2021

EXAMINATION

ICSE CLASS X 2011-2020 COMMERCIAL APPLICATIONS

Edition : 2020 Price : ` 149 ISBN : 978-93-90278-42-8

© Publishers : All rights reserved. No part of this publication may be reproduced in any form without the prior written permission of the publisher.

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In accordance with the latest syllabus prescribed by the Council for the Indian Certificate of Secondary Education Examination, New Delhi

PREFACE Š This volume is a compilation of solved board question papers of past ten years for the students of ICSE class Xth.

Š This volume will help students to develop deep insight into the subject and prepare them to attempt questions from various perspectives. Students will also get acquainted with the distribution of marks and will benefit from advanced knowledge of the type and style of questions asked.

Š The publishers have endeavoured to put together a team of experienced teachers who have taken great care to provide the best possible answers to the questions, in an easy to understand language. It is hoped that this book will help the students gain confidence and help them clear their exams with flying colours.

EXAM COUNTDOWN USE YOUR TIME WISELY TWO WEEKS TO GO Plan your revision effectively by spacing it out. Little and often is better than cramming at the last moment.

ONE WEEK TO GO Do lots of past papers and quizzes, teach the material to someone else. Seek advice, guidance and feedback from others.

THE NIGHT BEFORE

Pack your bag for the next day. Do an equipment check. Get plenty of sleep.

THE MORNING OF Eat breakfast to fuel you for the day.

AN HOUR BEFORE

Get to school early and spend time with relaxing people.

1 MINUTE BEFORE Take a deep breath and gather your thoughts.

CONTENTS COMMERCIAL APPLICATION

STUDY LOG

ICSE Paper

2019 7

ICSE Paper

2018 14

ICSE Paper

2017 22

ICSE Paper

2016 29

ICSE Paper

2015 38

ICSE Paper

2014 44

ICSE Paper

2013 49

ICSE Paper

2012 56

ICSE Paper

2011 61

TOPICS I’VE TO WORK ON

PRAcTICE STRATEGY

TOPICS I’VE MASTERED

TIPS

1. Divide lengthy topics into smaller chunks and work on understanding one sub-topic at a time. 2. At the end of each study session, make short notes for quick revision. 3. Revisit previously learnt topics regularly from self-made notes. 4. Try to understand the topic than just mugging it up. It will stay in your memory for longer.

COMMERCIAL APPLICATIONS–2019 SECTION-A (40 Marks)

S. Basis of No. Difference

(Attempt all questions from this Section) Question 1. State one difference between each of the following : (a) Capital Market and Money Market.

[2]

(b) Direct Cost and Indirect Cost.

[2]

(c) Employment Exchanges and Placement Agencies.  [2] (d) Cheque and Bank Draft.

[2]

(e) Advertising and Publicity.

[2]

Answer 1. (a) The difference between capital market and money market is as under : Basis S. of DifNo. ference

Money Market

Capital Market

(i) Duration

The money mar- It deals in meket instrument dium and long have maximum term securities. tenure of one year and may even be issued for a single day .

(ii) Instruments

The main instruments traded here are short term debt instruments such as treasury-bills, commercial papers, certificate of deposits, trade credit etc.

(iii) Participants

The main instruments traded in the capital market are equity shares, preference shares, debentures and bonds.

The participants The participants in the money in the capital market are in- market are finanstitutional par- cial institutions, ticipants such banks, ordinary as RBI, banks, retail investors financial institu- from public. tions etc. (b) The difference between Direct Cost and Indirect Cost is as under-

Direct Cost

(i) Relation- Directly and ship wholly related to a particular unit or centre of cost. ExampleSugarcane used in sugar mill. Wages of sugar worker.

Indirect Cost Not directly and wholly related to a particular unit or centre of cost. Example Fuel, wages of store keeper.

