The picture given below is the package of a perfume bottle: Identify the level of packaging of the box shown above:
1
Primary package
2
Secondary packaging
3
Transportation packaging
4
Both (A) and (B)
Official Solution
Correct Option: (2)
Primary packaging refers to the immediate container that holds the product, such as the perfume bottle itself. Secondary packaging is the outer box or wrapping that provides additional protection, helps in branding, and makes the product ready for display on retail shelves.
02
PYQ 2024
medium
business-studiesID: cbse-cla
Statement-I: That part of a brand which can be spoken is called a brand name. Statement-II: That part of the brand which is given legal protection is called Trademark. Choose the correct option from the following:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the statements are true.
4
Both the statements are false.
Official Solution
Correct Option: (3)
Statement-I: A brand name refers to the part of a brand that can be spoken, such as the name of a product or service. Statement-II: A trademark is a part of the brand that is legally protected. It includes symbols, designs, or words that distinguish a product or service.
03
PYQ 2024
medium
business-studiesID: cbse-cla
‘Marbury Biscuits’ launched its new range of oat cookies in three varieties. They decided to distribute free samples of their biscuits in schools as a part of their promotional campaign. Identify the tool of promotion used by ’Marbury Biscuits’:
1
Advertising
2
Personal Selling
3
Sales Promotion
4
Public Relations
Official Solution
Correct Option: (3)
Sales promotion includes short-term incentives like free samples, discounts, or offers to boost immediate sales. In this case, free samples distributed in schools aim to introduce the product and encourage customers to try it.
04
PYQ 2024
medium
business-studiesID: cbse-cla
Match the Marketing Management philosophies given in Column I with their main focus given in Column II:
1
1-(i), 2-(ii), 3-(iii), 4-(iv)
2
1-(ii), 2-(iii), 3-(i), 4-(iv)
3
1-(iv), 2-(ii), 3-(i), 4-(iii)
4
1-(ii), 2-(iv), 3-(i), 4-(iii)
Official Solution
Correct Option: (3)
The correct matching of marketing philosophies to their main focus is as follows:
1. Production concept: iv) Quantity of product
2. Product concept: ii) Quality, performance and features of product.
3. Marketing concept: i) Customers’ needs
4. Societal Marketing concept: iii) Customers’ needs and societal well-being.
05
PYQ 2024
medium
business-studiesID: cbse-cla
Ayush and Rhea were passionate about sustainable agriculture and healthy living. They wanted to start a business selling organic produce. They had a small farm in a rural area where they began growing fresh organic produce and herbs.In the beginning, they faced challenges in marketing their organic products. They realized that their high quality produce needed better presentation and a strong identity to stand out in a competitive market.They named the business ‘Earthy Store' which indicated the products' benefits and qualities and reflected the values of the business - sustainability and health.They chose a 'logo' that incorporated elements of nature and used earthy colours to convey their organic commitment. They designed and developed eco-friendly biodegradable bags and reusable containers to courier their products to the customers. They also added a personal touch by including handwritten notes in each bag.They also designed and developed product stickers with detailed information about organic certification, nutritional benefits, date of manufacture, date of expiry, etc. The stickers so developed were put on the bags and reusable containers for customers' convenience.‘Earthy Store' created a user-friendly website and established a strong media presence to inform potential customers about their products and persuade them to buy the same. Within a couple of months, they had built a loyal customer base which made them earn profits even in a competitive environment. In a year, they were able to secure contracts with local grocery stores and restaurants.Quoting lines from the above paragraph, identify and explain the three functions of marketing discussed in the above case.
Official Solution
Correct Option: (1)
Functions of marketing: (i) Branding: - Branding is the process of giving a name, term, sign, symbol, design, or some combination of them, to the product. - “They chose a 'logo' that incorporated elements of nature and used earthy colours to convey their organic commitment.” OR
“They named the business ‘Earthy Store' which indicated the products' benefits and qualities and reflected the values of the business - sustainability and health.” (ii) Packaging and Labelling: - Packaging refers to the act of designing and producing the container or wrapper of a product. - Labelling refers to designing and developing the label to be put on the package. It may vary from a simple tag to complex graphics. - “They designed and developed eco-friendly biodegradable bags and reusable containers to courier their products to the customers” OR
“They also designed and developed product stickers with detailed information about organic certification, nutritional benefits, date of manufacture, date of expiry, etc.” (iii) Promotion: - Promotion refers to informing the customers about the firm’s product, its features, etc., and persuading them to purchase these products. - “'Earthy Store' created a user-friendly website and established a strong media presence to inform potential customers about their products and persuading them to buy the same.”
06
PYQ 2024
medium
business-studiesID: cbse-cla
Ankur Sachdeva did his MBA from ITB University. He decided to apply his knowledge of scientific management in the fast food restaurant chain 'Coffee Bean' set up by him. This restaurant was providing burgers, fries, shakes etc, as a part of its menu. Nowadays people are quality conscious, so he was using standardised raw materials, processes, methods, working conditions, machinery etc. The objective was to establish standards of excellence. By doing this he was not only able to reduce the cost but was also able to provide new varieties of burgers, fries and shakes leading to increased turnover. Ankur Sachdeva also believed that there was only one best method to maximise efficiency. As a result he developed best way of grilling burgers, cooking fries and preparing shakes. His main objective was to maximise the satisfaction of customers, which he was able to achieve. Not only to learn the best way of doing a job, but to perform their tasks efficiently, 'Coffee Bean' regularly invests in training and development programmes to equip employees with the necessary skill and knowledge. 'Coffee Bean' believed that efficient employees will produce more and earn more. This will ensure their greatest efficiency and prosperity for both company and workers. The above case highlights the use of Scientific principles and techniques by 'Coffee Bean'. Explain any one such principle and two techniques.
Official Solution
Correct Option: (1)
Principle: Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity. Taylor believed in scientifically selecting and assigning tasks suited to each individual's physical, mental, and intellectual capabilities.
Techniques:
1. Method Study: Finding the one best way to perform a task, minimizing production costs while maximizing quality and customer satisfaction.
2. Standardisation: Setting benchmarks for business activities to ensure uniformity and consistency in production.
07
PYQ 2024
medium
business-studiesID: cbse-cla
Explain the following limitations of the planning function of management: (b) Planning may not work in a dynamic environment.
(ii) Planning leads to rigidity.
(iii) Planning is time-consuming.
Official Solution
Correct Option: (1)
(i) Planning may not work in a dynamic environment: The business environment is dynamic, and organizations must constantly adapt to changes. It becomes difficult to accurately assess future trends due to the unpredictable nature of the environment, making planning less effective in such situations. (ii) Planning leads to rigidity: A well-defined plan may lead to rigidity as managers may lack the flexibility to adapt to changing circumstances. (iii) Planning is a time-consuming process: Planning requires significant time to gather information, analyze options, and make decisions, leaving little time for actual implementation.
08
PYQ 2024
medium
business-studiesID: cbse-cla
Distinguish between Primary Market and Secondary Market on any four bases.
Official Solution
Correct Option: (1)
Primary Market: (i) It involves the sale of securities by new companies or new issues of securities by existing companies to investors. (ii) Securities are sold by the company to the investors directly. (iii) It directly promotes capital formation. (iv) Only buying of securities takes place. Secondary Market: (i) There is trading of existing shares only. (ii) Ownership of securities is exchanged between investors. (iii) It indirectly promotes capital formation. (iv) Both buying and selling of securities takes place.
09
PYQ 2024
medium
business-studiesID: cbse-cla
‘Increase in profit earned by equity shareholders due to the presence of fixed financial charges like interest' is referred to as:
1
Capital structure
2
Financing decision
3
Return on Investment
4
Trading on equity
Official Solution
Correct Option: (4)
The correct answer is Trading on equity. Trading on equity occurs when a company uses fixed financial charges, such as interest on debt, to increase the return for its equity shareholders. The presence of debt can amplify the profits for equity shareholders due to the leverage effect.
