ICSE Class 10 Commercial Applications Board Exam Question Paper 2019 with Solutions

ICSE Class 10 Commercial Applications Board Exam Question Paper with Solutions

SECTION - A [40 Marks]
(Attempt all questions from this Section)

Question 1. State one difference between each of the following : [10 Marks]

(a) Capital Market and Money Market [2 Marks]

Answer:

Teacher's Note:
a) Capital market deals in medium and long-term financial instruments, whereas money market deals in short-term funds.
b) Students must present differences in a tabular format with a clear basis of distinction to score full marks.

(b) Direct Cost and Indirect cost [2 Marks]

Answer:

Teacher's Note:
a) Direct costs are directly traceable to a specific product or department, while indirect costs are incurred for multiple activities.
b) Avoid writing vague points; always mention identifiability and allocation as key factors.

(c) Employment Exchanges and Placement Agencies [2 Marks]

Answer:

Teacher's Note:
a) Employment exchanges are government-run registration centers matching job seekers with public sector needs, whereas placement agencies are private commercial enterprises.
b) Focus on ownership and scope as the primary criteria for distinction.

(d) Cheque and Bank Draft [2 Marks]

Answer:

Teacher's Note:
a) A cheque carries a risk of dishonouring due to insufficient funds, whereas a bank draft is pre-paid and guaranteed by the issuing bank.
b) Clearly mention who draws or issues the instrument.

(e) Advertising and Publicity [2 Marks]

Answer:

Teacher's Note:
a) Advertising is a paid form of non-personal promotion controlled by the sponsor, while publicity is non-paid news coverage not directly controlled by the company.
b) Highlighting control and payment status fetches full credit.

Question 2.
(a) Mention any two advantages of wind energy. [2 Marks]

Answer:
1. It is a pollution-free, clean energy source.
2. It is a totally free source of energy.

Teacher's Note:
a) Wind energy is renewable and does not emit greenhouse gases.
b) State distinct points clearly without repeating similar environmental arguments.

(b) State any two uses of Balance Sheet. [2 Marks]

Answer:
1. A balance sheet reflects the financial position and capital of a company, showing its financial strength or weakness.
2. It helps stakeholders assess the net worth of a company to know what would remain after all assets are sold and liabilities are paid off.

Teacher's Note:
a) The balance sheet provides a snapshot of assets, liabilities, and equity at a specific point in time.
b) Ensure keywords like financial position, net worth, assets, and liabilities are used.

(c) Mention any two circumstances when a Bank can refuse payment of a cheque. [2 Marks]

Answer:
1. If the signatures of the drawer on the cheque differ from the specimen signatures registered in the account opening form.
2. If the cheque is stale, meaning the date on the cheque is more than three months old.

Teacher's Note:
a) Other valid grounds include insufficient funds, countermand of payment by the customer, or notice of customer's death/insolvency.
b) Specify exact time limits like three months for a stale cheque.

(d) What is meant by consumer education? [2 Marks]

Answer:
Consumer education means providing resources, knowledge, and information to consumers regarding prices, product quality, and trade practices, enabling them to make informed and better buying decisions.

Teacher's Note:
a) It empowers consumers against exploitation and unfair trade practices.
b) Keep definitions concise and focused on informed decision-making.

(e) Mention the form elements of Marketing mix. [2 Marks]

Answer:
The four traditional elements (4 Ps) of the marketing mix are:
1. Product
2. Price
3. Promotion
4. Place

Teacher's Note:
a) The marketing mix represents the tactical tools that a firm uses to produce its desired response in the target market.
b) List all four components clearly in sequence.

Question 3.
(a) What is food adulteration? Give an example. [2 Marks]

Answer:
Food adulteration refers to the process by which the quality or nature of a given food is degraded through the addition of inferior substances or removal of vital nutrients. A common example is mixing papaya seeds into black pepper, or adding sweet potato to ghee.

Teacher's Note:
a) Adulterants are harmful chemical or physical substances added to food items for commercial gain.
b) Always provide a realistic example along with the definition.

