CBSE Important Questions on Class 12 Business Studies

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April 22, 2025

CBSE Important Questions on Class 12 Business Studies:- Business Studies is a subject that introduces students to the fundamentals of business, management principles, and how organisations operate in the real world. It not only helps students develop practical skills for decision-making and leadership but also lays a strong foundation for future careers in business, management, and entrepreneurship.

The CBSE Class 12 Business Studies exam is scheduled for Saturday, 22nd February 2025, from 10:30 AM to 01:30 PM. With the exam date approaching, it’s essential for students to have a well-structured preparation plan. One of the most effective strategies to do well in this subject is practising business studies class 12 important questions. These questions are carefully designed to cover key topics from the syllabus and often include concepts that are frequently tested in exams.

By solving business studies important questions class 12, students can understand the exam pattern better, improve their time management, and strengthen their understanding of crucial topics. Go thorugh the below article to get the CBSE Important Questions on Class 12 Business Studies.

Check out: Commerce Class 12th

CBSE Important Questions on Class 12 Business Studies

1. What is meant by management of work? (All India 2014)

Ans. Every organisation exists to achieve certain goals. Management sets and plans certain activities, which are to be performed, so that the goals can be achieved. This is considered as management of work.

2. What is meant by management of people? (Delhi 2014)

Ans. Management of people is an art of getting things done through others. A manager deals with individuals who have different needs and behaviour. He directs and motivates them to work towards the organisational goals.

3. What is menat by management of operations? (Foreign 2014)

Ans. Every organisation provides some basic product or service, for the production of which there is a process of flow of input material and technology for transforming this input into output for consumption. Thus, management involves management of operations for converting input into output.

4. Identify the basic characteristic of management involved in the statement. ‘The activities involved in managing an organisation are common to all organisations, whether economic, social or political’. (Compartment2014)

The management principles can be applied to all types of activities. Which characteristic of management is highlighted by this statement?

(hots; Delhi 2008)

Ans. Management is all pervasive.

5.What is meant by management?(Delhi 2011)

Ans. Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation.

6. What is meant by effectiveness in management?(Delhi 2011)

Ans. Effectiveness in management is concerned with doing the right task/completing activities/achieving goals within the prescribed time. In other words, it is concerned with end results.

7. List any two social objectives of management. (All India 2011,2010; Delhi 2010)

Ans. Two social objectives of management are as follows:

(i) Using environment friendly methods of production.

(ii) Giving employment opportunities to the disadvantaged sections of the society.

8. Explain in one sentence how management increase i efficiency? (Delhi 2011c; 2009c)

Ans. Management increases efficiency by reducing cost and increasing productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

9. Explain in one sentence how management helps in achieving group goals? (All India 2011)

Ans. Management helps in achieving the group goals by directing the individual efforts in achieving the overall goal of the organisation.

10. List any two organisational objectives of management. (All India 2010; Delhi 2010)

Ans. Two organisational objectives of management are as follows:

(i) Survival (ii) Earning profit

Check out: CBSE Class 12 Business Studies Sample Question Papers for 2025 Exam

11. What is meant by’Principles of management’? (All India 2013 2009; Delhi 2011)

Ans. Principles of management are general guidelines, which can be used for conduct in work places under certain situations. It also helps manager to take and implement thoughtful decisions.

12. What is meant by ‘Universal applicability of principles of management’? (Delhi 2011; All India 2008C)

Ans. ‘Universal applicability of principles of management’ means that the principles of management are intended to apply to all types of organisations at all places.

13. State any one reason why principles of management are important? (All India 2011)

Ans. Principles of management are important as they help managers in taking thoughtful and scientific decisions.

14. What is meant by the statement ‘principles of management are flexible’? (Delhi 2011)

Give any one reason why principles of management are not rigid prescriptions? (All India 2010; Delhi 2010)

Why are the principles of management called flexible? (Delhi 2009)

State how the management principles are flexible. (Delhi 2008)

Ans. Principles of management are flexible, which means that they are not rigid, and can be modified by the manager as per the situation.

15. What is meant by the statement ‘principles of management are contingent’? (All India 2011)

Ans. The application of principles of management is contingent as it depends upon the prevailing situation at a particular point of time.