10
PYQ 2024
medium
business-studiesID: cbse-cla
Financial market allocates or directs funds available for investment into the most productive investment opportunity. In doing so, it performs the ____________________________ function.
1
Creative
2
Exchange
3
Allocative
4
Productive
Official Solution
Correct Option: (3)
The correct answer is Allocative. In financial markets, funds are allocated or directed to the most productive investment opportunities. This allocation function ensures that capital is distributed efficiently to support economic growth and investment in productive ventures.
11
PYQ 2024
medium
business-studiesID: cbse-cla
Sunita opened her travel agency named 'Sunita Travels' in July, 2023. She created separate departments for reservations, hotel bookings, online queries and payment handling. Which organisation structure is used by Sunita:
1
Functional structure
2
Divisional structure
3
Informal structure
4
Vertical structure
Official Solution
Correct Option: (1)
Sunita has used a functional structure for her travel agency. In this structure, the organization is divided into different departments based on specialized functions like reservations, hotel bookings, and payment handling. Each department focuses on a specific function, which enhances efficiency and specialization.
12
PYQ 2024
medium
business-studiesID: cbse-cla
Statement I: Controlling ensures that activities in an organization are performed as per the plans. Statement II: Controlling function of a manager is a pervasive function. Choose the correct option from the options given below:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the Statements are true.
4
Both the Statements are false.
Official Solution
Correct Option: (3)
Statement I is true because controlling is the function of ensuring that activities are aligned with the plans and objectives set by the organization. Statement II is also true as controlling is a pervasive function, meaning it is required at all levels of management, from top to operational levels. Therefore, both statements are correct.
13
PYQ 2024
medium
business-studiesID: cbse-cla
Beenu had a bookstore in Sabad called 'Book-mark'. For years, the bookstore was doing reasonably well but with the rise of digital books and online retailers, her sales had declined. Beenu's daughter, who had just completed her MBA with a specialisation in marketing, decided to launch a marketing campaign to revive the bookstore. The campaign's focus was on the joy of reading books in physical form, the joy of turning pages, and the warm atmosphere of the bookstore. She organised story writing and other competitions every weekend. The information of these was given to the parents and children through television, radio, children's magazines, etc. Attractive prizes were offered to the winners. This increased the footfall of the children and their parents and the bookstore soon became popular.The tool of communication used by Beenu's daughter to revive the bookstore was:
1
Advertising
2
Personal selling
3
Sales promotion
4
Public relations
Official Solution
Correct Option: (4)
Step 1: Public relations focuses on building and maintaining positive relationships with the public through various communication channels. Step 2: Beenu's daughter used media channels like TV, radio, and magazines to communicate the joy of physical books and engage the community, which is characteristic of public relations efforts. Thus, the correct answer is option D.
14
PYQ 2024
medium
business-studiesID: cbse-cla
Which of the following is not a component of 'Physical Distribution'?
1
Inventory control
2
Standardisation and grading
3
Order processing
4
Transportation
Official Solution
Correct Option: (2)
Step 1: Physical distribution involves logistics activities such as transportation, warehousing, and order processing. Step 2: Standardisation and grading relate to product quality, not physical movement of goods. Thus, the correct answer is option B.
15
PYQ 2024
medium
business-studiesID: cbse-cla
Identify the tool of promotion used by 'Mehta Sons Garments' to boost its sales:
1
Advertising
2
Personal selling
3
Sales promotion
4
Public relations
Official Solution
Correct Option: (3)
Step 1: Sales promotion includes short-term incentives to encourage purchases and boost sales. Step 2: Examples include discounts, coupons, and special offers. Thus, the correct answer is option C.
16
PYQ 2024
medium
business-studiesID: cbse-cla
The marketing management philosophy which uses availability and affordability as a means to achieve the objectives is:
1
Marketing concept
2
Selling concept
3
Product concept
4
Production concept
Official Solution
Correct Option: (4)
Step 1: The production concept emphasizes mass production, availability, and affordability of products to maximize profits. Step 2: Businesses focus on producing goods efficiently to cater to demand. Thus, the correct answer is option D.
17
PYQ 2024
medium
business-studiesID: cbse-cla
Identify from the following what is shown in the picture of a refrigerator given below: \includegraphics[width=0.5\linewidth]{14.png}
1
Brand name
2
Brand mark
3
Trademark
4
Label
Official Solution
Correct Option: (4)
Step 1: Understanding the terms. - A label provides information about the product, such as its features, usage, price, and manufacturing details. - A brand name, brand mark, and trademark are used to identify and differentiate a product but do not convey additional product-specific information like a label does. Step 2: Analyzing the given scenario. The picture of the refrigerator highlights the information provided about the product, which aligns with the definition of a label. Conclusion: The correct answer is (D) Label.
18
PYQ 2024
medium
business-studiesID: cbse-cla
Match the terms given in Column I with their meaning in Column II: \begin{center}
\begin{tabular}{|l|p{6cm}|}
\hline
Column I & Column II \hline
a. Trademark & (i) A name, term, sign, symbol, design or some combination of them used to identify the products and differentiate them from the competitors. \hline
b. Brand name & (ii) A brand or a part of the brand that is given legal protection. \hline
c. Brand & (iii) That part of the brand which can be recognised but which is not utterable. \hline
d. Brand mark & (iv) That part of the brand which can be spoken. \hline
\end{tabular}
\end{center} Choose the correct option from the following:
1
(i) (ii) (iii) (iv)
2
(ii) (iii) (i) (iv)
3
(ii) (iv) (i) (iii)
4
(ii) (i) (iv) (iii)
Official Solution
Correct Option: (3)
Step 1: Understand the meanings of the terms. - Trademark: Legal protection of a brand or a part of a brand. - Brand name: The part of the brand that can be spoken. - Brand: A name, term, symbol, or design used to differentiate a product. - Brand mark: The part of the brand that can be recognised but is not utterable. Step 2: Match Column I with Column II based on the definitions. Conclusion: The correct option is (C).
19
PYQ 2024
easy
business-studiesID: cbse-cla
Arushi successfully runs a bookstore 'Children's Delight' catering to children of the age group 5-15 years. They have the complete range of children's books like activity books, colouring books, fiction and much more. The books are of good quality and are highly appreciated by schools, parents and children. They have 16 stores all over India, where
children can not only purchase the books, but can also come and read, and participate in quiz competitions and
experience the joy of reading. They have their own wellmanaged inventory management, storage, and warehousing to deliver books to locations all over India. The bookstore regularly communicates the availability, features, merits, etc. of the books to target customers and persuades them to buy the books.
Quoting lines in the situation, identify and explain the two elements of marketing mix in addition to 'Product' highlighted in the above case.
Official Solution
Correct Option: (1)
(i) Place: textit{"They have 16 stores all over India."} OR textit{"They have their own well-managed inventory management, storage, and warehousing to deliver books to locations all over India."} - Place refers to making products available to target customers through efficient distribution systems, including inventory management and transportation. (ii) Promotion: textit{"The bookstore regularly communicates the availability, features, merits, etc., of the books to target customers and persuades them to buy the books."} - Promotion involves communicating with customers to inform and persuade them to purchase the product, using tools like advertising and sales promotion.
20
PYQ 2024
medium
business-studiesID: cbse-cla
Explain the four important elements of the marketing mix.
Official Solution
Correct Option: (1)
The marketing mix consists of four essential elements known as the 4Ps of Marketing: (i) Product - The product includes not just the physical item but also associated services like after-sales support, warranty, and branding. - Important product decisions involve quality, packaging, labeling, and unique features. (ii) Price - Price refers to the amount customers pay to purchase a product or service. - Pricing strategies include penetration pricing, skimming pricing, and competitive pricing. (iii) Place (Physical Distribution) - It includes decisions related to storage, inventory management, and selecting intermediaries such as wholesalers and retailers. - The goal is to ensure the product reaches consumers efficiently. (iv) Promotion - Promotion involves activities that communicate the product’s availability, features, and benefits to customers. - Methods include advertising, sales promotions, personal selling, and public relations.