(b) State the importance of 'persuasion' as an element of Public Relations. [2 Marks]

Answer:
Persuasion is the process of influencing a person's attitudes or behavior through communication. In public relations, persuasion helps in changing hostile public opinions, building mutual understanding, and addressing customer expectations and queries effectively.

Teacher's Note:
a) Persuasion builds goodwill and maintains favorable public relations for the organization.
b) Focus on attitude change and opinion shaping.

(c) Explain two advantages of opening a bank account. [2 Marks]

Answer:
1. Safety of funds: There is no need to keep huge amounts of cash at home or at the business premises, reducing the risk of theft.
2. Earning interest: The surplus cash deposited in a bank account earns interest for the account holder.

Teacher's Note:
a) Bank accounts also facilitate easy payments and collections through cheques or digital transfers.
b) Keep the two advantages distinct and precise.

(d) What is meant by parity pricing? [2 Marks]

Answer:
Parity pricing means increasing the selling price of a product or service proportionately, matching the exact increase in the prices of raw materials, inputs, or competitor pricing in the market.

Teacher's Note:
a) It helps businesses maintain profit margins when input costs rise.
b) Emphasize proportional adjustments corresponding to cost changes.

(e) What do you mean by Office and Administrative Overhead? [2 Marks]

Answer:
Office and administrative overheads are indirect costs incurred for the overall administration, management, and direction of an organization. Examples include office rent, lighting, stationery, and administrative salaries.

Teacher's Note:
a) These expenses cannot be directly allocated to production or selling activities.
b) Include both the definition and examples for complete marks.

Question 4. Give a reason either for or against each of the following statements. [10 Marks]

(a) Human Resource Management is a challenging function. [2 Marks]

Answer:
Yes. Human Resource Management is a challenging function because it deals with human beings who possess diverse emotions, changing expectations, and complex behaviors. Managing internal organizational factors like restructuring, downsizing, maintaining competitive positions, and building positive work cultures adds to this complexity.

Teacher's Note:
a) Employees are dynamic assets whose motivations and aspirations change over time.
b) State whether you agree or disagree, followed by valid justification.

(b) Every transactions has two effects. (Answer with reference to the Concept of Accounting) [2 Marks]

Answer:
Yes. This is based on the Dual Aspect Principle of accounting, which states that every business transaction has a twofold effect on the financial statements. For example, if a business buys a vehicle for Rs. 5,00,000 in cash, it results in two effects: an increase in assets (vehicle) and a decrease in another asset (cash) by the same amount.

Teacher's Note:
a) This dual entry concept forms the foundational basis of the double-entry bookkeeping system.
b) Always quote the accounting principle and provide a brief numeric illustration.

(c) Ethics has no role in Public Relations. [2 Marks]

Answer:
No. Ethics plays a crucial role in public relations. Ethical standards such as honesty, advocacy, loyalty, fairness, and transparency are essential to gain public trust, maintain credibility, and safeguard stakeholder confidence.

Teacher's Note:
a) Unethical public relations practices lead to loss of reputation and permanent damage to brand equity.
b) Explicitly refute the negative statement with valid ethical values.

(d) Today’s Marketing Concept is known as Consumer Oriented Concept. [2 Marks]

Answer:
Yes. Today's marketing concept is consumer-oriented because it revolves around identifying the needs, wants, and preferences of consumers and delivering superior value to satisfy them while achieving organizational goals.

Teacher's Note:
a) Modern marketing has shifted from mere selling to customer satisfaction and long-term relationship building.
b) Emphasize customer satisfaction as the core objective.

(e) A distribution channel serves as a link between producers and consumers. [2 Marks]

Answer:
Yes. A distribution channel consists of a network of intermediaries (wholesalers, retailers, distributors) that bridge the physical and time gap between producers and ultimate consumers, ensuring smooth flow of goods.

Teacher's Note:
a) Without distribution channels, goods manufactured at one place cannot reach dispersed consumers efficiently.
b) Mention the role of intermediaries in connecting production and consumption.

