ISC Class 12 Commerce Board Exam Question Paper 2025 with Solutions

ISC Class 12 Commerce Board Exam Question Paper with Solutions

SECTION - A

Question 1

(i) In recent years, the street vendors have begun to accept UPI as a mode of payment. The feature of business environment indicated here is: [1 Mark]
(a) inter-relatedness
(b) relativity
(c) diversity
(d) dynamism

Answer: (d) dynamism

The business environment is dynamic because it continuously evolves with new technologies, consumer preferences and government policies. The adoption of Unified Payments Interface (UPI) by street vendors highlights how businesses adapt to new technological advancements, reflecting the dynamic nature of the business environment.

Teacher's Note:
a) Dynamism refers to the ability of the business environment to keep changing continuously.
b) Students must carefully differentiate between dynamism (change over time) and relativity (differing from region to region).

(ii) With reference to dimensions of business environment, select the odd one out from the following. [1 Mark]
(a) Suppliers of raw materials
(b) Changes in technology
(c) Competition with other companies
(d) Change in consumer preferences

Answer: (b) Changes in technology

Suppliers, competitors and consumers form part of specific forces that affect individual enterprises directly, whereas technological changes are general forces affecting all enterprises indirectly.

Teacher's Note:
a) Specific forces affect particular enterprises directly and immediately in their day-to-day working.
b) General forces like technological, social, political, and legal conditions affect all business enterprises.

(iii) In 2021, Arun Singhal, the CEO of India's food regulator, FSSAI said, "Consumers should be aware of the food that they are consuming and that can be ensured through labelling... From November onwards, disclosures about (sodium, sugar and fat) per serving will be mandatory."
(Source (edited): https://m.economictimes.com)
Which consumer rights are being protected by the new regulations of FSSAI? [1 Mark]
(P) Right to Information
(Q) Right to be Heard
(R) Right to Safety
(S) Right to Seek Redressal
(a) Only (P) and (Q)
(b) Only (Q) and (R)
(c) Only (P) and (R)
(d) Only (R) and (S)

Answer: (c) Only (P) and (R)

Labelling provides accurate information about ingredients and nutritional value, protecting the Right to Information, while disclosing sodium, sugar and fat levels helps protect health from harmful substances, upholding the Right to Safety.

Teacher's Note:
a) Right to Information gives consumers the right to get facts about the product.
b) Right to Safety protects consumers against products that are hazardous to life and health.

(iv) Paryavaran Ltd. focuses on sustainable development by following a 'zero waste policy'. [1 Mark]
Which internal factor of micro environment is referred to here?
(a) Mission and objectives
(b) Human resources
(c) Power structure
(d) Customer focus

Answer: (a) Mission and objectives

A company's commitment to sustainable development aligns with its mission and objectives, which guide business strategies.

Teacher's Note:
a) Mission and objectives define the fundamental purpose and direction of the organization.
b) Micro environmental internal factors are controllable elements within the organization.

(v) Which element of directing is shown below? [1 Mark]
[Figure: A person holding hands of others standing in a line, symbolising leadership]
(a) Leadership
(b) Motivation
(c) Supervision
(d) Communication

Answer: (a) Leadership

The image shows a person leading others, guiding them forward while holding their hands, which symbolises leadership, a key element of directing.

Teacher's Note:
a) Leadership involves influencing and guiding employees to achieve organizational goals.
b) Always analyze pictorial representations carefully to identify the core management function or element.

(vi) Identify the organisation and the type of structure shown below. [1 Mark]
[Figure: Flowchart showing President at the top, leading to R&D Manager (with Design, Development, Testing), Finance Manager (with Accounts, Purchase), and Marketing Manager (with Sales, Customer Service)]
(a) Informal organisation and Divisional structure
(b) Informal organisation and Functional structure
(c) Formal organisation and Divisional structure
(d) Formal organisation and Functional structure

Answer: (d) Formal organisation and Functional structure

The structure depicts a formal organization with a clear hierarchy and designated roles, divided into functions like R&D, Finance and Marketing.

Teacher's Note:
a) A functional structure groups activities on the basis of functions like production, finance and marketing.
b) A formal organization is deliberately designed by top management to achieve organizational goals.

