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Business Studies · 2026 · 1 mark
CBSE 2026 · Region 3 · Set 1 · Q17
Read the following statements carefully :
Statement I : Higher fixed operating costs result in higher business
risk.
Statement II : If the firm’s business risk is lower, the firm’s capacity to
use debt is higher.
In light of the given statements, choose the correct alternative from the
following :
Official answer
From CBSE’s own marking scheme for this paper.
(C)
Both Statement I and Statement II are true.
Marking-scheme solution
(C)
Both Statement I and Statement II are true.
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CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.