SECTION - B [60 Marks]
Attempt any four questions from this Section

Question 5.
(a) Explain the maturity stage and abandonment stage of product life cycle. [5 Marks]

Answer:
1. Maturity Stage: In this stage, sales growth slows down as the product achieves widespread acceptance in the market. Competition is intense, leading to falling prices and reduced profit margins. Weak firms exit the industry, and heavy expenditure is incurred on promotional activities and product modifications to sustain market share.
2. Abandonment (Decline) Stage: This is the final stage of the product life cycle where sales and profits drop sharply due to changing consumer preferences, technological obsolescence, or newer innovative substitutes. The firm decides to abandon or withdraw the product to reallocate resources to more profitable ventures.

Teacher's Note:
a) The product life cycle describes the stages a product goes through from introduction to withdrawal.
b) Differentiate clearly between the competitive pressure of maturity and the withdrawal of the abandonment stage.

(b) Explain three professional and two social significance of Human Resource Management. [5 Marks]

Answer:
Professional Significance:
1. Personal Development: HRM provides continuous training and development opportunities for the personal and professional growth of each employee.
2. Healthy Work Environment: It maintains harmonious relations among individuals, teams, and management, fostering cooperation.
3. Proper Work Allocation: It ensures efficient matching of employee skills with job requirements, avoiding underutilization.
Social Significance:
1. Employment Generation: It creates suitable employment opportunities, providing social and psychological security to individuals.
2. Matching Demand and Supply: It balances available jobs with job seekers in terms of numbers, qualifications, and aptitudes.

Teacher's Note:
a) HRM benefits both the organization internally (professional) and society at large (social).
b) Headings must be clearly separated as asked in the question (three professional and two social).

(c) Explain any two leading money functions of the commercial bank. [5 Marks]

Answer:
1. Granting Loans and Advances: Commercial banks disburse surplus money deposited by customers to needy borrowers for productive and personal purposes, stimulating economic activity. Major forms include term loans, cash credit, and overdraft facilities.
2. Cash Credit: It is a short-term credit facility granted to businesses against approved current assets or stocks as security. The borrower can withdraw funds up to a sanctioned limit, and interest is charged strictly on the amount actually utilized.

Teacher's Note:
a) Lending money is a primary function that generates interest income for commercial banks.
b) Clearly distinguish between general loans, overdrafts, and cash credit.

Question 6.
(a) Explain any two types of interviews that are used in selection of employees. [5 Marks]

Answer:
1. Formal Interview: This is a structured interview conducted in a formal atmosphere by an employment officer or selection committee in an office. Questions are well-planned in advance, and the time and venue are officially communicated to the candidate.
2. Informal Interview: This is an unstructured, oral interview that can take place anywhere without prior planning. The interviewer asks casual questions regarding background, family, or interests to assess the candidate's general personality, usually adopted when there is an urgent need for workers.

Teacher's Note:
a) Interviews help assess communication skills, personality, and job-fit.
b) Highlight the level of structure and planning to differentiate between formal and informal interviews.

(b) Discuss employee relations and government relations on the basis of scope of public relations. [5 Marks]

Answer:
1. Employee Relations: This scope of public relations focuses on building and maintaining healthy, transparent communication channels between the management and employees. It boosts morale, addresses grievances, aligns employee goals with organizational vision, and fosters a sense of belonging.
2. Government Relations: This scope involves managing interactions and compliance between the organization and various government bodies, regulators, and officials. It relies on clear communication regarding statutory policies, legal compliance, and participating in public policy dialogues.

Teacher's Note:
a) Public relations extends beyond external customers to internal stakeholders and regulatory authorities.
b) Explain how each functional area contributes to overall corporate reputation.

Question 7.
(a) Discuss the Sales oriented stage and Product oriented stage of marketing. [5 Marks]

Answer:
1. Product Oriented Stage: The motto during this early stage was "Make all you can". Demand exceeded available supply, whatever was produced was easily sold, and the primary focus was on engineering and maximizing production output rather than understanding customer needs.
2. Sales Oriented Stage: In this stage, production capacity caught up and supply frequently exceeded demand. The motto shifted to "Sell all you make". The primary focus became heavy advertising, aggressive selling techniques, and pricing strategies to clear existing inventory.

