0PCode PB-2/15

Series -Succeed 2-25/1s Rol No.

Sample Question Paper 02

Commerce 12 (Code 857)
s sare allowed additional 15 minutes for only reading the paper. They must not start
writing during this time.
here are 13 questions in the paper. All questions are compulsory: Time3 Hrs.
1his pper is divided into thre Sections: A, Band C
4 tion-Aconsists of sixteen subparts which are objectivelvery short answer type questions Max. Marks 80
Carying 1mark each
3Section-B consists otf eight questions which are short answer type questions carrying 4marks each.
6sectionCconsists of four questions which are long answer type questions carrying 8marks each.
7ntermal choices have been provided in two questions in Section-B and in one question in
Section-C
8 The intended marks for questions or parts of questions are given in brackets[1

ection A 6Marks]
e1. Codes
0) Cosmo manufactures its products by using (aPQ and Rare correct
environment friendly methods of production. (b) [Link] Sare correct
Cosmo marufacturer fulfills objective (c) P.Q and S are corect
of the management. (Understanding) [1) (d) Q Rand S are correct
(a) individual (iii) Which consumer right gives the freedom to
b) organisational business firms to set-up their own consumer
grievance cell? (RecallD 1
esocial (d) economic
) Ritesh is engaged in a process through which (a) Right to consumer education
harmony is established among different (b) Right to be assured
activities of an organisation. (ej Right to be heard (d) Right to be informed
Source Adapted from Business Studies, Class 12, (iv) Analyse the organisation chart given below
Textbook (edited) carefully and identify the type of organisation
CAnalysis) [1)
Which of the following functions are required structure given here.
to carried out for successfully establishing (Managing Director
Analysis) [1)
coordination?
P-Planning anddirecting Human Marketing
Q-Organising
R-Staffing
Resource
Research and Purchasing
S-Marketing Development
30
iSucceed Commerce .
(a) Functional structure (ix), Which process is based on human ned.
(b) Divisional structure
() Diagonal structure as per the chart given below? (Recall
(d) Vertical structure Unsatisfied Need
(v) Gloria Textiles Pvt. Ltd. is
expand its market reach byplanning
to Tension
launching
new line of eco-friendly clothing. The a
management wants to analyse the social Drives
environment of the business before
making this decision. Which one of the Search Behaviour
following factors should the company
focus on? (Application) [11 Satisfied Need
(a) Increase in consumer awareness albout
environmental issues
(b) Changes in import-export regulations Reduction of Tension
(c) Development of new technologies in textile (x) Aconsumer should always look for ISI
manufacturing mark on .....[Link].
(d) Inflation rates affecting raw material cost (Understanding
(vi)

(xi) Atrader wants to make an electronic

transfer of funds through NEFT. He does
not have a bank account.
What is the maximum amount he can
Identify the dimension of management transfer? (Recall
highlighted in the picture above which (xii) Workers of Mufti Ltd.
regularly ask thei
affects the business environment.
(Application) [1]
production manager for guidance and
(a) Economic environment information regarding work to be done.
(b) Social environment As a result, he is overburdened. Which
(e Technological environment element of directing is discussed in the
SP-02 given situation? (Understanding
(d) Political environment
(vii) Study the relation between first and the (xii) ABC Ltd. has hired 200 salesmen who
will be assigned the task of contacting
second words given below and fill in the
fourth word on that basis. (Analysis)
prospective buyers and creating
(a) Economic Environment: Macro awareness about the new range of orga
Environment: :Corporate Culture incenses introduced by the company,
Which element of promotion is descrie
[1 here? (Uodentan
(b) NEFT:Net Basis :: RTGS:Ra (xiv) Assertion (A) For the sale of toiletries
(vii) State whether following statements are
true or false. (Recall) ll chemist shops like to select
(a) Business firms compete with
channels.
customers not only for sale of their Reason (R) Market factors affecttthech
of channels of
products but also in other areas. distribution.
(b) New companies generally find it Alternatives
difficult to raise funds through public (a) Both Assertion (A) and Reason
deposits. and Reason (R) is the
Assertion (A)
Sample Question Paper 02 31

