ISC 2024

ANALYSIS OF PUPIL
PERFORMANCE
COMMERCE

Research Development and Consultancy Division

Council for the Indian School Certificate Examinations
New Delhi
November 2024
____________________________________________________________________________________________

© Copyright, Council for the Indian School Certificate Examinations

All rights reserved. The copyright to this publication and any part thereof solely vests in the Council for the Indian
School Certificate Examinations. This publication and no part thereof may be reproduced, transmitted, distributed or
stored in any manner whatsoever, without the prior written approval of the Council for the Indian School Certificate
Examinations.
Council for the Indian School Certificate Examinations (CISCE)

MISSION STATEMENT

The Council for the Indian School Certificate

Examinations is committed to serving the nation's
children, through high quality educational
endeavours, empowering them to contribute towards
a humane, just and pluralistic society, promoting
introspective living, by creating exciting learning
opportunities, with a commitment to excellence.

ETHOS OF CISCE

Trust and fair play.

Minimum monitoring.
Allowing schools to evolve their own niche.
Catering to the needs of the children.
Giving freedom to experiment with new ideas
and practices.
Diversity and plurality - the basic strength for
evolution of ideas.
Schools to motivate pupils towards the
cultivation of:
Excellence - The Indian and Global
experience.
Values - Spiritual and cultural - to be the bedrock
of the educational experience.
Schools to have an 'Indian Ethos', strong roots in
the national psyche and be sensitive to national
aspirations.
 FOREWORD
The National Education Policy 2020 emphasises building 21st-century skills and competencies
through systemic reforms in pedagogy and assessments. It is an endeavour of Council for Indian
School Certificate Examinations (CISCE) to ensure that assessments are utilised as tools for
promoting learning and development in students rather than a mere end to the instruction year.

With the objective to provide feedback on the common errors made by the students in the board
examinations of both ISC and ICSE and to provide information on the question-wise performance of
students, CISCE releases the Analysis of Pupils’ Performance document every year. It is one of the
unique and best practice of the CISCE board, which supports the candidates in their preparation for
the upcoming board examinations.
We would like to extend our appreciation to the Research Development and Consultancy Division
(RDCD) of the CISCE for their efforts in creating this detailed document for the benefit of our
students. We also express our gratitude to the examiners who have provided meticulous feedback on
the candidates’ performance during the examinations and also suggested pedagogical interventions
for the teachers to mitigate the common errors made by the candidates.
We are sanguine that students, teachers, and parents would make the best use of this document by
going through the various sections in detail and implementing the learnings from the same for
successful performance in the upcoming examinations.

November 2024 Dr. Joseph Emmanuel

Chief Executive & Secretary
CISCE

i
 PREFACE
As you are aware, the Analysis of Pupil Performance document has been developed by the Council
for Indian School Certificate Examinations (CISCE) with the objective to provide feedback to
teachers on the performance of students in the ICSE and ISC examinations. These subject-wise
documents highlight the misconceptions that students might have related to certain topics that are
reflected as common errors made by them while answering questions in the examinations. The
document also contains certain suggestive teaching strategies to reduce the occurrence of similar
errors in forthcoming examinations by students. The criteria used for marking each question has also
been provided in brief so that the teachers and students can comprehend the scope of the question
and the correct approach to answer it. Topics in the question paper that were found to be difficult or
unclear by the majority of the candidates have also been highlighted so that teachers can lay more
stress on bringing clarity to them, along with recommendations for candidates to attempt the
examination of a particular subject keeping in mind subject-specific nitty-gritty and techniques of
answering.
The Analysis of Pupil Performance document for ICSE for the Examination Year 2024 covers the
following 16 subjects - English Language, Literature in English, Hindi, History and Civics,
Geography, Mathematics, Physics, Chemistry, Biology, Commercial Studies, Economics, Computer
Applications, Economic Applications, Commercial Applications, Environmental Science and Home
Science.
The 20 subjects covered in the ISC Analysis of Pupil Performance document for the Year 2024 are -
Accounts, English Language, Literature in English, Hindi, Economics, Commerce, Business Studies,
Mathematics, Physics, Chemistry, Biology, Elective English, History, Political Science, Geography,
Psychology, Sociology, Computer Science, Environmental Science and Home Science
I extend my appreciation and gratitude to all the ICSE and ISC examiners who have shared their
valuable comments on each question. I also acknowledge the efforts of the RDCD team of Dr. Manika
Sharma, Ms. Parul Kohli, Ms. Lyimee Saikia and Ms. Mansi Guleria, for their focused hard work
and diligence towards the preparation of this document.
We are hopeful that this document will be helpful to teachers to bring in timely interventions for the
topics required, in order to support the students in their preparation and readiness towards the
upcoming ICSE and ISC examinations. We also hope the students learn from the detailed notes on
the common errors made while answering, so as to be well-prepared with the correct answering
strategies for the upcoming ICSE and ISC examinations.

