ICSE Commercial Applications

PREFACE
With a growing emphasis on competency-based education globally, the educational landscape in India
has also steered towards high-quality learning experiences that allow learners to incorporate critical
thinking and problem-solving approaches. This approach goes beyond rote memorisation and focuses
on developing the skills and knowledge that students need to apply in their real-world scenarios.
The Council for the Indian School Certificate Examinations (CISCE), as a national-level progressive
examination board, has taken several steps to infuse competency-based education in CISCE schools
through teacher capacity-building on item development for competency-based assessments and the
incorporation of competency-focused questions at the ICSE and ISC levels from the examination year
2024.
To further facilitate the adoption of competency-based assessment practices in schools and to support
teachers and students towards the preparation for attempting higher-order thinking questions in future
board examinations, Item Banks of Competency-Focused Practice Questions for selected subjects at
the ICSE and ISC levels have been developed. This Item Bank consists of a rich variety of questions,
both objective and subjective in categories, aimed at enhancing the subject-specific critical and
analytical thinking skills of the students.
In this Item Bank, each question is accompanied by the topic and cognitive learning domain/s that it
intends to capture. The cognitive domains reflected in these questions include understanding, analysis,
application, evaluation and creativity, along with some questions of the higher-order recall domain. The
Answer Key at the end presents the possible answers to a given question, but it is neither limiting nor
exhaustive.
These practice questions are also meant to serve as teacher resources for classroom assignments and as
samplers to develop their own repository of competency-focused questions. Apart from offering a good
practice of higher-order thinking skills, engaging with these questions would allow students to gauge
their own subject competencies and use these assessments for learning to develop individual learning
pathways.
During the development of this Item Bank, a large pool of questions was prepared by a team of
experienced CISCE teachers. The questions that were finalised by the internal and external reviewers
as being higher-order competency-focused questions have been collated in this item bank.
I acknowledge and appreciate all the ICSE and the ISC subject matter experts who have contributed to
the development and review of these high-quality competency-focused questions for CISCE students.
We are hopeful that teachers and students will utilise these questions to support their teaching-learning
processes.
October 2024 Dr. Joseph Emmanuel

Chief Executive & Secretary
CISCE
Commercial Applications ICSE – Class X
Table of Contents
S.No. Type of Questions Page Nos.
I. Multiple Choice Questions 2-11
II. Very Short Answer Questions 11-12
III. Short Answer Questions 13-16
IV. Long Answer Questions 17-20
Answer Key 21-32
ICSE Competency-Focused Practice Questions 1

COMPETENCY-FOCUSED PRACTICE QUESTIONS
ICSE - CLASS X
Commercial Applications
I: Multiple Choice Questions (1 Mark)
S.No. Questions
1. [Understanding Human Resource]
Human Resource Management (HRM) emphasises the solution of staff problems to
achieve both the personal goals of employees and overall organisational objectives.
Which feature of HRM does it highlight?
(a) Comprehensive function
(b) Action-oriented
(c) People-oriented
(d) Pervasive function [Understanding]

Handling employee grievances and improving the quality of employees' work life is
_____ function of Human Resource Management.
(a) development
(b) compensation
(c) integration
(d) maintenance [Understanding]

Based on the two statements (A) & (R) given below choose the appropriate option
from the ones that follow:
Assertion(A): HRM is inherent in all the organisations and at all levels.
Reasoning (R):: HRM is interdisciplinary in nature.
(a) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
(c) (A) is true, (R) is false.
(d) (A) is false, (R) is true. [Analysis]

S.No. Questions
4. [Development of Public Relations]
Read the following statements I and II and then choose the most appropriate option
below:
Statement I: Public Relations is not propaganda.
Statement II: In Public Relations, ends can never justify use of deceptive and harmful
means .
(a) Both the statements are incorrect.
(b) Statement I is correct, but Statement II is incorrect.
(c) Both the statements are correct, and statement II supports Statement I.
(d) Both the statements are correct, but statement II does support statement I.
[Analysis]

Based on the two statements (A) & (R) given below choose the appropriate option
Assertion(A): Geo-thermal energy is a reliable, stable source unaffected by changes in
weather conditions
Reasoning(R): The cost of investigation, exploration and drilling are quite high.
(a) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
(c) (A) is true, (R) is false.
(d) (A) is false, (R) is true. [Analysis]

The post of senior accountant in ARK Associates has fallen vacant due to the sudden
demise of Mrs. Dutt. Mention the function of Human Resource Management that will be
undertaken now.
(a) Procurement
(b) Developmental
(c) Maintenance
(d) Compensation [Understanding]
7. [Understanding the Basics of Markets and Marketing]

A doctor has to be present in the Operation Theatre while performing surgery on a patient.
Which feature of Service does it point to?
(a) Perishability
(b) Inseparability
(c) Intangibility
(d) Variability [Understanding & Application]

