📘 CUET 2026 Business Studies Preparation | CUET 2025 BST PYQs Solved
Are you preparing for CUET 2026 Business Studies? In this video, we solve the CUET 2025 Previous Year Question Paper (BST) to help you understand the exam pattern, important questions, and concept clarity.
Practicing PYQs is one of the smartest strategies to boost your preparation and confidence.
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Kabir, Divya and Mansha were partners in a firm sharing profits
and losses in the ratio of 5:4:1. With effect from 1st April 2025, they
decided to share the future profits and losses in the ratio of 4:1:5.
For this purpose, the goodwill of the firm was valued at ₹ 3,00,000.
The necessary journal entry for the treatment of goodwill because of
change in profit sharing ratio will be :
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A business earned average profits of ₹ 60,000 during the last three
years. The normal rate of return on similar business is 12%. The
value of net assets of the business is ₹ 4,00,000.
Calculate the value of goodwill by :
i. Capitalisation of average profits method.
ii. Capitalisation of super profits method.
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Average profits of a firm during the last few years were ₹ 1,60,000.
The normal rate of return in a similar business is 10%. If the
goodwill of the firm is ₹ 4,00,000 at four years purchase of super
profit, find the capital employed by the firm.
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'Global Tech Ltd.' was a multinational company that manufactured
modern electronics devices and employed nearly 10,000 people from
across the world. The company had a well-defined organisational
structure with separate departments for finance, marketing and
production. Every department had its own objectives, policies and style of
working. As each department performed its activities in isolation from
others, conflicts arose within the organisation.
Further, due to complex technology involved in producing modern
electronic devices, 'Global Tech Ltd' relied heavily on specialists, The
specialists were confident of their professional knowledge and often did
not consider suggestions from others in matters pertaining to their area
of specialisation. This resulted in conflict among different specialists and
others in the organisation. As the company continued to grow, more
employees from different backgrounds and work habits joined the
organisation. The increasing size of workforce, along with departmental
differences and dependence on specialists, made it difficult to ensure that
everyone worked towards the same organisational goals. Therefore it
became necessary for the management to harmonise individual goals
with organisational goals and integrate the efforts of departments and
specialists to achieve common objectives.
(i) Identify and state the concept which would help 'Global Tech Ltd.' in
bringing together the efforts of employees and specialists to achieve
common goals of the organisation.
(ii) Quoting lines from the given case, state any three points of
importance of the concept identified in (i) above.
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Vani, Vanya and Ajay were partners in a firm sharing profits and losses
in the ratio of 5:3:2. Vani retired and her share was taken over by Vanya
and Ajay in the ratio of 2:3. The new profit sharing ratio between Vanya
and Aiay after Vani's retirement was : click here for solution
Navya, Kartik and Samir were partners in a firm sharing profits and losses in the ratio of 4:3:1. Samir was given a guarantee that his share of profit in any year will not be less than ₹ 57,000. Any deficiency on this account was to be borne by Navya and Kartik equally. The firm earned a profit of ₹ 4,00,000 during the year ended 31st March, 2025. The amount of deficiency borne by Kartik was
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Nandita and Prabha were partners in a firm manufacturing furniture.
They were sharing profits and losses in the ratio of 8:7. During the year
ended 31t March 2025, Nandita withdrew ₹ 80,000 in cash and ₹ 20,000
as furniture for her personal use. The partnership deed provided for
charging interest on partner's drawings @ 6% p.a. The amount of interest
on Nandita's drawings for the year ended 31st March 2025 was : click here for solution
Entrepreneurship is not a one-size-fits-all concept. Different entrepreneurs have distinct approaches to innovation, risk-taking, and adaptability. Based on their mindset and response to change, entrepreneurs can be classified into: Innovative, Imitative, Fabian and Drone Entrepreneurs.
Each type of entrepreneur has a unique impact on business and industry growth. While Drone Entrepreneurs struggle due to their rigid approach, Fabian Entrepreneurs survive only by adopting change late. On the other hand, Imitative Entrepreneurs help expand existing business models, and Initiative Entrepreneurs are the true game-changers who redefine industries.
Concept of Social Security Measures
Social security measures are programs and policies designed to provide financial support and assistance to individuals and families during times of need. These measures aim to ensure economic security, protect against life uncertainties like unemployment, illness, disability, old age, and maternity, and promote social well-being.
Importance of Social Security Measures
Examples of Social Security Measures
Conclusion
Social security measures are essential for fostering a balanced and resilient society. They not only provide immediate support during adversities but also contribute to long-term economic and social development.
