ISC Class 12 Competency Based Questions (CBQ) Commerce

0

PREFACE

With a growing emphasis on competency-based education globally, the educational landscape
in India has also steered towards high-quality learning experiences that allow learners to
incorporate critical thinking and problem-solving approaches. This approach goes beyond rote
memorisation and focuses on developing the skills and knowledge that students need to apply
in their real-world scenarios.
The Council for the Indian School Certificate Examinations (CISCE), as a national-level
progressive examination board, has taken several steps to infuse competency-based education
in CISCE schools through teacher capacity-building on item development for competency-
based assessments and the incorporation of competency-focused questions at the ICSE and ISC
levels from the examination year 2024.
To further facilitate the adoption of competency-based assessment practices in schools and to
support teachers and students towards the preparation for attempting higher-order thinking
questions in future board examinations, Item Banks of Competency-Focused Practice
Questions for selected subjects at the ICSE and ISC levels have been developed. This Item
Bank consists of a rich variety of questions, both objective and subjective in categories, aimed
at enhancing the subject-specific critical and analytical thinking skills of the students.
In this Item Bank, each question is accompanied by the topic and cognitive learning domain/s
that it intends to capture. The cognitive domains reflected in these questions include
understanding, analysis, application, evaluation and creativity, along with some questions of
the higher-order recall domain. The Answer Key at the end presents the possible answers to a
given question, but it is neither limiting nor exhaustive.
These practice questions are also meant to serve as teacher resources for classroom assignments
and as samplers to develop their own repository of competency-focused questions. Apart from
offering a good practice of higher-order thinking skills, engaging with these questions would
allow students to gauge their own subject competencies and use these assessments for learning
to develop individual learning pathways.
During the development of this Item Bank, a large pool of questions was prepared by a team
of experienced CISCE teachers. The questions that were finalised by the internal and external
reviewers as being higher-order competency-focused questions have been collated in this item
bank.
I acknowledge and appreciate all the ICSE and the ISC subject matter experts who have
contributed to the development and review of these high-quality competency-focused questions
for CISCE students.
We are hopeful that teachers and students will utilise these questions to support their
teaching-learning processes.

August 2024 Dr. Joseph Emmanuel
Chief Executive & Secretary
CISCE

Commerce ISC-Class XII

Table of Contents

S.No. Types of Questions Page Nos.

I. Multiple Choice Questions (MCQs) 1-8

II. Assertion-Reason Questions 9-10

III. Very Short Answer Questions 11-14

IV. Fill in the Blanks 15

V. Short Answer Questions 16-18

VI. Long Answer Questions 19-21

Answer Key 22-27

ISC Competency-Focused Practice Questions

Commerce ISC-Class XII

COMPETENCY-FOCUSED PRACTICE QUESTIONS

ISC-CLASS XII

Commerce

I: Multiple Choice Questions (1 Mark Each)

S.No. Questions

1. [Capital Structure]
Trading on equity is the ratio of equity to debt. When will be the company trading on
thin equity?
(a) When the proportion of debt is high.
(b) When the proportion of debt is low.
(c) When the proportion of equity is high.
(d) When the proportion of equity is low.
(Application)

2. [Financing]
To which of the following options, the right of pre-emption is available?
(a) Debenture holders
(b) Financial institutions.
(c) Existing shareholders.
(d) Trade debtors. (Application)

3. [Types of Preference Shares]
The preference shares on which the holders are entitled to participate in the residual
profits of the company in addition to their normal rate of dividend. Select from the
following the appropriate preference shares.
(a) Redeemable preference shares.
(b) Participating preference shares.
(c) Cumulative preference shares.
(d) Convertible preference shares. (Application)

ISC Competency-Focused Practice Questions 1

Commerce ISC-Class XII

S.No. Questions

4. [SWOT Analysis]
The turnover of the product has increased as it is of a superior quality. Which of the
following reflects the firm’s aspect?
(a) Strength
(b) Weakness
(c) Opportunity
(d) Threat (Application)

5. [Management Features]
Management draws knowledge from various fields such as Economics, Sociology,
Psychology, etc. It applies this knowledge to secure the desired results. Identify the
management feature highlighted in the above sentence.
(a) Distinct entity
(b) Integrating force
(c) Multi-disciplinary
(d) Universal (Recall)

6. [Types of Organisation Structure]

