COMMERCE (857)

CLASS XII
There will be two papers in the subject:
Paper I - Theory: 3 hours ……80 marks Paper II- Project Work ……20 marks

PAPER - I (THEORY) – 80 Marks

1. Business Environment Equity shares - features, advantages

and disadvantages.
Concept and importance of Business
Environment. Preference shares - features, types
advantages and disadvantages;
Meaning, features and importance of Business
distinction between equity shares and
Environment;
preference shares.
Dimensions of Business Environment – Micro
Bonus and rights issue, ESOP and
(Internal and External factors) and Macro
Sweat Equity Shares - meaning.
(Economic, social, technological, political and
legal) – meaning and components. Retained earnings – meaning, merits
and demerits.
S.W.O.T. Analysis - A basic understanding of
S.W.O.T. (Strength, Weakness, Opportunity and (b) Loan capital: debentures.
Threat) Analysis.
Debentures – meaning; kinds of
debentures; advantages and
2. Financing
disadvantages of debentures.
(i) Capital: Sources of finance for sole trader; Distinction between shares and
partnership; Joint Stock Company; financial debentures.
planning.
(c) Loans from commercial banks and
Importance of finance for business. Sources Financial Institutions.
of finance for different types of business
Loans from commercial banks and
firms. Meaning, features and importance of
Financial Institutions - meaning,
financial planning. Factors affecting
advantages and disadvantages.
capital structure. Fixed capital - meaning,
factors affecting fixed capital. Working (d) Short-term sources of funds.
capital – meaning, types; factors affecting
Short-term sources of funds – different
working capital. Comparison between fixed
types of short-term financial assistance
and working capital.
by Commercial Banks; public deposits,
(ii) Sources of finance for a Joint Stock trade credit, customer advances,
Company. factoring, Inter corporate deposits and
installment credit. Meaning,
(a) Different types of shares: equity,
advantages and disadvantages of
preference.
various sources of funds.
Bonus shares, rights issue, ESOP,
(iii) Banking - latest trends.
Sweat Equity Shares, Retained
earnings. Online services- transfer of funds through
Real Time Gross Settlement (RTGS),
Long-term sources of funds.
National Electronic Funds Transfer
(NEFT), Immediate Payment Service
1
 (IMPS), issue of demand drafts online functional and divisional; Formal and
meaning and features. informal organization) – Meaning,
features, merits, demerits and
Online payments, e-Banking – meaning and
differences between line and line &
features, advantages and disadvantages.
staff, functional and divisional, formal
Mobile Banking - SMS alerts, transfer of and informal; Meaning and importance
funds, making payments - advantages and of delegation of authority;
disadvantages. Decentralization v/s Centralization,
Debit Cards vs Credit Cards, ATM comparison between delegation and
(Automated Teller Machine) – Meaning; decentralization, merits and demerits.
Debit card and credit card: features and (c) Staffing:
differences. Meaning, steps and importance;
3. Management Recruitment – Meaning and sources;
Selection –Meaning and procedure;
(i) Management: Meaning, objectives and Training and development – Meaning,
characteristics of management. types of training, difference between
Meaning of Management: as an activity; as selection and recruitment, Training and
a group; as a discipline; as a process. Development.
Objectives and characteristics of (d) Directing:
management. Meaning and importance; Supervision-
(ii) Nature of Management – Science, Art and Meaning, functions and span of
Profession. control;
Self explanatory. Motivation - Meaning and Maslow’s
theory; Leadership- Meaning and
(iii) Importance of Management. qualities of a good leader;
Self explanatory. Communication - Meaning, objectives
(iv) Principles of Management: nature of and process. Barriers to
principles; need for principles. communication and overcoming
barriers to communication.
Nature of principles of Management; need
(e) Controlling:
for principles of management; Taylor’s 5
scientific principles of Management; Meaning, steps and importance;
Fayol’s 14 principles of Management; Relationship between Planning and
Comparison of Taylor's and Fayol’s Controlling; Management by
principles. Exception.
(v) Functions of Management: Planning; (f) Coordination:
Organising; Staffing; Directing; Controlling Meaning of Coordination;
and Coordinating. Coordination as an essence of
Management.
(a) Planning:
4. Marketing
Meaning, steps, importance &
limitation; Types of plans; Objectives, (i) Marketing: concept and functions.
policy, procedures, method, role,
Meaning and types of markets; meaning
budget, program – meaning and
and features of marketing. Marketing
features.
concepts: traditional v/s modern - meaning
(b) Organising: and features of traditional and modern
concepts of marketing. Comparison
Meaning, importance, steps; Structure
between marketing and selling. Objectives
of organization (line, line and staff,
and importance of marketing; functions of
2
 marketing – meaning, features of each A list of suggested Projects is given below:
function of marketing.
1. Compare marketing strategies adopted by two
(ii) Marketing Mix - Meaning and Elements. different companies of the same industry
(FMCG / Telecommunication / media /
Product Mix - goods and services -
education industry etc.) keeping in mind
meaning, features and types of goods;
the following:
meaning, features of services; difference
between product and services. Branding: − Product mix
meaning and merits. Labeling: meaning
− Price Mix
and merits. Packaging: meaning and
features of good packaging. − Place Mix
Price Mix – meaning, factors determining − Promotion Mix
price. 2. Collect newspaper/magazine clippings of five
Place Mix – meaning, channel of cases filed by consumers in the Consumer
distribution choice of channels of Court.
distribution and physical distribution. Find out the rights violated, and the redressal
Promotion Mix – Meaning and elements. mechanism used.
Elements – Advertising, sales promotion, What was the outcome of each case?
personal selling and publicity – meaning, 3. Visit a commercial Bank. Find out the
features, objectives and differences. procedure to open a savings account.
(iii) Consumer protection: rights of consumers, Find out the details of various Agency &
methods of consumer protection. General utility services provided by the bank.
Need for consumer protection; methods of 4. Compare the interest rates offered by five
consumer protection - self-help, legislative different commercial banks on fixed deposits
measures and consumer under various categories (general and senior
associations/NGOs, Consumer Protection citizens) and various time durations.
Act, 2019 - Rights of consumers.
Find out the procedure and formalities for
The Consumer Disputes Redressal opening a fixed deposit account.
Commissions (National, State and District).
What is the procedure for closing the account
on maturity and before maturity period?
PAPER II – PROJECT WORK – 20 Marks 5. Select five different companies across varying
Candidates will be expected to have completed two industries such as I.T., textiles, FMCG, Health
projects from any topic covered in Theory. Care, etc., included in the SENSEX. Keeping a
hypothetical base money of Rupees One Lakh,
The project work will be assessed by the teacher invest in the shares of the selected companies.
and a Visiting Examiner appointed locally and The movement of share prices selected by you
approved by the Council. should be monitored over a period of one
Mark allocation for each Project [10 marks]: month on a daily basis. A uniform / standard
practice of either using the opening price or the
Overall format 1 mark closing price on a particular day of the week
Content 4 marks should be used by all students in the class.
Findings 2 marks At the end of the month, analyse your
investment in a spread sheet and give reasons
Viva-voce based on the Project 3 marks for your choice of scripts.

