ISC Class 12 Commerce Sample Paper 2022 with Solutions

SECTION A - 8 MARKS

Question 1

(i) How many rights of consumers are given in the Consumer Protection Act 2019? [1]
(a) 4
(b) 3
(c) 6
(d) 5

Answer: (c) 6

The Consumer Protection Act, 2019 guarantees 6 basic rights to consumers.

Teacher's Note:
a) Recall that the Consumer Protection Act 2019 expanded consumer rights to include six specific protections.
b) Do not confuse this with the 1986 Act which originally specified six rights as well, though the updated Act strengthened provisions.

(ii) Assertion: Labelling, as a function of marketing, acts as a silent salesman. [1]
Reason: Labelling helps in the promotion of the products by attracting the attention of customers and providing required information.
(a) Both Assertion and Reason are true and Reason is the correct explanation for assertion.
(b) Both Assertion and Reason are true and Reason is not the correct explanation for Assertion.
(c) Assertion is true but Reason is false.
(d) Assertion is false but Reason is true.

Answer: (a) Both Assertion and Reason are true and Reason is the correct explanation for assertion.

Attractive labelling grabs customer attention at the point of purchase and communicates product details effectively, thus acting as a silent salesman.

Teacher's Note:
a) Understand how packaging and labelling serve promotional roles in self-service retail environments.
b) Ensure you check whether the reason directly justifies the assertion before selecting option (a).

(iii) Grouping of activities based on product line is a part of: [1]
(a) Functional organisation
(b) Divisional organisation
(c) Delegated organisation
(d) Autonomous organisation

Answer: (b) Divisional organisation

Divisional structure divides the enterprise into autonomous units based on major product lines or geographical regions.

Teacher's Note:
a) Functional structure groups activities by major functions like production, marketing, and finance.
b) Divisional structure is ideal for multi-product or large enterprises dealing in diverse lines.

(iv) Which of the following is not true about formal organisation? [1]
(a) They are deliberately planned and created by management.
(b) They are stable and predictable.
(c) Violation of rules in a formal organisation may lead to penalties.
(d) Leaders are chosen.

Answer: (d) Leaders are chosen.

In a formal organisation, positions and authority are assigned by management, whereas leaders in informal groups emerge naturally.

Teacher's Note:
a) Formal organisations follow a defined hierarchy and rules set by management.
b) Informal groups choose or accept their own leaders based on interpersonal relationships.

(v) The process of manning various jobs in the organisation with the right person is known as _______________. [1]

Answer: staffing

Staffing is the managerial function concerned with obtaining, utilizing, and maintaining a satisfactory workforce.

Teacher's Note:
a) Staffing includes recruitment, selection, training, development, and appraisal.
b) Write exact terminology as defined in business studies textbooks.

(vi) State whether the following statements are True or False.
(a) Planning and Controlling are interrelated. [1]

Answer: True

Planning provides the standards for controlling, while controlling provides information that helps in better future planning.

Teacher's Note:
a) Planning is looking ahead and controlling is looking back, making them inseparable twins of management.
b) Clearly state True or False before giving the justification.

(b) Rational barrier is one of the types of barriers in the process of Communication. [1]

Answer: False

Rational barrier is not a recognized category of communication barriers; typical barriers include semantic, psychological, organisational, and personal barriers.

Teacher's Note:
a) Memorize the standard classifications of communication barriers.
b) Do not confuse fabricated terms with official management concepts.

(vii) A popular brand of toothpaste has 20% discount mentioned on the package. Name the element of promotion. [1]

Answer: Sales Promotion

Offering a percentage discount is a short-term incentive designed to encourage immediate purchase.

Teacher's Note:
a) Sales promotion includes tools like discounts, rebates, contests, and free samples.
b) Distinguish clearly between advertising, personal selling, public relations, and sales promotion.

SECTION B - 12 MARKS

Question 2 [2]
Marketing and Selling are synonymous terms. Do you agree? Give reasons.

