ICSE Class 10 Commercial Applications Board Exam Question Paper 2025 with Solutions

ICSE Class 10 Commercial Applications Board Exam Question Paper 2025 with Solutions

SECTION A (40 Marks)
(Attempt all questions from this Section.)

Question 1 [20 Marks]
Choose the correct answers to the questions from the given options.
(Do not copy the question, write the correct answers only.)

(i) Which movement began as a protest against the construction of dams? [1 Mark]
(A) Narmada Bachao Andolan
(B) Van Mahotsav
(C) Anandalya Movement
(D) National Awareness Movement

Answer: (A) Narmada Bachao Andolan

Teacher's Note:
a) Narmada Bachao Andolan is a social movement protesting against the large dams built on the Narmada River.
b) Students must remember key environmental movements and their primary causes for board exams.

(ii) Identify which products are purchased after a comparative analysis of quality, price, warranty of competitive brands. [1 Mark]
(A) Convenience products
(B) Industrial products
(C) Speciality products
(D) Shopping products

Answer: (D) Shopping products

Teacher's Note:
a) Shopping products involve consumer comparison regarding quality, price, and style before purchase.
b) Do not confuse shopping products with specialty products, which have unique brand loyalty and require no comparison.

(iii) 'T-Group Training' is also known as _____ [1 Mark]
(A) Internship Training
(B) Vestibule Training
(C) Sensitivity Training
(D) Refresher Training

Answer: (C) Sensitivity Training

Teacher's Note:
a) T-Group or Sensitivity training focuses on improving interpersonal relationships and behavioral awareness.
b) This method is commonly utilized in organizational development and group dynamics workshops.

(iv) Identify which of the following is NOT a direct cost in a cotton textile unit. [1 Mark]
(A) Rent of the factory where production is being carried out.
(B) Expense incurred on advertisement to promote the sale of the finished product.
(C) Colours used for dyeing the cotton fabric.
(D) Wages paid to the operators of sewing and spinning machines.

Answer: (B) Expense incurred on advertisement to promote the sale of the finished product.

Teacher's Note:
a) Advertising expenses are classified as selling or indirect overhead costs, not direct production costs.
b) Direct costs are directly traceable to the creation of the product, such as raw materials and direct labor.

(v) With reference to the Dual Aspect Principle identify the correct option: [1 Mark]
(A) Assets = Capital - Liabilities
(B) Liabilities = Assets + Capital
(C) Capital = Assets + Liabilities
(D) Capital = Assets - Liabilities

Answer: (D) Capital = Assets - Liabilities

Teacher's Note:
a) The fundamental accounting equation derived from the Dual Aspect Principle is Assets = Liabilities + Capital.
b) Rearranging this gives Capital = Assets - Liabilities.

(vi) _____ records all cash transactions whether they belong to the current year, previous year or future year. [1 Mark]
(A) Profit & Loss Account
(B) Income & Expenditure Account
(C) Receipts & Payments Account
(D) Personal Account

Answer: (C) Receipts & Payments Account

Teacher's Note:
a) Receipts and Payments account is a summary of cash book entries covering all periods.
b) It is a real account and forms the basis for preparing income and expenditure accounts in non-trading concerns.

(vii) Which of the following statement best describes Selection? [1 Mark]
(A) It is a positive process.
(B) It is the first stage of hiring.
(C) It succeeds recruitment.
(D) It encourages people to apply for the job.

Answer: (C) It succeeds recruitment.

Teacher's Note:
a) Recruitment is a positive process that attracts candidates, while selection is a negative process that rejects unsuitable ones.
b) Selection always follows recruitment in the staffing process.

(viii) Direct selling, as a channel of distribution, has become popular due to the _____ [1 Mark]
(A) Availability of expert services of middlemen
(B) Concentrated markets
(C) Relief from the problem of distribution
(D) Increasing cost of distribution

Answer: (D) Increasing cost of distribution

Teacher's Note:
a) Direct selling eliminates middlemen, thereby reducing distribution costs and margins.
b) Manufacturers prefer direct selling to maintain better control over final pricing and customer relations.