November 2024 Dr. Bhawna Taragi

Deputy Head
RDCD, CISCE

ii
 COMMERCE
SECTION A – 16 MARKS
Question 1
(i) Best Pest Control Services has seventy-five technicians who are experts in pest
control. The management decides to train these technicians again in order to keep
pace with the growing technological changes and improve pest control techniques.
What type of training should the management impart to these technicians?
(a) Orientation Training [1]
(b) Job Training
(c) Refresher Training
(d) Safety Training
(ii) A Debenture issued by a company by creating a fixed or a floating charge on the
company’s assets is known as:
(a) Non-Convertible Debenture
[1]
(b) Mortgage Debenture
(c) Redeemable Debenture
(d) Unsecured Debenture
(iii) With reference to Credit Card, which one of the following statements is
INCORRECT?
(a) The cardholder makes payments after using the card.
[1]
(b) Some incentives/gifts are made available to the cardholders.
(c) The cardholder has to deposit some money in advance with the issuer bank.
(d) In certain cases, the cardholder has to pay an annual fee for the credit card.
(iv) A business firm should have extra funds to meet future emergencies. Identify the
type of working capital indicated here.
(a) Special
[1]
(b) Seasonal
(c) Initial
(d) Regular
(v) Principles of Management are not as accurate as principles of Science because:
(a) they are absolute.
(b) they deal with human behaviour which is unpredictable. [1]
(c) they are rigid.
(d) they are not universally accepted.
(vi) An awareness of business environment enables an enterprise to take advantage of
early opportunities instead of losing them to competitors.
Which benefit of understanding the business environment is highlighted in the [1]
above statement?

1
2024 ISC- Commerce
(a) Customer Focus
(b) Early Warning Signal
(c) First Mover Advantage
(d) Public Image
(vii) State whether the following are True or False
(a) Recession is an ‘inherent constraint’ in almost all manufacturing organisations.
(b) As a function of marketing, Warehousing creates time utility. [4]
(c) Directing initiates action in an organisation.
(d) Customer orientation is a modern approach to marketing.
(viii) Assertion: Services cannot be standardised.
Reason: Services are homogenous in nature.
(a) Both Assertion and Reason are true and Reason is the correct explanation of
Assertion.
[1]
(b) Both Assertion and Reason are true but Reason is not the correct explanation of
Assertion.
(c) Assertion is true but Reason is False.
(d) Assertion is False but Reason is true.
(ix) _____________ organisations are formed spontaneously as a result of social
[1]
interaction among employees in an organisation.
(x) Management as a _______________ refers to a systematised branch of knowledge
[1]
and a separate field of study.
(xi) Organisation and development of financial market has created a surge in primary
and secondary capital market. [1]
Which dimension of Macro environment is referred to in this statement?
(xii) Ms. Anamika visited a reputed dealer of electronic goods to buy a bluetooth headset.
The salesman at the shop forced her to buy a particular brand of headset. [1]
Which consumer right of Anamika was violated?
(xiii) Which barrier to communication arises when the sender and receiver interpret a
[1]
message differently?

2
2024 ISC- Commerce

Comments of Examiners
(i) Many candidates wrote ‘Job Training’, Suggestions for teachers
‘Orientation Training’ or ‘Safety
Training’ as answer which was incorrect. − Teach various types of training with
The different types of training imparted practical examples.
to the workers at different levels were not − Discuss application-based questions to
known to several candidates. reinforce the meaning of each type of
(ii) Majority of the candidates answered this training. An excursion to a factory or
business should be conducted to
question correctly. However, a few
understand, in real time, the types of
candidates wrote training provided workers.
unsecured/convertible/redeemable − Discuss the concept of debentures for
debentures instead of mortgaged enhanced clarity. Reiterate every term
debentures. while explaining the different types of
(iii) Majority of the candidates could answer debenture.
this question correctly. However, some − Give practical examples to bring about
candidates chose option ‘d’ or option ‘b,’ conceptual clarity. Show the students a
indicating a lack of proper understanding debit card, a credit card, a cheque and a
of cash credit. demand draft to help them understand
(iv) Most of the candidates answered this part the terms.
correctly. However, some candidates − Teach the concept in a comparative
confused seasonal working capital with manner to the students.
special working capital and mistakenly − Explain working capital using a flow
chart to effectively illustrate the
identified the answer as seasonal working
understand types of working capital.
capital. A few candidates even wrote − Conduct a short assessment after
‘initial capital’ as their answer. completing the relevant topic for
(v) Most of the candidates answered this revision and conceptual clarity.
question correctly, but a few selected − Explain why management is considered
multiple incorrect options. a social science to enhance students’
(vi) Some candidates answered correctly, understanding of the concept.
while most provided ‘early warning − Give adequate practice of MCQs,
signal’ instead of ‘first mover advantage,’ assertion-and-reasoning questions, and
as they were confused by the word real-life case studies, such as Reliance
‘EARLY’ in the question. Jio, which took advantage of the
(vii) This question was well answered by most opportunity by purchasing 2G spectrum
of the candidates. However, some and capturing a large market share in the
telecommunication sector.
candidates did not have a clear
− Instruct students to carefully read the
understanding of a business cycle, and questions for understanding before
functions of marketing was not clear to answering.
them. Additionally, some candidates − Discuss examples of companies that
confused the functions of management, have conducted SWOT analysis in
and the modern concept of marketing was class.
also not clear to them. − Explain formal and informal
(viii) Most candidates answered this question organisations in detail for better
correctly, but some failed to understand conceptual clarity.
the features of ‘services.’ − Employ methods of role play to explain
(ix) Many candidates answered this question the topic and reference the school
correctly. The mention of social environment to help students
interaction in the question helped them understand it more effectively.
arrive at the correct answer. However, a − Clearly distinguish the concepts of
management its characteristics.
few candidates responded with terms like
‘grapevine,’ ‘formal,’ or variations such
as ‘nonformal’ and ‘unformal.’

