CUET UG 2025 Business Studies Previous Year Solved Paper

wer: 1. Rule
A rule is a clear and specific guideline that tells exactly what must or must not
be done. Policies are broad guidelines, strategies are plans to achieve goals,
and procedures are step-by-step methods to perform tasks. Since the question
asks for something definite and mandatory, the correct answer is Rule.

wer: 2. Business Environment
The term Business Environment refers to all external factors—like customers,
competitors, suppliers, government policies, economic conditions—that a
business cannot control but which influence its decisions and performance.
Business Management is about managing the firm internally, Business
Decision Making is the process of choosing actions, and Entrepreneurship
Development focuses on promoting new businesses.

wer: 1. (A), (C) and (D) only
From a business perspective, consumer protection is important because it
fulfills the firm’s social responsibility, encourages businesses to use resources
efficiently, and safeguards the long-term interests of the business. Government
intervention (B) is important for consumer protection from a regulatory
perspective, but it is not directly a business-driven reason.

wer: 1. Delegation of Authority
When a manager has more work than he can handle, he can delegate authority,
which means assigning responsibility and decision-making power to
subordinates. Span of management refers to the number of subordinates a
manager can supervise, direct communication is about exchanging
information, and close supervision is about monitoring work, not reducing
workload.

wer: 3. Staffing
Staffing is the process of recruiting, selecting, training, and retaining
employees. It is continuous because organizations constantly need to fill new
positions and replace employees who leave. Planning, organizing, and
controlling are also important functions but they are not primarily concerned
with filling and maintaining manpower.

wer: 1. Modes of transportation, communication facilities
The economic dimension of business environment includes factors that affect
the production, distribution, and consumption of goods and services. This
includes infrastructure like modes of transportation and communication
facilities, which directly impact business operations and economic activity. Life
expectancy relates to social factors, legislation relates to political-legal factors,
and technological developments relate to the technological dimension.

wer: 1. Controlling
Controlling is a management function that involves measuring performance,
comparing it with standards, and taking corrective actions. It uses past
performance data to identify deviations and improve future performance.
Coordinating ensures harmony, communication is about exchanging
information, and planning focuses on setting future goals but doesn’t directly
use past performance to correct actions.

wer: 1. Pickle jar
The FPO (Fruit Products Order) mark is found on processed food items,
especially fruit-based products like jams, pickles, and fruit juices. It ensures
that the food product meets safety and quality standards. Shirts, bulbs, and
gold necklaces are not food items and do not carry the FPO mark.

wer: 3. Controlling
Controlling is the management function that measures actual performance,
compares it with standards, and takes corrective actions. By identifying
deviations and providing feedback, controlling helps managers revise or
improve future plans, thus linking the management cycle back to planning.
Organising arranges resources, coordinating ensures harmony, and directing
guides employees, but they do not directly feedback

wer: 4. Employer-paid Insurance
Indirect payments are benefits provided to employees in addition to direct
wages or salary. These include things like insurance, retirement benefits, paid
leave, and other perks. Bonus, daily incentive, and commission are direct
payments because they are paid directly in cash for work done.

wer: 1. Effectiveness
Effectiveness in management means doing the right things to achieve
organizational goals. It focuses on completing tasks and achieving objectives,
rather than just using resources optimally. Efficiency, on the other hand, is
about doing things in the best possible manner with minimum resources, not
necessarily achieving the right goals. Sustainability and quality are related but
do not directly define achieving goals.

wer: 3. Management is a dynamic function
The management of AMPM adapted to changing trends by shifting to
smartwatches, showing its ability to respond to changes in the environment.
This indicates that management is dynamic, meaning it changes and evolves
according to the needs of the organization and environment. Being all

pervasive or continuous is true in general, but the specific feature highlighted
here is its dynamic nature.

wer: 3. F.W. Taylor
F.W. Taylor, the father of Scientific Management, emphasized standardisation
of work methods, tools, time, and processes to improve efficiency and
productivity. Henry Fayol focused on general management principles, Koontz
on modern management theory, and Maslow on human motivation.

wer: 2. Decentralisation
Decentralisation is the process of delegating authority to lower levels of
management, based on the belief that employees are competent and capable of
making decisions. Centralisation is the concentration of authority at the top,
span of management refers to the number of subordinates a manager can
supervise, and democratic leadership is a leadership style, not a philosophy of
authority dispersal.

wer: 3. Internship training
Internship training provides trainees with practical experience in a real work
environment, allowing them to learn by doing actual tasks under supervision.
Vestibule training uses a simulated environment, programmed instruction is a
self-learning method, and case study involves analyzing real or hypothetical
business scenarios but does not provide hands-on work experience.

wer: 2. Authority
Staffing involves recruitment, selection, training, and placement of employees
to ensure the organization has the right people. Authority, however, relates to
the power to give orders and make decisions, which is part of management and
organizing, not staffing.