Identify the type of organisation structure depicted in the above figure.
(a) Divisional structure
(b) Functional structure
(c) Informal structure
(d) Matrix structure (Application)

7. [Management –Concept of Management]
Which of the statements given below BEST describes Management as a discipline?
(a) It is a systematised body of knowledge.
(b) It means obedience to rules in the organisation.
(c) It means an order in the organisation.
(d) It refers to equity in the organisation. (Recall)

ISC Competency-Focused Practice Questions 2

Commerce ISC-Class XII

S.No. Questions

8. [Coordination]

(Source: theintactone.com)
Choose the statement BEST described by the above diagram.
(a) Planning is the primary function of management.
(b) Planning and controlling are closely interrelated.
(c) Coordination is the centralised function of management.
(d) Coordination is inherent in all functions of management. (Analysis)

9. [Steps in Controlling]
In a Multinational Corporation (MNC), the Finance Manager pays more attention to an
increase of 3% in the marketing cost as compared to a 15% increase in the courier
expenses. Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) Span of control (Application)

10. [Types of Training]
Miners must learn emergency evacuation procedures, equipment handling and hazard
mitigation. Identify the type of training which should be given to the miners.

(a) Safety training
(b) Job training
(c) Refresher training
(d) Remedial training (Analysis)

ISC Competency-Focused Practice Questions 3

Commerce ISC-Class XII

S.No. Questions

11. [Types of Training]
The hospital purchases new equipment and machinery for its intensive care unit. What
type of training must be given to the nursing staff?
(a) Safety training
(b) Job training
(c) Refresher training
(d) Remedial training (Analysis)

12. [Objectives of Sales Promotion]
Ana specializes in making Christmas decorations & ornaments. She announces a
discount of 15% just before Christmas. Identify the potential reason for offering such a
discount.
(a) To clear old stocks.
(b) To generate demand during the off-season.
(c) To increase immediate sales.
(d) To enhance the goodwill of the firm. (Application)

13. [Types of Products and Services]
Which of the following CANNOT be marketed?

(a) Red Cross Society persuading the public to donate blood.
(b) Gujarat tourism persuades people to visit the state.
(c) Political parties campaigning for a particular candidate.
(d) Counterfeit products. (Analysis)

14. [Promotion Mix]
In the case of a small number of buyers who are concentrated in one place, ___________
mode of promotion is the most suitable.

(a) advertising
(b) sales promotion
(c) personal selling
(d) publicity (Analysis)

15. [Banking-Latest Trends]
Regarding Real Time Gross Settlement (RTGS), which of the following statement is
INCORRECT:
(a) RTGS facility is provided by Core Banking Solution (CBS) enabled bank branches.
(b) RTGS transactions are settled in batches.
(c) The minimum amount in an RTGS transaction is ₹2 lacs.
(d) The transfer is final and irrevocable. (Recall)

ISC Competency-Focused Practice Questions 4

Commerce ISC-Class XII

S.No. Questions

16. [Working Capital]
Net working capital is denoted as an excess of:
(a) current assets over current liabilities.
(b) current liabilities over current assets.
(c) fixed assets over current liabilities.
(d) non-current liabilities over current assets. (Recall)

17. [Business Environment]
A well-motivated and efficient employee helps a business to effectively and efficiently
achieve its objectives. Which internal factor influencing the business organisation is
highlighted in the above statement?
(a) Mission and Objectives
(b) Organisational Structure
(c) Human Resources
(d) Management Structure (Analysis)

18. [Banking- Latest Trends]
Which of the following is NOT a feature of E-banking?
(a) There is face-to-face contact in person between the bank and the client.
(b) Both the bank and the client need an electronic gadget.
(c) The client must choose to use the e-banking option for his/her bank account.
(d) The bank staff and the client must understand e-banking technology. (Recall)

19. [Banking- Latest Trends]
A bank informs its account holders regarding any transaction that has taken place from
their account through which of the following way?
(a) Short Messages Services (SMS)
(b) Core Banking Solution (CBS)
(c) Know Your Customer (KYC)
(d) Automated Teller Machine (ATM) (Understanding)

20. [Limitations of Planning]
Choose one statement that BEST describes the limitation of planning.
(a) A sudden change in market conditions can render a carefully crafted plan ineffective.
(b) Planning involves logical deduction based on data collected in market research.
(c) If there is only one possible alternative, there is no need for planning.
(d) Planning is a never-ending exercise. (Analysis)