3
2024 ISC- Commerce
(x) Only a few candidates could answer this
question correctly. Many candidates Suggestions for teachers
answered this question with ‘Science’ or
‘profession,’ which was incorrect. − Train students to use accurate
(xi) Some candidates used words like terminologies with correct spellings and
‘economical,’ ‘economy,’ or ‘economics’ make them aware of the consequences
of incorrect pronunciation or spelling,
instead of ‘Economic Environment,’
as it can change the meaning of their
which changed the context of their answers.
answers. Additionally, some candidates − Provide practical examples to help
incorrectly wrote ‘political environment.’ students understand the concepts clearly
(xii) Majority of the candidates correctly and retain the subject matter more
answered this question barring a few who effectively.
wrote ‘Right to Information’ instead of − Practice source-based questions with
‘right to choose.’ the students.
(xiii) Most of the candidates answered this − Discuss various case studies related to
question correctly. A few interpreted it as the rights and responsibilities of
a perspective, personal barrier, physical consumers in class.
barrier, or psychological barrier. Some − Hold group discussions to help students
candidates gave multiple answers. retain the subject matter effectively.
− Explain the barriers to communication
by emphasizing key words.

MARKING SCHEME
Question 1
(i) (c) or Refresher Training
(ii) (b) or Mortgage Debenture
(iii) (c) or The cardholder has to deposit some money in advance with the issuer bank.
(iv) (a) or Special
(v) (b) or they deal with human behaviour which is unpredictable.
(vi) (c) or First Mover Advantage
(vii) (a) False
(b) True
(c) True
(d) True
(viii) (c) or Assertion is true but Reason is False.
(ix) Informal
(x) discipline
(xi) Economic environment
(xii) Right to Choose
(xiii) Semantic Barrier or Language Barrier

4
2024 ISC- Commerce

SECTION B – 32 MARKS
Question 2 [4]

(i) Decentralisation of authority implies a systematic dispersal of authority at all levels

of management for decision making.
In the light of the above statement, explain any four merits of Decentralisation in an
organisation.
OR

(ii) Though Planning is an important function of management, it may not always give
desired results.
Justify this statement by explaining any four limitations of Planning.

Comments of Examiners
(i) Very few candidates attempted this question. Suggestions for teachers
Candidates failed to provide a substantial − Facilitate systematic revision of each
explanation and instead wrote about the topic with regular oral feedback to help
features of decentralization rather than students build their understanding of
merits. Some candidates confused the terms concepts.
‘decentralization’ and ‘delegation’ and wrote − Clearly explain the concept and
about the features of delegation. highlight the differences between the
delegation of authority and
OR decentralization.
(ii) Majority of the candidates attempted this − Elucidate that the features of a term
question but failed to provide an appropriate derive from its meaning, whereas the
merits of a term reflect the application
explanation for the header. Some candidates
of its concept.
offered only a one-sentence explanation; for
− Provide sufficient written practice to
example, under the heading ‘Costly process,’ enable students to formulate better
they wrote simply, ‘Planning is a costly answers and in a more coherent manner.
process.’ − Make students aware of the changes in
Some candidates wrote about the features of the pattern of the paper and instruct
planning, while others discussed its them to follow the rule of four: four
advantages instead of its disadvantages. features, four merits, and four demerits.

MARKING SCHEME
Question 2
(i) Merits of Decentralisation
1. Reduces the burden of top executives
2. Motivates the subordinates
3. Better decisions
4. Foster innovation / creativity
5. Leads to growth and development of managers
6. Effective communication
7. Efficient supervision & control/ helps in evaluating the performance of different
departments
5
2024 ISC- Commerce
8. Democratic management
9. Quick decision
(Any four)
OR
(ii) Limitations of Planning
1. Expensive process as it involves spending money, time and effort.
2. Time consuming as collection, analysis and interpretation of data is involved.
3. Rigidity as people tend to adhere strictly to plans and do not accommodate to the
changes in the environment.
4. Lack of accuracy
5. False sense of security
6. Resistance to change/Psychological barriers
7. External factors/changes/limitations
8. Human influence/Groupism
(Any four)

Question 3 [4]

JSW Co. purchased goods on credit from SDW Co. and paid the amount after two months. Name
the short-term source of finance used by the buyer and state any three features of this source.

