Q2:

Nature & Significance

Easy

"Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims". The definition is given by:

Answer options
Option 3
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 2

Q3:

Staffing

Easy

"It is a more reliable source of recruitment, and it also simplifies the process of selection and placement". The source of recruitment discussed here is:

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 3

Q4:

Directing

Medium

"A good motivation plan with suitable monetary and non-monetary rewards can motivate an employee as he or she may feel that efforts will bring them suitable rewards." This statement is associated with which principle of Directing?

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 4

Q5:

Principles of Management

Easy

Match List-I with List-II

List-I (Principles of Management)List-II (Explanation)
(A) Equity(I) The overall pay and compensation should be fair to both employees and the organization.
(B) Remuneration of employees(II) Employee turnover should be minimized.
(C) Stability of personnel(III) Employees should be treated as fairly as possible.
(D) Order(IV) People and materials must be in suitable places at the appropriate time for maximum efficiency.

Choose the correct answer from the options given below:

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 5

Q6:

Controlling

Easy

Identify the incorrect step in the process of controlling listed below:

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 6

Q7:

Principles of Management

Medium

"Employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include the contribution of the employee, the paying capacity of the employer and also the prevailing wage rate for the occupation under consideration."

The nature of principles of management depicted in the above is:

Answer options
Option 1
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 7

Q8:

Organising

Easy

Arrange the following steps in the process of Organising in a logical sequence:

(A) Departmentalization

(B) Assignment of Duties

(C) Establishing authority and reporting relationships

(D) Identification and division of work

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 8

Q9:

Directing

Easy

A__________ not only commits his followers to organisational goals but also pools needed resources, guides and motivates subordinates to reach the goals.

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 9

Q10:

Organising

Easy

According to Louis Allen, one of the following is not an essential element of the Delegation. Identify:

Answer options

Q11:

Consumer Protection

Medium

"Form consumer societies which would play an active part in educating consumers and safeguarding their interests" is a :

Answer options

Q12:

Planning

Easy

"Planning is an activity which is done by the top management. Usually, the rest of the members just implement these plans."

The limitation of Planning stated above is related to:

Answer options

Q13:

Nature & Significance

Easy

"Management has a systematized body of knowledge. It has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics". In the above statement, management has been described as:

Answer options

Q14:

Staffing

Easy

Ryan is the HR Manager in an organization providing Pest Control Services in large corporate houses. He has been assigned the work of appointing Field Supervisors. The sequence of steps which will be undertaken by him will be:

(A) Recruitment

(B) Placement and orientation

(C) Estimating manpower requirements

(D) Selection

Choose the correct answer from the options given below:

Answer options

Q15:

Financial Markets

Easy

In 1992 _______________ was incorporated to establish a nationwide trading facility for all types of securities.

Answer options

Q16:

Business Finance

Hard

Rekha is the Factory Manager of an Export house manufacturing garments. The factors which she will keep into consideration while deciding about working capital requirements will include:

(A) Operating administration

(B) Suitability of raw materials

(C) Level of competition

(D) Growth prospects

Choose the correct answer from the options given below:

Answer options

Q17:

Planning

Easy

Arrange the steps in the planning process in a logical sequence

(A) Follow-up action

(B) Setting objectives

(C) Selecting an alternative

(D) Developing premises

Choose the correct answer from the options given below:

Answer options

Q18:

Financial Markets

Easy

Rukul is a regular investor in the stock market. He follows the settlement cycle of _________ on a rolling settlement basis.

