ISC Commerce 2016 Class-12 Previous Year Question Papers

ISC Commerce 2016 Class-12 Previous Year Question Papers Solved for practice. Step by step Solutions with Questions. By the practice of Commerce 2016 Class-12 Solved Previous Year Question Paper you can get the idea of solving.

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ISC Commerce 2016 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 (Compulsory) from Part I and five questions from Part II, choosing two questions from Section A, two questions from Section B and one question from either Section A or Section B.
  • The intended marks for questions or parts of questions are given in brackets [ ].
  • Transactions should be recorded in the answer book.
  • All calculations should be shown clearly.
  • All working, including rough work, should be done on the same page as, and adjacent to the rest of the answer.

Part – I (20 Marks)

Answer all questions.

ISC Commerce 2016 Class-12 Previous Year Question Papers Solved

Question 1. [10 2]
Answer briefly each of the questions (i) to (x):
(i) State two components of legal environment of a business concern.
(ii) Why is working capital also known as circulating capital ?
(iii) What is meant by participating preference shares ?
(iv) Distinguish between advertising and personal selling.
(v) Why is feedback an important element in the communication process ?
(vi) Explain the principle of Esprit decorps as advocated by Henry Fayol.
(vii) What is meant by a product ?
(viii) Explain the meaning of coordination, as a function of management.
(ix) What are bonus shares ?
(x) Explain the concept of management by exception
Answer 1:
(i) Two components of Legal Environment of a business concern are : (any two)

  • Laws and administrative orders of the government.
  • Judicial system of the country.
  • Flexibility and adaptability of laws.

(ii) Working capital is the portion of capital invested in short-term assets of a business. It consists of cash receipts from sales which are used to cover the cost of current operations. It is also known as circulating capital as it keeps circulating or revolving in business. It is invested, recovered and reinvested repeatedly during the business cycle.

(iii) Participating Preference Shares : The preference shares which get share in the surplus
profit of the company are known as participating preference shares. Preference shareholders get a fixed rate of dividend in case a surplus profit is left after paying fixed dividend to preference and equity shares. The participating preference shares get a share in that surplus profit.


(iv) Difference between Advertising and Personal Selling :

Basis Advertising Personal Selling
(i) Form This is impersonal. This is personal.
(ii) Message The similar message is given to all the customers. There is no uniformity in the message. It can be changed according to the behavior of customer.
(iii) Time It takes a little time in conveying the message to the customers. It takes more time in conveying the message to the customers.
(iv) Feedback It does not receive the customers reactions. It receives the customers reactions immediately.

(v) Feedback is a reversal of communication process in which receiver expresses his reaction to the sender of message. Feedback is important to ensure that receiver has received and understood the message.

(vi) Principle of Esprit De Corps Esprit De Corps means union is strength. Fayol emphasized on the team work. He suggested that every employee in the organisation must consider him as a part or member of a team and try to achieve the team goal because team contribution is always better and more than individual contribution. Management must develop a feeling of belongingness among the employees as they must feel themselves as members of organisation’s team and contribute maximum to achieve team’s goal.

(vii) A product is anything that can be offered to a market for attention, acquisition, use or consumption : it includes physical objects, services, personalities, place, organisations and ideas. A product has many other dimensions besides its physical appearance. In fact, a product is like an onion with several layers and each of the layers contributes to the total product image.

(viii) Coordination is the process by which activities of different departments are synchronized to ensure unity of action. It is the essence of management because it is inherent in all managerial functions.

(ix) Bonus shares are the shares which a company issues to its existing shareholders free of charge. i. e., as a bonus, in order to distribute large undistributed profit among its shareholders.

(x) In a large-scale organisation, keeping a close watch over all the activities is bound to be tedious and time consuming. If control is to be effective and economical it must focus attention only on factors critical to performance. Only significant deviations from standard should be reported to top level management and other problems should be entertained by the subordinates. For example, if telephones charges increase by 10% the deviation is too significant and it will be brought to the notice of top-level management.

Part – II (60 Marks)
Answer any five questions

ISC Commerce 2016 Class-12 Previous Year Question Papers Solved

Question 2.
(a) Explain any three external elements of micro business environment. [3] (b) Briefly explain any two sources of short term finance. [4] (c) Explain the meaning of debentures. State any four disadvantages of debentures [5] Answer 2:
(a) Three external elements of micro business environment are :
Suppliers: Like the customers, the suppliers also influence business. If a business has only one supplier and he gets annoyed because of some reason, the supply of goods can be stopped and the very existence of the business can be threatened or endangered. Hence, efforts should be made to have various suppliers.

Competitors : The competing firms can influence business in a number of ways. They can do so by bringing new and cheap products in the market, by launching some sale promotion scheme or other similar methods.

Public : Public has different constituents like the local public, press or media etc. The attitude or behavior of these constituents can affect business units. For example, the local population can oppose some established firm whose business is excessively noisy. Similarly, if the media gives some favorable report about a particular company the price of its share can register an increase on this count.

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