Comments of Examiners
Most candidates answered this question correctly.
Suggestions for teachers
However, some candidates confused trade credit − Explain trade credit from a business
with other types of credit, providing explanations perspective.
related to instalment credit, credit cards, cash − Emphasize that questions must be read
credit, or intercorporate deposits. Instead of thoroughly before answering.
writing about the features of trade credit, they − Highlight the unique features of each
wrote about its advantages. short-term source of finance; for
example, in trade credit, no interest is
charged and clarify this to the students.
− Clearly explain the differences between
installment credit, cash credit, credit
cards, and trade credit to the students.

MARKING SCHEME
Question 3
Trade Credit/ Mercantile Credit

Features of Trade Credit

1. Credit extended by one firm to another firm.
2. Incidental to sale or purchase of goods and services.
3. Does not include consumer credit or instalment credit.
4. Credit period 15 days to 3 months.
5. No advance payment needed.
6. ‘Buy now Pay later’ / reflects the buyer’s power to buy now and pay later.
6
2024 ISC- Commerce
7. No security needed.
8. Credit depends on goodwill of the buyer.
9. No interest is payable.
(Any three features, each feature should be written in a sentence/ or paragraph)

Question 4 [4]

The capital structure of XYZ Ltd. is highly geared. Explain any four factors that were considered
by its Finance Manager while formulating such a capital structure for the company.

Comments of Examiners
Only a few candidates answered this question Suggestions for teachers
correctly. Many of the candidates wrote about − Train students to write answers by
the factors considered in determining fixed providing proper explanation and not
capital or working capital. Some candidates just expand abbreviation. Each point
discussed factors affecting financial planning should be dealt with elaborately with
and were conceptually unclear that capital appropriate explanations.
consists of both ownership funds and debt funds. − Instruct students to read questions
Most candidates failed to explain trading on carefully before answering.
equity. Additionally, some candidates did not − Teach with the help of a comparative
write the headings properly; for example, study and with examples for conceptual
clarity.
instead of using ‘Exercise of Control’ as a
− Provide more answer writing practice.
heading, they simply wrote ‘Control’ and
followed it with a one-line explanation.

MARKING SCHEME
Question 4
1. Trading on equity
2. Exercise of control / Dilution of control
3. Nature of Business
4. Need for flexibility
5. Cost of Financing
6. Period and Purpose of finance
7. Capital Market conditions
8. Statutory requirements
9. Cash flow position
(Any four, heading and brief explanation)

Question 5 [4]
From the statements given below, identify and briefly explain each principle of
management by Henri Fayol.
(i) A place for everything and everything in its place
(ii) Absence of nepotism and favouritism

7
2024 ISC- Commerce

Comments of Examiners
(i) Many of the candidates could correctly
identify the principle of ‘order,’ but the
Suggestions for teachers
explanations provided were often taken − Provide sufficient practice with case
directly from the question itself. Some studies along with group discussions in
candidates explained only material order or the classroom.
social order, while only a few addressed − Conduct oral drilling to identify the
both. Additionally, some candidates principles of management.
described social order as “the right person in − Explain the meaning and impact of the
the right job,” instead of “the right person in principles on the organization with
the right place.” Most candidates’ clarity.
explanations appeared generalized and − Discuss various common errors, such
as writing only one aspect of the
included multiple answers.
principle of order, in class to highlight
(ii) Most of the candidates could correctly the need to avoid such mistakes.
identify the principle of equity. However, − Emphasize the importance of using the
some candidates used words such as correct terminology; for example,
‘Equally,’ ‘Equality,’ ‘Equal,’ and students used the term “resources
‘Equitable,’ which changed the meaning of order” instead of “social order” while
the principle completely. Some candidates explaining the principle of order.
repeated sentences from the question, while − Reiterate that spelling mistake can
a few wrote about all the principles of change the meaning or concept of a
management, demonstrating confusion term and the answer, and thus should
about the specific function of management be avoided.
addressed in the question. − Instruct students to avoid giving
multiple answers to the questions.

MARKING SCHEME
Question 5
(i) Order
This principle states that there should be an orderly placement of resources (manpower,
money, materials, etc.) in the right place at the right time. This ensures the proper use of
resources in a structured fashion.
There must be material and social order in an enterprise.

(ii) Equity
Fayol believed that an effective manager is always sympathetic, kind, honest and
impartial with employees. In other words, kindness and justice should be exercised by
management in dealing with their employees. This would then create loyalty and
devotion among the employees.
Management should treat all employees with justice and kindness.

8
2024 ISC- Commerce

Question 6 [4]

Ms. Jasdeep, the Production Manager in a reputed manufacturing company believes in planning to
achieve the desired goals while Mr. Philips, the Sales Manager in the same company thinks that
controlling is the best way to achieve the desired results.
Briefly explain the relationship between the two functions of management highlighted above.