(vii) Given below are two statements marked Assertion and Reason. Read the statements carefully and choose the correct option. [1 Mark]
Assertion: Marketing aims to earn profit through customer satisfaction.
Reason: Marketing begins before production of goods and ends with sale.
(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.

Answer: (c) Assertion is true and Reason is false.

Marketing aims to earn profit by satisfying customer needs, but marketing continues even after sales through customer service, making the reason statement false.

Teacher's Note:
a) Marketing encompasses pre-production activities like market research and post-sale customer support.
b) Ensure both statements are evaluated independently before verifying the logical link.

(viii) Study the relation between the first and the second words given below and fill in the fourth word on that basis. [1 Mark]
Universal validity : Science :: Creativity : _________
(a) Positive process : Recruitment :: Negative process : Selection
(b) Positive process : Recruitment :: Negative process : Selection

Answer: (b) Positive process : Recruitment :: Negative process : Selection (Note: Option (a) and (b) in the paper print identically; the correct analogy is Art).

Science is characterized by universal validity, whereas Art is fundamentally based on creativity and personal application.

Teacher's Note:
a) Management as an art requires personalized creative application of existing knowledge.
b) Note that the question maps fundamental characteristics of academic disciplines to management features.

(ix) State whether the following are True or False. [1 Mark]
(a) As a facilitating function of marketing, packaging helps to protect the product.
(b) According to Henri Fayol, the principle of harmony not discord states that there should be healthy cooperation between employees and the employer.
(a) (a) True
(b) False

Answer: (a) True

Packaging plays a vital role in protecting products from damage and contamination during transit, and statement (b) is false because Henri Fayol's principle is Cooperation, Not Individualism (or Principle of Mental Revolution is by F.W. Taylor).

Teacher's Note:
a) Packaging is an important marketing tool that ensures physical protection and branding.
b) Pay close attention to author names associated with specific principles to avoid confusion.

(x) The data given below shows that the capital structure of ABC Ltd. is _________ geared. [1 Mark]

(a) Highly geared

Answer: (a) Highly geared

Gearing refers to the proportion of debt in a company capital structure. Since debt is 60 percent, which exceeds equity at 40 percent, it is highly geared.

Teacher's Note:
a) High gearing implies a large proportion of fixed-interest bearing securities in total capital.
b) Low gearing means equity capital exceeds debt capital.

(xi) The profit of Kriti Ltd. is Rs. 90,000 for the current financial year. Study the data of Kriti Ltd. given below and answer the question that follows. [1 Mark]

_________ and equity shareholders will have a share in Rs. 40,000.

Answer: Retained earnings

Total profit is Rs. 90,000. Less interest on debentures (Rs. 10,000) and preference dividend (Rs. 10,000), leaving Rs. 70,000. Out of this, equity shareholders receive Rs. 30,000 as dividend, leaving Rs. 40,000 as retained earnings.

Teacher's Note:
a) Retained earnings represent undistributed profits kept in reserve for future growth.
b) Always deduct prior charges like interest and preference dividend before determining equity earnings.

(xii) Identify the document shown in the image below. [1 Mark]
[Figure: Image of a bank demand draft showing amount Rs. 1,25,000, payable to Mahendra Singh Maurya]

Answer: Demand Draft

A demand draft is a negotiable instrument issued by a bank directing another bank to pay a specific sum to the specified payee.

Teacher's Note:
a) A demand draft cannot be dishonored for lack of funds as it is prepaid.
b) Identify financial instruments based on key visible terms like 'Demand Draft' and payee details.

(xiii) Pizzas and Shakes, a famous fast-food chain, has been facing stagnant demand. To overcome this, the management decides to offer discounted meals during the forthcoming festival season.
Which element of promotion mix has been used by Pizzas & Shakes? [1 Mark]

Answer: Sales Promotion

Offering discounted meals during a specific festival season is a short-term incentive designed to boost immediate sales, which defines sales promotion.

Teacher's Note:
a) Sales promotion includes tools like discounts, contests and free samples to accelerate sales.
b) Distinguish sales promotion from advertising, which is a long-term persuasive tool.

(xiv) Management is required in all types of organisations and at all levels. Which characteristic of management is highlighted in this statement? [1 Mark]

Answer: Universality

The statement emphasizes that management is pervasive and required across all types of organizations and levels of management.

