SEMESTER-2 COMMERCIAL APPLICATIONS Ars > is one of the internal sources of ‘Maximum Marks :50 i) Time Allowed : One and a half hours recruitment y Answers to this Paper must be written on the paper (a) Advertisements (b) Transfers provided separately. (c) Gate hirings (d) Education institutes You will not be allowed to write during the first (cioReveipt and Payment account is a_____accoun. 10 minutes (a) Real (b) Nominal This time is to be spent in reading the question paper. (c) Personal (a) Trading (viii) Making consumers aware of their rights and duties ig The time given at the head of this Paper is the time allowed for writing the answers. | Attempt all questions from Section A and any four | (a Consumer education (b) Value education (c) Industrial Relation (c) People Relation questions from Section B. i The marks intended for questions are given in isan elimination process brackets [). (a) Recruitment (b) Selection (co) Training (@) Education SEC HONEA ‘Asking for cash memo for the item purchased is (Attempt all questions) (@) Consumer education Choose the correct answers to the questions from the (b) Consumer awareness given options. (Do not copy question. Write the correct (c) Consumers’ duty 10) (@) Consumers’ requirement answer only.) 0 shows the financial position of the SECTION-B mnisati a eee (Answer any four questions from this Section) (a) Trial Balance () Profit and Loss Account (i) State any one point of difference between Recruitment (c) Balance sheet (d) Income and Expenditure account and Selection. by Human Resource Management is a_i) Write a short note on Empathy as an element of Public oriented function. Relations. 2 (a) Job (b) People (iii) Write in short about any three Consumer Rights, (3) (irAdoney) oe (iv) Write three uses of ‘Receipt and Payment Account. di) is a Banker's Bank. (@) Commercial Bank (b) Agricultural Bank 3 (©) Exchange Bank (a) Central Bank inction ensures that the policies, procedures and actions of the organisation are in public Question 3 (i) State any one point of difference between ‘Receipt and Payment Account’ and ‘Income and Expenditure interest. Account’. (a) Financial Management (ii). What is Saving Deposit account? al (b) Public Relations (iii) Write in brief about any three features of Human i. Po foe rere _ Resource Management. 6 erformance Appraisal (iv) Write any three ways by which Environmental Values (0) In is type of count, no chee bok issued tthe Og tlhe con te developed in people." ial (a) Fixed Deposit account Perens (i) Justify either for or against by giving a reason for the (b) Open account following statement. ‘Balance Sheet is an account’. |>) (c) Saving Deposit account (d) Current account (ii) Mention any two natures (characteristics) of Public Relations. i}yr ar thre attages of opening a bank account, (3) wr eae 3 ne AOWING. 31 an BR rac 2 rou erie gress Interne ses red Interview ee eather for or against by giving a reason for the pasty eeatemnt. Tera source isan incomplete se pecruitment i eer ry 00 factions of Human Resource agement rh pe tree points of diference between Central Bank Ad commercial Bank BI tat is Food Adulteration? Give any tv examples. 3) ote about any f00 Direct Methods of Reeruitment. pecrite Employee Relations as a scope of Public eations ta < Menton three circumstances tnder thick a bank can refuse payment or dishonour a cheque, 131 «Mention any three features ofa Balance Sheet. [3] urhan Company is Asia’s largest online home service plaorm, Launched in 2014, Urban Company today SECTION-A Aaswer ) (¢) Balance Sheet Explanation : The balance sheet is a statement that shows a company’s financial position at a specific point in time. It provides a snapshot of its assets, liabilities, and owners’ equity. (b) People Explanation : HRM involves working with people at an individual level and in groups and motivates people to develop their true potential along with provide fair wages and incentives that boosts their morale and ensures their loyalty. \ @) Central Bank Explanation : The central bank acts as a bank ‘or all the commercial banks in the country. It holds their cash reserves, lends them short -term funds and provides them the central clearing and Temittances facilities. It also provides assistance ‘ financially unsound banks and/or make fair ~Ninding up processes. piven due to change in the present syllabus E mgapore, the UAl Sine el ity services ~ operates. in. India, Australia and the Kingdom of Saudi Arabia, TH? ustomers book reviable and Wigh-aualld ST Benuty treatments, massages, haircul POM Ty ag Ihandtymen, appliance repair, aus pest cenit more ~ delivery by trained profession! ty millions of professionals worldwide 10 deliver at home like never peed fie ee ban Company provides a platform tied ond apertenced professionals to connect ae users looking for specific services. Al the professio © though experienced and skilled, undergo inten training modules before being allowed to It TT services on the platform. Once on the plaifor, Urban Company's match-making algorithm identifies professionals who are closest to the users’ requiremen ‘and available atthe requested time and date. In reference to the above case, answer the following questions: () What type of Bank account does Urban Company have? Why? ii). Explain hou, the professionals are recruited by Urban company. ii). Write about any three External sources of Recruitment. (iv) What services does the Urban Company offer? (i) (b) Public Relations Explanation : Public relations are designed to help build trust and credibility with people that are important to the