Are you a student of HS 2nd Year under ASSEB (Assam State School Education Board)? Then you must be looking for the ASSEB/AHSEC Class 12 Business Studies Solved Question Paper 2025 to understand the latest pattern and question types. In this post, we bring you the complete and authentic Business Studies Solved Question Paper 2025 (Code: 35T BUST (EN)) for your reference and exam preparation..
Class: HS 2nd Year (Class 12)
Board: AHSEC / ASSEB (Assam)
Subject: Business Studies
Year: 2025
Code: 35T BUST (EN)
Full Marks: 80
Pass Marks: 24
Time: 3 Hours
Note: The figures in the margin indicate full marks for the questions.
AHSEC Class 12 Business Studies Solved Question Paper 2025 - Pattern Overviews
📝 Section-wise Detailed Solution
Q.1 – Answer any six questions: (1×6 = 6)
a). Which function of management is considered as the base of all other functions?
Answer: Planning.
Explanation: The planning function of management is considered the base for all other functions. It lays the groundwork by setting objectives and strategies, which then guide the other functions like organizing, staffing, directing, and controlling.
b). Name the book authored by Henry Fayol on management.
Answer: General and Industrial Management.
3). In which year was the Indian economy opened up?
Answer: 1991.
c). Mention one responsibility of a consumer under the Consumer Protection Act.
Answer: A consumer should check the quality and safety of products before buying.
d). Give an example of Speciality products.
Answer: Luxury watches.
e). What type of instruments are traded in the money market?
Answer: Short-term financial instruments like Treasury Bills, Call money, Commercial Papers, Certificates of deposits, Bills of exchange.
f). What is the other name of a long-term investment decision?
Answer: Capital budgeting decision.
g). Grapevine is associated with which form of communication?
Answer: Informal communication.
Q.2 – Answer any four questions: (2×4 = 8)
a). Mention any two features of planning
Answer:
Planning is goal-oriented – it focuses on achieving objectives.
Planning is the primary function of management – it comes before all other functions.
b). Write three differences between formal and informal organisation
Answer:
c). Write two qualities of a leader
Answer:
Good communication skills – a leader should clearly express ideas.
Confidence – a leader should believe in their decisions and actions.
d). Mention two importance of control
Answer:
Control helps in achieving goals by checking performance.
It identifies mistakes and helps in taking corrective actions.
e). State two importance of supervision
Answer:
Supervision guides employees and improves their work performance.
It builds better relations between managers and workers.
f). Explain two factors affecting the requirement of working capital
Answer:
Nature of business – trading firms need more working capital than service firms.
Production cycle – longer cycles need more working capital.
Q.3 – Answer any four questions: (3×4 = 12)
1). Write any three factors affecting dividend decision
Answer:
Earnings of the company – Higher profits allow more dividend to be paid.
Cash flow position – A strong cash position helps in paying regular dividends.
Growth opportunities – Companies needing funds for future expansion may pay less dividend.
2). Explain any three factors affecting pricing of a product
Answer:
Cost of the product – Price is usually set by adding a margin to the cost.
Competition in the market – If there is tough competition, companies may keep prices low.
Demand of the product – High demand allows companies to charge a higher price.
3). Mr. Hazarika has retired as the Managing Director of a manufacturing company. At what level of management was he working? Write two basic functions at that level.
Answer: Mr. Hazarika was working at the top level of management.
Two basic functions at top level:
Setting company goals and overall plans.
Taking major decisions and guiding middle management.
4). Explain any three principles of scientific management
Answer:
Science, not rule of thumb – Work should be done using scientific methods.
Harmony, not discord – Good relations should be maintained between workers and managers.
Development of each worker – Proper training should be given to improve skills.
5). Write three limitations of planning
Answer:
Time-consuming – Planning takes time and delays action.
Costly process – It involves a lot of money, especially for large companies.
Does not guarantee success – Even with good planning, things may fail due to external factors.
