ISC Class 12 Commerce Syllabus

COMMERCE (857)
Aims:
1. To develop an interest in the theory and 3. To provide a study of the more important
practice of business, trade and industry. aspects of the commercial world.
2. To familiarise candidates with theoretical 4. To provide knowledge of the activities of
foundations, organising, managing and commerce in the marketing of goods and
handling operations of a business firm. services.

CLASS XI

There will be two papers in the subject: (b) Commerce: branches of Commerce.
Paper I - Theory: 3 hours ……80 marks Commerce - its nature and functions;
importance of Commerce. Branches
Paper II- Project Work ……20 marks of Commerce - trade and aids to
trade. Relationship between
PAPER - I (THEORY) – 80 Marks commerce, trade and industry.
Part I (20 marks) will consist of compulsory (iii) Business objectives.
short answer questions testing knowledge, Business objectives: economic; social;
application and skills relating to elementary/ human and national. Role of Profit in
fundamental aspects of the entire syllabus. business.
Part II (60 marks) will consist of eight questions
2. Forms of Business Organisations
out of which candidates will be required to
answer five questions, each carrying 12 marks. (i) Introduction to business organizations.
Meaning, characteristics, types (private
1. Nature and Purpose of Business sector, public sector, Public Private
Partnership (PPPs) /Joint Sector).
(i) Classification of human activities - Comparison between different types of
economic and non-economic. organizations.
Classification of human activities - (ii) Sole trader - objectives; formation; merits
economic and non-economic. Types of and demerits.
economic activities.
Meaning and definition of sole trader;
Distinction between business, profession characteristics and objectives of sole
and employment. trader; merits and demerits.
(ii) Definition and concept of business; (iii) Partnership
classification of business activities. (a) Meaning, features; types of partners
Definition of business. Characteristics of and partnership firms.
business. Classification of business
Meaning and definition of
activities:
partnership; features of partnership
(a) Industry: types of industries on the firms; types of partners and
basis of activity (primary and partnerships.
secondary) and on the basis of size
(micro, small, medium and large). (b) Registration of Partnership firms.
Role of small businesses in India. Formation, meaning and contents of
partnership deed; registration and
consequences of non-registration.

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 (c) Evaluation of partnership; merits and (v) Public Sector Undertakings.
demerits. (a) Meaning; characteristics, objectives, role
Self-explanatory. and forms of Public Sector Undertakings
(Departmental Undertakings, Public
(d) Comparison of sole proprietorship Corporations and Government
and partnership. Companies).
Self-explanatory. Public Sector Undertakings – meaning;
(iv) Corporate Organisations. characteristics, objectives, role
and criticisms. Forms of Public
(a) Joint Stock Company: meaning, Sector Undertakings (Departmental
features, merits, demerits and undertakings; Public Corporations and
objectives. Government companies – definitions,
(b) Stages of Formation of a Company. features, merits and demerits).
(c) Promotion, meaning, role and types (b) Public Private Partnerships.
of promoters. Meaning and features of PPPs.
(d) Incorporation of a company - (vi) Co-operative organisations - meaning;
Meaning and steps of incorporation characteristics and types.
(including filing of documents), Co-operative organizations - meaning;
certificate of incorporation. characteristics, advantages and
(e) Memorandum of Association and disadvantages; Types of cooperative
Articles of Association (excluding organizations, distinction between joint stock
alterations) and distinction between companies and cooperative organizations.
the two documents.
3. Social Responsibility of Business and
Meaning and contents of MOA and Business Ethics
AOA. Distinction between the MOA
and AOA. Concept and need for social responsibility.

