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Important Questions for Class 12 Business Studies Chapter 1

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Key Topics and Exam-Focused Questions from CBSE BST Chapter 1

Important Questions Class 12 Business Studies Chapter 1 introduces the core ideas of management, its characteristics, and its importance in business. This topic helps students prepare for exams by clarifying frequently asked questions, definitions, and practical applications used in Class 12 Board papers and for business understanding.


Key Management Concepts Explanation / Example
What is Management? It is the process of planning, organizing, directing, and controlling business activities to achieve organizational goals efficiently.
Features of Management Goal-oriented, pervasive, multidimensional, continuous, group activity, dynamic, intangible, links effectiveness with efficiency.
Management as a Profession Partial profession—lacks prescribed qualifications, legal code, and compulsory membership unlike law/medicine.
Coordination Integration of group efforts through unification, ensuring all activities work toward common objectives.
Levels of Management Top Level: Policy/strategy; Middle Level: Departmental; Lower Level: Supervisory/operational.

Important Questions Class 12 Business Studies Chapter 1

This section lists high-scoring and commonly repeated questions alongside concise answers. Practicing these improves performance in CBSE board and competitive exams and solidifies understanding for real-life scenarios.


  1. What is meant by management?
    Management is the art of getting things done through others by planning, organizing, directing, and controlling activities to achieve desired goals efficiently and effectively.

  2. State features that do not make management a profession.
    Management lacks a restricted entry criterion, has no compulsory professional association for managers, and does not follow a legal code of conduct (unlike formal professions).

  3. How does coordination integrate group efforts?
    Coordination unifies individual objectives, creating harmony among team activities so everyone works towards shared organizational goals.

  4. Which steps should each level of management take to improve falling sales in a company?
    • Top Level: Make strategic decisions such as modernizing the product and revising marketing policies.
    • Middle Level: Develop and monitor department plans, set new goals for sales and marketing.
    • Lower Level: Implement the plans, supervise workers, and ensure objectives are achieved efficiently.

  5. Name any two points to prove management is multidimensional.
    • Management of Work: Planning, managing business operations and tasks.
    • Management of People: Handling staff motivation, coordination, and teamwork.

Concept Highlights: Features and Functions of Management

Understanding the main features and roles of management helps students tackle theoretical, application, and case-based questions. These core concepts are highly relevant for exams and future managerial roles.


Features of Management

  • Goal Oriented: Focuses on achieving organizational aims efficiently.
  • Universal: Applicable to all organizations, regardless of type or size.
  • Multidimensional: Involves managing work, people, and operations.
  • Continuous Process: Involves ongoing planning, organizing, leading, and controlling.
  • Group Activity: Achieves goals with/through people.
  • Dynamic Function: Adapts to changes in environment.
  • Intangible Force: Felt through results, not physically seen.

Management as a Profession

Management meets some characteristics of a profession (formal knowledge base, ethical code), but lacks others like regulated entry, compulsory associations, and enforced ethical codes. For detailed discussion, visit Management as a Profession.


Levels of Management

  • Top Level: Sets goals, makes policy decisions (e.g., CEO, Director).
  • Middle Level: Bridges top and lower; plans and implements strategies (e.g., Department Heads).
  • Lower/Supervisory Level: Directly oversees workers and operations.

Read more about the Levels and Functions of Management for better clarity.


Coordination in Management

Coordination is the essence of management, binding all functions and teams together to ensure seamless operation. It integrates diverse efforts, activities, and resources towards achieving organizational objectives. For further details, check Features and Importance of Controlling.


Practice Tools: MCQs, Worksheets, and Downloads

Tool Description Link
MCQ Practice Quick self-assessment for BST Chapter 1 MCQs & Characteristics
Concept Worksheet Printable worksheet with questions and answers Worksheet PDF
Full Chapter Notes Detailed notes for revision and exam prep Download Notes

Exam Tips for CBSE Class 12 Business Studies Chapter 1

  • Write concise, to-the-point definitions using keywords from the textbook.
  • Use examples of real organizations when explaining features of management or coordination.
  • Differentiate between “management as a profession” and other professions with clear points.
  • Practice sample papers and MCQs to cover objective questions.
  • Time your answers during practice to manage exam stress better.