(ii) Components

Direct material, Indirect material, Direct labour, Indirect labour, Direct expenses. Indirect expenses. (c) The difference between Employment Exchanges and Placement Agencies is as underBasis S. of DifNo. ference (i) Status

Employment Exchanges

Placement Agencies

The employment exchanges are run by the government.

Placement agencies are private recruitment agencies engaged in recruitment of staff.

(ii) Suit-

These are suit- These are suitable able for the re- for the recruitcruitment of ment of managesemi skilled and rial and technical unskilled per- personnel. sonnel. (d) The difference between Cheque and Bank Draft is as under-

ability

Basis S. of DifNo. ference

Cheque

Bank Draft

(i) Drawer Cheques are al- A bank draft is ways drawn by always drawn by a person. bank. (ii) DisA cheque is honour d i s h o n o u r e d , if the funds in the drawer’s account is insufficient.

The draft amount is taken in advance by the bank so there is no question of draft being dishonoured.

(e) The difference between Advertisement and Publicity is as under-

8 | ICSE Commercial Applications-2019 Basis S. of DifNo. ference

Advertisement

Publicity

(i) Sponsor

The identity of the sponsor is clearly known as it originates from advertiser.

The identity of the sponsor is not clear as it originates from media.

(ii) Nature of message

Persuasive message is designed to persuade customer to favour a product, service, idea or organisation.

Informative message designed to inform public.

(iii) Control The sponsor control over content and timing of message.

has the the the

Media has control over the content and timing.

Question 2. (a) Mention any two advantages of wind energy. [2] (b) State any two uses of a Balance Sheet. [2] (c) Mention any two circumstances when a Bank can refuse payment of a cheque. [2] (d) What is meant by consumer education? [2] (e) Mention the four elements of Marketing mix. [2] Answer 2. (a) The two advantages of wind energy are : (i) Wind energy is an inexhaustible source of energy as it is available abundantly in nature. (ii) It is inexpensive and pollution free so it can be generated and supplied to remote areas where other energy sources are not available. (b) The two uses of the Balance Sheet are : (i) Balance sheet shows the assets and liabilities owned by a non-trading organisation on a particular date. (ii) It fulfils the statutory requirements as a non-trading organisation is legally required to prepare a balance sheet. (c) The two circumstances where bank can refuse payment of a cheque are (any two) : (i) When the signature of the drawer on the cheque does not tally with the specimen signatures in the record of the bank. (ii) When the cheque is stale i.e. three months old. (iii) When the fund to the credit of the drawer is not sufficient to make the payment of the cheque. (d) Consumer education is defined as education given to a consumer about various consumer

goods and services, covering price, what the consumer can expect, standard trade practices etc. Consumer education is required for understanding the consumer rights. Basically three parties are involved in consumer education which are business, producers and distributors and government. (e) The four elements of marketing mix are : (i) Product Mix : It refers to the combination of various features relating to the product or services to be offered for sales. It involves decision related to quality, size, brand, package etc. (ii) Price Mix- It involves the decision regarding the basic price of the product such as discount, allowance, credit and terms of payment. (iii) Place of Physical Distribution Mix : It consist of all the activities involved in transferring ownership and physical possession of the products to the consumers. It includes channel of distribution and physical distribution. (iv) Promotion Mix : It consist of all the activities aimed at persuading customer to buy the product e.g. advertisement, sales promotion, publicity etc. Question 3. (a) What is food adulteration ? Give an example. [2] (b) State the importance of ‘persuasion’ as an element of Public Relations. [2] (c) Explain two advantages of opening a bank account.  [2] (d) What is meant by parity pricing ? [2] (e) What do you mean by Office and Administrative Overhead ? [2] Answer 3. (a) Food adulteration is the process in which the quality of food is lowered either by the addition of inferior quality material or by extraction of valuable ingredient. A food item is said to be adulterated if a substance which is added is injurious for human consumption. It not only includes the intentional addition or substitution of the substances but biological and chemical contamination during the period of growth, storage, processing, transport and distribution of the food products, is also responsible for the lowering or degradation of the quality of food. Example- Papaya seeds, black berries are the common adulterant used in black pepper as they are almost similar in size. Some of the adulterants that are used in milk are water, chalk, urea, caustic soda and skimmed milk, while khoya is adulterated with paper, refined oil and skimmed milk powder. (b) Persuasion is an important element of public relation. To persuade means to convince another person of some idea, product, service or institution, to induce a person or group to