6). Explain any three rights ensured to consumers in India
Answer:
Right to safety – Consumers should be protected from unsafe goods.
Right to information – Consumers must get full details about the product.
Right to choose – Consumers have the freedom to select from different products.
Q.3 – Answer any four questions: (3×4 = 12)
a). Write any three factors affecting dividend decision
Answer: Dividend decision refers to how much of the company’s profit is to be distributed among shareholders and how much to be retained. The following factors affect this decision:
Earnings of the Company: A company with higher and stable earnings is more likely to pay a higher dividend. If profits are low or irregular, the dividend may be reduced or skipped.
Cash Flow Position: Even if profits are high, dividends can only be paid when the company has enough cash. Thus, strong liquidity is necessary for declaring dividends.
Growth Opportunities: Companies with future expansion plans may retain more profit for investment purposes and pay a lower dividend to support growth.
b). Explain any three factors affecting pricing of a product
Answer: Pricing decisions are crucial for a company’s survival and profitability. These decisions are influenced by several internal and external factors, such as:
Cost of the Product: The total cost (fixed and variable) incurred in making a product sets the lower limit of price. A business must at least cover its cost to avoid losses.
Competition in the Market: If competitors offer similar products at lower prices, the company may need to reduce its price to stay competitive. In monopoly situations, the firm can charge higher prices.
Demand of the Product: If the demand for the product is high, the company can charge a higher price. If the demand is low, it may need to reduce the price to attract customers.
c). Mr. Hazarika has retired as the Managing Director of a manufacturing company. At what level of management was he working? Write two basic functions at that level.
Answer: Mr. Hazarika was working at the Top Level of Management, which includes positions like Chairman, CEO, Managing Director, etc. This level is responsible for overall organizational direction and long-term success.
Two basic functions at this level are:
Setting Goals and Strategic Planning: Top management defines the vision, mission, and long-term objectives of the company. They make policies and strategies for the entire organization.
Decision Making and Coordination: They take major decisions related to business growth, investments, and expansion. They also coordinate with middle management to ensure effective implementation of plans.
d). Explain any three principles of scientific management
Answer: Scientific management was developed by Frederick Winslow Taylor, aimed at improving worker efficiency and productivity through scientific methods. Three main principles are:
Science, Not Rule of Thumb: Work should be done based on scientific analysis rather than traditional methods. This improves efficiency and reduces wastage.
Harmony, Not Discord: There should be a cooperative relationship between managers and workers. Conflicts should be avoided, and teamwork should be promoted.
Development of Each Worker to Their Greatest Efficiency: Workers should be selected scientifically and trained properly to perform at their best, which increases overall productivity.
e). Write three limitations of planning
Answer: Although planning is essential for achieving goals, it has certain limitations:
Time-Consuming Process: Planning takes a lot of time for research, data analysis, and decision-making. In urgent situations, it may delay action.
Costly Process: In large organizations, planning involves hiring experts, using tools, and conducting studies, which can be expensive.
Uncertainty of Future: No matter how perfect a plan is, future events like changes in government policy, market trends, or natural disasters can affect its success.
f). Explain any three rights ensured to consumers in India
Answer: The Consumer Protection Act, 2019 ensures several rights to safeguard consumers from unfair trade practices. Three important rights are:
Right to Safety: Consumers have the right to be protected against goods and services that are hazardous to life and health, such as faulty electrical appliances or expired medicines.
Right to Information: Consumers must be provided with all the necessary information related to the product—like ingredients, price, expiry date, usage, and manufacturing details—to make informed decisions.
Right to Choose: Consumers should have access to a variety of goods and services at competitive prices, allowing them to make their own choice freely without pressure.
Q.4 – Answer any six questions: (5×6 = 30)
a). Discuss briefly any five important functions of marketing
Answer:
Marketing refers to the activities involved in promoting and selling goods and services. Its important functions include:
Product Planning and Development: It involves designing the right product according to consumer needs and market demand.