organisation. () (© Saving Deposit account Explanation : No cheque book is issued if the savings account holder does not have a minimum, amount in the account or is a minor. (vi) (b) Transfers Explanation : Transfers involves shifting already employed people in an organisation from one job/department/branch to another without any promotion or change in their position or grade. (vill (@) Real Explanation : Receipt and payment account is a summary of cash receipts and payments. It begins with the opening balance of cash and bankin; transactions and ends with closing balances «f cash and banking transactions relating to the past and current accounting period. Hi considered to be real account. snes Bis (viii) (@) Consumer education Explanation : Right to consumer education ensures that consumers receive or can easily eefind information about the products, services, businesses, ete through formal education, consumer awareness campaigns conducted by third-party entities which are private and have less influence/interference from the government. (b) Selection Explanation: Selection involves identifying the right person for the right job from a pool of prospective job seekers created during the recruitment process in the organisation. Candidates are eliminated at each step of selection process. » © Consumers’ duty Explanation : It is a consumer's duty to insist on a cash memo while making a purchase as it can be presented as evidence of sale/purchase while filing any complaints or expressing any grievance about the product/service. SECTION-B (Answer any four questions from this Section) Answer 2 ) (any one) Basis Recruitment | Selection Focus | It focuses on Tt focuses on attracting eliminating potential unsuitable candidates for _| candidates at vacant positions | every step for in an organisation | the specific job in an organisation Meaning | Itimplies It makes locating, a choice maintaining between and contacting | candidates by the sources of |_| preference or manpower performance by matching the job requirements with skills and experience Obligation | There is no Contract of contractual the service obligation is made involved following selection (ii) Empathy means the ability to sense and imagine what other people think or feel thus, understanding people's feelings and thoughts from their perspective. It enables an individual to be sensitive towards other's feelings, experiences, attitudes, problems and/or expectations. Accordingly. Empathy as an element of Public Relations (PR) ensures that organisations are perceived as caring towards their customers, vendors, etc, to gain respect and loyalty. j improves teamwork within an organisatior and helps avoid/resolve conflicts and foster innovation. Anempathetic PR team can determin, or ereate content about the organisation the caters to the needs of their audience and connec with their concerns, (iii) The three consumer rights are as follows: 1. The Right to Information: In this consume, hhas the right to be informed about the quality quantity, potency, purity, standards and prigy of goods/services through proper display g, contents, description of the product along with proper trademarks and compliance, shown on the packaging ‘The Right to Choose: It means that consumers should have access of a variety of goods) services at fairly competitive prices 3. The Right to Seek Redressal: In which the consumer can easily seck redressal for the grievances caused by unfair or restrictive trade practices or unscrupulous exploitation of ‘consumers. (iv) The uses of Receipt and Payment account are as follows: 1. The total receipts and the total payments are easily available in the same place. 2. This account provides the basis for verifying the company’s cash book. 3. This account ascertains the closing balance of cash at the end of the year. Answer 3. (any one) Basis | Receiptand | Income and Payment Expenditure Account Account Nature Itisa summary | Itisa summary of cash of expenditure transactions for a | and income like period and itis a | trading and real account. | profit and loss | account and it | isanominal | account. | Objective | Itis prepared to | Itis prepared show cash and _ | to show the net bank receipts | results of the and payments | operations to to determine the | derive surplus closing balance _| or deficit. | of cash and bank. Capital [No distinction | All expenses and between capital | and incomes of Revenue |and revenue _| revenue nature Receipts | receipts and are recorded on payments, accrual basis.ry cavings account is an interest-bearing deposi unt held at a retail/commercial Dank that jilows anaccount holder to deposit and withdraw “oney digitally or in person while also earning | Bnodest interest. A savings bank account is | A faiered to be safe and reliable option to store Soney and easily make day-to-day transactions. yeatures of Human Resource Management are as follows: 4, People-oriented ~ This process brings people and organisations together and consists of yple-related functions like training and development, performance appraisals, ete Pervasive - It is pervasive and makes no distinctions across alll levels and categories of people, management and operational staff. Challenging — It is a challenging function as it ensures that time and money is well-spent on the right quality and quantity of personnel in an organisation answer This statement is wrong. Balance sheet is not an account but a financial statement that shows the financial position of the business on a particular date. It reports the company’s assets, liabilities and shareholders’ equity at the end of the