Comments of Examiners
Few candidates answered this question correctly. Suggestions for teachers
Many candidates failed to explain the
interrelationship between planning and − Clarify how the function of controlling
controlling; instead, they treated them as isolated affects planning and vice versa while
concepts, discussing planning in one paragraph teaching planning as a function of
management.
and controlling in another.
− Provide sufficient answer-writing
Some candidates wrote about the differences
practice with a variety of questions to
between the two functions of management, but enable students to address all types of
the impact of one function on the other was not questions. Additionally, instruct that
explained by majority of the candidates. Most each answer must contain an adequate
candidates used phrases like ‘each of them is explanation.
blind without the other’ or referred to ‘two blades − Discuss the interrelationship between
of scissors,’ but few candidates who identified the different terms.
relationship between planning and controlling
were able to provide appropriate explanations or
write four correct points regarding the relationship.

MARKING SCHEME
Question 6
Relationship between two functions of Management
1. Closely interrelated and interdependent
2. Planning has no meaning / purpose without controlling and controlling has no base without
planning / Planning is a prerequisite to Controlling.
3. Controlling requires standards against which performance can be measured and Planning needs
past data to be effective.
4. Controlling is necessary to achieve plans.
5. Controlling is necessary to revise future plans, rectification of mistakes and formulation of new
plans.
6. Both Planning and Controlling are forward looking and backward looking.
(Any four points must be explained briefly)

9
2024 ISC- Commerce

Question 7 [4]

Differentiate between Recruitment and Selection by giving any four points.

Comments of Examiners
Majority of the candidates could answer this
question correctly. However, a few candidates
Suggestions for teachers
gave one-word explanations while writing the − Instruct students to write the differences
differences. Additionally, the differences did in tabular form and to compare the
not correlate, as the points presented were topics on the same basis, as it helps
invalid and the explanations overlapped. avoid the repetition of points.
Furthermore, points related to recruitment were − Discourage students from answering in
given under selection and vice versa. This one word.
indicates that the candidates are rote learning − Discourage students from engaging in
without developing comprehension. The selective study of any topic.
explanations given by the candidates lacked
conceptual clarity.

MARKING SCHEME
Question 7
Basis Recruitment Selection
Meaning Searching for prospective Choosing the right candidates having
employees and stimulating them to the required qualification
apply for the job
Nature Positive process Negative process
Aim To create a large pool of candidates
To eliminate the unsuitable
candidates while the objective of the
selection process is to fill the vacant
position
Process Simple process Complex process
Number No restrictions on the number of Only limited number of candidates
candidates are selected
Order Done prior to selection Done after recruitment
(Any four differences)

Question 8 [4]

(i) What is marketing research? State any two features of Marketing Research.
OR
(ii) What is branding? State any two merits of Branding.

10
2024 ISC- Commerce

Comments of Examiners
(i) Very few candidates attempted this
question. The three important points of Suggestions for teachers
marketing research—identifying
problems, finding solutions, and making − Provide systematic revisions to help
decisions—were not mentioned by the students retain the subject matter and
candidates. Only two out of the three avoid confusion between the features
and importance of marketing research.
required points were mentioned by some
− Train students to underline key points,
candidates. A few candidates wrote about
which will help them formulate better
the features of marketing research as answers.
general statements, often in a repetitive − Teach marketing research in bullet
manner. Some candidates instead points, and to reinforce the topic, ask
discussed the importance or objectives of students to write a summary of the
marketing research and provided the lecture.
definition of a market instead of − Provide more examples to help
marketing. students understand the topic clearly.
OR − Explain the need to answer according
(ii) This question was attempted by most of to the question asked and emphasize
the candidates. Many candidates lost that the meaning of any term includes
marks because they only wrote the its objectives.
meaning of branding rather than its
objectives. Some candidates confused
branding with labelling, while others
discussed the advantages of trademarks. Additionally, some candidates who wrote about the
merits repeated points that were overlapping.

MARKING SCHEME
Question 8
(i) Marketing research is a systematic investigation into all phases of marketing to find
answers to marketing problems / take marketing decisions./ Marketing research is the
systematic gathering, recording, and analysis of qualitative and quantitative data about
issues relating to marketing product and services. The goal is to identify and assess how
changing elements of the marketing mix impacts customer behaviour./ Market research is
a systematic process of obtaining, analysing, and interpreting data for actionable decision-
making.
(Any one definition)
Features of Marketing Research
1. It gathers records and analyses data about marketing problems.
2. It understands the needs and preferences of the consumers.
3. Competition and brand image of the product can be judged.
4. Forms the basis for launching new products/ and redesigning existing product.
5. It is a facilitating /ancillary function of marketing.

(Any two features written in complete sentences)

OR
(ii) Branding is a process of assigning a distinctive name or symbol to a product by which it is
remembered which helps to differentiate between it and the other products.
Merits of Branding:

11
2024 ISC- Commerce
1. Product differentiation
2. Facilitates advertising
3. Differential pricing
4. Lower selling costs
5. Ease in introduction of new products
6. Wider market
7. Status symbol
8. Creates brand loyalty
9. Enhances goodwill/reputation
10. Ensures quality
11. Legal protection
(Any two merits written in complete sentences)

Question 9
Mr. Deepak purchased a washing machine from a renowned E-Commerce platform for ₹ 25000.
He ensured that he received a cash memo.
Unfortunately, his clothes got damaged in the first wash due to a manufacturing defect in the
machine’s rotator.
(i) Mr. Deepak can be called a responsible consumer. Give one reason to support this [1]
statement.
(ii) Which provision under Consumer Protection Act, 2019 enables Mr. Deepak to claim [1]
a compensation for the manufacturing defect in the washing machine?
(iii) Mention any two points of mandatory information which E-Commerce platform [2]
must provide to a consumer.

