ISC Commerce 2014 Class-12 Previous Year Question Papers

ISC Commerce 2014 Class-12 Previous Year Question Papers Solved for practice. Step by step Solutions with Questions of Part-1 and 2. By the practice of Commerce 2014 Class-12 Solved Previous Year Question Paper you can get the idea of solving.

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ISC Commerce 2014 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 2014 Class-12 Previous Year Question Papers Solved

Question 1.
Answer briefly each of the questions (i) to (x). [10 × 2]
(i) What is the meaning of business environment?
(ii) Enumerate the main forms in which financial assistance from a commercial bank may be available.
(iii) Write any two features of principles of management.
(iv) What is factoring?
(v) Distinguish between gross working capital and net working capital.
(vi) State any two points of distinction between recruitment and selection.
(vii) Differentiate between bearer debentures and registered debentures.
(viii) In the context of right shares, bring out the meaning of pre-emptive right.
(ix) What is marketing research?
(x) Mention any two specific differences between product and service.
Answer 1:
(i) A business organization cannot exist a vacuum. It needs living persons, natural resources and places and things to exist. The sum of all these factors and forces is called the business environment.

(ii) Bank provides financial assistance in the following forms :

  • Loans and Advances to Priority and Non-Priority Sectors
  • Cash Credits to businessmen
  • Bank Overdrafts to businessmen and individuals
  • Discounting of Bills

(iii) (a) Principles of management are universal. They are applicable to all kinds of organizations- business and non-business. They are applicable to all levels of management.
Principles of management are flexible.
(b) Management principles are dynamic guidelines and not static rules.
(c) There is sufficient room for managerial discretion i.e., they can be modified as per the requirements of the situation.


(iv) Factoring is a transaction in which a business sells its accounts receivable, or invoices, to a third party commercial finance company, also known as a “factor.” This is done so that the business can receive cash more quickly than it would be waiting 30 to 60 days for a customer payment. Factoring is sometimes called “accounts receivable financing.”


Gross Working Capital Net Working Capital
Gross working capital is the sum of current assets of a company and does not account for current liabilities. Networking capital is the difference between current assets and current liabilities.
Net Working Capital = Current Assets Current Liabilities
It does not take into account the liabilities of the company and as such is not a true indicator of the financial health of a company. It reflects operational efficiency and the ability to generate more sales.


Recruitment Selection
Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.
Recruitment is a positive process i.e., encouraging more and more employees to apply. Selection is a negative process as it involves the rejection of the unsuitable candidates.


Bearer Debentures Registered Debentures
Bearer debentures are not recorded in the company’s debenture-holders’ register. Registered debentures are recorded in the company’s debenture-holders’ register with full details of every debenture holder.
Bearer debentures are negotiable. Registered debentures are not negotiable.

(viii) A privilege extended to select shareholders of a corporation that will give them the right to purchase additional shares in the company before the general public has the opportunity by the event there is a seasoned offering. A preemptive right is written in the contract between the purchaser and the company but does not function like a put option.

(ix) Marketing research is the process of planning, collecting and analyzing data relevant to a marketing decision. Marketing research is a broader term including market research Marketing research is concerned with all the major functions of marketing. Market research is primarily concerned with knowing the capacity of the market to absorb a particular product Marketing research is not only concerned with the jurisdiction of the market but also covers nature of the market, product analysis, sales analysis, time, place and media of advertising, personal selling and marketing intermediaries and their relationships etc.


Product Service
A product is tangible – means it can be seen and touched. Service is intangible – means it cannot be seen and touched.
A product is durable and can be stored. Service cannot be stored. It can be produced and consumed.

Part – II (60 Marks)
Answer any five questions

ISC Commerce 2014 Class-12 Previous Year Question Papers Solved

Question 2.
(a) Explain why management is considered to be an art. [4] (b) State and explain any four principles of E W. Taylor. [8] Answer 2:
(a) Art refers to the way of doing specific things: it indicates how an object can be achieved.
In the words of George R. Tern. “Art is bringing about a desired result through the application of skill.” Art is, thus, skilful application of knowledge which entirely depends on the inherent capacity of a person which comes from within a person and is learned from practice and experience. In this sense, management is certainly an art as a manager uses his skill, knowledge and experience in solving various problems, both complicated and non-complicated that arise in the working of his enterprise successful. In the words of Ernest Dale. “Management is considered as an art rather than science mainly because managerial skill is a personnel possession and is intuitive.”

(b) 1. Science, Not Rule of Thumb: This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.


2. Harmony, Not Discord: As per this principle, such an atmosphere should be created in the organisation that labour (the major factor of production) and management consider each other indispensable.
Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the occurrence of a mental revolution would end all conflicts between the two parties and would be beneficial to both of them.

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