21
PYQ 2024
medium
business-studiesID: cbse-cla
Explain the following functions of marketing: (i) Product Designing and Development (ii) Standardisation and Grading
Official Solution
Correct Option: (1)
(i) Product Designing and Development - The design of a product contributes significantly to its attractiveness to consumers. - A well-designed product not only improves its aesthetic appeal but also enhances performance and efficiency. - Product design includes aspects like shape, size, color, material, and usability, which together provide a competitive advantage in the market. - Example: A smartphone company improving its design to make the device more ergonomic and user-friendly. (ii) Standardisation and Grading - Standardisation refers to producing goods of predetermined specifications to ensure uniformity and consistency in output. - It helps in maintaining quality standards, reducing defects, and increasing customer trust. - Grading is the process of classifying products into different categories based on characteristics such as quality, size, and durability. - Example: Agricultural products like wheat, tea, and fruits are graded based on size, color, and quality before being sold in the market.
22
PYQ 2024
medium
business-studiesID: cbse-cla
Differentiate between 'Production Concept' and 'Marketing Concept' of marketing management philosophies on the basis of: (a) Meaning (b) Main Focus (c) Means (d) Ends
Official Solution
Correct Option: (1)
Basis
Production Concept
(a) Meaning
Assumes that consumers prefer products that are widely available and affordable.
(b) Main Focus
Focuses on increasing production efficiency and quantity.
(c) Means
Uses mass production and cost reduction to achieve business objectives.
(d) Ends
Aims to earn profit through high production volume.
23
PYQ 2025
medium
business-studiesID: cbse-cla
Explain ‘Advertising’, ‘Sales Promotion’ and ‘Public Relations’ as elements of promotion mix.
Official Solution
Correct Option: (1)
Explanation of elements of promotion mix: Advertising: It is a paid form of non-personal communication used to inform, persuade, and remind customers about a product or service. It is used to build brand awareness and attract customers through various media like television, radio, internet, etc. Sales Promotion: It includes short-term incentives offered to consumers to boost the immediate sale of products. Examples include discounts, coupons, contests, and free samples. These tools stimulate consumer interest and encourage purchase. Public Relations: It involves maintaining a positive image of the company and its products among the public through press releases, corporate social responsibility (CSR) activities, events, and press conferences. PR builds goodwill and credibility for the business.
24
PYQ 2025
medium
business-studiesID: cbse-cla
Explain the following functions of marketing: 1. Marketing Planning 2. Branding 3. Pricing
Official Solution
Correct Option: (1)
Explanation of the marketing functions: Marketing Planning: It involves developing appropriate marketing plans so that the marketing objectives of the organization can be achieved. This includes deciding targets, formulating strategies for promotion and distribution, forecasting demand, etc. A proper marketing plan helps in optimum resource utilization, reducing wastage and achieving desired results. Branding: Branding refers to giving a unique name, sign, symbol or design to a product to differentiate it from competitors. It helps in building brand recognition and loyalty among consumers. For example, names like Nike, Apple, and Amul are strong brands that influence customer purchasing decisions. Pricing: Pricing involves setting the right price for the product to attract consumers and achieve business goals. Factors like production cost, competition, demand, and consumer perception influence pricing decisions. Proper pricing ensures competitiveness and profitability.
25
PYQ 2025
medium
business-studiesID: cbse-cla
The picture given below is the package of a perfume bottle:
Identify the level of packaging of the box shown above:
1
Primary package
2
Secondary packaging
3
Transportation packaging
4
Both (A) and (B)
Official Solution
Correct Option: (2)
The image shows a box in which the actual perfume bottle is enclosed. This box is not in direct contact with the product but is used to protect the primary package and to make the product attractive. This kind of packaging is called secondary packaging. The primary package would be the actual perfume bottle.
- Transportation packaging is used for bulk shipping.
- Primary packaging directly holds the product. Final Answer: (B) Secondary packaging
26
PYQ 2025
medium
business-studiesID: cbse-cla
(a) Explain the following functions of marketing:
(i) Product Designing and Development.
(ii) Standardisation and Grading OR (b) Explain the four important elements of marketing mix.
Differentiate between 'Production concept' and 'Marketing concept' of marketing management philosophies on the basis of:
(a) Meaning
(b) Main focus
(c) Means
(d) Ends
Official Solution
Correct Option: (1)
Basis
Production Concept
Marketing Concept
(a) Meaning
Focuses on mass production efficiency
Focuses on identifying & satisfying customer needs
3. Performance Metrics: - Production: Output per labor hour - Marketing: Customer lifetime value
28
PYQ 2025
medium
business-studiesID: cbse-cla
Identify from the following - what is shown in the picture of refrigerator given below?
1
Brand mark
2
Brand name
3
Trademark
4
Label
Official Solution
Correct Option: (4)
The refrigerator image would show a Label because: 1. Label Characteristics: - Contains mandatory information: ✓ Manufacturer details ✓ Energy rating ✓ Technical specifications ✓ Serial numbers 2. Visual Identification: - Typically includes barcodes - Has regulatory compliance marks - Located on back/side panels 3. Distinction: - Brand mark: Visual symbol (e.g., Samsung's oval logo) - Brand name: Verbal (e.g., "Whirlpool") - Trademark: Legally protected elements (® symbol) Consumer Context: - Labels serve critical functions: ✓ Warranty validation ✓ Installation guidance ✓ Safety instructions Final Answer: (D) Label
29
PYQ 2025
medium
business-studiesID: cbse-cla
Match the terms given in Column-I with their meaning in Column-II.
Column-I
Column-II
a. Trademark
(i) A name, term, sign, symbol, design or some combination of them used to identify the products and differentiate them from the competitors.
b. Brand name
(ii) A brand or a part of the brand that is given legal protection.
c. Brand
(iii) That part of the brand which can be recognised but which is not utterable.
d. Brand mark
(iv) That part of the brand which can be spoken.
Choose the correct option from the following:
1
a-(i), b-(ii), c-(iii), d-(iv)
2
a-(ii), b-(iii), c-(i), d-(iv)
3
a-(ii), b-(iv), c-(i), d-(iii)
4
a-(ii), b-(i), c-(iv), d-(iii)
Official Solution
Correct Option: (3)
The correct matching is:
Term
Correct Match
Examples
Trademark
(ii) Legal protection
Nike's Swoosh®
Brand name
(iv) Speakable part
"Coca-Cola"
Brand
(i) Identification system
Apple's ecosystem
Brand mark
(iii) Visual non-utterable
McDonald's Golden Arches
Key Differentiators:
Trademark vs Brand: - All trademarks are brands, not vice-versa - Legal status is distinguishing factor
Brand Name vs Mark: - Name: Verbal ("Nike") - Mark: Visual (Swoosh logo)
Final Answer: (C) a-(ii), b-(iv), c-(i), d-(iii)
30
PYQ 2025
medium
business-studiesID: cbse-cla
Identify from the following what is depicted in the given picture:
1
Trade Mark only
2
Brand Name only
3
Brand Mark only
4
Both Brand Name and Brand Mark
Official Solution
Correct Option: (4)
The box shows the name Amar Sweets, which is the brand name, and also displays a visual symbol/logo, which is the brand mark. When both are present, it represents both branding elements. Final Answer: (D) Both Brand Name and Brand Mark
31
PYQ 2025
medium
business-studiesID: cbse-cla
(a) Explain the following functions of marketing:
(i) Standardisation and Grading
(ii) Transportation OR
(b) Explain any two components included in physical handling and movement of goods from place of production to the place of distribution.
