COMMERCIAL APPLICATIONS

STATISTICS AT A GLANCE

Total Number of students who took the examination 12,879

Highest Marks Obtained 100
Lowest Marks Obtained 18
Mean Marks Obtained 78.67

Percentage of Candidates according to marks obtained

Mark Range
Details
0-20 21-40 41-60 61-80 81-100
Number of Candidates 1 35 1,455 5,684 5,704
Percentage of Candidates 0.01 0.27 11.30 44.13 44.29
Cumulative Number 1 36 1,491 7,175 12,879
Cumulative Percentage 0.01 0.28 11.58 55.71 100.00

Range of Marks Obtained

44.13 44.29
45.00
Percentage of Candidates

40.00

35.00

30.00

25.00

20.00
11.30
15.00

10.00

5.00 0.01 0.27

0.00
0-20 21-40 41-60 61-80 81-100

Marks Obtained

259
 COMMERCIAL APPLICATIONS

ANALYSIS OF PERFORMANCE

Question 1
State the difference between each of the following:
(a) Commodity market and Capital market. [2]
(b) Skimming pricing and Penetrating pricing. [2]
(c) Current Deposit Account and Saving Deposit Account. [2]
(d) Training and Education. [2]
(e) Money costs and Real costs. [2]

Examiners’ Comments
(a) Most candidates answered this question incorrectly. Suggestions for teachers
Commodity market and capital market were not  A proper explanation with
explained with key words with concepts being unclear. appropriate examples must be
(b) Most candidates answered this question correctly. A conducted in class. Emphasise on
few candidates got confused on skimming price and key words while explaining topics.
penetrating price and misinterpreted them both.  Provide practical knowledge as far
as possible and advise students to
(c) Most candidates answered this question correctly. A
write the main points of
few candidates did not write the correct difference.
distinction.
(d) Most candidate answered this question correctly. A few  A clear distinction should be made
candidates were unable to differentiate on practical and when difference based questions
theoretical aspects. are asked that will enable students
(e) Most candidates answered this incorrectly with the to comprehend and answer
concept of Money costs and Real costs not being correctly.
understood.  Explain with practical examples.
 A comparative and analytical
discussion must be conducted
regarding various types of costs
and highlight key terms/words.

260
MARKING SCHEME
Question 1.

(a) Commodity market Capital market

i. This is an organised market where This is a specialised market for

commodities are bought and sold providing long-term finance to
according to prescribed rules and business enterprises
regulations
ii. eg. cotton eg. stock exchanges, investment
trusts, insurance companies

(b) Skimming pricing Penetrating pricing

i. In this strategy, a very high price is This strategy involve setting a low
set so that in the initial stage the price in the initial stage so as to
cream of demand may be skimmed make the brand quickly popular and
and the investment made in the to maximise the market share.
product is quickly realised.
ii. It is effective for new and distinctive It is an aggressive pricing strategy
products and it may be used to restrict the
entry of new firm in the industry.

(c) Current Account: The number of withdrawals Savings Account: The Number of
Are not restricted. No Interest is paid withdrawals are limited. Nominal
rate of Interest is paid.

(d) Training Education

i. Training involves increasing knowledge Education involves improving
and skills for a specific job general knowledge and intelligence.
ii. Training is often given on the job Education is generally imparted in
schools and colleges.

(e) Money costs Real Costs

i. Money costs means the amount of money Real costs means the sacrifice,
which a producer spends on the production discomfort and pain involved
of a particular commodity supplying the factors of production
by their owners. Such costs cannot
be measured in terms of money.

ii.Money paid for hiring a factor of production Sacrifice made by the owner of
is money cost. factors of production is a real costs.

