COMMERCE
Maximum Marks: 80
Time Allotted: Three Hours
Reading Time: Additional Fifteen Minutes
Instructions to Candidates
1. You are allowed an additional fifteen minutes for only reading the question paper.
2. You must NOT start writing during reading time.
3. This question paper has 9 printed pages.
4. There are thirteen questions in the paper. All questions are compulsory.
5. This paper is divided into three sections: A, B and C.
6. Section A has sixteen subparts which are very short answer questions. Each question carries 1
mark.
7. While attempting Multiple Choice Questions in Section A, you are required to write only ONE
option as the answer.
8. Section B has eight questions which are short answer questions.
Each question carries 4 marks.
9. Section C has four questions which are long answer questions.
Each question carries 8 marks.
10. Internal choices have been provided in two questions in Section B and in
one question in Section C.
11. The intended marks for questions are given in brackets [ ].
Instruction to Supervising Examiner
1. Kindly read aloud the Instructions given above to all the candidates present in the examination
hall.
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ISC (CLASS XII) SPECIMEN QUESTION PAPER 2026
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Note: The Specimen Question Paper in the subject provides a realistic format of the Board Examination
Question Paper and should be used as a practice tool. The questions for the Board Examination can be set
from any part of the syllabus, though the format of the Board Examination Question Paper will remain the
same as that of the Specimen Question Paper. The weightage allocated to various topics, as given in the
syllabus, will be strictly adhered to.
SECTION A – 16 MARKS
Question 1 (Understand
(i) With reference to settlement of funds, what does the term ‘Real Time’ signify in
RTGS? (Recall) [1]
(a) Settlement after one hour
(b) Settlement at a fixed time every day
(c) Continuous processing and settlement
(d) Settlement only during bank hours
(ii) With reference to Macro environment, select the odd one out.
[1]
(a) Wider internet penetration [1]
(b) Labour mobility to urban areas
(c) Political unrest
(d) Suppliers of raw materials
(iii) Nirvaan, a tablet manufacturer advertises its phone as having an ‘unbreakable
screen’. A customer buys it, but the screen cracks after a minor fall. He requests a
replacement, but the company refuses it saying that the advertisement was only for
marketing.
Which consumer rights are MOST relevant here for the customer? (Evaluate)
(P) Right to be Heard
(Q) Right to Redressal
(R) Right to Safety
(S) Right to Information
(a) Only (P) and (Q)
(b) Only (Q) and (R)
(c) Only (P) and (R)
(d) Only (Q) and (S)
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(iv) Nova Ltd., team engagement is a company that encourages open communication, (Understandi
teamwork among its employees and rewards them for innovative initiatives. This ng)
leads to employee satisfaction which in turn increases their productivity. [1]
Which internal factor of the micro environment is clearly responsible for this
outcome? (Understanding)
(a) Company’s financial position
(b) Corporate culture
(c) Marketing strategy
(d) Government regulations
(v) To boost the employees’ performance, a manager starts ‘Star Employee of the
Month’ award to reward top achievers in the organisation. This results in an
increase in the efforts by employees and improves productivity. [1]
Choose the correct function of management and its corresponding element that the
above situation refers to. (Understanding)
(a) Planning – Supervision
(b) Directing – Motivation
(c) Organising – Communication
(d) Controlling – Leadership
(vi) Global Supplies, divisional grouping is a large company that groups its operations
into separate product divisions like electronics, clothing, and furniture. Each [1]
division has its own marketing, finance and HR departments. Within the electronics
division, a group of employees from different departments regularly interacts during
breaks and helps each other with work-related advice.
What type of organisation and organisational structure are represented here?
(a) Informal organisation – Divisional structure
(b) Formal organisation – Divisional structure
(c) Formal organisation – Functional structure
(d) Informal organisation – Functional structure
(vii) Consider the assertion: Financial inclusion is essential for business, Reason: Only
large firms benefit marked Assertion and Reason. Read the statements carefully and
choose the correct option. (Analysis)
Assertion: Profit through customer satisfaction is one of the primary aims of
Marketing.