ISC Competency-Focused Practice Questions 5

Commerce ISC-Class XII

S.No. Questions

21. [Steps in Organising]
Karun has joined as a Media in-charge in an entertainment company. He always ensures
that the work has been divided into small and manageable activities and that activities
of similar nature are grouped. Identify the related step in the organising process being
mentioned in the above lines.
(a) Identification and division of work.
(b) Departmentalisation
(c) Assignment of duties.
(d) Establishing reporting relationships. (Analysis)

22. [Buying & Assembling]
Which of the following is NOT a mode of purchase or buying of goods?
(a) Purchase through inspection.
(b) Purchase by description.
(c) Purchase by grade.
(d) Purchase by standards. (Recall)

23. [Bonus Issue]
Why does a company issue Bonus Shares?
(a) To raise funds from new investors in the stock market.
(b) To capitalise undistributed profits.
(c) To attract venture capitalists for expansion.
(d) To repurchase shares from the stock market. (Analysis)

24. [Source of Finance]
Which of the following is NOT a source of finance for a sole trader?
(a) Owner’s contribution
(b) Retained profit
(c) Loan from a commercial bank
(d) Public deposits (Analysis)

25. [Fixed and Working Capital]
X Ltd., a multinational company, wants to diversify its production line for which more
machinery and equipment is required. Which of the following describes its requirement?
(a) Fixed capital will be more.
(b) Working capital will be more.
(c) Both will be needed in a fixed proportion.
(d) No additional capital will be needed. (Application)

ISC Competency-Focused Practice Questions 6

Commerce ISC-Class XII

S.No. Questions

26. [Banking- Latest Trends]

Savi, a business owner wants to transfer Rs. 4,00,000 immediately to his supplier for the
payment of raw materials. Which of the following is the quickest way of transferring
money to the bank account of the supplier?
(a) Automated Teller Machine (ATM)
(b) Real Time Gross Settlement (RTGS)
(c) National Electronic Fund Transfer (NEFT)
(d) Bank Draft (Application)

27. [Principles of Management]
Tanu runs a handloom shop in her hometown. She has employed 10 people in her shop.
Whenever it comes to settling conflicts among her employees, Tanu is more biased
towards her female employees.
Identify the principle of management being violated by Tanu.
(a) Scalar chain
(b) Order
(c) Equity
(d) Esprit de Corps (Application)

28. [Rights of a Consumer]
Avni purchased a face serum from a well-known cosmetic brand. She refrigerated the
face serum to make it cold and then applied it to her face. Avni developed rashes all over
her face. The label did not provide any instructions about the storage of the product.
Which right of the consumer is violated in the above case?

(a) Right to be heard
(b) Right to be informed
(c) Right to safety
(d) Right to seek redressal (Application)

ISC Competency-Focused Practice Questions 7

Commerce ISC-Class XII

S.No. Questions

29. [Induction Training]
Digitising the Internship Experience

“At Samsung, the health of our employees, partners, vendors, and colleagues is of utmost
importance. The human resources team was quick to analyse the situation of the
pandemic and arrived at the decision to focus on remote working and social distancing
much earlier,” shared Wadhawan.
The program was initiated in early April and a steady stream of communication has been
maintained with interns ever since to ensure there are no ambiguities or concerns.
The HR and IT teams shouldered this task and worked round-the-clock to provide
corporate coordinates and software solutions. The HR team took care of the
documentation and other mandatory steps while the IT and information security team-
maintained data sanctity and platform support.
With technological agility, Samsung utilized its existing platforms to expand its
capabilities and encouraged interns to work from their base locations. The project and
team details were shared before the commencement of the program with the interns to
align their expectations. “Our IT teams pulled all the stops to make this a successful
venture with regular assistance. To make this onboarding seamless and smooth, each
intern was assigned a dedicated buddy to handhold them in their journey along with their
guides and mentors,” shared Wadhawan.

Source (edited): https://www.peoplematters.in/article/employee-engagement/samsung-
case-study-digitizing-the-internship-experience-25712
Based on the above excerpt, read the statements about Internship training and choose
the correct option.

Statement I – It is conducted only for new staff.
Statement II – It must always be held online.
Statement III – It helps in developing a sense of belonging.
Statement IV – It helps in the smooth initiation of the employee in the company.