(f) Commencement of business. Responsibility towards owners, investors,

consumers, employees, government and
Steps, Certificate of Commencement. community; Responsibility of business
(g) Prospectus and statement in lieu of towards protection of environment; Meaning
prospectus – meaning and contents and importance of Business ethics.
only.
4. Emerging Modes of Business
(h) Types of companies- Classification of
companies on the basis of mode of (i) E-business.
incorporation, liability of members, Scope and benefits, Resources required
public interest, ownership, control for successful e-business implementation,
and nationality. online transactions, payment
Public and private companies and mechanisms, security and safety of
their comparative studies, privileges business transactions.
of private companies. (ii) Outsourcing.
(i) Global enterprises – Meaning, Concept, need and scope of BPO and
characteristics, merits and demerits KPO.
of Global Enterprises. (iii) Smart Cards.
Meaning and utility.

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5. Stock Exchange 7. Foreign Trade
(i) Meaning and importance. (i) Meaning, difference between internal
(ii) Functions and services. trade and external trade.
(iii) Major Stock Exchanges in India (BSE, Meaning and characteristics of
NSE, DSE, ASE) – types and locations. international trade; problems of
international trade; advantages and
(iv) Types of operators – Brokers, Jobbers,
disadvantages of international trade.
Bulls and Bears.
(v) Terms used in Stock Exchange - (ii) Export trade – Meaning, objectives and
ex-dividend, cum dividend, spot delivery, procedure of export trade.
forward delivery. Self-explanatory.
(vi) SEBI – functions and objectives. (iii) Import trade – Meaning objectives
Self-explanatory purpose and procedure.
Meaning and functions of import trade;
6. Trade objectives, purpose and procedure.
(i) Wholesalers. (iv) Documents involved in international
Meaning and services of wholesaler to trade.
retailer, customer and producer. Documents involved in export trade, such
(ii) (a) Retail trade – Meaning and as: indent, letter of credit, shipping
characteristics. order, shipping bill, mate’s receipt, bill
of lading, certificate of origin, consular
Retail trade - meaning, invoice, documentary bill of exchange
characteristics of retail trade. (DA/DP), all need to be explained.
Distinction between wholesale and
Documents involved in import trade,
retail trade.
such as: import license, indent, letter of
(b) Types of retail trade - Itinerant and credit, documentary bill of exchange, bill
small scale fixed shops: departmental of entry, bill of sight, port trust dues
store, chain store, mail order houses, receipt, application to import, advice
tele shopping, franchise, consumer note, bill of lading, all need to be
cooperative stores, hypermarkets and explained.
automatic vending machines. (v) World Trade Organisation.
Meaning, features, merits and WTO-meaning and objectives.
demerits to be covered.
(c) Documents used in home trade. 8. Insurance
Documents and procedure used in (i) Insurance – Meaning, objectives and
home trade – inquiry; quotation; purpose.
catalogues; order; invoice; debit
Meaning, objectives and purpose of
note; credit note. insurance; Concept of re-insurance and
Price quotations - cash discount and double insurance.
trade discount.
(ii) Risks in business - insurable and
(iii) Role of Chambers of Commerce and non-insurable.
Industry and Trade Associations.
Risks in business - insurable and
Meaning and functions of Chambers of non-insurable - meaning and examples of
Commerce and trade associations. both. Characteristics of insurable risks.

