PATHFINDER EDUCATIONAL CENTRE LLP

ICSE - X : 2023 – ’24 COMMERCIAL APPLICATION Mock Test – 2

Model Answer

SECTION A
1. (i) (c) Balance sheet
(ii) (c) Lending
(iii) (c) Current account
(iv) (b) Activity
(v) (a) Procurement
(vi) (c) internal source
(vii) (b) Second
(viii) (a) Recruitment
(ix) (c) The supplier concept
(x) (b) Element
(xi) (a) Solar
(xii) (b) Coal
(xiii) (c) 1960
(xiv) (c) Selling
(xv) (i) Both A and R are true, and R is the correct explanation of A.
(xvi) (b) Marketing
(xvii) (d) Remember
(xviii) (a) permanent
(xix) (c) widen
(xx) (b) Recruitment is the first stage of hiring and selection is the second stage of hiring.

2. (i) Basis of Distinction Transfer Promotion

Meaning It is shifting an employee It is shifting an employee
from one branch to another. from a lower level job to
higher level job.

(ii) Primary market Terminal market

It is a market where in primary producers It is a market where retailers sell
sell their agricultural products to the their goods to the consumer.
wholesalers or their agents.
ICSE – X : 2023–’24 Commercial Application : Mock Test–2 MODEL ANSWER

(ii) (a) True.

Training improves competence and self confidence of employees. They are not afraid of work
and enjoy doing it. Therefore , training reduces employee absenteeism.
(b) False.
Branded goods are uniform in quality. Therefore, these are sold by description and not by
inspection.
(c) True.
Specimen Signature is very significant in banking as cheques are liable to be dishonoured
if the signature does not tally with the specimen signature recorded at the time of opening
a bank account.
3. (i) Dialogue is an important element in public relations because :
(a) it allows a debate or discussion
(b) it helps to create mutual understanding and cooperation.
(ii) Sale by sample is one of the method of selling product, when it is not possible to check all
the goods. A small quantity of goods is taken and checked and on that basis a bulk order
is given. e.g tea, pulses etc.
(iii) The pass book is an extract or copy of the customer’s account in the bank’s ledger as on a
particular date. The pass book shows all deposits and all withdrawals made by the customer.
(iv) Indirect expenses are those expenses which cannot be identified with a specific product or job.
Factory rent is an indirect expense.
(v) The four components of promotion mix are :
(a) Advertising
(b) personal selling
(c) sales promotion
(d) publicity
SECTION B
4. (i) Sales oriented stage : in this stage the focus of a firm emphasis advertising and salesman ship
to persuade people to buy more and more. the product quality and volume of production are decided
without understanding the need and preferences of customers. The firm tries to maximise the
sales volume by providing attractive offers to the customers. Sales oriented approach usually fails
in a highly competitive market.
Marketing-oriented stage: In this stage the focus is on understanding the needs and preferences
of customers. Product design, quality, extra.. are decided on the basis of such information. Customers
have become more knowledgeable and prefer better quality and more variety. Therefore, business
firm are becoming more marketing oriented. Increased sensitivity to Customers needs helps to
increase customer satisfaction and sales volume.
(ii) Advantages of sales promotion are as follow :
(a) Low unit cost
(b) Sales support
(c) Faster product acceptance
(d) Effective control
(e) Best for new products. {Explanation required}

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ICSE – X : 2023–’24 Commercial Application : Mock Test–2 MODEL ANSWER

(iii) The various stages of product life cycle are as follows :

(a) Introduction stage
(b) Growth stage
(c) Maturity stage
(d) Decline Stage
Product life cycle offers the following advantages :
(a) When the product life cycle is known the firm can prepare an effective product plan.
(b) Management can take advance steps before the decline of the product.
(c) The maturity stage can be extended by finding new uses of the product.
5. (i) The different types of interviews used in selection of employee are as follow :
(a) Structured interview
(b) Unstructured interview
(c) Group interview
(d) Board interview
(e) Stress interview [Explanation required]
(ii) Elements of Public relations are as follows :
(a) Human Relations : It means relations between human beings on the basis of human dignity
and respect for each other.
(b) Empathy : It means looking at things and events from the other's point of view. It requires
that the communicator be in tune with the communicate.
(iii) Steps that can be taken to mitigate global warming are as follows :
1. reduction in the use of energy
2. shifting to alternative sources of energy
3. capture and storage of carbon
4. geo-engineering including carbon sequestration
5. development of new technologies e.g. wind power, nuclear power etc.
6. (i) The Chernobyl Disaster occurred on April 26, 1986 at the Chernobyl nuclear plant located in Chernobyl
city of Ukraine. It is considered to be the worst accident in the history of nuclear power generation.
It caused at least 80% of direct deaths. More than 9000 people died from some form of cancer.
About 6.6 million people were exposed to radiation.
(ii) The features of Balance sheet are as follow :
(a) It is always prepared on a particular date.
(b) It is prepared after the preparation of Income and Expenditure account.
(c) It is not an account but a statement.
(d) It shows the financial position on a specified date.
(e) It is prepared from the Trial balance.