Answer:
No, marketing and selling are not synonymous. Selling is only a part of the wider process of marketing. While selling focuses mainly on transferring title and possession of goods from seller to buyer to maximize sales volume, marketing encompasses a comprehensive set of activities including identifying customer needs, product planning, pricing, promotion, and achieving long-term customer satisfaction.

Teacher's Note:
a) State a clear "No" upfront before explaining the conceptual differences.
b) Emphasize that selling focuses on the product and seller needs, whereas marketing focuses on customer satisfaction.

Question 3 [2]

(i) State two qualities of a good leader. [2]

Answer:
1. Initiative: A good leader has the courage and ability to take the initiative rather than waiting for opportunities to come.
2. Decisiveness: A leader should be firm, objective, and unbiased in forming opinions and judgments based on facts.

Teacher's Note:
a) List any two distinct leadership qualities such as integrity, communication skills, empathy, or self-confidence.
b) Briefly explain each quality to secure full marks.

OR

(ii) Give two objectives of Communication. [2]

Answer:
1. To convey information regarding policies, procedures, and instructions between superiors and subordinates.
2. To achieve coordination by synchronizing and integrating tasks and activities across departments efficiently.

Teacher's Note:
a) Highlight key objectives like information sharing, motivation, and coordination.
b) Keep points crisp and directly address the requirement of the question.

Question 4 [2]
State two reasons to emphasize the importance of Controlling as a function of management.

Answer:
1. Decision making: Controlling enables managers to make corrective adjustments and decisions consistent with organizational goals.
2. Coordination: It establishes equilibrium between business efforts and desired results across all departments.

Teacher's Note:
a) Explain how controlling measures actual performance against standards.
b) Mention standard points like judging accuracy of standards or ensuring efficient resource use.

Question 5 [2]
The employees of ABC co. have formed a Dramatics club for their recreation. Name the type of organisation formed by the and state one of the features of such an organisation.

Answer:
The employees have formed an informal organisation. One of its main features is voluntary membership, where inter-relationships among members develop spontaneously without rigid formal structures.

Teacher's Note:
a) Identify informal organization correctly from the given case context.
b) State valid features such as absence of written rules, social satisfaction, or spontaneous origin.

Question 6 [2]
What is pre-requisite to Selection? Which function of management ensures the right person at the right job?

Answer:
Recruitment is the prerequisite to selection because it generates a pool of eligible candidates for job vacancies. The staffing function of management ensures the right person is placed at the right job.

Teacher's Note:
a) Clearly link recruitment as the positive process and selection as the negative or choosing process.
b) Identify staffing as the overarching managerial function.

Question 7 [2]
Which function of management is often referred to as the essence of management and binds all the other functions? Justify its significance in the function of Planning.

Answer:
Coordination is referred to as the essence of management and binds all other functions. In planning, coordination enables managers to determine required activities and resources harmoniously, integrating various departmental plans through mutual discussion.

Teacher's Note:
a) Note that coordination is required at every stage of management, hence called its essence.
b) Ensure you specifically justify its role in planning as requested in the prompt.

SECTION C - 20 MARKS

Question 8 [4]

(i) The demand for leather will be derived from the demand for leather purses and other leather items in the market.
The above statement brings forth the characteristics of one of the categories of the products. Name the category and state three other characteristics of this category of product. [4]

Answer:
The category of product is Industrial Products. Other characteristics include:
1. Limited buyers: Industrial products have a limited number of buyers compared to consumer goods.
2. Short distribution channels: Channels of distribution for industrial goods are typically direct or short due to limited buyers.
3. High technical complexity: These goods often require technical specifications, after-sales service, and professional negotiation.

Teacher's Note:
a) Identify industrial goods correctly based on derived demand.
b) List distinct characteristics such as bulk purchase or professional buying behavior.