Teacher's Note:
a) Pervasiveness or universality means management principles apply universally across economic, social and political spheres.
b) Keywords like 'all organizations' and 'all levels' always point to universality.

SECTION - B

2. As a Finance Manager, outline any four factors you would consider while determining working capital needs of the organisation. [4 Marks]

Answer:
1. Nature of Business: Manufacturing businesses need higher working capital than service businesses.
2. Cyclical fluctuations: During boom periods, more working capital is required due to increased production and sales.
3. Credit Policy: If a company offers credit to customers, it will require more working capital.
4. Operating Cycle: A longer production and sales cycle require more working capital.

Teacher's Note:
a) Working capital requirements depend directly on the length of the operating cycle.
b) Ensure all four factors are clearly explained with their proportional impact on working capital.

3. Food and grocery delivery company, Swiggy announced a programme before its Initial Public Offering (IPO). This programme allows employees to buy a portion of their company stock option for a combined total of up to $65 million.
(Source (edited): https://www.business-standard.com)
Identify and explain the financial incentive given to the employees. [4 Marks]

Answer:
1. The financial incentive given is Employee Stock Option Plan (ESOP).
2. Under ESOP, employees are offered company shares at a set price lower than market price.
3. It acts as a powerful motivational tool to retain talent and boost commitment.
4. It encourages long-term association with the company's growth.

Teacher's Note:
a) ESOP bridges employee and employer interests by making employees co-owners.
b) Clearly state the exact name of the incentive before explaining its features.

4. Siddhi works in a private company. One of her main responsibilities is to develop the company's goals and strategies.
What managerial level is Siddhi employed at? Name three more responsibilities that she needs to fulfil at this level. [4 Marks]

Answer:
1. Siddhi is employed at the top level of management.
2. Setting Organizational Goals and Strategies: Defining long-term vision, mission and objectives.
3. Decision-Making: Making critical decisions related to business expansion, mergers, or resource allocation.
4. Representing the Company: Interacting with external stakeholders like investors, government and the public.

Teacher's Note:
a) Top management includes positions like CEO, Board of Directors and Managing Director.
b) Strategic planning and resource coordination are exclusive responsibilities of top management.

5. (i) When employees are specialised in their tasks, their efficiency increases resulting in an increased output. Name and briefly explain the principle given by Henri Fayol that supports the above statement. [2 Marks]

Answer:
1. Principle of Division of Work.
2. According to this principle, work should be divided into small tasks and assigned to employees based on their specialization and skills. This enhances efficiency, reduces wastage of effort and leads to increased productivity as employees become experts in their respective tasks.

Teacher's Note:
a) Division of work leads to specialization, which is essential for maximum efficiency.
b) Mention both the name of the principle and its core outcome to secure full marks.

(ii) Some employees strive to fulfil their individual goals rather than achieving the objectives of the organisation.
Which principle of Henri Fayol can be applied to change the mindset of such employees? Briefly explain this principle. [2 Marks]

Answer:
1. Principle of Subordination of Individual Interest to General Interest.
2. This principle emphasizes that the interests of the organization should take precedence over individual interests. If employees focus only on personal goals, it can hinder organizational objectives. Management should ensure that employees align their personal goals with the company's mission.

Teacher's Note:
a) Individual interests must be subordinated to general interest for harmonious organizational growth.
b) Ensure the definition highlights the supremacy of organizational goals over personal motives.

6. (i) Rajan has a small size business. He aims to increase his market share by 25% in the next three years.
Specify the type of plan chosen by Rajan. Illustrate any three of its features. [4 Marks]

Answer:
1. The type of plan chosen by Rajan is a Strategy.
2. Long-Term Perspective: Strategies are designed to achieve goals over an extended period, spanning multiple years, as seen in Rajan's aim to increase market share by 25% in three years.
3. Competitive Advantage: A strategy helps a business gain an edge over competitors by identifying strengths, weaknesses, opportunities and threats (SWOT analysis) and taking appropriate actions.
4. Guides Decision-Making: Strategies provide direction for decision-making at various levels of the organization, ensuring all efforts align with achieving the set objectives.