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ICSE – X : 2023–’24 Commercial Application : Mock Test–2 MODEL ANSWER

(iii) Advertising has been criticised on the following grounds :

(a) It increases the prices of the products or services.
(b) It promotes unnecessary consumption.
(c) It promotes the sale of inferior goods.
(d) It misleads the consumers.
(e) It declines the moral values.
7. (i) Notes on Bank rate policy :
Bank rate is the rate at which the central bank rediscounts the first class securities of commercial
banks. It determines the market rate of interest at which commercial bank grant loans to borrowers.
Whenever central bank wants to reduce credit in the market, it raises bank rate. Similarly, when
the central bank wants to expand credit, it reduces the bank rate.
(ii) Apprenticeship Training :
This training method is used in technical trades and crafts in which a long period is required
to become proficient. The worker is attached to an experienced or senior employee. He learn
while observing and assisting his senior. It combines classroom instruction and on-the-job training.
In India it is regulated under the Apprenticeship Act,1961.
(iii) Objectives of credit control are as follows :
(a) To stabilise the general price level in the country.
(b) To keep the exchange rate stable.
(c) To promote and maintain a high level of income and employment.
(d) To maintain a normal and steady growth rate in business activity.
(e) To eliminate undue fluctuations in production and employment.
8. (i) (a) Consumers Rights : The Consumer Protection Act 1986 prescribes certain rights of the consumers.
The rights are as follows :
1. Right to Safety
2. Right to be Informed
3. Right to Choose
4. Right to be Heard
5. Right to seek Redressal.
(b) Direct Labour cost and Indirect Labour cost :
The labour which takes an active and direct part in the production of a particular product or
service is known as direct labour and the cost incurred on them is called direct labour cost.
For example: Wages paid to machine operator.
The labour employed for the purpose of carrying out tasks incidental to goods produced or
service provided is indirect labour and the cost incurred on them is called indirect labour cost.
For example : Wages of store keeper.

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ICSE – X : 2023–’24 Commercial Application : Mock Test–2 MODEL ANSWER

(ii) Procedure of opening a bank account :

(a) Application in the prescribed form.
(b) Introduction of the applicant.
(c) Specimen Signatures.
(d) Photographs.
(e) Initial deposits. [Explain in brief]
(iii) The longest channel of distribution is Manufacturer-Agent- Wholesaler-Retailer-Consumer.
This channel is used when the manufacturer wants to be fully relieved of the problem of distribution.
The producer hands over the entire product to the selling agent who distributes it among wholesaler.
Each wholesaler sells to a number of retailers who in turn sell to ultimate consumer. This channel
results in wider distribution of the product. This channel is mainly used in textile mills and agricultural
marketing.
9. (i) “ARONS”
India’s leading call centre working 24 hours in three shifts from 6 am. to 2 pm.; 2 pm. to 10
pm. and 10pm. to 6am. requires 100 representatives at its Kolkata call centre office.
Graduate in any discipline with a flair for hardwork and bright prospects and good communication
skill, willing to work in any shift should walk in interview th at 140, Prince Anwar Shah Road,
Kolkata-45 on 24 January between 12 noon to 4pm.
Excellent salaries and attractive incentives offered.
(ii) The sources of recruitment adopted would be generally from external source like :
(a) Press
(b) Advertisement
(c) Placement agencies
(d) Recommendation
(iii) The following basis of selection may be followed :
(a) Aptitude and knowledge test : It is preliminary employment test where the applicants are given
a set of questionnaires based on the test of reasoning and general aptitude along with general
English. The questions are placed before the candidates and they are asked to answer or
solve them within a stipulated period.
(b) Group Discussions : Candidates after qualifying in the aptitude tests, are called for a group
discussion. Generally a group consists of 10 to 12 candidates, less or more depending on
the total number of candidates.
(c) Final Interview : After qualifying in the group discussion the candidates are called for an oral
test in the form of face to face interview. This is conducted to check the validity of the information
given and the result of the tests.