Packaging and Labelling: Attractive packaging protects the product and labelling provides necessary information like ingredients, usage, expiry, etc.
Branding: It helps in creating a unique identity for the product through names, symbols, or slogans, which helps in building customer loyalty.
Promotion: This includes advertising, personal selling, and sales promotion to create awareness and encourage customers to buy the product.
Physical Distribution: It involves transportation, warehousing, and logistics to ensure the product reaches the consumer at the right time and place.
b). Explain the various steps involved in a controlling process
Answer: Controlling is the process of ensuring that actual performance matches the planned performance. The steps involved are:
Setting Performance Standards: Standards are set in measurable terms (like quantity, quality, cost, or time) to compare performance later.
Measurement of Actual Performance: The actual performance is measured using various tools like reports, audits, and observation.
Comparing Actual Performance with Standards: The measured performance is compared with the set standards to identify any deviations.
Analyzing Deviations: The causes of deviations are analyzed to identify whether they are significant and if corrective action is needed.
Taking Corrective Action: If deviations are beyond acceptable limits, necessary corrective steps are taken to bring performance back on track.
c). Explain briefly the various money market instruments
Answer: Money market instruments are short-term debt instruments used by financial institutions and governments for borrowing and lending money. Major instruments include:
Treasury Bills (T-Bills): Issued by the Government of India to meet short-term financial needs. These are safe and carry no risk.
Commercial Paper (CP): Unsecured short-term debt issued by large companies to meet working capital needs. It is usually issued at a discount.
Call Money: Very short-term borrowing between banks for one to fourteen days. It helps maintain liquidity.
Certificate of Deposit (CD): Issued by commercial banks to individuals or institutions for a fixed period and interest rate.
Commercial Bills (Trade Bills): Bills drawn by one business firm on another for credit sales. These can be discounted with banks for cash.
d). Explain how coordination is an essence of management
Answer: Coordination is essential in management because it integrates the efforts of different departments and individuals to achieve common goals. Here's how it acts as the essence of management:
Aligns Individual and Organizational Goals: It brings unity of action by harmonizing personal goals with organizational objectives.
Ensures Smooth Working of Departments: Departments like production, sales, and finance often work independently. Coordination ensures they work in sync.
Avoids Duplication of Efforts: Through coordination, overlapping of work is avoided and resources are used efficiently.
Improves Efficiency and Productivity: Coordinated efforts reduce wastage of time and energy, leading to better performance.
Required at All Levels of Management: From top to bottom, coordination is needed at every level and in every function (planning, organizing, directing, controlling).
e). Discuss the key components of the business environment Answer: The business environment refers to external forces that influence a company’s operations and decisions. Key components include:
Economic Environment: Factors like inflation, interest rates, income levels, and economic policies affect business profitability.
Social Environment: Includes traditions, values, customs, demographics, and lifestyle changes which influence product demand.
Political and Legal Environment: The stability of the government, business policies, and laws like labor laws, consumer protection act, etc., affect business operations.
Technological Environment: Rapid changes in technology force businesses to innovate and adapt to remain competitive.
Environmental or Ecological Factors: Businesses must consider sustainability, pollution control, and environmental protection norms while operating.
f). Discuss five principles of Management evolved by Henry Fayol
Answer: Henri Fayol, a French management thinker, introduced 14 principles of management. Five important ones are:
Division of Work: Specialization increases productivity. Work should be divided into small tasks and assigned to specialists.
Authority and Responsibility: Managers must have the right to give orders, but with responsibility to complete the task properly.
Discipline: Employees must follow rules and show respect to authority. Discipline is key to success.
Unity of Command: Each employee should receive orders from only one superior to avoid confusion and conflict.
Scalar Chain: There should be a clear chain of command from the top to the bottom of the organization for smooth communication.
g). Discuss briefly the importance of Delegation
Answer: Delegation means assigning responsibility and authority to subordinates to perform specific tasks. Its importance includes:
Efficient Management: Managers can focus on higher-level tasks while routine work is done by subordinates.