Official Solution
Correct Option: (1)
(i) Standardisation and Grading: Standardisation means setting uniform specifications for products (such as size, quality, packaging). Grading involves categorizing products based on certain features or quality levels (like Grade A, B, etc.). These functions help in building consumer trust and ease of comparison. (ii) Transportation: This function ensures that goods are moved efficiently from the place of production to the place of consumption. It reduces geographical barriers and ensures timely delivery of goods to various markets. Final Answer: (a) Standardisation/Grading = quality control; Transportation = logistical movement.
32
PYQ 2025
medium
business-studiesID: cbse-cla
(a) Explain the following functions of marketing:
(i) Marketing planning
(ii) Gathering and analyzing market information OR (b) Explain the following factors which affect the fixation of price of a product:
(i) Product cost
(ii) Utility and Demand
Official Solution
Correct Option: (1)
(a) Functions of Marketing:
Marketing Planning: It involves setting marketing goals and outlining strategies to achieve them. It includes planning product launch, advertising, pricing, etc.
Gathering and Analyzing Market Information: Businesses must understand customer preferences, competitors, and market trends. This helps in making informed decisions.
(b) Factors Affecting Price Fixation:
Product Cost: This is the baseline for setting the price. Includes production, packaging, and distribution costs.
Utility and Demand: If a product is more useful and in demand, consumers may be willing to pay more. High utility and demand often lead to higher prices.
Final Answer: Provided explanations for both OR parts.
33
PYQ 2025
medium
business-studiesID: cbse-cla
Arushi successfully runs a bookstore ‘Children’s Delight’ catering to children of the age group of 5 – 15 years. They have the complete range of children’s books like activity books, colouring books, fiction and much more. The books are of good quality and are highly appreciated by schools, parents and children. They have 16 stores all over India, where children can not only purchase the books, but can also come and read, and participate in quiz competitions and experience the joy of reading. They have their own well-managed inventory management, storage, and warehousing to deliver books to locations all over India. The bookstore regularly communicates the availability, features, merits, etc. of the books to target customers and persuades them to buy the books. Quoting lines in the situation, identify and explain the two elements of marketing mix in addition to ‘Product’ highlighted in the above case.
Official Solution
Correct Option: (1)
Elements of Marketing Mix in Addition to Product:
Place:“They have 16 stores all over India, where children can not only purchase the books… They have their own well-managed inventory management, storage, and warehousing to deliver books to locations all over India.” This line highlights the element of Place in the marketing mix. ‘Place’ refers to the distribution strategy used by a business to make the product accessible to its customers. Arushi has ensured wide availability of her books by opening 16 stores across the country and supporting them with efficient warehousing and logistics. This helps in reaching the target market effectively and enhances customer convenience. It shows how proper placement of product impacts visibility, accessibility and customer reach.
Promotion:“The bookstore regularly communicates the availability, features, merits, etc. of the books to target customers and persuades them to buy the books.” This line reflects the element of Promotion in the marketing mix. Promotion involves all the activities undertaken by a firm to make its product known to the customers and persuade them to purchase it. Arushi uses promotional efforts to inform customers about the qualities, features and availability of the books. This may include advertisements, in-store promotions, word-of-mouth publicity, or participation in quiz competitions that not only attract children but also enhance brand image. Promotion builds awareness and drives customer engagement and sales.
34
PYQ 2025
medium
business-studiesID: cbse-cla
(a) Explain the following functions of marketing :
(i) Customer support services
(ii) Product designing and development OR
(b)Explain ‘Advertising’ and ‘Personal Selling’ as tools of promotion used by the marketers.
Official Solution
Correct Option: (1)
(a)
(i) Customer Support Services: These include after-sales services, feedback handling, grievance redressal, installation, and maintenance that improve satisfaction and brand loyalty.
(ii) Product Designing and Development: Refers to creating products based on consumer needs and preferences. A well-designed product attracts buyers and sustains demand.
(b)
Advertising: A paid form of promotion used to create awareness and persuade customers using print, digital, or visual platforms.
Personal Selling: Involves face-to-face interaction with potential customers to understand their needs and close sales. Effective for technical or expensive products.
35
PYQ 2025
medium
business-studiesID: cbse-cla
State the four major components of physical distribution.
Official Solution
Correct Option: (1)
The four key components of physical distribution are: (i) Order Processing: Involves the steps taken from receiving customer orders to delivery. Efficient order processing ensures customer satisfaction and smooth functioning of supply chains. (ii) Transportation: Refers to the physical movement of goods from the manufacturer to the consumer. It plays a vital role in deciding the geographical reach and cost-effectiveness of distribution. (iii) Warehousing: Involves storage of goods until they are sold. Warehouses protect goods from damage and ensure regular supply. (iv) Inventory Control: Deals with maintaining optimum stock levels to meet demand without overstocking. It minimizes costs and prevents delays in order fulfillment.
36
PYQ 2025
medium
business-studiesID: cbse-cla
Explain the following functions of marketing:
(i) Gathering and Analysing Market Information
(ii) Marketing Planning
Official Solution
Correct Option: (1)
Explanation of Functions of Marketing:
(i) Gathering and Analyzing Market Information:
Gathering and analyzing market information is a critical function in marketing that helps businesses understand the market dynamics, consumer preferences, and competitive landscape. The process involves collecting data on market trends, customer behavior, competitor activities, and economic conditions. This data is then analyzed to identify opportunities, assess risks, and make informed decisions.
Key aspects of this function include:
Customer Insights: Understanding customer needs, preferences, and buying behavior helps in designing products and services that meet their demands.
Market Trends: Identifying shifts in market demand, technological advancements, and changing consumer lifestyles enables businesses to adapt to evolving markets.
Competitive Analysis: Analyzing the strategies, strengths, and weaknesses of competitors allows businesses to position themselves more effectively in the market.
Environmental Scanning: Examining external factors such as economic, social, political, and technological conditions helps businesses foresee potential challenges or opportunities.
By gathering and analyzing market information, businesses can make strategic decisions related to product development, pricing, distribution, and promotional strategies, ensuring that they stay competitive and responsive to market needs.
(ii) Marketing Planning:
Marketing planning is the process of formulating strategies and actions to achieve marketing objectives. It involves setting specific, measurable, attainable, relevant, and time-bound goals (SMART goals) for the marketing department. Marketing planning is essential for coordinating marketing efforts and ensuring alignment with the organization's overall objectives.
Key components of marketing planning include:
Market Research: Conducting thorough market research to understand consumer needs, market conditions, and competitive environment. This information forms the foundation of the marketing plan.
Setting Objectives: Clearly defining marketing goals such as increasing market share, launching a new product, or improving brand awareness. These objectives guide all marketing activities.
Strategy Formulation: Developing marketing strategies to reach the target audience, such as selecting the right marketing channels, pricing strategies, promotional tactics, and distribution networks.
Resource Allocation: Determining the budget and resources required to implement the marketing strategies effectively, ensuring that each marketing activity is adequately funded and executed.
Monitoring and Evaluation: Continuously assessing the performance of marketing strategies and activities to ensure they are meeting the set objectives. Adjustments are made as needed to optimize results.
Marketing planning is crucial for businesses to stay focused, allocate resources efficiently, and achieve sustainable growth. It ensures that all marketing efforts are organized, coordinated, and aligned with business goals.
37
PYQ 2025
medium
business-studiesID: cbse-cla
Differentiate between ‘Selling Concept’ and ‘Production Concept’ of marketing management philosophies on the basis of: (a) Meaning (b) Main Focus (c) Means (d) Ends
Official Solution
Correct Option: (1)
Marketing philosophies guide a company’s approach to the market. Here’s a comparison between two key concepts: Selling Concept: - Assumes consumers will not buy enough unless persuaded aggressively. - Focuses on pushing products regardless of need. - Examples: Insurance policies, encyclopedias sold through aggressive sales campaigns. Production Concept: - Assumes consumers prefer affordable and widely available products. - Emphasises on mass production and economies of scale. - Example: FMCGs like soap and toothpaste produced in bulk. Final Answer: See table above for structured comparison.
