Class 12 Business Studies Sample Paper 2025

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Class 12 Business Studies Sample Paper 2025

To ensure thorough preparation for your exams, practicing with the Class 12 Business Studies Sample Paper 2025https://mycbseguide.com/cbse-sample-papers-class-12.html is essential. The Class 12 Business Studies Sample Paper 2025 provides a comprehensive range of questions, including case studies, MCQs, and analytical questions that align with the updated exam pattern. By solving the Class 12 Business Studies Sample Paper 2025, students can familiarize themselves with the types of questions they are likely to encounter. The Class 12 Business Studies Sample Paper 2025 on the myCBSEguide app is designed to improve your time management and test-taking strategies, helping you score better in your exams. Don’t miss out on practicing with the Class 12 Business Studies Sample Paper 2025 to build confidence and ensure success in the upcoming CBSE exams.

Students can download the latest Class 12 Business Studies Sample Paper 2025 from the myCBSEguide app and our student dashboard. Class 12 Business Studies is a very dynamic subject. If you go through the latest model question paper issued by CBSE for class 12 Business Studies, you will find that the pattern has really changed. As compared to the previous year’s question papers, the new Business Studies question paper is full of case studies and real-life examples.

What’s New in Class 12 BST Question Paper?

• CBSE Class 12 Business Studies Sample Paper 2025: Key Changes in Exam PatternCBSE has introduced significant changes to the Class 12 Business Studies exam pattern for 2025, with a greater emphasis on competency-based questions. This year, there is a notable shift towards real-life application of business concepts, allowing students to better understand how theory connects with practical situations. Class 12 Business Studies Sample Paper 2025 on myCBSEguide helps students practice important questions, making exam preparation simpler and more efficient.

  The first 20 questions in the exam are MCQs, but with a twist. Instead of straightforward questions, you’ll encounter a variety of question types, including matching, arranging, identifying, and analyzing questions. These changes test not just your knowledge but also your analytical skills and ability to apply concepts to real-world scenarios.

  For the 3-marker questions, most will be standard, but the 4-mark and 6-mark questions will primarily feature case studies. These case studies will focus on the real-life implications of the business concepts you’ve learned, testing your understanding of how business theories apply in actual business environments.

  Prepare for these new changes in the Business Studies exam by practicing with updated sample papers and previous year question papers. myCBSEguide offers free access to these resources, including mock tests, study material, and revision notes to help you succeed.

How to download Business Studies Sample Papers?

Here, we are providing the only paper with a solution for Class 12 Business Studies Sample Paper 2025.

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Class 12 – Business Studies
Sample paper – 01 (2024-25)

Maximum Marks: 80
Time Allowed: : 3 hours

General Instructions:

1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.

1. Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage.
   Identify the objectives of management highlighted above.
   a) Governmental objective
   b) Organisational Objectives
   c) Personnel Objectives
   d) Social Objectives
2. Which of the following is not a function of Securities and Exchange Board of India (SEBI)?
   a) Registration of brokers and sub-brokers and other players in the market
   b) Training of intermediaries of the securities market
   c) Controlling insider trading
   d) Pricing of securities
3. What resources are specially kept in view in planning?
   a) Unlimited resource
   b) Limited resource
   c) Abundant resource
   d) Both Limited and unlimited resource
4. During the Covid-19 pandemic, the restaurant industry faced many challenges. The slowdown led to huge decrease in demand. From April 2022, the effect of Covid started reducing. The economy started picking up and a boom was noticed in the restaurant industry. As a result, larger amount of working capital was required with increased production and sales.
   The factor affecting the working capital requirement discussed above is:
   a) Production cycle
   b) Business cycle
   c) Seasonal factor
   d) Operating efficiency
5. Standards means:
   a) Output
   b) Target
   c) Estimates
   d) Results
6. Identify the principle of management followed in the following pictorial representation.
   