(ix) The process of _____ comes to an end with the delivery of product to the customers. [1 Mark]
(A) Advertising
(B) Marketing
(C) Selling
(D) Public relations

Answer: (C) Selling

Teacher's Note:
a) Selling is a narrow concept focused on transferring title and possession of goods to customers.
b) Marketing is a broader concept that continues even after the sale through customer service and feedback.

(x) With reference to the 'Cost Plus Pricing', which statement(s) is/are correct? [1 Mark]
1. Selling price of the product must cover full cost.
2. Selling price must cover full cost and yield a reasonable margin of profit.
3. Selling price should be high to get more profit.
4. Selling price should be low, so cost could be covered.
(A) 1 & 3 are correct
(B) 2 & 3 are correct
(C) 1 & 4 are correct
(D) Only 2 is correct

Answer: (D) Only 2 is correct

Teacher's Note:
a) Cost plus pricing involves adding a standard markup to the total cost of production.
b) Statement 2 accurately defines this by stating it covers full cost plus a reasonable profit margin.

(xi) With reference to Savings Deposit Account, which statement is correct? [1 Mark]
(A) Depositors need to deposit a specific amount every month.
(B) There are restrictions on number of withdrawals in a week.
(C) Overdraft facility is available.
(D) There are restrictions on the number of deposits that can be made in a week.

Answer: (B) There are restrictions on number of withdrawals in a week.

Teacher's Note:
a) Savings bank accounts are meant for individuals to encourage savings and have limits on withdrawals.
b) Overdraft facilities are generally provided for current accounts, not savings accounts.

(xii) _____ is the only weapon of reasoning and understanding in a civilised society. [1 Mark]
(A) Dialogue
(B) Human Relation
(C) Persuasion
(D) Empathy

Answer: (A) Dialogue

Teacher's Note:
a) Dialogue fosters mutual understanding, reasoning, and peaceful conflict resolution.
b) It is essential in public relations and corporate communication.

(xiii) Production-Oriented-Stage was characterised by: [1 Mark]
(A) The focus on Sales Promotion.
(B) Product improvement.
(C) Supply creating its own demand.
(D) Profits through customer satisfaction.

Answer: (C) Supply creating its own demand.

Teacher's Note:
a) The production-oriented era assumed that consumers would favor products that were widely available and affordable.
b) Businesses focused on mass production under Say's Law concept where supply creates its own demand.

(xiv) Under which Right of Consumer Protection Act 1986, fair settlement and genuine grievances of customers were addressed? [1 Mark]
(A) Right to Safety
(B) Right to be Heard
(C) Right to Seek Redressal
(D) Right to Consumer Education

Answer: (C) Right to Seek Redressal

Teacher's Note:
a) The Right to Seek Redressal gives consumers the right to get compensation against unfair trade practices or exploitation.
b) Do not confuse this with the Right to be Heard, which ensures representation in forums.

(xv) India's foreign exchange reserves climbed to a record of $651.5 billion by the end of last week demonstrating resilience despite uncertain geopolitics.
Source: The Economic Times, Kolkata, dated 6th June 2024
With reference to the above, name the institution that is authorised to monitor such reserves in our country. [1 Mark]
(A) Central Bank of India
(B) State Bank of India
(C) Citi Bank
(D) Indian Bank

Answer: (A) Central Bank of India

Teacher's Note:
a) The Reserve Bank of India (RBI) acts as the central bank and custodian of the country's foreign exchange reserves.
b) Note that Central Bank of India is a commercial bank, but here "Central Bank of India" refers generically to the nation's central bank (RBI) as intended by the options/question context.

(xvi) _____ is a method of training, used in technical trades and crafts, in which a long period is required to become proficient. [1 Mark]
(A) Under study
(B) Job rotation
(C) Mentoring
(D) Apprenticeship

Answer: (D) Apprenticeship

Teacher's Note:
a) Apprenticeship training places a worker under a master craftsperson for an extended period.
b) It is widely used in plumbing, electrical work, and technical crafts.

