Board Question Paper Solution: Organisation of Commerce and Management (February 2026)

Board Question Paper: February 2026

Subject: Organisation of Commerce and Management

Time: 3 Hrs. | Max. Marks: 80

Q.1. (A) Select the correct options and rewrite the sentences:

1. Principle of __________ is not applicable to life insurance. Answer: Indemnity

2. The transactions under __________ are between consumers and consumers. Answer: C2C

3. The functions of management end with __________. Answer: Controlling

4. Business should provide periodic information to __________. Answer: owners

5. Retail market is the market where retailer sells goods directly to the __________. Answer: consumer

Q.1. (B) Match the pairs:

Group 'A'	Group 'B' (Correct Answer)
(a) Principle of 'Unity' in Direction	(3) One head-one plan
(b) Pipeline transport	(4) Petroleum and gas
(c) Registration	(10) First step (in online transaction/consumer redressal)
(d) Economic objective	(9) To earn profit
(e) King of the market	(2) Consumer

Q.1. (C) State whether the following statements are true or false:

1. Lok Adalat can rightly be described as people's court. Answer: True

2. NEFT stands for National Electric Fund Transfer. Answer: False (It stands for National Electronic Funds Transfer)

3. The term market is derived from the Latin word 'mercatus.' Answer: True

4. Every function of management is not based on planning. Answer: False (Planning is the basic function)

5. It is the responsibility of commercial organisation to maintain industrial peace. Answer: True

Q.1. (D) Arrange in proper order:

1. Purchase or sale, Delivery stage, Pre-purchase or sale. Answer: Pre-purchase or sale -> Purchase or sale -> Delivery stage

2. E-mail, Inland Letter, Courier service. Answer: Inland Letter -> Courier service -> E-mail

3. District Judge, Supreme Court Judge, High Court Judge. Answer: District Judge -> High Court Judge -> Supreme Court Judge

4. Local market, International market, National Market. Answer: Local market -> National Market -> International market

5. Controlling, Organizing, Planning. Answer: Planning -> Organizing -> Controlling

Q. 2. Explain the following terms / concepts (Any FOUR): [8 Marks]

1. Principle of Remuneration

Meaning: This principle of management, advocated by Henry Fayol, states that the remuneration (pay/wages) given to employees should be fair and reasonable.

Key Points:

• It implies that the pay should provide maximum satisfaction to both the employees and the employer.
• Fair remuneration increases the morale, productivity, and efficiency of employees.
• It helps in maintaining a healthy relationship between management and staff, reducing labor turnover.

2. Management

Meaning: Management is a universal process of getting things done through and with people to achieve organizational goals effectively and efficiently.

Key Points:

• It is considered both an art (dealing with people) and a science (systematic body of knowledge).
• It involves continuous functions such as Planning, Organizing, Staffing, Directing, Coordinating, and Controlling.
• It integrates human, financial, and physical resources to achieve set objectives.

3. Communication

Meaning: Communication is the process of passing information, ideas, facts, thoughts, opinions, and emotions from one person to another.

Key Points:

• It is a two-way process involving a Sender and a Receiver.
• The process includes: Sender → Message → Encoding → Channel → Decoding → Receiver → Feedback.
• Effective communication is the lifeblood of any organization as it facilitates planning, decision-making, and coordination.

4. Organizing

Meaning: Organizing is the management function of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together.

Key Points:

• It creates the organizational structure (e.g., departments, hierarchy).
• It ensures that the right resources (men, money, material) are available at the right time.
• It eliminates confusion and duplication of work by clearly defining roles.

5. Insurance

Meaning: Insurance is a contract between two parties—the Insurer (Insurance Company) and the Insured (Policyholder)—whereby the insurer agrees to indemnify (compensate) the insured against a loss caused by a specified uncertain event.

Key Points:

• Premium: The consideration paid by the insured to the insurer for taking the risk.
• Risk Transfer: It is a mechanism of transferring risk from an individual to the insurance company.
• Principles like Indemnity, Insurable Interest, and Utmost Good Faith are applicable.

6. Public interest litigation (Janahit Yachika)

Meaning: Public Interest Litigation (PIL) refers to legal action initiated in a court of law for the enforcement of public interest or general public importance, rather than for the enforcement of individual rights.