At Vedantu, we provide structured guidance and original solved answers, making last-minute revision quick and effective.


Interlinked Concepts for Deeper Understanding


In summary, Important Questions Class 12 Business Studies Chapter 1 strengthens the foundation of management knowledge required for board exams and real-world business. By practicing types, features, and examples of management, students improve their exam results and analytical skills. Use Vedantu’s structured resources for clarity and success.

FAQs on Important Questions for Class 12 Business Studies Chapter 1

1. What are the most important questions in Class 12 Business Studies Chapter 1?

Class 12 Business Studies Chapter 1 focuses on management. Key questions revolve around its definition, features, and importance. Expect questions on management as a profession and the difference between management and administration. Coordination and its role are also crucial. Prepare short and long answers.

2. How can I answer ‘What is management?’ in CBSE board exams?

Define management concisely as the process of planning, organizing, staffing, directing, and controlling resources to achieve organizational goals. Then, briefly explain each function. Use keywords like planning, organizing, staffing, directing, and controlling. Highlight its importance in achieving objectives efficiently and effectively. Illustrate with a simple example.

3. Which features of management are not considered professional?

While management possesses many professional characteristics, some aspects might not fully align with a strict professional definition. For example, while management involves expertise and specialized knowledge, the application of this knowledge may vary across different organizations and contexts, reducing standardization. Also, management isn't always governed by a strict code of ethics, though it does entail responsibility and accountability. Finally, management relies heavily on experience that may not always be codified or strictly quantifiable.

4. Where can I download the PDF for important questions of BST Chapter 1?

Many educational websites offer Class 12 Business Studies Chapter 1 question banks as PDF downloads. Search online for “CBSE Class 12 Business Studies Chapter 1 important questions PDF” to find reliable resources. Always verify the source's credibility to ensure accuracy and syllabus alignment.

5. Are MCQs included in Chapter 1 important questions for Class 12 BST?

Yes, Multiple Choice Questions (MCQs) are a common part of Class 12 Business Studies exams. Prepare for MCQs testing your understanding of basic concepts, definitions, and features of management, coordination, and management as a profession. Many online resources provide MCQs specifically for Chapter 1.

6. What are the important questions of business studies class 12?

Important Class 12 Business Studies questions vary by chapter. Chapter 1, focusing on management, emphasizes its definition, features, and principles. Later chapters cover different topics, so review the syllabus and question banks for comprehensive preparation. Focus on short answer and long answer types for optimal exam performance.

7. Which chapter is most important in business studies class 12?

The importance of each Class 12 Business Studies chapter depends on the weightage assigned in the syllabus and the current exam pattern. However, Chapter 1 (Management) lays the foundation for the entire subject and has high-scoring potential. Ensure you've mastered the basic concepts and definitions before moving on to other chapters.

8. How can I get full marks in business studies class 12?

Getting full marks requires thorough preparation. Start with a strong understanding of the syllabus. Focus on key concepts, practice past papers, and master different question types (MCQs, short answer, long answer). Understanding case studies and their application is also critical. Regular revision and time management during the exam will greatly boost your chances.

9. Is BST class 12 difficult?

The difficulty of Class 12 Business Studies varies depending on individual learning styles and preparation. Consistent study, understanding key concepts, and practicing past papers will help manage the workload. Breaking down the syllabus into manageable sections and focusing on high-scoring topics can significantly improve your overall performance.

10. How can understanding management help in competitive entrance after Class 12?

A strong grasp of management principles is valuable for various competitive entrances. It demonstrates analytical skills, problem-solving abilities, and an understanding of organizational dynamics – all highly sought-after attributes. Many entrance exams include sections testing these skills, making a solid understanding of management a considerable advantage.