CBSE Class 12 Business Studies Question Paper 2017

Business studies courses are introduced at the Senior School level to provide students with a sound understanding of the practises and principles bearing in business (trade and industry) as well as their relationship with society. Business is said to be a dynamic process that brings together nature, technology, natural resources along with human initiative in a constantly changing global environment. With the purpose to help them understand the framework within which a business operates, and its interaction with the social, economic, technological and legal environment, CBSE has introduced Project Work in the Business Studies Syllabus for Classes 11 and 12. The designing of the project is in such a way that allows students to appreciate that business is an integral component of society as well as help them develop an understanding of the ethical as well as the social issues which are concerning them.

The work of the project also aims to empower the teacher so that they can relate all the concepts with what is happening around the world and also the student’s surroundings, by making them appear more contextual and clear. This will enable the student to enjoy their studies and use their free time effectively in observing what’s happening around him.

With the help of this Project Work, students have gained exposure to life beyond textbooks giving them opportunities to refer to materials, gather information, analyse it further to obtain relevant information and decide what matters to keep.

Objectives

After completing the assigned project Work in the Business Studies  students will be able to do the following things in future:

They can develop a practical approach by using modern technologies in the field of management and business.

They will get an opportunity for exposure to the environment which is operational in the policymaking field of business management and the sources related.

Inculcate important skills of teamwork, problem-solving, time management, information collection, processing, analysing and synthesising relevant information to derive meaningful conclusions

They can get involved in the process of research work also and demonstrate his or her capabilities while working independently.

Make studies an enjoyable experience to cherish.

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The solution to past year papers is prepared by our subject experts with an idea that basic concepts should be clear and there should be sufficient practice for each concept through problem-solving. The solution to each of the questions is in a very descriptive and illustrative way thus by referring to this solution students will improve their analytical and logical thinking abilities of the mentioned concepts.

Since most of the students cannot differentiate between the exact method to solve questions depending upon its level thus keeping this thing in mind VEDANTU has prepared a solution with an objective of an overall evolution of student’s concepts in a manner that the students understand all the theorems, formulas, and derivations quite effectively by linking them with their practical applications.

Summary of Chapter 3: Business Environment

Business Environment: Business environment refers to the total factors which act to influence the business.  The following are the features of the business environment:

(i) Totality of External Powers: External forces mean those forces over which business has no control. Eg:- Customers, Suppliers, Government, Competitors and Intermediaries etc.

(ii) Special and General Powers: The powers affecting business are divided into two parts;

(a) Special Powers: It includes customers, suppliers, competitors and investors etc.

(b) General Powers: It includes the social, political, legal, technological environment.

(iii) Various Components of the Business Environment Related to Each Other; Eg:- Change in interest rates by the new government. That is, political change leads to economic change.

(iv) Uncertainty: The business environment is uncertain and enforceable. For example:- The clothes of the people keep on changing with the fashion.

(v) Dynamic Nature: The business environment is constantly dynamic.

(vi) Complexity: The business environment is very complex. Which becomes very difficult to study independently.

(vii) Relativity: The business environment is related to local conditions.

Importance of Business Environment

(1) Advantages of the First Mover: Study of the business environment provides a variety of opportunities. Firms that are aware of the changes taking place in the business environment can take advantage of these opportunities.

(2) Warning Signs: The study of the business environment alerts you to the dangers along with the opportunities. These hazards refer to the changes that bring about a disruption in the conduct of the business. Businessmen who are aware of these dangers can make changes in their business according to these dangers.

(3) Acquisition of Useful Resources: The business, which constantly studies the business environment, can get various resources available in the market (eg: - raw materials, machines, etc.) at a reasonable price and easily.

(4) To Cope with a Fast-Moving Environment: The business environment is constantly dynamic. There are constant changes in various components of the business such as several customers, competition, technology etc. Businesses can face these changes only by studying the business environment.

(5) Helpful in Planning and Policy Making: A business can plan business activities and formulate policies in a better way by studying and analysing the business environment. For example:- According to the change in the economic environment by the new government, the business is to formulate the policy again.

(6) Improvement in Performance: The business improves its operations by being conscious of the study of the business environment. For example:- To improve one's goods through other business by the entry of new competitive firms in the market.

Dimensions Of Business Environment 

Dimensions of business environment include the following:

(i) Economic environment

(ii) Political environment

(iii) Technological Environment

(iv) Social environment

(v) Legal environment.

(1) Economic Environment: The main components of the economic environment;

(i) Change in interest rates

(ii) Price Growth Index and Rupee Value

(iii) stock market changes, and

(iv) Change in the income of the people.

The business should study the economic environment to be aware of all these types of factors. For example, due to the fall in the value of the rupee, there is an increase in the imported price of the machinery needed for the business.