S.No. Questions
Based on the two statements (A) & (R) given below, choose the appropriate option
Assertion(A): Advertising is an impersonal form of communication.
Reason(R): Advertising is less flexible as the message is standardised and is not tailor-
made to the requirements of different customers.
(a) A is true, but R is false.
(b) A is false, but R is true
(c) Both A and R are true, and R explains A
(d) Both A and R are true, but R does not explain A. [Analysis]

Nike is selling its apparels through offers and contests with prizes Which method of
promotion is mentioned here?
(a) Sales promotion
(b) Personal selling
(c) Brand promotion
(d) Publicity [Understanding & Application]

Identify the type of advertising in the picture.
(a) Institutional advertising

(b) Informative advertising
(c) Reminder advertising
(d) Consumer advertising [Application]

S.No. Questions
Identify the promotion method mentioned in the above picture.
(a) Sales promotion

(b) Personal selling
(c) Coupons
(d) Channel of distribution [Understanding]

An off-the-job training method in which trainees are taught problem-solving skills.
(a) Internship training
(b) Case study
(c) Sensitivity training
(d) Role-playing [Understanding]
13. [Understanding Finance]

Which of the following is not a fixed cost for a hotel?
(a) Bank loan repayment
(b) Waiting-staff wages
(c) Air-conditioning bills
(d) Rent to the property owner [Understanding]

Examples of variable costs for a motor vehicle manufacturer do NOT include:
(a) costs of raw material
(b) piece rate payment system
(c) costs of component parts
(d) insurance costs [Recall]

S.No. Questions
Overheads are BEST described as:
(a) Cost that varies with the output level in the short run.
(b) Costs that are fixed in the short run.
(c) Costs that must be paid to generate output.
(d) Costs from non-operating activities. [Understanding]

Assertion (A): Semi-fixed costs are those costs which vary but not in direct proportion
to changes in the volume of production.
Reason (R): These costs vary in total amount but remain constant per production unit.
(a) Both A and R are incorrect.
(b) A is correct, but R is not the correct explanation for A.
(c) A is correct, and R is the correct explanation for A.
(d) Only A is correct. [Understanding]

According to the Matching Principle concept of accounting, which of the following
statements applies?
(i) The cost of a particular period should be charged from the revenue of the same period
only.
(ii) It suggests that every debit has a corresponding and equal credit.
(iii)The business will continue to exist for a long time in the future.
(iv) It provides guidelines as to how the expenses are to be matched with revenue.
(a) (i) & (iii)
(b) (ii) & (iii)
(c) (i) & (iv)
(d) only (iii) [Understanding]

Spice Jet Ltd. charges for customers hot meals, snacks, and beverages separately, along
with the rest of flight charges.
Identify the type of cost.
(a) Fixed cost
(b) Variable cost
(c) Indirect cost
(d) Direct cost [Analysis]

S.No. Questions
Which is the MOST important feature of personal selling?
(a) Art
(b) Oral
(c) Flexibility
(d) Long-lasting relationship [Analysis]

Read the following statements I and II and then choose the most appropriate option
below:
Statement A: Marketing is a wider term which does not include selling.
Statement B: Selling is obtaining orders from customers.
(a) Statement A is true, and Statement B is false.
(b) Statement A is false, and Statement B is true.
(c) Both Statements are true.
(d) Both Statements are false. [Analysis]

Assertion(A): The central bank exercises control over the credit-granting capacity of
commercial banks.
Reason(R): Commercial banks may give finance for unproductive purposes.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, and R is not the correct explanation of A.
(c) A is true, but R is false.
(d) R is true, but A is false. [Analysis]

The clearing house facility is a function of the central bank, which means:
(a) custodian of foreign currencies.
(b) making finance to build houses.
(c) give finance to the government.
(d) settling claim of commercial banks. [Recall]

S.No. Questions
Which of the following statements is(are) correct?
i. Fixed deposits are also known as time deposits, which last for a long period.
ii. Saving deposit accounts can open with the maximum amount specified.
iii. The depositor can withdraw money along with interest on the maturity date.
iv. Saving deposit accounts is not to develop the habit of saving amongst the people.
(a) i and ii are correct

(b) ii and iii are correct
(c) i and iii are correct.
(d) Only ii is correct. [Analysis]

In sales, the ability to effectively close deals is a crucial skill that separates a good
salesperson from a great one. It involves much more than merely presenting the product
or service; it is a comprehensive process that includes understanding the customer's
needs, building a relationship, and, finally, sealing the deal.
Source: https://www.linkedin.com/pulse/art-salesmanship-mastering-techniques-
closing-deals-jason-miller
Based on the passage above, which of the following statements is CORRECT about
selling?
(a) Selling is just presenting a product to the customer
(b) It is not required to understand the requirements of customers
(c) Selling is only completing the sales deal and getting commitment from the customers
(d) It is a comprehensive process. [Analysis]