38
PYQ 2025
medium
business-studiesID: cbse-cla
(a) Explain the following functions of marketing :
(i) Customer support services
(ii) Physical distribution OR (b) State any four factors which affect the fixation of price of a product.
Official Solution
Correct Option: (1)
(a) Explanation of the Functions of Marketing:
(i) Customer Support Services:
Customer support services refer to the activities and services provided by a company to assist customers in resolving issues or obtaining maximum value from a product or service. These services play a critical role in ensuring customer satisfaction, loyalty, and retention. Some key aspects of customer support services include:
Pre-sales Support: This involves assisting customers with product information, answering queries, and helping them choose the right product based on their needs.
Post-sales Support: After the product is sold, companies provide support to address any issues customers may face. This includes offering maintenance services, product installation, troubleshooting, and providing warranties or guarantees.
Customer Feedback and Assistance: Engaging with customers to gather feedback and address concerns helps in improving the product or service and enhancing customer satisfaction.
(ii) Physical Distribution:
Physical distribution is the function of marketing that involves the movement of products from the manufacturer to the end consumer. It includes various processes, such as transportation, warehousing, inventory management, and order fulfillment. The goal of physical distribution is to ensure that the product is available at the right place, at the right time, and in the right quantity. Key components of physical distribution include:
Transportation: The physical movement of goods from one location to another. This can include road, rail, air, or sea transport, depending on the product and market.
Warehousing: The storage of goods until they are needed for distribution. Proper warehousing ensures that the products are available when required by the customer.
Inventory Management: The efficient management of stock levels to meet demand without overstocking or understocking, which could lead to higher costs or stockouts.
Order Fulfillment: The process of picking, packing, and delivering orders to customers in a timely and efficient manner.
OR
(b) Four Factors Affecting the Fixation of Price of a Product:
The price of a product is determined by several factors. Below are four key factors that influence the fixation of price:
Cost of Production: The cost of producing the product, including raw materials, labor, manufacturing, and overheads, directly affects the pricing. Companies typically aim to set a price that covers these costs and provides a reasonable profit margin.
Demand and Supply: The basic law of demand and supply plays a crucial role in price fixation. When demand is high and supply is limited, prices tend to rise. Conversely, if supply exceeds demand, prices may fall.
Competition: The pricing strategy of competitors also influences the price of a product. If competitors offer similar products at lower prices, a company may adjust its pricing to remain competitive in the market.
Market Conditions: Economic conditions, such as inflation, recession, or changes in consumer purchasing power, can affect how much consumers are willing to pay for a product. During times of economic downturn, companies may lower prices to attract cost-conscious consumers.
39
PYQ 2025
medium
business-studiesID: cbse-cla
Differentiate between 'Product Concept' and 'Societal Marketing Concept' of marketing management philosophies on the basis of :
(a) Meaning
(b) Main focus
(c) Means
(d) Ends
Official Solution
Correct Option: (1)
A
40
PYQ 2025
medium
business-studiesID: cbse-cla
Identify from the following - what is shown in the picture of refrigerator given below?
1
Brand name
2
Brand mark
3
Trademark
4
Label
Official Solution
Correct Option: (2)
The picture represents a Brand Mark because: 1. Visual Identification: - Symbol or design element - Non-textual representation 2. Distinction: - Not (A): Brand name is textual - Not (C): Trademark is legal protection - Not (D): Label provides product information 3. Marketing Purpose: - Creates visual brand identity - Enhances brand recall Examples: - Nike's Swoosh - Apple's bitten apple logo Final Answer: (B) Brand mark
41
PYQ 2025
medium
business-studiesID: cbse-cla
Statement – I : That part of a brand which can be spoken is called a brand name. Statement – II : That part of the brand which is given legal protection is called Trademark.
Choose the correct option from the following :
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the statements are true.
4
Both the statements are false.
Official Solution
Correct Option: (3)
Statement I is correct: The part of a brand that can be spoken — such as a name, term, or phrase — is called the brand name.
Statement II is also correct: The brand or a part of it (symbol, logo, name, etc.) when registered and legally protected becomes a trademark. These two are core concepts of branding and intellectual property. Hence, both statements are accurate. Final Answer: (C) Both the statements are true.
42
PYQ 2025
medium
business-studiesID: cbse-cla
______ is the process by which a manager synchronises the activities of different departments.
1
Management
2
Planning
3
Co-ordination
4
Directing
Official Solution
Correct Option: (3)
Coordination is the process of aligning and unifying the efforts of different individuals and departments to achieve organizational objectives efficiently. It ensures that activities are harmonized across functions like production, marketing, finance, etc. It is often called the “essence of management” because it runs through all managerial functions — planning, organizing, staffing, directing, and controlling. Thus, coordination enables synergy and avoids duplication or conflict. Final Answer: (C) Co-ordination
43
PYQ 2025
medium
business-studiesID: cbse-cla
‘Marbury biscuits’ launched its new range of oat cookies in three varieties. They decided to distribute free samples of their biscuits in schools as a part of their promotional campaign.
Identify the tool of promotion used by ‘Marbury Biscuits’:
1
Advertising
2
Personal Selling
3
Sales Promotion
4
Public Relations
Official Solution
Correct Option: (3)
Sales promotion refers to short-term incentives offered to stimulate immediate interest and purchase. Free samples, coupons, contests, discounts, and rebates are all common sales promotion techniques. In this case, Marbury Biscuits distributed free samples — a classic example of sales promotion. It is not advertising (which involves paid messages through mass media), not personal selling (face-to-face persuasion), and not public relations (managing the brand's image). Final Answer: (C) Sales Promotion
44
PYQ 2025
medium
business-studiesID: cbse-cla
Which of the following is not a feature of marketing :
1
Needs and wants
2
Storage and warehousing
3
Customer value
4
Creating a market offering
Official Solution
Correct Option: (2)
Storage and warehousing is more related to logistics and supply chain management, rather than marketing itself. While they are essential to the product distribution process, they are not typically considered a feature of marketing, which is primarily focused on customer needs, value, and market offerings. - (A) Needs and wants: Marketing focuses on understanding customer needs and wants. - (C) Customer value: Marketing aims to create value for customers. - (D) Creating a market offering: Marketing creates offerings that appeal to customers’ needs. Final Answer: (B) Storage and warehousing
45
PYQ 2025
medium
business-studiesID: cbse-cla
‘JKSD India Ltd.’ recently introduced a new range of ‘fresh from kitchen’ jams, ketchups, salad dressings and peanut butter, etc. They appointed salespersons to contact prospective customers in leading malls to create awareness about their products and develop product preferences with the aim of making sales. Which tool of promotion is being used by ‘JKSD India Ltd.’ to market its products :
1
Advertising
2
Personal Selling
3
Sales Promotion
4
Public Relations
Official Solution
Correct Option: (2)
The scenario describes the company employing salespersons to directly interact with customers in malls to create product awareness and preference. This is a clear example of Personal Selling, which involves one-on-one communication between a salesperson and potential customers to persuade them to purchase products. - (A) Advertising: Involves mass media communication to promote products to a large audience, which is not happening here. - (C) Sales Promotion: Refers to short-term incentives like discounts or giveaways, but the focus here is on direct interaction. - (D) Public Relations: Involves managing the company's image, not direct sales activities. Final Answer: (B) Personal Selling
46
PYQ 2025
medium
business-studiesID: cbse-cla
Match the Marketing Management philosophies given in Column I with their main focus given in Column II:
Column I
Column II
1. Production concept
(i) Customers’ needs
2. Product concept
(ii) Quality, performance and features of product
3. Marketing concept
(iii) Customers’ needs and societal well-being
4. Societal marketing concept
(iv) Quantity of product
Choose the correct option from the following:
1
1-(iv), 2-(ii), 3-(iii), 4-(i)
2
1-(ii), 2-(iii), 3-(i), 4-(iv)
3
1-(iv), 2-(ii), 3-(i), 4-(iii)
4
1-(ii), 2-(iv), 3-(i), 4-(iii)
Official Solution
Correct Option: (3)
The four marketing management philosophies mentioned in the question are based on different focuses that organizations can have. Let’s break down the match: - Production concept focuses on producing goods at a lower cost and mass availability, hence it primarily focuses on the quantity of the product (iv). - Product concept emphasizes quality, features, and performance of a product, which is reflected by quality, performance, and features of the product (ii). - Marketing concept is customer-oriented and focuses on meeting customers' needs (i). - Societal marketing concept is an extended version of the marketing concept that emphasizes both customers' needs and societal well-being (iii). Thus, the correct matches are: - 1-(iv): Production concept → Quantity of product. - 2-(ii): Product concept → Quality, performance, and features of product. - 3-(i): Marketing concept → Customers' needs. - 4-(iii): Societal marketing concept → Customers' needs and societal well-being. Final Answer: (C) 1-(iv), 2-(ii), 3-(i), 4-(iii)
47
PYQ 2025
medium
business-studiesID: cbse-cla
Ashwin was a fashion designer. On losing his job, he decided to sell the designer clothes online under the brand name ogue. The garments were made of good quality fabric with intricate designs and skilled craftsmanship, making them expensive to produce. Realizing that the online market is very competitive, he decided to charge a reasonable price for the garments. The price would cover the cost of production and sale of garments as well as give him 10 percent margin over and above the cost. Identify and explain two factors affecting the price determination discussed in the above case.
