ICSE 2016 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 2016 is the best way to boost your preparation for the board exams.

ICSE Class 10 Commercial Studies Question Paper 2016 Solved

Section – A (40 Marks)
(Attempt All Questions)

Question 1.
Distinguish between:
(a) Verbal Communication and Non-verbal communication
(b) Budget and Forecast
(c) Fixed Cost and Variable Cost
(d) Coupons and Premiums.
(e) Sales Promotion and Advertising.
Answer:
(a)

Basis of Distinction	Verbal Communication	Non-Verbal Communication
(i) Meaning	Communication through spoken and written words	Communication without using words, rather using signals
(ii) Types	Oral communication and written communication	Body language, Paralanguage, Proximics, Visual, Oral Communication

(b)

Basis of Distinction	Forecast	Budget
(i) Meaning	A forecast is merely an estimate of what is likely to happen.	A budget is a statement of planned events.
(ii) Involvement of Management	A forecast is a judgement that can be made by anybody.	A budget is a plan that requires authority of management.

(c)

Basis of Distinction	Fixed cost	Variable cost
(1) Basis	Fixed costs are time based.	Variable costs are activity based.
(ii) Example	Rent, insurance, salary	Raw material, direct labour

(d)

Basis of Distinction	Coupons	Premiums
(i) Purpose	It is used to introduce new products.	It is used to clear accumulated stocks.
(ii) Example	Discount coupons	Price off premium

(e)

Basis of Distinction	Sales Promotion	Advertising
(i) Time Horizon	Short term Perspective	Long term Perspective
(ii) Aim and his product	To increase immediate sales	To build image of producer

Question 2.
(a) What is a ‘Cash Budget’ ? (2)
(b) What do you understand by ‘Formal Communication’ ? (2)
(c) What does a pay-in-slip contain ? (2)
(d) Write a short note on ATM. (2)
(e) What do you understand by ‘Brand Promotion’? (2)
Answer:
(a) Cash budget is a summary statement of the firms expected inflows and outflows of cash over a future time period.

(b) Formal communication refers to official communication. It takes place through the paths officially created by the organisation. It flows from superiors to the subordinates and flows from top to bottom.

Account holders name
Address
Date
Account number
Amount in words
Amount in figures

(d) Automatic Teller Machines (ATMs) is a self service terminal open 24 hours a day. The customer inserts his ATM card into the terminal and then inserts the identification code. The machine responds by giving cash, accepting deposit and handling other simple transactions.

(e) Brand promotion is that element of marketing mix which is designed to inform, remind, persuade and influence the customers so that they purchase the brands of the advertiser company.

Question 3.
(a) How does financing facilitate the marketing activity ? (2)
(b) Mention any four sources of external recruitment. (2)
(c) Explain any two modes of purchasing goods. (2)
(d) Explain any two disadvantages of Road Transport over Water Transport. (2)
(e) How does an ‘Organizational barrier’ affect Effective Communication ? (2)
Answer:
(а) Marketing activities exercise an important influence on the financial policies of the firm, particularly with regard to cash and credit sales. Finance is required in marketing to keep stocks, to meet transport, storage and other cost and to grant credit.

(b) The four sources of external recruitment are as follows :

Advertisements
Educational Institutions
Employment exchanges
Recruitment agencies

Purchase of goods for cash
Purchase of goods on credit

(d) The two disadvantages are as follows :

Limited Capacity: Road transport is not suitable for carrying bulky or heavy goods as a motor vehicle cannot carry heavy goods.
Undependable : Road transport is not fully de-pendable. Roads become unserviceable during goods, snowfalls, etc.

(e) When the organisational 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.

Question 4.
(a) Give any two features of Consumer Protection Act 1986. (2)
(b) State any two functions of a Trade Union. (2)
(c) Explain ‘Marketing Research’ (2)
(d) What is Deferred Revenue expenditure ? Give and example. (2)
(e) State any two advantages of Ratio adverti- sing. (2)
Answer:
(a) The two features are as follows:

Comprehensive Provisions and Effective Safeguards.
Three-Tier Gnevánce Redressai Machinery.

(b) The two functions are as follows:

Protection : of employees/workers from all sorts of exploitation by employer and political parties.
Proper Standard of Living : Union attempt to secure fair wages, proper working conditions and welfare facilities.

(c) Marketing research refers to the systematic gathering, recording and analysis of data about marketing problems with the aim of providing information useful for decision- making in the field of marketing.

(d) Deferred revenue expenditure refers to the revenue expenses the benefits of which extends beyond the current accounting year. However, suçh expenditure does not result in acquisition of any permanant asset. Example — Heavy Advertisement expenditure.

(e) The two advantages are as follows:

It has a wide appeal as all types of people can be approached.
People can listen to the advertisement, while in transit saving time.

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

Question 5.
(a) State any five expectations of employees from a business organization. (5)
(b) Explain any five interpersonal skills that are required for effective communication. (5)
Answer:
(a) The five expectations of employees are as follows :

Security of job and continuity of services under congenial conditions.
A fair remuneration in the form of wages and salaries.
Safe and comfortable working environment.
Quick and fair redressal of grievances.
Protection of trade union rights.