(xvii) Assertion (A): Parity Pricing is the most logical strategy when it is very difficult to calculate the cost of the products.
Reason (R): When price leadership is well established, setting price according to the competitors is the safest policy.
(A) (A) is true and (R) is false.
(B) Both (A) and (R) are true and (R) is the correct explanation of (A).
(C) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(D) Both (A) and (R) are false. [1 Mark]

Answer: (C) Both (A) and (R) are true but (R) is not the correct explanation of (A).

Teacher's Note:
a) Parity pricing involves setting prices at the same level as competitors when costs are hard to determine.
b) Both statements are logically correct facts about pricing strategies, but Reason is not the direct explanation of Assertion.

(xviii) Mr. Ajay, an executive of an organisation, should undergo which of the following methods of training to learn from the board of directors, how they take decisions, interact with each other and develop problem solving skills? [1 Mark]
(A) Job rotation
(B) Under study
(C) Committee Membership
(D) Apprenticeship Training

Answer: (C) Committee Membership

Teacher's Note:
a) Committee membership allows executives to participate in discussions and observe board decision-making.
b) It helps develop collaborative problem-solving skills at senior management levels.

(xix) Companies like Amul and Colgate have well established markets in India. Their advertisement is still a regular feature in multiple newspapers and television channels. Such advertisements can be classified as:
1. Concept advertisement
2. Reminder advertisement
3. Institutional advertisement
4. Product advertisement
(A) 1 and 2
(B) 2 and 3
(C) 3 and 4
(D) 2 and 4 [1 Mark]

Answer: (D) 2 and 4

Teacher's Note:
a) Established brands use reminder advertising to maintain top-of-mind awareness.
b) These ads also focus on specific products (product advertising) to drive continuous sales.

(xx) Comprehensive function of Human Resource Management is not concerned with managing all types of people at each level. [1 Mark]
(A) True
(B) False

Answer: (B) False

Teacher's Note:
a) Human Resource Management manages personnel across all levels and departments in an organization.
b) Therefore, the statement claiming it is not concerned with all levels is false.

Question 2 [10 Marks]
Answer the following questions:

(i) Distinguish between:
(a) Skimming pricing and Penetrating pricing
(b) Overdraft and Cash Credit [5 Marks]

Answer:

(a) Difference between Skimming Price and Penetrating Price

(b) Difference between Overdraft and Cash Credit

Teacher's Note:
a) Always present distinctions in tabular form with clear comparative bases.
b) Ensure definitions highlight the core objective and operational differences.

(ii) Justify the following sentences For or Against and give a reason:
(a) Walk-in interview is a direct method of recruitment.
(b) There are certain costs which are neither totally fixed nor fully variable.
(c) Newspapers and tea are purchased with special efforts. [5 Marks]

Answer:
(a) For
Reason: Walk-in interviews involve candidates approaching the organization directly without a prior appointment. There is no third-party involvement, making it a direct recruitment method.
(b) For
Reason: Such costs are called semi-variable or mixed costs. They consist of both fixed and variable components (e.g., electricity bill - fixed minimum charge plus variable cost based on usage).
(c) Against
Reason: Newspapers and tea are convenience goods. They are purchased frequently, require minimal effort, and are readily available.

Teacher's Note:
a) Clearly state 'For' or 'Against' first before providing the scientific justification.
b) Use textbook examples like semi-variable electricity costs to support cost classification answers.

Question 3 [10 Marks]
Answer the following questions:

(i) What is meant by Human Resource Management? [2 Marks]

Answer:
Human Resource Management (HRM) is the process of recruiting, selecting, developing, motivating, and managing employees to achieve the organization's objectives effectively and efficiently.

Teacher's Note:
a) Focus on key functions such as procurement, development, compensation, and maintenance.
b) Mentioning organizational objectives adds completeness to the definition.

(ii) Explain the concept of The Matching Principle. [2 Marks]

Answer:
The Matching Principle states that expenses incurred in an accounting period should be matched with the revenues generated during the same period to accurately determine net profit.

Teacher's Note:
a) This principle forms the basis of accrual accounting.
b) Emphasize that costs are recognized when the related revenue is earned, irrespective of cash flow timing.