261
Question 2

(a) What is meant by “Variable Cost’? [2]

(b) What is Tidal energy? [2]
(c) Mention any four main reasons for the rapid growth of public relations. [2]
(d) What is a ‘Balance Sheet’? [2]
(e) State two essentials of a good advertisement. [2]

Examiners’ Comments
(a) Most candidates answered this question correctly. Suggestions for teachers
Some candidates however did not mention variable - Variable Cost must be explained
costs with reference to the volume of output. with suitable examples.
(b) Most candidates answered this question incorrectly. - Provide adequate practice to bring
Some candidates misinterpreted “tidal energy’ as clarity in concepts that will
hydel energy. They were not able to write the main improve the understanding of the
concepts. concerned topic.
(c) Most candidates were unable to answer this question - A clear explanation of concepts
correctly. Some candidates misinterpreted it as must be done to facilitate a better
elements of public relations. understanding.
(d) Most candidates answered this question correctly. A - Teach students to be specific
few candidates wrote that the Balance Sheet helps to while writing answers.
depict profit and loss instead of its financial position. - Regular tests through work sheets
(e) Most candidates answered this question correctly. should be conducted in class.

262
MARKING SCHEME
Question 2

(a) Variable Cost:

i) It varies in proportion to change in the volume of output
ii) It is controllable

(b) Tides are caused by the gravitational force of the sun and the moon. The tides have a tremendous
amount of mechanical energy. This energy can be used to generate electricity. Thus, tidal energy is
derived from the tides of the oceans.

(c) i. Communication gap ii. Population growth iii. Recognition of social responsibility
iv. Big Government v. Development of communication media vi. New ethical standards
vii. Consumerism viii. Education in public relation.

( Any four reasons give two marks)

(d) Balance Sheet: It is a statement which shows the Assets & Liabilities of an Organisation on a
particular date.

(e) Essentials of a Good Advertisement:

i) Attention value
ii) Memorizing value
iii) Suggestive value

Question 3

(a) What are Receipts and Payments Accounts? [2]

(b) What is understood by the ‘Principle of consistency’? [2]
(c) What is meant by ‘Discounting of a Bill of Exchange’? [2]
(d) What are the components of Marketing mix? [2]
(e) What is meant by In-house market? [2]

263
Examiners’ Comments
(a) Most candidates answered this question correctly. Some
Suggestions for teachers
candidates however incorrectly related the given term
 Adequate revision must be
with ‘Income and Expenditure account’.
conducted in class to bring about
(b) Only a few candidates answered the question correctly
clarity in answering questions.
while others lacked the basic knowledge related to the
 Encourage students to revise
Principle of consistency.
‘Principles in accounting’ with
(c) Most candidates answered the question correctly. Some
key words.
candidates however were confused and wrote
 Concepts should be made clear to
rediscounting of bills with the Central Bank.
students through a sound revision.
(d) Most candidates wrote the answer correctly.
 Regular practice is essential
(e) Most candidates misinterpreted it as online marketing
through question and answer
and answered incorrectly.
sessions and paper solving
techniques.
 Suggest role plays in class
discussions that will help in better
comprehension of concepts.

264
MARKING SCHEME
Question 3.

(a) Receipts and payments account is a summary of cash transactions. It is prepared by a non-trading
organisation at the end of every accounting year. In it, opening balance of cash in hand, cash at
bank and all cash receipt are shown on the debit side. All cash payments are recorded on the
credit side. The excess of debit side total over credit side total represents cash balance at the end
of the accounting year.

(b) This principle states that accounting procedure and methods should remain consistent from one
year to another. These should not be changed from year to year a otherwise the net profit of
different year will not be comparable. However, change may be made to adopt improved
techniques of accounting, to keep accounting flexible and to ensure better disclosure of financial
information. In case a change becomes necessary, the change and its effect should be stated
clearly.

(c) Discounting of a Bill of Exchange : refers to Commercial Banks pay the amount of the bill
before the date of its maturity after deducting discount charges.