Which statement is appropriate for the cheque?
(a) A cheque is drawn by a bank.
(b) A cheque cannot be made payable to bearer.
(c) A person who receives a cheque will pay collection charges.
(d) The payment of a cheque cannot be so quickly stopped. [Recall]

S.No. Questions
There is no scope for an increase in sales, and the sales curve stays at the same level. To
which stage of the product life cycle does the above statement refer?
(a) Growth Stage
(b) Maturity Stage
(c) Introduction Stage
(d) Decline Stage [Understanding]

Price mix does NOT involve decision regarding________.
(a) quality
(b) discounts
(c) allowances
(d) credit [Understanding]

The financial statement similar to Profit & Loss account, prepared by Help Age India
is______.
(a) income & expenditure a/c
(b) receipts & payments a/c
(c) balance sheet
(d) cash book [Understanding]

Identify which of the following is NOT an application-based market.
(a) Ray-Ban
(b) Blinkit
(c) BigBasket
(d) Myntra [Analysis]

In decline stage, the strategy adopted to evade sharp decline is _____.
(a) customer service
(b) selective promotion
(c) developing new markets
(d) selective distribution [Understanding]

S.No. Questions
With reference to the balance sheet of a non-trading organisation, which statement is(are)
correct?
i. It is always prepared for a specified period.
ii. It is a statement.
iii. Assets are shown on the credit side, and liabilities are shown on the debit side.
iv. It depicts the organisation's capital fund.
(a) ii and iv
(b) i and iii
(c) Only iv
(d) Only i [Understanding]

Assertion (A): The marketing mix is dynamic in nature.
Reason (R): Marketing mix helps in pursuing customer-oriented marketing.
(a) A is true, but R is false.
(b) A is false, but R is true
(c) Both A & R are true, and R explains A.
(d) Both A & R are true, but R does not explain A. [Understanding]
From the given picture, identify the pricing strategy adopted by the company for its
products.
(a) Going Rate policy
(b) Parity Pricing
(c) Skimming Pricing
(d) Penetrating Pricing [Understanding & Application]

S.No. Questions
Sai Vikrant Ltd, manufacturers of home appliances, conduct a survey to identify retailers
who can sell their products across the metro cities. Identify the channel of distribution.
(a) Manufacturer--Consumer
(b) Manufacturer-Wholesaler-Consumer
(c) Manufacturer-Retailer-Consumer
(d) Manufacturer-Wholesaler-Retailer-Consumer [Application]
II: Very Short Answer Questions (1 Mark)
Fill in the blanks from questions 35 to 40 with the appropriate term/phrase.

_______ an element of marketing mix, determines the purchasing power of a consumer.
[Understanding]

Amway is an example of ______ market. [Application]

Advertising costs tend to be considered as ________cost of a product. [Recall]

Rent and insurance costs are considered as _______ costs for most businesses. [Recall]

________ is an external source of recruitment which recruits semi-skilled and unskilled
personnel. [Recall]

A product is technology-based, whereas a service is ______-based. [Recall]
State True or False for the statements given in questions 41 to 51.

Channel of distribution creates possession utility. [Understanding]

Companies producing consumer durables generally opt for parity pricing.
[Application]


Personal selling cannot do a complete job of selling. [Recall]

While opening a bank account, there is no need to keep any initial balance in the account.
[Recall]

Fixed deposit account holders will get a chequebook for transactions. [Recall]

All items or facts, whether material or immaterial, are recorded in business. [Recall]

Variable costs are those that do not change. [Recall]

Labour turnover and absenteeism are reduced because the employees are well-trained.
[Analysis]

A long-term routine activity that supplements personal selling is called Sales promotion.
[Analysis]

Empathy and sympathy are two essential elements of Public Relations. [Recall]

Orientation Training may be avoided by an organisation. [Understanding]

III: Short Answer Questions (2 Marks)
S.No Questions
For questions 52 to 65, justify the given statements with arguments FOR or AGAINST the
statement.

Human Resource Management is a pervasive function. [Understanding & Analysis]

Renewable sources of energy must be substituted for non-renewable sources wherever
possible. [Application]

Services are variable. [Evaluate]

Gate hiring helps to fill permanent vacancies. [Evaluate]

Elimination of middlemen helps to reduce prices for consumers. [Analysis]

A Business survives forever. [Understanding]

Every transaction is recorded in at least three accounts. [Understanding]

There are certain costs which are neither totally fixed nor fully variable.
[Understanding]

The stability of the exchange rate will encourage foreign investment. [Analysis]

Current account holders will get a maximum amount of interest on their savings.
[Understanding]

Personal selling is a one-way process. [Understanding]
S.No Questions
In a future market, buyers and sellers make contracts without the motive of actual
delivery of goods. [Evaluate]

Receipts and payments account discloses the excess or shortage for the year. [Evaluate]

In the introduction stage of PLC prices are usually low. [Evaluate]
For questions 66 to 74, distinguish between the two terms/concepts given.