3
6. Find out the names of companies under various 9. Choose two companies of the same industry.
sectors (FMCG, Pharma, automobile, etc) Study their organizational structure. Also give
included in the NIFTY and the SENSEX. information with regard to:
Make a chart of the same and track its (i) Hierarchy
movements over a period of one week.
(ii) Centralization and delegation of authority
7. (a) Study the sources of recruitment and steps
(iii) Flow of information (scalar chain)
involved in the selection procedure adopted
by two companies of the same industry. (iv) Span of control
(b) Compare and evaluate the sources of (v) Channel of communication.
recruitment and the selection process 10. Select any business undertaking. Study the
adopted by the selected companies. selected business in terms of ownership, capital
8. Formulate a capital plan for a hypothetical and profitability.
business organization. Make a S.W.O.T. analysis and present it in a
Justify your formulated plan. tabular form.

NOTE: No question paper for Project Work will be

set by the Council.

4
 SAMPLE TABLE FOR PROJECT WORK
S. Unique PROJECT 1 PROJECT 2 TOTAL
No. Identification MARKS
Number A B C D E F G H I J
(Unique ID) Teacher Visiting Average Viva-Voce Total Teacher Visiting Average Viva- Total (E + J)
of the Examiner Marks by Visiting Marks Examiner Marks Voce by Marks
candidate (A + B ÷ 2) Examiner (C + D) (F + G ÷ Visiting (H + I)
2) Examiner
7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 20 Marks

10

*Breakup of 7 Marks to be awarded separately by

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