   a) Scalar Chain
   b) Order
   c) Unity
   d) Equity
7. Secondary market deals with the ________ of existing securities.
   a) Purchase-sale
   b) Stock
   c) Purchase
   d) Sale
8. Mega Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions-Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.
   a) Estimating manpower requirements
   b) Workload Analysis
   c) All of these
   d) Workforce Analysis
9. Which amount of the following statements is true?
   1. Higher competition requires larger stocks to meet urgent orders from customers which results into requirement of more working capital.
   2. The companies having growth prospects require lesser amount of working capital.
   3. If the rate of inflation is high, an organisation is required to invest less in working capital.
   4. All of the above
   a) Option (iv)
   b) Option (i)
   c) Option (iii)
   d) Option (ii)

10. Assertion (A): Delegation has a greater scope than Decentralisation.
    Reason (R): Delegation is the routine function of managers.

    a) Both A and R are true and R is the correct explanation of A.
    b) Both A and R are true but R is not the correct explanation of A.
    c) A is true but R is false.
    d) A is false but R is true.
11. Rahul wants to buy shares of Rexter Ltd. which are being traded at the National Stock Exchange. He feels that the share prices will go up in the future. Which market should he approach for this purpose?
    a) Secondary market
    b) Money market
    c) Both (b) and (c)
    d) Primary market
12. Pawan Mehra is the Chief Executive Officer of Rajnish Private Ltd., a textile manufacturing company. His son, Keshav, after completing his MBA, wanted to join his father’s business. He was keen to expand the business. Pawan Mehra was very happy with Keshav’s entrepreneurial spirit. Under Pawan’s able guidance, Keshav prepared an estimate of sales for the next three years. Based on the sales estimate, he would get financial statements prepared keeping in mind the requirement of funds for fixed and working capital. Then, he would estimate the expected profits. This would help him in knowing how much of fund requirements would be met internally and how much needs to be raised from external sources. The concept of financial management discussed above is:
    a) Investment Decision
    b) Financial Leverage
    c) Financial Planning
    d) Financial Decision
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    Statement I: The Consumer Protection Act 2019 provides for five rights of consumers.
    Statement II: Right to be assured means that the consumer has the freedom to access variety of products at competitive prices.

13. a) Statement I is correct and Statement II is not correct.
    b) Statement II is correct and Statement I is not correct.
    c) Both the Statements I and II are not correct.
    d) Both the Statements I and II are correct.
14. There are a number of incidental costs, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan. Identify the limitation of planning highlighted above.
    a) Planning leads to rigidity
    b) Planning does not guarantee success
    c) Planning involves huge costs
    d) Planning may not work in a dynamic environment
15. The use of debt increases the financial risk of a business. The factor determining the choice of an appropriate capital structure of a company highlighted in the above statement is:
    a) Risk consideration
    b) Flexibility
    c) Debt Service Coverage Ratio
    d) Cost of debt
16. Statement I: Advertising is a paid form of communication.
    Statement II: Advertising is a personal method of promotion.
    a) Statement I is correct and Statement II is not correct.
    b) Statement II is correct and Statement I is not correct.
    c) Both the Statements I and II are correct.
    d) Both the Statements I and II are not correct.
17. Pawan decided to start a chocolates manufacturing business. He set the target of earning 10% profit on sales in the first year. As a good businessman, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day-by-day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives. List the first two steps, which have been followed by Pawan that are related to the process of one of the functions of management.
    1. Setting Objectives
    2. Developing Premises
    3. Identifying alternative courses of action
    4. Evaluating alternative courses
    a) c and d
    b) b and c
    c) a and b
    d) a and d
18. Match the columns on the basis of nature of management.
    

    Column I	Column II
    (a) Principles are based on observation and experimentation.	(i) Management as an art.
    (b) Principles are based on practice and creativity.	(ii) Management as a profession.
    	(iii) Management as a science.