Comments of Examiners
(i) Most of the candidates attempted this
question and answered it correctly. Suggestions for teachers
However, many of them could not justify the − Teach the Consumer Protection Act,
fact as to why they felt Mr. Deepak was a 2019, using real-life case studies and
responsible consumer. discuss them in detail.
Some candidates misinterpreted the question − Make students aware of and familiar
and wrote that Deepak is not a responsible with the provisions of the amended
customer since he did not check the product Consumer Protection Act of 2019 by
before buying it. assigning related projects and
(ii) Very few candidates wrote the correct assignments.
− Familiarize students with each
answer, ‘Product liability.’ Several
provision of the Act and terms like
candidates wrote ‘Right to seek Redressal,’ “product liability.”
while many other stated that the ‘Right to − Ensure that amendments to the Act are
Receive Compensation’ was violated under discussed, and keep students updated
the Consumer Protection Act 2019. Some on these changes.
candidates also wrote that Mr. Deepak − Explain the e-commerce rules with
should go to the District Commission or relevant real-life examples.
Consumer Court.
(iii) Most of the candidates listed price, date of
manufacturing, expiry date, and quantity as separate points. For mandatory information, some
wrote that a cash memo must be given, while others mentioned the invoice of the product and

12
2024 ISC- Commerce
the rights to consumer awareness and consumer education. Some candidates incorrectly wrote
that obtaining a cash memo is mandatory information.

MARKING SCHEME
Question 9
(i) Mr. Deepak insisted /requested for a cash memo which shows that he is a responsible
consumer
(ii) Product Liability
(iii) Mandatory information provided by E-Commerce entity
1. Return policy
2. Refund policy
3. Exchange policy
4. Warranty and guarantee/Quality assurance
5. Delivery and shipment
6. Mode of payment
7. Country of origin
8. Grievance redressal mechanism
9. Product specification
(Any two points)

SECTION C – 32 MARKS
Question 10
(i) Explain any five external factors of Micro environment that influence a business [5]
organisation.
(ii) State any three components of Social environment. [3]

Comments of Examiners
(i) Majority of the candidates answered this Suggestions for teachers
question correctly. However, some
candidates mixed up internal factors with − Guide students to ensure that a
external factors of the microenvironment, comprehensive explanation follows the
while a few others who wrote the header header in their answers and to use
correctly could not provide an appropriate headings from the chapter without
improvisation.
explanation. Some candidates mainly
− Instruct students to avoid duplication or
focused on synonyms such as government,
overlapping points in their answers.
producers, stakeholders, wholesalers,
− Encourage students not to provide
buyers, and sellers. Additionally, some vague or ambiguous explanations while
candidates wrote about the features of the attempting to give exhaustive
business environment, while others explanation.
discussed the components of the
macroenvironment.
(ii) Many candidates repeated the same component—culture, tradition, and lifestyle—across three
different points while discussing various components. Some candidates mixed up social
components with points that either covered demographic trends or social trends.

13
2024 ISC- Commerce

MARKING SCHEME
Question 10
(i) Five external factors of Micro environment that influence a business organisation
1. Customers
2. Competitors
3. Suppliers
4. Marketing intermediaries (Middleman)
5. Financiers/Investors
6. Publics
(Any five)
(ii) Components of Social environment
1. Demographic trends
2. Social attitudes/ Culture
3. Family structure
4. Social concerns/ Social Well-Being
5. Education levels
(Any three)

Question 11
(i) Ms. Rubina, a first-time investor, does not understand the difference between [5]
securities with voting rights and securities without voting rights.
Give any five differences between the two types of securities to help her understand
the difference.
(ii) Expand UPI and briefly discuss its meaning. [3]

OR

(i) Rajiv’s daughter has secured a seat in a Law college. The college has asked for the [5]
payment of admission fee through the financial instrument payable on demand.
Identify and explain the financial instrument indicated above. Can it be issued
online? List any two of its features.
(ii) Write a short note on Sweat Equity Shares. [3]