Human Relations and Public Relations. [Understanding & Analysis]

Job analysis and job evaluation. [Understanding & Analysis]

Preliminary Interview and Selection Interview. [Understanding]

Direct Expenses and Indirect Expenses. [Understanding]

Overdraft and cash credit. [Analysis]

Stale cheque and post-dated cheque. [Analysis]

Sales by inspection and Sales by description. [Analysis]

Capital market and Money market. [Analysis]

Receipts & payments account and Income & expenditure Account. [Analysis]

What duties should be followed by a dutiful consumer when purchasing a washing
machine? [Understanding]

S.No Questions
‘Advertising tempts people to buy goods which they cannot afford.’
Which criticism of advertising is mentioned here? Explain. [Analysis]

How is inbreeding a demerit to an internal source of recruitment? [Understanding]

Rohan attended an interview for the manager’s post. The interviewer criticised him and
intentionally put him in an awkward situation. What type of interview is mentioned here?
Explain. [Application]
Identify the type of advertisement mentioned in the picture and explain it briefly.
[Application]

Why do specimen signatures play an important role in opening a bank account?
[Understanding]

How would discounting bills be useful for businessmen? [Application]

Why is the demand draft a convenient method of payment? [Understanding]

OYO, Treebo, Fab Hotels come under Hospitality Industry. Name the pricing strategy
generally adopted by such competitors. Give one reason. [Application]

S.No Questions
On the basis of position of buyers and sellers, what type of market is D Mart?
[Application]
From the given picture, identify the direct selling method adopted by the company. Give
one merit of Direct selling. [Application]

IV: Long Answer Questions (5 Marks)
S.No Questions
Explain why stockholder relations with business corporations is important. What are the
main means of communication with them? [Understanding]

‘Advertising aims to put a product or service in the spotlight in hopes of drawing it
attention from consumers.’
With reference to the statement, explain the features of advertising. [Understanding]
(a) Identify and name the selection procedure displayed in the picture above. Explain
any two types of the same. [Application]
(b) Share the procedure of selection of employees in an organisation. [Understanding]
(c) List any two types of training which follows after selection.
[Understanding]

Elucidate the difference between sales and selling process. [Recall & Understanding]

How do commercial banks lend money to businesses? [Understanding]

Ajay wanted to open an account in State Bank of India. What are the different steps he
needs to follow to open an account? [Understanding]

S.No Questions
(a) Define the category of the bank mentioned in the above picture. What is the role of
RBI? [Recall & Application]
(b) How does RBI provide:
(i) clearing house facility?
(ii) acts as a banker’s bank? [Understanding]
(c) How does the RBI deal with:
(i) foreign exchange rate?
(ii) custodian of foreign currency reserves? [Recall & Understanding]

Based on the information given below, answer the questions from
The State Bank of India (SBI) offers a special fixed deposit for senior citizens known as
SBIWeCare, which gives higher interest rates to senior citizens for terms ranging from 5
to 10 years. SBI offers 0.50% higher interest rates to senior citizens, interest rates on
regular fixed deposits vary between 3.50% and 7.50% for tenures ranging from 7 days to
10 years. The bank offers 7.50% interest on SBI Wecare special FD.The last date to invest
in SBI Wecare is March 31, 2024. The scheme is available on fresh deposits and renewal
of maturing deposits.
Source: https://economictimes.indiatimes.com/wealth/invest/sbi-wecare-special-fd-for-
senior-citizens-with-higher-interest-rate-deadline-what-is-the-fd-
rate/articleshow/108345102.cms
(a) What are the advantages of fixed deposits for the senior citizen in the context of the
above case study? [Analysis & Understanding]
(b) Explain any other two accounts senior citizens can open in SBI other than fixed
deposit accounts. [Understanding]

Artificial Intelligence and electric cars are in the Second Stage of PLC.
State four features of the stage. [Understanding]

S.No Questions
With Amazon Great India Festival and Flipkart Big Billion Days kicking off with much
fervour, the e-commerce giants have released some interesting figures. Surprisingly,
most customers were from non-metro cities, according to all major retailers.
Amazon revealed that OnePlus, Samsung and Apple were the most-sold smartphone
brands.
The rise in demand for premium smartphones priced above Rs. 30,000 grew thrice
compared to 2022, while tablets saw twice the growth.
Flipkart said mobiles, appliances, lifestyle, beauty, general merchandise, electronics, and
home products saw the most orders across the country.
Source: https://www.theweek.in/news/biz-tech/2023/10/11 (edited)
(a) If smartphones are in the PLC where the third level market is emerging, in which
stage of PLC are smartphones? Explain the features of the stage.
[Analysis & Understanding]
(b) State five strategies smartphone companies can adopt to lengthen the stage identified
in (a). [Understanding]
(c) Which method of direct selling do Amazon and Flipkart follow? List four reasons
why direct selling is becoming popular.
[Analysis, Recall & Understanding]