(a) Only Statement II is correct.
(b) Statements I, and II are correct.
(c) Statements I, III, and IV are correct.
(d) Statements II, III, and IV are correct.
(Analysis)

ISC Competency-Focused Practice Questions 8

Commerce ISC-Class XII

II. Assertion-Reason Questions (1 Mark Each)

The questions in this section have two statements marked Assertion and Reason. Read both the
statements carefully and choose the correct option.

S.No. Questions

30. [Business Environment]
Assertion (A): Internal factors are considered controllable because the enterprise has
control over these factors.
Reason (R): An enterprise may not sometimes have complete control over all the internal
factors.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, and R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

31. [Banking-Latest Trends]
Assertion (A): The bank draft is always payable on demand.
Reason (R): There is a risk of dishonour of a bank draft.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
(Understanding)
32. [Features of Management]
Assertion (A): Management is a social process.
Reason (R): Management process consists of planning, organising, staffing, directing, and
controlling functions.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false
(d) A is false, but R is true. (Analysis)

ISC Competency-Focused Practice Questions 9

Commerce ISC-Class XII

S.No. Questions

33. [Importance of Staffing]
Assertion (A): Without staffing, the success of the organisation is not possible.
Reason (R): Staffing helps to maximise the contributions of people in the organisation.

(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

34. [Features of Advertising]
Assertion (A): Advertising is a form of mass communication.
Reason (R): Advertisements can reach a large number of people simultaneously.
(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

ISC Competency-Focused Practice Questions 10

Commerce ISC-Class XII

III: Very Short Answer Questions (1 Mark Each)

S.No. Questions

35. [Short Term Finance]
Rohan wants to avail an overdraft facility against his savings account from his bank. Will
the bank allow him to use this facility? Justify your answer. (Analysis)
36. [Banking-Latest Trends]
Priya opens a bank account and gets a Unique Customer ID from the bank. Now, Priya can
operate the same account in all the branches of the same bank anywhere across the country.
Which funds transfer facility can she use to transfer three lakhs from this bank account?
(Application)

37. [Banking-Latest Trends]
Ekrit is a college student who wants to store and manage her payment information on the
mobile phone. To use her funds digitally and eliminate the need to carry physical currency
or cards, she is looking for a suitable digital substitute that can be linked with her bank
account to make day-to-day payments.
Suggest the best digital application to fulfil Ekrit’s banking needs. (Application)

38. [Levels of Management]
Mehreen and Drishit are friends who work in the same company. Mehreen manages clerical
staff whereas Drishit leads a team of executives.
At which level of management is Mehreen working in the company? (Application)

39. [Types of Plans]

Identify the type of plan depicted in the above picture.
(Analysis)

ISC Competency-Focused Practice Questions 11

Commerce ISC-Class XII

S.No. Questions

40. [Span of Control]

What is the span of control of the Chief Executive Officer (CEO) in the given organization
chart?
(Analysis)
41. [Qualities of a Good Leader]
One of the objectives set by top management is to expand the market share of the company.
Sarah, who is the marketing head, conducts market research in consultation with various
stakeholders and through Strengths, Weaknesses, Opportunities, and Threats (SWOT)
analysis makes a well-informed judgment to enter new markets. She provides a clear
rationale regarding the implementation of her plans.
Which quality of Sarah as a leader is highlighted in the above case? (Analysis)

42. [Barriers to Communication]
In a fast-paced office environment having strict hierarchical structures, employees working
at low-level management hesitate to voice their ideas and opinions.
Which barrier to communication is faced by junior employees? (Recall)

43. [Sources of Recruitment]
A construction firm is facing a surge in demand in metropolitan areas. It lacks the capacity
to recruit and manage a large workforce directly.
Which source of external recruitment would be suitable for them?
(Analysis)

ISC Competency-Focused Practice Questions 12

Commerce ISC-Class XII

S.No. Questions

44. [Marketing Concepts]

Iconic Inc., a clothing brand, launched a new line of sustainable apparel. They decided to
discontinue the clothing line which was not appealing to their customers. Identify the
marketing function undertaken by Iconic Inc. (Application)

45. [Banking-Latest Trends]
A trader wants to transfer funds electronically by scanning a Quick Response (QR) code.
Which online banking facility should be used by him?
(Understanding)

46. [Concept of Delegation]
Mannat, the Chief Executive Officer (CEO) of a company, has retained all the decision-
making power with himself. He provides instructions to the department heads, who in turn
delegate tasks to their subordinates.
Identify the concept of authority being practiced by Mannat from the above case.
(Application)