    Identify the correct option.

    a) (a) – (iii), (b) – (i)
    b) (a) – (ii), (b) – (i)
    c) (a) – (i), (b) – (iii)
    d) (a) – (ii), (b) – (iii)
19. When ROI is greater than cost of debt, the higher use of debt increases the EPS. This is a situation of ________.
    a) Trading on Debt
    b) Favourable financial leverage
    c) Unfavourable financial leverage
    d) Trading on Equity
20. Which function of management not only helps in keeping a track of the progress of activities but also ensures that activities conform to the standards set in advance?
    a) Organising
    b) Directing
    c) Planning
    d) Controlling
21. How does management help workers to achieve its personal objectives? State.
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22. Explain any two features of Directing function of management.

    OR

    Explain briefly any three functions performed by a supervisor.

23. Yogesh, a businessman, is engaged in the purchase and sale of ice-creams. Identify his working capital requirements by giving reasons to support your answer. Now, he is keen to start his own ice-cream factory. Explain any two factors that will affect his fixed capital requirements.
24. State any three responsibilities that a consumer should keep in mind while purchasing using and consuming goods and services.

    OR

    State any three points which highlight the importance of consumer protection from consumer’s point of view.

25. How is planning a pervasive function of management? Explain.

    OR

    Give the meaning of ‘objectives’ and ‘procedure’ as types of plans.

26. State any three points of importance of Controlling function of management.

    OR

    Vinber Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production upto 10 units would be acceptable. At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found that fluctuation in production was due to irregular supply of electricity.

    1. The above para discusses some of the steps in the process of one of the functions of management. Explain these steps.
    2. Also, state the step(s) that have not been discussed in the above para.
27. Scientific Management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way. Taylor developed various techniques for application of Scientific Management principles and was able to achieve a three-fold increase in productivity in Bethlehem Steel Company, where he worked. One of the techniques helps to determine the number of workers to be employed; frame suitable incentive schemes and determine labour costs. Another technique recognises those workers who are able to accomplish/exceed the fair day’s work and is based on the premise that efficiency is the result of the joint efforts of the managers and the workers.
    Quoting the lines from the above paragraph, identify and explain the two techniques of Scientific Management.
28. In an organisation all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone taking to each other and thus resulting in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out.
    1. Identify the type of communication discussed above.
    2. State any two negative aspects of the type of communication identified in part (a).
    3. What system of communication do you think the manager should adopt to improve communication?
29. State any four points of difference between Primary Market and Secondary Market.
30. Rajneesh purchased a 500 ml bottle of fruit juice for ₹ 60 in Ahmedabad from a local store. While consuming it, he found an insect floating in it. He sent a legal notice to the company immediately and decided to approach a Consumer Dispute Redressal Agency for a relief of ₹ 2 lakh.
    1. Which Consumer Dispute Redressal Agency did Rajneesh approach, out of the three-tier machinery set up under Consumer Protection Act, 2019 for redressal?
    2. If Rajneesh is not satisfied by the order of the above Agency, where can he appeal against such order and within how many days?
    3. State any two reliefs that can be granted to Rajneesh in the above case.
31. Explain the various steps in the Process of Selection.

    OR

    Explain the steps in the selection process of staffing function of management after Reference and Background checks.

32. With rapid advancements in the field of replacing manual work with machines, a Robot named Sujan has been invented and developed and is likely to get the citizenship of the country of its origin.
    It has led to a stage where machines are being used in place of human beings. Sujan is doing all types of work whether routine or hazardous and even answering the queries of people. However, this issue has to be carefully looked into keeping in mind the consumer attitude towards product innovations, problem of unemployment and its impact on the quality of life. Through the orders and decisions of various commissions and agencies at Centre, State or Local level the Indian Government is playing a very significant role in balancing the use of human and machine power. Various dimensions of business environment are being discussed in the above para.
    By quoting the lines from the above identify and explain any three dimensions.

    OR

    The internet has taken the whole world by surprise. The government has also been lenient in giving the online companies a chance to flourish in the changing business scenario. Interneters Online is an entrepreneurial initiative by a group of young engineers. The company has entered in the domain of providing products online. Many new firms have also entered after seeing them enter this mode of business and many of these firms are foreign in origin. The companies dealing in online business know that in today’s world customer has many options. The customer is no more dependent on a single company for the product he requires. This has empowered the customer who has more choices and the result is a fragmented market. The firms selling with monopoly in the market are the stories of the past. The products offered by the companies are going through different types of technological changes. The companies are trying to give variety of products which are technologically advanced. Interneters Online is a firm which is right now selling 200 products online. Recently it tried to increase the number of products to be sold by 15 but it realised that many of these products were not allowed by the government to be sold in their territory.
    Identify three impacts of government policy changes on Business and Industry highlighted in the above case. Also identify the dimension of business environment highlighted above.