Gurukul Solved Papers | 9 do something. A message become persuasive when people believe in the source of message. Message coming from a credible sources are generally accepted without question. The basic purpose of public relations is to create and maintain harmonious relation between organisation and public. (c) The two advantages of opening a bank account are (any two) : (i) Habit of Saving : The bank accounts promote the habit of saving in the public. People are prompted to save and deposit money in bank account due to the benefits of safety and earning interest. (ii) Safety of Money : There is always a risk of keeping money at home. It may be lost or stolen. The saving deposited in the bank account remains safe and free from risk. (iii) Loans and Advances : The account holders can obtain loans, overdrafts, and cash credit from their banks. (d) Parity pricing is a pricing strategy in which a business firm adjusts its own price policy to the general pricing structure in the industry. It involves charging according to what competitors are charging. Many companies in the industry follow the price level set by the market leader. It is also known as ‘going rate pricing and competition based pricing’. (e) Office and administrative overhead represent “the cost of formulating the policy, directing the organisation and controlling the operations of an undertaking, which is not related directly to research, development, production, distribution or selling activity or function.” These costs are of a general nature. They generally comprise of the following costs: (i) Indirect material (ii) Indirect labour (iii) Indirect expenses. Question 4. Give a reason either for or against each of the following : (a) Human Resource Management is a challenging function. [2] (b) Every transaction has two effects. (answer with reference to the Concept of Accounting) [2] (c) Ethics has no role in Public Relations. [2] (d) Today’s Marketing Concept is known as Consumer Oriented Concept. [2] (e) A distribution channel serves as a link between producers and consumers. [2] Answer 4. (a) For : HRM is a challenging function as it has to deal with human elements in an organisation. Each individual has unique personality with their own physical and physiological traits.

(b)

(c)

(d)

(e)

Human react to different situation in different way. Even the same individual behaves differently at two different points of time. It is therefore very difficult to predict the human behaviour. For : Every transaction has two effects as our accounting system is based on the concept of double entry system. Every transaction has two sides. If one account is debited, any other account must be credited and vice versa. It is due to this principle two sides of the balance sheet are always equal. Against : Business ethics means as set of moral standards which businessman has to follow in their business activities. Publicity not backed by good action is unethical. It will damage rather than improving image of organisation. Exaggerated propaganda to boost the image causes irreparable damage to the reputation of business in the long run so ethics plays a very important role in public relation. For : Customer is a king in the present scenario. The business policies and programmes are built around the goal of customer satisfaction. In order to survive and grow in this highly competitive world a company must first determine what customer wants so, we can say today’s marketing concept is known as customer oriented concept. For : A distribution channel serves as the connecting link between the producer and consumer. It creates utilities of time, place and possession by bridging the gap between the point of production and point of consumption. It starts with producer and ends with consumers with several intermediaries in between. It facilitates the flow of goods from producer to final consumers.

SECTION-B (60 Marks) (Attempt any four questions from this Section) Question 5. (a) Explain the maturity stage and abandonment stage of product life cycle. [5] (b) Explain three professional and two social significances of Human Resource Management.  [5] (c) Explain any two lending money functions of the commercial bank. [5] Answer 5. (a) Maturity Stage : In this stage sales continue to grow but at a decreasing rate. Competition increases and market stabilised, due to increase in competition the prices are reduced but promotional expenses remains high. As a result profit decline and the marginal producer are forced to go out of market. For the product with long run demand, maturity stage may