Teacher's Note:
a) A strategy is a comprehensive plan formulated to achieve long-term objectives.
b) Always connect features to the specific scenario provided in the question.

OR

(ii) In an organisation, there exists a network of social relationships among employees of different departments.
Identify the type of organisation referred to here. State any three of its merits. [4 Marks]

Answer:
1. The organization referred to is Informal Organization.
2. Improves Communication: Information flows quickly through informal channels, enabling faster decision-making and issue resolution.
3. Enhances Teamwork: Strengthens relationships among employees, fostering collaboration and mutual support across different departments.
4. Increases Job Satisfaction: Provides employees with a sense of belonging and social support, leading to higher morale and job satisfaction.

Teacher's Note:
a) Informal organizations arise naturally within a formal structure based on personal interactions.
b) List distinct merits without confusing them with formal organizational advantages.

7. You are the Manager at Keya Pvt. Ltd. You have to select a Chartered Accountant for the company.
Explain the next four steps in the Selection Procedure that you will follow after receiving the application blank. [4 Marks]

Answer:
1. Conducting Tests: Administering skill-based, technical, or aptitude tests to evaluate candidates' expertise in accounting and finance.
2. Interview Process: Conducting personal or panel interviews to assess the candidate's knowledge, problem-solving ability, and suitability for the role.
3. Reference and Background Check: Verifying past employment records, certifications and references to ensure authenticity and credibility.
4. Selection Decision: Applicants who clear Selection Tests, Employment Interview and Reference checks are selected. Prior to taking final selection decision, the views of the concerned manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee.

Teacher's Note:
a) The selection process is sequential and eliminates unqualified candidates at each step.
b) Detail the exact four steps immediately following the application blank stage.

8. Annie purchased a car worth Rs. 1 crore from a showroom on May 7, 2023. Within few days, she noticed that its speedometer was not giving accurate results.
Which consumer forum can Annie approach to file a complaint? Suggest any three remedies that the consumer forum can provide to Annie. [4 Marks]

Answer:
1. Since the car costs Rs. 1 crore, her case falls within the range of Rs. 50 lakh to Rs. 2 crore, so she should approach the State Commission (SCDRC).
2. Replacement of the Product: The showroom may be ordered to provide a new car.
3. Refund of the Purchase Amount: Annie may receive a full refund if the defect is irreparable.
4. Compensation for Loss or Inconvenience: She can claim damages for mental distress and additional costs incurred.

Teacher's Note:
a) Jurisdiction for State Commissions extends from Rs. 50 lakh up to Rs. 2 crore.
b) Remedies under the Consumer Protection Act aim to compensate consumers for loss or injury suffered.

9. (i) What is product mix? Explain any three elements of product mix. [4 Marks]

Answer:
1. Product Mix refers to the combination of various features relating to the product or service that the company offers to sale. It involves functions like planning, developing and providing the right type of products and services for the consumers.
2. Product Width: It refers to the number of product lines a company offers. A company with multiple product lines (e.g., electronics, clothing and home appliances) has a wide product mix.
3. Product Depth: It indicates the number of variations within a product line, such as different sizes, colours, models, or features of a particular product. For example, a car manufacturer may offer multiple versions of the same model with different engine capacities.
4. Product Consistency: It refers to the degree of similarity between different product lines in terms of production, distribution and usage. A company with a high level of consistency offers products that complement each other, such as a brand selling both shampoos and conditioners.

Teacher's Note:
a) Product mix encompasses all product lines and items offered by a seller.
b) Distinguish clearly between width, depth and consistency elements.

OR

(ii) Highlight the importance of Marketing by giving any four reasons. [4 Marks]

Answer:
1. Creates Awareness: Helps in promoting products to potential customers.
2. Increases Sales and Revenue: Attracts customers and boosts business growth.
3. Builds Brand Reputation: Strengthens customer trust and loyalty.
4. Facilitates Consumer Satisfaction: Ensures products reach the right market, fulfilling consumer needs.

Teacher's Note:
a) Marketing acts as a vital link between producers and consumers.
b) Provide four distinct economic and organizational benefits of marketing.