S.No Questions
(a) Identify and explain the traditional channel of distribution normally preferred for the
products given in the picture.
(b) Name and explain the pricing strategy adopted for the goods shown in the picture.
(c) Explain the following:
(i) Tele market.
(ii) Markets on the basis of the nature of goods.
[Application, Understanding & Recall]
(a) With reference to the above picture, identify and discuss the particular cause which
results in ecological damage. [Understanding & Application]
(b) Explain three other causes of ecological destruction. [Analysis]

Answer Key
S.No Expected Answer

1. (b) Action-oriented
2. (c) integration
3. (b) Both Assertion and Reasoning are true, but Reasoning is not the correct explanation
of Assertion.
4. (c) Both the statements are correct, and Statement II supports Statement I.
5. (b) Both Assertion and Reasoning are correct, but Reasoning is not the correct
explanation of Assertion
6. (a) Procurement
7. (a) Inseparability
8. (d) Both A and R are true, but R does not explain A.
9. (a) Sales promotion
10. (b) Informative advertising
11. (a) Sales promotion
12. (b) case study
13. (c) Air-conditioning bills
14. (d) Insurance costs
15. (d) Costs from non -operating activities
16. (c) A is correct, but R is not correct explanation to A
17. (c) (i) & (iv)
18. (b) Variable Cost
19. (d) Long-lasting relationship
20. (b) Statement A is False, and Statement B is True.
21. (b) Both A & R are true, and R is the correct explanation of A.


22. (d) settling claim of commercial banks.
23. (c) i and iii are correct.
24. (d) It is a comprehensive process.
25. (c) A person who receives cheque will pay collection charges.
26. (b) Maturity Stage
27. (a) quality
28. (a) Income & Expenditure a/c
29. (a) Ray-Ban
30. (b) selective promotion
31. (a) ii and iv
32. (c) Both A & R are true, and R explains A.
33. (c) Skimming Pricing
34. (c) Manufacturer-Retailer-Consumer
35. Price
36. network
37. variable
38. fixed
39. Employment exchange
40. people / person
41. True
42. True
43. False
44. False
45. False
46. False


47. False
48. True
49. False
50. False (empathy is an important element of PR which means looking at things from others'
point of view, but sympathy is not an element of PR)
51. False (It is to familiarise new employees with the company, the work environment and
the existing employees to make workers comfortable and start work confidently.)
52. For:
It is inherent in all organizations and at all levels.
It is equally necessary in industries, armed forces, sports organizations etc.
53. For:
Renewable sources are replenished by nature whereas non-Renewable resources are not.
Renewable resources are pollution free whereas majority of non-renewable resources
create pollution.
54. For:
Services differs from person to person. It cannot be standardised.
55. Against:
Through gate hiring, factories will choose the candidates who have gathered near the
factory gate. It is used to fill temporary and casual vacancies.
56. For:
Advertisements establish a direct link between the manufacturers and consumers. Direct
contact helps to reduce the price for the consumers.
57. For:
On this assumption, a distinction is made between capital expenditure and revenue
expenditure.
Fixed costs are recorded at their original cost, less depreciation, and their market value
is not recorded, as these assets are not to be sold in the near future.
58. Against:
Whenever a transaction is recorded, it must record at least in two accounts, to balance
the equation.
According to the dual aspect principle, every debit has a corresponding credit.


59. For:
They are the combination of fixed and variable costs and are called semi-fixed costs or
semi-variable costs.
These costs vary but in indirect proportion to changes in production volume.
60. For:
The central monitors the exchange rate of the home currency compared to other
countries.
61. Against:
Current account is opened by businessmen where the bank pays no interest but makes a
small charge on current account.
62. Against:
Personal selling is not one way but a two-way process because it deals with persuading
consumers and listening to the feedback of consumers.
63. For:
As the purpose is to make profit out of fluctuations.
64. Against:
As Receipts and Payments, a/c records all receipts and payments irrespective of their
nature and period, surplus or deficit for the year cannot be known.
65. Against:
In the introduction stage, because of small-scale production and heavy promotional
expenditure, prices are generally high.
66. Human Relations: Focuses on procuring, developing and preserving employees and
manages work-related issues
Public Relations: Focuses on building and maintaining the external image and reputation
of the Organisation.
The second point may consist of the definitions of each.
67. (i) Job analysis: to study in detail the operations and responsibilities of a job
Job evaluation: determination of the relative worth of a job.
(ii) Job analysis: the purpose is to identify the nature of Human Resources required for
the Job.
Job evaluation helps to develop a suitable salary structure.


