COMMERCIAL APPLICATIONS

Prelim 2 -2022(Answer Key)

Class X: Prelim -2 Reading Time: 10 mins

Max. Marks:50 Writing Time: 1 hr 30 mins

___________________________________________________________________________
Maximum Marks: 50

Time allowed: One and a half hours

Answers to this Paper must be written on the paper provided separately.

You will not be allowed to write during the first 10 minutes.

This time is to be spent in reading the question paper.

The time given at the head of this Paper is the time allowed for writing the answers.

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Section A is compulsory. Attempt any four questions from Section B.

SECTION A (10 Marks)
Attempt all questions from this section
Question 1
Choose the correct answers to the questions from the given options. (Do not copy the
question, Write the correct answer only.) [10]

(i) ____________ test is designed to ascertain how swiftly and efficiently candidates can use
different parts of the body in a coordinated manner.
(a) Intelligence
(b) Dexterity
(c) Personality
(d) Achievement

(ii) ____________ interview is systematically planned in advance and is conducted in a pre-planned

manner.
(a) Group
(b) Unstructured
(c) Structured
(d) Stress
(iii) In case of__________________ recruitment companies maintain a close liaison with the
management and technical institutions and universities.
(a) Gate Hiring
(b) Campus
(c) Recommendations
(d) Tele

(iv) ____________ is a horizontal movement of an employee.

(a)Promotion
(b) Demotion
(c) Inbreeding
(d) Transfer

(v) ____________ function of the Human Resource Management is concerned with securing and
employing the right kind and proper number of people to accomplish the organisational objectives.
(a) Compensation
(b) Development
(c) Procurement
(d) Integration

(vi) ____________ contains a number of printed blank forms of cheques with their counter foils
consecutively numbered.
(a)Pass Book
(b) Cheque Book
(c) Pay-in-Slip Book
(d) Cash Book

(vii) In a ____________ deposit account no pass book or cheque book is issued. Only a receipt
containing the details is issued.
(a)Fixed
(b)Recurring
(c) Savings
(d) Current

(viii) The ____________ has monopoly over issuing currency notes in the country.
(a) Bank of Baroda
(b) Canara Bank
(c) State Bank of India
(d) Central Bank

(ix) Receipts and Payment account is a __________ account.

(a) Nominal
(b) Recurring
(c) Real
(d) Personal

(x) ____________ means the right to acquire knowledge and skill to be an informed consumer.
(a)Right to seek redressal
(b) Right to be Heard
(c) Right to Choose
(d) Right to Consumer Education
 Section B (40 marks)
(Attempt any 4 questions)

Question 2
(i) State one point of difference between Income and Expenditure Account and Profit and Loss
Account. [2]
Ans:
Income and Expenditure Account Profit and Loss Account

This account is prepared by Non-Trading This account is prepared by Trading concerns,

concerns, which do not seek to earn profit. The which seek to earn profit. The balance of this
balance of this account shows surplus or deficit. account shows net profit or net loss.

(ii) State one point of difference between Internal sources of Recruitment and External sources
of Recruitment. [2]

Ans:
Internal sources of Recruitment External sources of Recruitment

Recruitment from persons already working in Recruitment from persons not working in the
the organisation. Less time-consuming and organisation. The process involves more time
less costly. (Transfer and Promotion) and money. (Advertisements and Gate Hiring)

(iii) Explain the Compensation function of Human Resource Management. [3]

Ans:
Compensation Functions- Refers to providing adequate and fair remuneration to the employees for
their contribution in the accomplishment of the organisational objectives. It comprises of the
following activities-
i. Job Evaluation- It refers to the process of determining the relative worth of a job.
ii. Wage and Salary administration- It refers to developing and implementing a suitable
wage and salary programme. In general, wages represent hourly rates of pay and
salary refers to the monthly rate of pay.
iii. Bonus- It refers to incentive which are generally linked with performance and given
to employees beyond normal standard wage.

(iv) Write the Role of a Balance Sheet in decision making. Give any two reasons. [3]

Ans:

i.It depicts the financial position of the organisation on a specified date. This helps them to
understand how to reduce unproductive assets, if they are unutilised.

ii.The Balance Sheet is prepared on the basis of its Receipts and Payment, Income and
Expenditure Account. Profit and loss helps them to understand the sources of revenue and
expenses.
Question 3

(i) What is the purpose of a Stress Interview? [2]

Ans:
The purpose of this interview is to see how candidates react to unexpected questions and difficult
situations. The interviewer deliberately adopts a hostile attitude by asking questions rapidly, by
criticizing the candidate. The reactions of the candidate to stressful conditions are judged.

(ii) Mention the elements of Public Relations. [2]

Ans:
Human Relations
Empathy
Persuasion
Dialogue

(iii) Explain any three functions of the RBI in context with the Indian economy. [3]

Ans:
Functions of the Reserve Bank of India
i.Issue of Currency Notes
ii.Credit Control
iii.Bankers Bank
iv.Custodian of Foreign Currency Reserves
v.Banker to the Government
(Students to explain any three in detail)

(iv) Write any three features of an Income and Expenditure account. [3]

Ans:
i.It is a nominal account. Therefore, expenses and loses are debited and incomes and gains are
credited.
ii.While preparing an Income and Expenditure Account, only items of revenue nature are recorded
and items of capital nature are not included.
iii. Income and expenses pertaining only to the current year are recorded.

Question 4

(i) Write a short note on Cash Credit. [2]

Ans:
In this arrangement, the bank advances cash loans to the borrower against cash loans to the borrower
against some tangible security or personal guarantee. Interest is charged on the amount actually
withdrawn and not on the whole amount granted.