Employee Development: It helps subordinates develop skills, build confidence, and take initiative.
Quick Decision-Making: Authority given to lower levels enables faster decisions and responses.
Better Coordination: Tasks and authority are clearly distributed, ensuring smooth workflow and clarity.
Motivation and Morale: When employees are trusted with responsibility, they feel motivated and valued, improving overall performance.
h). Discuss the elements of directing
Answer: Directing is the process of guiding, supervising, and motivating employees to achieve organizational goals. The main elements are:
Supervision: It involves overseeing employees at work to ensure they are performing tasks correctly.
Motivation: It refers to encouraging employees to give their best through rewards, recognition, or incentives.
Leadership: Good leadership influences team members positively and builds trust and teamwork.
Communication: Clear and timely communication ensures smooth sharing of ideas, instructions, and feedback within the organization.
These elements together help in converting plans into action and achieving organizational success.
Q.5 – Answer any three questions: (8×3 = 24)
a. Define financial management. What are the objectives of financial management? (2+6 = 8)
Answer: Definition of Financial Management (2 Marks): Financial management is the process of planning, organizing, directing, and controlling the financial activities of an enterprise. It includes tasks like procurement of funds, proper allocation, and effective utilization to achieve the financial goals of the organization. It aims to maintain a balance between profitability, liquidity, and risk.
Objectives of Financial Management (6 Marks): The main objective of financial management is to maximize the wealth of shareholders. However, it also focuses on several specific goals:
Profit Maximization: Ensuring the business earns maximum profit through efficient use of resources.
Wealth Maximization: Enhancing the market value of shares, thereby increasing the wealth of shareholders in the long term.
Efficient Utilization of Funds: Ensuring that funds are allocated wisely to avoid wastage and ensure productivity.
Ensuring Liquidity: Maintaining adequate cash flow to meet day-to-day expenses and obligations on time.
Risk Management: Identifying and minimizing financial risks such as credit risk, market risk, and operational risk.
Financial Discipline and Control: Promoting financial accountability and control to ensure stability and sustainable growth.
A sound financial management system ensures business survival, growth, and long-term success.
b. What is the marketing mix? Explain four leading elements of marketing mix. (2+6 = 8)
Answer: Definition of Marketing Mix (2 Marks): Marketing mix refers to the combination of several controllable marketing tools that a company uses to achieve its marketing objectives in the target market. It is often described as "4Ps of Marketing" – Product, Price, Place, and Promotion.
Four Leading Elements of Marketing Mix (6 Marks):
Product: This refers to the goods or services offered to satisfy consumer needs. It includes decisions regarding product design, features, quality, branding, and packaging. A well-designed product is the foundation of any successful marketing plan.
Price: Price is the amount of money customers pay for the product. Pricing decisions affect demand, profitability, and competitiveness. Factors such as cost, competition, customer value perception, and market conditions are considered while fixing the price.
Place (Distribution): Place refers to how the product reaches the customer. It involves selecting the right distribution channels (wholesalers, retailers, online platforms), transportation, inventory management, and logistics to ensure availability at the right place and time.
Promotion: Promotion includes all the activities used to communicate with customers and encourage them to buy the product. This includes advertising, sales promotion, public relations, and personal selling. Effective promotion increases product awareness and builds brand loyalty.
The marketing mix ensures that the right product reaches the right customer at the right time and place, in the most effective manner.
c. What is communication? Explain the different barriers to effective communication. (2+6 = 8)
Answer: Definition of Communication (2 Marks): Communication is the process of exchanging information, ideas, thoughts, and feelings between individuals or groups to reach a common understanding. It plays a vital role in management as it ensures smooth coordination of activities.
Barriers to Effective Communication (6 Marks): Barriers to communication are obstacles that prevent the correct transmission and understanding of a message. The major barriers include:
Semantic Barriers: These arise from the use of incorrect or complex words, jargon, or language differences. For example, technical terms may confuse a non-technical person.
