ISC Class 12 Specimen Paper 2024 Commerce

2024
SPECIMEN
PAPERS

COMMERCE
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Maximum Marks: 80
Time Allowed: Three Hours
(Candidates are allowed additional 15 minutes for only reading the paper.
They must NOT start writing during this time.)

Answer all questions in Section A, Section B and Section C.
Section A consists of objective / very short answer questions.
Section B consists of short answer questions.
Section C consists of long answer questions.
The intended marks for questions or parts of questions are given in brackets [ ].

SECTION A – 16 MARKS

Question 1

(i) ABC Company is hiring a new marketing manager. After reviewing the [1]
applications and resumes, the HR department shortlists five candidates who
possess the required qualifications and experience. What will be the next step
in the Selection Procedure?

(a) Conducting a skill test of the shortlisted candidates

(b) Checking the references provided by the shortlisted candidates

(c) Conducting a background check on the shortlisted candidates

(d) Conducting a panel interview with the shortlisted candidates

(ii) Which one of the following is an example of a ‘fair weather friend’? [1]

(a) Factoring

(b) Bank credit

(c) Trade credit

(d) Public deposits

1

(iii) The Companies Act and SEBI guidelines must be observed while raising [1]
funds from the public. Identify the factor of capital structure being referred
to in this case.

(a) Cost of financing

(b) Cash flow position

(c) Statutory requirements

(d) Capital market conditions

(iv) Which one of the following statements is correct about IMPS? [1]

(a) It allows instant money transfers only between bank accounts of the
same bank.

(b) It supports both mobile and internet-based money transfers.

(c) It is exclusively available for international money transfers.

(d) Transactions can only be initiated during banking hours.

(v) ‘Science not Rule of Thumb’ is a basic principle of F. W. Taylor’s theory, [1]
which states that:

(a) there should be healthy cooperation between employer and employees.

(b) there should be separation of planning from operational work.

(c) every job should be based on scientific study and analysis.

(d) working conditions must be standardised.

(vi) How has the increasing concern for environment and sustainability affected [1]
the consumer behaviour and trends?

(a) It has led to a rise in demand for eco-friendly products.

(b) Consumers have become insensitive towards environment.

(c) It has led to a decrease in the popularity of organic products.

(d) It has reduced corporate social responsibility.

2

(vii) State whether the following are True or False. [4]

(a) A Threat Analysis is an unfavourable condition in the Macro
environment.

(b) The purpose of Future market is to make profits out of fluctuations in
prices of products.

(c) A Supervisor does not act as a link between management and workers.

(d) Branding facilitates price control.

(viii) __________ is a principle where all the employees are encouraged to think [1]
out of box and execute the task in a better way.

(ix) __________ is a financial plan which states expected results of a given time [1]
period.
(x) Sometimes multinationals are forced to leave a country due to the stringent [1]
policy of the government. Which component of Macro Environment leads to
the departure of the multinational companies?

(xi) A consumer did not check the Woolmark certification mark on woollen [1]
clothes and purchased a sweater. Mention the responsibility of the consumer
which was overlooked by the consumer while purchasing the sweater.

(xii) Which function of management binds all other functions? [1]

(xiii) Assertion : Publicity is a very powerful tool of communication as it can make [1]
or ruin the image of a product.

Reason : Consumers perceive the medium carrying news about a product
as credible.

(a) Both Assertion and Reason are true, and Reason is the correct
explanation of Assertion.

(b) Both Assertion and Reason are true, but Reason is not the correct
explanation of Assertion.

(c) Assertion is true but Reason is False.

(d) Assertion is False but Reason is true.

3

SECTION B – 32 MARKS

Question 2 [4]

(i) Planning helps in achieving the objectives of the organisation by directing
resources and efforts towards the common objectives. In the light of this
statement, explain any four points on the importance of Planning.

OR

(ii) Delegation is the means by which managers assign a part of their jobs to other
employees and gives them the authority to perform the assigned task. Justify
this statement by providing any four advantages of delegation of authority.

Question 3 [4]
The needs of Fixed capital for a service industry are different from that of the
manufacturing industry. State any four reasons for this difference.

Question 4 [4]
A company has large undistributed profits which it wants to capitalise. Name and
explain the security which should be issued by the company.

Question 5 [4]
To which level of management does the Board of Directors belong? State any three
functions performed by it.

Question 6 [4]
Discuss the Unity of Command and Unity of Direction principles as given by Henry
Fayol.

Question 7 [4]
Mr. Raj, the CEO of a company, ‘tried to control everything in his organisation but
ended up controlling nothing’. Also, he did not focus on certain crucial areas like
productivity.

Briefly explain the two aspects of Controlling that were overlooked by Mr. Raj as
the CEO of the company.

4

Question 8
Mr. Akash purchased a car worth ₹ 55 lakhs. Just one month later, he met with an
accident. The airbags in the car did not deploy, and he was badly injured. His family
decided to seek redressal through the three-tier redressal machinery.

(i) Which judicial authority should be approached by the family to file the [1]
complaint?

(ii) Suggest two remedies available to the aggrieved party. [2]

(iii) Which other consumer court can be approached by the family of Mr. Akash if [1]
it is not satisfied with the judgement?

Question 9 [4]
(i) Discuss any four features of good packaging.

OR

(ii) Differentiate between marketing and selling.

SECTION C – 32 MARKS

Question 10

(i) Business Environment exercises tremendous influence on the working and [5]
success of business firms. Justify this statement by explaining any five benefits
of Business Environment.

(ii) State any three components of the Economic Environment. [3]

Question 11

(i) Equity shares constitute an important part of the share capital of the company. [5]
Yet they have some pros and cons in the business. Discuss any five
disadvantages of issuing equity shares.

(ii) Electronic banking is banking over the internet and is a part of virtual banking. [3]
In the light of this statement, state any three forms of electronic banking.

OR

5

(i) Preference shares are called hybrid securities in the capital market. Justify the [5]
statement by giving any three types of Preference shares.

(ii) Both RTGS and NEFT are secure but contrasting methods of transferring [3]
money electronically. In the light of this statement, give any three points of
differences between RTGS and NEFT.

Question 12

(i) Management is a human activity which directs and controls the organisation [5]
and operation of a business enterprise. In the light of this statement, explain
any five objectives of Management.

(ii) A company with a diversified product line has four product divisions, each [3]
specialised with physical facilities and human talents. Identify the
organisation’s structure and state its two advantages.

Question 13

Read the case given below and answer the questions that follow.

Madhubala is planning to launch an online education portal for students. In order to
understand the students’ requirements, she conducted an online survey. Based on the
feedback of the survey, she has decided to offer educational packages to the
prospective buyers. She has decided to conduct an entrance test and give up to 30%
off on tuition fees to the students scoring 95 marks and above in the entrance test.

(i) Give any two features of an online education portal as an intangible product. [2]

(ii) Which element of the promotion mix is used by Madhubala? [1]

(iii) Differentiate the element of promotion mix, identified in (ii), from [3]
Advertising.

(iv) State any two benefits of conducting an online survey with prospective buyers. [2]

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