Q1:

Staffing

Easy

"A notice is placed on the notice-board of the enterprise specifying the details of the jobs available. Jobseekers assemble outside the premises of the organisation on the specified date and selection is done on the spot". The external source of recruitment being explained in the statement is:

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

Q3:

Controlling

Easy

The correct sequence of process of controlling in Samaya doll manufacturing ltd. is:

A. Counting the no. of dolls manufactured

B. Setting a target of manufacturing 50 dolls per day

C. The acceptable range of deviations is 45

D. Comparing of actual performance with standards

Choose the correct answer from the options given below:

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

Q4:

Marketing

Easy

Brand is a comprehensive term, which has two components:

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

Q5:

Planning

Easy

Identify, which of the following is not a limitation of planning:

Answer options
Option 4
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 5

Q6:

Principles of Management

Easy

Match the LIST-I with LIST-II

LIST-I (Fayol's Principles of Management)LIST-II (Meaning)
A. Unity of CommandI. The formal lines of authority from highest to lowest ranks
B. Scalar ChainII. A place for everything (everyone) and everything (everyone) in its (her/his) place
C. Unity of DirectionIII. There should be one and only one boss for every individual employee
D. OrderIV. All the units of an organisation should move towards the same objectives

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 6

Q7:

Directing

Easy

The correct sequence of process of motivation is:

A. Reduction of Tension

B. Tension and Drives

C. Unsatisfied Need

D. Search Behaviour and Need Satisfaction

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 7

Q8:

Principles of Management

Easy

Fayol's Principles of Management include:

A. Division of work

B. Authority and responsibility

C. Standardisation and simplification of work

D. Centralisation and decentralisation

Choose the correct answer from the options given below:

Answer options
Option 3
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 8

Q9:

Business Finance

Easy

The impact of tax rate on cost of debt is:

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

Q10:

Marketing

Easy

The statement related to the Societal Marketing Concept is:

Answer options

Q11:

Business Finance

Medium

The factors affecting the Working Capital Requirements are:

A. Credit allowed

B. Financing alternatives

C. Cost of equity

D. Operating efficiency

Choose the correct answer from the options given below:

Answer options

Q13:

Consumer Protection

Easy

The reasons for protecting consumers from the point of view of business are:

A. Business uses society's resources

B. Moral justification

C. Government intervention

D. Social responsibility

Choose the correct answer from the options given below:

Answer options

Q14:

Controlling

Easy

Match the LIST-I with LIST-II

LIST-I (Statement regarding importance of Controlling)LIST-II (Importance of Controlling)
A. The controlling function measures progress towards the organisational goals and brings to light the deviations.I. Judging accuracy of standards
B. A manager seeks to reduce wastage and spoilage of resources through controlling them.II. Making efficient use of resources
C. A good control system enables management to verify whether the standards set are accurate and objective.III. Accomplishing organisational goals
D. Controlling helps to minimise dishonest behaviour on the part of employees.IV. Ensuring order and discipline

Choose the correct answer from the options given below:

Answer options

Q15:

Staffing

Easy

The correct sequence of the selection process is:

A. In-depth conversation to evaluate the applicant's suitability

B. Eliminating unqualified or unfit jobseekers based on information supplied in application forms.

C. Measuring certain characteristics of individuals on the basis of tests.

D. Preparing the contract of employment

Choose the correct answer from the options given below:

Answer options

Q16:

Business Finance

Easy

The financial risk is:

Answer options

Q17:

Financial Markets

Medium

The regulatory function of SEBI is:

Answer options

Q18:

Financial Markets

Medium

Match the LIST-I with LIST-II

LIST-I (Money Market Instrument)LIST-II (Features)
A. Certificate of DepositI. Bill of Exchange used to finance the working capital requirements of business firms.
B. Commercial PaperII. Short term unsecured, negotiable instruments issued by Commercial Banks and Development Finance Institutions.
C. Commercial BillIII. Short term finance repayable on demand, used for inter bank transactions
D. Call MoneyIV. Short term, unsecured promissory note, negotiable and transferable by endorsement, used for bridge financing.

Choose the correct answer from the options given below:

Answer options

Q20:

Financial Markets

Medium

It is mandatory to settle all stock market trades as per settlement cycle on ______________ on a rolling settlement basis.

Answer options

Q21:

Marketing

Easy

Match the LIST-I with LIST-II

LIST-I (Marketing Management Philosophies)LIST-II (Definition)
A. The Production ConceptI. Customers will not buy, or not buy enough, unless they are adequately convinced and motivated to do so.
B. The Product ConceptII. Focus on satisfaction of customer's needs is the key to the success of any organisation in the market.
C. The Selling ConceptIII. Consumers would favor those products which were widely available at an affordable price.
D. The Marketing ConceptIV. Customers started looking for products which were superior in quality, performance and features.

Choose the correct answer from the options given below:

Answer options

Q23:

Marketing

Medium

The function of Packaging is:

Answer options

Q24:

Organising

Easy

The management function associated with assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan is ____________.