Psychological Barriers: Emotions like fear, anger, or nervousness can affect how a message is sent or received. For instance, a stressed employee may not understand the instructions properly.
Organizational Barriers:
Poor organizational structure, long communication channels, and rigid rules can hinder free flow of information.Personal Barriers: These are related to the attitude or behavior of the sender or receiver, such as lack of attention, poor listening, or low confidence.
Physical Barriers: Environmental factors like noise, poor connectivity, or bad handwriting can interfere with message delivery.
Cultural Barriers: Differences in cultural backgrounds can lead to misunderstandings, especially in multinational organizations.
Overcoming these barriers ensures clarity, understanding, and better coordination in the workplace.
d. What is staffing? What are the various steps involved in the staffing process? (2+6 = 8)
Answer: Definition of Staffing (2 Marks): Staffing is the managerial function of recruiting, selecting, training, and developing the right people for the right job at the right time. It ensures that the organization has a competent workforce.
Steps Involved in the Staffing Process (6 Marks):
Manpower Planning (Human Resource Planning): Estimating the number and type of employees needed in the future based on organizational goals.
Recruitment: Attracting a pool of suitable candidates through job advertisements, employment agencies, or campus drives.
Selection: Choosing the most suitable candidate from the pool through tests, interviews, and background checks.
Placement and Orientation: Assigning the selected employee to the right job and introducing them to company policies, culture, and colleagues.
Training and Development: Providing the required skills and knowledge to improve performance and prepare employees for higher roles.
Performance Appraisal and Promotion: Evaluating employee performance and offering promotions, incentives, or transfers based on their achievements.
Effective staffing ensures optimum use of human resources and smooth functioning of the organization.
e. Discuss the significance of motivation in business. (8 Marks)
Answer: Motivation is the process of encouraging employees to work with enthusiasm, commitment, and creativity. It helps individuals to put their best efforts toward achieving organizational goals. The significance of motivation in business includes:
Improves Employee Performance: Motivated employees work with more energy, efficiency, and focus, leading to better productivity.
Reduces Employee Turnover:
When employees feel valued and satisfied, they are less likely to leave the organization, reducing hiring and training costs.Promotes Teamwork: Motivation encourages cooperation and collaboration among team members, leading to a healthy work environment.
Encourages Innovation and Creativity: Motivated employees are more likely to take initiatives, share ideas, and think innovatively.
Better Use of Resources:b A motivated workforce uses time, materials, and equipment more efficiently, avoiding wastage.
Achieves Organizational Goals Faster: Motivation aligns employee efforts with company objectives, leading to timely and effective achievement of targets.
Improves Job Satisfaction: Motivated employees feel happier and more fulfilled, which reflects positively in their work.
Builds a Positive Work Culture: Continuous motivation fosters loyalty, discipline, and mutual respect within the workplace.
In conclusion, motivation is the backbone of organizational success. It transforms human resources into valuable assets.
▢▢▢▢▢▢
📌 Highlights of the Paper:
This Solved question paper follows the latest ASSEB/AHSEC 2025 pattern.
Carefully designed to evaluate understanding, application, and analysis.
Focus on key concepts like Planning, Marketing, Delegation, Communication, Leadership, Financial Management, and Consumer Rights.
🔍 Why Refer to the AHSEC Class 12 Business Studies Question Paper 2025?
Referring to the original HS 2nd Year Business Studies Solved Question Paper 2025 helps you:
Understand the question trend.
Practice answering within word limits.
Prioritize important topics based on marks distribution.
Strategize your revision accordingly.
📢 Final Words
We hope this detailed post on AHSEC Class 12 Business Studies Solved Question Paper 2025 helps you prepare effectively for your upcoming exams. For more such valuable resources, updates, and free study materials, keep visiting The Treasure Notes.
📌 Don’t forget to bookmark this post and share it with your friends!
💬 Post a Comment
If you found this helpful or have any suggestions for improvement, please comment below. Your feedback is valuable in making this platform better for all learners.