16. Give any one reason why principles of management do not provide readymade solution to all managerial problems. (All India 2010; Delhi 2010)

Ans. Principles of management do not provide readymade solution to all managerial problems because principles provide general guidelines to managers whereas real business situations are extremly complex and not based on theoretical knowledge.

17. Why are the principles of management called universally applicable? (All India 2009)

Ans. The management principles are universal because these are applicable in all conditions and in all organisations whether it is a profit making or non-profit making.

18. The principles of management are different from those of pure sciences. State any one difference. (All India 2008; Delhi 2008)

Ans. Management principles are flexible, whereas principles of pure science are rigid.

19. How the management principles have been derived? (All India 2008)

Ans. The management principles have been derived through observation, analysis, experimental studies and personal experiences of the managers.

20. Why is it said that management principles are universal in application? (Delhi 2008)

Ans. The management principles are said to be universal in application because these are applicable to all types of organisations, irrespective of the size or nature.

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21. Why is it said that business environment is uncertain? (Compartment 2014)

Ans. Business environment is uncertain as it is difficult to predict future happenings when environment changes are taking place frequently.

22. What is included in ‘Political Environment’ of business? State. (Delhi 2014)

Ans. The following components are included in political environment of business:

(i) Constitutional framework

(ii)Political system

(iii)Political structure

(iv) Government interventions in business

(v) Foreign policy and defence policy of the country

23. What is included in ‘Legal Environment’ of business? State. (All India 2014)

Ans. Legal environment includes:

(i) Several acts passed by government.

(ii) Court judgements. . . . ”

(iii) Statutory warnings prescribed under law.

(iv) Legislations passed by the government, e.g. essential commodities, etc

24. Why is business environment called dynamic? State (Compartment 2014)

Ans. Business environment is dynamic as it keeps on changing. It is not static and its components are highly flexible, e.g. technological improvements, increase in competition, etc.

25. What is included in the ‘Technological Environment’ of business? State (Compartment 2014)

Ans. Technological environment includes scientific improvements and innovations, which provide new ways of producing goods and services. It also includes news methods and techniques of operating a business.

26. Business environment includes both specific and general forces. List any four specific forces. (Delhi 2011)

Ans. Specific forces of business environment are:

(i) Suppliers (ii) Investors

(iii) Customers (iv) Competitors

27. Business environment includes both specific and general forces. List any four general forces. (All India 2011)

Ans. Genera! forces of business environment are:

(i) Social (ii) Political

(iii) Technological (iv) Legal

28. The understanding of business environment helps the managers to identify threats. What is meant by ‘threats’ here? (HOTS; Delhi 2011)

Ans. Threats refer to the external environment trends and changes that will hinder a firm’s performance.

29. The understanding of business environment enables the firm to identify the opportunities. What is meant by ‘opportunities’ here (HOTS; All India 2011)

Ans. Opportunities refer to the positive external trends or changes that will help a firm to improve its performance.

30. What is meant by ‘business environment’? Explain any three features of business environment. (All India 2014; Foreign 2014)

Explain any four characteristics of business environment.

(Compartment 2014)

State any five features of business environment. (Delhi 2012,2012c)

Ans. Business environment is the sum total of all individuals, institutions and other forces like customers, competitors, suppliers, distributors, industry trends, substitutes, regulations, government activities, social and cultural factors that are outside the control of the business enterprise but may affect its performance.

The main features of business environment are:

(i) Totality of external forces Business environment is the sum total of all external forces outside the control of a business.

(ii) Consists of specific and general forces Specific forces are those, which affects the individual enterprises, viz competitors, customers, investors, and suppliers. Whereas general forces have an impact on all business enterprises. The general forces comprise of social, political, legal, economic and technological forces.

(iii) Complexity Business environment is complex, as to understand it in totality, e.g. it becomes difficult to know the extent of relative impact of social, economic, political, legal and technological, factors on change in demand of a product.

(iv) Uncertainty Business environment is largely uncertain as it is very difficult to predict future happenings, especially when changes take place at a fast pace.

(v) Relativity Business environment is relative as it differs from place to place and region to region.

