Important Questions and Answer BUSINESS STUDIES Class 12th MP BOARD 2026
Question 1 – Write two characteristics of management.
Answer – Two characteristics of management:
(i) Management is a purposeful process.
(ii) Management is all-encompassing.
(iii) Management is multifaceted.
(iv) It is a continuous process.
Question 2 – Management is an art. Explain.
Answer – Management is an art because it fulfills the following characteristics:
(i) There are various management principles based on which managers use behavior, creativity, and imagination.
(ii) Management uses art for day-to-day study and observation of the enterprise.
(iii) Knowledge is applied to situations.
Question 3 – Write any two functions of top-level management.
Answer – Functions of top-level management:
(i) Determining objectives.
(ii) Maintaining coordination among departments.
Question 4 – Write any two functions of lower-level management.
Answer – Lower-level management –
(i) Resolving the difficulties of workers.
(ii) Conveying workers’ problems and suggestions to middle management.
Question 5 – Write two characteristics of the business environment.
Answer – Characteristics of the business environment:
(i) The totality of external forces.
(ii) Uncertainty.
(iii) Dynamic nature.
Question 6 – What is meant by the technological environment?
Answer – The technological environment includes those forces related to science and innovation that provide new methods, procedures, and technologies for the production of goods.
Question 7 – What is meant by the economic environment?
Answer – Economic environment: Interest rates, price increases, changes in people’s disposable income, stock market indices, and the value of the rupee are economic elements of the general environment that can influence the management functions of a business enterprise.
Question 8 – What is meant by the legal environment?
Answer – Legal Environment The legal environment includes various bills passed by the government, administrative orders issued by government officials, court decisions, and decisions made by various commissions and agencies appointed at every level, central, state, or local.
Question 9 – Write two characteristics of planning.
Answer – Characteristics of planning:
(i) The focus of planning is goal achievement.
(ii) It is the primary function of management.
(iii) It is all-encompassing.
(iv) It is futuristic.
Question 10 – ‘Planning is an intellectual process.’ Explain.
Answer – Planning is an intellectual process because it requires the application of the mind along with foresight. Intelligent imagination and sound judgment are also essential.
Question 11 – Describe any two advantages of an organization.
Answer – Importance of Organization:
(i) Advantages of Specialization.
(ii) Optimum Use of Resources.
(iii) Adaptation to Change.
(iv) Effective Administration.
Question 12 – Write any two differences between a functional and divisional organizational structure.
Answer – Divisional Organization:
(i) Structure based on production lines.
(ii) Product Specialization.
(iii) It is simple.
Functional Organization:
(iv) Structure based on functions.
(ii) Job Specialization.
(iii) It is complex.
Question 13 – Write two advantages of a formal organization.
Answer – Advantages of a Formal Organization:
(i) Determining responsibility is easy.
(ii) Confusion does not arise.
(iii) Unity of command is maintained.
Question 14 – Write two disadvantages of an informal organization.
Answer – Disadvantages of an Informal Organization:
(i) Rumors spread easily.
(ii) It forces members to conform to group aspirations, which is harmful.
Question 15 – What is meant by branding?
Answer – Branding is the use of a brand, name, term, mark, symbol, or a combination thereof, to identify goods and services.
Question 16 – Describe two functions of packaging.
Answer – Functions of packaging:
(i) Product identification.
(ii) Product protection.
(iii) Product promotion.
Question 17 – Who is a consumer?
Answer – Under the Consumer Protection Act, a consumer is a person who purchases goods or avails services for which payment has been made, or payment has been promised, or payment has been partially made, or payment has been partially promised, or payment has been deferred under a scheme.
Question 18 – Write two responsibilities of a consumer.
Answer – Responsibilities of a consumer:
(i) To be aware of the various goods and services available in the market.
(ii) Purchase only standardized goods.
(iii) Take bills/cash memos.
Question 19 – Describe two consumer rights.
Answer – Consumer Rights –
(i) Right to Safety.
(ii) Right to Reassurance.
(iii) Right to Hearing.
Question 20 – Describe two methods/means of consumer protection.
Answer – Methods/means of Consumer Protection:
(i) Consumer Organizations
(ii) Government
(iii) Consumer Awareness
(iv) Trade Unions
Question 21 – Write two important aspects of the business environment.
Answer – Two important aspects of the business environment:
(1) Helpful in establishing a business
(2) Helpful in identifying opportunities
Question 22 – Explain India’s economic environment.
Answer – Economic Environment:
(i) India’s Economic System
(ii) India’s Economic Policies
Question 23 – What is meant by globalization?
Answer – Globalization is the encouragement of foreign private participation in industrial development.
Question 24 – What is meant by liberalization?
Answer – Liberalization was the announcement of a new industrial policy for economic reforms that sought to free industries from the shackles of the licensing system.