Both Asertion (A) Reason (R) are true,

but Reascn (R)i tthe correct () Assertion (A) is true, but Reason (R) Ís false
of Asertion (A) explanation (d) Assertion (A) is false, but Reason (R) is
true

Section BB2 Marks)

Due 2. Once, he made a payment of t 10,000 through
ustrate any four points of guidelines that the use of his debit card in a shopping mall but
should be followed for an effective he didn't receive any message from bank
communication. (Undertanding l4| regarding amount being debited from his
account. He complaint to the bank regarding
this service.
Eucidate any four circumstances in which a
Name the service and two examples of the
company is not required to offer further shares service for which complaint is made by Ram
to the existing shareholders. (Understanding) in bank. (Understanding) l4]
Que 3. Que 7.
Explain any four features of business
an organisation does not provide the right
environment. (Understanding) 14]) If for physical and human resources, then
Que 4. which principle is violated? What are its
Ashopkeeper sold you some spices, claiming consequences? (Understanding) (4]
that those were pure. Later, a laboratory test Que 8.
showed that those were adulterated.
What precautions you should have taken Enumerate any four distinctions between fixed
before buying the products? (Application) (4] capital and working capital. (Recall) l4]

Que 5. Que 9.
As a finance manager of a company, explain
Outline any four advantages of branding to any four advantages of debentures to the
customers which gives a nanme, symbol or debentureholders of the company.
identification mark to a product. (Understanding) 14)
(Understanding) 41
Que 6. As a production manager of a manufacturing
and
Ram opened a bank account in SBL e-mail
and unit, explain four benefits of trade credit to the on 00
registered his mobile number finance department of the unit. (Undenstanding
id with his bank.

Section CB2 Marks]

demerits of the organisation structure
Que 10. which is designed and established by the
preference shares manage- ment to achieve organisational
() Explain any five type ofinvestors
that can be choosen by they seek to goals. (Exaluate) [SI
the
depending on the benefit (i1) Explain any three methods by which
can be
enjoy from investing. (Recall) 15) objective of consumer protection
fundamental differences achieved. (Understanding) S1
(ü) Give any three
between advertising and personal Or

seling.
(Understanding) 3)
(6) Mr NitinSinghania's father deals in
the business of iron and steel. His father
Que 11. wishes that his son should join the family
manager of a start-up business but he wants to go to the USA
) As a senior merits andtwo
Company, evaluate three
 ACN he basis of eerging Gue 13
de dt Cive ee ea
Xylo Lid, s
setting upa cnpany
yyetd yar answe in te aulomoive
Bplai y he leatue of gpds Reclli
new plant in India to manuf
auto componente India ie recyieda
0
competitive and costeffective prduct
in his sectot, with many
Delegation is the downwand transler of eputed cat ma
ityfo a uperior to a rers souring their auto compnents
in the ltof the staleent, subordinate. fr
discuss in brief
be dilerent elenentsof delegation.
country
Xylo Ltd. aims to capture about 40% d 6ee
ahare in india and achieve exports
0 Neha run a factory whereirn she 50 crore within two years of wortha
shoes The buslness has been doingmanulactures commencing
he inteds to expand by diversifyingwellintoarnd operations. To meet these ambitious targets
company requires ahiphy trained and m
leather bags as well as western formal wear worklorce.
hereby
Providermuking
e
her company a complete 0) Explain the first five steps of
process that Xylo Lid. shouldthe selece
of corporate wear
This will enable ber to market her business adopt
unit as the one stop for working women. highly trained workiorce for their newto
le
in India
Which type of structure would you
end for her expanded organisation andrecomm
why?
(1) Explain any three ways in which
provd
training to the employees can be helphl