SECTION - C

Question 10

(i) Name and explain the technique used by a business organisation to diagnose and analyse its micro and macro environment. [5 Marks]

Answer:
1. The technique used is SWOT Analysis.
2. Strengths (S): Internal positive factors, such as strong brand reputation, financial stability, or skilled employees.
3. Weaknesses (W): Internal negative factors, like poor management, outdated technology, or weak marketing strategies.
4. Opportunities (O): External favourable conditions that a business can take advantage of, such as market expansion, technological advancements, or policy changes.
5. Threats (T): External unfavourable conditions that may hinder business growth, such as competition, changing regulations, or economic downturns.

Teacher's Note:
a) SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats.
b) Categorize strengths and weaknesses as internal, and opportunities and threats as external.

(ii) Discuss how Coordination is embedded in Planning, Organising and Staffing functions of management. [3 Marks]

Answer:
1. Planning: Coordination aligns objectives across departments, ensuring smooth goal-setting and strategy execution.
2. Organising: It ensures that resources and roles are assigned effectively to avoid duplication or conflicts.
3. Staffing: Coordination ensures that employees are placed in appropriate roles and trained to meet organizational goals.

Teacher's Note:
a) Coordination is considered the essence of management, binding all functions together.
b) Explain how coordination acts as a common thread through planning, organizing and staffing.

Question 11

(i) Ramanpreet is a cautious investor who wants to invest Rs. 1,00,000 for ten years in a debt security offered by a company.
Which debt security should Ramanpreet invest in? Explain any four of its features. [5 Marks]

Answer:
1. Ramanpreet should invest in Debentures.
2. Fixed Interest Rate: Investors earn a pre-determined interest rate over the tenure.
3. Secured Investment: Debentures are often backed by company assets, reducing risk.
4. No Ownership Rights: Debenture holders are creditors, not owners, and do not participate in company management.
5. Repayment on Maturity: The principal amount is repaid after a fixed tenure, making it a secure long-term investment.

Teacher's Note:
a) Debentures provide fixed returns with lower risk compared to equity shares.
b) Highlight that debenture holders are creditors and enjoy priority in repayment.

(ii) Differentiate between Credit card and Debit card on any three basis. [3 Marks]

Answer:

Teacher's Note:
a) Credit cards involve borrowing from the issuer, whereas debit cards draw directly from personal deposits.
b) Present differences clearly in a tabular format with corresponding bases.

OR

(i) A company retaining profits rather than distributing them as dividends can be beneficial but also has drawbacks.
Three Merits:
1. Funds for Expansion: Retained earnings provide a cost-effective way to finance growth.
2. No Interest Obligation: Unlike loans, retained earnings do not require repayment or interest.
3. Improves Financial Stability: Help build reserves, strengthening the company's financial health.
Two Demerits:
1. Dissatisfaction Among Shareholders: Investors may expect dividends and feel neglected if profits are not shared.
2. Opportunity Cost: The retained money could have been invested elsewhere for potentially higher returns. [5 Marks]

Answer:
1. Retained earnings act as an internal source of finance for expansion without dilution of control.
2. The demerits include risk of shareholder dissatisfaction due to low dividend payouts and potential suboptimal reinvestment returns.

Teacher's Note:
a) Retained earnings balance internal financing needs with shareholder dividend expectations.
b) Ensure both merits and demerits are explicitly enumerated as requested by the question.

(ii) Digital Banking: It refers to the use of online and electronic platforms to provide banking services without requiring customers to visit a physical branch. It offers various services such as fund transfers, bill payments, loan applications and investment management through internet banking and mobile apps. Digital banking ensures convenience by allowing users to access their accounts 24/7 from anywhere. It also enhances security through encryption and multi-factor authentication. Additionally, it is cost-effective, reducing operational expenses for banks and lowering service charges for customers. By promoting paperless transactions and improving efficiency, digital banking has revolutionised the financial sector, making banking faster, safer and more accessible. [3 Marks]

Answer:
1. Digital banking provides round-the-clock (24/7) accessibility to financial services from anywhere.
2. It enhances transaction security via encryption and multi-factor authentication.
3. It lowers operational costs for banks and reduces service charges for customers through paperless processes.

Teacher's Note:
a) Digital banking transforms traditional banking by eliminating physical branch visit dependencies.
b) Extract distinct features directly from the provided passage accurately.