Check out: CBSE Class 12 Commerce Stream Sample Papers

Preparation Tip for Class 12 Business Studies

It is very important to complete the NCERT books thoroughly, as maximum questions in the CBSE exams are directly or indirectly asked from the NCERT syllabus. A strong understanding of the NCERT book will provide clear clarity on key concepts and help you solve even tricky application-based questions easily. Here’s a detailed guide to help you in your preparation for Class 12 Business Studies:

1. Thoroughly Study the NCERT Textbook:- Begin by reading the NCERT Business Studies textbook line by line. Topics such as Principles of Management, Financial Management, and Marketing Management form the foundation of the syllabus.

Focus on important chapters like Consumer Protection, Business Environment, and Financial Markets, which often include straightforward questions.

2. Practise Business Studies Class 12 Important Questions:- Solving business studies class 12 important questions is a must for understanding the exam pattern and practising commonly asked topics.

Concentrate on questions from high-weightage chapters like Nature and Significance of Management, Planning, and Directing. These are also part of the most important questions of business studies class 12.

3. Master Key Concepts and Definitions:- Memorise definitions, examples, and key points for concepts like Staffing, Organising, and Controlling. Questions based on comparisons, such as Centralisation vs Decentralisation and Formal vs Informal Organisation, are frequently asked.

Focus on theoretical and application-based concepts in chapters like Coordination and Motivation Theories.

4. Solve Business Studies Important Questions Class 12 Regularly:- Regularly practise business studies important questions class 12 from past years' papers, sample papers, and question banks.

Questions based on Maslow’s Hierarchy of Needs, Stock Exchange Functions, and Marketing Strategies often appear in exams.

5. Understand Case Studies:- Business Studies often includes case-study-based questions. Pay close attention to topics like Principles of Management by Henry Fayol, Consumer Protection Act, and Motivational Techniques, which are commonly tested through cases.

Practise answering case studies from sample papers and past year papers to understand how to apply concepts to real-life scenarios.

6. Revise High-Weightage Topics:- Focus on revising chapters like Marketing Management, Financial Management, and Planning, as they frequently feature in the most important questions of business studies class 12.

Prepare concise revision notes for important points such as the functions of management or the features of marketing for quick reference.

7. Practise Sample Papers and Previous Year Question Papers:- Solving sample papers is one of the good ways to test your preparation. Look for business studies class 12 important questions in sample papers to familiarise yourself with exam-style questions.

Pay attention to six-mark questions, such as the importance of staffing, process of controlling, or marketing strategies, which require detailed and structured answers.

8. Prepare for the Presentation:- Write answers in bullet points, use subheadings, and include flowcharts where applicable, especially for processes like Planning or Controlling. This makes your answers neat and easy to read. Highlight keywords like authority, accountability, and responsibility to make your answers stand out.

9. Time Management During the Exam:- Prioritise revising topics based on their weightage. Spend extra time on high-scoring chapters like Marketing and Financial Management, but don’t ignore smaller chapters like Consumer Protection, which have direct and easy-to-score questions.

Check out: CBSE Class 12 Business Studies Volume 1 Book

Important Questions Class 12 Business Studies FAQs

1. What are the most important chapters in Business Studies for Class 12?

The most important chapters include Principles of Management, Marketing Management, Financial Management, Consumer Protection, and Business Environment as they carry significant weightage in the exam.

2. How can I score full marks in Business Studies?

Focus on NCERT textbooks, understand key concepts, practise case studies, and solve business studies class 12 important questions from past papers and sample papers. Also, present your answers in a neat and structured manner.

3. What types of questions are asked in the Business Studies exam?

The exam includes theoretical questions, application-based questions, and case studies. Common question formats include short-answer, long-answer, and six-mark questions requiring detailed explanations.

4. How important is practising case studies for the exam?

Practising case studies is crucial as they are a significant part of the question paper. Focus on chapters like Principles of Management, Staffing, and Motivational Theories, which are often tested through case studies.

5. What are the right resources for preparing Business Studies important questions Class 12?

The NCERT textbook is the primary resource. Additionally, refer to Physics Wallah’s sample papers, previous years’ question papers, and question banks focused on business studies class 12 important questions.

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