Answers in Toppers Style

Hy Connitment afirm that l amreviewing these
My purje of looking the ansuersis solely to ansuers only after l have soloed the Sample Ouestion Paper 2om my
in case yansuers uere wrong or l could nf erify whether my anuers were correct or not and to identify my motá
answer that
1. 0 Ocial
() (OPQand Rae correct 2. Four guidelines for effective communication an
follows
() ( Right to be heard
0) Clarify the ldeas before
(iv) (0) Functional structure Communicating
message to be conveyed should Th
be dear in al
(V) () Increase in consumer
environmental issues.
awareness about aspects. It should be analysed in depth and a
nprecise and simple words.
(v) () Technologlcal environment () Know and
Understand the Receiver The
(vil) (o) Micro Envionment communicator should know the level of
(b) Gross Basis nderstanding of the receiver. The content,
language and tone of message should be adul
(viil) (a) False. Business firms compete with each other to suit the education and
but not with consumers. intelligence ofthe
(b) True
receiver.
(ii) Be a Good Listener
Attentive and
on the part of the management willpatient le
(i) Motivation encoutag
(x) electrical employees to communicate freely
(iv) Consult others before
(xi) 50,000 Communlcation It is be
to involve others in developing
(xil) Supervision is discussed h the given situation. the messag
transmitted. It helps to get acceptarce and
(xiil) Personal selling commitment.
(xiv) (c) Competitive factors affect the choice of channels Or Acomnpany is not required to offer further shae
or right shares to the existing
of distribution
following circumstances shareholders in
anple Queston Paper 02 33

whee e py e
es bet Stutus Symbol Ueo branded eoods adds to
atus ybol of custoners and adds to their
ey e tallt py
h condeno level
EsSed eeleln paely v) Campetitive PriceslBranded goods determinebythe
price of goods as decided by conspetitors and
wel ne linary lenpeed the arket
B. The servioe for which complaint has been made by
Heop
e sarhele t h offer of the Ram in bank is "SMS alert facility
The bank offens SMS alert facility fo its customers by
ending SMS related to transactions conducted in
nenin atures o biens envirnment are as their scoount at their registered mobile number.
Following SMS alerts are given to the customers
lity of Extemal Forces it ls the sum ) Transaction alert when the account is debited or
soces indivduals and
total of all
t es enlerpeies institutions that credited.
() Cheque status alert is provided.
General and Specific Torces General foroes 1. Principle of order' is violated in the given statement.
ode socal economic legal and
at affect all buainess enterp political factors Its consegquences are as follows
prises, while specific
krs lke customer, suppliers competiton%, etc ) Wastage of time and energy in search of men and
tindividual enterprises directly. material
Inter-telatedness Various elements of business () availableatt
Productivity will suffer, as resources would not be
environment are related and dependent on each at the right time.
ohet Achange in one causes a change in (ii) Obstacle in smooth working in the organisation
another.
ev Complexity Business environment consists 8. Difference between fixed capital and working capital
of multiple elements which are frequently changing are
and [Link]
makes it complex in nature. Basis Fixed Capital Working Capital

Meaning Fixed capital are funds For the smooth

Common Students may get confused among required to be invested functioning of
Mistake features, benefits and importance of in fixed assets day-to-day operatio:
business environment. Sometimes they funds need to be
explain the dimensions of business invested in current
environment as features. So students assets, This investment
should learn carefully and understand is called 'working
the basic difference among all. capital'
Time Period The capital, in form o This is short-term
fixed assets remain in the investment and gets
4. While buying a product or service, I (consumer) business for longer period, converted into cash or
should take the following precautions (any four) Le. more than one year. cash equivalents within
0 See the name of the product, the manufacturer's a period of one year.
name and address. Form The capital remains fixed The capital, changes its
form from one asset to
() Check the date of manufacturing and date of in one asset.
another.
expiry Source It is sourced through It is generally sourced
(i) Check the net weight of the product. long-ternm sources of through medium-term
(iv) Check that standardisation mark is available on the finance like shares, and short-term sources
product or not debentures, etc ike trade credit, loans
from commercial banks
(v) Check the maximum retail price of the product.
ete.