68. A preliminary interview is a brief interview conducted by the receptionist or other
officials to ascertain the qualifications, experience, age, etc.
Selection Interview provides a means of checking the information obtained through
application forms and tests.
69. Direct expenses

Which can be wholly and directly identified with a particular product. For example, hire
charges for a machine used for a particular job.
Indirect expenses
These expenses cannot be wholly and directly identified with a specific product or job.
70. (i) Overdraft is a revolving credit arrangement. Cash credit is a revolving credit
arrangement.
(ii) Overdraft is for a few days. Cash credit is for a longer period.
71. (i) A stale cheque is presented more than three months after the date written on it. A post-
dated cheque is presented before the date written on it.
(ii) A stale cheque cannot be presented again. Post-dated cheques can be presented gain.
72. (i) In sales by inspection method, buyers will inspect the goods before purchase. Goods
may be sold through catalogues, circulars, etc., for sale by description.
(ii) Selling by inspection is necessary when goods are standardised. Sales by description
widens the market.
73.
Capital Market Money Market
Provides long term Provides short term

finance to business finance to business
enterprises. enterprises.
Stock exchange, Various types of

financial banks.
institutions,
insurance
companies.,


74.
Basis Receipts Income &

&Payments a/c Expenditure
a/c
Nature It is a summary It is like Profit

of cash and Loss a/c
receipts and of a trading
payments. concern.
Type of It is a real It is a nominal

account account. account.
Object To know cash To ascertain

balance at the surplus at the
end of the year. end of the
year.
Nature of Both capital Contains only

items and revenue revenue
items are items.
recorded.
Non-cash Contains only It contains

items cash items. non-cash
items also.
Sides Receipts are Expenditure

shown on debit is shown on
side and debit side and
payments on Income on
credit side. credit side.
Opening It starts with It has no

balance the opening opening
balance of cash balance.
in hand and at
bank.
1.Get the cash memo.

75.
2.Check Quality and insist on a warranty card.
3.Get educated about the gadget beforehand.


76. Extravagance. Consumers are tempted to buy products that they cannot afford. They do
not hesitate even to adopt corrupt practices.
77. When all higher-level vacancies are filled by promoting present employees, new ideas
and fresh thinking may not enter the organisation.
78. Stress interview. The purpose of this interview is to see how a candidate reacts in an
awkward situation. The reaction of a candidate in stressful conditions is judged.
79. Concept advertising. Its purpose is to stimulate demand for new products. Advertisement
designed to change the lifestyle of people is concept advertising.
80. The bank asks applicants to give two or three specimen signatures when they open an
account. Whenever the need arises, the signature of the account holder can be verified
with a specimen signature card and the signatures on cheques.
81. Businessmen receive bills of exchange from their customers who buy goods on credit.
Commercial banks pay the amount of a bill before the maturity date after deducting some
discount charges, so the businessman gets cash beforehand.
82. The demand draft is payable to the person named in it, and it is very safe. This is drawn
by the bank, so it will never bounce.
83. Parity Pricing.

i. When it is very difficult to measure costs.
ii. Safe policy in an Oligopolistic market.
iii. When products are homogeneous, and competition is severe.
iv. Less troublesome and less costly than an individualistic pricing strategy.
84. Terminal Market. This is a market where retailers sell their goods to the consumers.
85. Retail Outlet

Merits of Direct selling (any one):
i. The channel is very fast and economical.
ii. The producer has direct contact with the consumers.
iii. Full control over distribution.
86. Stockholders invest in a company. Management should consider them as actual owners
and provide an accurate picture of the organisation. A shareholder relationships program
is important to reduce shareholder criticism and organised opposition to Management.
Both written communication and personal contacts like reports, shareholder ‘s meeting,
films and lectures can be used.


87. Features of advertising-
i. Non-personal- There is no face-to-face contact between the advertiser and
customers.
ii. Mass communication -The message is directed is a to method a large of
iii. number of persons.
iv. Paid communication: Some money has to be paid for every advertisement to the
medium which conveys the message. The advertiser has to pay for the space of
disseminating the message.
v. Identified Sponsor: An advertisement is issued by an identified sponsor. The name
of the advertiser is mentioned in the advertisement itself.
vi. Information and Persuasion: The basic purpose of an advertisement is to inform
customers about some product or service and to persuade them to buy it.
88. (a) Interview.

