COMMERCE

CLASS XII
There will be two papers in the subject. Long-term sources of funds.
Paper I - Theory: 3 hours ……80 marks Equity shares - features, advantages and
disadvantages.
Paper II- Project Work ……20 marks Preference shares - features, types
advantages and disadvantages;
PAPER - I (THEORY) – 80 Marks distinction between equity shares and
Part 1 (20 marks) will consist of compulsory short preference shares.
answer questions testing knowledge, application and Bonus and rights issue, ESOP and Sweat
skills relating to elementary / fundamental aspects of Equity Shares - meaning. Distinction
the entire syllabus. between bonus shares and right shares.
Part II (60 marks) will consist of eight questions out Retained earnings – meaning, merits and
of which candidates will be required to answer demerits.
five questions, each carrying 12 marks. (b) Loan capital: debentures.
Debentures – meaning; kinds of
1. Business Environment debentures; advantages and
Concept, and importance of Business disadvantages of debentures. Distinction
Environment. between shares and debentures.
Meaning, features and importance of Business (c) Loans from commercial banks and
Environment; Financial Institutions.
Dimensions of Business Environment – Micro Loans from commercial banks and
(Internal and External factors) and Macro Financial Institutions - meaning,
advantages and disadvantages.
(Economic, social, technological, political and
legal) – meaning and components. (d) Short-term sources of funds.
S.W.O.T. Analysis - A basic understanding of Short-term sources of funds – different
S.W.O.T. (Strength, Weakness, Opportunity and types of short term financial assistance by
Threat) Analysis. Commercial Banks; public deposits,
trade credit, customer advances,
2. Financing factoring, Inter corporate deposits and
(i) Capital: Sources of finance for sole trader; installment credit. Meaning, advantages
partnership; Joint Stock Company; financial and disadvantages of various sources of
planning. funds.
Importance of finance for business. Sources of (iii) Banking - latest trends.
finance for different types of business firms. Online services- transfer of funds through
Meaning, features and importance of Real Time Gross Settlement (RTGS), National
financial planning. Factors affecting capital Electronic Funds Transfer (NEFT), issue of
structure. Fixed capital - meaning, factors demand drafts online meaning and features.
affecting fixed capital. Working capital – Online payments, e-Banking – meaning and
meaning, types; factors affecting working features, advantages and disadvantages.
capital. Comparison between fixed and
working capital. Mobile Banking - SMS alerts, transfer of
funds, making payments - advantages and
(ii) Sources of finance for a Joint Stock disadvantages.
Company.
Debit Cards vs Credit Cards, ATM
(a) Different types of shares: equity, (Automated Teller Machine) – Meaning;
preference. Debit card and credit card: features and
Bonus shares, rights issue, ESOP, Sweat differences.
Equity Shares, Retained earnings.

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3. Management Training and development – Meaning,
types of training, difference between
(i) Management: Meaning, objectives and selection and recruitment, Training and
characteristics of management. Development.
Meaning of Management: as an activity; as a (d) Directing:
group; as a discipline; as a process.
Meaning and importance; Supervision-
Objectives and characteristics of
Meaning, functions and span of control;
management.
Motivation - Meaning and Maslow’s
(ii) Nature of Management – Science, Art and theory; Leadership- Meaning and
Profession. qualities of a good leader;
Self explanatory. Communication - Meaning, objectives
and process. Barriers to communication
(iii) Importance of Management. and overcoming barriers to
Self explanatory. communication.
(e) Controlling:
(iv) Principles of Management: nature of
principles; need for principles. Meaning, steps and importance;
Relationship between Planning and
Nature of principles of Management; need for Controlling; Management by Exception.
principles of management; Taylor’s 5
scientific principles of Management; Fayol’s (f) Coordination:
14 principles of Management; Relevance of Meaning of Coordination; Coordination
the principles of Management in today’s as an essence of Management.
business scenario. Comparison of Taylor's
and Fayol’s principles. 4. Marketing
(v) Functions of Management: Planning; (i) Marketing: concept and functions.
Organising; Staffing; Directing; Controlling Meaning and types of markets; meaning and
and Coordinating. features of marketing. Marketing concepts:
(a) Planning: traditional v/s modern - meaning and features
of traditional and modern concepts of
Meaning, steps, importance & limitation;
marketing. Comparison between marketing
Types of plans; Objectives, policy,
and selling. Objectives and importance of
procedures, method, role, budget,
marketing; functions of marketing – meaning,
program – meaning, features and
features of each function of marketing.
differences.
(ii) Marketing Mix - Meaning and Elements.
(b) Organising:
Product Mix - goods and services - meaning,
Meaning, importance, steps; Structure of features and types of goods; meaning,
organization (line, line and staff, features of services; difference between
functional and divisional; Formal and product and services. Branding: meaning and
informal organization) – Meaning, merits. Labeling: meaning and merits.
features, merits, demerits and differences Packaging: meaning and features of good
between line and line & staff, functional packaging.
and divisional, formal and informal;
Meaning and importance of delegation Price Mix – meaning, factors determining
of authority; Decentralization v/s price.
Centralization, comparison between Place Mix – meaning, channel of distribution
delegation and decentralization, merits choice of channels of distribution and
and demerits. physical distribution.
(c) Staffing: Promotion Mix – Meaning and elements.
Meaning, steps and importance; Elements – Advertising, sales promotion,
Recruitment – Meaning and sources; personal selling and publicity – meaning,
Selection –Meaning and procedure; features, objectives and differences.