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 (iii) Principles of insurance. Analyze each project in terms of:
Fundamental principles to be explained: − Objectives
utmost good faith; insurable interest; − Profitability
indemnity; contribution; doctrine of − Adherence to the time schedule for
subrogation; causa proxima. mitigation
of loss. project completion.
− Social utility
(iv) Types of insurance: life and non-life.
− Conclusion.
Types of insurance – life, health, fire, 4. Identity two Public Private Partnership
marine, motor, social and fidelity projects.
insurance (Meaning and importance
only). Find out:
− The equity participation of both the
partners.
PAPER II – PROJECT WORK – 20 Marks
− Objectives of the partnership
Candidates will be expected to have completed − Strengths both partners bring into the
two projects from any topic covered in Theory. venture.
Mark allocation for each Project [10 marks]: 5. Select one consumer cooperative and one
Overall format 1 mark housing cooperative.
Content 4 marks For each of the cooperatives:
− State the objectives.
Findings 2 marks − The organizational structure.
Viva-voce based on the Project 3 marks − Details of surplus distribution and the
form of government support.
A list of suggested Projects is given below: 6. Study real time cases in which organizations
1. Select a daily use consumer product. Trace did not show responsibility towards
its origin right from the primary industry investors/ consumers/ employees/
through the secondary and tertiary industries. government/ community. Take at least two
Draw a flow chart to include all the business such cases. For each case prepare a report
activities in its path from the producer to the based on the following:
consumer.
− A brief about of the case.
2. Assume you are starting a partnership firm
with your friend/friends. Develop a business − Different issues involved in the case.
plan covering the following aspects: − Who was at fault and why?
− Formation of this partnership firm – rules − What should the company have done to
and steps that would be followed stand by the business ethics?
including the partnership deed − Do you agree with the company’s
− Choice of types of partners involved and viewpoint? Give reasons.
your justification for the same.
7. Document and analyze the Corporate Social
3. Select two infrastructure projects of public Responsibility activities of a pharmaceutical
sector undertakings that have been recently company and a five-star hotel.
commissioned.
Comment on the changing role assumed by
Corporates towards business ethics and social
responsibility in the last two decades.

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8. Identify any trade association and chamber of Prepare a report highlighting:
commerce headquartered in your town/city. − Their contribution to the business
Study each in terms of: community and the nation.
− Its objectives. − Their growth over the past 10 years in
India.
− Services provided to members.
Comment on the social cost of such
− Help given to the business community. organisations.
9. Contact an insurance agent and collect 11. Visit a company that is involved in
information about 5 different types of life e-business (which offers online services) or a
insurance policies provided by different consultancy, which helps in developing
companies. Include information as per details websites for such companies.
given below for every insurance plan and Study different aspects they keep in mind
make a comparative analysis. while preparing business plans for
− Premium of insurance e-business. Include information regarding the
− Terms of inclusions and exclusions of payment mechanisms, security and safety of
each policy business transactions. The risks involved in
− Term of the policy e-business should also be covered. Also
− Withdrawal of money from the insurance include the steps they follow while
scheme (surrender / foreclosure) implementing the plan and starting the
− Advantages/disadvantages of the plan business.
10. Study the BPO and KPO industry in India.
Collect newspaper/magazine articles on
BPOs and KPOs.

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 CLASS XII
There will be two papers in the subject: (ii) Sources of finance for a Joint Stock
Paper I - Theory: 3 hours ……80 marks Company.

Paper II- Project Work ……20 marks (a) Different types of shares: equity,
preference.
PAPER - I (THEORY) – 80 Marks Bonus shares, rights issue, ESOP, Sweat
Part I (20 marks) will consist of compulsory short Equity Shares, Retained earnings.
answer questions testing knowledge, application and Long-term sources of funds.
skills relating to elementary / fundamental aspects of
Equity shares - features, advantages and
the entire syllabus.
disadvantages.
Part II (60 marks) will consist of eight questions out
Preference shares - features, types
of which candidates will be required to answer
five questions, each carrying 12 marks. advantages and disadvantages;
distinction between equity shares and
1. Business Environment preference shares.
Concept, and importance of Business Bonus and rights issue, ESOP and Sweat
Environment. Equity Shares - meaning. Distinction
between bonus shares and right shares.
Meaning, features and importance of Business
Retained earnings – meaning, merits and
Environment;
demerits.
Dimensions of Business Environment – Micro
(b) Loan capital: debentures.
(Internal and External factors) and Macro
(Economic, social, technological, political and Debentures – meaning; kinds of
legal) – meaning and components. debentures; advantages and
disadvantages of debentures. Distinction
S.W.O.T. Analysis - A basic understanding of
between shares and debentures.
S.W.O.T. (Strength, Weakness, Opportunity and
Threat) Analysis. (c) Loans from commercial banks and
Financial Institutions.
2. Financing Loans from commercial banks and
(i) Capital: Sources of finance for sole trader; Financial Institutions - meaning,
partnership; Joint Stock Company; financial advantages and disadvantages.
planning.
(d) Short-term sources of funds.
Importance of finance for business. Sources of
Short-term sources of funds – different
finance for different types of business firms.
types of short-term financial assistance by
Meaning, features and importance of
Commercial Banks; public deposits, trade
financial planning. Factors affecting capital
credit, customer advances, factoring,
structure. Fixed capital - meaning, factors
Inter corporate deposits and installment
affecting fixed capital. Working capital –
credit. Meaning, advantages and
meaning, types; factors affecting working
disadvantages of various sources of funds.
capital. Comparison between fixed and
working capital.