10 | ICSE Commercial Applications-2019 last for a longer period but sooner or later the demand for the product starts declining as new product is introduced in the market. This stage is characterised by product differentiation, product improvement and identification of new market. Abandonment Stage : In this stage most of the firms gradually phased out the declining product to make better use of their limited resources. Preference of the customer may change and new product enters the market to take the place of abandoned product, some firm try to postpone abandonment by introducing a new model with unique features. (b) The professional and social significance of the Human Resource Management are Professional Significance : It permits the team work among the employees by providing a healthy working environment. It contributes to the professional growth in the following ways : (i) Provide maximum opportunities for the personal development of each employee. (ii) Maintaining healthy relationship between individuals and different work groups. (iii) It is a continous process that acknowledges the employees of the organisation as its most precious resource. Social Significance : It helps to enhance the dignity of the labour in the following ways : (i) Providing suitable employment that provides social and psychological satisfaction to the people. (ii) Maintaining a balance between the jobs available and the job seekers in terms of numbers, qualifications, needs and aptitudes. (c) This function is very important because the economic development of the country mainly depends on the credit schemes of banks. Banks lend money in different forms. The two lending functions of the commercial banks are : (i) Cash Credit : Cash credit is a short-term credit given to the businessmen for meeting their working capital requirements. It is normally made against some tangible security or personal guarantee. The banker opens the cash credit account in the name of the borrower and permits him to withdraw money according to the need up to his credit limit. The interest is charged only on the amount actually withdrawn by the account holders from the account and not on the whole amount. This type of loan is very popular among businessmen in India. (ii) Loans and Advances : The bank advances the fixed amount in lump sum to the borrower for an agreed period. The borrower may withdraw the whole amount at once or as per his needs. But the interest is charged on the

whole amount sanctioned. Commercial banks grand both short term and medium term loans. Question 6. (a) Explain any two types of interviews that are used in selection of employees. [5] (b) Discuss employee relations and government relations on the basis of scope of public relations. [5] (c) Explain any five features of Income and Expenditure account. [5] Answer 6. (a) The selection interview is a formal conversation between the candidate and the employer to judge the candidates suitability for the job. The two types of the interview in the selection process are (i) Structured Interview : This type of interview is systematically planned in advance and is conducted in a pre-planned manner. The questions to be asked and the time to be allowed to each candidate are decided in advance. This is the most common type of selection interview. (ii) Stress Interview : The purpose of this interview is to see how a candidate reacts to awkward questions and difficult situations. The interviewer deliberately adopts a hostile attitude by asking questions rapidly, by criticising candidate etc. The interaction with the candidate in the stressful situation is judged. If the candidate keeps his emotions under check he is selected. (b) (i) Employee Relation : The foundation of the good employee relations is a sound personnel policies and its proper implementation. Failure to inform employee about corporate policy and development affecting their interest leads to misunderstanding and criticism. Employee also want to express their opinion about the matter affecting their interest therefore two-way communication channel between management and worker are required to maintain good employee relations. (ii) Government Relation : The important development in the public relations has been the closer relationship between corporate houses and government. Business is taking active part in government affairs. Government is also consulting businessmen in formulating policies and program for the economic and social development of people. (c) The main features of the income and expenditure account are : (i) It is a nominal account therefore losses are debited and incomes and gains are credited. (ii) The opening and closing balances of cash in hand and cash at bank are not recorded in it.

Gurukul Solved Papers | 11





(iii) While preparing Income and Expenditure account only items of revenue nature are recorded and all the items of capital nature are not included. For example profit earned and loss suffered on the sale of asset will be recorded in it but the amount received from the sale of asset is not recorded. (iv) Income and expenditure pertaining to only current year are recorded in it. All the items of income and expenditure which pertain to the previous year and future year are not recorded in it. (v) The closing balance of this account shows surplus or deficit for the year. If the credit side exceeds the debit side, there is surplus. On the other hand if the debit side exceed the credit side, there is deficit. The surplus is added to the capital fund while deficit is deducted from the capital fund.