33. Aman Chadha started ‘Bulls Eye’ a company for providing cybersecurity solutions to businesses. Its objective is to prevent, detect and respond to cyber-attacks and protect critical data. He was a hardworking software engineer and an expert in cybersecurity. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.
    He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.
    He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.
    1. Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.
    2. Also, state any four points of importance of the concept identified in (i) above.
34. Mediquip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.
    In the meeting, Sandeep, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally, to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same.
    Himanshu, another Zonal Head, added that since lot of money had been spent on the import of the machines, the company was short of funds to pay to the additional staff as suggested by Sandeep.
    Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.
    1. Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
    2. Also, explain briefly the other consideration to be taken care of in each factor identified in part (a).
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Class 12 – Business Studies
Sample paper – 01 (2024-25)

Solution

1. (b) Organisational Objectives
   Explanation: Organisational Objectives
2. (d) Pricing of securities
   Explanation: Pricing of securities
3. (b) Limited resource
   Explanation: Limited resources are specially kept in view of planning.
4. (b) Business cycle
   Explanation: Business cycle
5. (b) Target
   Explanation: Standards are the criteria against which actual performance would be measured. These standards serve as benchmarks or target towards which an organization strives to work.
6. (a) Scalar Chain
   Explanation: Scalar Chain
7. (a) Purchase-sale
   Explanation: Purchase-sale of securities are deal in secondary market
8. (b) Workload Analysis
   Explanation: Workload Analysis
9. (b) Option (i)
   Explanation: Higher level of competitiveness may necessitate larger stocks of finished goods to meet urgent orders from customers. This increases the working capital requirement. Competition may also force the firm to extend liberal credit terms.
10. (d) A is false but R is true.
    Explanation: Delegation is limited in scope. Decentralization is wider in scope than delegation.
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11. (a) Secondary market
    Explanation: Secondary market
12. (c) Financial Planning
    Explanation: Financial Planning
13. (b) Statement II is correct and Statement I is not correct.
    Explanation: Statement II is correct and Statement I is not correct.
14. (c) Planning involves huge costs
    Explanation: Planning involves huge costs
15. (a) Risk consideration
    Explanation: Risk consideration
16. (a) Statement I is correct and Statement II is not correct.
    Explanation: Statement I is correct and Statement II is not correct.
17. (c) a and b
    Explanation: a and b
18. (a) (a) – (iii), (b) – (i)
    Explanation: (a) – (iii), (b) – (i)
19. (b) Favourable financial leverage
    Explanation: Favourable financial leverage
20. (d) Controlling
    Explanation: Controlling
21. These objectives are related to satisfying the personal needs of the employees. Management must seek to satisfy the diverse needs of employees in the following manner.
    1. Financial needs: By giving competitive salary and perks so that he can feel secure and motivated towards work always.
    2. Social needs: By peer recognition or by giving them a status so that its colleague gave them respect.
    3. Higher level needs: By providing opportunities for personal growth and development so that he can reach the aim of their life what he wants to be.
22. Features of directing
    1. Directing initiates action: Directing is a key managerial function. A manager has to perform this function along with planning, organising, staffing and controlling while discharging his duties in the organisation. While other functions prepare a setting for action, directing initiates action in the organisation.
    2. Directing takes place at every level of management: Every manager, from top executive to supervisor performs the function of directing. The directing takes place wherever superior-subordinate relations exist.

    OR

    The three functions performed by a supervisor are as follows:

    1. Acts as a link between workers and management: Supervisor conveys management policies and ideas to the workers on one hand and workers’ problem to the management on the other. He plays a crucial role of avoiding misunderstanding and conflicts between management and workers.
       