Question 25 – Write any two characteristics of planning.
Answer – Two characteristics of planning:
(1) Simplicity
(2) Clear Objectives
Question 26 – Write two objectives of planning.
Answer – Two objectives of planning:
(1) Providing specific direction
(2) Creating unity in activities
Question 27 – Write any two elements of organizational structure.
Answer – Two elements of organizational structure:
(1) Job design
(2) Departmentalization
Question 28 – Write any two advantages of functional organization.
Answer – Two advantages of functional organization:
(1) Suitable for specialization
(2) Effective control
Question 29 – Explain the departmental organization structure.
Answer – The entire enterprise is divided into small administrative units called departmental organizations.
Question 30 – Explain the formal organization.
Answer – In a formal organization, relationships between employees are pre-defined. In this, the duties, rights, and relationships of employees are clearly spelled out.
Question 31 – Write the internal sources of recruitment.
Answer – Two internal sources of recruitment:
(1) Promotion of employees
(2) Transfer of employees
Question 32 – Explain the characteristics of training.
Answer – Two characteristics of training:
(1) Employee development
(2) Skill development
Question 33 – Write any two points of the selection process.
Answer – Two points of the selection process:
(1) Receipt of applications
(2) Initial interview
Question 34 – Write the difference between training and development.
Answer – Difference between training and development:
Training – increasing knowledge, ability, and skills.
Development – the planned and organized advancement of employees at all levels of the organization.
Question 35 – What can be marketed?
Answer – Anything that has some value to others can be marketed.
Question 36 – What is meant by marketing? Write it.
Answer – The various activities required to deliver goods from producer to consumer are called marketing functions and marketing.
Question 37 – Why was the Consumer Protection Act implemented?
Answer – This Act was passed by the Indian Parliament in 1986 with the aim of effectively protecting the interests of consumers and providing them with a convenient and affordable justice system against exploitation.
Question 38 – Write the importance of consumer protection in any two points.
Answer – Two importance of consumer protection:
(1) Maximum satisfaction
(2) Getting compensation
Question 39 – Write any two rights of the consumer.
Answer – Two rights of the consumer:
(i) Freedom of choice
(ii) Standard goods
Question 40 – Write any two problems of the consumer.
Answer – Two problems of the consumer:
(1) The problem of adulteration
(2) The problem of substandard goods
Question 41 – Write four points of the planning process.
Answer – Four points of the planning process –
(1) Setting goals and objectives
(2) Setting limits
(3) Identifying various alternatives
(4) Selecting actions
Question 42 – Write the qualities of a good leader.
Answer – Qualities of a good leader:
(i) Vigour, patience, tolerance, decision-making ability.
(ii) Courage, knowledge, integrity.
(iii) Self-confidence, good communication skills.
Question 43 – Write the importance of motivation.
Answer – Importance of motivation:
(i) Motivation improves the performance level of employees.
(ii) It motivates employees to perform.
(iii) Develops abilities.
Question 44 – Write any three limitations of control.
Answer – Limitations of control:
(i) Difficulty in setting standards.
(ii) Less control over external factors.
(iii) Resistance from employees.
(iv) Expensive.
Question 45 – Explain ‘Planning and control are inseparable.’
Answer – Planning and control are interrelated.
If planning becomes operational, then control requires analysis of progress. If deviations occur, corrections are necessary. Thus, just as control without planning is meaningless, planning without control is blind.
Question 46 – Write three objectives of financial management.
Answer – Objectives of financial management:
(i) Availability of funds as needed.
(ii) Monitoring unnecessary resource increases.
(iii) Allocation of funds as needed.
(iv) Availability of funds at affordable prices.
Question 47 – Write three factors that influence the need for fixed capital.
Answer – Factors that influence the need for fixed capital:
(i) Nature of the business.
(ii) Operating standards.
(iii) Choice of technology.
(iv) Technological advancement.
(v) Growth expectations.
Question 48 – Write three functions of SEBI.
Answer – Functions of SEBI:
(1) Regulation of the securities market.
(ii) Regulation of brokers.
(iii) Prohibition of insider trading in shares.
(iv) Educating investors.
(v) Training intermediaries.
Question 49 – Write any three differences between the primary and secondary markets.
Answer – Primary Market:
(i) Sale of new securities only.
(ii) The company sells securities directly to the investor.
(iii) The location is not fixed.
Secondary Market:
(i) Buying and selling of old securities.
(ii) Buying and selling of securities among investors.
(iii) The location is fixed.
Question 50 – Write any three differences between a formal and informal organization.
Answer – Difference between a formal and informal organization (any three)
(1) Intention
(2) Establishment
(3) Stability
(4) Flow
(5) Objective
(6) Origin (any three)
Question 51 – Write any three differences between rights and responsibilities.
