ISC Class 12 Business Studies Exam 2024-25 : Most Important Questions Answers for Last-Minute Revision

ISC Class 12 exams are going on and you have very little time left for the Business Studies exam. Therefore, we are providing important questions in this article. You can study these thoroughly and score good marks in your exams.

To help you make your preparation effective, we have compiled a list of important questions with detailed explanations. These questions for ISC Class 12 Business Studies exam cover various topics from the syllabus.

👉 Read Also - ISC Class 12 Study Material

ISC Class 12th Business Studies Exam 2025 Most Important Questions

1. In order to adapt to changing work dynamics and provide flexibility to its employees, ABC Consulting Pvt. Ltd. decided to allocate a project to a group comprising employees in geographically dispersed settings.

Identify the emerging trend in Human Resources used by the ABC Consulting Pvt. Ltd.

Answer ⇒ Virtual Teams

2. Which characteristic of Human Resource Management deals with providing competent employees to an organisation, both now and in the future?

Answer ⇒ Future-oriented

3. Observe the relation between the first two words and then fill in the fourth word.

(a) Recruitment: Positive :: Selection: ___________ .

(b) Verbal communication : Oral communication :: Non verbal communication: ___________ . 

Answer ⇒ (a) Negative,         (b) visual communication

4. As per Maslow’s classification of Human Needs, safety needs consist of physical safety and ___________ safety.

Answer ⇒ economic

5. The Partnership Act limits the maximum number of partners in a non-banking partnership firm to ___________ .

Answer ⇒ fifty / 50 

6. On the basis of ___________ , Communication may be classified as internal and external.

Answer ⇒ area of operation

7. ___________ method of Performance Appraisal eliminates the subjective bias on the part of raters.

Answer ⇒ Merit grading

8. Casual leave is a type of leave granted to an employee that can be availed in an unexpected situation or an unforeseen event.

Select the MOST APPROPRIATE instance for casual leave.

(a) Mr. Aggarwal avails one week leave to take care of his wife who is in her last week of pregnancy.

(b) Ms. Khan takes one day leave to take her mother to the hospital as she had slipped and injured herself.

(c) Mr. D’Mello takes three days leave for his knee replacement surgery.

(d) Ms. Prabhjot takes four days leave to visit her parents in the village.

Answer ⇒ (b) Ms. Khan takes one day leave to take her mother to the hospital as she had slipped and injured herself

9. Mr. Rathi, CEO of a firm, frequently travels for work related to business. However, he ensures that he is present in office every Monday to monitor business operations. On his arrival, his personal assistant, Mr. Varma has to submit a report on the working of the previous week.

Which one of the following reports does Mr. Varma submit?

(a) Routine Report

(b) Special Report

(c) Statutory Report

(d) Public Report

Answer ⇒ (a) Routine Report

10. Staff dismissal involves permanent separation of an employee from the payroll. It is a drastic step and should therefore be resorted to with great care.

Which one of the following situations indicates staff dismissal?

(a) When an employee has reached the age of superannuation.

(b) When an employee fails to work according to the job requirements.

(c) When there is an acute shortage of raw material to continue work in the factory.

(d) When the employer relieves certain employees to reduce the cost of production.

Answer ⇒ (b) When an employee fails to work according to the job requirements.

11. Read the two statements given below and choose the correct option.

Statement I: In order to ensure effective learning, a teacher must minimise the barriers to communication.

Statement II: Communication is incomplete without feedback.

(a) Statement I is true but Statement II is false.

(b) Statement I is false but Statement II is true.

(c) Both Statement I and Statement II are true, and Statement II is the correct explanation for Statement I.

(d) Both Statement I and Statement II are true. But Statement II is not the correct explanation for Statement I.

Answer ⇒ (d) Both Statement I and Statement II are true. But Statement II is not the correct explanation for Statement I.

12. State whether the following are True or False:

(a) SEBI regulates the prices of the securities listed in the market.

(b) A public deposit is a deposit made by public in the nationalised banks.

(c) Human Resource Management is significant to an enterprise since it provides psychological satisfaction to people. 

(d) Venture Capital is one of the primary sources of finance for Start-ups.

Answer ⇒

(a) False

(b) False

(c) False

(d) True

13. Briefly explain any two limitations of e-Recruitment as a source of Staff Recruitment.

Answer ⇒ Limitations of e-recruitment

• Both, the employer and the prospective employees must have access to the internet.

• Both parties must have the required competence to use the internet.

• Creation of websites involves money.

• There is no human/personal touch in the process.

14. Briefly explain any two barriers to Communication. 

Answer ⇒ Barriers to Communication

• Semantic Barriers

• Physical and Mechanical Barriers

• Organisational Barriers

• Socio-psychological Barriers

15. With reference to staff selection, explain the significance of the following.

(i) Application Blank 

(ii) Placement

Answer ⇒

(i) Application Blank

• Helps in weeding out unsuitable candidates

• Helps in formulating questions for interview

• Data can be stored for future reference

(ii) Placement

• Helps to increase work efficiency

• Satisfaction of employees is ensured

• Helps in matching the skills of employee and job requirements

• Reduction in employee turnover

16. State any four requirements of a sound promotion policy.

Answer ⇒ Requirements of a sound promotion policy

• Clear Criteria and Eligibility

• Basis of promotion

• Transparency

• Equitable and Non-Discriminatory

• Appeal Mechanism for employees who are not promoted

• Employee Development Programs

• Regular policy review.