5. Following are the advantages of branding to

customers
0 Helps in ldentification of Product Branding helps
Volue Points
ily as the For getting maximum marks, following value points
the customers to select the products easily as the can be included in the answer
brand which is giving them satisfaction, can be "Capital invested in fixed assets and long-term
selected easily over the competitor's product. source of finance, etc, with respect to fixed capital.
(0) Ensures Quality Brand name gives quality "Capital invested in current assets and short and
assurance and customers can buy branded goods medium source of finance, etc, with respect to
without fearing about the quality of product. working capital
 beer's Basis Advertising
SuceeedCommercen
eihelder'
Feedback ehackand obtainng QuckPersonal
esge i not poble
and in
plae neeval Medius
eedb p
Newepapees TV radio, Salean
ARines internet et and s
Dbenes ane ally 11.0) Merits of formal organisation are
e o the compa
ti debenture a aY Fisation of
organisation,Responsibility
In format
it is easier to fix respona
evests Cebenture lagood aince mutual relationahips anong the
swho ae cautlonsand members are clearly defined.
yo vetent and f d rate of (b) Clarity of Roles Under this, there is
eos of jobs to be periormed by members of
o o inesment n debentures is ps in avolding
d abie, ebentures are not duplication of work
(c) Unity of Command It is maintained s
anestablished chain of command.
6lwng e the advantages of trade credit Demerits of formal orgarisation are
T eoditis a covenlnt and continuous source (a) Delay in Decision-making Establishet
of command and communication mav
0w heibeeneaily svalable, when the credit
of the customens ls known to the seller.
procedural delays.
(b) Lack of Creative Efforts Rigid laid do
elg oposote the sales of an organisation. policies may not provide adequate recognk
s ados ot ceate ay charge on the assets of the to creative talent.

n whe peoviding funds (9) The objectives of consumer protection can be

18. Fe types of peeference shares are achieved through the following methods
Calative Preference Shares They enjoy the (a) Self-regulatory Business Many big busie
rhe o accumalate unpaid dividends in
houses have realised that their long
hutune yearss in case, the same is not paid interests lie in the satisfaction and welfate:
the customers. Thus, they follow ethical
during ayear standards and practices and have also
Non-cumulative Preference Shares They do established customer service and grievana
not enjoy the right of accumulating dividends, cells to attend to the problems and compl
he dvidends are not paid in a particular of the customers.
yeat (b) Business Association Various business
(G ParticipatingtoPreference Shares These shares associations like FICCI (Federation on Inda
have a right participate in the further Chambers of Commerce of India) and CIl
urplus after a certain arnount at certain rate (Confederation of Indian Industries) have
of dividernd is paid to the equity shareholders. set-up code of conduct for their members.
Shares These This code provides guidelines for dealing
(d) Noparticipating Preference
preferenoe ire only entitled to a fixed with customers.
Nothing in addition to that
rate of dividenc (c) Consumer Awareness (Self-help) A consus
dividend is offered. osition to raise his volce
would be in a position
These against any kind of exploitation, if he is e
(e) Redeemable Preference Shares after a fixed reliefs available to
preference shares are repayable aware of the rights and
period of time. Maximum redemption period him.
Companies Act, 2013. to
Moreover, this awareness helps him also
is 20 years under safeguard his interest. They should a fet
between advertising
() Following are the differences consumer association for safeguarding
and pensonal selling themselves.
Personal Selling sho
Basis
Advertising
Or () As per the emerging
trends, Mr Singhania
manag
ersonal form t is a personal form of ree before joining and
It Conmunicatio
is an first earn his degree
Form father. Hence, he
communication.
his family business with his
Messape is infleible Message is flexible and should go to USA for his MBA, because
Fledbility not be chang coording management is now developing as a profess
and canot be changed
according to the to the custoners eeds. because of the following reasons
Customers needs
 35
onpleQuestion Paper 02