Answer options

Q19:

Marketing

Medium

Match List-I with List-II

List-I (Branding terminology)List-II (Explanation)
(A) Trademark(I) Unutterable part
(B) Brand name(II) Legal protection against its use by other firms.
(C) Brand(III) Verbal component
(D) Brand mark(IV) Name, term, sign, symbol, design or some combination

Choose the correct answer from the options given below:

Answer options

Q20:

Directing

Medium

___________ is an inner state that energizes, activates or moves and directs behavior towards goals.

Answer options

Q22:

Staffing

Easy

The Plant Supervisor is preparing the list of candidates after taking an interview. The correct sequence of steps to be followed by him in this selection process would be:

(A) Reference and background checks

(B) Selection decision

(C) Job offer

(D) Medical Examination

Choose the correct answer from the options given below:

Answer options

Q23:

Planning

Easy

"They define the future state of affairs which the organization strives to realize and serve as guide for overall business planning."

_______________ is the type of plan referred here.

Answer options

Q24:

Business Environment

Easy

"A change in food habits i.e. shift towards packaged food, due to the ongoing trend" is related to which dimension of the business environment.

Answer options

Q25:

Consumer Protection

Medium

Points of importance of consumer protection from a business point of view include:

(A) Consumer justification

(B) Government intervention

(C) Social responsibility

(D) Business uses society's resources

Choose the correct answer from the options given below:

Answer options

Q26:

Directing

Easy

Identify the correct sequence of hierarchy of needs in Motivation theory as given by Abraham Maslow in 1943

(A) Safety/Security Needs

(B) Affiliation Needs

(C) Self Actualisation

(D) Esteem Needs

(E) Physiological Needs

Answer options

Q27:

Nature & Significance

Easy

"Management is multidimensional" doesn't include:

Answer options

Q28:

Staffing

Medium

"This method incorporates a prearranged and proposed acquisition of some specific skills or general knowledge". Identify the method of training:

Answer options

Q30:

Business Environment

Medium

The components of the Political Environment are:

(A) The degree of politicisation of business and economic issues

(B) Dominant ideologies and values of major political parties

(C) The level of political morality

(D) Concern with quality of life

Choose the correct answer from the options given below:

Answer options

Q31:

Controlling

Hard

"Planning and Controlling are inseparable twins of Management". Based on this statement

Match the following relationship between planning and controlling

List-I (Planning Characteristics)List-II (Controlling Characteristics)
(A) Planning is prescriptive(I) Controlling is easier and more effective
(B) Planning is looking ahead(II) Controlling compels events to conform to plans
(C) Planning based on facts(III) Controlling is Evaluative
(D) Planning based on articulated programmes(IV) Controlling is looking back

Choose the correct answer from the options given below:

Answer options

Q32:

Financial Markets

Medium

Match List-I with List-II

List-I (Functions/objectives of SEBI)List-II (Explanation)
(A) Training of intermediaries(I) Objective of SEBI
(B) Controlling insider trading(II) Regulatory function
(C) Guide and educate individual investors(III) Development function
(D) Levying fee for carrying out the purposes of the act(IV) Protective function

Choose the correct answer from the options given below:

Answer options

Q33:

Directing

Easy

"It is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions." Identify the term:

Answer options

Q34:

Organising

Easy

Identify the advantage of functional structure:

Answer options

Q35:

Organising

Medium

Who gave the following definition of Decentralisation

"Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points"

Answer options

Q36:

Principles of Management

Medium

The significance of Principles of Management can be highlighted by

(A) Optimal procurement of cheap resources and justifiable administration

(B) Providing managers with ready-made solutions to all the problems

(C) Meeting the static environmental requirements

(D) Help in taking scientific decisions

Choose the correct answer from the options given below:

Answer options

Q37:

Marketing

Easy

Objections to advertising include:

(A) Undermines social values

(B) Some advertisements are in bad taste

(C) Adds to cost

(D) Confuses the seller

Choose the correct answer from the options given below:

Answer options

Q38:

Consumer Protection

Medium

Match List-I with List-II

List-I (Consumer Rights)List-II (Explanation)
(A) Right to seek redressal(I) Right to file a complaint in case of dissatisfaction with a good or service.
(B) Right to be heard(II) Right to get relief in case the product or service falls short of his expectations.
(C) Right to be informed(III) Right to get complete details about the product
(D) Right to consumer education(IV) Right to acquire knowledge throughout life.