14
2024 ISC- Commerce

Comments of Examiners
(i) Majority of the candidates wrote about the Suggestions for teachers
differences between equity shares and
preference shares. Many candidates − Ensure that students have updated
presented their answers with headings, knowledge about the subject matter.
using various points of difference. While − Refer to the previous year’s pupil
some points, such as convertibility, were performance to avoid common errors.
correct, the answers often failed to connect − Equip students with the correct
equity and preference shares, indicating a terminology, such as using ‘dividend’
for returns on shares and ‘interest’ for
complete lack of understanding of the topic.
debentures.
(ii) The majority of the candidates failed to − Instruct students that abbreviations
provide the full form of UPI. Instead, they should not be spelled incorrectly.
defined it as ‘phone payment’ and listed − Ensure that students are informed
features of UPI that were actually about the latest banking trends and
advantages of E-Banking, such as being facilitate learning about them through
available 24/7, convenient, and safe. project work.
− Explain in detail the various financial
OR instruments and their features that can
(i) Some candidates correctly identified it as a be used to remit money from one place
bank draft, while most others mistakenly to another.
identified it as IMPS, NEFT, RTGS, net − Clearly explain the unique features of
banking, a credit card, or a bank overdraft. rights shares, ESOP shares, bonus
shares, and sweat equity shares.
Candidates who identified the financial
instrument correctly overlooked the part of − Emphasize that the unique features of
each type of share distinguish it from
the question that asked whether it can be
other shares.
issued online, resulting in lost marks.
(ii) The majority of the candidates confused
sweat equity shares either with rights shares or ESOPs, mentioning only that employees,
shareholders, or owners were given shares, rather than specifying both employees and directors.
Some candidates confused sweat equity shares with bonus shares, stating that they are given free
of cost. The candidates did not provide sufficient explanations to score full marks.

MARKING SCHEME
Question 11
Basis Shares / Securities with voting Debentures / Securities
(i)
rights without voting rights
Status of holder Shareholders are part owners Debenture holders are
creditors
Yield Shareholders get dividends as Debenture holders get interest
return on investment
Rate of return Dividends fluctuate depending Interest is fixed generally
on profits
Change on assets Shares carry no mortgage or Debentures are issued against
security against assets. the security of certain assets
Terms of issue Issue of shares at No restriction on the terms of
premium/discount is subject to issue of a debenture.
certain conditions prescribed by
The Companies Act.

15
2024 ISC- Commerce

Right on return Dividend cannot be claimed as a Interest can be claimed as a

matter of right matter of right.
Term of Shares are repaid only on Debentures are repaid
repayment winding up according to the terms of
issue.
Order of Shareholders are paid after Debenture holders are paid
repayment debenture holders upon winding before shareholders upon
up of the company. winding up of the company.
Convertibility Shares are not convertible into Debentures can be converted
debentures. to equity shares.
Tax deduction Dividends are not deducted from Debenture interest is
the income while calculating deductible from profits while
Income Tax. calculating tax.

Risk High low

Participation Have voting rights/ Can No voting rights/ can’t

participate in Management participate in management

(Any five)

(ii) UPI – Unified Payments Interface

Meaning
1. Single window mobile payment system
2. Developed by National Payments Corporation of India (NPCI)
3. Money can be sent and received via a UPI ID/QR Code/Scan Code
4. An active bank account is needed to use UPI.
5. Eliminates the need to enter bank details or other sensitive information each time a
customer initiates a transaction.
OR

(i) Demand Draft

It is a type of a cheque drawn by a bank on its own branch or another bank in favor of third
party or to his order.
Yes, it can be issued online
Features of Demand Draft
1. Easy and convenient
2. Safe remittance of money
3. A Commission is charged by the issuing bank
4. No danger of dishonour
5. Online request can be made for issue of a Demand Draft through Net Banking
6. Payee need not have a bank A/c to encash a demand draft
7. Payable on demand
(Any two features)

(ii) Sweat Equity Shares

1. These are shares issued by the company to employees or directors.
2. They are issued at a discount to the market price.
16
2024 ISC- Commerce
3. They may be issued for consideration other than cash.
4. They are issued for providing technical know-how or making available intellectual
property rights.
5. They have a lock-in period of three years.
6. Employees can reject the offer and accept cash instead as the remuneration.
7. To retain talent
(Any three points)

Question 12
(i) Motivation is a psychological phenomenon which arises from human needs and [5]
wants.
In the light of above statement, explain Maslow’s theory on Motivation.

(ii) Explain method as a type of Plan. [3]

Comments of Examiners
(i) Majority of the candidates substituted the Suggestions for teachers
word ‘physiological’ with
‘psychological.’ Many candidates did not − Reiterate to the students that a spelling
follow the chronological sequence while mistake can change the answer.
writing about Maslow’s theory, which − Insist that following the correct sequence
resulted in a loss of marks. Additionally, when answering questions about
Maslow’s theory is essential; failing to do
many of them confused social needs with
so will result in a loss of marks.
self-esteem needs. Some candidates drew
− Clearly explain the features of each type
a diagram without providing an of plan.
explanation, and thus were not awarded − Provide practical examples of different
any marks for it. types of plans.
(ii) Most candidates did not adequately
explain the concept of ‘method’ as a type
of plan. Many confused ‘method as a type of plan’ with ‘procedure as a type of plan.’ Some
candidates provided incorrect examples to illustrate ‘method as a type of plan’ or described it
as a standing plan used for routine jobs. As a result, candidates scored poorly on this question.