a Bhas a well-defined body of knowledge di versification into

() There is a scope of expansion to different
cneisting of principles and concrpts different products and
NThough there are no restrictions on entry into territories.
he profesion Even if Nitin wants to join his first five steps in the selection
13. (0) Folowing are the Ltd.
nily business, the qualification would help process that Xylo shoulddaadoptot to hire a highly
in India
Nn to manage his business efficiently and trained workforce for their new plant screening is
The initial
effectively (a) Preliminary Screening interview in order
Ie The aim of all managers is to fulfill the service done through a preliminary candidates, by
motive towards society to eliminate the unsuitable
information provided in
0 Following are the features of goods (any three) going through the
their application forms.
a) Goods are tangible. They are made of certain form
physical attributes such as shape, size, etc. (b) Application Blank Ablank application
They can be seen, touched and felt. is given to the candidate to fill all personnel
application blank
(b) In addition to physical features, goods have and professional details. Therecord of the
provides a detailed written
certain attributes, which help customers to candidate.
distinguish them from other goods. Package, required to
brand name, warranty, etc. are such associated () Selection Tests Candidates areindividual's job
take tests which measures the
attributes.
(e) Goods have some value, which can be related proficiency and skills. Various types of
tests such as aptitude test, personality test,
measured in terms of money. interest test, intelligence tests, etc. can be
(d) Every good is mneant to satisfy some human
conducted.
need.
(d) Employment Interview It involves an oral
face- to-face interaction with the candidate. I
12 9 Delegation
respornsibilityis the
andprocess of entrusting lns to check the
authority to the subordinates, helps details appalitiesblank
of
provided and also judge certain such
and creating accountability on those employees,
who are entrusted for responsibility and authority. as quickness of response, personality,
According to Theo Heimman, "Delegation of suitability for the job, etc.
authority merely means the granting of authority to (e) Medical Examination After the selection
subordinates to operate within prescribed limits." decision and before the job offer, the candidate
Elements of delegation are as follows is required to undergo a medical fitness test.
(a) Authority It implies the right of an individual The job offer is given to the candidate, only
when tthe examiner has declared him fit after
to take decisions and to command his the medical examination.
subordinates. The concept of authority arises
from the established scalar chain which links
(ü) Providing training to the employees can be helpful
in the following ways
the various job positions and levels of an (a) Better Performance The performance of
organisation. ItIthelps to maintaín order and
determines the superior-subordinate trained employees is always better than the
performance of untrained employees, In the
relationship. training programmes, their qualities and
(b) Responsibility It is the obligation of a
subordinate to properly perform the assigned capabilities sarea improved
of and employees get
some experience of working on the job before
duty. they are actually assigned the job. This impro
The subordinate is bound to perio the duty ves their performance and efficiency level.
assigned to him. Thus, it flowst
(b) Higher Morale Training increases the
() Accountability It implies being answerable satisfaction and morale of employees and
for the final outcome. thus, builds confidence in them.
Once authority has been delegated and (c) Helps in Solving Operational Problems
Proble
responsibilityaaccepted, one cannot deny While performing various activities, the
accountability. It also flows upward. organisation faces various problems such as
for her
(0) Neha must adopt divisional structure
basis of
problem of absenteeism, wastage of resouroes
organisation, as it is formed on the dissatisfaction of employees, lack of team
different products. work, etc. Through training, these operational
Divisional structure is suitable because of the problems can be avoided or removed in the
following reasons organisation because supervisors are trained
(a) The organisation deals in more
than one for improvement of superior subordinate
relationship and for encouraging and
product. motivating their subordinates
(b) Growth prospects are high.