Choose the correct answer from the options given below:

Answer options

Q39:

Organising

Medium

The definition, "Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them." is given by:

Answer options

Q40:

Directing

Easy

"A worried person cannot communicate properly, and an angry receiver cannot understand the real meaning of a message" This statement is related to:

Answer options

Q41:

Business Finance

Easy

Altros Ltd. dealing in ready made garments, is planning to expand its business operations in order to cater to international market. For this purpose, the company needs additional ₹80,00,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing Debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹8,00,000 and total capital investment was ₹1,00,00,000. Instead of issuing 10% Debenture the company can issue Equity shares for raising the funds. The financial manager of the company would normally opt for a source which is the cheapest.

A decision for replacing machines with modern machinery of higher production capacity is a:

Answer options

Q42:

Business Finance

Easy

Altros Ltd. dealing in ready made garments, is planning to expand its business operations in order to cater to international market. For this purpose, the company needs additional ₹80,00,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing Debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹8,00,000 and total capital investment was ₹1,00,00,000. Instead of issuing 10% Debenture the company can issue Equity shares for raising the funds. The financial manager of the company would normally opt for a source which is the cheapest.

What is the other name of long-term investment decision?

Answer options

Q43:

Business Finance

Easy

Altros Ltd. dealing in ready made garments, is planning to expand its business operations in order to cater to international market. For this purpose, the company needs additional ₹80,00,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing Debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹8,00,000 and total capital investment was ₹1,00,00,000. Instead of issuing 10% Debenture the company can issue Equity shares for raising the funds. The financial manager of the company would normally opt for a source which is the cheapest.

The financial decisions are affected by various factors. Which one of the following factors is discussed in the above case?

Answer options

Q44:

Business Finance

Easy

Altros Ltd. dealing in ready made garments, is planning to expand its business operations in order to cater to international market. For this purpose, the company needs additional ₹80,00,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing Debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹8,00,000 and total capital investment was ₹1,00,00,000. Instead of issuing 10% Debenture the company can issue Equity shares for raising the funds. The financial manager of the company would normally opt for a source which is the cheapest.

A decision to raise funds for ₹ 80,00,000 either from 10% Debenture or Equity shares is a:

Answer options

Q45:

Business Finance

Easy

Altros Ltd. dealing in ready made garments, is planning to expand its business operations in order to cater to international market. For this purpose, the company needs additional ₹80,00,000 for replacing machines with modern machinery of higher production capacity. It involves committing the finance on a long-term basis. These decisions are very crucial for any business since they affect its earning capacity in the long run. The company wishes to raise the required funds by issuing Debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹8,00,000 and total capital investment was ₹1,00,00,000. Instead of issuing 10% Debenture the company can issue Equity shares for raising the funds. The financial manager of the company would normally opt for a source which is the cheapest.

The decision involving the choice between the right mix of equity financing and debt financing is:

Answer options

Q46:

Marketing

Easy

Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.

Which function of marketing is highlighted in this statement -"The company launched multiple programs to inform school students about all this."

Answer options

Q47:

Marketing

Easy

Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.

Which function of marketing is highlighted in the line, "They did all the primary and secondary market research in form of surveys, interviews, data mining etc."?

Answer options

Q48:

Marketing

Easy

Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.

Which function of marketing is highlighted in the line, "To make it easier for the students to use the product, they included services such as after-sales services, maintenance services, and technical services in their product."?

Answer options

Q49:

Marketing

Easy

Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.

Which function of marketing is highlighted in the line, "By understanding the needs, they finally developed a product in such a way that attracts the targeted customers."?

Answer options

Q50:

Marketing

Easy

Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.

Which function of marketing is highlighted in the line, "The company decided to follow the freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements."?

Answer options

CUET Business Studies 2026 21 May Shift 1 Past Year Question Paper

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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.