Two types of interviews (any two)
i. Structured or planned Interview: This interview is systematically planned in
advance. The questions to be asked and the time to be allowed to a candidate are
decided in advance. This is the most common type of selection interview.
ii. Unstructured or Non-Directive Interview: This interview is not planned. The
questions to be asked and the expected reactions have not been decided. Candidates
are asked their views on relevant matters. This type of interview requires experienced
interviewers.
iii. Group Interview: In this interview, a group of candidates are interviewed
simultaneously. They are given a problem to discuss, and candidates express their
views on the problem. The interviewers judge the views and initiatives taken by the
candidates.
iv. Panel or Board Interview: In this type of interview, the candidate is interviewed by
a panel or board of selectors. Different interviewers ask questions on different topics.
The candidate is judged based on a combined rating by the panel.
v. Stress Interview: The purpose of this interview is to see how candidates react to
awkward questions and difficult situations. The interviewer deliberately adopts a
hostile attitude by asking questions rapidly, criticising the candidate, etc. The
reactions of the candidate to stressful conditions are judged. If the candidate keeps
his cool, he is selected.
(b) Procedure of selection of employees in an organisation:
i. Preliminary Interview
ii. Application form
iii. Employment test
iv. Checking references
v. Medical examination
vi. Final approval
(c) Types of training
i. Orientation training
ii. Job training


89. i. Sales refers to the total amount of goods and services sold by a firm. Selling process
is a step taken by a salesperson.
ii. Sales is an end result of the process of the selling.
iii. Selling process is an ongoing process while sales is known as end of period.
iv. Sales is a quantitative term whereas selling process is not quantitative term.
90. i. Overdraft: It means an arrangement under which a current account holder is allowed
to withdraw more than the balance to his credit up to specified limit.
ii. Cash credit: In this arrangement bank advance cash loan to the borrower against
some tangible security.
iii. Discounting of bills: Businessman receives bill of exchange from their customers
who buy goods on credit. Commercial banks pay amount of the bill before the day
of maturity after deducting discounting discount charges.
iv. d. Loan and advances: Bank advance fixed lump sum fixed amount to the borrower
for an agreed period. The borrower may withdraw the whole amount at once or as
per his needs.
91. i. Applications in prescribed form: Person will apply in that bank on applications form
which contain information of different accounts.
ii. Introduction of the applicant: As there is a contract between bank and customers
bank needs that the applicant needs to be introduced by the existing account holder.
iii. Specimen signature: The applicant is asked to give specimen signature card.
Whenever bank requires, they verify account holder signature with specimen
signature card.
iv. Photographs: Due to frauds, bank insists on photographs which is affixed on
specimen signature card to prevent frauds.
v. Initial deposit: Account holder need to deposit an initial amount. This amount is
differed according to bank to bank.


92. (a) A central bank. It is the apex bank which supervised and control the entire banking
system. It regulates money supply and credit control in the country. The central bank act
as lender for the others bank. Its purpose not to earn profit but render services to the
government, banking, and whole county.
(b) (i) As a clearing house facility central bank settles the claims of commercial banks.
It settles the bank claims though books of entries. The daily balance of various
commercial bank is settles by the central bank.
(ii) The central bank provides cash to the commercial bank. When commercial bank
requires fund, they demand from the central bank. Central bank also credit granting
capacity of commercial bank.
(c) (i) The central bank is the sole custodian of gold and foreign exchange. It manages
these reserves judiciously to stabilise the exchange rate.
(ii) The central bank monitors the exchange rate of the home currencies in relation with
foreign currencies. It tries to maintain stability in order to promote country’s trade.
93. (a) Higher rate of interest so senior citizen will more amount at the date of maturity and
they can withdraw money at the time of maturity which will gives financial security for
them. (1mark)
(b) Saving deposit account: Any person can open as per their needs with minimum
specified amount. Despite can be made any number of times in a week. Account holder
will get cheque book and passbook.
Recurring account: Account holder required to deposit a specific amount every month.
After expiry of maturity date account holder will get lump sum amount along with
interest. The number of instalments can be vary from 12 to 72. A passbook is provided
for a reference. (2mark)
94. The second stage of PLC is Growth stage.

In this stage:
i. the demand and sales grow rapidly.
ii. distribution is widened.
iii. competition increases, and prices fall.
iv. promotional focus shifts from ‘buy my product’ to ‘buy my brand’.
v. the firm expands sales by increasing market share in the existing markets and by
entry into new markets.
vi. the promotional expenses are high but fall as a percentage of sales turnover.


95. (a) According to the given case the smartphones are in the Maturity stage of PLC.
Features:
i. Sales continue to grow but at a decreasing rate.
ii. Competition increases further and markets get stabilised.
iii. Due to competition prices are reduced but promotional expenses are high.
iv. Profits decline and marginal producers are forced to go out of the market.
v. New models of the product are introduced.
vi. Supply exceeds demand for the first time.
vii. No possibility of increase in sales and the sales curve is levelling off.
viii. This stage is characterised by product differentiation, product improvement and
identification of new market segments.
(b) The maturity stage may be lengthened by using the following strategies:
i. Differentiating the product from competitive products.
ii. Focussing on brand image.
iii. Extending the warranty period.
iv. Introducing reusable packaging.
v. Developing new markets.
vi. Finding new uses of the product.
(c) Amazon and Flipkart use the latest method of Direct selling, On-line marketing or
Internet marketing.
Direct selling is becoming popular due to:
i. Increasing cut-throat competition
ii. Need for control over distribution costs.
iii. Wide product lines
iv. Technical nature of products
v. Availability of public warehouses
vi. Desire to reduce dependence on middlemen.
vii. Scattered markets.
viii. Modern means of communication