financial year |i) The characteristics of Public Relations are as follows: 1. Itis an ongoing activity as it involves engaging and informing the public about the product/ service It aims at obtaining acceptability about the business's products and services from the public in order to secure their cooperation and support. (i) Advantages of opening a bank account are as follows: 1. A bank account facilitates a safe custody of money which allows the account holder to deposit and withdraw money whenever they ‘want depending upon the type of account. ‘Abank accounthelps the accountholder to make payments to third-parties either in the form of cash, cheque or any digital means especially through a savings and current account. ‘A bank account can enable an account holder to obtain advances and loans for personal use, for buying a home, car or consumer durables. Answer 5. \) The given statement is justified, Internal source is an incomplete source of recruitment as it limits the choice of selection instead of tapping a large diverse pool of potential candidates in the market ii) soivea Papers BD ay also involve extra sation. It m: ee r internal candidates costs in imparting training fo who may ed ve reuitable for new positions: Functions of Human Resource Management 7° as follows: 1, Human Resource (HR) PI a involves planning for and determining he number and type of employees needed 10 accomplish organisational goals. Accordingly, it involves conducting research by collecting information and analysing the current and future HR needs and forecasting changing values, attitudes, and behavior of employees and their impact on the organisation. tanning ~ HRM 2. Performance apprai - HRM involves conducting performance _ appraisals of employees to review their job performance over a period of time and highlight their strengths and weaknesses to improve on their future performance (iii) (any three) Basis | Centralbank | Commercial bank Meaning |A Central Bank | A commercial jis an apex, Bank is a reserve bank financial coramonetary | institution authority that accepts that manages _| deposits, currency, offers checking formulates account monetary services, makes policies and various loans, regulates the and offers banking system | basic financial of the country. | products like certificates of deposit (CDs) and savings accounts to. individuals and small businesses. Profit It does not It exists for motive | exist for profit _| profit making making. for its owners. Right | Acentral Bank | The toprint | has the sole right | Commercial and issue | to print and Bank does not currency |issue currency | have right to notes —_| notes. print and issue currency notes.4 [Cate ui) The circumstances lander which abank cane coe ear |e | "prac Se institutions and | country. 1. Whon the cheque is overrien hie the government. customer has Balance lower than they Example [Reserve Bank | ICICI bank, Wet on, rere of India is the | Kotak 2. When the signature is absent oF does oy Central Bank of | Mahindra Bank, match with the specimen signature ope India. State Bank of the bank. India, HDFC 3. When the amount veriten in words ay Bank, IDBI figures do not match with each other, bank, ete v) Features of a Balance Sheet are as follows: Food adulteration refers to the act of intentionally debasing the quality of food by either adding or replacing the food substances with undeclared alternative components, or by the removal of some valuable components. This is usually done to lower the cost or increase the bulk of a given 1, The preparation of a Balance Sheets not og particular period but for a particular date 2, It reflects the nature and value of assetg labltes and the postion ofcaptal ona gine date. food product. 3. It can be prepared, taking into ac Examples of food adulteration are as follows: the debit and credit balances of the (any two) and personal accounts, a8 per trial balan, wherein the real account's debit balance i an indicator of the asset of the firm, while hy credit balance of the personal account is an 1. Adding chemicals to fruits for faster ripening 2. Mixing peanut (groundnut) oil in almond oil as peanuts have the same texture and smell as almonds [but peanuts are cheaper than almonds] . Mixing rotten apples with good apples to make apple juice. Direct methods of recruitment are as follows: 1. Gate hiring - Job seekers assemble outside the premises of the organisation where a notice is placed on the notice board specifying details of the job on a specific date. Job seekers are selected on the spot and given a job immediately. Campus recruitment ~ Campus recruitment involves organisations creating a close liaison with educational institutions like colleges, technical and professional institutes for recruitment of students with select technical and professional qualifications. indicator of liability. Urban Company will have a current account (for businesses). A current account can enable Urban Company to carry out their large volume of transactions seamlessiy, on a day-to-day basis due to following reasons: 1. A current account does not limit the number of transactions and can transact any number of times at whatever frequency the company needs. 2. It keeps personal and business assets separate making it easier to track the cash inflow) ‘outflow easily and to organise the financial data during tax filing. 