Official Solution
Correct Option: (1)
Ashwin factored in both internal and external determinants while pricing. The internal factor, cost of production, included premium fabric and skilled labor. Externally, he had to keep in mind the competitive landscape of the online market, which pushed him toward setting a balanced and profitable price.
48
PYQ 2025
medium
business-studiesID: cbse-cla
‘Lens-o’ was started as an online eyewear company... Now they also sell offline from their own showroom. Which channel of distribution is used by the company :
1
Zero level channel
2
One level channel
3
Two level channel
4
Three level channel
Official Solution
Correct Option: (1)
A zero-level distribution channel means there are no intermediaries between the producer and the consumer. The product is sold directly through online platforms, company-owned stores, or direct orders. ‘Lens-o’ sells directly online and in its own retail showroom, hence it follows a zero-level channel. Other channels involve intermediaries like retailers (one level), wholesalers and retailers (two level), etc., which are not applicable here. textbf{Final Answer:} (A) Zero level channel
49
PYQ 2025
medium
business-studiesID: cbse-cla
A name, term, symbol, design, or some combination of these, used to identify the products, goods or services of one seller or group of sellers and to differentiate them from those of the competitors is known as :
1
Brand
2
Trade Mark
3
Brand Name
4
Brand Mark
Official Solution
Correct Option: (1)
A Brand is a combination of a name, term, symbol, design, or any other feature that helps identify a company’s products and distinguish them from competitors' offerings. The brand is a representation of the product’s identity in the market. - (B) Trade Mark: A trade mark is a legally registered symbol or name, but it’s not as broad as a brand. - (C) Brand Name: This refers specifically to the name part of the brand, not the whole identity. - (D) Brand Mark: This refers to the symbolic or design part of a brand, not the complete identity. Final Answer: (A) Brand
50
PYQ 2025
medium
business-studiesID: cbse-cla
Bimal Rai is working in Funny Bunny Ltd. The company manufactures games and toys for children. The basic task of Bimal Rai is to integrate diverse elements and coordinate the activities of different departments. He also analyses the business environment and its implications for the survival of the firm. The level of management at which Bimal Rai is working is:
1
Top level
2
Middle level
3
Operational level
4
Both Middle and Operational level
Official Solution
Correct Option: (2)
The role of Bimal Rai at Funny Bunny Ltd. involves integrating diverse elements, coordinating the activities of different departments, and analyzing the business environment for the firm's survival. These responsibilities align with the typical duties of the middle level of management in an organization. Here is how each duty correlates with the middle management role:
Integration of Diverse Elements: Middle managers are responsible for ensuring that various parts of the organization work together efficiently, aligning their efforts with the overall company strategy.
Coordination Across Departments: Middle managers oversee the performance and operation of departments, ensuring that inter-departmental activities are harmonized towards achieving company goals.
Business Environment Analysis: Middle managers are involved in interpreting the external environment and devising strategies to shield the company from threats or capitalize on new opportunities.
Therefore, based on these duties and responsibilities, Bimal Rai is operating at the Middle level of management.
51
PYQ 2025
easy
business-studiesID: cbse-cla
Salim and Karim are good friends. They started a business of selling high-quality seeds for growing organic vegetables. They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies, and backyards. Due to the growing trend 10 towards healthy consumption habits, there is a huge demand for their seeds. The dimension of business environment being discussed above is:
1
Economic Environment
2
Political Environment
3
Social Environment
4
Legal Environment
Official Solution
Correct Option: (3)
In analyzing the scenario with Salim and Karim, let’s identify the dimension of the business environment being referred to:
1. Economic Environment: Involves economic factors like inflation, demand, supply, etc. Relevant when business operations are directly affected by economic conditions.
2. Political Environment: Encompasses government policies, political stability, and regulations impacting businesses. Focuses on political aspects influencing business decisions.
3. Social Environment: Refers to societal trends and cultural norms affecting consumer behaviors and demands. This includes lifestyle changes and growing trends toward health consciousness.
4. Legal Environment: Comprises legal factors like laws, regulations, and legal obligations that businesses need to comply with.
In the given scenario, the mention of a "growing trend towards healthy consumption habits" indicates a shift in consumer behavior, forming the basis for increased demand for organic seeds. This aligns with the Social Environment, where societal preferences and lifestyle changes drive business dynamics.
Correct Answer: Social Environment
52
PYQ 2025
easy
business-studiesID: cbse-cla
Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalized and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations. The aspect of the nature of management highlighted in the above case is:
1
Management as an Art
2
Management as a Science
3
Management as a Profession
4
Management both as a Science and as a Profession
Official Solution
Correct Option: (1)
The aspect of the nature of management emphasized in the case of Sadhna is identified as "Management as an Art." This conclusion is drawn from the following points:
Personalized Application: Sadhna applies her knowledge in a personalized way, which is a characteristic of art. Art involves the individual's skill and creativity, enabling them to tailor their approach based on the situation.
Imagination and Creativity: She uses imagination and creativity, central features of art, to handle different work situations effectively. Art emphasizes innovation and originality in approach.
Skillful Execution: The ability to manage situations skillfully indicates mastery in using acquired knowledge, aligning with the artistic aspect of management.
Unique Style: Art involves the unique expression and style of an individual, similar to Sadhna's management approach described.
In contrast, management as a science relies on systematic knowledge, principles, and objective facts; as a profession, it requires formal qualifications and adherence to ethical codes. The case highlights Sadhna's individualized and creative approach, thus underscoring management as an art.
53
PYQ 2025
easy
business-studiesID: cbse-cla
In an informal organisation, authority arises out of:
1
Virtue of position in management
2
Company’s rules and policies
3
Scalar chain
4
Personal qualities
Official Solution
Correct Option: (4)
An informal organisation is characterized by the natural and spontaneous development of interpersonal relationships within a business or workplace. Since it forms outside the official structures and processes of the formal organisational framework, authority in an informal organisation is not dictated by hierarchical or official titles. Instead, authority arises from:
Personal qualities: In informal settings, individuals who exhibit strong personal qualities—such as charisma, expertise, trustworthiness, and leadership—naturally command respect and influence. These attributes allow them to lead and guide others without relying on formally designated power.