wer: 1. Coordination
Directing involves guiding, supervising, motivating, and communicating with
employees to achieve organizational goals. Coordination, however, is a
separate management function that ensures harmony among different
activities and departments, and is not an element of directing.

wer: 3. Motivation
Motivation can help Paras improve his attitude by encouraging him,
recognizing his efforts, providing incentives, or supporting his skill
development. Transfer or leave may remove him from the situation but do not
directly change his attitude, and coordination relates to teamwork rather than
personal attitude.

wer: 4. Controlling
Controlling is the management function that compares actual performance
with set standards to ensure goals are being met. It helps in judging the
accuracy of standards and taking corrective actions if required. Directing
guides employees, organizing arranges resources, and planning sets the
standards but does not

wer: 2. A person who obtains the goods without any consideration
Under the Consumer Protection Act, 2019, a complaint can be filed by any
consumer who has paid for goods or services. It can also be filed by the legal
heir of a deceased consumer. Even an “ignorant” consumer has the right to file
a complaint. However, a person who obtains goods or services without paying
anything is not considered a consumer and cannot file a complaint. The central
government can file complaints in special cases.

wer: 2. Risk averse
Entrepreneurs are generally innovative, leadership-oriented, and have a strong
desire to succeed. Being risk averse (avoiding risk) is not a typical
entrepreneurial trait, because entrepreneurs usually take calculated risks to
start and grow businesses.

wer: 4. Future Certainty
Entrepreneurship is encouraged by education, family background, and
government support, which provide skills, guidance, and resources. Future
certainty, however, is not a factor because entrepreneurship inherently
involves uncertainty and risk.

wer: 1. Planning
Planning is the management function that sets objectives, determines the best
course of action, and provides a structured approach to achieve goals.
Organising arranges resources, coordination ensures harmony, and controlling
monitors performance, but planning is the function that lays down objectives
and action plans.

wer: 4. Coordination
Coordination is the management function that ensures harmony among
different departments and activities, aligning efforts in the right amount,
quality, timing, and sequence. This helps achieve organizational objectives
efficiently and reduces conflicts. Planning sets goals, organizing arranges
resources, and controlling monitors performance, but coordination
synchronizes efforts across the organization.

wer: 2. Principles of Management

Principles of Management are guidelines that help managers understand
behaviour, make decisions, and influence practices in an organization.
Organizational objectives set goals, leadership traits relate to individual
qualities, and business environment dimensions affect external factors, but
principles of management directly guide managerial behaviour and practices.

wer: 2. (A) and (C) only
The limitations of internal recruitment are:
• (A) Reduced scope for fresh talent
• (C) Employees may avoid challenging tasks if promotions are
guaranteed
(B) and (D) are advantages, not limitations.

wer: 3. (A), (B), (C) and (D)
All four options (A), (B), (C), and (D) are characteristics of a profession.
Professions have a structured body of knowledge, rely on theoretical
understanding, restrict entry through qualifications, and emphasize service to
society.

wer: 2. (A) and (B) only
Planning primarily involves setting objectives (A) and deciding on plans and
strategies to achieve them (B). Allocating resources (C) is part of organising,
and motivating people (D) is part of directing.

wer: 4. (A), (C) and (D) only
The importance of controlling includes:
• (A) Judging accuracy of standards — ensures realistic benchmarks.

• (C) Facilitating coordination in action — aligns efforts with goals.
• (D) Making efficient use of resources — avoids wastage through
monitoring and correction.
(B) Ensuring creativity is not a direct reason for controlling; it’s more related
to motivation and leadership.

wer: 1. (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
List-I (Principles) List-II (Statement)
(A) Equity
(II) Kindliness and justice in the behavior of managers
towards workers
(B) Unity of
Direction
(III) A group of activities with common objectives must
have one head and one plan
(C) Order
(IV) Every employee must be in his appointed place
(D) Discipline
(I) To ensure obedience to organizational rules

wer: 3. (A) - (IV), (B) - (I), (C) - (II), (D) - (III)
• Strategy (IV): A comprehensive plan for accomplishing objectives.
• Method (I): A prescribed way of doing a task.
• Programme (II): Detailed statements about a project.
• Procedure (III): Exact manner in which a particular activity is to be
done.

wer: 1. (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
• Economic (II): Construction companies prefer low long-term interest
rates → relates to economic conditions.
• Social (IV): Rise in demand for goods during festivals → reflects social
and cultural factors.
• Legal (I): KYC compliance is mandatory → part of legal requirements.

