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COMMERCIAL APPLICATIONS
Maximum Marks: 100
Time allowed: Two hours
1. Answers to this Paper must be written on the paper provided separately.
2. You will not be allowed to write during the first 15 minutes.
3. This time is to be spent in reading the question paper.
4. The time given at the head of this Paper is the time allowed for writing the answers.
5. Attempt all questions from Section A and any four questions from Section B.
6. The intended marks for questions or parts of questions are given in brackets[ ].
Instruction for the Supervising Examiner
Kindly read aloud the Instructions given above to all the candidates present in the
Examination Hall.
This paper consists of 11 printed pages and 1 blank page.
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SECTION A (40 Marks)
(Attempt all questions from this Section.)
Question 1 [20]
Choose the correct answers to the questions from the given options.
(Do not copy the questions. Write the correct answer only.)
(i) Which movement began as a protest against the construction of dams?
(a) Narmada Bachao Andolan
(b) Van Mahotsav
(c) Anandalya Movement
(d) National Awareness Movement
(ii) Identify which products are purchased after a comparative analysis of quality,
price, warranty of competitive brands.
(a) Convenience products
(b) Industrial products
(c) Speciality products
(d) Shopping products
(iii) ‘T-Group Training’ is also known as __________.
(a) Internship Training
(b) Vestibule Training
(c) Sensitivity Training
(d) Refresher Training
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(iv) Identify which of the following is NOT a direct cost in a cotton textile unit.
(a) Rent of the factory where production is being carried out.
(b) Expense incurred on advertisement to promote the sale of the finished
product.
(c) Colours used for dyeing the cotton fabric.
(d) Wages paid to the operators of sewing and spinning machines.
(v) With reference to the Dual Aspect Principle identify the correct option:
(a) Assets = Capital – Liabilities
(b) Liabilities = Assets + Capital
(c) Capital = Assets + Liabilities
(d) Capital = Assets – Liabilities
(vi) __________ records all cash transactions whether they belong to the current year,
previous year or future year.
(a) Profit & Loss Account
(b) Income & Expenditure Account
(c) Receipts & Payments Account
(d) Personal Account
(vii) Which of the following statement best describes Selection?
(a) It is a positive process.
(b) It is the first stage of hiring.
(c) It succeeds recruitment.
(d) It encourages people to apply for the job.
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(viii) Direct selling, as a channel of distribution, has become popular due to the
_________.
(a) availability of expert services of middlemen
(b) concentrated markets
(c) relief from the problem of distribution
(d) increasing cost of distribution
(ix) The process of __________ comes to an end with the delivery of product to the
customers.
(a) advertising
(b) marketing
(c) selling
(d) public relations
(x) With reference to the ‘Cost Plus Pricing’, which statement(s) is/are correct?
1. Selling price of the product must cover full cost.
2. Selling price must cover full cost and yield a reasonable margin of profit.
3. Selling price should be high to get more profit.
4. Selling price should be low, so cost could be covered.
(a) 1 & 3 are correct
(b) 2 & 3 are correct
(c) 1 & 4 are correct
(d) Only 2 is correct
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(xi) With reference to Savings Deposit Account, which statement is correct?
(a) Depositors need to deposit a specific amount every month.
(b) There are restrictions on number of withdrawals in a week.
(c) Overdraft facility is available.
(d) There are restrictions on the number of deposits that can be made in a week.
(xii) __________ is the only weapon of reasoning and understanding in a civilised
society.
(a) Dialogue
(b) Human Relation
(c) Persuasion
(d) Empathy
(xiii) Production-Oriented-Stage was characterised by:
(a) the focus on Sales Promotion.
(b) product improvement.
(c) supply creating its own demand.
(d) profits through customer satisfaction.
(xiv) Under which Right of Consumer Protection Act 1986, fair settlement and genuine
grievances of customers were addressed?
(a) Right to Safety
(b) Right to be Heard
(c) Right to Seek Redressal
(d) Right to Consumer Education
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(xv) India’s foreign exchange reserves climbed to a record of $651.5 billion by the
end of last week demonstrating resilience despite uncertain geopolitics.
Source: The Economic Times, Kolkata, dated 6th June 2024
With reference to the above, name the institution that is authorised to monitor
such reserves in our country.
(a) Central Bank of India
(b) State Bank of India
(c) Citi Bank
(d) Indian Bank
(xvi) __________ is a method of training, used in technical trades and crafts, in which
a long period is required to become proficient.
(a) Under study
(b) Job rotation
(c) Mentoring
(d) Apprenticeship
(xvii) Assertion (A): Parity Pricing is the most logical strategy when it is very
difficult to calculate the cost of the products.
Reason (R): When price leadership is well established, setting price
according to the competitors is the safest policy.
(a) (A) is true and (R) is false.
(b) Both (A) and (R) are true and (R) is the correct explanation of (A).