The other options associated with authority in a formal organization are:
Virtue of position in management: Authority here is based on one's official role and responsibilities, not applicable in informal setups.
Company’s rules and policies: These define authority and operational procedures within formal structures.
Scalar chain: This refers to the line of authority within a formal organization from top to bottom.
Thus, in an informal organization, it is indeed personal qualities that serve as the primary source of authority and influence.
54
PYQ 2025
easy
business-studiesID: cbse-cla
DG Ltd., an E-plane car company has developed a revolutionary flying car for passenger mobility. This hybrid flying car can accommodate upto two persons and features innovative wing like doors for comfortable entry (The seats are designed for utmost comfort, crafted from high quality materials) Product.The distinguishing feature of this flying car is that its production will be in India and (it will utilise biofuel alongside electricity, ensuring a sustainable mode of transportation) Soutolion DG Ltd. has obtained the first testing approval for its category. Priced at 2.5 crores the company has to take decisions in respect of discounts to customers, credit terms etc) so that the customere porosive the price to he in line with the value of the produc Pricing Calas Prom Tomakethe flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc) Pern To communicate the availability, features, merita etc. of the product to the target customers and persuade them to buy the flying car. (DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists The above case describes the combination of elements used by DGLtd. to prepare its market offering.Quoting lines from the above para, identify and explain the elements. The above case describes the combination of elements used by DG Ltd. to prepare its market offering. Quoting lines from the above paragraph, identify and explain the elements.
Official Solution
Correct Option: (1)
The case describes DG Ltd.'s market offering using the elements of the Marketing Mix, often referred to as the 4Ps: Product, Price, Place (Distribution), and Promotion. Let's identify and explain each element using quotes from the paragraph:
1. Product:
Identification: "DG Ltd., an E-plane car company has developed a revolutionary flying car for passenger mobility... This hybrid flying car can accommodate up to two persons and features innovative wing like doors for comfortable entry (The seats are designed for utmost comfort, crafted from high quality materials)...The distinguishing feature of this flying car is that its production will be in India and (it will utilise biofuel alongside electricity, ensuring a sustainable mode of transportation)."
Explanation: This element encompasses the tangible (or intangible) item offered to the market to satisfy a need or want. In this case, the "revolutionary flying car" itself is the product. The description highlights its key features, such as passenger mobility, capacity (two persons), innovative wing-like doors for easy entry, comfortable seating, local production in India, and the sustainable biofuel and electricity combination. These features constitute the core product and its attributes that are designed to attract customers.
2. Price:
Identification: "Priced at 2.5 crores the company has to take decisions in respect of discounts to customers, credit terms etc) so that the customers perceive the price to he in line with the value of the produc."
Explanation: This element refers to the amount of money customers are willing to pay for the product. The quote clearly mentions the "Priced at 2.5 crores" which sets the initial selling price of the flying car. It also states that decisions must be made about "discounts to customers, credit terms, etc." This reveals that DG Ltd. must strategically decide how to position the price in relation to the perceived value of the car for customers. Price encompasses not just the monetary value but also related factors such as payment terms, discounts, allowances, and credit terms.
3. Place (Distribution):
Identification: "To make the flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc."
Explanation: This element encompasses the channels and strategies used to make the product accessible and available to the target market. "Selecting dealers or intermediaries to reach the customers" highlights the distribution channel DG Ltd. is considering. It includes all activities involved in moving the product from the manufacturer to the end consumer, such as transportation, warehousing, inventory management, and the selection of distribution partners (in this case, dealerships).
4. Promotion:
Identification: "To communicate the availability, features, merits etc. of the product to the target customers and persuade them to buy the flying car, (DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists)."
Explanation: Promotion refers to the activities undertaken to communicate the value proposition of the product and persuade target customers to buy it. The quote states that DG Ltd. will use "digital marketing campaigns, press releases, and demos conducted by influencers and journalists." This showcases a mix of promotional tactics, including advertising (digital campaigns), public relations (press releases), and personal selling/demonstrations (influencer demos), designed to inform and persuade potential customers about the flying car's benefits.
55
PYQ 2025
easy
business-studiesID: cbse-cla
VK Ltd. is a fast-moving consumer goods company. It has shareholders spread all over India. Most of its shareholders depend upon a regular income from their investment. VK Ltd. has been earning consistent profits. The management of the company keeps in mind the preference of the shareholders regarding the payment of dividends. Since its shareholders, in general, desire that at least a certain amount is paid as a dividend to them every year, the company declares a dividend every year. Atul, the Finance Manager of the company identified promising growth opportunities. He suggested to the Chief Executive Officer to retain the earnings to finance the required investments instead of declaring a dividend every year. For this, the Chief Executive Officer decided to call a General Body Meeting of the shareholders. (i) Identify two factors affecting the dividend decision discussed above. (ii) State two other factors that affect the dividend decision of a company.
Shareholders' Preferences: The statement mentions that "Most of its shareholders depend upon a regular income from their investment" and that "The management of the company keeps in mind the preference of the shareholders regarding the payment of dividends." This explicitly highlights the importance of considering shareholders' preferences when making dividend decisions. A company with a large base of income-dependent shareholders often prioritizes consistent dividend payouts.
Stability of Earnings: The statement mentions that "VK Ltd. has been earning consistent profits." Companies with a history of stable and predictable earnings are more likely to declare regular dividends. The stability of earnings provides the company with the financial confidence to commit to consistent dividend payments.
(ii) Other Factors Affecting Dividend Decision:
Here are two other factors that influence a company's dividend decision:
Growth Opportunities: The presence of attractive investment or growth opportunities within the company significantly influences the dividend decision. If the company has promising projects or expansion plans, it may choose to retain a larger portion of its earnings to fund these opportunities, resulting in lower dividend payouts. The trade-off is between providing immediate returns to shareholders (through dividends) and reinvesting earnings for future growth.
Cash Flow Position: A company's cash flow position is a crucial determinant of its ability to pay dividends. Dividends are paid out of the available cash reserves of the company. Even if a company has substantial retained earnings, it may not be able to declare high dividends if its cash flow is tight due to other financial obligations or operational needs.
56
PYQ 2025
easy
business-studiesID: cbse-cla
Tech Work, an Artificial Intelligence (AI) startup, started in 2024. It was earning good profits. It wanted to expand its business and for its research and development, it 27 required 100 crores. The Chief Executive Officer of Tech Work consulted the Finance Manager who suggested that there is a market which facilitates the transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or expand existing ones through the issue of securities. The management of Tech Work decided to raise funds from the investors by issuing equity shares at 200 per share for the first time. (i) Name the type of capital market through which ”Tech Work” decided to raise funds for its expansion. (ii) State three features of the market identified in (i) above.
Official Solution
Correct Option: (1)
(i) Type of Capital Market: The type of capital market through which Tech Work decided to raise funds for its expansion is the Primary Market. The primary market deals with the issuance of new securities, where companies raise capital for the first time by offering equity shares to the public (also known as an Initial Public Offering or IPO).