(iii) Discuss any two R's with respect to environmental values and ethics. [2 Marks]

Answer:
1. Reduce: Minimising the usage of natural resources and cutting down waste production (e.g., using energy-efficient appliances).
2. Recycle: Reprocessing used materials into new products, reducing environmental impact (e.g., recycling paper, plastic, or glass).

Teacher's Note:
a) Students should learn at least three R's (Reduce, Reuse, Recycle) for such environmental questions.
b) Providing practical examples secures full marks.

(iv) List any four elements of Promotion Mix. [2 Marks]

Answer:
1. Advertising
2. Sales Promotion
3. Personal Selling
4. Public Relations

Teacher's Note:
a) List the four primary tools of promotion clearly as bullet points.
b) Memorize these promotional elements as they frequently appear in case studies.

(v) Name and explain the method used for selling standardised goods. [2 Marks]

Answer:
Self-service method.
Explanation: In this method, standardised goods like groceries or packaged items are displayed, and customers pick items themselves without needing salesperson assistance. It reduces operational costs and offers convenience.

Teacher's Note:
a) Self-service is common in supermarkets and departmental stores.
b) It saves time and lowers labor costs for retailers.

SECTION B (60 Marks)
(Attempt any four questions from this Section.)

Question 4 [15 Marks]

(i) What is direct selling? Discuss its latest method. [5 Marks]

Answer:
Direct selling is a sales method where products are sold directly from the manufacturer or company to the consumers, without involving intermediaries such as wholesalers, agents, or retailers. This approach allows companies to establish a personal connection with customers, offer customized services and get direct feedback.
Latest Method:
Online Direct Selling / E-commerce:
1. Companies use websites, social media, mobile apps, and virtual meeting tools for direct customer interaction.
2. Sales representatives conduct product demonstrations, share promotional content and process orders digitally.
3. Customers can browse products, make payments and receive deliveries from home.

Teacher's Note:
a) Clearly define direct selling by emphasizing the elimination of middlemen.
b) Highlight digital platforms as the modern trend in direct selling.

(ii) Discuss any two agency functions of Commercial Banks. [5 Marks]

Answer:
1. Collection and Payment of Cheques, Bills, and Dividends: Banks collect cheques, drafts, bills of exchange, and dividends on behalf of their customers. Once cleared, the amount is credited to the customer's account.
2. Acting as Executors and Trustees: Banks act as executors of wills and trustees for managing assets of individuals and businesses, ensuring that wealth is distributed according to legal instructions.

Teacher's Note:
a) Differentiate between general utility functions and agency functions of commercial banks.
b) Give clear explanations with examples for each agency service.

(iii) Ms. Asha started a cosmetic business and tried to develop a positive image of her brand product towards her customers. With reference to this, explain any two methods of Brand Promotion implemented by Ms. Asha to increase brand loyalty among her customers. [5 Marks]

Answer:
1. Advertising: Ms. Asha can use various advertising media such as newspapers, television, social media platforms, beauty magazines and websites to create awareness about her cosmetic products. Effective advertising highlights unique features and quality.
2. Sales Promotion: Involves offering short-term incentives to encourage customers to purchase the product (e.g., discounts, free samples, buy-one-get-one-free offers, loyalty programs).

Teacher's Note:
a) Relate the answer directly to the cosmetic business scenario given in the question.
b) Explain how each promotion method helps build long-term brand loyalty.

Question 5 [15 Marks]

(i) Public Relations help to inform, educate and persuade media. Write any five points to explain the scope of Public Relations. [5 Marks]

Answer:
1. Media Relations: Building and maintaining positive relationships with newspapers, TV channels, magazines, etc., to get favourable media coverage.
2. Corporate Communication: Communicating effectively with internal stakeholders like employees, shareholders and management to ensure organisational harmony.
3. Crisis Management: Managing communication during crises to maintain the company's image and control damage.
4. Brand Image Building: Shaping the public perception of the company or its products through positive publicity and social initiatives.
5. Community Relations: Building community goodwill by engaging in social welfare programs, environmental activities, or sponsoring community events.