3. The bank can offer free services like Demand Draft, NEFT and RTGS transactions, Pay Orders, etc to enable unlimited withdravrals and deposits, As the case suggests that the experienced ) Employee relations is relationship between the management and employees, and the Public Relations (PR) facilitates a two-way channel between them. It sets a good foundation of good employee relations through sound personnel policies and their impartial implementation. It enables employees to express their opinions that affect their interests and the policies are accordingly, drafted by the PR for the management. professionals underwent intensive training modules before listing their services on the company’s platform, it can possible imply that the professionals were given a step-by-step Programmed instruction training method, This is a systematic method for teaching job skills by Presenting questions or facts thus allowing the trainer to respond and give the professionals immediate feedback on accuracy of their answers. Programmed instructions may have beenre ieoulsed by Urban Company as per ind cern Copy uty paisne, sigorithm identifies propessionals gre onest 10 BETS requsement. ™ pera) srces of recruitment include the plowing: 1 Placement agencies ~ In this recruitment sources, businesses outsource the whole or few parts of recruitment process to an HR consultant or agency. This agency charges a certain fee for recruitment services for their readily available sources of qualified Y's and make the selection pi records of the organisation and could be called ‘upon in case of new vacancies or openings. relatives. jy) Urban Company is a” platform that connects customers W professionals who have &xP® Services like pest control, beaut or repair, installation OF replacemer wnline home service ° jth skilled plumbing, ape ical work, etc. It is a website and am i app on which a customer registers and selects professionals for the type of service needed in aro homes, Customers can select the professional ao per their experience and ratings assigned fo them, They can also select the date and time slot for booking the service and make online payment through the website/app after the work is done as per their expectations and satisfaction.COMMERCIAL APPLICATIONS orate 2020 SECTION-A (40 Marks) (Attempt all questions from this Section) State one difference between each of the following: ‘Marketing and Selling 1 Skimming Pricing and Penetrating Pricing (2) Central Bank and Commercial Bank \) Recruitment and Selection Fixed Cost and Variable Cost State two essentials of a good brand. 2 Mention any two components of product mix. What do you mean by Walk-in-Interview?** Why is Human Relations an important element in public relations? \ (©) Why has tourism led to the destruction of the ecosystem? I (0) Mention any two features of Receipts and Payments Account. 2 State any two advantages of external recruitment. (2 (c) Mention any two features of a Balance Sheet. 21 (c) Explain any two disadvantages of advertising. 2) (©) What do you mean by Semi-fixed cost? Give an example 22) Question 4, Give a reason either for or against each of the following statements: ») Bank draft cannot get dishonoured, 2 (bo) Internal sources of recruitment restrict the choice available to the management. (2) (©) It is marketing which has converted yesterday's luxuries into today's necessities. (2) d) The scope of Public Relations is narrow. 21 (c) “The capital provided by the owner is treated as a liability of the firm”. 21 Answer with reference to the concept of Accounting. SECTION-B (60 Marks) (Attempt any four questions from this Section) Question 5 (0) Explain the five features of advertising. b) Explain any two features of marketing. 15] 15] given due to change in the present syllabu Explain any five qualities ofa good salesman, Question 6. (a) Explain any five reasons for the increasing importance of service. 5 (o) Briefly explain the money measurement principle ang the dual aspect principle of accounting. . Explain any five functions of the Central Bank. 5) What do you mean by the development function of Human Resource Management? Discuss its various activities. fet Discuss any vo reasons for the rapid growth of Public Relations. (c) What is meant by Recurring Deposit Account? 5] Explain any four agency functions of the Commercial Bank. (0) Explain: (51 (The Chernobyl Disaster (i) Chipko Andolan Movement Explain any five steps involved in the selection of employees. (©) Explain Vestibule training and the Lecture method of training. 3] CASE STUDY Mr. Surinder Singh, CEO of a retail chain of shoe stores company, planned out to have workforce - both in administration and management - as a mix of experience and fresh blood. He made a thorough revision of responsibilities of the administrative and management staff by way of transferring and creating promotion for potential employees. He approached technical and management institutes for recruitment Of fresh blood managers. They were offered jobs on completion of their studies. He contacted the heads of different management institutes and recruited the employees from there for Junior Manager's post. In framing the transfer policy, Mr. Singh took the Principle of balanced workload at different branches ofthe organisation forthe improvement of quality of service. Promotion was given to the experienced and existing employees above forty years of age after reviewingnecessary, he instituted training program wie 0 ope up wih the Tatest requirements of J ganization. Some of these employees were sent to ah tre necessary higher qualifications from the MBA fags prt-time evening programs. wiejy appointed employees from management and NPjmca institutes were put into in- house orientation semng fr an overall understanding of the nature P work and its relation to the nature