Answer options

Q25:

Financial Markets

Easy

The following is not a method of floating new issues in the primary market:

Answer options

Q26:

Marketing

Easy

The Promotion Mix element of Marketing Mix includes:

A. Advertising

B. Branding

C. Sales promotion

D. Personal selling

Choose the correct answer from the options given below:

Answer options

Q27:

Financial Markets

Medium

The short term instrument issued by the Reserve Bank of India is:

Answer options

Q28:

Consumer Protection

Easy

"The consumer has the freedom to access a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these". The right of a consumer being explained in the statement is:

Answer options

Q30:

Business Finance

Medium

Match the LIST-I with LIST-II

LIST-I (Decision)LIST-II (Factors affecting the decision)
A. Financing DecisionI. Interest Coverage Ratio (ICR)
B. Dividend DecisionII. Cash Flow Position of the Company
C. Capital StructureIII. Choice of Technique
D. Fixed CapitalIV. Shareholders' Preference

Choose the correct answer from the options given below:

Answer options

Q31:

Business Finance

Medium

A high Debt Service Coverage Ratio indicates:

Answer options
Option 2,3
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 31

Q32:

Business Finance

Easy

The decision involving identification of various available sources of funds is:

Answer options

Q33:

Staffing

Easy

The correct order of steps in staffing process is:

A. Recruitment

B. Training and development

C. Familiarizing with the rules and policies

D. Specifying the job description

Choose the correct answer from the options given below:

Answer options

Q38:

Business Environment

Easy

The dimensions of, or the factors constituting, the business environment are:

A. Personal environment

B. Economic environment

C. Social environment

D. Legal environment

Choose the correct answer from the options given below:

Answer options

Q39:

Planning

Easy

"Planning is concerned with the future, which is uncertain, and every planner is using conjecture about what might happen in the future. Therefore, the manager is required to make certain assumptions about the future".

In the above statement, the assumptions can be referred to as:

Answer options

Q40:

Planning

Easy

Arrange the following steps of the planning process in correct order:

A. Selecting an alternative

B. Setting objectives and developing premises

C. Evaluating alternative courses of action

D. Implementing the plan

Choose the correct answer from the options given below:

Answer options

Q41:

Directing

Medium

Grassroot Leadership - Ford Motor Co.

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker's cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen.

Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company's operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Ford Motor Company is very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world's most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability.

Ford views grassroot leadership as the best vehicle for creating a successful business.

The management function being explained in the above passage is:

Answer options

Q42:

Directing

Easy

Grassroot Leadership - Ford Motor Co.

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker's cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen.

Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company's operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Ford Motor Company is very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world's most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability.

Ford views grassroot leadership as the best vehicle for creating a successful business.

The vision of CEO Jim Hackett was:

Answer options

Q43:

Directing

Easy

Grassroot Leadership - Ford Motor Co.

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker's cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen.

Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company's operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Ford Motor Company is very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world's most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability.

Ford views grassroot leadership as the best vehicle for creating a successful business.

The individuals or groups which the Ford Motor Company could not attract and nurture are:

Answer options

Q44:

Directing

Easy

Grassroot Leadership - Ford Motor Co.

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker's cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen.

Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company's operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Ford Motor Company is very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world's most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability.

Ford views grassroot leadership as the best vehicle for creating a successful business.

"Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen."

What did Ford Motor Company do to achieve the above objective?

Answer options

Q45:

Directing

Easy

Grassroot Leadership - Ford Motor Co.

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker's cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of "warrior entrepreneurs" — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen.

Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company's operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Ford Motor Company is very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world's most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability.

Ford views grassroot leadership as the best vehicle for creating a successful business.

Who according to Ford falls into category of "warrior entrepreneurs"?

Answer options

Q46:

Organising

Easy

Structural Transformation at ONGC

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.

The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.

Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.

Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project

Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.

Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out .

The management function being explained in the passage is:

Answer options

Q47:

Organising

Easy

Structural Transformation at ONGC

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.

The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.

Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.

Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project

Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.

Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out .

Since ONGC was suffering from Organizational atrophy, it sought help from Mckinsey. What did Mckinsey do in order to resolve this issue?

Answer options

Q48:

Organising

Easy

Structural Transformation at ONGC

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.

The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.

Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.

Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project

Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.

Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out .

Even though Mckinsey's recommendations were broadly accepted, what kind of issues concerning commonly shared services needed to be sorted out?

Answer options

Q49:

Organising

Easy

Structural Transformation at ONGC

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.

The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.

Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.

Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project

Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.

Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out .

What was the main reason behind ONGC's organizational atrohpy?

Answer options

Q50:

Organising

Easy

Structural Transformation at ONGC

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.

The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.

Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.

Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled 'Organisation Transformation Project

Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.

Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out .

Which approach did Mckinsey recommend to ONGC?

Answer options

CUET Business Studies 2026 21 May Shift 2 Past Year Question Paper

Every question from the CUET Business Studies 2026 21 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.

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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.