CUET 2025 Business Studies Question Paper with Answers & Solutions

Correct answer: A

A Rule is a specific statement that tells what is to be done or not to be done; it does not allow for any flexibility or discretion. Policies are general guidelines, procedures are steps, strategy is a comprehensive plan.

Correct answer: B

This is the NCERT definition of Business Environment - sum total of external forces, institutions and individuals outside the firm's control that affect performance.

Correct answer: A

From the business point of view, consumer protection matters due to social responsibility, the fact that business uses society's resources, long-term interest of business, and moral justification. Government intervention is a point favouring it but is not a 'business point of view' reason; thus (A), (C), (D).

Correct answer: A

Delegation of authority allows a manager to entrust part of his work to subordinates, reducing his workload while sharing authority and responsibility.

Correct answer: C

Staffing is a continuous function because new positions are created and existing employees leave; recruitment, selection and training go on continuously.

Correct answer: A

Economic dimension includes interest rates, inflation, income, infrastructure such as transport and communication facilities. Option B is social, C is legal, D is technological.

Correct answer: D

Controlling improves future planning by feeding back information from past performance; planning and controlling are interdependent.

Correct answer: A

FPO (Fruit Products Order) mark is mandatory for processed fruit and food products such as pickles, jams, and squashes.

Correct answer: C

Controlling completes the management cycle and feeds back into planning, making it a forward-looking function that brings the cycle back to planning.

Correct answer: D

Direct payments include wages, salaries, bonus, incentives, commission. Indirect payments include benefits like employer-paid insurance.

Correct answer: A

Effectiveness means completing the right task and achieving the goal (end result), whereas efficiency relates to using minimum resources.

Correct answer: C

Adapting to changing trends/environment shows that management is a dynamic function that adjusts to a constantly changing environment.

Correct answer: C

Standardisation and simplification of work is a principle/technique of F.W. Taylor's scientific management.

Correct answer: B

Decentralisation is a philosophy involving selective dispersal of authority, based on the belief that people are competent, capable and resourceful (NCERT wording).

Correct answer: C

Internship training is a joint programme by educational institutions and business firms providing trainees real work environment/practical experience.

Correct answer: B

Staffing includes recruitment, selection, training, development. Authority is an aspect of organising/delegation, not staffing.

Correct answer: A

Elements of directing are supervision, motivation, leadership and communication. Coordination is the essence of management, not an element of directing.

Correct answer: C

Motivation stimulates and energises people to perform better and helps change negative attitudes into positive ones.

Correct answer: D

Controlling judges the accuracy of standards by helping verify whether the standards set are accurate and objective.

Correct answer: B

A consumer is one who buys goods for consideration; a person who obtains goods without consideration (free) is not a consumer and cannot file a complaint. Legal heirs, the Central Govt and consumers can complain.

Correct answer: B

Entrepreneurs are risk-takers, not risk-averse. They are innovative, leaders with desire to succeed.

Correct answer: D

Education, family background and government support foster entrepreneurship. The future is always uncertain; 'future certainty' is not a factor (entrepreneurs deal with uncertainty).

Correct answer: A

Planning involves setting objectives and developing courses of action, providing a rational approach to achieving predetermined goals.

Correct answer: D

Coordination synchronises the efforts of various units, ensuring unity of action with minimum conflict.

Correct answer: B

One significance of principles of management is that they provide managers with useful insights into reality and influence managerial practices/behaviour (NCERT wording).

Correct answer: B

Limitations of internal recruitment: reduced scope for fresh talent (A) and employees becoming complacent with time-bound promotions, not taking challenging tasks (C). (B) and (D) are merits.

Correct answer: C

Features of a profession include well-defined body of knowledge, restricted entry, professional association, ethical code of conduct and service motive. All four listed are features.

Correct answer: B

Planning involves setting objectives (A) and deciding plans, actions and strategies (B). Allocating resources is organising; motivating is directing.

Correct answer: D

Importance of controlling: judging accuracy of standards, making efficient use of resources, improving employee motivation, ensuring order and discipline, facilitating coordination in action. Ensuring creativity is not a reason.

Correct answer: A

Equity = kindliness and justice (II); Unity of direction = one head one plan (III); Order = everyone in appointed place (IV); Discipline = obedience to rules (I).

Correct answer: A

Strategy = comprehensive plan (IV); Method = exact manner of doing a particular activity (III); Programme = detailed statements about a project (II); Procedure = prescribed way / sequence of steps (I).

Correct answer: A

Economic = interest rates (II); Social = festival demand (IV); Legal = mandatory KYC compliance (I); Political = government maintaining stability and peace (III).

Correct answer: A

Development of personnel = stimulating creativity (II); Adaptation to change = survive and grow despite changes (I); Expansion and growth = adding more positions/departments (IV); Effective administration = clear job description avoiding confusion (III).

Correct answer: A

Supervision = direct and immediate guidance/control (III); Motivation = encouraging subordinates with zeal (II); Leadership = guiding and influencing in desired direction (IV); Communication = exchange of ideas, facts, feelings (I).

Correct answer: B

Planning sequence: develop premises/assumptions (A), evaluate/weigh pros and cons of alternatives (C), select the best alternative (B), then follow-up/monitor (D).

Correct answer: C

Estimating manpower/determining number required (D), recruitment-search and stimulate applicants (A), selection-issue offer letter (B), then orientation/induction-presentation about company (C).

Correct answer: A

Motivation process: Unsatisfied need (A) creates Drives/tension (C), leading to Search behaviour (B), resulting in satisfaction and Reduction of tension (D).

Correct answer: A

Controlling: setting standards (B), measuring and comparing performance (C), analysing/investigating causes of deviation (D), taking corrective action (A).

Correct answer: C

Organising: identify and divide work (B), departmentalisation-group similar activities (A), assign/allocate duties to employees (D), establish reporting relationships/hierarchy (C). Sequence B, A, D, C.

Correct answer: A

Management has features of both science (systematic body of knowledge) and art (personalised application of skill); it is an inexact/social science and not a fully recognised profession.

Correct answer: C

The 4 Ps of marketing mix are Product, Price, Place and Promotion. 'Placement' is not the correct term; the component is 'Place'.

Correct answer: B

Labelling describes the product and provides information such as contents, organic/fair-trade attributes, ensuring clarity for customers (per passage and NCERT functions of labelling).

Correct answer: B

The passage states its branding strategy emphasizes sustainability and local community support.

Correct answer: D

Promotion includes advertising, sales promotion, personal selling and publicity, e.g. social media marketing and influencer collaborations.

Correct answer: B

The passage states the café uses recyclable and aesthetically designed coffee bags.

Correct answer: B

The primary aim of financial management is to maximise shareholders' wealth (wealth maximisation).

Correct answer: A

Capital budgeting (investment decision) evaluates the viability of long-term investment projects using tools like NPV and IRR.

Correct answer: B

Financial planning essentially means preparing a financial blueprint of an organisation's future operations.

Correct answer: D

The passage states efficient working capital management is achieved by optimizing cash flow, managing inventory and favourable credit terms.

Correct answer: A

Pricing strategy is a marketing decision, not a financial management decision. Capital structure, financial leverage and dividend decisions are part of financial management.