of business. A oematic orientation programme enabled the new Sve to adjust quickly tothe new surroundings le to rr se fy Mr. Singh for the recruitment of fresh blood <. Explain the method involved is) managers What is meant By refresher training? (Write three ints) Paingush bekoeen ‘wo points) What sort of programs for the newly recruited and caisting employees have been initiated for their 51 Where @ ] (b) transfer and promotion. (State © improvement? Solved Papers mance appraisal and potential appraisal, Question 10. ‘Amazon and Flipkart, India’s tivo leading e-commerce marketplaces are engaged in a fierce price war: ‘Amazon continues to offer aggressive discounts on popular models such as the Apple iPhones, Samsung smartphones and television sets even after its own sale got over in order to match the offers in Flipkart’s sale ‘and intends to continue doing this till Flipkart’s sale ends, according toa senior executive with the company. With reference to the above: ‘Name the type of non-traditional marketing Amazon and Flipkart are engaged in. Explain briefly the non- traditional marketing adopted by Amazon and Flipkart What kind of pricing strategy are both Flipkart and ‘Amazon following? Explain briefly the pricing strategy adopted by Flipkart and Amazon 651 Explain the Introduction and Decline Stage of Product Life Cycle. 51 Fu Ys ANwees _ SECTION'# S.] Basisof | Skimming | Penetrating «) The difference between Marketing and Selling is Disiecerte | inPicing Rrielng, eae Inthe The penetrating ) Following are the two uses of Income and Expenditure Account : 1. tis used to show the surplus or deficit of the non-profit organisation after a particular time period, generally a financial year. 2. It shows all the revenue receipts and expenditures related to the particular financial year whether they are outstanding or not. (c) The four elements of Price Mix are : 1. Credit : Credit refers to the transfer of goods in retum of a promise to pay an equivalent value on demand or in future. 2 Discounts : A firm takes various steps to increase their sales so as to improve their cash position. One of the way to accomplish it is by giving discounts to the customers. This is a kind of relaxation in prices. 3. Allowances : The manufacturer may offer promotional allowances, eg, advertising allowances, window display allowances, free samples, free display materials, free training in sales demonstration. 4. Price policy : Pricing policy refers how a company sets the prices of its products and services. Different types of pricing policies followed by the firm include : Cost based pricing, demand based pricing, value based pricing, and competition based pricing. (a) Following are two harmful effects of global warming : 1. Global warming has disastrous effects on the environment such as melting of polar ice, changes in amount and pattem of rainfall, rise in sea level, frequent floods and droughts, hurricanes and typhoons. 2. It causes large-scale of extinction and have serious impacts on human lives by affecting fresh water availability, agricultural yields, increases in the spatial and quantitative ranges of disease ‘Recurring Deposit Account ‘a method of investmen The Recurring Deposit is a meth stment Where fixed amounts of installments are deposited at | | regular intervals of time into RD account. | Recurring deposits are considered beneficial for people who are having a regular income and want to save money for long-term purposes. vectors, as well as on economic infrastructure such as energy, transport and industry. (e) Vestibule training : Vestibule training is also knownas “near the job training”. New workers are trained with special machines and equipments in, a separate location near the actual place of work, under the practical work situation. This place is called a vestibule and the actual work situation is duplicated here. 2) Following are the two merits of external source of recruitment : 1. Wider Choice :Selection from external sources facilitates the choice of personnel from among a large number of applicants. The enterprise can carefully weigh the plus and minus points of all the candidates and then select the best. 2. Fresh Outlook : External recruitment provides an opportunity of a fresh outlook on the industry that a company may need to stay competitive. Bringing in fresh talent from the outside can help in developing skills set of the organisation. (b) Abank draft is a type of cheque, drawn by a bank either on its own branch or on another bank in favour of a third party. It is the most convenient and the cheapest method of remitting money from ‘one place to another. The draft is payable only on demand and is therefore known as demand draft. ‘It can either be encashed on the counter or, if itis crossed, it can be collected only through a bank It is payable to the person named in it or to his order. Bank draft does not get dishonoured. In many respects, bank drafts are similar to cheques as both are dated and both can be crossed. () Ethics refers to the conduct that is right or wrong, according to the accepted standards or principles. Business ethics are moral principles that guide the way a business behaves. Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice which is beneficial for all the stakeholders. (a) Following are the reasons for growing importance of Public Relations to business enterprises. {Improving the image of the organisation : Public relations plays a vital role in the achievement of specific objectives at all levels in an organisation's work by communicating an effective message. tt is an excellent and cost effective method of improving the image of an organisation and its product: 2. Pervasive function : The need for public selations has increased manifold due to the enormous growth in business. There is a need for public relations in every field. It is an indispensable tool in today's management of both commercial and non-commercial organisations, It is an essential service to anybody who has ideas, products and a cause to be promoted, Following are the two general utilit i commercial banks : ity functions of 1. They provide safety vaults or lockers for the safe custody of jewellery, valuable documents and other precious possessions. ‘of their customers. 2 They issue letters of credit, circular notes, drafts and traveller's cheques which facilitate purchases of goods in distant places, Answer4. (a) Against : A Receipts and Payments Account is a real account as itis prepared at the end of the year from Cash Receipts Journal and Cash Payments Journal. It does not include non-cash items like depreciation, outstanding expenses or accrued income. (b) For : There are some costs which vary but not in direct proportion to changes in the volume of production and thus are alled semi-variable costs. Such costs contain fixed and variable elements. Because of the variable element, they fluctuate with volume and because of the fixed element they do not change in direct proportion to output. Semi variable or semi fixed costs change in the same direction as that of the output but not in the same proportion. Depreciation, repairs, etc., are the examples of semi-variable costs. (0) For: Human resourceis the most valuableresource of an organisation. It is the only active resource an organisation has otherwise all of the other resources are non-living. It is human resource which utilizes other resources to produce goods and services. They are the face of the company in any service industry. It is only human resource that generates revenue for the company. So, they are the foundation on which an organisation exists, (a) Against : Company need not to pay for its Publicity to the media owners as it is non-paid form of promotion done through newspaper, e solved Papers ASU journals, radio, etc. Itis relatively a minor eons promotion because the seller has no control ov what the media will mention. _ For : A business and a business person are treated as two different and distinct identities although that business might be wholly owned by that business person. Accountants wan that the business unit to be accounted for must be identified. This concept is applied to all forms of business organisation for the following reasons: 1. To ensure proper use of funds by the owners. 2. To ascertain the success of the business. 3. To arrive at a solution for the problem of separating business transactions from the personal transactions of the owner and to enter into transactions with outsiders in the name of the firm. SECTION-B Answer 5. (a) Difference between Product and Services Character Product Services h.Tangibility [Products | Services are are tangible. | intangible. They can —_| They can only be seen, be felt during touched, felt | the process of during the | consumption. process of consumption, |2-Separability | Products are | Services are separable —_| not separable fromtheir | from their producers or | producers or providers. _ | providers. {3.Storability | Products can_| Services bestored. | cannot be stored. |4. Participation | Customers | Services do not cannot be Participate _| performed in in the the absence of production of | the customers’ products. | active Participation. 5. Transfer of || When a In case of Ownership | productis _| services, there sold, the title | is no transfer of ownership | of title of moves from | ownership. the seller to Ithebuyer. | |The following strategies may be employed in the introduction stage: 1, Proper advertisement and publicity of the product. ¢., money back guarantee, 2. Attractive gifts to customersas an introductory offer. 3. Selective distribution and attractive discount to dealers, 4. Removing technical and other deficiencies in the product. 5. Skimming the cream pricing policy. ‘The following strategies may be adopted in the growth stage: 1, Heavy advertising to create brand image and to stimulate sales. 2. Expanding distribution channels to make the product available wherever demanded. 3. Introducing new versions of the product to cater to the needs of different types of customers, 4. Greater emphasis on customer service. 5. Keeping the price at competitive levels. The Accounting period concept : This concept requires that the life of business should be segregated into equal parts which are termed as Accounting Periods. This concept requires consistency of accounting periods. It helps in estimating the profit or loss and financial position of a business for a particular period. To study the results of a business, the life of a business is divided into short periods of equal length. Each such period is known as accounting period. Generally, an accounting period is one year. Hence, an income statement shows the financial performance over one year while a balance sheet shows the financial position at the end of a year. This year may be either calendar year or financial year. The accounting period starts from Ist April and ends on 3ist March. It is an artificial time period for preparing accounts. Direct selling is a method of marketing and selling products directly to the consumer without involving any other participant in the distribution channel. Direct distribution is more suitable than indirect channels of distribution in the following ways: 1, When product is technically very advanced: When the firm makes very complicated and technically advanced products, it likes to sell those products through direct selling. This way, it will be able to make the customers understand the product. 