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 (iii) Banking - latest trends. (v) Functions of Management: Planning;
Organising; Staffing; Directing; Controlling
Online services- transfer of funds through
and Coordinating.
Real Time Gross Settlement (RTGS), National
(a) Planning:
Electronic Funds Transfer (NEFT),
Meaning, steps, importance & limitation;
Immediate Payment Service (IMPS), issue of
Types of plans; Objectives, policy,
demand drafts online meaning and features. procedures, method, role, budget,
Online payments, e-Banking – meaning and program – meaning, features and
features, advantages and disadvantages. differences.
(b) Organising:
Mobile Banking - SMS alerts, transfer of
Meaning, importance, steps; Structure of
funds, making payments - advantages and
organization (line, line and staff,
disadvantages. functional and divisional; Formal and
Debit Cards vs Credit Cards, ATM informal organization) – Meaning,
(Automated Teller Machine) – Meaning; features, merits, demerits and differences
between line and line & staff, functional
Debit card and credit card: features and
and divisional, formal and informal;
differences. Meaning and importance of delegation
of authority; Decentralization v/s
3. Management Centralization, comparison between
(i) Management: Meaning, objectives and delegation and decentralization, merits
and demerits.
characteristics of management.
(c) Staffing:
Meaning of Management: as an activity; as a Meaning, steps and importance;
group; as a discipline; as a process. Recruitment – Meaning and sources;
Objectives and characteristics of Selection –Meaning and procedure;
management. Training and development – Meaning,
(ii) Nature of Management – Science, Art and types of training, difference between
selection and recruitment, Training and
Profession. Development.
Self explanatory. (d) Directing:
(iii) Importance of Management. Meaning and importance; Supervision-
Meaning, functions and span of control;
Self explanatory. Motivation - Meaning and Maslow’s
(iv) Principles of Management: nature of theory; Leadership- Meaning and
qualities of a good leader;
principles; need for principles.
Communication - Meaning, objectives
Nature of principles of Management; need for and process. Barriers to communication
principles of management; Taylor’s 5 and overcoming barriers to
scientific principles of Management; Fayol’s communication.
14 principles of Management; Relevance of (e) Controlling:
the principles of Management in today’s Meaning, steps and importance;
business scenario. Comparison of Taylor's Relationship between Planning and
and Fayol’s principles. Controlling; Management by Exception.
(f) Coordination:
Meaning of Coordination; Coordination
as an essence of Management.