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 (iii) Consumer protection: rights of consumers, Find out the procedure and formalities for opening
methods of consumer protection. a fixed deposit account.
Need for consumer protection; rights of What is the procedure for closing the account on
consumers; methods of consumer protection – maturity and before maturity period?
self help, legislative measures and consumer 5. Select five different companies across varying
associations/NGOs, Consumer Protection Act, industries such as I.T., textiles, FMCG, Health
1986. Care, etc., included in the SENSEX. Keeping a
hypothetical base money of Rupees One Lakh,
PAPER II – PROJECT WORK – 20 Marks invest in the shares of the selected companies. The
Candidates will be expected to have completed two movement of share prices selected by you should
projects from any topic covered in Theory. be monitored over a period of one month on a
daily basis. A uniform / standard practice of
The project work will be assessed by the teacher either using the opening price or the closing price
and a Visiting Examiner appointed locally and on a particular day of the week should be used by
approved by the Council. all students in the class.
Mark allocation for each Project [10 marks]: At the end of the month, analyse your investment
in a spread sheet and give reasons for your choice
Overall format 1 mark of scripts.
Content 4 marks 6. Find out the names of companies under various
sectors (FMCG, Pharma, automobile, etc)
Findings 2 marks included in the NIFTY and the SENSEX.
Viva-voce based on the Project 3 marks Make a chart of the same and track its movements
over a period of one week.
A list of suggested Projects is given below: 7. (a) Study the sources of recruitment and steps
1. Compare marketing strategies adopted by two involved in the selection procedure adopted
different companies of the same industry by two companies of the same industry.
(FMCG / Telecommunication / media / education (b) Compare and evaluate the sources of
industry etc.) keeping in mind the following: recruitment and the selection process adopted
 Product mix by the selected companies.
8. Formulate a capital plan for a hypothetical business
 Price Mix
organization.
 Place Mix Justify your formulated plan.
 Promotion Mix 9. Choose two companies of the same industry.
2. Collect newspaper/magazine clippings of five Study their organizational structure. Also give
cases filed by consumers in the Consumer Court. information with regard to:
(i) Hierarchy
Find out the rights violated, and the redressal
mechanism used. (ii) Centralization and delegation of authority
What was the outcome of each case? (iii) Flow of information (scalar chain)
(iv) Span of control
3. Visit a commercial Bank. Find out the procedure
to open a savings account. (v) Channel of communication.
Find out the details of various Agency & General 10. Select any business undertaking. Study the
utility services provided by the bank. selected business in terms of ownership, capital
and profitability.
4. Compare the interest rates offered by five
Make a S.W.O.T. analysis and present it in a
different commercial banks on fixed deposits
tabular form.
under various categories (general and senior
citizens) and various time durations. NOTE: No question paper for Practical work will be
set by the Council.

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

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.

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