Reason: Marketing begins after production and does not end with sale.
[1]
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(a) Both Assertion and Reason are true and Reason is the correct explanation for
Assertion.
(b) Both Assertion and Reason are true but Reason is not the correct explanation
for Assertion.
(c) Assertion is true and Reason is false.
(d) Both Assertion and Reason are false.
(viii) Relation: Human resources - talent pool, Recruitment - candidate screening between
the first and the second words given below and complete the analogy. (Analysis)
(a) Personal skills : Art :: Ethical Code of Conduct : [1]
(b) Creates a large pool of candidates : Recruitment :: Eliminates unsuitable
candidates :
(ix) True/False: Digital marketing reaches rural markets - Recall or False:
(a) As a facilitating function of Marketing, Packaging ensures protection of a
product. (Recall)
[1]
(b) According to Henri Fayol, mental revolution is a change in the attitudes of
both employers and employees that increases productivity. (Recall)
(x) A firm issues commercial paper at low interest at 10% interest and amplifies the
returns of its equity shareholders by earning 18% return on investment.
The financial concept illustrated here is . (Analysis)
(xi) Omega Inc. dividend payouts structure has earned a profit of ₹1,00,000 for the
financial year ending 31st March 2025. After providing the Interest on Debentures
for ₹15,000, Dividend on Preference Shares for ₹25,000 and Dividend on Equity
Shares for ₹20,000, it paid Ranjana, a shareholder a share from the residual profits
of ₹40,000 along with a fixed rate of dividend.
Identify the type of share held by Ranjana. (Analysis)
(xii) Unique feature: e-commerce transaction slip of the document shown below.
(Recall)
(Source(edited): [Link])
[1]
[1]
[1]
[1]
[1]
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(xiii) E-news portal highlights EV scooter launch publishes an article featuring a new (Recall)
electric car model launched by an automobile company. The article highlights the [1]
car’s eco-friendly technology, sleek design and affordability creating a positive
image and sparking public interest in the product.
Which element of promotion mix is highlighted in the above scenario?
(Understanding)
(xiv) Leadership drives organisational progress as the driving force in every organisation
and at every level. [1]
Identify the feature of management highlighted in the above statement.
SECTION B – 32 MARKS
Question 2 [4]
Rajat runs a bookstore and considers NFC vs. UPI payments.é in Bengaluru. She wants to
explore different electronic payment methods to streamline transactions with customers. She
also weighs the pros and cons of accepting debit cards and credit cards.
Compare these two methods of payment to help Shreya choose a suitable method of
transaction. (Analysis)
Question 3 [4]
Krishna Tech Ltd., a growing Start-up in the Robotics industry, needs finance to meet its
working capital requirements. Prerna Ltd., an Ed-Tech Company, had purchased Robotics
Training Kits and Equipment from Krishna Tech Ltd. with a credit period of three months
and is due to pay ₹15,00,000 on 30th July 2025.
Based on the above information, suggest a suitable form of short-term financing that Krishna
Tech Ltd. can opt for. Explain any three of its features. (Evaluate)
Question 4
Arjun is a Sales Manager in a company and is responsible for managing a team of five sales
representatives in the Delhi region. Every morning, Arjun assigns sales targets, plans daily
routine for his teams, checks the stock availability in retail stores and ensures proper display
of the products.
(i) State the level of management that Arjun belongs to. (Understanding) [1]
(ii) Discuss any three functions of the level of management indicated in the above
scenario. (Understanding)
[3]
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Question 5
(i) Given below is a tabular representation of the Salary structure of a few employees at [2]
Horizon Ltd.
Name of the Designation Experience Salary
Employee (in years) (In INR)
Mr. X Associate Trainer 5 5,00,000 p.a.
Ms. A Associate Trainer 5 12,00,000 p.a.
Mr. Y Associate Trainer 7 8,00,000 p.a.
Mr. B Associate Trainer 5 4,00,000 p.a.
Ms. C Associate Trainer 6 9,00,000 p.a.