    2. Ensures performance of work: He takes responsibility for task achievement according to the targets and motivates his workers effectively.
    3. Maintains group unity: Supervisor directly overlooks the workers, this is a key link in maintaining harmony and unity among workers by sorting out their internal differences.
    1. In an ordinary sense, working capital denotes the amount of funds needed for meeting day-to-day operations of a concern. This is related to short-term assets and short-term sources of financing. Hence it deals with both, assets and liabilities—in the sense of managing working capital it is the excess of current assets over current liabilities. The working capital requirements of Yogesh will be less as he is engaged in trading business.
    2. The two factors that will affect his fixed capital requirements when he will start his own ice-cream factory are described below:
       1. Level of collaboration: If Yogesh gets an opportunity to set up his factory in collaboration with another enterprise, his fixed capital requirements will reduce considerably else his fixed capital requirements will be more.
       2. Financial alternatives available: If Yogesh is able to get the place to start the factory and machinery on the lease, his fixed capital requirements will reduce considerably. Whereas if he decides to purchase them, his fixed capital requirements will be more.
23. While purchasing, using and consuming goods and services, consumers have following responsibilities:
    1. Be aware of different goods and services available.
    2. Buy only standardised goods.
    3. Learn about the various risks associated with products.

    OR

    Importance of consumer protection from consumer’s point of view is:

    1. Spreading Awareness among the Consumers: Due to widespread ignorance of consumers about their rights and reliefs available to them, they need to be made aware in this regard Consumer protection provides information to the ignorant consumers regarding their rights and reliefs available to them. With this, even the sellers who try to cheat the ignorant and illiterate consumers, become conscious and mend their ways.
    2. Unorganized consumers: Consumers need to be organized for safeguarding their interests. In developing countries like India, consumérs are not organized. In other words, there is a dearth of a National Level Consumer Organization. There are very few consumer organizations which are working to protect the interests of consumérs. Consumer protection encourages the establishment of more consumer organizations.
    3. Widespread exploitation of consumers: Consumers is exploited by unscrupulous, exploitative and unfair trade practices of sellers. They might be exploited by unfair trade practices like defective and unsafe products, adulteration, hoarding, black marketing, etc. Consumers need protection against such unfair trade practices.  Consumer protection has been a support system for all such consumers to protect their interests and provide them justice.
    • Planning is pervasive because it is the function of every manager to plan.
    • Planning is not the function of top management or any particular department only. It is required at all the levels of management and in all departments of an organisation. However, the scope and nature of planning are different at different levels and in different departments. Plans made at different levels are like:
    1. The top management lays down the plans for the organisation as a whole.
    2. Middle-level management has to make plans for each department.
    3. Plans regarding the daily operations of an organisation are laid down by operational management.
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24. OR

    Objectives

    • These are defined as end results which the management seeks to achieve by its operations.
    • They are set by the top management of the organisation.
    • There must be a time limit for the achievement of objectives.
    • These are expressed in quantifiable terms.
    • For e.g. increasing sales by 10%

    Procedure

    • It is a stipulated sequence of a course of action for handling activities.
    • They are specified in chronological order.
    • Procedures are designed to execute policies and achieve objectives.
    • For example, the procedure may be for the purchase of raw material, selection of employees, redressal of grievances, etc.
25. Controlling assures that organization’s resources are utilized effectively and efficiently, controlling also assures that the activities of the organization are performed as per the plans. Importance of Controlling functions are:
    1. Accomplishing Organizational goals: Controlling function measures progress towards organisational goals.  The controlling function measures performance towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.
    2. Judging accuracy of standards: A good control system enables to set accurate standards. While performing the function of controlling, a management should have a good control system which enables management to verify whether the standards set are accurate and objective.
    3. Making efficient use of resources: A manager seeks to reduce the wastage of the resources used by exercising controlling functions. Controlling makes it possible to use human and physical resources efficiently. Under controlling, it is ensured that no employee can delays his work performance.