Teacher's Note:
a) List all five points clearly with bold headings.
b) Explain how PR differs from direct advertising by focusing on building mutual understanding.

(ii) Explain the uses of Income and Expenditure Account. [5 Marks]

Answer:
1. Determines Surplus or Deficit: Shows whether the non-profit organisation has a surplus (excess income) or deficit (excess expenditure).
2. Assists in Budgeting: Helps management to prepare budgets for future periods based on past income and expenditure patterns.
3. Monitors Financial Performance: Acts as a tool to analyse the organisation's financial performance over time.

Teacher's Note:
a) Specify that Income and Expenditure Account is prepared by non-trading concerns.
b) Mention that it follows the accrual basis of accounting similar to a Profit and Loss Account.

(iii) Study the pictures given below and describe the movement. [5 Marks]

[Figure: Three panels showing historical protest scenes where villagers, predominantly women, are seen embracing trees to protect them from being felled.]

Answer:
The Chipko Movement.
1. The Chipko Movement was a forest conservation movement in India during the 1970s.
2. Villagers, especially women, hugged trees to prevent them from being cut down by contractors.
3. It highlighted the role of local communities in protecting natural resources.
4. It originated in Uttarakhand (then part of Uttar Pradesh) to protect trees and promote environmental conservation.
5. The movement emphasised sustainable use of forests and ecological balance.

Teacher's Note:
a) Identify the movement correctly from visual cues (people hugging trees).
b) Mention key details such as its origin in Uttarakhand and the role of women.

Question 6 [15 Marks]

(i) Identify the highlighted 'C' stage of the Product Life Cycle given in the image below and specify its any four features. [5 Marks]
[Figure: Bar chart of Product Life Cycle showing stages labeled A (Introduction), B (Growth), C (Maturity - highlighted with dark fill), D (Decline/Saturation), E.]

Answer:
The highlighted 'C' stage is the Maturity Stage.
Features of the Maturity Stage:
1. Peak Sales: Sales volume reaches its highest point due to widespread acceptance in the market.
2. Market Saturation: Most potential customers already own the product, and competition is intense.
3. Price Competition: Companies may reduce prices or offer discounts to retain market share.
4. Profit Stabilisation or Decline: Profits may stabilise or start to decline due to high promotional expenses and price wars.

Teacher's Note:
a) Correctly identify stage C as Maturity from the PLC diagram.
b) List distinct features characterizing market saturation and peak sales.

(ii) On what basis of distinction is Fixed cost differentiated with Variable cost? [5 Marks]

Answer:

Teacher's Note:
a) Tabulate distinctions across multiple clear parameters like definition, nature, and behavior.
b) Give accurate business examples for each cost type.

(iii) What is meant by Compensation Function of Human Resource Management? Explain its activities. [5 Marks]

Answer:
The Compensation Function of HRM involves designing and administering the total rewards employees receive for their work, including wages, salaries, incentives and benefits. Its goal is to attract, retain and motivate employees.
Activities under Compensation Function:
1. Job Evaluation and Wage Structure: Creating a pay scale that reflects job complexity, responsibilities and required skills.
2. Salary Administration: Maintaining internal equity (similar jobs within the company) and external equity (competitiveness in the market).
3. Incentive and Bonus Plans: Designing performance-based rewards (e.g., bonuses, commissions, profit-sharing).
4. Employee Benefits and Perquisites: Offering additional perks (e.g., company car, subsidised meals) to enhance job satisfaction.

Teacher's Note:
a) Define compensation clearly as both financial and non-financial rewards.
b) List key administrative activities involved in maintaining fair wage structures.

Question 7 [15 Marks]

(i) Discuss any two types of Interviews. [5 Marks]

Answer:
1. Structured Interview: A formal type of interview where a set of predetermined questions is prepared in advance by the interviewer. These questions are asked to all candidates in the same order, ensuring consistency and fairness in the selection process. The primary focus is to evaluate the knowledge, skills and abilities of candidates based on specific criteria.
2. Unstructured Interview: A flexible and informal type of interview where no fixed set of questions is followed. The interviewer asks questions spontaneously, depending on the candidate's responses. This type of interview allows for a free-flowing conversation, giving the interviewer the opportunity to assess the candidate's personality, communication skills, creativity and attitude.