(ii) Three Features of the Primary Market: 1. New Issue of Securities: The primary market facilitates the issuance of new securities (equity shares, bonds, etc.) by companies to raise capital. This is where companies first offer their shares to the public. 2. Capital Raising for Companies: It provides a platform for companies to raise capital for business expansion, research, development, or other projects, as seen in the case of Tech Work. 3. Direct Transfer of Funds: In the primary market, funds are directly transferred from investors to the company. The money raised from the issue of shares goes directly to the company, which will use it for its operations or expansion
57
PYQ 2025
easy
business-studiesID: cbse-cla
Ganesh Jain is the Marketing Manager at ’KL Foods Ltd.’ He has a team of four employees working under him- Kavya, Ritesh, Pooja, and Madhav. Kavya and Ritesh are temporary employees while Pooja and Madhav’s job is permanent. All four of them have been working hard and consistently met all targets. Ganesh Jain wanted to reward them for their good performance. He understood that in all human beings, there exists a hierarchy of needs. So, he identified the need level of each of the employees to provide motivation to them. Kavya and Ritesh were made permanent in the job with a good pension plan while Pooja and Madhav were given an autonomy status. (i) Identify and state the need of employees recognized by Ganesh Jain in the above case. (ii) State any two assumptions on which Maslow’s Need Hierarchy Theory is based.
Official Solution
Correct Option: (1)
(i) Identified Needs of Employees:
Kavya and Ritesh: Ganesh Jain recognized their Safety and Security Needs. By making them permanent employees with a good pension plan, he addressed their need for job security, stability, and protection from future uncertainties.
Pooja and Madhav: Ganesh Jain recognized their Esteem Needs. By giving them autonomy status, he addressed their desire for recognition, respect, independence, achievement, and status within the organization. Autonomy suggests they have decision-making authority and a certain level of control over their work.
(ii) Assumptions of Maslow's Need Hierarchy Theory:
Here are two assumptions on which Maslow's Need Hierarchy Theory is based:
Needs are Hierarchical: Maslow's theory assumes that human needs are arranged in a hierarchy of prepotency, starting with basic physiological needs and progressing to higher-level needs such as safety, social, esteem, and self-actualization. This means that individuals are primarily motivated to satisfy their lower-level needs before they can focus on higher-level needs. An unsatisfied need can be a strong motivator, but once a need is substantially satisfied, it no longer serves as a primary motivator.
People Strive to Satisfy Needs in Order: The theory assumes that people strive to satisfy their needs in a specific order, moving up the hierarchy as lower-level needs are met. Once the lowest level need (such as physiological need) is met, the individual progresses to the second level, safety and security. People are not motivated by higher level needs until lower-level needs are met.
58
PYQ 2026
medium
business-studiesID: cbse-cla
‘Novel Stores’ is a chain of grocery stores that has built its reputation on customer satisfaction. It is known for its high-quality products, including a wide variety of bakery, dairy products and ready-to-cook meal kits, etc. catering to diverse customer needs. The store regularly takes feedback from the customers and stocks items accordingly. The store is popular among the customers for its attractive schemes such as ‘buy one get one free’ offers and weekly discounts, etc. which are advertised on its website. Once the goods are manufactured, packaged, branded and promoted, ‘Novel Stores’ ensures that they are made available to customers at the right place, in the right quantity and at the right time. Customers can place orders online and choose to get them delivered at their home or pick them up from the store at a selected time. As a result, the revenues of ‘Novel Stores’ are growing every year and profits are increasing.
Identify and explain the elements of marketing mix highlighted in the above case.
Official Solution
Correct Option: (1)
Step 1: Understanding the Concept:
The Marketing Mix (4Ps) consists of Product, Price, Place, and Promotion. These are the tools a firm uses to achieve its marketing objectives in the target market. Step 2: Detailed Explanation:
1. Product: Highlighted by "high-quality products, including a wide variety of bakery, dairy products... goods are manufactured, packaged, branded." It refers to the tangible or intangible offering that satisfies a consumer need.
2. Promotion: Highlighted by "attractive schemes such as ‘buy one get one free’ offers and weekly discounts... advertised on its website." These are activities used to communicate the product's availability and persuade customers to buy.
3. Place / Physical Distribution: Highlighted by ensuring goods are "made available to customers at the right place, in the right quantity and at the right time" and offering "online delivery or store pick-up." It involves the activities that make products available to target customers. Step 3: Final Answer:
The elements are Product, Promotion, and Place.
59
PYQ 2026
medium
business-studiesID: cbse-cla
‘Premier Ltd.’ is a clothing company known for its high quality apparel and strong commitment to environment sustainability. The company designs its clothing after carefully understanding the needs of its present and prospective buyers and satisfying them in an effective manner. It assumes that profit can be maximised only when all decisions are taken from the point of view of customer satisfaction. Along with meeting customer needs, ‘Premier Ltd.’ also shows a deep concern for the long-term well-being of the society. To reduce environmental pollution, the company is using organic cotton and recycled polyester. For reducing waste, they run a programme where customers can return old clothes for recycling and get a discount on new clothes. Not only this, they keep aside a portion of its profits for environmental education programmes in local schools. Identify and explain two marketing management philosophies followed by ‘Premier Ltd.’.
Official Solution
Correct Option: (1)
Step 1: Understanding the Concept:
Marketing philosophies guide the strategy of a firm. The Marketing concept focuses on identifying and satisfying customer needs, while the Societal Marketing concept adds the dimension of ethical and social responsibility. Step 2: Detailed Explanation:
1. Marketing Concept: This is highlighted by the line, "designs its clothing after carefully understanding the needs of its present and prospective buyers and satisfying them." The focus is on customer satisfaction as the path to profit.
2. Societal Marketing Concept: This is highlighted by the company's "deep concern for the long-term well-being of the society" and their use of organic cotton/recycled polyester. It balances company profits, consumer wants, and society's interests. Step 3: Final Answer:
The two philosophies are the Marketing Concept and the Societal Marketing Concept.
60
PYQ 2026
medium
business-studiesID: cbse-cla
Identify the shift in the marketing management philosophy from Picture I to Picture II.
1
From Production concept to Product concept
2
From Production concept to Societal marketing concept
3
From Societal marketing concept to Production concept
4
From Product concept to Production concept
Official Solution
Correct Option: (1)
Step 1: Understanding the Concept:
Marketing philosophies represent the focus of a business, ranging from internal efficiency (Production) to product quality (Product) to consumer satisfaction (Marketing). Step 2: Detailed Explanation:
1. Mass production indicates the Production Concept, where the focus is on large-scale output to reduce costs and increase availability.
2. Adapting a television for a specific high-quality use (like a computer monitor) indicates the Product Concept, which emphasizes product excellence, features, and performance. Step 3: Final Answer:
The shift is (a) From Production concept to Product concept.
61
PYQ 2026
medium
business-studiesID: cbse-cla
The process of giving a name or a sign or a symbol etc., to a product is known as :
1
Brand
2
Branding
3
Labelling
4
Packaging
Official Solution
Correct Option: (2)
Step 1: Understanding the Concept:
In marketing, a product needs a unique identity to distinguish it from competitors. This identity consists of names, terms, signs, symbols, or designs. Step 2: Detailed Explanation:
The \textit{act} or \textit{process} of creating this identity is called Branding. While a "Brand" is the name or symbol itself, "Branding" refers to the management process of developing that name and symbol to ensure the product stands out in the market. Step 3: Final Answer:
The correct option is (b) Branding.
62
PYQ 2026
medium
business-studiesID: cbse-cla
One of the factors affecting price determination of a product is ‘Pricing Objectives’. Which of the following pricing objectives will result in a higher price being fixed for the product ?
1
Obtaining market share leadership
2
Surviving in a competitive market
3
Attaining product quality leadership
4
Profit maximisation in the long run
Official Solution
Correct Option: (3)
Step 1: Understanding the Concept:
Pricing objectives dictate how a company sets its prices. Objectives like "survival" or "market share" usually require lower prices to attract volume, whereas "quality leadership" focuses on perceived value. Step 2: Detailed Explanation:
To attain "Product Quality Leadership," a firm must invest heavily in R & D and high-quality materials. To cover these costs and signal to customers that the product is "premium" or the "best in class," the company must charge a higher price. Step 3: Final Answer:
The objective resulting in higher prices is (C).