Teacher's Note:
a) Marketing philosophy evolved through different eras before adopting the modern consumer-oriented approach.
b) Contrast the primary focus and market conditions of both stages.

(b) Explain Product advertising and Informative advertising. [5 Marks]

Answer:
1. Product Advertising: It is aimed at building and maintaining brand awareness and demand for a specific product or service. It educates potential buyers about features, uses, and benefits, while highlighting how the product is superior to competitors' offerings.
2. Informative Advertising: This form of advertising is typically used when launching a new or updated product. Its objective is to build initial market awareness, explain how the product works, provide pricing information, and educate consumers about the enterprise or cause.

Teacher's Note:
a) Advertising is classified based on its purpose and target audience.
b) Clearly mention the objective of introducing new products for informative advertising.

(c) Explain the first five steps, in personal selling. [5 Marks]

Answer:
1. Prospecting: Identifying and locating potential customers or leads through sources like trade shows, databases, cold calling, and referrals.
2. Pre-Approach: Conducting background research on prospective customers to plan a customized sales presentation suited to their specific needs.
3. Approach: Making initial contact with the prospective customer through polite conversation to build rapport and create a comfortable atmosphere.
4. Sales Presentation: Demonstrating the product's features, qualities, and benefits to the customer, aligning them with the customer's requirements.
5. Closing the Sale: Persuading the prospective customer to make the final purchase decision, settling final terms, prices, and payment options.

Teacher's Note:
a) Personal selling is a face-to-face interactive process of promoting and selling products.
b) List the steps in chronological order to secure full marks.

Question 8.
(a) Write short notes on: [5 Marks]
(i) Business Entity Concept
(ii) Going Concern Concept

Answer:
(i) Business Entity Concept: This concept states that a business enterprise is treated as an independent unit separate from its owners and other businesses. Separate books of accounts are maintained, and personal transactions of owners are not mixed with business transactions.
(ii) Going Concern Concept: This accounting assumption implies that the business will continue its operations for the foreseeable future and has no intention or necessity to curtail significantly or liquidate its operations.

Teacher's Note:
a) Both are fundamental accounting concepts underlying financial statement preparation.
b) Define each concept clearly with its accounting significance.

(b) Explain any two types of consumer products with examples. [5 Marks]

Answer:
1. Convenience Products: These are consumer goods that customers buy frequently, immediately, and with minimal comparison or effort. They are low-priced, widely distributed, and require mass promotion. Examples: Sugar, soap, pencils, and newspapers.
2. Shopping Products: These are consumer goods that customers buy less frequently and compare carefully on the basis of quality, price, style, and suitability before purchasing. They involve greater shopping effort and personal selling. Examples: Furniture, electronic appliances, and clothing.

Teacher's Note:
a) Consumer products are classified based on consumer buying habits.
b) Include both definitions and appropriate examples for each category.

(c) Explain any five procurement functions of Human Resource Management. [5 Marks]

Answer:
1. Job Analysis: The systematic process of collecting detailed information about operations, duties, and responsibilities pertaining to a specific job.
2. Human Resource Planning: The process of forecasting and determining the organization's future personnel needs in terms of quality and quantity.
3. Recruitment: The process of searching for prospective employees and stimulating them to apply for vacancies in the organization.
4. Selection: The process of screening, testing, and interviewing applicants to choose the most suitable candidate for the job.
5. Placement: The process of assigning the selected candidate to a suitable job role matching their qualifications, skills, and interests.

Teacher's Note:
a) Procurement functions relate to acquiring the right quality and number of personnel.
b) Explain each of the five steps concisely in logical sequence.

Question 9. Case Study
Ryan Ltd. took the following steps in the beginning of this year to widen its consumer base. It expanded the business operations to cover international markets and within India, it focused on Delhi. It repositioned itself as a FMCG company, offering a wide range of Modern Electronic items, and moved away from traditional marketing to non-traditional marketing. The company focused on quality control and publicity. It also introduced new advertisements featuring film stars and sports personalities. It undertook various brand promotion methods.
(a) Explain any two advantages of advertising to manufacturers. [5 Marks]

Answer:
1. Increased Demand and Economies of Scale: Advertising stimulates consumer demand, leading to higher production volumes. This enables the manufacturer to install modern plants and adopt technological improvements, resulting in lower cost of production per unit.
2. Stability in Sales: Through continuous advertising, manufacturers can create steady demand and maintain sales throughout the year, thereby reducing seasonal slumps in business.