(d) Components of Marketing Mix: Product, Price, Place,& Promotion

(e) Door-to-door sales persons visit the home of consumers and offer products to them. Before the
visit, initial contact may be created through telephone or mailed-in-coupon. This is an effective
method and offers great convenience to the customer. This offers a friendly and social environment
for shopping.

Question 4

Justify a reason either for or against each of the following:

(a) Services are not homogeneous. [2]
(b) Firms live forever (explain with reference to the concept of accounting). [2]
(c) Public relations is a propaganda. [2]

(d) The cost of sugarcane is an avoidable cost. [2]

(e) A cheque is an inconvenient method of making payments. [2]

265
Examiners’ Comments
(a) Most candidates answered this question correctly. Suggestions for teachers
Some candidates failed to give a proper justification.  Encourage students to make an
(b) Most candidates answered this question correctly, indepth study to make concepts
however a few candidates lacked conviction in simple. Advise students to read
answering. the question carefully.
(c) Most candidates were unable to answer this question  Practical examples will ensure a
correctly as the term propaganda was interpreted thorough understanding of the
wrongly by many candidates. concept.
(d) Most candidates were unable to justify the concept  Revision of closely related
and therefore answered it incorrectly. concepts will enhance a better
(e) Most candidates answered this question correctly. understanding of topics.
 A clear explanation of the concept
must be done to facilitate a better
understanding.
 Highlight the significance of
writing a cheque

MARKING SCHEME
Question 4.

(Any two reasons give two marks)

(a) FOR: Services are highly variable. A patient cannot get the same treatment in a village hospital
which he can get in a metro hospital.

(b) FOR: Account of a firm are prepared on the assumption that the firm will continue to exist
forever. It is known as 'going concern concept' of accounting. It is on the basis of this concept
that outstanding and prepaid expenses are recorded in the final accounts.

(c) AGAINST: It involves analysing and understanding the attitudes and feeling of different
stakeholders. It requires continuous efforts to create and sustain a good public image of the
organisation.

(d) FOR: Avoidable costs are those costs which can be avoided by discontinuing the business
activity to which they relate. The cost of sugarcane can be avoided by closing down the
sugarcane factory for one year.

(e) AGAINST: A cheque is a very convenient method of making payment. There is no need of
counting and checking notes when payment is made by a cheque.

266
Question 5

(a) Distinguish between a Product and a Service citing suitable examples. [5]
(b) Describe the various steps involved in Personal selling. [5]
(c) Explain the main principles of Accounting. [5]

Examiners’ Comments
(a) Most candidates answered correctly but failed to state Suggestions for teachers
relevant examples.  Highlight the distinction between
a product and a service with the
(b) Most candidates answered correctly with a few help of suitable examples.
candidates writing it in order.  Encourage students to read the
(c) Most candidates answered correctly. Some candidates question carefully before making
wrote all the principles of accounting while few an attempt to answer.
candidates wrote only two principles.  Classroom discussions and role
plays simplify concepts that
enable an easy comprehension of
the topic.

267
MARKING SCHEME
Question 5.

(a) Product: 1. Its tangible, Fully separated from the seller, Quality can be measured and
controlled, It can also be stored, It can be replaced.
Service: It is intangible, Inseparable from the seller, difficult to control or measure, cannot be
stored, cannot be replaced.

(b) STEPS IN PERSONAL SELLING PROCESS:

