CBSE 12 Business Studies Exam 2025-26: Most Important Questions with Answers for Last Minute Revision

The CBSE Class 12 Business Studies exam is scheduled for 28th March 2026, and with only a few hours left, it’s crucial to focus on high-scoring topics and important questions.To assist students with their last-minute preparations, we have compiled a set of important questions along with their answers.

Covers important topics. Includes basic subjective & marks wise questions. Provides sample practice paper question for better understanding. Contains quick revision notes and short & long answer questions.

CBSE 12 Business Studies Most Important Questions with Answers 2026

For the CBSE Class 12 Board Examination 2026, study the important Business Studies questions and make sure to utilize these key questions to secure 95% marks in the exam.

Q1- Explain the term Management?

Ans- Management is a process of getting the work done that is important for an organization to achieve its goal in an efficient and effective manner.

Q2- Briefly explain ‘discipline’ and ‘scalar chain’ as the principles of general management.

Ans- Discipline: Discipline implies that an establishment must follow the rules and regulations and make sure that the compliance to set some stipulated policies and rules. Discipline certainly requires some good supervisors at all the levels with clear and unbiased agreements and judicious application of penalties.

Scalar chain: Scalar chain refers to a defined, established pathway of authority and communication in the order of highest to the lowest.

Q3- Discuss why it is important for business enterprises to understand their environment?

Ans- Check the following points which are important to understand the business environment.

• Adjusting to Changes: The business environment has a dynamic nature. Adjustment to various changes in technology, consumers' taste, and preference, government policies is important for an enterprise.
• Threat Identification: Aside from the positive opportunities, it is important to identify the threat that the enterprise might face in the future.
• Accumulation of useful resources: Outer environment provides resources to the enterprises. It becomes important that the output provided by the organization is credible and desired in the local region.
• Performance improvement: The continuous analysis of the business environment helps the enterprise in understanding the ongoing demands. The moderation of policies can also take place with this.

Q 4- Mention any six importance of planning.

Ans- The importance of planning are mentioned in the points below:

• Reduces the risk of uncertainty
• Encoura- ges creative ideas
• Gives proper direction to any course of action
• Wasteful & unnecessary activities are reduced
• Promotes decision making
• Maintains standards of controlling

Q5- Mention the elements of delegation.

Ans- The three main elements of the delegation are:

• Responsibility: Responsibility means the adherence and answerability of the subordinate to complete the task given.
• Authority: Authority refers to the power given to an individual who can command and instruct the
• Accountability: Accountability refers to the answerability of the superior for the outcome of the work that he or she

Q6- What is the next step of selection?

Ans- Placement and Orientation.

Q7- Give three points of importance for directing the function of management.

Ans- The three points highlighting the importance of directing the function of management.

• Directing Integrates Employee’s Effort
• Motivation and Leadership
• Directing Initiates action

Q8-What is the formula of Return on Investment?

Ans- The formula of Return on Investment is. Return on Investment = Net Income / Cost of Investment

Q9- What is Financial Management?

Ans- Financial Management means directing, planning, organizing, and controlling the financial pursuits such as the utilization of the firm of the capital. It means applying the standards of general management to the financial resources of the firm. 

Q10- Discuss the recent Capital Market reforms in India

Ans- A capital market is divided into two parts i.e., Primary Market and Secondary Market. The primary market deals with the issue of new securities. While Secondary market deals in the purchase and sale of the existing securities.

After the 1991 reform, a three-tier system came into the Indian Stock Market. This three-tier system consisted of the National Stock Exchange, Regional Stock Exchanges, and Over the Counter Exchange of India (OTCEI).

Q11- How does labelling act as a silence salesman?

Ans- Labelling acts as a silence salesman because it attracts the customer by providing the necessary information. It acts as a promotional tool.

Q12- Define marketing? Explain its functions in the process of exchange of goods and services?

Ans- Marketing is the process wherein the buyers and sellers interact with each other with the purpose of purchase and sale of goods and services. Marketing involves certain functions like designing the product, planning, packaging, and labeling of the product and many other ways. It also involves activities after the sale of the product.

Q13- Mention when as a consumer you are not able to resolve your grievances under the Consumer Protection Act.

Ans- As a consumer, we are not able to resolve our grievances under the Consumer Protection Act when we do not fulfill our responsibility as a customer.

Q14- An organisation is using sub-standard wiring in its cooler. Which consumer right is being violated?

Ans- Right to Safety is being violated.

CBSE 12 Business Studies 2026 Extra Practice Questions

Q1-Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. (3)

Q2- What is important while analyzing deviations in controlling? (1)

Q3-State any three limitations of planning. (5)

Q4-The Indian corporate sector has come face-to-face with several challenges due government policy changes in business and industry. Explain any five such changes. (5)

Q5-State the meaning of the ‘Product Promotion’ function of packaging. (3)

Q6-“There is no need for human resource planning as so many people are available in the market these days.” Do you agree with this statement? Give reasons.(3)

Q7-What is Organizational Structure? Distinguish between Functional and Divisional structure on the following bases: (i) Formation (ii) Managerial development (iii) Responsibility (iv) Suitability. (6)

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