Explain the principle of Henri Fayol being violated in the above case. (Analysis)
(ii) [2]
Question 6 [4]
(i) The organising function of management helps transform chaos into coordinated
structure, clarifies communication and promotes effective teamwork.
In the light of this perspective, explain any four points highlighting the
importance of organising function in management. (Understanding)
OR
(ii) A school allocates ₹10 lakhs for infrastructural upgrades, ₹5 lakhs for staff
training and ₹3 lakhs for student activities. This type of financial plan acts as a
control while helping the school prioritise its objectives.
What type of plan has the school put into action? Enumerate any three of its
inherent features. (Understanding)
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Question 7 [4]
A Naval Academy needed to train new submarine crew members on complex equipment and
emergency procedures. To ensure safety and hands-on-experience without risk, they created
a training programme in a simulated submarine environment before actual deployment.
Briefly discuss the method used and the type of training given to the employees in the above
case.
Question 8 [4]
A company producing weight loss pills hires a celebrity to promote the product. This
advertisement claims rapid weight loss without mentioning the need for a balanced diet and
regular physical activity. Also, it does not disclose the potential side effects or risks
associated with the pill.
Specify the provisions of the Consumer Protection Act that would protect consumer’s
interests if the claims provided in the above case are found to be false.
Question 9 [4]
(i) Many mobile phone companies charge a high price when releasing a new mobile
phone with cutting-edge technology. This allows them to generate a substantial profit.
When rivals create similar products, the price of that specific product is dropped to
gain market value and increase sales. Other electronic products, such as fridges,
televisions, and air conditioners, are priced similarly. This is because there are a lot of
competitive markets and several other brands offering similar products.
(Source: (edited) ([Link]
[Link])
Explain the pricing strategies used in the above case. (Analysis)
OR
(ii) Ms. Sheena, a graduate in Human Relations with ten years of experience in the
Corporate sector, plans to set up her start-up. She wants to set up a Soft Skills
Training Academy to train and equip fresh graduates be industry ready.
Name the type of product that she is planning to offer. Explain any three of its
features. (Understanding)
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SECTION C – 32 MARKS
Question 10 (Analysis)
(i) Business organisations use a certain technique to diagnose and analyse their
respective micro and macro environment. Name and explain the technique. [5]
(Understanding)
(ii) Coordination is inherent in Planning, Organising and Staffing functions of
management. Validate this statement by giving three suitable reasons. [3]
Question 11
(i) Ms. Surabhi wants to invest ₹2,00,000 in a debt security of a company for ten [5]
years. She prioritises safety of her investment.
Which debt security would you recommend for her investment?
Explain any four of its features. (Understanding)
(ii) State any three features of IMPS. (Recall) [3]
OR
(iii) Companies which follow a liberal dividend policy may not benefit from Self- [5]
financing method by retaining its profits.
Justify this statement by discussing any three advantages and any two
disadvantages of Retained Earnings. (Analysis)
(iv) Explain any three features of Digital Banking. (Recall) [3]
Question 12
(i) Briefly explain Physical Distribution with any three of its key elements.
(Recall)
(ii) Describe the types of market on the basis of subject of exchange.
(Understanding)
[5]
[3]
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Question 13
Read the passage given below and answer the questions that follow.
XYZ Company had planned to increase its profit margin by 30% in the current
financial year. But it could not achieve the set target in the first quarter of the year
due to cases of theft by employees. The Board of Directors formulated a policy of
‘zero tolerance’ for theft. To prevent such cases, it was decided to install CCTV
cameras in the rooms where the expensive products were stored.
The team of Senior Managers communicated the same to all the employees of the
organization. The decisions were implemented, and instructions were given to the
concerned departments to impose a penalty if an employee was found guilty.
The Human Resource department incorporated the same in the employee handbook.
(i) A few steps of Controlling have been emphasised in the above case. Discuss [2]
any two of them. (Analysis)
(ii) Mention any two objectives of Communication with reference to the above [2]
case.
(Understanding)
(iii) Explain the importance of Controlling by giving any four points. [4]
(Understanding)
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