Teacher's Note:
a) Explain structured interviews emphasizing standardization and preset questions.
b) Contrast with unstructured interviews focusing on flexibility and conversational depth.

(ii) Explain any five features of Personal Selling. [5 Marks]

Answer:
1. Personal Interaction: Personal selling involves direct, face-to-face interaction between the salesperson and the prospective buyer. This helps in building a personal relationship and understanding the specific needs of the customer.
2. Two-Way Communication: It allows for two-way communication. The salesperson presents the product, and the customer can ask questions, raise objections and seek clarifications, making the process interactive and effective.
3. Customised Approach: In personal selling, the sales message can be tailored according to the individual needs and preferences of the customer. This customisation increases the chances of successful sales.
4. Immediate Feedback: Since the salesperson and the buyer are in direct contact, immediate feedback is available. The salesperson can quickly assess the customer's reaction and modify their approach if necessary.
5. Relationship Building: Personal selling emphasises long-term relationships with customers. A good salesperson not only focuses on immediate sales but also works towards building customer loyalty and trust for future business.

Teacher's Note:
a) Highlight the direct and personal nature of personal selling as its core feature.
b) Emphasize two-way communication and immediate feedback as key advantages over advertising.

(iii) Write short notes on:
(a) The Business Entity Concept
(b) The Going Concern Concept [5 Marks]

Answer:
(a) The Business Entity Concept: This concept states that the business and its owner are two separate entities. According to this concept, all financial transactions are recorded from the business's point of view, not the owner's. The personal assets and liabilities of the owner are kept separate from those of the business.
(b) The Going Concern Concept: This concept assumes that a business will continue to operate indefinitely and is not expected to be closed or liquidated shortly. This principle allows businesses to defer the recognition of certain expenses and revenues until future periods.

Teacher's Note:
a) Clearly distinguish between the owner's personal finance and business finance in the entity concept.
b) Explain the assumption of continuity in operations under the going concern concept.

Question 8 [15 Marks]

(i) Acid rain is essentially an outcome of aggressive industrialisation in the developed countries. In view of the above statement explain any two impacts of Acid Rain on the environment. [5 Marks]

Answer:
1. Damage to Aquatic Life: Acid rain increases the acidity of water bodies like rivers, lakes and ponds. As the pH level of water decreases, it becomes harmful to aquatic life. Fish, amphibians and other aquatic organisms find it difficult to survive in such acidic conditions, leading to a decline in biodiversity and disruption of aquatic ecosystems.
2. Harm to Vegetation and Soil: Acid rain adversely affects plant life by leaching essential nutrients from the soil, such as calcium and magnesium, which are crucial for plant growth. It also damages the leaves and bark of trees, making them more vulnerable to diseases, extreme weather and pests.

Teacher's Note:
a) Explain how industrial sulfur and nitrogen emissions contribute to acid rain formation.
b) Focus on specific environmental impacts like soil nutrient depletion and aquatic damage.

(ii) Give any five differences between Cheque and Bank Draft. [5 Marks]

Answer:

Teacher's Note:
a) Emphasize that a draft is drawn by a bank and guaranteed, whereas a cheque is drawn by an individual account holder.
b) Tabulate differences clearly with appropriate criteria.

(iii) Write short notes on:
(a) Informative Advertising
(b) Automated Teller Machine [5 Marks]

Answer:
(a) Informative Advertising: Informative advertising is a form of advertising used primarily to introduce a new product, service, or idea to the market, providing important information about its features, uses and benefits. Its main objective is to create awareness among potential customers and educate them about the product.
(b) Automated Teller Machine (ATM): An Automated Teller Machine (ATM) is an electronic banking machine that allows customers to perform basic financial transactions without the need for a human teller. ATMs provide a convenient way for customers to withdraw cash, check account balances, transfer funds and deposit money at any time, 24/7.

