Top 10 questions in business studies cbse class 12 exam 2020

Top 10 Questions in Business Studies CBSE Class 12 Exam - 2020

Check top 10 important Business Studies questions and answers that will help you plan your study and revision in CBSE Class 12 Business Studies exam - 2020

By Topperlearning Expert 17th Mar, 2020 | 08:00 pm

Business studies is a subject that provides theoretical as well as practical knowledge about the business world. Business studies portion is divided in to two parts i.e. Part A and Part B. Part A is named as Principles and functions of Management and Part B is named as Business Finance and Marketing. Out of the total 80 marks of the theory paper, Part A has a total weightage of 50 marks and Part B has a total weightage of 30 marks. One must ensure that they study smart and not work hard endlessly in the wrong direction, especially for the business studies paper.

Students will be given 3 hours to write and revise the paper before they finally submit it to the invigilator. To ease the revision process for the students, our academic experts have made a list of important questions that will help them in the exam. The questions are mentioned below:

Part A:

1. State the features/characteristics of planning. [Modified question asked in 2015, 2017, 2018, 2019]

Suggested answer: (Key to remember: POMP FED)

Features/characteristics of planning:

Planning is pervasive: Planning is required at all levels of management as well as in all departments.
Planning focuses on objectives: Planning ensures specific objectives are set and achieved by the organisation.
Planning is a primary function of management: Planning forms the basis on which all the other functions of management are dependent.
Planning is a continuous process: Planning is a continuous process such that plans are made, implemented and followed by another plan according to new circumstances and requirements, and this cycle keeps repeating.
Planning is futuristic: Planning involves forecasting future events, analysing them and developing plans accordingly.
Planning is a mental exercise: Planning is a mental process which requires the application of thinking skills and intelligently arriving at a rational decision/judgement.
Planning involves decision making: The process of planning involves making a choice between various alternatives to achieve the objectives of the organisation.

2. How is a formal organisation different from an informal organisation? [Modified question asked in 2018, 2019]

3. Explain any the points that highlight the importance of controlling function of management. [Modified question asked in 2016, 2017, 2018, 2019]

4. What is meant by co-ordination? Explain its importance. [Modified question asked in 2015, 2016, 2018, 2019]

5. Explain the different types of barriers to effective communication. [Modified question asked in 2015, 2016, 2017, 2019]

6. Explain the dimensions of business environment. [Modified question asked in 2016, 2019]

Part B:

1. S Ltd. is engaged in producing stationery items and sells its products through indirect channels of distribution. However, the company is now inclined to start its online portal for direct marketing. The CFO of the company is planning to use debt in order to take advantage of trading on equity, and therefore, it is planning to raise a debt of Rs. 20 lakh through a loan @ 10% from a bank. The present capital base of the company comprises 4.5 lakh equity shares of Rs.10 each. Considering the tax rate at 30%, answer the following: [Modified question asked in 2018, 2019]

a. State two conditions necessary for taking advantage of trading on equity.
b. Assuming that the expected rate of return on investment is 15%, i.e. the same as for the current year, determine whether the CFO of S Ltd. will be able to meet the goal with the help of detailed workings.

Suggested answer:

a. The two conditions necessary for taking advantage of trading on equity are as follows:

The rate of return on investment should be more than the rate of interest.
The amount of interest paid should be tax deductible.

Sources	Situation 1 Amount [in Rs.]	Situation 2 Amount [in Rs.]
Equity shares	45,00,000	45,00,000
10% Debentures	NIL	20,00,000
Total Capital	45,00,000	65,00,000
EBIT	6,75,000	9,75,000
Less: Interest	—	– [2,00,000]
EBT	6,75,000	7,75,000
Less: Tax @ 30%	– [2,02,500]	– [2,32,500]
EAT	4,72,500	5,42,500
No. of shares of Rs. 10 each	4,50,000	4,50,000
EPS	4,72,500/4,50,000 = 1.05	5,42,500/4,50,000 = 1.21

Based on the above solution, the CFO will be able to meet the goal as the projected EPS with the issue of debt is higher than the present EPS.

2. Explain the functions of Marketing. [Modified question asked in 2015, 2016, 2019]

3. Explain the factors affecting fixed and capital requirements of a company. [Modified question asked in 2016, 2018]

4. State any eight reliefs available to the consumer, if the court is satisfied about the genuineness of the complaint. [Modified question asked in 2019]

For reviewing all the important answers and practice material for CBSE Class 12 Commerce exam 2020 click here:

CBSE Class 12 Business Studies exam 2020 - Sample Papers

CBSE Class 12 Business Studies exam 2020 - Previous years papers

You may also get expert advice from subject matter experts and get your doubts cleared in 24 hours at Ask the expert or call our counsellor on 1800-212-7858.