OR

(ii) Palak went to a shop to buy hair oil. The shopkeeper forced her to buy a particular brand of hair oil from various available brands, irrespective of the willingness of Palak.
Which right of Palak, as a consumer, has been violated and where can she file a case against the shopkeeper? Name the two other rights of the consumer. [4]

Answer:
Palak's Right to Choose was violated. She can file a case against the shopkeeper in the District Commission under the Consumer Protection Act, 2019. Two other consumer rights include:
1. Right to safety against hazardous goods and services.
2. Right to be informed about quality, quantity, potency, purity, standard, and price.

Teacher's Note:
a) Link the forced purchase directly to the violation of the Right to Choose.
b) Specify the appropriate redressal forum (District Commission) as per the updated pecuniary limits of the 2019 Act.

Question 9 [4]
Why is delegation an important management tool?

Answer:
Delegation of authority is important for the following reasons:
1. Reduction of workload: It relieves top executives from routine tasks so they can focus on vital strategic decisions.
2. Quick decision-making: Subordinates are granted authority to decide routine matters locally without constant escalation.
3. Training and development: It prepares subordinates for higher managerial roles by allowing them to make independent decisions.
4. Better relations: It fosters clear authority-responsibility relationships, reducing role conflict between superiors and subordinates.

Teacher's Note:
a) Define delegation briefly before listing its significance.
b) Provide at least four clear points with headings for a 4-mark question.

Question 10 [4]
Briefly explain the meaning of the following terms:

(i) Span of control [2]

Answer:
Span of control refers to the number of subordinates who can be managed effectively and efficiently by a single superior. A wider span means fewer management levels, while a narrow span creates more hierarchical layers.

Teacher's Note:
a) Emphasize the managerial limit on direct supervision.
b) Mention its organizational implications briefly.

(ii) Management by exception [2]

Answer:
Management by Exception (MBE) is a control technique where only significant deviations exceeding permissible limits are reported to higher management, while minor variances are handled at lower levels, saving executive time.

Teacher's Note:
a) Highlight that top management focuses only on critical exceptions.
b) Explain how it conserves valuable time for senior managers.

Question 11 [4]
Explain any four External sources of recruitment.

Answer:
1. Direct recruitment at factory gate: A notice is placed on the enterprise notice board for casual or unskilled vacancies.
2. Advertisement: Publishing vacancies in newspapers and professional journals to attract qualified personnel.
3. Management consultants: Third-party recruitment agencies that maintain a databank of job seekers and help place professional staff.
4. Campus recruitment: Partnering with educational institutions and universities to hire fresh graduates for entry-level positions.

Teacher's Note:
a) List standard external sources clearly with brief descriptions.
b) External sources bring fresh talent and wider choice to the organization.

Question 12 [4]
Read the given passage carefully and answer the following questions.
A reputed publishing company is planning to open new showrooms in some big cities in North India. The company wishes to invite celebrity novelists to inaugurate their new outlets. It also plans to invite other celebrities from the literary world and make new book releases before August. Introductory offers will be given in the form of price reductions, limited edition of autographed copies and discount coupons.

(i) Identify the promotional tools adopted by the company. [2]

Answer:
The company has adopted Sales Promotion tools (price reductions, discount coupons, limited edition autographed copies) and Public Relations tools (inviting celebrity novelists and literary figures for inaugurations and book releases).

Teacher's Note:
a) Accurately categorize price cuts and coupons under sales promotion.
b) Identify celebrity inaugurations as public relations activities.

(ii) In what way do the promotional tools adopted by the company generate sales? [2]

Answer:
1. Price reductions and discount coupons attract immediate customer attention and incentivize prompt purchasing.
2. Celebrity inaugurations create positive brand image, generate buzz, and attract large crowds to the new showrooms, boosting short-term and long-term sales.

Teacher's Note:
a) Explain the direct impact of promotional incentives on consumer buying behavior.
b) Link PR efforts to enhanced brand reputation and customer footfall.