Teacher's Note:
a) Define informative advertising by its objective of creating product awareness.
b) Highlight the 24/7 convenience and utility of ATMs in modern banking.

Question 9 [15 Marks]

CASE STUDY
With the advancement in technology and the goal to scale its business, JK Tyre & Industries has been working on a two-pronged strategy to add 'significant relevance to its overall business. Along with the mainstream tyres, the Delhi based company is also running a fleet operating management business and a mobility business vertical.
"In the fleet management business, from selling a tyre as a commodity, it becomes a kind of service. We have tied up with 1300 of the 1800 large fleets across India. We provide all the services and the customer pays for the tyre's upfront cost." Anuj Kathuria, India President, JK Tyres, said. "Any fleet of 100 trucks/buses, or more, is considered a 'large fleet.
An initiative like the fleet management service also contributes to sustained relationship with customers, leading to repeat purchases of tyres by them. The customer base of 1300 fleet operators hasn't come easily for JK Tyres, an early mover with such a business intervention in the industry The customer base has been built over the past two decades.
Under the fleet management business, JK Tyres is also offering tyre-as-a-service. It has about 250 pit stops, and close to 100 truck wheel centres, where its services are provided.
The company, which has also developed a tyre with 80% biodegradable materials, says that the 'green tyre is close to a market launch. The tyre major has a target to achieve net zero emissions by 2050.
- auto.economictimes.indiatimes.com, February 9, 2024.
With reference to the above case study answer the following questions:

(i) Analyse the above case study and give any five differences between Product and Service. [5 Marks]

Answer:

Teacher's Note:
a) Connect the distinction to the case where tires are sold both as tangible goods and as service solutions.
b) Ensure all five comparative parameters are clearly defined.

(ii) Explain how 'Industrialisation' and 'Transport' cause ecological damage. [5 Marks]

Answer:
1. Industrialisation: Industrialisation leads to the establishment of factories, which release harmful pollutants such as carbon dioxide, sulphur dioxide and other toxic gases into the atmosphere, causing air pollution. It also results in the discharge of untreated industrial waste into rivers and oceans, leading to water pollution and harming aquatic life. Furthermore, deforestation to set up industries contributes to the loss of biodiversity.
2. Transport: Excessive use of transport vehicles increases the emission of greenhouse gases like carbon dioxide (CO₂) and nitrogen dioxide (NO_x), contributing to air pollution and climate change. Noise pollution is caused by the constant movement of transport vehicles. Over-reliance on fossil fuels leads to depletion of natural resources and oil spills.

Teacher's Note:
a) Highlight air and water pollution as primary environmental impacts of industrialization.
b) Discuss vehicular emissions and resource depletion under transport impacts.

(iii) (a) Mention any three steps taken by the President of JK Tyres to contribute to sustained relationship with customer.
(b) Describe any two steps taken by JK Tyres to develop as a part of fleet management business. [5 Marks]

Answer:
(a) The three steps that were taken by the President of JK Tyres to contribute to sustained relationships with customers are:
1. Fleet Management Service: JK Tyres tied up with large fleet operators, providing tyre services based on the fleet size, ensuring long-term business relationships.
2. Cost-Bearing Model: JK Tyres bear the upfront cost of tyres while the customer pays as per usage, making it convenient and affordable for fleet operators.
3. Widespread Network: The company developed a large customer base and strong service network with pit stops and truck wheel centres, ensuring repeat business and customer loyalty.
(b) The two steps taken by JK Tyres to develop as a part of the fleet management business are:
1. Tie-ups with Fleet Operators: JK Tyres collaborated with 1300 out of 1800 large fleet operators across India, providing tyres-as-a-service, contributing to steady demand.
2. Development of Pit Stops and Wheel Centres: JK Tyres established about 250 pit stops and 100 truck wheel centres across the country, providing continuous service to fleet operators and enhancing customer convenience.

Teacher's Note:
a) Extract answers directly from the provided case study text.
b) Ensure precise extraction of numerical data and strategic steps mentioned by the company president.