CBSE Class 12 Business Studies Case Study Questions with Answers

1. Nature and Significance of Management

A bakery delivers all 400 orders on time but wastes twice its usual ingredients. Which assessment is best?

1. Efficient and effective
2. Effective, but not efficient
3. Efficient, but not effective
4. Neither effective nor efficient

2. Principles of Management

A supervisor times repeated packaging tasks to establish a standard time under defined conditions. Which Taylor technique is used?

1. Motion study
2. Fatigue study
3. Time study
4. Differential piece wage system

3. Business Environment

Customers increasingly choose reusable containers because attitudes toward waste have changed. Which dimension is most directly involved?

1. Legal
2. Political
3. Social
4. Technological

4. Planning

A shop compares home delivery, a collection counter and an online marketplace against cost and reach before selecting a plan. Which planning step is shown?

1. Setting objectives
2. Evaluating alternative courses
3. Implementing the plan
4. Follow-up action

5. Organising

A manager gives a team leader authority to assign shifts but remains answerable to the director for the result. Which statement is correct?

1. The manager has transferred all accountability
2. Delegation removes supervision
3. Authority can be delegated; ultimate accountability remains
4. Only responsibility, never authority, can be assigned

6. Staffing

A business first invites applications, then tests and interviews applicants to choose one person. The second stage is:

1. Recruitment
2. Selection
3. Induction
4. Training

7. Directing

A firm recognises an employee publicly and gives her a more challenging role without increasing pay. These are mainly:

1. Financial incentives
2. Non-financial incentives
3. External recruitment
4. Financial controls

8. Controlling

A manager notices output is below the standard, investigates machine downtime and arranges repairs. Why is this more than measurement?

1. It also includes analysing deviations and corrective action
2. Standards are unnecessary
3. Planning has ended permanently
4. Any deviation should be ignored

9. Financial Management

A company assesses whether to buy an automated machine that will be used for several years. This is primarily:

1. Dividend decision
2. Working-capital collection
3. Long-term investment decision
4. Advertising decision

10. Financial Markets

An investor buys already-issued shares from another investor through an exchange. The transaction takes place in the:

1. Primary market
2. Secondary market
3. New issue market
4. Money market only

11. Marketing Management

A snacks producer changes pack size and its label to make the product easier to use. Which marketing-mix element is most directly affected?

1. Price
2. Place
3. Product
4. Promotion only

12. Consumer Protection

Before buying a food pack, a customer checks ingredients, quantity and expiry details. Which consumer right is most directly supported by accurate disclosure?

1. Right to be informed
2. Right to be heard only
3. Right to redressal only
4. Right to a guaranteed discount

Case 1: Nature and Significance of Management

A manager achieves the monthly sales target but uses repeated overtime and unnecessary transport trips, raising costs sharply.

Which two management ideas should be used to evaluate the result?

Answer guidance: Effectiveness is shown because the target was achieved. Efficiency is weak because the same result used more cost and resources than necessary. A complete answer should distinguish goal achievement from economical use of resources.

Class 12 BST case studies: choose a chapter below, attempt the original case without looking at the answer, then check the clue, concept and board-ready application.

Case 2: Principles of Management

At a manufacturing unit, a sales executive receives one instruction from the sales manager and a conflicting instruction from the production manager for the same task.

Identify the Fayol principle being violated and explain the clue.

Answer guidance: Unity of Command. One employee should receive orders from one superior for a particular task; conflicting orders from two managers create confusion.

Case 3: Business Environment

A packaged-food company redesigns labels and changes its production process after new legal standards require clearer ingredient disclosures and stricter waste rules.

Which dimension of business environment is the compulsory trigger?

Answer guidance: Legal environment is directly visible because binding standards require the change. The company may use technology to respond, but the trigger described in the case is legal.

Case 4: Planning

A firm sets a target to increase sales by 15%, studies alternative promotional plans, compares their cost and expected results, and then selects one plan.

Which planning steps are reflected?

Answer guidance: Setting objectives, identifying alternatives, evaluating alternatives and selecting an alternative are reflected in the sequence.

Case 5: Organising

A growing company groups jobs into finance, marketing and operations departments, assigns duties to managers and gives them authority to perform those duties.

Identify the organising ideas shown.

Answer guidance: Departmentalisation, assignment of duties and establishment/delegation of authority are shown.

Case 6: Staffing

A retailer estimates that it needs 20 new employees, advertises vacancies, screens applicants, interviews shortlisted candidates and provides induction after appointment.

Which staffing stages can you identify?

Answer guidance: Estimating manpower requirements, recruitment, selection and induction/orientation are visible.

Case 7: Directing

A manager explains goals clearly, listens to employee concerns, recognises good work publicly and encourages the team to suggest improvements.

Which elements of directing are most visible?

Answer guidance: Communication and motivation are clearly visible; leadership is also reflected in guiding the team and encouraging participation.

Case 8: Controlling

A company planned monthly output of 10,000 units but produced 9,200. The manager measures the gap, investigates machine downtime and schedules preventive maintenance.

Explain the controlling sequence in the case.

Answer guidance: Actual performance is measured, compared with the standard, the deviation is analysed and corrective action is taken.

Case 9: Financial Management

A company considering expansion compares the cost and risk of borrowing with issuing additional equity before choosing how to finance the project.

Which financial decision is involved?

Answer guidance: Financing decision—choosing the appropriate sources and mix of funds while considering cost and financial risk.

Case 10: Financial Markets

A company offers shares to investors for the first time. Months later, an investor sells those shares to another investor through a recognised stock exchange.

Identify the two markets involved.

Answer guidance: The company’s first issue takes place in the primary market. The later investor-to-investor trade takes place in the secondary market.

Case 11: Marketing Management

A beverage company launches a smaller pack, fixes an introductory price, expands availability to local stores and runs a social-media campaign.

Identify the marketing-mix elements.

Answer guidance: Product (smaller pack), Price (introductory price), Place (expanded distribution) and Promotion (social-media campaign).

Case 12: Consumer Protection

A buyer discovers that an appliance advertisement made a claim that the product cannot actually meet. The seller refuses to resolve the complaint.

Which consumer-protection ideas should guide the answer?

Answer guidance: The situation concerns protection against misleading claims and the consumer’s right to seek redressal. The exact remedy depends on the facts and applicable process.