96. (a) The preferred traditional channel of distribution is manufacturer-wholesaler-retailer-
consumer.
i. This channel is suitable where the producer has limited finance.
ii. Producer has a narrow product line.
iii. Where the wholesalers are specialised and provide strong promotional support.
iv. Most convenient channel for products with widely scattered markets.
(any two)
(b) The pricing strategy generally adopted is Penetrating Pricing. (any two)
i. It involves setting a low price in the initial stage.
ii. The objective is to make the brand quicky popular and to maximise the market share.
iii. Mostly used to launch fast-moving consumer goods.
iv. Results in high sales volume during the initial stages of a product’s life cycle.
v. This strategy is adopted to operate on the principle of low mark-up and higher
volume.
vi. It is an aggressive strategy used to restrict the entry of new firms in the industry.
(c) (i) Tele market is a non-traditional market.
• The product is advertised and demonstrated on television and in the newspapers.
• Customers place orders on the toll-free number and orders are executed through
courier.
(ii) Markets based on nature of goods:
• Consumers’ Market: This market is where goods are purchased for personal
consumption.
• Producers’ Market: This is a market where goods are purchased for use in further
production.
97. (a) Tourism.

The development of tourism, especially in areas with rich natural resources, has led to
the destruction of the ecosystem. Tourism has caused the loss of freshwater systems and
habitats. Even Mount Everest has been littered with hazardous wastes.
(b) Population growth, industrialisation, transport, the dwelling of business units,
transport, mining, and agriculture. (elaborate on any three)


ICSE Commercial Applications

Uploaded by

Copyright:

Available Formats

ICSE Commercial Applications

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ICSE Commercial Applications

Uploaded by

Copyright:

Available Formats

PREFACE

October 2024 Dr. Joseph Emmanuel

S.No. Type of Questions Page Nos.

I. Multiple Choice Questions 2-11

II. Very Short Answer Questions 11-12

III. Short Answer Questions 13-16

IV. Long Answer Questions 17-20

Answer Key 21-32

ICSE Competency-Focused Practice Questions 1

COMPETENCY-FOCUSED PRACTICE QUESTIONS

2. [Understanding Human Resource]

3. [Understanding Human Resource]

ICSE Competency-Focused Practice Questions 2

5. [Development of Public Relations]

6. [Understanding Human Resource]

7. [Understanding the Basics of Markets and Marketing]

ICSE Competency-Focused Practice Questions 3

9. [Understanding the Basics of Markets and Marketing]

10. [Understanding the Basics of Markets and Marketing]

(a) Institutional advertising

ICSE Competency-Focused Practice Questions 4

(a) Sales promotion

12. [Understanding Human Resource]

13. [Understanding Finance]

14. [Understanding Finance]

ICSE Competency-Focused Practice Questions 5

16. [Understanding Finance]

17. [Understanding Finance]

18. [Understanding Finance]

ICSE Competency-Focused Practice Questions 6

20. [Understanding the Basics of Markets and Marketing]

21. [Understanding Finance]

22. [Understanding Finance]

ICSE Competency-Focused Practice Questions 7

(a) i and ii are correct

24. [Understanding the Basics of Markets and Marketing]

25. [Understanding Finance]

ICSE Competency-Focused Practice Questions 8

27. [Understanding the Basics of Markets and Marketing]

28. [Understanding Finance]

29. [Understanding the Basics of Markets and Marketing]

30. [Understanding the Basics of Markets and Marketing]

ICSE Competency-Focused Practice Questions 9

32. [Understanding the Basics of Markets and Marketing]

33. [Understanding the Basics of Markets and Marketing]

ICSE Competency-Focused Practice Questions 10

II: Very Short Answer Questions (1 Mark)

Fill in the blanks from questions 35 to 40 with the appropriate term/phrase.

35. [Understanding the Basics of Markets and Marketing]

36. [Understanding the Basics of Markets and Marketing]

37. [Understanding the Basics of Markets and Marketing]

38. [Understanding Finance]

39. [Understanding Human Resource]

40. [Understanding the Basics of Markets and Marketing]

State True or False for the statements given in questions 41 to 51.

41. [Understanding the Basics of Markets and Marketing]

42. [Understanding the Basics of Markets and Marketing]

ICSE Competency-Focused Practice Questions 11

43. [Understanding the Basics of Markets and Marketing]

44. [Understanding Finance]