(i)PREPARATION: First of all a well-trained and motivated sales force is developed. Sale
positions must have knowledge of the firm and its products and services, competitors and their
products and their services, customers and selling techniques.
(ii) PROSPECTING: Prospecting mean locating and identifying the potential buyers. A list of
prospective customers can be prepared with the help of dealers, salespersons, telephone and
trade directories etc.
(iii) APPROACH: In this step, the salesperson makes face-to-face contact with the prospective
buyer. The salesperson should introduce himself, greet the customer and start conversation
with him/her so as to create a good first impression.
(iv) PRESENTATION: Now the salesperson displays and describes the product to be sold. He
should tactfully demonstrate the product and explain it quality, utility, performance etc. He
should explain how the product meets the needs of the customer and arouses his interest.
(v) CONVINCING: At this stage, the salesperson handles the objections raised by the
customer. Objections should be considered as sales opportunities. Instead of arguing or losing
temper, the salesperson should understand the causes of objections and should try to convince
the customer.
(vi) CLOSING THE SALE: The salesperson concludes the sale by obtaining the consent of the
buyer. Some concession may be necessary for this purpose. The salesperson should know
when and how to close the sale.
(vii)POST-SALE FOLLOW UP: The salesperson should check u whether the product sold is
working to the satisfaction of the customer. Follow up action helps to win the trust and faith of
the customer.
The steps in personal selling may be summed up in the acronym 'AIDCAM' which stands for
Attention, Interest, Desire, Conviction, Action and More sales.

c) Main Principles of Accounting:

i) Business Entity Concept
ii) The Going concern concept
iii) Money Measurement concept
iv) Accounting Period concept
v) Matching Principles

268
Question 6
(a) Describe any two stages of Marketing. [5]
(b) ‘Advertising is a Social waste’. Give reasons in support of your answer. [5]
(c) Explain any two causes responsible for the destruction of the ecosystem. [5]

Examiners’ Comments
(a) Many candidates answered the stages of a product life Suggestions for teachers
cycle instead of stages of marketing. Some candidates  Guide students to find examples
answered the stages of marketing but explained of each type so that the topic
incorrectly. Candidates were confused with the develops an interest.
explanation relating to that stage.  Expose students to different
(b) Most candidates answered incorrectly. Some patterns of questions on a topic,
candidates misinterpreted and wrote the advantages of using different phrases. This will
advertising instead. infuse confidence among them
(c) Most candidates answered correctly. Some candidates who in spite of knowing the
incorrectly wrote the effects of pollution instead of the answer were unable to
causes of pollution. comprehend the question.
 Environmental related topics
must be taught and discussed in
class as they form an integral part
of the syllabus.

269
MARKING SCHEME
Question 6

(a) Two Stages of Marketing:

i) Production Oriented Stage
ii) Sales Oriented Stage
i) Product Oriented Stage
ii) Marketing Oriented Stage
iii) Social Marketing Stage

(b) CRITICISM OF ADVERTISING:

(i) Higher prices:
Advertising increases prices of products to consumers because the expenses incurred on
advertisement are passed on to consumers.
(ii) Creation of Monopoly:
Big firms spend huge amounts of money on advertising. Small firm cannot compete with
them and ultimately fail. As a result, big firm become monopolies and use their monopoly
power to exploit consumers.
(iii) Wastages of resources:
Money spent on advertising is sheer waste because it does not add to the utility of products
and services. Most of the advertisement are either ignored or escape the attention of
consumers. Advertisement do not create new demand but only shift demand from one
product to another.
(iv) Deceptive and untruthful:
In order to impress the people, false statements and exaggerated claims are made in
advertisements. As a result, innocent people are misled to buy inferior and even worthless
products.
(v)Extravagance :
Advertising tempts people to buy goods which they cannot afford. They become extravagant
and do not hesitate even to adopt corrupt practices to earn more.
(vi) Vulgarity:
Advertisements exploit emotions and sentiment of people. Several advertisements are
vulgar, obscene and stupid. They are offensive to public decency and insulting to women.
However, this can be checked by enforcing moral and ethical standard in advertisements.
Advertising is used to promote sales of harmful products such as cigarette, liquor, etc.

(c) (i) Population Growth:

Rapid growth of human population is a major cause of environmental problems. It has
caused destruction of natural resource, increasing extinction of species, soil erosion, falling
water table, pollution of rivers and increase of harmful emissions in atmosphere.
(ii) Industrialisation:
Setting up of more and more industries and expansion of existing industrial units is leading
to clearing of forest land and fertile agricultural land. Biological diversity is being lost
forever. Industries produce chemicals, fertilisers, dyes, paints. Industrialization is an
important cause of air pollution and water pollution.