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4. Marketing PAPER II – PROJECT WORK – 20 Marks
(i) Marketing: concept and functions. Candidates will be expected to have completed two
Meaning and types of markets; meaning and projects from any topic covered in Theory.
features of marketing. Marketing concepts: The project work will be assessed by the teacher
traditional v/s modern - meaning and features and a Visiting Examiner appointed locally and
of traditional and modern concepts of approved by the Council.
marketing. Comparison between marketing
Mark allocation for each Project [10 marks]:
and selling. Objectives and importance of
marketing; functions of marketing – meaning, Overall format 1 mark
features of each function of marketing.
Content 4 marks
(ii) Marketing Mix - Meaning and Elements.
Findings 2 marks
Product Mix - goods and services - meaning,
features and types of goods; meaning, Viva-voce based on the Project 3 marks
features of services; difference between
A list of suggested Projects is given below:
product and services. Branding: meaning and
merits. Labeling: meaning and merits. 1. Compare marketing strategies adopted by two
Packaging: meaning and features of good different companies of the same industry
packaging. (FMCG / Telecommunication / media / education
Price Mix – meaning, factors determining industry etc.) keeping in mind the following:
price. − Product mix
Place Mix – meaning, channel of distribution − Price Mix
choice of channels of distribution and − Place Mix
physical distribution.
− Promotion Mix
Promotion Mix – Meaning and elements.
2. Collect newspaper/magazine clippings of five
Elements – Advertising, sales promotion,
cases filed by consumers in the Consumer Court.
personal selling and publicity – meaning,
features, objectives and differences. Find out the rights violated, and the redressal
mechanism used.
(iii) Consumer protection: rights of consumers,
methods of consumer protection. What was the outcome of each case?
Need for consumer protection; methods of 3. Visit a commercial Bank. Find out the procedure
consumer protection - self-help, legislative to open a savings account.
measures and consumer associations/NGOs,
Find out the details of various Agency & General
Consumer Protection Act, 2019 - Rights of
utility services provided by the bank.
consumers.
4. Compare the interest rates offered by five
The Consumer Disputes Redressal
different commercial banks on fixed deposits
Commissions (National, State and District).
under various categories (general and senior
Difference between Consumer Protection Act,
citizens) and various time durations.
1986 and Consumer Protection Act, 2019.

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 Find out the procedure and formalities for opening 7. (a) Study the sources of recruitment and steps
a fixed deposit account. involved in the selection procedure adopted
by two companies of the same industry.
What is the procedure for closing the account on
maturity and before maturity period? (b) Compare and evaluate the sources of
recruitment and the selection process adopted
5. Select five different companies across varying
by the selected companies.
industries such as I.T., textiles, FMCG, Health
Care, etc., included in the SENSEX. Keeping a 8. Formulate a capital plan for a hypothetical business
hypothetical base money of Rupees One Lakh, organization.
invest in the shares of the selected companies. The Justify your formulated plan.
movement of share prices selected by you should
9. Choose two companies of the same industry.
be monitored over a period of one month on a
Study their organizational structure. Also give
daily basis. A uniform / standard practice of
information with regard to:
either using the opening price or the closing price
on a particular day of the week should be used by (i) Hierarchy
all students in the class. (ii) Centralization and delegation of authority
At the end of the month, analyse your investment (iii) Flow of information (scalar chain)
in a spread sheet and give reasons for your choice (iv) Span of control
of scripts. (v) Channel of communication.
6. Find out the names of companies under various 10. Select any business undertaking. Study the
sectors (FMCG, Pharma, automobile, etc) selected business in terms of ownership, capital
included in the NIFTY and the SENSEX. and profitability.
Make a chart of the same and track its movements Make a S.W.O.T. analysis and present it in a
over a period of one week. tabular form.
NOTE: No question paper for Project Work will be
set by the Council.

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 SAMPLE TABLE FOR PROJECT WORK
S. Unique PROJECT 1 PROJECT 2 TOTAL
No. Identification MARKS
Number A B C D E F G H I J
(Unique ID) Teacher Visiting Average Viva-Voce Total Teacher Visiting Average Viva- Total (E + J)
of the Examiner Marks by Visiting Marks Examiner Marks Voce by Marks
candidate (A + B ÷ 2) Examiner (C + D) (F + G ÷ Visiting (H + I)
2) Examiner
7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 20 Marks

10

*Breakup of 7 Marks to be awarded separately by

Name of Teacher:
the Teacher and the Visiting Examiner is as
follows:
Signature: Date
Overall Format 1 Mark
Content 4 Marks Name of Visiting Examiner
Findings 2 Marks
Signature: Date
NOTE: VIVA-VOCE (3 Marks) for each Project is to be conducted only by the Visiting Examiner, and should be based on the Project only.

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