ICSE 2015 Commercial Studies Question Paper Solved for Class 10

Solving ICSE Class 10 Commercial Studies Previous Year Question Papers ICSE Class 10 Commercial Studies Question Paper 2015 is the best way to boost your preparation for the board exams.

ICSE Class 10 Commercial Studies Question Paper 2015 Solved

Section – A
(Attempt All Questions)

Question 1.
Distinguish between:
(a) Advertising and Publicity (2)
(b) Stakeholders and Customers. (2)
(c) Marketing and Sales. (2)
(d) Controllable Costs and Uncontrollable Costs. (2)
(e) The Central Bank and a Commercial Bank. (2)
Answer:
(a) Advertising

It is done by an identified sponsor.
It is always impersonal.

Publicity

In it the sponsor may not be identified.
It may be both personal or impersonal.

(b) Stakeholders

Stakeholders like shareholders and employee have a financial stake in a business firm.
They take risks of the organisation.

Customers

Customers do not have a financial state in a business firm.
Customers do not take risks of the organisation.

Identifying and satisfying wants.
Customer oriented, let the seller beware.

Selling

Exchanging goods for money.
Production oriented, let the buyer beware.

(d) Controllable cost

Controllable costs are those costs which can be controlled or regulated by an organisation and its management.
e.g., invertary cost

Uncontrollable cost

These costs are beyond the administrative control of an enterprise.
e.g., cost of obsolescence.

(e) Central Bank

It is owned by the government.
It is a banker to the government.

Commercial Bank

It is owned by shareholders.
It is the banker to the general public.

Question 2.
(a) What is meant by “Recruitment”? (2)
(b) Give any two advantages of advertising by Television. (2)
(c) Briefly explain the term ‘Insurance’. (2)
(d) Give two advantages of Marketing Research. (2)
(e) What is meant by Environmental Ethics? (2)
Answer:
(a) Recruitment is the process of selecting the sources of required staff and stimulating the candidates to offer themselves for employment.

(b)

On, television, products can be demonstrated and their uses can be explained.
It is appropriate for illiterate people.

(c) Insurance is a contract in which a sum of money is paid by the assured in consideration of insures incurring the risks of paying a large sum upon a given contingency.

(d)

Marketing research helps to measure market potential, characteristics of the market and share of the market for a particular firm or brand.
Marketing research is a tool for enhancing the marketing plants, policies and programmes.

(e) Environmental ethics is a set of moral standards that require people to be aware of environmental degradation and participate in protecting and promoting the environment.

Question 3.
(a) What is a Trade Union ? (2)
(b) Enumerate two types of Warehouses found in India. (2)
(c) Explain the term “Budget”. (2)
(d) Give two advantages of Rail Transport over Road Transport. (2)
(e) Name any two forms of Non-Verbal Communication. (2)
Answer:
(a) Under the Trade Unions Act 1926, “a trade union is any combination of persons, whether temporal or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen or between employers and employers for imposing restrictive conditions on the conduct of any trade or business and includes the federation of two or more trade unions.

(b)

Food Corporation of India
Central Warehousing Corporation.

(d)

Road transport, provides door-to-door service which is not available in case of rail transport.
Road transport can reach hilly and rocky areas which is not possible in case of rail transport.

(e)

Berely Language
Parci Language

Question 4.
(a) Write a short note on Recurring Deposits. (2)
(b) Briefly explain the term “Pension”. (2)
(c) Mention any two factors to be kept in mind while determining the price of a product. (2)
(d) Give two measures to ensure the sustainable of resources. (2)
(e) State any two demerits of Advertising. (2)
Answer:
(a) In this type of account, a customer is allowed to deposit a certain amount of money every month for a specified period of time. At the end of the period, he gives the total deposit amount along with interest at the prescribed rate.

(b) Pension means providing long term recurring assistance to the employees after retirement and to his family in case of pre-mature death while in service.

(c)

Degree of competition
Government regulations
Cost of the product
Market demand

(d)

Respect and care for all forms of life
Improve the quality of human life

(e)

Creates monopoly
Misleads the consumer

Section – B (40 Marks)
(Attempt any four questions from this section)

Question 5.
(a) Briefly explain the five main objectives of Marketing. (5)
(b) Explain any two methods of On-the-Job Training. (5)
Answer:
(a) Five objectives of marketing are as follows :

Creation of Demand: A business firm can sell goods and services only when there are customers willing to buy them. Therefore, the first purpose of marketing is to create demand for goods and services. For this purpose marketing finds out the needs and preferences of customers.
Customer Satisfaction : Modem marketing is customer oriented. Today, all marketing activities begin and end with the customers.
Market Share: Every business firm seeks to have a reasonable share of the total demand. Good quality goods are offered at reasonable prices to capture a large share in the market.
Goodwill: Marketing aims at building the reputation of the enterprise over a time. The enterprise attempts to earn a name for itself and builds its position in the market by selling quality products at reasonable prices and through efficient after sales services.
Standard of Living : Marketing aims at improving the living standards of people by :

(a) providing a wide variety of products and services.
(b) supplying new and better quality products.
(c) creating more employment opportunities.

(b) Two methods of On-the-Job training are as follows :

1. Job Instruction Training (JIT) : This is the most popular form of On-the-Job training. It is also known as step-by-step training. It consists of the following steps.

(a) Preparing the trainees by telling them about the job and overcoming their initial nervousness.
(b) Letting the trainees try out the job to show their understanding.