270
 (iii) Dwelling of Business Units:
In order to accommodate the migrating population to industries and commercial cities, more
dwelling unit are being developed.
(iv) Transport:
For transport facilities new roads and railway lines are being constructed. Therefore, roads
that were once croplands, forests and even wetlands are being occupied.
The traditional ecosystems are being altered to build schools, hospitals, community centres,
sports complexes and government offices. Shallow lakes, ponds and other wetland area are
being filled up due to non-availability of land. This not only causes destruction of the
ecosystem but also affects the migratory birds living in the ecosystem.
(v)Tourism:
The development of facilities for tourism, pilgrimage, recreation and adventure are also major
factor responsible for destruction of ecosystem. These facilities are developed in those areas
which have rich natural resources. The eco-tourism no being promoted in India also involve
opening up national parks and wildlife sanctuaries to tourists.
(vi) Mining:
Mining involves removal of minerals and other materials from the earth's crust for use by
people. In India, more than 80,000 hectare of land is under the stress of mining activities.
(vii) Agriculture: Growing of crops involves use of fertilisers and pesticides, creation of
irrigation and drainage facilities and removal of weeds.

(Any five points can be given marks)

Question 7

(a) Explain any two types of interviews conducted by an Enterprise in the selection
of its employees. [5]
(b) "Real investment in today's society is not in plant and machinery: it is in people".
With reference to the above statement, examine the importance of Human resources
in a business organisation. [5]
(c) Distinguish between a cheque and a Demand draft. [5]

271
Examiners’ Comments
Suggestions for teachers
(a) Most candidates answered correctly. A few candidates  A comprehensive understanding
got confused with the types of test and wrote about of topics must be carried out on a
Aptitude and Dexterity test. regular basis.
(b) Most candidates were unable to answer correctly. Some  Instruct students to read the
wrote the features or the functions of Human resources question carefully before making
in a business organisation rather than the importance. an attempt to answer.
(c) Most candidates answered correctly. A few candidates  All differences should be taught
got confused on the concept of a Demand Draft. with the help of examples, as it
not only results in conceptual
clarity but also helps in better
comprehension.

272
MARKING SCHEME
Question 7.

Selection or employment interview is a formal conversation between a candidate and the

employer to judge the former's suitability for a job.
The following types of interviews are used in selection of employees:
(i) Structured or Patterned Interview:
This interview is not planned in advance. The questions to be asked and the time to be
allowed to a candidate are decided in advance. This is the most common type of selection
interview.
(ii) Unstructured or Non-Directive Interview:
This interview is not planned in advance. The questions to be asked and the expected
reactions are not decided. Candidates are asked their views on relevant matters. This type of
interview requires experienced interviewers.
(iii) Group Interview:
In this interview, a group of candidates are interviewed at the same time. They are given a
problem for discussion and candidates express their views on the problem. The interviewers
judge the views and initiative taken by the candidates.
(iv) Panel or Board Interview:
In this type of interview, the candidate is interviewed by a panel or board of selectors.
Different interviewers ask questions on different topics. The candidate is judged on the basis
of combined rating by the panel.
(v) Stress Interview:
The purpose of this interview is to see how candidates react to awkward questions and difficult
situations. The interviewer deliberately adopts a hostile attitude by asking questions rapidly, by
criticising the candidate, etc. The reactions of the candidate to stressful conditions is judged. If
the candidate keeps his cool he is selected.

(b) Human resource management can help an enterprise in achieving its goals more efficiently
and effectively in the following types.
(i) Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotional policies.
(ii) Developing the necessary skills and right attitude among the employees through
training, development, performance appraisal etc.
(iii) Securing willing cooperation of employees through motivation, participation,
grievance, handling, etc.
(iv) Utilising effectively the available human resources.
(v) Ensuring that the enterprise will have in future a team of competent and dedicated
employees.

