Q1:

Principles of Management

Easy

Who emphasized that there should be complete harmony between the management and the workers?

Answer options
Option 1
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 1

Q2:

Nature & Significance

Easy

______ makes diverse elements and sub-systems of an organisation to work harmoniously towards the realization of common objectives.

Answer options
Option 2
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 2

Q3:

Organising

Medium

Arrange the following in the correct sequence of the organizing process.

(A) Grouping the activities into workable units

(B) Workers are placed under the charge of an individual

(C) Identification and classification of activities

(D) Establishing a hierarchical structure and making provision for effective coordination

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 3

Q4:

Controlling

Medium

Arrange the following in the correct sequence of controlling process.

(A) Measurement of Actual Performance against Standards and their Comparison

(B) Establishment of Goals and Standards

(C) Corrective Action

(D) Using Critical Point Control and Management by Exception while analyzing the deviations

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 4

Q5:

Nature & Significance

Easy

Match List-I with List-II

List-IList-II
Management FunctionDescription
(A) Planning(I) Supervising employees
(B) Organising(II) Directly related to primary function
(C) Directing(III) Primary Function
(D) Controlling(IV) Assigning of work

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 5

Q6:

Planning

Easy

___________ bridges the gap from where we are, to where we want to go by deciding in advance what to do, when to do, and who is to do it.

Answer options
Option 3
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 6

Q7:

Consumer Protection

Easy

Which of the following is NOT an importance of consumer protection?

Answer options
Option 4
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 7

Q8:

Consumer Protection

Medium

Match List-I with List-II

List-IList-II
(A) Right to be heard(I) To be protected against hazardous goods
(B) Right to Consumer Education(II) Setting up a consumer grievance cell for the redressal of consumer complaints.
(C) Right to seek redressal(III) Being aware about the rights and reliefs available in case of problems with a product or service
(D) Right to Safety(IV) Providing relief to consumers in the form of replacement of a product or in the form of compensation.

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 8

Q9:

Business Environment

Easy

It is difficult to understand the impact of social, economic, political or legal factors on change in demand of a product in the market. Which feature of the business environment is indicated here?

Answer options
Option 4
Correct Answer
Explanation for 2025: 26 May Shift 2 BST question 9

Q10:

Controlling

Easy

Which of the following does not highlight the importance of controlling?

Answer options

Q12:

Directing

Easy

Arrange the following stages of the communication process.

(A) The message that is intended to be communicated is converted into words.

(B) A person wants to send a message to his friend.

(C) The words that are to be conveyed in the message are converted into symbols.

(D) The message is sent as SMS

Choose the correct answer from the options given below:

Answer options

Q13:

Marketing

Easy

Match List-I with List-II

List-IList-II
(A) Brand(I) Provides legal protection against its use by other firms.
(B) Brand Name(II) Used for identification of product
(C) Brand Mark(III) It is the verbal component which is spoken to identify the product.
(D) Trade Mark(IV) It is recognized from a symbol or design but can not be spoken.

Choose the correct answer from the options given below:

Answer options

Q14:

Controlling

Medium

Arrange the following steps of Controlling Process in a correct sequence.

(A) Measurement of Actual Performance against Standards and their Comparison

(B) Establishment of Goals and Standards

(C) Corrective Action

(D) Using Critical Point Control and Management by Exception while analyzing the deviations

Choose the correct answer from the options given below:

Answer options

Q16:

Business Environment

Medium

"Just take the universe, subtract from it the subset that represents the organisation, and the remainder is:"

Answer options

Q17:

Principles of Management

Easy

Match List-I with List-II

List-IList-II
Fayol' PrinciplePurpose
(A) Division of Work(I) To produce more and secure better performance with the same effort.
(B) Order(II) To emphasize the need for teamwork.
(C) Equity(III) To ensure everything is at its appointed place.
(D) Esprit de corps(IV) To promote equality of treatment while dealing with people.

Choose the correct answer from the options given below:

Answer options

Q18:

Marketing

Easy

Which of the following factor do not affect the price determination of a product?

Answer options

Q19:

Entrepreneurship Development

Easy

Identify the concept which implies "a desire to accomplish something difficult"?

Answer options

Q20:

Controlling

Easy

Which among the following concept serves as a benchmark towards which an organization strives to work?

Answer options

Q21:

Organising

Easy

_______ can be defined as a process that initiates implementation of plans by clarifying jobs and coordinating human efforts.

Answer options

Q23:

Directing

Medium

Which of the following are the communication barriers?

(A) Inverted u

(B) Semantic

(C) Psychological

(D) Organisational

Choose the correct answer from the options given below:

Answer options

Q24:

Consumer Protection

Easy

Which of the following is NOT the suggested ways or means of consumer protection?

  1. Self-regulation by Business
  2. Consumer protest
  3. Consumer Awareness
  4. Government

Answer options

Q25:

Directing

Easy

Which of the following statement does not represent a feature of leadership?

Answer options

Q26:

Entrepreneurship Development

Easy

_______ may be described as an attractive economic idea which could be implemented to create a business, earn profits and ensure further growth.

Answer options

Q27:

Planning

Easy

Which of the following are the importance of Planning?

(A) Planning provides direction

(B) Planning reduces overlapping and wasteful activities

(C) Planning promotes innovative ideas

(D) Planning reduces the risk of certainty

Choose the correct answer from the options given below:

Answer options

Q28:

Business Finance

Easy

What is the full form of EBIT?

Answer options

Q29:

Directing

Easy

Which of the following are correct statements regarding leadership?

(A) Influences behaviour of people

(B) Helps in handling conflicts

(C) Conforms that actual performance meets standards.

(D) Helps in introduction of required changes

Choose the correct answer from the options given below:

Answer options

Q30:

Directing

Easy

Which of the following is a semantic barrier in communication?

Answer options

Q31:

Nature & Significance

Easy

Which of the following does not represent the nature of management?

Answer options

Q32:

Principles of Management

Easy

Savitri is biased towards her female subordinates when it comes to solving the conflicts among the employees. Which principle is being violated here?

  1. Order
  2. Equity
  3. Discipline
  4. Span of control
Answer options

Q33:

Organising

Easy

Identify the importance of organising, from the options given below:

(A) Facilitates Administration

(B) Facilitates Growth and Diversification

(C) Facilitates optimum use of resources

(D) Facilitates adaptation to change

Choose the correct answer from the options given below:

Answer options

Q34:

Marketing

Easy

Identify from the options given below which is not a function of marketing?

Answer options

Q35:

Organising

Easy

Which organizational structure consists of separate business units?

Answer options

Q37:

Business Environment

Medium

Match List-I with List-II

List-IList-II
Features of Business EnvironmentExample
(A) Relative(I) Difficult to comprehend which factor is responsible for the increase in demand of a product.
(B) Complex(II) Difficult to predict future development in Information Technology.
(C) Dynamic(III) Demand of Saree is more in South India than that of North India.
(D) Uncertain(IV) Fast Technological upgradation and rising competition

Choose the correct answer from the options given below:

Answer options

Q38:

Controlling

Medium

Which of the following are the correct statements in the context of controlling?

(A) Controlling is a function that brings back the management cycle back to the planning function.

(B) Controlling helps in the formulation of future plans.

(C) Controlling is only backward looking function.

(D) Controlling is a pervasive function.

Choose the correct answer from the options given below:

Answer options

Q39:

Principles of Management

Easy

Sandhya, the Plant Supervisor, found that there were many unnecessary movements while doing a job which could be eliminated. Which technique can be used to solve the problem?

Answer options

Q40:

Nature & Significance

Easy

Management has to adapt itself to the changing environment. Which feature of management is discussed here?

Answer options

Q41:

Staffing

Easy

Apex Solutions, a mid-sized technology firm, recently embarked on a mission to expand its workforce due to increased demand for its services. The company's staffing process began with workforce planning, identifying the need to hire 30 new employees across various departments, including software development, sales, and customer support. The HR team outlined the required qualifications, experience levels, and skill sets for each role.

The recruitment phase involved a mix of strategies. Apex Solutions posted job advertisements on popular job boards and their company website. They also leveraged employee referrals and collaborated with a recruitment agency to attract a diverse pool of candidates. Within two weeks, they received over 500 applications.

The selection process was meticulously designed to ensure the best fit. Initial screening eliminated candidates who didn't meet the basic criteria. Shortlisted candidates underwent online aptitude tests and technical assessments. The top performers were invited for panel interviews, where their problem-solving abilities, technical expertise, and cultural fit were evaluated. Finally, background checks and reference verification were conducted for the selected candidates.

By following a structured staffing process, Apex Solutions successfully hired 30 new employees who aligned with the company's strategic goals. This approach minimized hiring errors and enhanced team productivity.

What was the first step in Apex Solutions' staffing process?

Answer options

Q42:

Staffing

Easy

Apex Solutions, a mid-sized technology firm, recently embarked on a mission to expand its workforce due to increased demand for its services. The company's staffing process began with workforce planning, identifying the need to hire 30 new employees across various departments, including software development, sales, and customer support. The HR team outlined the required qualifications, experience levels, and skill sets for each role.

The recruitment phase involved a mix of strategies. Apex Solutions posted job advertisements on popular job boards and their company website. They also leveraged employee referrals and collaborated with a recruitment agency to attract a diverse pool of candidates. Within two weeks, they received over 500 applications.

The selection process was meticulously designed to ensure the best fit. Initial screening eliminated candidates who didn't meet the basic criteria. Shortlisted candidates underwent online aptitude tests and technical assessments. The top performers were invited for panel interviews, where their problem-solving abilities, technical expertise, and cultural fit were evaluated. Finally, background checks and reference verification were conducted for the selected candidates.

By following a structured staffing process, Apex Solutions successfully hired 30 new employees who aligned with the company's strategic goals. This approach minimized hiring errors and enhanced team productivity.

What was the final step in the selection process at Apex Solutions?

Answer options

Q43:

Staffing

Easy

Apex Solutions, a mid-sized technology firm, recently embarked on a mission to expand its workforce due to increased demand for its services. The company's staffing process began with workforce planning, identifying the need to hire 30 new employees across various departments, including software development, sales, and customer support. The HR team outlined the required qualifications, experience levels, and skill sets for each role.

The recruitment phase involved a mix of strategies. Apex Solutions posted job advertisements on popular job boards and their company website. They also leveraged employee referrals and collaborated with a recruitment agency to attract a diverse pool of candidates. Within two weeks, they received over 500 applications.

The selection process was meticulously designed to ensure the best fit. Initial screening eliminated candidates who didn't meet the basic criteria. Shortlisted candidates underwent online aptitude tests and technical assessments. The top performers were invited for panel interviews, where their problem-solving abilities, technical expertise, and cultural fit were evaluated. Finally, background checks and reference verification were conducted for the selected candidates.

By following a structured staffing process, Apex Solutions successfully hired 30 new employees who aligned with the company's strategic goals. This approach minimized hiring errors and enhanced team productivity.

Which phase involves generating a pool of candidates?

Answer options

Q44:

Staffing

Easy

Apex Solutions, a mid-sized technology firm, recently embarked on a mission to expand its workforce due to increased demand for its services. The company's staffing process began with workforce planning, identifying the need to hire 30 new employees across various departments, including software development, sales, and customer support. The HR team outlined the required qualifications, experience levels, and skill sets for each role.

The recruitment phase involved a mix of strategies. Apex Solutions posted job advertisements on popular job boards and their company website. They also leveraged employee referrals and collaborated with a recruitment agency to attract a diverse pool of candidates. Within two weeks, they received over 500 applications.

The selection process was meticulously designed to ensure the best fit. Initial screening eliminated candidates who didn't meet the basic criteria. Shortlisted candidates underwent online aptitude tests and technical assessments. The top performers were invited for panel interviews, where their problem-solving abilities, technical expertise, and cultural fit were evaluated. Finally, background checks and reference verification were conducted for the selected candidates.

By following a structured staffing process, Apex Solutions successfully hired 30 new employees who aligned with the company's strategic goals. This approach minimized hiring errors and enhanced team productivity.

What is one benefit Apex Solutions achieved through their staffing process?

Answer options

Q45:

Staffing

Easy

Apex Solutions, a mid-sized technology firm, recently embarked on a mission to expand its workforce due to increased demand for its services. The company's staffing process began with workforce planning, identifying the need to hire 30 new employees across various departments, including software development, sales, and customer support. The HR team outlined the required qualifications, experience levels, and skill sets for each role.

The recruitment phase involved a mix of strategies. Apex Solutions posted job advertisements on popular job boards and their company website. They also leveraged employee referrals and collaborated with a recruitment agency to attract a diverse pool of candidates. Within two weeks, they received over 500 applications.

The selection process was meticulously designed to ensure the best fit. Initial screening eliminated candidates who didn't meet the basic criteria. Shortlisted candidates underwent online aptitude tests and technical assessments. The top performers were invited for panel interviews, where their problem-solving abilities, technical expertise, and cultural fit were evaluated. Finally, background checks and reference verification were conducted for the selected candidates.

By following a structured staffing process, Apex Solutions successfully hired 30 new employees who aligned with the company's strategic goals. This approach minimized hiring errors and enhanced team productivity.

Which recruitment strategy was not used by Apex Solutions?

Answer options

Q46:

Business Finance

Easy

ABC Manufacturing Ltd., a mid-sized company, is planning to expand its operations by setting up a new production facility. The financial planning team estimates the project cost at $10 million. The company's finance manager must decide how to fund this project and evaluate its profitability.

The finance team forecasts future cash flows, determining that $6 million can be sourced internally through retained earnings. They prepare a financial budget aligning expected inflows and outflows with the company's goals.

The finance manager evaluates options for the remaining $4 million, including issuing equity or taking a bank loan. After analyzing interest rates and dilution of ownership, they decided to issue long-term debt at a 5% interest rate.

A detailed capital budgeting process is conducted. Using Net Present Value (NPV) and Internal Rate of Return (IRR), the project shows an NPV of $2 million and an IRR of 18%, higher than the company's hurdle rate of 12%. The investment is approved.

Post-debt issuance, the company's capital structure becomes 60% equity and 40% debt, maintaining an optimal balance to minimize the cost of capital.

The company plans to allocate funds for raw materials, labor, and inventory to ensure smooth operations. Efficient working capital management will reduce bottlenecks during the initial phases of production.

Which of the following ensures smooth operations in production?

Answer options

Q47:

Business Finance

Hard

ABC Manufacturing Ltd., a mid-sized company, is planning to expand its operations by setting up a new production facility. The financial planning team estimates the project cost at $10 million. The company's finance manager must decide how to fund this project and evaluate its profitability.

The finance team forecasts future cash flows, determining that $6 million can be sourced internally through retained earnings. They prepare a financial budget aligning expected inflows and outflows with the company's goals.

The finance manager evaluates options for the remaining $4 million, including issuing equity or taking a bank loan. After analyzing interest rates and dilution of ownership, they decided to issue long-term debt at a 5% interest rate.

A detailed capital budgeting process is conducted. Using Net Present Value (NPV) and Internal Rate of Return (IRR), the project shows an NPV of $2 million and an IRR of 18%, higher than the company's hurdle rate of 12%. The investment is approved.

Post-debt issuance, the company's capital structure becomes 60% equity and 40% debt, maintaining an optimal balance to minimize the cost of capital.

The company plans to allocate funds for raw materials, labor, and inventory to ensure smooth operations. Efficient working capital management will reduce bottlenecks during the initial phases of production.

What is an optimal capital structure for ABC Ltd.?

Answer options

Q48:

Business Finance

Easy

Read the following passage carefully and answer the given questions.

ABC Manufacturing Ltd., a mid-sized company, is planning to expand its operations by setting up a new production facility. The financial planning team estimates the project cost at $10 million. The company's finance manager must decide how to fund this project and evaluate its profitability.

The finance team forecasts future cash flows, determining that $6 million can be sourced internally through retained earnings. They prepare a financial budget aligning expected inflows and outflows with the company's goals.

The finance manager evaluates options for the remaining $4 million, including issuing equity or taking a bank loan. After analyzing interest rates and dilution of ownership, they decided to issue long-term debt at a 5% interest rate.

A detailed capital budgeting process is conducted. Using Net Present Value (NPV) and Internal Rate of Return (IRR), the project shows an NPV of $2 million and an IRR of 18%, higher than the company's hurdle rate of 12%. The investment is approved.

Post-debt issuance, the company's capital structure becomes 60% equity and 40% debt, maintaining an optimal balance to minimize the cost of capital.

The company plans to allocate funds for raw materials, labor, and inventory to ensure smooth operations. Efficient working capital management will reduce bottlenecks during the initial phases of production.

What was the source of internal funding for ABC Manufacturing Ltd.?

Answer options

Q49:

Business Finance

Easy

ABC Manufacturing Ltd., a mid-sized company, is planning to expand its operations by setting up a new production facility. The financial planning team estimates the project cost at $10 million. The company's finance manager must decide how to fund this project and evaluate its profitability.

The finance team forecasts future cash flows, determining that $6 million can be sourced internally through retained earnings. They prepare a financial budget aligning expected inflows and outflows with the company's goals.

The finance manager evaluates options for the remaining $4 million, including issuing equity or taking a bank loan. After analyzing interest rates and dilution of ownership, they decided to issue long-term debt at a 5% interest rate.

A detailed capital budgeting process is conducted. Using Net Present Value (NPV) and Internal Rate of Return (IRR), the project shows an NPV of $2 million and an IRR of 18%, higher than the company's hurdle rate of 12%. The investment is approved.

Post-debt issuance, the company's capital structure becomes 60% equity and 40% debt, maintaining an optimal balance to minimize the cost of capital.

The company plans to allocate funds for raw materials, labor, and inventory to ensure smooth operations. Efficient working capital management will reduce bottlenecks during the initial phases of production.

In the context of ABC Manufacturing Ltd., the basic requirement of financial planning is to:

Answer options

Q50:

Business Finance

Medium

ABC Manufacturing Ltd., a mid-sized company, is planning to expand its operations by setting up a new production facility. The financial planning team estimates the project cost at $10 million. The company's finance manager must decide how to fund this project and evaluate its profitability.

The finance team forecasts future cash flows, determining that $6 million can be sourced internally through retained earnings. They prepare a financial budget aligning expected inflows and outflows with the company's goals.

The finance manager evaluates options for the remaining $4 million, including issuing equity or taking a bank loan. After analyzing interest rates and dilution of ownership, they decided to issue long-term debt at a 5% interest rate.

A detailed capital budgeting process is conducted. Using Net Present Value (NPV) and Internal Rate of Return (IRR), the project shows an NPV of $2 million and an IRR of 18%, higher than the company's hurdle rate of 12%. The investment is approved.

Post-debt issuance, the company's capital structure becomes 60% equity and 40% debt, maintaining an optimal balance to minimize the cost of capital.

The company plans to allocate funds for raw materials, labor, and inventory to ensure smooth operations. Efficient working capital management will reduce bottlenecks during the initial phases of production.

Why is financial planning crucial for expansion?

Answer options

CUET Business Studies 2025 26 May Shift 2 Past Year Question Paper

Every question from the CUET Business Studies 2025 26 May Shift 2 paper is here in full, with the correct answer and a step by step solution for each one. It is completely free, there is no login and no paywall, and you can read the whole paper online or download it to revise offline.

You can also attempt it instead of only reading it. Take the paper as a full length mock under exam conditions, or filter it by topic and attempt just that topic as a topic test. Both are free, and you get a breakdown of your accuracy, your timing and your weak areas once you submit.

CUET Business Studies past year questions (PYQs) are the closest thing to the real exam, so working through them is the quickest way to learn the paper pattern, the marking scheme and the level of difficulty to expect on the day.