Teacher's Note:
a) Advertising offers substantial commercial benefits to producers besides informing consumers.
b) Emphasize cost reduction and demand stabilization.

(b) Explain any two elements of promotion mix. [5 Marks]

Answer:
1. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor through mass media like television, radio, and print.
2. Sales Promotion: Short-term incentives and marketing activities (such as discounts, contests, free samples, and trade shows) designed to encourage immediate purchase or trial of a product or service by consumers or dealers.

Teacher's Note:
a) Promotion mix is the specific blend of promotional tools used to communicate customer value.
b) Distinguish between long-term image building (advertising) and short-term incentives (sales promotion).

(c) Explain any five Non-traditional markets. [5 Marks]

Answer:
1. Catalogue Market: Sellers distribute product catalogues directly to customers, where goods can be ordered directly from descriptions and samples.
2. In-House Market: Salespersons visit customers directly at their homes or offices to demonstrate and sell products.
3. Mail-Order Market: Sellers mail product catalogues and promotional literature to prospective buyers, and orders are executed via courier or postal service.
4. Automatic Vending Machines: Coin or cash-operated automated machines installed at public places, malls, or workplaces to dispense products like beverages.
5. Tele-markets: Products are advertised through television, print media, or phone, with toll-free numbers provided for placing orders delivered via couriers.

Teacher's Note:
a) Non-traditional markets bypass traditional retail storefronts to reach consumers directly.
b) List and define five distinct channels clearly.

Question 10.
A leading Human Resource Consultancy group has received a number of applications for the post of an analyst for its Hyderabad office. But the person finally selected had no prior experience for work in the same industry. The administrative manager feels that with proper training the selected person will turn out to be an asset to the organisation. Although he feels that on-the-job training will be the most appropriate, other members of the selection committee recommended Internship training and Role Playing methods of training.
(a) What is employee selection? Mention any three benefits of employee selection. [5 Marks]

Answer:
Employee selection is the systematic process of evaluating job applicants' qualifications, skills, and experience to determine who is best suited to fill a vacant position in an organization.
Benefits of employee selection:
1. Reduces Applicant Numbers: Screens out unqualified candidates from the massive applicant pool, leaving a manageable number.
2. Accesses Behavior and Fit: Assesses candidate personality, flexibility, and adaptability to ensure they fit well with the organization's culture.
3. Lowers Employee Turnover: Proper selection ensures hiring the right person for the job, leading to higher job satisfaction and lower staff turnover rates.

Teacher's Note:
a) Selection is a negative or rejection-based process following recruitment.
b) State both the definition and three distinct benefits clearly.

(b) Explain Internship training and Role Playing methods of training. [5 Marks]

Answer:
1. Internship Training: A joint program between educational/vocational institutions and industrial enterprises where students undergo practical training for a few months to back up their advanced theoretical knowledge with real-world work experience.
2. Role Playing: A simulation training method where trainees are assigned specific roles in a given hypothetical situation or conflict (such as a factory strike or grievance handling). Participants act out their assigned roles by interacting with one another to develop problem-solving skills.

Teacher's Note:
a) Training methods are crucial for bridging the skill gap of newly inducted employees.
b) Highlight the practical application aspect of internships and simulation nature of role-playing.

(c) Explain any two internal sources of recruitment. [5 Marks]

Answer:
1. Employee Referrals: Existing employees are encouraged to recommend qualified friends, relatives, or acquaintances for open positions within the organization.
2. Promotions: Filling vacant higher-level positions by promoting deserving, skilled existing employees from within lower ranks, which also serves as a strong motivational tool.

Teacher's Note:
a) Internal recruitment boosts employee morale and reduces hiring costs.
b) Describe how internal sources operate within an organization.