Question 12

(i) Factors influencing the price of a product: [5 Marks]
1. Cost of Production: The total cost incurred in producing a product, including raw materials, labour and overheads, directly affects its price. Higher production costs lead to higher prices.
2. Demand and Supply: If demand is high and supply is limited, prices tend to rise. Conversely, if supply exceeds demand, prices decrease.
3. Competition in the Market: The pricing strategy of competitors influences a company's pricing decisions. In a highly competitive market, businesses may lower prices to attract customers.
4. Government Regulations and Taxes: Government policies such as GST, import duties and price controls can impact product pricing.
5. Consumer Perception and Brand Value: Products with strong brand value and consumer trust can command higher prices compared to lesser-known brands.

Answer:
The factors influencing product pricing include production cost, market demand and supply, competitive landscape, government regulations, and consumer brand perception.

Teacher's Note:
a) Pricing decisions are critical as they directly impact revenue and market positioning.
b) List key economic and non-economic factors affecting pricing.

(ii) Three features of a service that is offered for sale: [3 Marks]
1. Intangibility: Services cannot be seen, touched, or stored like physical products. They are only experienced when provided (e.g., banking, education, healthcare).
2. Inseparability: Services are produced and consumed simultaneously. For example, a doctor's consultation is provided and consumed at the same time.
3. Variability (Heterogeneity): The quality of a service may vary based on who provides it, when, where and how. For example, the experience at a restaurant can differ based on the chef or the staff.

Answer:
Services are characterized by intangibility, inseparability and variability, distinguishing them from physical goods.

Teacher's Note:
a) The unique characteristics of services stem from their non-physical nature.
b) Provide clear examples for each service feature to score full marks.

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 organisation. 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) Explain any two steps of Controlling highlighted in the above case. [2 Marks]

Answer:
1. Comparing Actual Performance with Standards: In this step, actual performance is compared with the standards. Such comparison reveals as to what extent the performance deviates from the standard. The company had planned to increase its profit margin by 30%, but due to theft by employees, the target was not achieved. This indicates that actual performance was compared with the set target, revealing a deviation.
2. Taking Corrective Action: After detecting errors and defects in performance remedial actions are taken to prevent deviations in future. To address the issue of theft, the Board of Directors introduced a "zero tolerance" policy, installed CCTV cameras and implemented controls like CCTV surveillance, the company aimed to prevent theft and improve profit margins.

Teacher's Note:
a) Controlling involves measuring performance against standards and taking corrective measures.
b) Relate the steps directly to incidents mentioned in the case study.

(ii) With reference to the above case, mention any two objectives of Communication. [2 Marks]

Answer:
1. Ensuring Clarity and Understanding: Communication ensures that messages are clear, reducing misunderstandings and ensuring that information is correctly interpreted by the receiver. Senior managers communicated the zero-tolerance policy for theft and informed employees about the implementation of CCTV cameras.
2. Facilitating Decision Implementation: Effective communication helps in conveying decisions and policies, ensuring smooth execution and compliance within an organisation. In the given case, communication helped ensure that employees followed the new policies and penalties were imposed accordingly.

Teacher's Note:
a) Communication is essential for transmitting directives and aligning organizational actions.
b) Ground the objectives in the specific administrative actions taken in the passage.

(iii) Provide any four points to highlight the importance of Controlling. [4 Marks]

Answer:
1. Helps in Achieving Organisational Goals: When the plans are made in the organisation these are directed towards the achievement of organisational goals and controlling function ensures that all the activities in the organisation take place according to plans.
2. Reduces Wastage and Misuse of Resources: Effective communication helps in implementing control measures, ensuring optimal use of resources and minimising losses due to wastage or misuse. It ensured that expensive products were safeguarded, reducing financial losses in XYZ Company.
3. Ensures Discipline and Accountability: Controlling helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. The imposition of penalties on employees guilty of theft created a sense of accountability and discipline.
4. Facilitates Coordination: Control facilitates coordination of the activities of various units. It provides unity of direction to all the departments. Through the Human Resource department, the controlling measures were integrated into the employee handbook, ensuring uniformity in policy enforcement.

Teacher's Note:
a) Controlling ensures that operations conform to predetermined standards and plans.
b) Provide four comprehensive points demonstrating the organizational value of control.