    OR

    1. The steps in the controlling process that are being followed are as follows:
       1. Setting Performance Standards: The first step in the process of controlling is concerned with setting performance standards. 
       2. Measurement of Actual Performance: Once the standards have been determined, the next step is to measure the actual performance. 
       3. Comparing Actual Performance with Standards: This step involves comparing the actual performance with standards laid down in order to find the deviations. 
       4. Analysing Deviations: Some deviations are possible in all the activities. 
    2. The step which was missing is: Taking Corrective Action: The last step in the process of controlling involves taking corrective action. 
26. Time Study:- One of the techniques helps to determine the number of workers to be employed; framesuitable incentive schemes and labour costs. It circumscribes the conventional time taken to complete a well-defined job.
    Differential Piece Wage System:- Another technique recognises those workers who are able toaccomplish/exceed the fair days work and is based on the premise that efficiency is the result of the joint effortsof the managers and the workers.
    1. Informal communication
    2. Information released from informal communication network is usually incomplete.
       Maintaining secrecy is not possible. No security.
    3. Formal communication system

27. Primary Market	Secondary Market
    There is sale of securities by new companies	There is trading of existing shares only.
    Securities are sold by the company to the investor directly (or through an intermediary).	Ownership of existing securities is exchanged between investors. The company is not involved at all.
    The flow of funds is from savers to investors, i.e. the primary market directly promotes capital formation.	Enhances encashability (liquidity) of shares, i.e. the secondary market indirectly promotes capital formation.
    Only buying of securities takes place in the primary market, securities cannot be sold there.	Both the buying and the selling of securities can take place on the stock exchange.

    1. Rajneesh approached the district commission because the value of the complaint was less than one crore rupees.
    2. If Rajneesh is dissatisfied with the ruling, he has 45 days to file an appeal with the state commission.
    3. Relief Measures:
       1. Price paid will be refunded.
       2. Compensation in a reasonable amount for any loss or injury suffered.
       3. Payment of punitive damages in appropriate circumstances.
28. Steps in the process of selection:
    1. Preliminary screening
    2. Selection tests and Employment Interview
    3. Reference and background checks
    4. Selection decision
    5. Medical examination

    OR

    The typical steps in the selection process of the staffing function after reference and background checks:
    Selection Decision:

    • All candidate information is reviewed, including qualifications, experience, interview feedback, reference checks, and background check results.
    • The hiring team/manager ranks candidates and determines the most suitable person for the role in the organisation.

    Job Offer:

    • Verbal offer: An initial phone call communicates the decision and outlines key terms (salary, benefits, start date). This is often followed up in writing to ensure the employee the conditions of working in the organisation.
    • Formal Offer Letter: A detailed written offer letter finalizes the terms and may include a deadline for the candidate to accept. it clarify the role of the employee in the organisation.
    • Negotiation: In some cases, candidates may negotiate aspects of the offer. The hiring team will need to determine if adjustments are acceptable. it reduces the employees turnover in the organisation. if they already made adjustments in the remuneration.

    Employment Contract:

    • Once terms are agreed upon, a formal employment contract is drafted and signed by both the employer and the new hire. This legally binding document outlines the rights and responsibilities of both parties.

    Onboarding:

    • Orientation: Introduction to the company, its policies, culture, and key personnel.
    • Training: Job-specific training begins, often combined with the elements mentioned previously in the broader staffing process discussion (like further development).
    • Integration: Connecting the new hire with their team, mentors, and resources to ensure a successful transition into their role.

    Important Considerations:

    • Timing: Steps after reference and background checks should move swiftly, as top candidates often have multiple choices.
    • Contingent Offers: Some background checks may complicate the process and lead to a conditional offer being extended.
    • Rejection Communication: Candidates not selected should be promptly and professionally notified once the final decision is made.
    1. Technological Environment: ‘With rapid advancements in the field of replacing manual work with machines, a robot named \Sujan has been invented and developed’. It consists of scientific improvements and innovations which provide new ways of producing goods, rendering services, new methods and techniques to operate a business.
    2. Social Environment: ‘However, this issue has to be carefully looked into keeping in mind the consumer attitude towards product innovations, problem of unemployment and its impact on the quality of life’. Social Environment consists of social forces like traditions, values, social trends, level of education, the standard of living etc. All these forces have a vast impact on business.
    3. Legal environment: ‘Through the orders and decisions of various commissions and agencies at Centre, State or local level the Indian Government is playing a very significant role in balancing the use of human and machine power.’ It includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state or local governments.