(c) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(d) Both (A) and (R) are false.
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(xviii) Mr. Ajay, an executive of an organisation, should undergo which of the following
methods of training to learn from the board of directors, how they take decisions,
interact with each other and develop problem solving skills?
(a) Job rotation
(b) Under study
(c) Committee Membership
(d) Apprenticeship Training
(xix) Companies like Amul and Colgate have well established markets in India. Their
advertisement is still a regular feature in multiple newspapers and television
channels. Such advertisements can be classified as:
1. Concept advertisement
2. Reminder advertisement
3. Institutional advertisement
4. Product advertisement
(a) 1 and 2
(b) 2 and 3
(c) 3 and 4
(d) 2 and 4
(xx) Comprehensive function of Human Resource Management is not concerned with
managing all types of people at each level.
(a) True
(b) False
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Question 2 [10]
Answer the following questions:
(i) Distinguish between:
(a) Skimming pricing and Penetrating pricing
(b) Overdraft and Cash Credit
(ii) Justify the following sentences For or Against and give a reason:
(a) Walk-in interview is a direct method of recruitment.
(b) There are certain costs which are neither totally fixed nor fully variable.
(c) Newspapers and tea are purchased with special efforts.
Question 3
Answer the following questions: [10]
(i) What is meant by Human Resource Management?
(ii) Explain the concept of The Matching Principle.
(iii) Discuss any two R’s with respect to environmental values and ethics.
(iv) List any four elements of Promotion Mix.
(v) Name and explain the method used for selling standardised goods.
SECTION B (60 Marks)
(Answer any four questions from this Section.)
Question 4
(i) What is direct selling? Discuss its latest method. [5]
(ii) Discuss any two agency functions of Commercial Banks. [5]
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(iii) Ms. Asha started a cosmetic business and tried to develop a positive image of her [5]
brand product towards her customers. With reference to this, explain any two
methods of Brand Promotion implemented by Ms. Asha to increase brand loyalty
among her customers.
Question 5
(i) Public Relations help to inform, educate and persuade media. Write any five [5]
points to explain the scope of Public Relations.
(ii) Explain the uses of Income and Expenditure Account. [5]
(iii) Study the pictures given below and describe the movement. [5]
Question 6
(i) Identify the highlighted ‘C’ stage of the Product Life Cycle given in the image [5]
below and specify its any four features.
Sales & Profit
A B C D E
Time
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(ii) On what basis of distinction is Fixed cost differentiated from Variable cost? [5]
(iii) What is meant by Compensation Function of Human Resource Management? [5]
Explain its activities.
Question 7
(i) Discuss any two types of Interviews. [5]
(ii) Explain any five features of Personal Selling. [5]
(iii) Write short notes on: [5]
(a) The Business Entity Concept
(b) The Going Concern Concept
Question 8
(i) Acid rain is essentially an outcome of aggressive industrialisation in the [5]
developed countries.
In view of the above statement explain any two impacts of Acid Rain on the
environment.
(ii) Give any five differences between Cheque and Bank Draft. [5]
(iii) Write short notes on: [5]
(a) Informative Advertising
(b) Automated Teller Machine
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Question 9
CASE STUDY
With the advancement in technology and the goal to scale its business, JK Tyre &
Industries has been working on a two-pronged strategy to add ‘significant relevance’ to
its overall business. Along with the mainstream tyres, the Delhi based company is also
running a fleet operating management business and a mobility business vertical.
“In the fleet management business, from selling a tyre as a commodity, it becomes a kind
of service. We have tied up with 1300 of the 1800 large fleets across India. We provide all
the services and the customer pays for the tyre’s upfront cost.” Anuj Kathuria, India
President, JK Tyres, said. Any fleet of 100 trucks/buses, or more, is considered a ‘large
fleet’.
An initiative like the fleet management service also contributes to sustained relationship
with customers, leading to repeat purchases of tyres by them. The customer base of 1300
fleet operators hasn’t come easily for JK Tyres, an early mover with such a business
intervention in the industry. The customer base has been built over the past two decades.
Under the fleet management business, JK Tyres is also offering tyre-as-a-service. It has
about 250 pit stops, and close to 100 truck wheel centres, where its services are provided.
The company, which has also developed a tyre with 80% biodegradable materials, says
that the ‘green tyre’ is close to a market launch. The tyre major has a target to achieve net
zero emissions by 2050.
— auto.economictimes.indiatimes.com, February 9, 2024.
With reference to the above case study answer the following questions:
(i) Analyse the above case study and give any five differences between Product and [5]
Service.
(ii) Explain how ‘Industrialisation’ and ‘Transport’ cause ecological damage. [5]
(iii) (a) Mention any three steps taken by the President of JK Tyres to contribute [5]
sustained relationship with customer.
(b) Describe any two steps taken by JK Tyres to develop as a part of fleet
management business.
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