273
 (c)
CHEQUE BANK DRAFT

i. A cheque is drawn by a person A bank draft is always drawn by a bank.

ii. A cheque can be drawn payable to bearer A draft cannot be made payable to bearer
iii. In case of a cheque the person who In case of a draft commission is paid in
receives the payment has to pay collection advance by the sender of money.
charges.
iv. A cheque is dishonoured if the fund in The draft amount is taken in advance by
the drawer's account are insufficient the bank. There is no question of a draft
being dishonoured.
v. The payment of a cheque can be The payment of a bank draft cannot be so
stopped by giving a written notice to easily stopped.
the concerned bank.

Question 8
Write short notes on:
(a) Persuasion and Empathy as elements of Public Relations. [5]

(b) Benefits of Training to a Business Enterprise. [5]

(c) Uses of Income and Expenditure Accounts. [5]

Examiners’ Comments
Suggestions for teachers
(a) Most candidates answered correctly but a few candidates
 Classroom discussions must be
failed to write a proper explanation.
supported with active role plays
(b) Most candidates answered correctly. A few candidates
and question answer sessions.
however wrote the subheadings only.
 Encourage students to write
(c) Most candidates answered correctly. Some candidates
answers pointwise to enable a
however incorrectly wrote on profit and loss instead of
better understanding of topics.
surplus and deficit.
 Adequate revision must be
conducted in class to bring about
clarity in answering questions.

274
MARKING SCHEME
Question 8.

(a) Persuasion : means convincing somebody to believe in some idea or to take some action in
favour of Business enterprise
Empathy: means looking at things and events from other’s point of view.

(b) (i) Trained employees can get employment more easily and quickly.
(ii) Training helps employees to do the job more efficiently. They can earn more through
higher productivity.
(iii) Training increases adaptability of employees to new methods and new technology.
(iv) Training helps to improve the motivation and morale of employee.
(v) Training increases the chances of promotion of employees.
(vi) Training improve mobility of employee from one organisation and place to another.

(c) USES:
(i) Income and Expenditure Account shows the surplus or deficit arising from the
activities of a non-trading concern during a year.
(ii) It shows all items of income and expenditure. With the help of this information, the
organisation can take steps to increase income and reduce expenditure.
(iii) It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
(iv) It fulfils the statutory requirements because non-trading organisation are legally
required to prepare it.
(v) It is prepared on accrual basis and therefore include all accrued and outstanding items.

Question 9
Case Study
With a glorious history of more than 50 years blended with a futuristic outlook, The Presidency Bank
has become a leading financial institution. The Bank with its customer centric approach values
transparency and nurtures knowledge and learning. It believes in the quality of its people and their efforts
and therefore takes continuous initiatives for hiring the best talent and ensuring their development,
motivation and growth through intensive training.

The Bank offers excellent career opportunities to dynamic individuals. In addition to exposure to a
variety of banking segments, the Bank also provides personal growth opportunities for its employees.

275
With reference to the above:

(a) Suggest a suitable source of recruitment for the Bank. Give reasons to support
your answer.
[5]
(b) What Employment tests should be conducted by the Bank to select its employees? [5]
(c) What type of Training methods should be adopted by the Bank to train its
employees? Why?
[5]

Examiners’ Comments
(a) Most candidates answered correctly. However the Suggestions for teachers
reasons were not appropriate and a few candidates  Important topics must be
wrote vague answers. comprehensively discussed in
class and adequate practice in
(b) Most candidates wrote the types of training instead answering must be ensured.
of tests that are conducted.  Encourage students to revise
(c) Most candidates answered incorrectly with a concepts relating to types of
misinterpretation of training methods with that of employment tests. Advise
types of training. students to read case studies
thoroughly and understand them.
 Classroom teaching and
discussions must involve
conceptual clarity as to what is
being questioned with methods
and types which have a different
perspective of answering.
Regular practice and correlation
with the concepts from the topics
already taught should be
undertaken.