17. Distinguish between Authoritative and Democratic styles of Leadership on the following basis: 

(a) Effect on motivation and morale

(b) Development of subordinates

(c) Speed of work

(d) Resistance to change

Answer ⇒ Candidates are required to bring out the difference clearly between Authoritative and Democratic styles of Leadership as per the given basis of distinction. The differences should not be given as one word, rather should be explained in a sentence. Both the concepts have to be explained on the given basis to bring out the difference. Explaining only one concept correctly will not be considered a distinction.

18. Distinguish between Piece rate system and Time rate system of remuneration on the following basis: 

(a) Quality of work

(b) Wastage of resources

(c) Attitude of Trade Unions

(d) Weightage to efficiency

Answer ⇒ Candidates have to distinguish between Piece rate system and Time rate system of remuneration as per the given basis. The differences should not be given as one word, rather should be explained in a sentence. Both the concepts have to be explained on the given basis to bring out the difference. Explaining only one concept will not be considered a distinction.

19. What is meant by the following terms with reference to the sources of finance?

(i) Peer to peer Funding 

(ii) Factoring

Answer ⇒ 

(i) Peer to peer Funding

• Peer-to-peer funding involves direct lending and borrowing between individuals without traditional financial institutions.

• Operates through online platforms connecting borrowers with individual lenders.

• Participants include borrowers (individuals or small businesses seeking loans) and lenders (individual investors or people willing to lend money for returns).

• Lenders assume risk and earn returns through interest payments from borrowers.

• Interest rates are often determined by the borrower's creditworthiness.

• Connects individuals in need with a community of lenders, potentially benefiting those who may not meet traditional lending criteria.

(ii) Factoring

• Factoring involves selling accounts receivable (invoices) to a third party, known as a factor.

• Businesses use factoring to receive immediate cash flow by converting invoices into cash.

• This financial strategy transfers the risk of non-payment by customers to the factor, which takes on the responsibility of collecting payment.

• Factors charge fees for their services, usually based on a percentage of the total invoice value, with the discount subtracted from the face value of the invoices.

• Factoring is commonly used in industries with extended payment terms, providing immediate cash flow for businesses in manufacturing, distribution, and services.

20. Briefly outline the role of Job Analysis in the following processes.

(i) Recruitment and Selection

(ii) Training and Development

Answer ⇒ 

(i) Recruitment and Selection

• Serves as a realistic basis for hiring employees.

• Guides as to what an employee is expected to do on the job.

• A basis for meaningful forecast of job performance.

• Helps in creating job related interview questions and tests that are tailored to evaluate candidates based on the specific requirements of the job.

• Aligns actual demands and expectations of the job roles within an organisation.

(ii) Training and Development

• Identification of Training Needs

• Content and Curriculum Designing of the training programme

• Targeted Training Programmes

• Helps in evaluation of training programme and further modifications

21. ABC Ltd., a well-known IT firm has opened a new branch in Ahmednagar. In order to maintain their standards, the Company is committed to hiring the best brains in the field.

As the HR Manager of ABC Ltd., suggest any two strategies that the firm can use to attract suitable candidates. Justify your suggestion.

Answer ⇒ 

• Advertisements

• Campus recruitment

• Placement agencies

• e-Recruitment

22. Name and explain any two types of training.

Answer ⇒ 

• Orientation/Induction training

• Job training,

• Remedial training

• Safety training

• Refresher training

23. Briefly explain the following: 

(a) Outsourcing 

(b) e-business

(c) Globalisation 

(d) Communication

Answer ⇒ 

(a) Outsourcing

• Contracting out of certain business functions

• To an outside/third party

• Benefits of the third party’s expertise

• Three parties in outsourcing

(b) e-business

• Business through electronic or telecommunication networks

• Wider than e-Commerce

• Can be carried over open networks or closed networks with a gateway to open networks

• Order is placed electronically and goods/services delivered in tangible or electronic form

(c) Globalisation

• Entire world as one market

• Integration of a country’s economy with the world economy

• Economic activities crossing national boundaries

• Has brought a transformation in the way business is conducted

(d) Communication

• It is an exchange

• Facts, ideas, opinions or emotions

• Between two parties

• To create mutual understanding

24. Briefly explain the following: 

(a) Business Regulators 

(b) Business Intermediaries

(c) Reports 

(d) Group Insurance

Answer ⇒ 

(a) Business Regulators

• Constituted or appointed by the government

• To ensure the functioning of specified individuals and organisations

• To safeguard the interests of certain sections of the society

E.g., RBI, SEBI, IRDA FSSAI, ISI

(b) Business Intermediaries

• Individuals and organisations

• They act as the middlemen between two different groups of economy.

• Multiple intermediaries associated with one regulator.

E.g., Stock brokers, merchant bankers, depositories, mutual funds, etc.

(c) Reports

• Organised statement of facts

• It is relating to a particular subject.

• It is prepared after an inquiry or investigation.

• It is presented to the interested persons.

• It can be prepared with or without recommendations.

(d) Group Insurance

• Insurance coverage for a group of employees

• Often paid by the employer

• Cost effective

• Tailored plans to meet specific requirements

• Valid only till the employee is working for the employer

25. Ms. Chopra has applied for the post of an accountant in a firm in response to its advertisement in a daily newspaper.

Design the letter to be sent by the firm to Ms. Chopra, as she fulfils the criteria for recruitment.

Answer ⇒ As Ms. Chopra, fulfils the criteria for recruitment, an interview letter is to be written by the firm to Ms. Chopra. The letter should be written on the firm’s letterhead comprising all the components of an interview letter and duly signed by the firm’s authorised signatory. The alignment of the letter (left-aligned or centre-aligned) should be maintained throughout.