• Political (III): Government maintaining stability and peace → political
environment.

wer: 4. (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
• Development of personnel → (II): Organising stimulates creativity
among managers.
• (B) Adaptation to change → (I): Helps business survive and grow
despite changes.
• (C) Expansion and growth → (IV): Allows addition of more
departments and jobs.
• (D) Effective administration → (III): Clear job descriptions help avoid
confusion.

wer: 1. (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
• (A) Supervision → (III): Provides direct and immediate guidance to
subordinates.
• (B) Motivation → (II): Encourages subordinates to work with zeal and
enthusiasm.
• (C) Leadership → (IV): Guides and influences subordinates in the
desired direction.
• (D) Communication → (I): Involves exchange of ideas, facts, and
feelings.

wer: 2. (A), (C), (B), (D)
The logical sequence of planning is:
1. Making assumptions about the future (A) – understand the environment
and predict conditions.
2. Weighing the pros and cons of each alternative (C) – evaluate possible
options.

3. Selecting the best alternative (B) – choose the most suitable course of
action.
4. Monitoring the plan (D) – ensure objectives are achieved and take
corrective actions if needed.

wer: 3. (D), (A), (C), (B)
The correct order of staffing is:
1. Determining the number of personnel required (D) – first, find out the
vacancies.
2. Searching for employees and stimulating them to apply (A) – attract
candidates.
3. Giving a brief presentation about the company (C) – inform and orient
candidates.
4. Issuing offer letter (B) – finalize and appoint selected candidates.

wer: 1. (A), (C), (B), (D)
The correct sequence of motivation is:
1. Unsatisfied need (A) – recognition of a deficiency or desire.
2. Drives (C) – internal energy or stimulus to satisfy the need.
3. Search behavior (B) – actions taken to fulfill the need.
4. Reduction of tension (D) – need is satisfied, tension is reduced.

wer: (B), (C), (D), (A)
The logical sequence of controlling is:
1. Projecting the future and determining goals and standards (B) – set
performance standards.

2. Measuring and comparing work with standards (C) – assess actual
performance.
3. Investigating causes of deviation (D) – find reasons for discrepancies.
4. Correcting the situation (A) – take corrective action to align performance
with standards.

wer: 1. (B), (A), (C), (D)
The logical sequence of organising is:
1. Dividing the work according to the plan (B) – break down total work into
tasks.
2. Grouping similar activities (A) – combine related tasks into departments
or units.
3. Establishing clear relationships (C) – create a hierarchy and reporting
structure.
4. Allocating work to employees (D) – assign tasks to individuals.

wer: 1. It has features of both Science and Art
Management is considered both a science and an art. It is a science because it
has principles, theories, and systematic knowledge. It is an art because
applying these principles effectively requires skill, creativity, and personal
judgment. Management is not an exact science, nor is it yet a fully recognized
profession in the strict sense.

wer: 3. Placement
The marketing mix consists of the 4 Ps: Product, Price, Place, and Promotion.
Here, “Placement” is incorrectly stated; the correct term is Place. All other
options—Product, Price, and Promotion—are valid components.

wer: 2. Product Information
Labeling provides information about the product to customers, such as
ingredients, features, usage instructions, and certifications like “organic” or
“fair trade.” While it may indirectly influence perception, its main purpose is to
inform and guide customers, not to enhance quality or protect the product.

wer: 2. Sustainability
The passage highlights that Aroma Coffee House emphasizes sustainability and
local community support in its branding strategy. This includes eco-friendly
packaging, ethical sourcing, and supporting local farmers. While luxury, cost,
or speed may be secondary, the primary focus is sustainability.

wer: 4. Promotion
Advertising is a tool used to communicate and promote a product to customers.
It falls under the Promotion component of the marketing mix, which includes
activities like advertising, sales promotions, social media marketing, and
influencer collaborations.

wer: 2. Recyclable materials
The passage mentions that Aroma Coffee House uses recyclable, aesthetically
designed coffee bags to appeal to eco-conscious consumers. This indicates that
their packaging focuses on sustainability and environmental friendliness.

wer: 2. Maximizing shareholders' wealth
The main objective of financial management is to maximize shareholders’
wealth, which means increasing the value of the company for its owners while
ensuring profitability, sustainability, and growth. Revenue, expenses, and

expansion are important but serve the larger goal of enhancing shareholders’
wealth.

wer: 1. Capital Budgeting
Capital budgeting involves analyzing and selecting long-term investment
projects (like solar farms) using tools such as NPV and IRR to ensure only
viable investments are pursued.

wer: 2. Financial blueprint
Financial planning acts as a blueprint for managing funds, allocating resources,
and achieving financial goals in the short and long term.

wer: 4. Optimising cashflow
Efficient working capital management focuses on optimizing cash flow,
managing inventory, and handling short-term obligations to ensure smooth
daily operations.

wer: 1. Pricing Strategy
Pricing strategy is a marketing function, not part of financial management.
Capital structure, financial leverage, and dividend decisions are core
components of financial management.