Question 7. (a) Discuss the Sales oriented stage and Product oriented stage of marketing. [5] (b) Explain Product advertising and Informative advertising. [5] (c) Explain the first five steps in personal selling. [5] Answer 7. (a) (i) Sale Oriented Stage : After the great depression, the focus shifted from production to selling. The producers began to realise that the customer will not buy unless they are approached with substantial selling and promotional efforts. It is the stage which was characterized by hard selling. Salesmen were the focus of marketing activities because products could not be sold without effective sales force. Customer importance was realised but as a means of disposing of goods produced. (ii) Product Oriented Stage : In this stage the marketers realised that the customer will only buy the product if its quality was good enough. The focus shifted from promotion to product improvement. The firms made efforts to improve product feature and performance. The overemphasis on product improvement resulted in marketing myopia in this stage. (b) (i) Product Advertising : The main objective of the product advertisement is to promote the sale of a particular product, brand or service. It is sponsored by manufacturer, trader and other organizations to promote the uses, features and image of their products and services. The product advertisement is of two types : 1. Direct Action Advertising : It is aimed to get quick response or action to the advertisement. For example a departmental store gives an advertisement in the local newspaper stressing discount for the current month.

2. Indirect Action Advertisement : It is created to get the favourable response towards the advertised product over a long period of time. (ii) Informative Advertisement : This type of advertisement contains the information about the product/ services and institution. It makes consumer aware of existence, feature, use of goods and services. For example advertisements suggesting how to save petrol or avoid accidents are informative advertisement. (c) The process of personal selling consist of the following steps : (i) Preparation : Salesman should be fully prepared and have the up-to-date knowledge of the firm and its products, and services, competitors and their products customers and their selling techniques. He must be fully aware of the quality, use, price etc. of the goods to be offered to the customer for sales. (ii) Prospecting : Prospecting means locating and identifying the potential customer. A list of the prospective customer is prepared with the help of trade directories, sales persons, dealers etc., the information regarding age, income, family background, taste and preference are collected. The collection of this information is called as pre-approach. (iii) Approach : In this step the salesperson makes face to face contact with the prospective buyer. The salesperson first introduces him, greet the customer and start the conversation with him so as to create a good first impression. (iv) Presentation : Salesperson describes and displays the product to be sold and should tactfully demonstrate the product and explain its quality, utility and performance to the customer. He should explain how the product meets the need of the customer and try to arise the interest of the customer. (v) Convincing : In this stage the salesperson handles the objections raised by the customers. Objections are considered as the sales opportunities instead of arguing or loosing temper, the salesperson should understand the causes of objections and try to convince the customer to close the sales. Question 8. (a) Write short notes on : [5] (i) Business Entity Concept (ii) Going Concern Concept (b) Explain any two types of consumer products with examples. [5] (c) Explain any five procurement functions of Human Resource Management. [5]

12 | ICSE Commercial Applications-2019 Answer 8. (a) (i) Business Entity Concept : The business entity concept states that the transactions related to a business must be recorded separately from those of its owners and any other business. In other words, while recording transactions in a business, only those events that affect that particular business are recorded. This concept is very important because if transactions of a business are mixed up with that of its owners or other businesses, the accounting information would lose its usability. The business entity concept of accounting is applicable to all types of business organizations (i.e., sole proprietorship, partnership and corporation). (ii) The Going Concern Concept : It is assumed that a business will continue to exist for a long time in future and transactions are recorded as the business will exist for a infinite period of time. A firm is said to be going concern when there is neither the intention nor the necessity to wind up its affairs. In the absence of this assumption no outside parties would enter into the long-term contract with the firm for supplying funds and goods. The going concern concept also implies that the existing liabilities will be paid at maturity. Unsold stock of goods is taken to the next year. (b) The consumer products are meant for final consumption and not for sale. The two types of consumer products are (i) Convenience Product : These products are purchased frequently and with minimum of efforts. They are meant for personal convenience. Newspaper, toothpaste, soap etc., are the examples of convenience products. (ii) Shopping Products : These products are purchased after a comparative analysis of quality price, warranty, etc., of competitive brands. Furniture, TV, fridge, car etc., are the examples of shopping products. (c) The five procurement functions of the human resource management are (i) Human Resource Planning : It is the process of estimating the present and future manpower requirement of the organization, preparing inventory of present manpower and formulating action program to bridge the gaps in case of shortage. (ii) Recruitment : It is the process of searching for required personnel and stimulating them to apply for the job in the organization. (iii) Selection : It implies judging the suitability of different candidate for the organization and choosing the most appropriate candidate.