Answer – Difference between authority and responsibility:
(1) Intention
(2) Flow
(3) Origin
Question 52 – Write any three principles of direction.
Answer – Write three principles of direction:
(1) Principle of Consistency of Objectives
(2) Principle of Unity of Command
(3) Principle of Maximum Individual Contribution
(4) Principle of Appropriate Guidance Techniques
Question 53 – Write three points of need for motivation.
Answer – Need for Motivation (Any 3)
(1) Developing Interest in Work
(2) Inducing Productivity
(3) Boosting Morale
(4) Achieving Set Goals
Question 54 – Mention the various steps in the control process.
Answer – Three Steps in the Control Process:
(1) Setting Standards
(2) Measuring Actual Progress
(3) Comparing Actual Progress with Standards
(4) Analyzing Deviations
(5) Taking Corrective Action
Question 55 – State any three limitations of control.
Answer – Three limitations of control:
(1) Difficulty in setting quality standards
(2) Control by external forces
(3) Opposition from employees
(4) Expensive process
Question 56 – What is meant by labeling? Write its functions.
Answer – Labeling is an informational element that has the following functions:
(1) Product identification
(2) Product variety and classification
(3) Attracts customers through decorative touch.
Question 57 – What benefits do producers derive from advertising?
Answer – Advertising benefits producers:
(1) Information to the public about products
(2) Increased public confidence
(3) Reduced production costs
(4) Demand creation
Question 58 – Write the difference between advertising and personal selling.
Answer – Advertising:
(i) It is an impersonal form of communication.
(ii) Low per capita expenditure.
(iii) Shorter time for advertising to reach the market.
(iv) Reaches the general public.
Personal Selling –
(i) It is a personal form of communication.
(ii) The cost per person is very high.
(iii) It takes a lot of time to reach the entire market.
(iv) Limited reach.
Question 59 – Write four advantages of advertising.
Answer – Advantages of Advertising –
(i) Reaching a large number of people.
(ii) Increasing customer satisfaction and trust.
(iii) Clarity.
(iv) Economy.
(v) Effectiveness.
Question 60 – Describe any four external sources of recruitment.
Answer – External Sources of Recruitment –
(i) Direct Recruitment.
(ii) Waiting List.
(iii) Employment Exchange.
(iv) Placement Agency.
(v) Recruitment from Contractor, College/University.
Question 61 – Write four drawbacks of internal sources of recruitment.
Answer – Demerits of internal sources:
(i) No opportunity for new talent.
(ii) Employees may become inactive.
(iii) Hinders competition among employees.
(iv) New organizations cannot use internal sources.
Question 62 – Write the limitations of planning.
Answer – Limitations of planning:
(i) Not useful in a changing environment.
(ii) Reduces creativity.
(iii) Costs are high.
(iv) Wastes time.
(v) Success is not assured.
Question 63 – Write the steps in the planning process.
Answer – Steps in the planning process:
(i) Setting objectives.
(ii) Developing a basis.
(iii) Identifying alternatives.
(iv) Evaluating alternatives.
(v) Selecting an alternative.
(vi) Implementing the plan.
(vii) Follow-up.
Question 64 – Briefly describe any four principles of management propounded by Fayol.
Answer – Fayol’s principles:
(i) Division of work.
(ii) Authority and responsibility.
(iii) Discipline.
(iv) Unity of command.
(v) Unity of direction.
(vi) Hierarchy.
Question 65 – Write the importance of the principles of management. (Any four)
Answer – Importance of management principles:
(i) Providing managers with truly useful knowledge.
(ii) Maximum resource utilization and effective administration.
(iii) Scientific decision-making.
(iv) Fulfilling social responsibilities.
Question 66 – Write the main functions of management.
Answer – Main functions of management:
(1) Planning
(2) Organization
(3) Staffing
(4) Direction
(5) Control
Question 67 – Is management an art or a science? Explain.
Answer – Management is both an art and a science – art because it uses knowledge and skills to achieve desired objectives.
Science because it gains knowledge through study and experiments.
Question 68 – What are the similarities between the principles of Taylor and Fayol? (Any four)
Answer – Similarities between the principles of Taylor and Fayol:
(1) Elimination of defects
(2) Human behavior
(3) Social science
(4) Human behavior
Question 69 – Write any four principles propounded by Fayol.
Answer – Four principles propounded by Fayol:
(1) Division of work
(2) Authority and responsibility
(3) Discipline
(4) Unity of command
Question 70 – Write the essential elements of a good plan.
Answer – Essential elements of a good plan:
(1) Simplicity
(2) Clear objectives
(3) Economical
(4) Flexible
(5) In line with goals
(6) Balanced
(Any four)
——————————————————————————————————————————————————————————–