(2) Political Environment: Main components of the political environment;

(i) Peace in the country

(ii) Government's attitude towards business

(iii) Ideologies of different political parties

(iv) Constitution of the country

(v) Present political system. Business success can be achieved by being aware of changes in various activities under political conditions.

(3) Technological Environment: A business can stay ahead of the competing firms by staying abreast of changes in the technological environment. Firms can improve their product through technological change. Main components of the technical environment;

ATP Education

(i) New methods of production of goods and services

(ii) New methods of conducting business.

(4) Social Environment: Social environment also determines the life span of the business. Because the business which is conscious of the social environment - takes care of the social values, wants and aspirations of the people, the society supports that business and that business survives for a long time. 

Main Components 

(i) Traditions

(ii) Social Values

(iii) Education level

(iv) Expectations of the society etc.

(5) Legal Environment: Under the legal environment, rules, acts, etc., decisions passed by the government are included. A business needs to constantly study the legal environment to be aware of the various components of the legal environment. Its main components;

(i) Act passed by the Government

(ii) Decisions of various commissions and agencies

(iii) other legal decisions.

The changing nature of the Indian economic environment The Government of India adopted the policy of economic reforms from July 1991 to overcome the economic crisis of the country. Whose main centre was liberalisation, privatisation, globalisation?

(1) Liberalisation: Liberalisation means freeing businesses and industries from various types of restrictions. For example, from the necessity of licence, reduction of tax rates, simplification of import-export process etc.

(2) Privatisation: Privatisation refers to increasing the role of the private sector by reducing the role of the public sector. it features ;

(i) To reduce the fiscal burden of the government.

(ii) To accelerate the economic pace.

(iii) To increase the government treasuries.

(iv) Handing over sick public units to private hands.

(3) Globalisation: Globalisation refers to the exchange of goods or services, customs, language, culture and clothes at the international level.

Various steps are taken in the new economic reform

(1) New Industrial Policy: (i) To determine the role of private and public sectors. (ii) To free industries from many licences and restrictions. (iii) Promotion of foreign investment.

(2) New Business Private: Under this, decisions related to controlling foreign trade were taken, such as removing many old restrictions.

(3) Fiscal Reforms: The policies related to the income and expenditure of the government are called fiscal policy, when the expenditure of the government is more than its income, then this difference between expenditure and income is called a fiscal deficit, to meet which fiscal reforms are done. 

(4) Monetary Reforms: Under this, decisions related to the supply of money are taken.

(5) Capital Market Reforms: Capital market refers to the buying and selling of securities. The Securities and Exchange Board of India has been set up to control the capital market.

(6) Elimination of Price Control: Price control was removed by the government on many products and control was also imposed on the import of many goods.

Effect of Change in Government Policy on Business and Industry

(i) Increasing Competition: The level of competition in the domestic market increased due to the policy of liberalization brought by the government. Due to which the small scale industries were either closed or went into loss.

(ii) Customers with High Expectations: With the increase of competition, more quality goods are available to the consumers at a lower price. Due to this, the desires of the people are also increasing and they are demanding more good things.

(iii) Rapid Changes in the Technological Environment: Due to increasing competition in the business environment, various businesses make various improvements in their goods to face it, for which they use the latest technology. Influenced by which other firms also have to use new technology and through this rapid changes come in the technical environment.

(iv) Need for Change: The level of competition increased with the entry of new firms in the domestic market through new economic policies. To cope with this, other people also needed to make changes in their objects. Because now one by one good and cheap items were available to the consumers in the market.

(v) Market-Oriented: Before the economic reforms of 1991, two approaches were adopted in the market - production-oriented and market-oriented. Production head means to produce first and then sell it in the market. Whereas market leader means first surveying the market and then producing the goods accordingly. Because in today's time the importance of the customer has increased, so today the second approach is given more importance.

(vi) Requirement of Developed Human Resources: There is a need for more trained human resources to face the ever-changing technological environment as no ordinary person can face the various business challenges of the future. (vii) Reduction in the budgetary support of the public sector: The new economic policies adopted by the government led to a reduction in the budgetary support given to the public sectors. Due to which the importance of the public sector started decreasing and the importance of the private sector increased.

Why Opt For The Previous Years Papers?

Previous year or previous years examination papers are known as past papers, usually, past papers are used either for exam practice or for tests, such as the University of Oxford, University of Cambridge College Collections.

past papers are found valuable by Exam candidates in test preparation. Past exam papers have been made commercially available by either publishing the papers by themselves or licensing a publisher to do the same by some organisations responsible for holding exams. As an example, SAT papers in the U.S. and UPSC papers in India, A level papers and GCSE in the UK are being sold, as well as other exams worldwide.

Question papers of previous years' exams are to assess a student's brilliancy and capabilities. Students who generally prepare for competition exams look for past papers. These papers will help the students to understand the paper pattern of the final exam.