MARKING SCHEME
Question 12
(i) Abraham Maslow’s theory of Motivation
1. Physiological needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self-actualisation need
(*Sequence of hierarchy to be maintained)
(ii) Method as a type of Plan
1. Best way of doing work
17
2024 ISC- Commerce
2. Maximizes efficiency and economy
3. Result of research
4. Standardisation and simplification
5. Formalised and standardised way of routine jobs
6. Detailed and specific guidance for day-to-day action
7. One step of a procedure/ always a part of procedure.
(Any three points in a paragraph or statements)

Question 13
Read the case given below and answer the questions that follow.
Pooja has started a small company that manufactures steel and aluminium rods used by
construction firms. She has made a large capital investment in this venture and also hired an
excellent sales team. Their marketing approach is to contact the buyers directly and explain the
features of their product. They have a complete control over the distribution of their products.
(i) Identify the type of product manufactured by Pooja’s company. [1]
(ii) Briefly explain any two features of the product identified in subpart (i). [2]
(iii) State the channel of distribution used by the company in the above case. [1]
(iv) Identify and briefly discuss any three objectives of the element of Promotion Mix [4]
used by the Sales team in the above case.
Comments of Examiners
(i) Most candidates failed to identify the goods
correctly, mistakenly referring to them as Suggestions for teachers
producer goods, capital goods, or industrial − Emphasize that case studies are not
goods instead of industrial goods. A few comprehension passages, so words
candidates answered in a comprehension should not be directly taken from the
format, incorrectly identifying the goods as case studies to answer the questions that
steel and iron rods. follow.
(ii) Most candidates wrote about raw materials − Provide practice with a variety of case
or types of industrial products rather than the studies so that students do not get
features of the products. Some candidates confused and can answer different types
mentioned tangibility as a feature, which was of questions with clarity.
insufficient. − Initiating group discussions in class will
offer varied perspectives on different
(iii)Many candidates made the common error of
cases.
stating ‘direct contact with buyers’ or ‘short
− Guide students to ensure that diagrams
channel’ as the distribution channel for the are accompanied by written
company. Some candidates drew a diagram explanations, and encourage them to use
but failed to mention all the distribution diagrams, as they can be more
channels. explanatory.
(iv) Many candidates incorrectly identified − Explain the channel of distribution
elements of the promotion mix as sales using a proper flow chart.
promotion or advertisement, providing the − Clarify to students that only one answer
objectives of those elements instead. Some is expected for each question, and
candidates listed all the elements of the discourage multiple answers for the
promotion mix—advertising, sales same question.
promotion, personal selling, and publicity—
but failed to identify them according to the
question.
18
2024 ISC- Commerce

MARKING SCHEME
Question 13
(i) Industrial product

(ii) Features of industrial product:

1. Derived demand
2. Few buyers
3. Geographical concentration
4. Shorter distribution channel
5. Technical consideration
6. Leasing out
7. Reciprocal buying

(iii) Producer/ Manufacturer to consumer / zero level channel of distribution/ Direct Channel

(iv) Personal Selling / Salesmanship

Objectives of Personal Selling
1. To increase sales
2. To convert the interest in desire created by advertising into demand.
3. To introduce new products through demonstration and explanation
4. To redress grievances and objections of customers
5. To persuade customer to carry the brand
6. To persuade customer to switch over from rival brands
7. To collect feedback form customer/ Market information
8. To do the complete job of selling
(Any three objectives to be briefly discussed)

19
2024 ISC- Commerce

GENERAL COMMENTS
Topics found difficult by candidates

• Question 1 (iv): Legislative Function of the Legislature

• Question 2: Decentralization of Authority
• Question 4: Capital structure
• Question 6: Relationship between planning and controlling
• Question 8: (i) Marketing Research
• Question 9: (ii) Product liability and mandatory information provided by E-Commerce
• Question 11: Identification of a Bank draft
• Question 11: (ii) Sweat equity shares.
• Question 12: Meaning of method as a type of plan
• Question 13: Features of industrial products

Concepts in which candidates got confused

• Question 1: Informal organization was confused with grapevine, Management as a

discipline with management as a science or profession.
• Question 2: The merits of decentralization were confused with merits of delegation of
authority
• Question 3: Trade credit and its features
• Question 9: (i) Provision of CPA 2019
• Question 11: (i) Securities with voting rights and securities without voting rights
• Question 11: (ii) Bank draft
• Question 11: (ii) Internal choice—Sweat equity shares was confused with ESOP
• Question 12: (ii) Method as a type of plan
• Question 13: (i) Identify the type of product manufactured

Suggestions for candidates

• Concentrate in class for better understanding.

• Keep abreast of updates related to the subject.
• Avoid selective study.
• Instead of learning by rote, focus on understanding the concepts.
• Write sufficient explanations under each header.
• Read the question, understand it, and then answer.
• Ensure that the headings and explanations correlate with each other.
• Avoid overlapping points to prevent duplication.
• Practice case studies.
• Time management is important.
• Avoid last-minute studying.
• Revise past years’ papers along with the specimen paper and CFQs to gain expertise in
writing answers.
• Keep yourself updated about changes, especially regarding the latest banking trends and
CPA 2019.

20