(iv) Placement : It means assigning suitable job to the selected candidate so as to match employee qualification with the job requirement. (v) Induction or Orientation : It involves familiarizing the new employee with the company, the work environment and the existing employees so that new employee feel comfortable and can start his work confidently.

Question 9. CASE STUDY Ryan Ltd took the following steps in the beginning of this year to widen its consumer base. It expanded the business operations to cover international markets and within India, it focused on Delhi. It repositioned itself as a FMCG company, offering a wide range of Modern Electronic items, and moved away from traditional marketing to non-traditional marketing. The company focused on quality control and publicity. It also introduced new advertisements featuring film stars and sports personalities. It undertook various brand promotion methods. (a) Explain any two advantages of advertising to manufacturers. [5] (b) Explain any two elements of promotion mix. [5] (c) Explain any five Non-traditional markets. [5] Answer 9. (a) The two advantages of advertising to the manufacturer are : (i) Advertisement creates demand for the new products by informing people about their availability and use. It helps to maintain steadily demand for the product by smoothening out the seasonal fluctuations in demand. (ii) Advertisement creates goodwill by making the manufacturer and his products famous and known in public. It is helpful in overcome competition in the market. (b) The two elements of the promotion mix are : (i) Advertisement : It is the paid form of communication. It includes the activities concern with providing product information to consumer through radio, newspaper, television and other non-personal media. (ii) Personal Selling : It refers to face to face communication between a seller or his representative and the buyer. Salesperson of an enterprise assists and persuades the prospective customer to buy the product. (c) The five non-traditional markets are (i) Catalogue Market : In this type of market a catalogue is kept in the showroom. The customer selects the goods by reading the catalogue which contains product details and price. Customer order the goods and order are

Gurukul Solved Papers | 13









send to warehouse for supply. A copy of the catalogue is mailed to the regular customer to enable them to prepare the order at home and pick up the goods from the showroom. In catalogue market a broad range of fast moving branded goods are sold at discounted rates like jewellery, watches, cameras etc. (ii) In-House Market : In this door to door salesperson visits the homes of the consumers and offer products to them. This is an effective method and offer great convenience to the customer. In India Eureka Forbes is selling its water filter and vacuum cleaner through this method. (iii) Mail Order Market : In this market seller mails the price list and publicity material to the prospective buyer. Customer place order after reading the advertisement and the goods are dispatched to the customer through V.P.P. or courier. (iv) Automatic Vending Machine : Well known brands of products of the daily use are sold through vending machines. Customers insert coupons or cash in the machine to collect the product. Vending machines are used to sell tea, coffee, candy etc. In Delhi, Mother Dairy sells the milk through vending machines. (v) Tele-marketing : The product is advertised and demonstrated on the TV and in the newspaper. Toll free number is mentioned in the advertisement. Customer place order on the toll free number and order is executed through courier.