Infrastructure refers to the basic systems and structures that a country or community needs to function smoothly. This includes things like roads, bridges, electricity, water supply, schools, hospitals, and internet networks. These facilities support daily life and help businesses, industries, and governments operate efficiently. Without good infrastructure, development and progress become difficult.
| Aspect | Social Infrastructure | Physical Infrastructure |
| Definition | Facilities and services that support the social well-being and quality of life of individuals. | Tangible structures and systems that support economic activity and movement of goods and services. |
| Purpose | Enhances human capital by providing education, healthcare, and social services. | Facilitates economic development through transportation, energy, and communication systems. |
| Examples | Schools, colleges, hospitals, community centers, housing. | Roads, bridges, railways, power plants, water supply systems. |
| Focus | Addresses social and cultural needs of the population. | Focuses on physical and economic growth of a region. |
| Impact | Improves literacy, health, and social equality. | Boosts productivity, trade, and industrial development. |
| Nature | Typically intangible in its primary function but supported by physical facilities. | Primarily tangible and involves large-scale construction and maintenance. |
| Funding | Often funded through public welfare schemes or social initiatives. | Funded through government budgets, private investment, or public-private partnerships. |
| Dependency | Depends on physical infrastructure for accessibility (e.g., schools need roads). | Functions independently but often indirectly supports social infrastructure. |
Infrastructure plays a pivotal role in the economic development and growth of a country. Both social infrastructure and physical infrastructure contribute in complementary ways:
Social infrastructure, which includes facilities like education, healthcare, housing, and public safety, directly impacts human capital and overall societal well-being. Its economic importance includes:
Physical infrastructure such as transportation, energy, and communication networks forms the backbone of economic activity. Its importance includes:
Global Competitiveness: Nations with robust infrastructure are better positioned in the global market, attracting more investments and fostering trade.
The infrastructure sector is crucial for economic growth but faces several challenges that hinder its development and efficiency. These challenges include:
Addressing these challenges requires a collaborative effort from governments, private sectors, and international organizations. Key measures include improved policies, sustainable practices, technological upgrades, and efficient project management to ensure that infrastructure development meets the growing demands of the economy.
Planning: - Planning refers to deciding in advance what to do and how to do.
Features of Planning are as follows:
Single-use plans includes:
Standing plans includes:
These plans are not classified as single-use or standing plans
Objectives: are the end towards which the activities are directed. They are the end result of every activity. e.g. increase in sale by 10%.
Pigou Approach to Social Welfare is named after economist Arthur Cecil Pigou. It focuses on addressing negative externalities from market activities, such as pollution, and their impact on social welfare.
Pigou's theory emphasizes the role of external costs or benefits in a market.
Externalities occur when individuals or firms impact others who aren't involved in the transaction. For example, pollution can harm public health.
Without intervention, markets may fail to account for these externalities, leading to suboptimal outcomes where social costs exceed private costs. This creates a market failure, where the allocation of resources is inefficient and not socially optimal.
Pigou argued that to correct such market failures, the government must step in and internalize the externalities. The government can use taxation or subsidies to achieve this.
These are taxes levied on goods or activities that generate negative externalities (e.g., carbon emissions), equal to the cost of the externality. This incentivizes producers and consumers to reduce their harmful behavior, aligning private costs with social costs.
Pigou recommended that governments provide subsidies to encourage more beneficial activities, such as education and vaccination, when external benefits arise.
In summary, Pigou's theory of social welfare focuses on addressing externalities through government intervention to ensure that economic activities contribute to the broader welfare of society, rather than just individual gains.
Read more posts on Public Economics: https://commerceboost.in/category/economics/public-economics/
The Efficiency Wage Model suggests that firms may pay wages above the equilibrium level to increase productivity, reduce turnover, and improve worker morale.
Higher wages can incentivize workers to put in more effort, reduce shirking, and lower the costs of monitoring. This model can also explain involuntary unemployment, where higher wages lead to excess labor supply because firms hire fewer workers at above-market wages.
In conclusion, the Efficiency Wage Model helps explain how wages above the market rate can improve productivity, but it also has drawbacks, such as potential unemployment and increased firm costs.
Universal Applicability: The principles of management are applicable to all types and sizes of organizations.
General Guidelines: The principles are guidelines to action but do not provide readymade solutions to all managerial problems as the real business situations are very complex.
Formed by practice and experimentation: The principles of management are formed by the management experts through observation and tested through repeated experimentation.
Flexible: The principles of management are not rigid. They are flexible and can be modified by the manager as per the given situation so as to achieve the desired goals.
Mainly Behavioural: The principles of management aim at influencing behaviour of human beings in a desired manner.
Cause and effect relationships: The principles of management seek to establish relationship between cause and effect so that they can be used in similar situations.
Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time.
Provide managers with useful insights into real world: Principles of management help to provide managers with useful understanding of real-world situations, enable them to learn from past and solving problems quickly.
Optimum utilisation of resources: They ensure optimum utilisation of resources and effective administration as the principles focuses on scientific work and reduces personal biases.
