ISC Commerce 2011 Class-12 Previous Year Question Papers

ISC Commerce 2011 Class-12 Previous Year Question Papers Solved for practice. Step by step Solutions with Questions of Part-1 and 2. ISC Commerce 2011 Class-12 Previous Year Question Papers By the practice of Commerce 2011 Class-12 Solved Previous Year Question Paper you can get the idea of solving.

Try Also other year except ISC Commerce 2011 Class-12 Solved Question Paper of Previous  Year for more practice. Because only ISC Commerce 2011 Class-12 is not enough for complete preparation of next council exam. Visit official website CISCE for  detail information about ISC Class-12 Commerce.

ISC Commerce 2011 Class-12 Previous Year Question Papers Solved

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Maximum Marks: 80
Time allowed: Three hours

  • Candidates are allowed additional 15 minutes for only reading the paper. They must NOT start
    writing during this time.
  • Answer Question 1 from Part I and seven questions from Part II.
  • The intended marks for questions are given in brackets [ ].

Part – I (20 Marks)

Answer all questions.

ISC Commerce 2011 Class-12 Previous Year Question Papers Solved

Question 1.
Answer briefly each of the questions (i) to (xv). [15 × 2]
(i) State two advantages of a joint-stock company.
(ii) Mention the steps necessary for the incorporation of a joint-stock company.
(iii) What are the qualification shares?
(iv) What is the statutory requirement regarding the number of Directors of a Public Limited Company?
(v) What is meant by Balanced Mutual Funds?
(vi) What is meant by Universality of Management?
(vii) Give two advantages of press media over audio-visual media of advertising.
(viii) What is the Principle of Equity, as laid down by Henri Fayol?
(ix) Mention any two specific differences between selling and marketing.
(x) Outline the steps involved in the process of communication.
(xi) Write two objectives of a Prospectus of a company.
(xii) How is cash credit different from a loan?
(xiii) Briefly describe any two aims of sales promotion.
(xiv) Explain the meaning of buying and assembling as a function of marketing.
(xv) Mention two circumstances under which a private limited company is deemed to be a public limited company.
Answer 1:

(a) Joint-stock companies shares are freely transferable. All shareholders are free to transfer their shares without the consent of anyone.
(b) The liability of the members of a Joint-stock co.are limited to the face value of the shares they possess or to the amount of guarantee accepted by them.

(ii) The steps necessary for the incorporation of a joint-stock co. are threefold. Initially, a necessary document has to be prepared and filed, this is followed by payment of necessary fees and lastly by obtaining the certificate of incorporation.

(iii) Qualification shares are the no. of shares that the first directors of the company have to subscribe and pay for. The qualification shares taken by the directors is prescribed in the Articles.

(iv) The size of the Board of Directors varies from company to company however under the Companies Act, the minimum no. of directors for a Public Limited Co. is (3) Three.

(v) Mutual funds that invest in equity shares, as well as bonds, are known as Balanced Mutual Funds. The idea is to provide both growth and income benefits to investors.

(vi) According to F. W. Taylor, the fundamental principles of management are applicable to all human activities and all types of organisation. Managerial knowledge can be transferred from one organisation to another.

(vii) While press media of Advertising has a wide circulation, audio-visual media has a limited circulation. While the cost of press media is moderate, the cost of audiovisual media is high.

(viii) The principle of equity as laid down by Henri Fayol states that there should be equity in dealing with subordinates. There should be no discrimination made between employees. Favouritism should be avoided.

(ix) Marketing is a wide concept including a host of activities while selling is a narrow concept and is a part of marketing. Marketing focus is on the needs of the buyer. While the focus of selling is on the needs of the seller.

(x) The steps involved in the process of communication are:

  • Sender – The person sending the message.
  • Message – It’s the subject matter of communication.
  • Encoding – The matter has to be translated into a mutually known language,
  • Channel – A medium has to be chosen to send the message.
  • Receiver – The person who is supposed to receive the message.
  • Decoding – Interpreting the message to understand it.
  • Feedback – It completes the process of communication.

(xi) Two objectives of a prospectus of a company :
(a) To provide information about the company to the public so that they may be attracted to invest in the company’s shares or debentures.
(b) To let the investors know the terms and conditions as well as the guidelines with regards to the company’s shares and other instruments on offer.


(a) In case of a loan, a specified amount is sanctioned by the bank which the borrower may
withdraw in Lumpsum or by cheques against the sum. In case of cash credit, the bank places the specified amount to the credit of the borrower, the borrower draws the money as and when required.
(b) Interest on the loan is charged on the full amount used or not used. Interest on cash credit is charged only on the amount actually used by the borrower.

(xiii) Two aims of sales promotion are:

  • To create demand, to arouse interest in the buyer so that the interest may be converted to a desire for the product ending in the sale of the product.
  • To stabilise sales earlier demand must be sustained, these activities reassure the customers about the quality and price of the product and helps in facing competition.

(xiv) Buying is the first step in the process of marketing. It means the procurement of raw materials, components and finished products. It involves several activities such as selecting the source of supply, ascertaining the suitability of goods and negotiating the terms of purchase. Assembling begins after the goods have been purchased. It involves the collection of goods already purchased from different sources at once commonplace. It facilitates standardisation and grading.

(xv) A Private limited company is deemed to be a public limited company under the following circumstances:

  • Where a private company holds 25% or more of the paid-up share capital of a public company.
  • Where the average sales turnover of a private company for the last three years is more than five crore rupees.

Part – II (60 Marks)
Answer any five questions

ISC Commerce 2011 Class-12 Previous Year Question Papers Solved

Question 2.
(a) Explain in brief, any four advantages of a multinational company. [4] (b) The Memorandum is considered as the prime document in company formation. Give three reasons to justify this statement. [6] Answer 2:
(a) The merits of a Multinational company may be stated as follows:
(i) Research and development activities: Multinational corporations have greater capability for research and development activities in comparison to national companies. Multinationals survive in the international market through their advanced research and development activities.

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