SECOND PRELIMINARY EXAMINATION – JANUARY 2025

COMMERCE
Std. 12
Time: 3 hrs.
Marks: 80
Date:
07.01.2025
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Instructions to Candidates

​ You are allowed fifteen minutes for only reading the question paper.

​ You must NOT start writing during reading time.

​ There are 13 questions in the paper. All questions are compulsory.

​ It is divided into three sections: A, B and C.

S ​ Section A has sixteen subparts which are very short answer questions. Each question carries 1
mark.
​ While attempting Multiple Choice Questions in Section A, you are required to write only ONE
option as the answer.
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​ Section B has eight questions which are short answer questions. Each question carries 4 marks.

​ Section C has four questions which are long answer questions. Each question carries 8 marks.

​ Internal choices have been provided in two questions in Section B and in one question in Section
C.
​ The intended marks for questions are given in brackets [ ].

SECTION A - 16 MARKS

Question 1

(i) A company manufactures paper plates. Due to an unexpected surge in demand, the [1]
company quickly sources temporary unskilled workers through third-party agencies.
Which method of recruitment is adopted by the company?

(a) Employment exchanges

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 (b) Personal consultants

(c) Labour contractors

(d) Advertisements

(ii) Tata Steel set a specific objective to achieve carbon neutrality by 2045, aligning it [1]
with its mission of sustainable growth. This objective remains flexible to adapt to
evolving technologies and market dynamics while providing measurable milestones
for progress.
(Source (edited):
https://www.tatasteel.com/investors/integrated-report-2023-24/strategic-objectives.h
tml)

Which combination of the following statements correctly describes the

characteristics of objectives as a type of plan.

S (P) Objectives should be specific, measurable, and time-bound, providing clear

direction for the organization.

(Q) Objectives must be aligned with the company’s mission and vision, ensuring
consistency in decision-making.
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(R) Objectives should be flexible, allowing for adjustments based on changing
market conditions and organizational needs.

(S) Objectives are designed to focus exclusively on maximizing immediate profits,

disregarding long-term growth or sustainability.

(a)​ (P), (Q) and (R) are correct.

(b)​(P), (R) and (S) are correct.
(c)​ (Q), (R) and (S) are correct.
(d)​(P), (Q) and (S) are correct.

(iii) Which of the following statements about a bank draft is INCORRECT? [1]
(a) Secure payment method issued by a bank.
(b) Payable on demand.
(c) Danger of dishonour.

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 (d) Requires the payer to prepay the amount.

(iv) A tech company issued preference shares to raise capital for expanding its Research [1]
and Development division. Which of the following reasons will attract investors?
(a) No requirement to get involved in management decisions.
(b) Participation in excess profits during peak periods.
(c) Provides flexibility in capital structure.
(d) Assurance of stable returns.

(v) [1]

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(Source: https://officience.com/knowledge/)
Identify the element of Product Mix shown in the above image.
(a) Trademark
(b) Branding
(c) Labelling
(d) Packaging

(vi) Study the relation between the first and the second words given below and fill in the [2]
fourth word on that basis.
(a) Sale of book debts: Factoring:: Purchase of machinery on credit: ________
(b) Demographic trends: Social environment :: Industrial infrastructure:__________

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(vii State whether the following statements are TRUE or FALSE.
)
(a) Controlling is confined to detecting errors and defects in performance. [1]
(b) Management is not involved in creating or enforcing rules. [1]

(vii [1]
i)

S Identify the organisational structure from the given image.

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(ix) [1]

From the above image, which need of an employee will be satisfied as per Maslow’s
theory.

(x) A grocery store maintains a reserve fund within its working capital to mitigate risks [1]
from fluctuating raw material prices and potential market downturns.
Identify the type of working capital maintained by the grocery store.

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(xi) A printing company relies heavily on good quality toner cartridges for producing [1]
custom brochures for clients.
What type of industrial product is a toner cartridge?

(xii A consumer purchases a low-cost blender without checking the ISI mark leading to [1]
) frequent malfunctions and dissatisfaction with its performance.
Which consumer responsibility is overlooked by the consumer?

(xii Apex Dynamics adopts a hybrid approach wherein the top management engages in [1]
i) strategic decision-making, such as global expansion plans while day to day
operations are delegated to other managers.

Which principle of management is adopted by Apex Dynamics?

(xi Assertion (A): Each group of activities with the same objective must have one plan [1]
v) of action and must be under the control of a supervisor.

Reason (R): Assigning multiple supervisors to each group of activities facilitates a

S greater variety of ideas and contributions.

(a)​ Both A and R are true and Ris the correct explanation of A.
(b)​ Both A and R are true but R is not the correct explanation of A.
(c)​ A is true and R is false.
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(d)​ Both A and R are false.