Scientific Decisions: They facilitate scientific decision making as they emphasize on logical thinking rather than blind faith.
Helps in meeting changing environmental requirements: They help to meet the changing requirements of the environment to the best advantage of an organisation.
Social Responsibility: Principles of management also guide managers in fulfilling social responsibility of an organisation.
Basis for management training, education and research: Principles of management help in increasing knowledge which is used as the basis for management training, education and research.
Division of work: The work of an organisation should be divided into smaller jobs, called tasks. These tasks are then assigned to different individuals as per their ability, qualifications and experience. It leads to specialization, speed, efficiency and accuracy of work.
Discipline: It refers to the respect and obedience for rules and regulations of an organisation.
It is necessary for the systematic working of the organisation. It requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
Authority and Responsibility: There should always be a balance between the authority given and responsibility given to an employee.
This is because if authority is more than responsibility, the employees are likely to misuse it whereas if authority is less than responsibility, he/she will be unable to do the desired work.
Unity of command: An employee should receive order from only one superior at a time.
Unity of Direction: Each group of similar activities having the same objective must have one head and one plan.
Subordination of Individual Interest to General Interest: In all the situations, the interests of an organisation should take priority over the interests of any one individual employee.
Remuneration of employees: The overall pay and compensation should be fair to both employees and the organization.
The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company i.e. remuneration should be just and equitable.
Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralization.
There should be effective centralisation instead of complete centralisation or complete decentralisation.
Scalar Chain: All communication should pass from top to bottom and everyone should follow this official line of authority.
Gang Plank is exception to scalar chain and is used in the cases of emergencies. In gang plank, employees working at same level can communicate with each other.
Order: There should be proper arrangement of materials and people in an organisation.
Fayol has suggested social order (proper arrangement of people) and material order (proper arrangement of materials).
Equity: There should be no discrimination towards workers on any basis such as caste, creed, gender etc.
Stability of Personnel: The employees should be kept at their post for a minimum fixed time period. They should not be frequently transferred or changed from their job posts.
Initiative: Managers should encourage employees to give their suggestions in decision making process. Good suggestions given by the employees should be rewarded.
Espirit De Corps: The management should promote a team spirit among employees. A manager should replace 'I' with ‘We’ in all his conversations with workers.
SCIENTIFIC MANAGEMENT
Scientific Management:
Scientific Management means knowing exactly what you want your employees to do and seeing that they do it in the best and cheapest way.
Fredrick Winslow Taylor is known as the ‘Father of Scientific Management’.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
TAYLOR’S SCIENTIFIC MANAGEMENT:
Principles of Scientific Management:
Watch this short video on trick to remember Principles of Scientific Management:
1. Science, not rule of thumb: Work should be done in a planned and systematical manner and not on the basis of intuition or rule of thumb.
Taylor believed that there was only one best method to maximise efficiency which can be developed through study and analysis.
2. Harmony, not discord: There should be harmony between the management and workers.
Management should share the gains with the workers and at the same time workers should work hard to increase the output of organisation.
To reduce conflicts, complete mental revolution (change in thinking) on the part of workers and management is needed.
3. Cooperation, not individualism: There should be cooperation between workers and the management. Management should encourage the workers to give suggestions and the workers should avoid making unreasonable demands or going on strikes.
4. Development of everyone to his/her greatest efficiency: In order to increase efficiency, workers should be scientifically selected and the work should be assigned as per their capabilities. Further, they should be given training to increase their skills.
Techniques of Scientific Management
Watch this short video on trick to remember Techniques of Scientific Management -
Techniques of Scientific Management given by Taylor are as follows:
1. Functional foremanship: Taylor suggested functional foremanship through eight persons. Each worker will have to take order from eight foremen/supervisors. Taylor stressed on separating planning function from the execution function. Four foremen will be under planning in charge and other four will be under production in charge.
Under Planning in charge:
Instruction card clerk- preparing instructions for workers
Route clerk- specifying route of production
Time & cost clerk- preparing time & cost sheet
Disciplinarian- ensuring discipline
Under Production in charge:
Speed boss- timely and accurate completion of work.
Gang boss- keeping tools and machines ready for work by workers.
Repairs boss- ensuring proper working condition of tools and machines.
Inspector- checking quality of work.
2. Standardisation & Simplification of work:
Standardisation means setting standards.
Simplification means removing unnecessary types, sizes, varieties etc.
3. Method Study: Finding out one best way of doing the job.
4. Motion Study: Study of movements of employees and reducing/eliminating unnecessary movements.
5. Time Study: Determining the standard time to perform a job.
6. Fatigue Study: Determining duration and frequency of rest intervals.
7. Differential Piece Wage System: To differentiate between efficient and inefficient workers, Taylor has suggested a higher wage rate for efficient workers.
