✓ Board-verified
Business Studies · 2025 · 4 marks
CBSE 2025 · Region 2 · Set 1 · Q30
The demand for take away food business is increasing day-by-day. People working in multi-national companies have to work till night very often and…
The demand for take away food business is increasing
day-by-day. People working in multi-national companies
have to work till night very often and they are reluctant to
cook food. Taking advantage of this opportunity, Amit and
Bijoy started 'Langar', a take away food business. The food
became famous because of its good quality and standards of
hygiene followed by them.
Over the years, the business became very profitable. They
decided to expand the business by opening more branches
in different cities. To ensure consistent food quality at all
branches and to maintain the hygiene. and quality they
planned to import machines with advanced technology. The
cost of each machine was Rs. $\displaystyle 12$ crores. They knew that this
decision has to be taken very carefully, as it involves a huge
cost and that the decision, once taken is irreversible.
(i)
Identify and state the financial decision discussed in the
above para.
(ii)
Explain any two factors affecting the decision identified
in (i) above.
Marking-scheme solution
(i)
Investment decision/ Capital budgeting decision
The investment decision relates to how the firm’s funds are
invested in different assets so that they are able to earn the
highest possible return for their investors
(ii)
Factors affecting capital budgeting decision:
(a)
Cash flows of the project
(b)
Rate of return of the project
(c)
Investment criteria involved
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.