2. Apprenticeship training: In this method, the trainees leam by working with those who are already skilled in their jobs. People who want to enter skilled trades (such as welder, plumber, electrician) are required to undergo appreticeship training. Classroom training is given first and then the trainees try out the job under the guidance of a master worker. In the job try out the trainees gradually leam the skilled craft.

Question 6.
(a) Distinguish between Capital Expenditure and Revenue Expenditure. (5)
(b) Explain any two principles of Insurance. (5)
Answer:
(a)

Capital expenditure is incurred for acquisition or erection of fixed assets to be used in the business. Revenue expenditure is incurred for the day-to-day conduct of business.
Capital expenditure increases the earning capacity of the business whereas revenue expenditure does not increase the earning capacity as it is incurred for maintaining the existing capacity.
The benefit of capital expenditure extends to more than one year but the benefit of revenue expenditure extends only to the current year.
Capital expenditure is of a non-recurring nature because such expenditure is not incurred every day, but revenue expenditure is recurring in nature as it is incurred on day to day operations.
Capital expenditure leads to increase in the value of fixed assets. But revenue expenditure does not result in increase in the value of these assets.

(b) Two principles of insurance are as follows :

Indemnity : Indemnity implies compen-sation. According to this principle, the insurer shall compensate the insured in case of a loss against which the policy was issued. The purpose is to place the insured financially in the same position in which he was before the loss. The principle of indemnity is not applicable to life insurance.
Subrogation : The principle is a corollary to the principle of indemnity. According to the principle of subrogation, the insurer becomes owner of the damaged property after compensating the insured for loss.

Question 7.
(a) Explain any two Internal sources of Recruitment. (5)
(b) Explain any two functions of the Central Bank of the country. (5)
Answer:
(a)

Promotions: Vacancies at higher levels may be filled up by promoting persons working at lower levels. For example, when the present sales manager of a company retires, one of the branch managers may be promoted as the new sales manager. Promotion involves shifting an employee to a higher part carrying a higher status and more salary.
Transfers : Transfers means shifting an employee from one factory, branch or office to fill vacancy in another factory, branch or office of the company. For example, shortage of sales persons in one branch may be met by transferring sales persons from another branch. Transfer involves shifting an employee to a similar job without change in status and salary.

(b) Two functions of a central bank are :

Monopoly of Note issue : Generally, the Central Bank of a country has the monopoly to issue currency notes. Government grants the exclusive right to the Central Bank to issue notes on its behalf. In India, one rupee notes are issued by the Ministry of Finance. All other currency notes are issued by the Reserve Bank of India.
Government’s Bank : The central bank acts as a banker, fiscal agent and advisor to the Government. It makes and receives payments on behalf of the government. It floats and manages public debts for the government. As a fiscal agent the central bank advises the government on matters covering monetary and banking policies. It also serves as a representative of the government in international conferences as monetary and economic matters.

Question 8.
(a) Give any five expectations of Creditors from a Business Enterprise. (5)
(b) State any five codes of conduct adopted in the field of Advertising. (5)
Answer:
(a) Creditors expectations :

Safety of capital contributed by them.
A fair and regular return (in the form of dividend or interest) on their capital.
Capital appreciation in the value of their investment.
Return of loans in time in case of creditors.
Equal participation in policy decisions of the company.
A public image of the company for which they can feel proud.

(b) Rules of code of conduct in Advertising :

Advertising should be so designed as to conform to the laws of the country and should not offend against morality, decency and religious susceptibilities of the people.
In all other respects, the Director General Doordarshan will be guided for purposes of commercial telecasting in Doordarshan by the code of Ethics for Advertising in India as modified from time to time.
Not with standing anything contained herein this code is subject to such modifications as may be made/ issued by the government, of India from time to time.
No advertisement should be permitted
1. which is against any of the objectives, principles or provision of the constitution of India.
2. which would adversely affect friendly relations with foreign states.
3. which will tend to incite people to crime or to promote disorder, violence or branch of law.

Question 9.
(a) What is meant by “Barriers to effective Communication “? Explain any four barriers. (5)
(b) Explain five main rights of consumers as provided in the Consumer Protection Act, 1986. (5)
Answer:
(a) The difficulties that may arise in the process of communication is known as barriers to communication. Four barriers are as follows :

Physical Barriers : Physical distance between the sender and the receiver of the message is an important barrier to communication. Noise and environmental factors also obstruct communication.
Personal Barriers : Differences in levels of understanding, judgement, values, etc. of sender and receivers restrict communication.
Organisational Barriers : When the organisation structure of a firm is complex consisting of several levels of authority, there are greater chances of distortion or breakdown in communication which tends to be slow and rigid.
Semantic Barriers : The same words and symbols may carry different meanings to different people. Communication breaks down when the sender and the receiver of the message use words or symbols in different senses.

(b)

Right to Safety : The consumer have the right to be protected against marketing of goods and services, which are hazardous to life and property.
Right to be Informed : All the consumers have the right to be informed about the particulars of goods and services that they purchase. They have the right to be informed about the quality, quantity potency, purity, standard and price of goods.
Right to be Heard: The consumers interests should receive due consideration at appropriate forums relating to consumer welfare.
Right to Consumer Education : This includes knowledge about goods and issues relating to consumer welfare.
Right to Choose: It means assurance of access to the variety of goods and services at competitive price.

Question 10.
Prepare a Trading, Profit & Loss Account and Balance Sheet of M/s Jindal Enterprises for the year ended 31st March, 2011 from the following Trial Balance, (10)
The Closing Stock on 31st March was valued at ₹ 26,000.

Answer:
Trading and Profit and Loss A/c for the year ended 31st March, 2011