47. [Sources of Recruitment]
Fitness Frenzy, a gym is looking for instructors to work full-time. They are open to hiring
fresh local talent.
Choose the BEST source of recruitment for Fitness Frenzy. (Application)

48. [Steps in Controlling]
Yash runs an event management company. The Event in-charge is expected to submit a
report to the Event Manager on the completion of the event. Identify the step in the
controlling process being described in the above lines. (Application)

49. [Channels of Distribution]
In the luxury furniture industry, a manufacturer sells his/her products to customers through
exclusive showrooms and an online store. What type of distribution channel does this
manufacturer implement? (Application)

50. [Types of Working Capital]
During the COVID-19 lockdown, firms with adequate working capital were in a better
position to withstand disruptions and other financial challenges.
In light of the above statement, name the type of working capital these businesses
maintained. (Application)

51. [Types of Debentures]
Which type of debentures allows investors to receive the principal amount back at the end
of the specified period? (Recall)

ISC Competency-Focused Practice Questions 13

Commerce ISC-Class XII

S.No. Questions

52. [Unity of Command]
The production manager of ABC Ltd. instructs a salesman to go slow in selling the product
while the marketing manager is insisting on fast selling to reach the target. Which principle
of management is violated in this case? (Application)

53. [Long-Term Sources of Finance]
Sakia is a first-time investor wanting to invest ₹10 lakhs for long-term capital appreciation.
She is willing to take risks in return for high growth.
Suggest which type of financial security should she invest in. (Application)

54. [Rights of a Consumer]
Aaradhya had paid the full price of the plot as per the terms and conditions of the allotment
letter. She was not given possession of the plot by the builder; hence, she filed a case in the
State Capacity Development Resource Centre (CDRC).
Name the right of the consumer being exercised by Aradhya. (Analysis)

55. [Features of Business Environment]
Firecrackers are more in demand during the festival of Diwali as compared to other festivals
in India. Identify a feature of the Business Environment highlighted above.
(Analysis)

ISC Competency-Focused Practice Questions 14

Commerce ISC-Class XII

IV. Fill in the Blanks (1 Mark Each)

S.No. Questions

56. [Coordination]
In ________________ function of management, there should be coordination between the
master plan of the enterprise and the plans of different departments. (Understanding)

57. [Banking-Latest Trends]

______________ is a unique 7-digit number issued by banks to their customers used for
making instant payments and fund transfers through Immediate Payment Services (IMPS).

(Understanding)
58. [Consumer Protection]
_____________ is a wing set up by the government where an aggrieved consumer can
directly present his grievance. (Understanding)
59. [Functions of Marketing]
___________ refers to procuring goods from different places and collecting them at a central
point. (Understanding)

60. [Steps in Staffing]
______________ a step in the staffing process which will help in building competent and
satisfied workforce. (Understanding)

61. [Controlling]
Under _____________ concept, management must confine their attention to critical
deviations at their level. (Understanding)

62. [SWOT Analysis]
__________ is a systematic approach to understand the business environment.
(Understanding)

63. [Levels of Management]
________ level of management comprises of sales officers, purchase officers, etc.
(Understanding)

64. [Importance of Finance]
Finance bridges the gap between ____________________and sales.
(Understanding)

ISC Competency-Focused Practice Questions 15

Commerce ISC-Class XII

V. Short Answer Questions (4 Marks Each)

S.No. Questions
65. [Banking-Latest Trends]
Sparsh wants to transfer funds instantly to his brother in real-time through mobile or
internet banking.
In light of the above statement, answer the following.
(a) Name the service Sparsh can use to remit funds to his brother.
(b) Give three features of the service mentioned in (a) above.
(Understanding)

66. [Sources of Finance]
X Ltd., a non-banking company accepted deposits of money from the public for buying
raw materials.
Name the short-term source of finance availed by X Ltd. State any three advantages of this
source. (Understanding)

67. [Banking-Latest Trends]
Deepak, a holder of both the debit and credit cards issued by a bank, wants to purchase
goods. He would like to make the payment at a later date.

(a) Which one of the two cards can he use?
(b) Give three differences between the debit and the credit card.
(Understanding)

68. [Business Environment]
The youth of today use online methods of shopping, whereas the older generation prefers
traditional shopping methods.