(ii) Why is Consumer Relation important for an organization? [2]

Ans. Consumers determine the success or failure of a business enterprise. Developing better relations
with consumers is a challenging task. Regularly communicating with them through sales
representatives and meetings is essential. Without consumers an organisation will seize exist in the
long run.
(iii) Explain the first steps in the selection procedure for a vacancy in an organization.
[3]
Ans:
1. Preliminary Interview
2. Application Blank
3. Selection Test
(points to be explained)

(iv) Write any three features of Human Resource. [3]

Ans:
i.Human resources are heterogeneous. They consist of a large number of individuals each having a
unique personality, attitudes and values.

ii.Human resources are dynamic and behave differently. They react to the same situation in quite
different ways.

iii.Human resource are the most important element in an organisation. The effective utilisation of all
other resources depends upon the quality of human resources.

Question 5

(i) Justify either for or against by giving a reason for the following statement.
‘All Donations received by non-trading concerns are entered in the liabilities side of the Balance
Sheet.’ [2]
Ans:
Against: Only specific donations meant for a particular purpose (such as donations for library or
donations for construction of Hall) are shown on the liabilities side of the Balance Sheet. General
donations not meant for a particular purpose are entered on the income side of the Income and
Expenditure account.

(ii) Justify either for or against by giving a reason for the following statement.
‘Reference checks may not provide reliable information.’ [2]
Ans:
Candidates are generally required to give the name and addresses of two or three persons from whom
information about the candidate may be obtained. These persons are called ‘references’. No
candidate will enter the name of a referee who might speak unfavourably about him.

(iii) State any three points of difference between ‘Recruitment’ and ‘Selection’. [3]
Ans:
Recruitment Selection
It involves searching for prospective employees It involves comparing and choosing suitable
and stimulating them to apply. candidates.
It is said to be a positive process because it seeks It is said to be a negative process because it
to attract a large number of candidates from seeks to eliminate less qualified candidates to
which choice can be made. select the most suitable ones..
It begins when recruits are sought and ends It begins when recruitment ends and continues
when applications are received. It precedes till the final candidates are not selected for the
selection. training programme.
(iv) Explain any three consumer rights provided by the Consumer Protection Act. [3]
Ans:
i.Right to Safety: It means the right to be protected against the marketing of goods and services
which are hazardous to life and property. Before purchasing, consumers should insist on the quality
and guarantee of the product and service.
ii.Right to be Informed: It means right to be informed about the quality, purity, standard and price
of goods. By getting all the information, consumers can make the right choice and protect
themselves from unfair trade practices.
iii.Right to be Heard: It means consumer’s interest must receive the consideration at appropriate
forums. It also includes the right to be represented in various forums constituted to consider the
welfare of consumers.

Question 6

(i) Write a short note on Recurring Deposit Account. [2]

Ans:
The account holder is required to deposit a specific amount every month on a specified date. After
the expiry of the specified period, the depositor gets back his money along with interest. The
number of instalments may vary from 12 to 72.

(ii) Why are interviews an important part of the selection process? [2]

Ans:
Selection or employment interview is a formal conversation between a candidate and the
employer to judge the former’s suitability for a job. The purpose is to assess the candidates.
Interview is also beneficial to the candidate as he gets the opportunity to know about the job and
the organisation.

(iii) Write any three circumstances when a bank can refuse payment of a cheque. [3]

Ans:
i.When the funds to the credit of the drawer are not sufficient to make payment of the cheque.
ii.When the cheque is post-dated and is presented before the date it bears.
iii.When the drawer has stopped payment of the cheque.
iv.When the cheque is altered and the alterations are not signed.
v.When the cheque is crossed and it is not presented through a bank.
(Any 3 Points)

(iv) Explain the significance of Human Resource Management for an enterprise. (3 Points) [3]

Ans:
i.Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement and promotional policies.
ii.Developing the necessary skills and right attitudes among the employees through training,
development, performance appraisal.
iii.Securing willing cooperation of employees through motivation, participation and appropriate
grievance handling.
Question 7
Rajesh and Suresh have decided to start a Private Limited Company to carry out repair and
renovation of buildings. They have named their company ‘New Renovators(P) Ltd. Company’. For
their investment in tools, equipment and office space they have decided to take a loan for eight
years. They also approached a bank to open an account in the name of the Company.
They need to hire a manager to oversee their operations efficiently. They have placed an
advertisement in the newspaper for this purpose. They also need to hire a labour force for
execution of the repair work.

With reference to the above answer the following questions:

(i) What type of account should be opened? Explain. [2]

Ans: Current Account

It is maintained by business firms.
Money can be deposited and withdrawn any number of times.
Bank does not pay interest on balance in current account. Rather a charge is levied for bank’s
service.
Overdraft facility is available on a current account.

(ii) Explain Advertisement as an external source of recruitment. [2]

Ans: Advertisement in newspapers are the most widely used method of recruitment. This method is
convenient and economical also. The requirement of the job and terms and conditions of
employment are stated in the advertisements. Candidates evaluate themselves against job
requirements and send applications.

(iii) Explain any two external sources of recruitment that are required to hire labour. [3]
Ans: Two external sources of recruitment of labour are as under:
i.Contractor- The company can engage a contractor who will supply the required labour. Contractors
have links with labourers needed for manual work.

ii.Gate Hiring- A notice may be put to inform workers and request them to assemble at specified
time, place and day. Required labour can be recruited from the gathered candidates.

(iii) Explain any three advantages offered by the employment tests. [3]

Ans:
i.Uniformity- Test provide a uniform basis for comparing the performance of candidates because the
same tests are given to all the candidates.
ii.Objectivity- Test provide an objective standard for assessing the capabilities of a candidate.
iii.Suitability- Tests are helpful in judging the suitability of a candidate for the job in terms of his
intelligence, temperament and dexterity.

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