links:

CBSE Class 12 Answer Key 2024 Links |

The question papers for the respective day-wise exams are available at the links below:

CBSE Class 12 2024 Weightage Subject-Wise |

Access CBSE Class 12 weightage 2024 for the upcoming papers here in the given table: