Q1:

Staffing

Easy

Staffing is the most fundamental and critical drive of organisational performance because :

Answer options
Option 3
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 1

Q2:

Consumer Protection

Easy

A consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services. Which of the following is true about consumer responsibilities.

(A) Learn about the risks associated with products and services, follow manufacturer's instructions and use the products safely.

(B) File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small.

(C) Respect the environment. Avoid waste, littering and contributing to pollution.

(D) Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 2

Q3:

Directing

Easy

Arrange the following as per Maslow's hierarchy of needs:

(A) It refers to the drive to become what one is capable of becoming.

(B) Hunger, thirst, shelter, and sleep are some examples of these needs.

(C) Job security, stability of income, Pension plans etc.

(D) These include factors such as self-respect, autonomy status, recognition and attention.

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 3

Q4:

Organising

Easy

The________ leads to the creation of an organisational structure which includes the designing of roles to be filled by suitably skilled people and defining the inter-relationship between these roles.

Answer options
Option 1
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 4

Q5:

Marketing

Easy

Identify which of the following is not a benefit derived by the customer on purchase of a product or a service.

Answer options
Option 4
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 5

Q6:

Consumer Protection

Easy

FSSAI (Food Safety and Standards authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. The Consumer Right being reinforced by this proposal is ________.

Answer options
Option 1
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 6

Q7:

Planning

Medium

Arrange the following steps of Planning process in order:

(A) Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future.

(B) An innovative course may be adopted by involving more people and sharing their ideas. If the project is important, then more alternatives should be generated and thoroughly discussed amongst the members of the organisation.

(C) Monitoring the plans is equally important to ensure that objectives are achieved.

(D) Every organization must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 7

Q8:

Organising

Medium

Which among the following is not an advantage of effective delegation in an organisation?

Answer options
Option 4
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 8

Q9:

Organising

Easy

Decentralization should be applied with caution as ___________.

Answer options
Option 1
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 9

Q10:

Business Environment

Easy

Which of the following statements best describe the features of Business Environment?

(A) Business environment is largely uncertain.

(B) Business environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality.

(C) Business environment includes only general forces.

(D) Business environment is a relative concept.

Choose the correct answer from the options given below:

Answer options

Q11:

Financial Markets

Medium

An investor wanted to invest Rs. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose, he came to know it was not possible.

Identify the reason why the investor could not invest in the Treasury Bill.

Answer options

Q12:

Organising

Easy

Match List-I with List-II

List-I (Concepts)List-II (Meaning)
(A) Responsibility(I) Granting of authority to subordinates to operate within prescribed limits.
(B) Accountability(II) Being answerable for the final outcome.
(C) Delegation(III) The obligation of a subordinate to properly perform the assigned duty.
(D) Centralisation(IV) Decision-making authority is retained by higher management levels.

Choose the correct answer from the options given below:

Answer options

Q13:

Principles of Management

Easy

Match List-I with List-II

List-I (Techniques of Scientific Management)List-II (Description)
(A) Method Study(I) Standard time taken to perform a well-defined job.
(B) Motion Study(II) Study of movements like lifting, putting objects, sitting and changing positions, etc..
(C) Fatigue Study(III) Minimise the cost of production and maximise the quality and satisfaction of the customer.
(D) Time Study(IV) Determines the amount and frequency of rest intervals in completing a task.

Choose the correct answer from the options given below:

Answer options

Q14:

Financial Markets

Medium

Arrange the following in the correct order of the working of the Demat System.

(A) An account opening form and documentation (PAN card details, photograph, power of attorney) may be completed.

(B) If shares are applied in a public offer, simple details of DP and demat account are to be given and the shares on allotment would automatically be credited to the demat account.

(C) The physical certificate is to be given to the DP along with a dematerialization request form.

(D) A Depository Participant (DP), either a bank, broker, or financial services company, may be identified.

Choose the correct answer from the options given below:

Answer options

Q15:

Controlling

Easy

Match List-I with List-II

List-I (Standards to gauge performance)List-II (Functional areas of Business)
(A) Sales volume, sales expense, advertising expenditure, individual sales performance, etc.(I) Production
(B) Labour turnover, labour relations, labor absenteeism, etc.(II) Finance and Accounting
(C) Quantity, quality, cost, individual job performance, etc.(III) Human Resource Management
(D) Flow of capital, capital expenditure, inventories, liquidity, etc.(IV) Marketing

Choose the correct answer from the options given below:

Answer options

Q16:

Marketing

Medium

Packaging has acquired great significance in the marketing of goods and services, because of following reasons:

(A) Because of the increasing standards of living in the country.

(B) Because the self-service retail outlets are becoming very popular.

(C) Because it helps in creating product differentiation.

(D) Because it describes the product and specifies its contents.

Choose the correct answer from the options given below:

Answer options

Q17:

Marketing

Easy

Match List-I with List-II

List-I (What can be marketed)List-II (Category)
(A) Events(I) Family Planning
(B) Services(II) Udaipur – 'The City of Lakes'
(C) Ideas(III) Fashion Show
(D) Place(IV) Online Trading

Choose the correct answer from the options given below:

Answer options

Q18:

Staffing

Medium

Arrange the process of staffing in correct order:

(A) Evaluating an employee's current and/or past performance as against certain predetermined standards.

(B) While designing an organization structure, an analysis of the decisions and the decision-making levels, is required thereby creating various job positions. Understanding is important to know the need and type of persons required.

(C) The advertisement for job may be displayed on the factory/office gate or else it may be get published in print media or flashed in electronic media.

(D) Introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.

Choose the correct answer from the options given below:

Answer options

Q19:

Business Environment

Easy

Which of the following is not a component of economic environment?

Answer options

Q20:

Marketing

Easy

"With the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features, etc".

Identify the marketing philosophy highlighted in the above lines.

Answer options

Q21:

Marketing

Medium

Which of the following statement is true?

Answer options

Q22:

Nature & Significance

Easy

In today's scenario, organizations look for individuals with specific qualifications and experience to manage them. What does the above statement imply?

Answer options

Q23:

Financial Markets

Easy

Which of the following is not a function of Stock Exchange?

Answer options

Q25:

Marketing

Easy

Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. Identify various criticisms of Advertising:

(A) Undermines Social Values

(B) Encourages Sale of Inferior Products

(C) Confuses the Buyers

(D) Flexible Tool

Choose the correct answer from the options given below:

Answer options

Q26:

Marketing

Easy

Marketing management generally is related to creation of demand. However, in certain situations, the manager has to restrict the demand. The job of Marketing Managers, in these situations would be to find ways to reduce the demand temporarily by reducing the expenditure on promotion or increasing the prices. This concept of demand being more than what the company can or want to handle is called ______

Answer options

Q27:

Nature & Significance

Medium

The production department at Karishma Ltd., a firm manufacturing readymade garments for men has an objective to increase production by 10% but the Sales department does not approve of the increase in production, till changes are brought about in the product to incorporate latest fashion. These kinds of conflicts bring to light which point of importance of the coordination that can help to accomplish the linking of activities of various departments:

Answer options

Q28:

Nature & Significance

Easy

"The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organization". The statement highlights which point of importance of management?

Answer options

Q29:

Consumer Protection

Easy

Mrs. Mathur sent her servant to the Chemist for purchasing medicine which she found was expired. On approaching the chemist, he accepted that medicine has expired.

Which right has been exercised by Mrs. Mathur?

Answer options
Option 1,3
Correct Answer
Explanation for 2026: 20 May Shift 1 BST question 29

Q30:

Planning

Easy

A standing plan is usually developed once but is modified from time to time to meet business needs as required.

Which of the following is a standing plan?

Answer options

Q32:

Planning

Easy

"In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it. Following a pre-decided plan, when circumstances have changed, it may not turn out to be in the organisations interest".

The above statement reflects which limitation of planning?

Answer options

Q33:

Organising

Easy

"It refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure."

Identify the concept of organization structure discussed in the above lines.

Answer options

Q34:

Controlling

Medium

Mr Shantanu is a Chief Manager of a reputed company that manufactures garments. He called the Production Manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes. Identify the importance of Controlling highlighted in the above situation.

Answer options

Q35:

Principles of Management

Easy

The following points summarise the nature of principles of management:

(A) The principles of management are formed by experience and collective wisdom of managers as well as experimentation.

(B) The principles of management are intended to apply to all types of organisations.

(C) The principles of management are rigid prescriptions, which have to be followed absolutely.

(D) The principles of management are intended to establish relationship between cause and effect.

Choose the correct answer from the options given below:

Answer options

Q36:

Financial Markets

Medium

It has been made compulsory to settle all trades within 2 days of the trade, i.e. on a T+2 basis, since 2003. Prior to the reforms, the securities were traded and all positions in the stock market were settled on a _______ settlement cycle whether it was delivery of securities or payment of cash

Answer options

Q37:

Financial Markets

Medium

"Yuvaan Ltd.", a reputed industrial machines manufacturer, needs twenty crores as additional capital to expand the business. Mr. Karan Rastogi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr. Lokesh Nayyar, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive. Name the method through which the company decided to raise additional capital.

Answer options

Q38:

Staffing

Easy

Match List-I with List-II

List-I (Steps in selection process)List-II (Description of Steps)
(A) Reference Checks(I) Elimination of unqualified or unfit job seekers based on the information supplied in the application forms.
(B) Contract of Employment(II) Generally contains a date by which the appointee must report on duty.
(C) Preliminary Screening(III) For verifying information and gaining additional information of an applicant.
(D) Job Offer(IV) It includes job title, duties, responsibilities, rates of pay, allowances, hours of work, leave rules, sickness, etc.

Choose the correct answer from the options given below:

Answer options

Q39:

Business Finance

Easy

A company is doing EBIT-EPS analysis as it is planning to use debt in its capital structure.

Arrange the following items in correct sequence for calculation of EPS

(A) Earnings Before Tax

(B) Earnings Before Interest and Taxes

(C) Earnings After Taxes

(D) Interest on Debt

Choose the correct answer from the options given below:

Answer options

Q40:

Principles of Management

Medium

"In Japanese companies, paternalistic style of management is in practice. If all workers go to strike they wear a black badge but work more than normal working hours to gain the sympathy of the management."

Identify the principle of Taylor highlighted in the above lines.

Answer options

Q41:

Business Finance

Medium

Charvi, after acquiring a degree in Hotel Management and Business Administration took over her family food processing company of manufacturing pickles, jams and squashes. The business was established by her great grandmother and was doing reasonably well. However, the fixed operating costs of the business were high and the cash flow position was weak. She wanted to undertake modernization of the existing business to introduce the latest manufacturing processes and diversify into the market of chocolates and candies. She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme. The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%). He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low. Though this will increase the financial risk, but will also raise the return to equity shareholders. He also apprised her that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with the Financial Consultant, Charvi decided to raise funds from a Financial Institution.

"He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low". Identify the factor reflected in the statement.

Answer options

Q42:

Business Finance

Medium

Charvi, after acquiring a degree in Hotel Management and Business Administration took over her family food processing company of manufacturing pickles, jams and squashes. The business was established by her great grandmother and was doing reasonably well. However, the fixed operating costs of the business were high and the cash flow position was weak. She wanted to undertake modernization of the existing business to introduce the latest manufacturing processes and diversify into the market of chocolates and candies. She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme. The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%). He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low. Though this will increase the financial risk, but will also raise the return to equity shareholders. He also apprised her that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with the Financial Consultant, Charvi decided to raise funds from a Financial Institution.

State the reason why Charvi should choose equity as the source of finance?

Answer options

Q43:

Business Finance

Easy

Charvi, after acquiring a degree in Hotel Management and Business Administration took over her family food processing company of manufacturing pickles, jams and squashes. The business was established by her great grandmother and was doing reasonably well. However, the fixed operating costs of the business were high and the cash flow position was weak. She wanted to undertake modernization of the existing business to introduce the latest manufacturing processes and diversify into the market of chocolates and candies. She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme. The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%). He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low. Though this will increase the financial risk, but will also raise the return to equity shareholders. He also apprised her that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with the Financial Consultant, Charvi decided to raise funds from a Financial Institution.

"Debt is considered to be the cheapest of all the sources". Identify the factor which supports this source of finance.

Answer options

Q44:

Business Finance

Easy

Charvi, after acquiring a degree in Hotel Management and Business Administration took over her family food processing company of manufacturing pickles, jams and squashes. The business was established by her great grandmother and was doing reasonably well. However, the fixed operating costs of the business were high and the cash flow position was weak. She wanted to undertake modernization of the existing business to introduce the latest manufacturing processes and diversify into the market of chocolates and candies. She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme. The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%). He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low. Though this will increase the financial risk, but will also raise the return to equity shareholders. He also apprised her that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with the Financial Consultant, Charvi decided to raise funds from a Financial Institution.

"The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%)." Identify the concept of Financial Management as reflected in the above situation.

Answer options

Q45:

Business Finance

Easy

Charvi, after acquiring a degree in Hotel Management and Business Administration took over her family food processing company of manufacturing pickles, jams and squashes. The business was established by her great grandmother and was doing reasonably well. However, the fixed operating costs of the business were high and the cash flow position was weak. She wanted to undertake modernization of the existing business to introduce the latest manufacturing processes and diversify into the market of chocolates and candies. She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme. The Financial Consultant advised her about the judicious mix of equity (40%) and Debt (60%). He also suggested her to take loan from Financial Institution as the cost of raising funds from Financial Institutions is low. Though this will increase the financial risk, but will also raise the return to equity shareholders. He also apprised her that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with the Financial Consultant, Charvi decided to raise funds from a Financial Institution.

"She was very enthusiastic and approached a Financial Consultant, who told her that approximately Rs. 50 lakhs would be required for undertaking the modernization and expansion programme."

Identify the concept of Financial Management which helped in deciding the quantum of finance required.

Answer options

Q46:

Directing

Medium

Three friends, Rajat, Raman, and Ansh, after completing their studies from a reputed business school in Delhi, were discussing the organisation they should be joining. Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service. Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc. Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience.

All of them have different set of expectations and needs of joining an organisation.

Which of the following non-financial incentive is not discussed in the above case?

Answer options

Q47:

Directing

Medium

Three friends, Rajat, Raman, and Ansh, after completing their studies from a reputed business school in Delhi, were discussing the organisation they should be joining. Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service. Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc. Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience.

All of them have different set of expectations and needs of joining an organisation.

"Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience."

Which of the incentives is being referred to in the context of Ansh's preference for job in an organisation?

Answer options

Q48:

Directing

Easy

Three friends, Rajat, Raman, and Ansh, after completing their studies from a reputed business school in Delhi, were discussing the organisation they should be joining. Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service. Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc. Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience.

All of them have different set of expectations and needs of joining an organisation.

Identify the element of the function of management as discussed in the above case.

Answer options

Q49:

Directing

Easy

Three friends, Rajat, Raman, and Ansh, after completing their studies from a reputed business school in Delhi, were discussing the organisation they should be joining. Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service. Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc. Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience.

All of them have different set of expectations and needs of joining an organisation.

"Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service."

Rajat puts stability in job on a high priority. Stability of job belongs to which level of needs of Maslow's needs hierarchy theory?

Answer options

Q50:

Directing

Easy

Three friends, Rajat, Raman, and Ansh, after completing their studies from a reputed business school in Delhi, were discussing the organisation they should be joining. Rajat was very clear about his future. He would like to take a job in the government sector as it gives him stability in his future income and the kind of work which will help him to work with greater zeal. It will also provide him with many post retirement benefits when he retires from his service. Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc. Ansh said that he would prefer to work with an organisation, which has a culture of individual autonomy that is considered by employees and provides employees with the opportunity for personal growth and meaningful work experience.

All of them have different set of expectations and needs of joining an organisation.

"Raman wants to work with a company which has an appropriate and clear development plan for its employees and helps the employees to grow to higher levels in the organisation. In addition to this, the company should also provide facilities like free housing, free medical aid etc."

Which of the following incentive is being prioritised by Raman for taking up the job?

Answer options

CUET Business Studies 2026 20 May Shift 1 Past Year Question Paper

Every question from the CUET Business Studies 2026 20 May Shift 1 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.

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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.