(a) Which element of the macro environment is being referred to here?
(b) State any three components of the elements mentioned in (a) above. (Application)

69. [Sources of Finance]
Based on the security of investment, debentures are of two types. Name and explain the
above types of debentures. (Recall)

ISC Competency-Focused Practice Questions 16

Commerce ISC-Class XII

S.No. Questions
70. [Principles of Management]

Source: geeksforgeeks.org
‘Company A’ follows a particular principle of management given by Henri Fayol while
‘Company B’ does not follow it.
Based on the above statement, answer the questions that follow.
(a) Identify the principle of management.
(b) Explain the principle as identified in (a).
(c) State any two adverse effects of violating the principle as identified in (a).
(Recall, Analysis & Application)

71. [Types of Plans]
“Tata Consultancy Services (TCS) has announced that it will link hikes and variable
payouts to compliance with its recent return-to-office (RTO) mandate. Unit heads have
communicated to their teams that grades, necessary for promotions, will be based on their
track record of working from the office, a Times of India (TOI) report stated.”
Source(edited): https://shorturl.at/MfUhf
Based on the above report, answer the questions that follow.
(a) Identify the type of plan being highlighted in the above paragraph.
(b) Explain any three features of the plan as identified in (a).
(Recall & Application)

ISC Competency-Focused Practice Questions 17

Commerce ISC-Class XII

S.No. Questions
72. [Inter-relationship between Planning and Controlling]

Interpret and evaluate the relationship between Planning and Controlling in the context of
the above diagram. (Application)

73. [Factors determining Price]

The pricing strategies of Amul include a combination of competitive and low-cost pricing.
Amul began with the vision to provide the best quality dairy products at affordable prices.
The pricing of different products is taken into account by different factors such as the price
of raw materials, labour cost, farmer’s profit, transportation cost, and storage costs.
Amul is pursuing a low-cost strategy for products commonly used like milk, ghee, butter,
and so on, where they offer these products at a lower price than their competitors. For
products like Amulspray, Prolite, condensed milk, and more the company adheres to a
competitive pricing strategy, where the price of these products is similar to their
competitors.
However, Amul also offers value packs and discounts to make its products more affordable
for consumers.
(Source: https://iide.co/case-studies/marketing-mix-of-amul/ )
For the above case, explain each two internal factors and external factors that influence
price determination.
(Understanding)

ISC Competency-Focused Practice Questions 18

Commerce ISC-Class XII

VI: Long Answer Questions (8 Marks Each)

S.No. Questions

74. [Principles of Management]
Raman and Aman are pursuing a Master of Business Administration (MBA) in a reputed
college. Raman has the opinion that management is required in all kinds of
organisations. However, Aman feels that management is not required in non-business
organisations such as hospitals, schools, clubs, etc.
(a) In this situation, who is correct - Raman or Aman?
(b) Justify the answer in (a) by explaining the relevant feature of management.
(c) Explain any five fundamental reasons justifying the need for principles of
management. (Recall, Analysis & Evaluate)

75. [Maslow’s Theory on Motivation]
Based on Maslow’s Theory of Motivation, answer the questions that follow with a brief
description of the relevant needs in the given context.

(a) Imagine you are a manager in a company where some employees are struggling to
make ends meet financially. Which need of theirs would you address to ensure they
feel motivated at work? Explain this need.
(b) You are a coach of a sports team, and your athletes are very happy after winning a
match. Explain the satisfied need.
(c) In a workplace, where employees work individually and are constantly under stress
to meet tight deadlines and heavy workloads. Which need given in Maslow’s theory
can be applied to promote a healthy work environment and teamwork. Explain this
need.
(d) Due to the changing business environment, demand for the company’s products is
declining and workers feel insecure about their jobs. Identify and explain the needs
of workers in the above situation. (Create)

ISC Competency-Focused Practice Questions 19

Commerce ISC-Class XII

S.No. Questions

76. [Meaning of Complaint]

Case 1 - Raghav, an individual purchased an air ticket from Comfortable Flying Ltd. for
travelling from Mumbai to Delhi. The flight was scheduled to depart at 6 pm. The
boarding doors were closed at 5.35 pm. The flight ticket mentions that the boarding
doors will be closed 25 minutes before the departure.
Raghav had reached the airport at 3 pm and since he had a lot of time, he thought about
taking a nap. He missed the final call made at the airport and when he woke up it was
5.50 pm. He rushed to the boarding gate but was not allowed to board.
Mr. Raghav wants to sue the company Comfortable Flying Ltd. under the Consumer
Protection Act, 2019 for not allowing him to board though the flight had not left.