Answer 10. (a) Employee selection is the process of judging the suitability of the applicant in the light of the job requirement to decide which candidate should be hired. Employee selection is a negative process because the number of the candidates rejected is much higher than the selected candidate. There are many stages in the selection process; at every stage unsuitable candidates are eliminated so that most suitable candidates are identified. Three benefits of the employee selection are : (i) It helps to improve efficiency and profitability by choosing a qualified candidate with required skill set for every job (ii) It ensures satisfaction to employees by matching the candidate with the job. (iii) It helps to minimize labour turnover and absenteeism. (b) (i) Internship Training : This is a training programme in which business houses collaborate with the technical institutions. It involves balance between theory and practice. The trainees are given theoretical instructions in technical institutions and they receive practical training in factories and offices. This method is used in medical, engineering and legal profession.

Question 10.

A leading Human Resource consultancy group has received a number of application for the post of an analyst for its Hyderabad office. But the person finally selected had no prior experience for work in the same industry. The administrative manager feels that with proper training the selected person will turn out to be an asset to the organization. Although he feels that on-the-job training will be the most appropriate, other members of the selection committee recommended Internship training and Role Playing methods of training. (a) What is employee selection ? Mention any three benefits of employee selection. [5] (b) Explain Internship and Role Playing methods of training. [5] (c) Explain any two internal sources of recruitment. [5]

(ii) Role Playing Method : In this method the trainee is assigned different roles where he learn to deal with the interactions and complexities involved in various roles, for example an employee may be asked to play the role of the labour officer and negotiate with other trainee who plays the role of union leader.

(c) The two internal sources of recruitment are :

(i) Transfer : Transfer means shifting of the employee from one place to another without any change in rank, responsibility and remuneration. It is a horizontal movement of the employee. Vacancies in one factory, branch or office are filled by transferring surplus staff from one factory or office to another.



(ii) Promotions : It means shifting employees from lower position to higher position in the organization, it leads to increase in rank, responsibility and remuneration of the employee, it is a vertical movement of the employee. Promotions are made on the basis of merit and seniority of the employee. ll

COMMERCIAL APPLICATIONS–2018 SECTION-A (40 Marks) (Attempt all questions from this Section) Question 1. State one difference between each of the following : (a) Spot Market and Future Market [2] (b) Institutional Advertising and Product Advertising [2] (c) Fixed Deposit Account and Recurring Deposit Account [2] (d) Fixed Cost and Variable Cost [2] (e) Recruitment and Selection [2] Answer 1. (a)

Spot Market

Future Market

(i) In the spot market, goods are physically transferred from the buyers to the sellers at the current price.

In the future market, the commodity exchange requires actual delivery of goods from the seller to the buyer at some future date but at the current or predetermined prices.

(ii) Spot market is a market place where traders are settled immediately. (b)

Future market is a market place where trades are settled on a specific date in the future.

Institutional Advertising

Product Advertising

(i) The emphasis is on building the favourable image of an organization.

The emphasis is on building a favourable image of a product, brand or service.

(ii) The immediate The immediate aim aim is to build is to increase sale of goodwill of the product. organization. (c)

Fixed Deposit Account

Recurring Deposit Account

(i) The Fixed Deposit is a method of investment where the amount is deposited into an account at the time of opening of the fixed deposit account.

The Recurring Deposit is a method of investment where fixed amounts of installments are deposited at regular intervals of time into RD account.

(d)

(e)

(ii) Fixed deposits are considered beneficial for people who are having surplus money to invest, so that they can earn higher returns in the form of interest.

Recurring deposits are considered beneficial for people who are having a regular income and want to save money for long-term purposes.

Fixed Cost

Variable Cost

(i) The cost which remain same, regardless of the volume produced, is known as fixed cost.

The cost which changes with change in output is considered as a variable cost.

(ii) It remains constant for a given period of time e.g. Rent, salary, insurance.

It changes with change in output level e.g., commission on sales, packing cost.

Recruitment

Selection

(i) It involves searching for prospective employees and stimulating them to apply.

It involves comparing and evaluating candidate in order to choose suitable candidate.

(ii) It is said to be a positive process because it seeks to attract a large number of candidates from which choices can be made.

It is said to be a negative process because it seeks to eliminate less qualified candidate at each step.