2. When firm wants to give personalized services to its customers : When a firm wants to provide highest degree of services to its customers ‘and does not want to rely on intermediaries then direct selling is the best way to deliver personalized services. 3. Cost Benefits : Direct channel of distribution cuts down the margin of wholesalers, retailers and other intermediaries, thereby lowering the final cost of product and providing cost benefit to both the producers and consumers. 4. Faster response : Direct marketing channels enables manufacturer to directly contact with consumers. This helps consumers as well as manufacturers by creating direct link. Consumers can easily contact manufacturers regarding ‘queries and manufacturers can easily understand the needs of consumers. Thereby, direct selling enables faster response. (b), Refer to ICSE Paper 2020, Answer Q. 5(¢). (0) @ Consumer rights : Consumer rights are very important for all the consumers. These rights are well-defined. There are agencies, like the government, consumer courts and voluntary organisations that work towards safeguarding them. Consumers must be well aware of their rights. The consumer rights are as follows : 1. Right to Safety. 2. Right to be Informed. 3. Right to Choose. 4, Right to be Heard. 5. Right to Seek Redressal. 6. Right to Consumer Education. (ii) Direct labour cost : The labour which takes an active and direct part in the production of a Particular commodity is known as direct labour and the cost incurred on them is called direct labour cost. Direct labour costs are specifically and conveniently traceable to specific products. eg., A carpenter's wages. Indirect labour cost : Labour employed for the purpose of carrying out tasks incidental to goods produced or services provided is indirect labour and the cost incurred on them is called indirect labour cost. Such labour does not alter the composition, construction or condition of the Product. It cannot be easily traced to specific units of output. Wages of storekeepers, timekeepers, foremen, salesmens’ salaries, directors’ fees, etc., are examples of indirect labour costs. (b) Refer to ICSE Paper 2020, Answer Q. 6(c).iN On ara machine, 2E* emplone, SHRiNg invaives at a machine or work 3 Specific or laboratory. The workerse ait the shop, ao? engaged in the w; i * is trained ork by uti ined situation for the pf CY Utilisin the actual work straight away under «is Biven the work senior employee and ng Team givsion of some 1. Coaching or Mentoring : In - under him, supervisor instructs ang Buldes ne as, the new employee learns the ins and soti#inee. The under the gui idance of his su, wuts of the job improves relatio; i sor. This me his supervisor. Bor up, between = visor. But this method only when the supervisor compete fective interest in training, 2. Apprentices! of training is ‘ r employees for skilled occupations like carpentry, plumbing, etc. It class room and under the direct Supervision of the trainee’s masters. Sometimes, workers are also placed as assistants to experienced workers to learn the Process of work by imitation and experience The apprentice works under the trainee’s master, During the period of apprenticeship, the trainee may be given a stipend. Answer 8. '2) Elements of Public Relations are as follows : 1. Human relations : Public relation is getting along with the people or ‘public’ both internally and externally. Each person who works in an organisation has to get along with others. He is expected to understand people and take interest in their progress. ; 2. Empathy : Empathy is the ability to revonate another person's feelings and emotions as i they were your own. In other words, it is pones of understanding feeling of others. It enables an executive to be sensitive and sympathetic to attitudes, expectations and problems of his workers and clients. 4 3. Persuasion : There are two ways of changing the mind of others namely by persuasion () o by force. Persuasion is the process aimed at qhanging 2 person's (or a group's) attitude oF behaviour towards some event, idea, abject or other person(s), by using written or spoken, sige a to convey information, feelings, or reasoning, ‘combination of them. Thus, persuasion is positive and hence results in positive outcome. 4. Dialogue: Dialogue isa conversation between ‘wo people with some purpose. Dialogue is a reasonable exchange of ideas bringing into being @ new form of knowledge. The use of dialogue 's for influencing behaviour, selling goods or inspiring ideas. It helps to reduce prejudice and builds up mutual confidence. Effective dialogue requires impartial listening and understanding. There should be respect for each other's opinions. A good way to start dialogue is by asking questions and listening to the answers. @ Campus recruitment : Campus Recruitment is the program conducted within educational institutes to provide jot bs to students. In this Program, industries visit the colleges to select students depending on their ability to work, Zeability, focus and aim. Managers, officers, technicians like engineers, electricians, mechanice and skilled workmen are often recruited from institutions like Indian Institute of Management QM), ‘Indian Institute of Technology (ay, Engineering colleges, Industrial Training, Institutes, Polytechnics, ete. (i) Placement