Case 2 - Ms. Safar has undertaken a contract with Trip Planners Ltd. for a term of five
years. Her package includes hotels of four-star and above categories.
Ms. Safar on her first trip finds that the hotel provided to her is not a four-star hotel.
There were termites in the hotel room. She gets her hotel changed and the new hotel
allotted to her does not provide her quality food.

Case 3 - Ms. Sweety buys a packet of chips from a shop. She doesn’t check the expiry
date mentioned on the packet of chips.

Based on the above situations, answer the questions that follow.
(a) Will Raghav’s (Case 1) complaint be considered valid? Justify.
(b) As an aggrieved consumer, state any three appropriate remedies available to Ms.
Safar (Case 2).
(c) Is Ms. Sweety (Case 3) a responsible customer? Give a reason for your answer.
(d) Explain any other two responsibilities of Ms. Sweety (Case 3) as a consumer.
(Application)

ISC Competency-Focused Practice Questions 20

Commerce ISC-Class XII

S.No. Questions

77. [Types of Plans]
"After an in-depth analysis of pilot rosters, fatigue-related reports, and direct feedback
from pilots, we have introduced revised ‘Flight Duty Time Limitations’ (FDTL)
regulations that include increased rest periods, redefining night duty and regular fatigue
reports to be shared by airlines." tweeted civil aviation minister, Jyotiraditya Scindia.

Source(edited): https://theprint.in/india/1915214/1915214/

Answer the questions that follow.

(a) A type of plan which provides no scope for discretion is highlighted in the above
paragraph. Identify the type of plan.
(b) State any two features of the plan as identified in (a).
(c) Explain ‘feedback’ as one of the steps of the communication process.
(d) Describe any four objectives of communication.

(Application & Recall)

78. [Banking Latest Trends]
Govind Lal Sharma held a Pension account in a bank. He was also issued an ATM card
for the account.
Sharma received a call from an unidentified number informing him of daily debits of
₹40,000 from his account for 9 days.
He was surprised as he had not received any SMS messages regarding the transactions.
The following day, on visiting the branch with his ATM card and passbook, he
discovered the illegal withdrawal of money from his account.
Source(edited): https://timesofindia.indiatimes.com/city/mumbai/bank-liable-for-fraud-
atm-withdrawals-latest-news/articleshow/107808995.cms
Answer the following questions.

(a) What is the purpose of an ATM card held by the account holder?
(b) What are the transactions for which a Bank sends an SMS alert to an account holder?
How can this facility be availed?
(c) State any four features of e-banking.

(Analysis & Evaluate)

ISC Competency-Focused Practice Questions 21

Commerce ISC-Class XII

ANSWER KEY

Q.No. Expected Answers

1. (a) When the proportion of debt is high.

2. (c) Existing Shareholders.

3. (b) Participating preference shares.

4. (a) Strength

5. (c) Multi-disciplinary

6. (a) Divisional Structure

7. (a) It is a systematised body of knowledge.

8. (d) Coordination is inherent in all functions of management.

9. (b) Critical point control

10. (a) Safety training

11. (c) Refresher training

12. (c) To increase immediate sales.

13. (d) Counterfeit products

14. (c) personal selling

15. (b) RTGS transactions are settled in batches.

16. (a) current assets over current liabilities.

17. (c) Human Resources

18. (a) There is face-to-face contact in person between the bank and the client.

19. (a) Short Messaging Services (SMS)

20. (a) A sudden change in market conditions can render a carefully crafted plan ineffective.

21. (c) Departmentalisation

22. (d) Purchase by standards.

ISC Competency-Focused Practice Questions 22

Commerce ISC-Class XII

Q.No. Expected Answers

23. (b) To capitalise undistributed profits.

24. (d) Public deposits

25. (a) Fixed capital will be more.

26. (b) Real Time Gross Settlement (RTGS)

27. (c) Equity

28. (b) Right to be informed

29. (c) Statements I, III, and IV are correct.

30. (b) Both A and R are true, and R is not the correct explanation of A.

31. (c) A is true, but R is false.

32. (b) Both A and R are true, and R is not the correct explanation of A.

33. (b) Both A and R are true, but R is not the correct explanation of A.

34. (a) Both A and R are true, but R is the correct explanation of A.