Question 2. (a) Mention any two essentials of a Brand. [2] (b) State any two uses of Income and Expenditure Account. [2] (c) Mention any four elements of Price Mix. [2] (d) Mention any two harmful effects of global warming. [2] (e) What is meant by Vestibule Training ? [2] Answer 2. (a) Two essentials of a brand are : (i) Brand name should be brief and simple (ii) Brand should be capable of registration and legal protection. (b) Following are the two uses of Income and Expenditure Account : (i) It is used to show the surplus or deficit of the non-profit organization after a particular time period, generally a financial year.

Gurukul Solved Papers | 15 (ii) It shows all the revenue receipts and expenditures related to the particular financial year whether they are outstanding or not. (c) The four elements of Price Mix are : (i) Credit : Credit refers to the transfer of goods in return of a promise to pay an equivalent value on demand or in future. (ii) Discounts : A firm takes various steps to increase their sales so as to improve their cash position. One of the way to accomplish it is by giving discounts to the customers. This is a kind of relaxation in prices. (iii) Allowances : The manufacturer may offer promotional allowances, e.g., advertising allowances, window display allowances, free samples, free display materials, free training in sales demonstration. (iv) Price policy : Pricing policy refers how a company sets the prices of its products and services. Different types of pricing policies followed by the firm include : Cost based pricing, demand based pricing, value based pricing, and competition based pricing. (d) Following are two harmful effects of global warming : (i) Global warming has disastrous effects on the environment such as melting of polar ice, changes in amount and pattern of rainfall, rise in sea level, frequent floods and droughts, hurricanes and typhoons. (ii) It causes large-scale of extinction and have serious impacts on human lives by affecting fresh water availability, agricultural yields, increases in the spatial and quantitative ranges of disease vectors, as well as on economic infrastructure such as energy, transport and industry. (e) Vestibule training : Vestibule training is also known as “near the job training”. New workers are trained with special machines and equipments in a separate location near the actual place of work, under the practical work situation. This place is called a vestibule and the actual work situation is duplicated here. Question 3. (a) Mention any two merits of external sources of recruitment. [2] (b) What is a Bank Draft ? [2] (c) What do you mean by business ethics ? [2] (d) Give two reasons for the growing importance of Public Relations to business enterprises. [2] (e) Give two General Utility functions of Commercial Banks. [2]

Answer 3. (a) Following are the two merits of external source of recruitment : (i) Wider Choice : Selection from external sources facilitates the choice of personnel from among a large number of applicants. The enterprise can carefully weigh the plus and minus points of all the candidates and then select the best. (ii) Fresh Outlook : External recruitment provides an opportunity of a fresh outlook on the industry that a company may need to stay competitive. Bringing in fresh talent from the outside can help in developing skills set of the organization. (b) A bank draft is a type of cheque, drawn by a bank either on its own branch or on another bank. It is the most convenient and the cheapest method of remitting money from one place to another. The draft is payable only on demand. It can either be encashed on the counter or, if it is crossed, it can be collected only through a bank. In many respects, bank drafts are similar to cheques as both are dated and both can be crossed. (c) Ethics refers to the conduct that is right or wrong, according to the accepted standards or principles. Business ethics are moral principles that guide the way a business behaves. Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice which is beneficial for all the stakeholders. (d) Following are the reasons for growing importance of Public Relations to business enterprises : (i) Improving the image of the organization : Public relations plays a vital role in the achievement of specific objectives at all levels in an organisation's work by communicating an effective message. It is an excellent and cost effective method of improving the image of an organization and its product. (ii) Pervasive function : The need for public relations has increased manifold due to the enormous growth in business. There is a need for public relations in every field. It is an indispensable tool in today's management of both commercial and non-commercial organizations. It is an essential service to anybody who has ideas, products and a cause to be promoted. (e) Following are the two general utility functions of commercial banks : (i) They provide safety vaults or lockers for the safe custody of jewellery, valuable