agencies: The private: employment placement agencies. \didates seeking jobs y vacancy, it is met tes. These institutions their services and are ve technical, professional and managerial personnel. It is a common source of Tecruitment in India as well as foreign countries, An energy crisis is any great bottleneck in the supply of energy sources to an economy. For example, shortage of il, or the shortage of electricity or other natural resources, It usually happens when a gap between demand and supply arises. Following are the two renewable energy sources that will help in dealing with energy crisis: de and whenever there is any through these candida charge commission for Popular for recruiting Solarenergy :Solar energy hasbeen used since prehistoric times in the most primitive manner Solar energy is the energy received by the earth from the sun. India is fortunate enough to receive high amount of solar energy, equivalent to 5,000 trillion kWh per year. This is because of India’sICSE Commercial Applications-2018 location on Tropic of Cancer. The solar energy can be converted into other forms of energy mainly by two methods The photo voltaic method : The sun's energy is directly converted into electricity using a photo voltaic cell or solar cell. The electricity produced by this method is used for street lighting, radio and television sets, lighting houses, water pumps ete The thermal method : In this method, solar radiation in the form of heat is converted into mechanical, electrical or chemical energy by using solar thermal devices like cookers, heaters etc. 2. Biomass energy : Biomass includes firewood, top and timber wastes, aquatic plants, animal wastes and organic matter from household, municipal and certain types of industrial wastes. Biogas is produced by the anaerobic digestion of biomass. To obtain this energy in viable quantities, resources and proper infrastructure is required for biomass growing, collecting, drying, fermentation and burning. Biogas plants that use cattle dung, human excreta and plant debris are such recently developed devices. Biogas is a mixture consisting of 65% methane (CH) and 35% of carbon dioxide (CO). The biogas can be used for cooking purposes. It is also possible to generate electricity on a usable scale if the size of the biogas plant is large enough. India produces about 300 million tones of crop residue every year which theoretically generates about 40,000 MW of electricity. Answer 9. (2) In today’s world of advanced technology, the companies demonstrate its products on. the internet, state their features and benefits and sell the products. Orders are booked on the internet and products are delivered at the doorsteps of the customers. When customers buy products and services through this medium, it is called online shopping. Amazon, flipkart, Tata Cliq are the three companies doing online trading in India. (b) Following are the various reasons which have led to the increase in online trading in India : 1. The digital age : The expansion of digital services has led to the expansion of e-commerce. Now the reach of computers, internet and mobile phones has taken place in every nook and corner of the country. So, it has become easier for the people to shop online. 2. Privacy in buying : The best benefit online shopping provides is that no one knows what ‘a customer has purchased. This gives a sense of privacy toa customer. 3, Time saving : Online shopping leads to a Io, of saving in time of terms of going to the market, searching the shops, waiting in lines for payments and dealing with traffic jams etc. Such saved time can be utilized for some other purposeful activities. 4. Saving in cost : When a customer buys product online after comparing it on various websites, there are big chances that he may get the cheaper product. This will provide savings in cost to the buyer. 5. Customer feedbacks : A very good feature of online shopping is the customer feedback, ‘The people who have already used the products provide very valuable feedbacks regarding the products which help new buyers to decide whether they should buy the product or not. Motorola is adopting the shortest and the simple channel of distribution from the manufacturer to the consumer directly. No middleman or intermediary is present between the producer and the consumer. This channel is very fast and economical. The producer has direct contact with the consumer and full control over distribution, The other methods are - manufacturer ~ retailer consumer. Manufacturer ~ wholesaler — retailer ~ consumer, Manufacturer ~ agent- wholesaler - retailer - consumer. Answer 10. (0) Parle has adopted the strategy of combination brand. The term ‘combination brand’ uses both the individual brand for every product and its family or umbrella brand for all the products together. This policy enables the company to take benefits of both types of branding strategies, Parle has adopted this strategy to develop a distinct identity of each of its product like 20-20, Monaco, Krack jack ete., to compete with the products of different varieties. But it is also emphasizing the importance of manufacturer's identity to build high level of trust among its customer that if they are satisfied with any of the products of Parle, its other products will also deliver the same level of satisfaction. So, under this kind of branding strategy, the customers get the image of organisation also along with the product image. Brand equity refers to the value of a brand. It indicates a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent. () - |