35. No, Overdraft facility is only available to current account holders.

36. Real Time Gross Settlement (RTGS)

37. E-Wallet/Digital Wallet/ Mobile Wallet

38. Lower /Operating /Supervisory management

39. Budget

40. The span of control of a CEO is 2.

41. Decisiveness

42. Organisational barrier

43. Labour Contractors

44. Product planning and development/ Merchandising.

45. Unified Payment Interface (UPI)

ISC Competency-Focused Practice Questions 23

Commerce ISC-Class XII

Q.No. Expected Answers

46. Centralisation

47. Advertisement/ employee recommendation

48. Measurement of actual performance.

49. Zero level channel.

50. Special working capital.

51. Redeemable debentures

52. Unity of command.

53. Equity shares

54. Right to be heard

55. Dynamic

56. Planning

57. Mobile money identifier (MMID)

58. Lok Adalats

59. Assembling

60. Placement

61. Management by exception.

62. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis

63. Operating /Lower/Supervisory

64. Production

65. (a) Immediate Payment Service (IMPS).
(b) flexible, versatile, easy to use, fast transfer of funds, mobile alert, inexpensive,
supports other platforms.

66. Public deposits
Advantages: Convenience, Economy, Flexible, wide contacts, no charge on assets.

ISC Competency-Focused Practice Questions 24

Commerce ISC-Class XII

Q.No. Expected Answers

67. (a) Credit card.
(b) A debit card is issued against a bank account and payment can be made up to the
balance in the account. Credit cards can be obtained with or without a bank account
and it allows credit facility to the card holder.

68. (a) Social Environment
(b) Components:
• Education level
• Demographic trends
• Social customs
• Business ethics
• Social trends

69. Secured or mortgage debentures.
Naked /unsecured debentures.

70. (a) Unity of command.
(b) An employee should receive orders from one superior only and be accountable to him.
No personnel can serve several masters at the same time.
(c) Undermine authority, weaken discipline, divide loyalty, and create confusion and
delay.
(Any two points from above)
71. (a) Policy
(b) Guides decision making, standing plan, exist at all levels of organisation, guides
executive judgment, and guidelines about how objectives are to be achieved.

72. (1) Both are inter-related and interdependent functions.
(2) Planning is forward-looking and controlling is backward-looking.
(3) Controlling requires standards that planning lays down.
(4) Planning sets the course, controlling observes deviations so that future plans can be
revised.

73. Internal:
Cost of product, Quality & service, Promotional & distributional strategy
External:
Demand, Competition, Buying motives, Risk, Government control.

74. (a) Raman
(b) Management is pervasive.
(c) To increase efficiency, to train managers, to improve research, to attain social goals,
to clarify thinking, to spread knowledge, to evaluate managerial behaviour, to crystallise
true nature of management. (any five points)

ISC Competency-Focused Practice Questions 25

Commerce ISC-Class XII

Q.No. Expected Answers

75. The following needs may be elaborated in a relevant manner:
(a) Physiological needs
(b) Esteem needs
(c) Social needs
(d) Safety needs

76. (a) No, the airlines have mentioned their policy and rules which they have followed.
(b) (i) Removal of deficiency in service.
(ii) Refund of Price.
(iii) Payment of compensation by Trip Planners Ltd. to Ms. Safar.
(c) No – did not check expiry date.
(d) Insist on a bill and check the quality mark on the product.

77. (a) Rule
(b) standing plan, specific statements of what should or should not be done, dealing with
specific situations, enforced rigidly with few exceptions. (any two relevant points)
(c) Feedback - is the response or reaction by the receiver.
It represents the return flow of communication. With the help of feedback, the reader can
judge the effectiveness of his message. Without it, the process of communication remains
incomplete.
(d) Objectives of communication-
• To educate and train people
• To motivate employees
• To promote managerial efficiency
• To implement decisions quickly
• To facilitate leadership
• To carry out change
• To create teamwork
• To secure feedback
(explain briefly any four points)

ISC Competency-Focused Practice Questions 26

Commerce ISC-Class XII

Q.No. Expected Answers

78. (a) 1. To withdraw and deposit money.
2. to get the accounts statement.

(b) SMS
The bank sends an SMS for any transaction (debit or credit) in the customer’s account.

(c) Features of e-banking:
Face-to-face contact.
Need of computer/ mobile by both the customer and the bank.
An E-banking option is needed.

ISC Competency-Focused Practice Questions 27