29. OR

    The three impacts of government policy changes on Business and Industry highlighted above are:

    1. Increasing Competition: Many new firms have also entered after seeing them enter this mode of business and many of these firms are foreign in origin.
    2. More demanding customers: This has empowered the customer who has more choices and the result is a fragmented market.
    3. Rapidly changing technological environment: The companies are trying to give variety of products which are technologically advanced.

    The dimension of business environment which is highlighted above is Legal environment. It realised that many of these products were not allowed by the government to be sold in their territory. It includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state or local governments.

    1. Delegation of authority is the concept used by Aman Chadha in the above case which helped him in focusing on objectives. The delegation of authority is the process of granting of authority to the subordinates to operate within prescribed limits.
    2. The four points of importance of delegation of authority are described below:
       1. Effective management: It helps the managers to function more efficiently as they get more time to concentrate on important matters. Freedom from doing routine work provides them with opportunities to excel in new areas.
       2. Employee development: By empowering the employees, they are given more opportunities to utilize their talent and this may help them to become better leaders and decision-makers in the future.
       3. Motivation of employees: Delegation also has psychological benefits as helps in building the self-esteem of an employee and improves his confidence and work performance. When a superior entrusts a subordinate with a task, it is not merely the sharing of work but involves trust in the superior’s part and commitment on the part of the subordinate. Thus, delegation may give rise to latent abilities in the subordinates.
       4. Facilitation of growth: With the increase in the competence of the employees, an organisation tends to gain in many ways. The growth and expansion of the firm become easy as the capable workforce is ready to take greater responsibilities.
    1. The factors influencing the choice of channels of distribution which were discussed in the meeting are listed below:
       1. Product related factors
       2. Market related factors
       3. Company related factors
    2. The other considerations to be taken care of in each of these factors is explained below:
       1. The market related factors:
          1. Geographical concentration of potential buyers: If the potential buyers for the firm’s product are geographically concentrated at a few specific places, it is advisable for the marketer to adopt direct channels of distribution. And if the market for the product is widely scattered, indirect channels of distribution will be more effective.
          2. Size of market: If the size of the target market is small, it is advisable that the marketer adopts methods of direct channels of distribution like online selling, mail order house, personal selling etc. wherein there are no intermediaries between the manufacturer and the consumers. However, if the marketer intends to target larger markets he should adopt indirect channels of distribution (one level two level or three level) by using intermediaries like wholesalers, retailers etc.
       2. Product related factors
          1. Nature of product: Considering the technical nature of the industrial products they require short channels i.e., direct channel or involving few middlemen. Moreover, they are made to order and expensive products purchased by selective buyers. Whereas the consumer products, being standardised, less expensive, less bulky, non-technical can be better distributed by long network of channels, involving many middlemen. Moreover they are purchased frequently.
          2. Type of product: If the product under consideration is perishable like fruits, vegetables, and dairy products short channels should be adopted in order to preserve their quality. Whereas non-perishable products like toiletry products (e.g., shampoo, toothbrush, deodorants etc.), groceries (cooking oil, pulses etc.), fabrics can be best marketed through longer channels so as to reach wide spread consumers.
          3. Unit value of the product: If the unit value of a product is low as in case of most convenience products, long channels are considered more appropriate whereas products of high value should be sold through shorter channels.
       3. Company related factors
          If a company desires to have direct and close control over production and selling activities, direct channels are preferred and vice-versa. Short channels may be used if the management of the firm desires to have greater control on the channel members, but if the management does not plan to exercise strict control over the middlemen indirect channels or large number of intermediaries may be opted for.
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