SECTION B - 32 MARKS

Question 2

(i) GreenTech Solutions provides stable contracts and opportunities for career [4]
advancement. This commitment to employee retention enables individuals to work
together with a shared sense of security, fostering collaboration and a unified
company culture.
Identify and explain the two principles of management implemented by GreenTech

OR

(ii) Southwest Airlines plans to implement the "Customer First" approach. This defines [4]
boundaries by ensuring all decisions prioritize customer satisfaction, guiding
employees to deliver exceptional service.

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 Mention the type of plan implemented by Southwest Airlines and explain its any
three characteristics.

Question 3
[4]

Coordination is the essence of management. Comment.

Question 4 [4]

The HR manager is tasked with ensuring that the company hires the right talent for a new
project. In light of this statement, discuss the first four steps of the staffing process.

Question 5 [4]

Explain the features of RTGS.

S
Question 6

Geeta buys a branded air fryer worth ₹10,000 from an e-commerce platform. Upon
receiving the product, she discovers that the model lacks the quality and functionality of
the original brand. She tries to initiate a return, but the return process is not clearly
mentioned on the e-commerce platform.
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i)​Mention the judicial mechanism where Geeta can file her complaint. [1]

ii)​Explain the rule of e-commerce that is violated. [1]

iii)​Under the Consumer Protection Act 2019, what punishment can be given to the [2]
manufacturer of the air fryer?

Question 7

By selecting experienced leaders, John, the General Manager, fosters a strong

organizational structure that drives innovation and operational efficiency.

i) What level of management does John belong to? [1]

ii) Explain any three other functions of John as a General manager. [3]

Question 8 [4]

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What are the three key features of a payment card that offers an overdraft facility to the
consumers?

Question 9

In order to capitalize on the bullish market and maintain long-term stability, Multilink [4]
company plans to reorganize its capital structure. The company aims to minimize the costs
associated with issuing equity shares while limiting the dilution of ownership and control.
Identify and explain the factors that Multilink has considered while reorganizing its capital
structure.

OR

A company offers a deposit scheme to people at competitive interest rates compared to [4]
banks, for tenures ranging from 6 - 12 months. This enables the company to address its
immediate funding needs.

S
Explain any four benefits to the company from this scheme.

SECTION C - 32 MARKS
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Question 10

(i) Explain the internal factors of the microenvironment that help the company achieve [5]
success.

(ii) Distinguish between Training and Development. [3]

Question 11

(i) At NextEra Global, the organization is structured through clear hierarchical roles, [5]
and reporting lines, ensuring efficient decision-making and accountability.
Simultaneously, the company fosters collaborative workspaces and open
communication channels that encourage innovation and employee engagement.
Distinguish between the two types of organizational structures adopted by NexEra
Global.

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(ii) A retail company wishes to purchase property and high-value equipment to expand [3]
its operations.
Explain any three factors that will affect the company’s decision?

OR

(i) In a marketing firm, subordinates often report only positive sales figures and
successful campaigns to their superior, fearing that any negative data might be
viewed unfavorably. Additionally, rigid hierarchy prevents employees from
collaborating freely across teams, slowing the decision-making process.

a) Identify and explain the two communication obstacles that the employees face in [2]
the given marketing firm.

b) Suggest any three ways that can help to reduce the obstacles to effective [3]
communication.

S
(ii) A company raises long-term funds with fixed interest payments to investors.
Explain any three features of such funds.

Question 12
[3]
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(i) Emily owns a business specializing in ‘made to order’ cakes. She personally
interacts with customers to gain a deeper understanding of their preferences. Due to
increase in customer base, she wants to use a different channel of distribution than
the one she is using now.

a) Identify the channel of distribution currently used by Emily. [1]

b) Explain the product related factors that Emily must keep in mind while choosing [4]
a different channel of distribution.

(ii) Explain any three key objectives of marketing. [3]

Question 13

Bluewave Tech is looking to raise capital to expand its product portfolio, refine its current
and upcoming offerings, and phase out products that no longer contribute to profitability.
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It aims to establish a distinct market presence that differentiates its products from those of
its competitors. The company also wants to bolster its reputation and goodwill among
existing and potential investors.
The Board of directors have proposed the following two options to achieve the company’s
goals.
●​ Offering the opportunity to existing shareholders to acquire more shares at a price
lower than the market price.
●​ Allotting additional equity to shareholders without any additional cost.

(a) Identify the two functions of marketing implemented by Bluewave Tech. [1]

(b) Explain how the element of the product mix highlighted above, will benefit the [4]
company.

(c) Bring out the difference between the two options proposed by the Board of [3]
Directors.

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