(b) The five interpersonal skills are as follows :

Know your subject: A good speaker must know and understand the topic on which he is speaking. He must have full facts to support his arguments.
Adopt Right Posture : A speaker should maintain eye contact with his listener. It helps to maintain a link and to personalise what you say.
Use Humour : A good speaker should have a sense of humour. He should speak clearly with right volume and right tone of voice.
Full Attention : Pay complete mental attention to what the speaker is saying. Shut past experiences and future plans out of your mind.
No Talking: Keep quite while listening. Try to listen what a speaker means rather than what he says.

Question 6.
(a) Explain the exchange Junctions of Marketing. (5)
(b) Explain any two methods of Marketing Research. (5)
Answer:
(a) The exchange function of Marketing is classified as :

1. Buying and Assembling
It involves the following steps :

determination of customers’ need in terms of quantity, quality, time etc.
negotiation for price and terms of sale.
Assembling is necessary to secure large lots for shipment, to ensure uninterrupted production and to provide variety.

2. Selling & Dividing: Selling is the heart of marketing. Selling enables a firm to satisfy the needs of the customers, and thereby achieve its objective. Selling also involves dispersion of goods among customers, servicing customers’ complaint and transfer of title or ownership of goods.

(b) The two methods are as follows :

(i) Experimentation Method : Under this method, a control market is established in which all forces except those being tested are kept under check. Reactions are recorded under controlled conditions to test a theory. It requires skilled investigators. Moreover, it is difficult to select test markets and to control the variables.

(ii) Survey Method : This method involves getting answers to specific questions from the entire market or a representative sample of it. When the survey of all the units of information is made, it is known as census enquiry or survey. On the other hand, when a few representative units are collected from them, it is called sample enquiry or survey.

Question 7.
(a) Explain the main functions of a Commercial Bank. (5)
(b) Enumerate any five liminations of Television Advertising. (5)
Answer:
(a) The main functions are as follows :

(i) Accepting Deposits : It is the main function of commercial bank. It attracts deposits for the purpose of making loans and investments. Banks offer different types of deposit accounts to suit the needs of various depositers. Banks receive the following types of deposits:
(a) Fixed deposits
(b) Current deposits
(c) Savings deposits
(d) Recurring deposits

(ii) Granting Loans : Commercial Banks lend money to individuals, firms and other institutions. A commercial bank offers different forms of loans. It lends money in the following ways :
(a) Loans and Advances
(b) Overdraft
(c) Cash Credit
(d) Discounting of bills

(b) The limitations are as follows :

Television advertising is very costly and only well- established firms can afford it.
It has a very short life and back reference is not possible.
The message must conform to physical limitations and mechanical regulations.
High repetition or frequency is required to keep reminding people about the existence of the product.
There is lack of flexibility as the immediate changes in the advertisements are not possible.

Question 8.
(a) Explain any five steps in the Selection process of employees. (5)
(b) Describe the importance of training to employees and employers. (5)
Answer:
(a) The five steps are as follows :

Group Discussion: It is a useful means of judging the leadership ability and social traits of the candidates.
Medical or Physical Examination : A medical check-up of such candidates is done by a panel of doctors to ensure that they are healthy and physically fit for the job.
Checking References : Generally information regarding a few responsible people are taken so that they can be contacted to get information about the background, abilities and character of candidates.
Final Approval : The candidates who are found suitable after every procedure are formally appointed by issuing appointment letters to them.
Placement: Selected candidates are put up or posted on appropriate jobs. This is called placement.

(b) The importance of training are as follows :

Higher Productivity: Training helps to improve the job performance of employees. As a result quantity and quality of performance increases.
Reduced Supervision : Well-trained employees are self-reliant. They do not require continuous and intensive supervision.
Better Safety: Training makes employees proficient and reduces accidents. It makes employees safety conscious.
Economy : Trained employees will use facilities properly and reduce wastage, spoilage and breakage. Loss due to damages is minimised.
Higher Morale : Effective training improves job attitudes and self-confidence of employees. Trained employees can work better and thereby earn rewards.

Question 9.
(a) Explain the following principles of Insurance: (5)
(i) Utmost good faith (Uberrimae fidei)
(ii) Doctrine of subrogation.
(b) What is meant by recycle ? How do environ- mental values help a common man ? (5)
Answer:
(a) (i) Utmost good faith (Uberrimae fidei)
An insurance contract is based on utmost good faith on the part of both the parties. It is the legal duty of the proposer (one who wants to get an insurance policy) to disclose all material facts about the subject to be insured. A material fact is one which would affect the judgement of the insurer in assessing the degree of risk.

(ii) Doctrine of subrogation
It implies that after indemnifying the insured for his loss, the insurer becomes entitled to all the rights and remedies relating to the property insured. The insurer shall step into the shoes of the insured. It is applicable to all contracts of indemnity and it is not applicable to life insurance.

(b) Conversion of wastes into re-usable materials is known as recycle.
It helps in the following ways :

It makes you more aware about environment’s resources.
It helps us to prevent excess usage of non-biode- gradble waste.
It helps to make maximisation of available resources.
It makes us aware about using harmful chemicals, pesticides.

Question 10.
Prepare a Trading, Profit & Loss A/C and Balance Sheet of Mr. A Haridas for the year ended 31s’ March, 1980 from the following Trial Balance : (10)
The Closing Stock on 31.03.80 was value at ₹ 40,000.

Answer:
In the books of Mr. A. Haridas Trading & Profit and Loss A/C for the year ended 31.3.80