276
MARKING SCHEME
Question 9

(a) Advertisement through Newspapers, Internet etc :

i)It attracts a larger number applications.\
ii)Secrecy is maintained through applications vis P.O ( Post box) ( Any other source with
convincing explanation.) [5]

(b) Employment Tests: i) Proficiency Tests:

i) Achievement Tests
ii) Intelligence Tests
iii) Dexterity Tests
iv) Aptitude Tests
v) Personality Test
vi) Attitude Test ( Any two with explanation) [5]

(c) Training Methods:

i) On the job training is preferred (with explanation)

Question 10
Case Study
Mbees Tec Ltd. has added its latest addition the Zt and Zht smartphones to its smartphone family. These
have created a record of sorts by selling more than 1lac phones in three days since they were launched.
However Mr Pawan, CEO of Mbees Tec Ltd, believes that the Company could have bettered their sales
if the supply was met as per the demand for its exciting new range of smartphones.
Mr. Pawan also added that the company stands to deliver on its promises and hence the production
capacity has been increased to meet the ever rising demands of its newly launched smartphones that have
unmatched features at highly competitive prices.
With reference to the above:
(a) Explain the pricing strategy the Company has adopted to sell its new smartphones. [5]
(b) Suggest a suitable media to advertise the newly launched smartphones of Ms Mbees
Tech Ltd. [5]
(c) Explain the stage of the product lifecycle of the smartphones as mentioned in the
above case study with the help of a diagram. [5]

277
Examiners’ Comments
(a) Most candidates got confused and wrote the wrong Suggestions for teachers
pricing strategy. Some candidates were unable to  Conceptual clarity must be made
explain due to a lack of understanding. in all topics through intensive
(b) Most candidates answered correctly. Some revision. Important concepts and
candidates however were unable to explain their commercial terms must be given
answers in a comprehensive manner. due emphasis with regular
(c) Most candidates wrote all the stages of marketing. practice and examples. Develop a
A few candidates drew incorrect diagrams with logical and analytical outlook.
some unable to explain the stages.  Topics must be highlighted in
class with adequate revision and
classroom discussions. Case
studies should be read carefully.
 Regular practice is essential
through question and answer
sessions and paper solving
techniques. Well planned
assignments and thorough
revision would instil confidence
among students.

MARKING SCHEME
Question 10.

(a) Parity Pricing / Penetrative pricing( can be used with an explanation)

(b) Television/ Internet Media may be used since product can be demonstrated to new users.
(c) Growth Stage: Sales grow rapidly, profit increases, possible extension of markets
Diagram PLC .

Topics found confusing/difficult:

- Discounting of Bills of Exchange

- The cost of sugarcane is an avoidable cost
- The importance of Human resources in a business organisation. “Real investment is not in plant
and machinery, it is in people”
- Money cost and Real cost
- ‘Advertising is a social waste’ Given reasons
- Causes responsible for the destruction of the ecosystem
- Case study employment test and training methods
- Case study pricing strategy and stage of product lifecycle with diagram.

278
Suggestions for students:
- Read case studies thoroughly and correlate them with the topics learnt.
- Learn and revise each topic on a regular basis.
- Follow the instructions given in the questions carefully.
- Read the question paper carefully and underline the main points.
- Write answers to the point.
- Justify correct or incorrect statements with a valid reason.
- Write differences in a tabular form
- Understanding key terms
- Revise answers before submitting answer scripts
- Question number and sub-questions should be indicated clearly.
- Be clear with the concepts, learn with the help of examples, make your own notes.
- Underline main points.
- Develop a logical and analytical skill for questions on case studies
- Practice diagrams.

279