CBSE 2025, Set 1 Solutions
CBSE Business Studies (2025)

VK Ltd. is a fast moving consumer goods company. It has shareholders spread all over India. Most of its shareholders depend upon a regular income from their investment. VK Ltd. has been earning consistent profits. The management of the company keeps in mind the preference of the shareholders regarding payment of dividend. Since its shareholders, in general, desire that atleast a certain amount is paid as dividend to them every year, the company declares dividend every year. Atul, the Finance Manager of the company identified promising growth opportunities. He suggested to the Chief Executive Officer to retain the earnings to finance the required investments instead of declaring dividend every year. For this, the Chief Executive Officer decided to call a General Body Meeting of the shareholders.\n (i) Identify two factors affecting dividend decision discussed above.\n (ii) State two other factors that affect the dividend decision of a company.

'Tech Work' an Artificial Intelligence (AI) startup started in 2024. It was earning good profits. It wanted to expand its business and for its research and development, it required 100 crores. The Chief Executive Officer of 'Tech Work' consulted the Finance Manager who suggested that there is a market which facilitates transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or expand existing ones through the issue of securities. The management of 'Tech Work' decided to raise funds from the investors by issuing equity shares @200 per share for the first time.\n (i) Name the type of capital market through which 'Tech Work' decided to raise funds for its expansion.\n (ii) State three features of the market identified in (i) above.

In an informal organisation, authority arises out of

Match the concepts of marketing in Column I with their respective explanations in Column II:\n\n\n\nChoose the correct options from the following:

Give meaning of 'Communication'. State first two elements in the process of communication.

State any three 'Organisational barriers' to Communication.

Explain the following principles of General Management: (i) Scalar chain (ii) Equity (iii) Initiative

'Objectives of Management can be classified into organisational, social and personal objectives.' Explain these objectives.

Which of the following statement is correct about personal selling:

'The principles of management can be modified by the managers when the situation so demands.'\nThis highlights which of the following feature of principles of management:

Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta always believed in understanding the business environment as well as responding and adapting to it. When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects.\nThe point of importance of Business Environment discussed above is:

Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalised and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations.\nThe aspect of the nature of management highlighted in the above case is:

Statement - I: Regulation of takeover bids by companies is one of the Regulatory functions of Securities and Exchange Board of India.\n Statement - II: Training of intermediaries of securities market is one of the Development functions of Securities and Exchange Board of India.\nChoose the correct option from the following:

There are two statements, Assertion (A) and Reason (R):\nAssertion (A): Coordination ensures unity of action.\nReason (R): Coordination act as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.\nChoose the correct alternative from the alternatives given below:

Bimal Rai is working in Funny Bunny Ltd. The company manufactures games and toys for children. The basic task of Bimal Rai is to integrate diverse elements and coordinate the activities of different departments. He also analyses the business environment and its implications for the survival of the firm. The level of management at which Bimal Rai is working is:

The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as:

Salim and Karim are good friends. They started a business of selling high quality seeds for growing organic vegetables. They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies and backyards. Due to the growing trend towards healthy consumption habits, there is a huge demand for their seeds. The dimension of business environment being discussed above is:

Shridhan wanted to purchase an electric car. He visited a retail showroom of a car company where these cars were displayed. The Marketing Manager of this showroom told Shridhan that the company offers credit facilities, maintenance services and many other services that help in bringing repeat sales and developing brand loyalty for their cars. The marketing function being discussed by the Marketing Manager in the above case is:

Which of the following statement is correct with respect to 'Exchange Mechanism', a feature of Marketing?

Which of the following is not a protective function of Securities and Exchange Board of India:

There are two Statements, Assertion (A) and Reason (R).\nAssertion (A): Larger the lead time, larger is the quantity of material required to be stored and larger shall be the amount of working capital required.\nReason (R): If the raw material do not have a record of un-interrupted availability, higher stock levels may be required.\nChoose the correct alternative from the alternatives given below:

HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures like training of employees and assigning additional workers and equipment to the project, the targets could not be met. The Production Manager, now, decided to revise the standards.\nIdentify the step of the controlling process under which the Production Manager decided to revise the standards.

Statement - I: Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions and reactions.\nStatement - II: Motivation can be either positive or negative.\nChoose the correct option from the following:

Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication.\nThe point of importance of organizing described above is:

'High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees etc.'\nThe dimension of business environment referred to above is:

P. Madhav is the production manager of 'Trendy Style Pvt. Ltd.', a firm manufacturing office furniture. His objective is to increase production by 20% in the next one year. But the Sales Manager, R. Shetty does not approve of the increase in production, till changes are brought about in the quality of wood, locks, handles etc. to incorporate latest trends. This kind of conflict brings to light an important concept of management that can help to link the activities of various departments.\n(i) Identify and explain the concept discussed above.\n(ii) State any two points of importance of the concept identified in (i) above.

Madhwan was appointed as a Human Resource Manager in 'Health Grow Ltd.' six months back. As a Human Resource Manager, he has to perform many specialised activities and duties like analyzing jobs by collecting information about jobs and prepare job descriptions, training and development of employees etc.\nState three other specialized activities that Madhwan must perform in addition to the above as a Human Resource Manager of Health Grow Ltd.

State any three points of importance of Financial Planning.

State any three factors that affect the fixed capital requirements of a company.

State any four points of importance of 'Directing' function of Management.

Ganesh Jain is the Marketing Manager at 'KL Foods Ltd'. He has a team of four employees working under him - Kavya, Ritesh, Pooja and Madhav. Kavya and Ritesh are temporary employees while Pooja and Madhav's job is permanent. All four of them have been working hard and consistently met all targets. Ganesh Jain wanted to reward them for their good performance. He understood that in all human beings, there exists a hierarchy of needs. So, he identified the need level of each of the employees to provide motivation to them. Kavya and Ritesh were made permanent in the job with a good pension plan while Pooja and Madhav were given an autonomy status. (i) Identify and state the need of employees recognized by Ganesh Jain in the above case. (ii) State any two assumptions on which Maslow's Need Hierarchy Theory is based on.

Explain the following points of importance of 'Planning' function of management: (i) Planning provides directions. (ii) Planning promotes innovative ideas. (iii) Planning reduces the risk of uncertainty.

Explain 'Objectives', 'Rule' and 'Budget' as types of plans.

DG Ltd., an E-plane car company has developed a revolutionary flying car for passenger mobility. This hybrid flying car can accommodate upto two persons and features innovative wing like doors for comfortable entry. The seats are designed for utmost comfort, crafted from high quality materials. The distinguishing feature of this flying car is that its production will be in India and it will utilise biofuel alongside electricity, ensuring a sustainable mode of transportation. DG Ltd. has obtained the first testing approval for its category. Priced at 2.5 crores, the company has to take decisions in respect of discounts to customers, credit terms etc., so that the customers perceive the price to be in line with the value of the product. To make the flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc. To communicate the availability, features, merits etc. of the product to the target customers and persuade them to buy the flying car. DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists. The above case describes the combination of elements used by DG Ltd. to prepare its market offering. Quoting lines from the above para, identify and explain the elements.