Key Points:

• Locus Standi: Unlike normal cases, any public-spirited citizen or organization can file a PIL; the petitioner need not be the aggrieved party.
• Objective: Its main aim is to provide legal remedy to unrepresented groups or to issues affecting the larger public (e.g., environmental pollution, road safety).
• It is a strategic arm of the legal aid movement.

Q.3. Study the following case / situation and express your opinion (Any TWO):

Case 1: Mr. Raman is a successful manufacturer having production units at various locations. He has a large stock of raw material and finished goods. He is worried about safeguarding goods from financial loss. He requires to transfer goods from one unit to other. He also requires funds for expansion.

i. Name the service which will help him to safeguard goods from any damage. Answer: Warehousing service will help him safeguard the goods.

ii. Which service will help him to remove difficulty of place? Answer: Transport service will help remove the difficulty of place.

iii. From which service sector will Mr. Raman get financial support? Answer: Mr. Raman will get financial support from the Banking sector.

Case 2: Ajay purchased some gift articles online from www.flipkart.com. At the same time Sheetal purchased gift from e-bay.com.

i. Which website is related to C2C? Answer: e-bay.com is related to Consumer to Consumer (C2C) commerce.

ii. Which website is related to B2C? Answer: www.flipkart.com is related to Business to Consumer (B2C) commerce.

iii. Which first step does Ajay need to follow in online transaction? Answer: The first step is Registration (creating an account).

Case 3: An organisation manufacturing paints has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank, which has created many health problems for the nearby villages.

i. Which responsibility is neglected by the manufacturing organisation? Answer: The organization has neglected its Social Responsibility towards the Community/Society and protection of the environment.

ii. What kind of pollution they are doing? Answer: They are causing Water Pollution (and soil pollution).

iii. Write any one precautionary measure they need to take. Answer: They should set up an Effluent Treatment Plant (ETP) to treat the waste before disposing of it, or follow proper Waste Management protocols.

Q.4. Distinguish between the following (Any THREE): [12 Marks]

1. Directing and Controlling

Point of Difference	Directing	Controlling
Meaning	It is the process of instructing, guiding, communicating, inspiring, motivating, and supervising the employees to achieve organizational goals.	It is the process of comparing the actual performance with the predetermined standard performance and taking corrective measures if necessary.
Order	It is an executive function that follows organizing and staffing. It initiates action.	It is the last function of the management process. It follows directing.
Nature	It is a continuous process involving constant interaction with subordinates.	It is a result-oriented process that looks back to analyze performance.
Objective	To get the work done effectively and efficiently by the subordinates.	To ensure that the actual performance matches the standard performance.

2. Road Transport and Rail Transport

Point of Difference	Road Transport	Rail Transport
Speed	It has limited speed due to traffic and road conditions. It is slower over long distances.	It has faster speed compared to road transport. It is suitable for long distances.
Door-to-door Service	It provides door-to-door service, picking up goods from the source and delivering to the destination.	It does not provide door-to-door service. Goods must be brought to and taken from the railway station.
Suitability	Suitable for short distances, small quantities of goods, and perishable items.	Suitable for long distances, heavy and bulky goods, and large number of passengers.
Cost	It requires less capital investment but operating cost is relatively high.	It requires huge capital investment for tracks and engines, but operating cost is relatively low for bulk transport.

3. Traditional Business and E-business

Point of Difference	Traditional Business	E-business
Formation	Formation is difficult and time-consuming as it requires physical setup and various legal formalities.	Formation is relatively easy and takes less time as it relies on the internet and digital presence.
Physical Presence	It requires a physical existence (shops, offices) which can be seen and touched.	It does not require physical existence; it operates virtually through a website or app.
Transaction Cost	The cost of the transaction is high due to intermediaries and physical infrastructure.	The cost of the transaction is low as it eliminates intermediaries and physical overheads.
Customer Interaction	There is face-to-face interaction, which builds personal trust and relationships.	There is no face-to-face interaction; communication is screen-to-screen (digital).

4. District Commission and National Commission

Point of Difference	District Commission	National Commission
Area Covered	It covers a particular district.	It covers the entire country.
Monetary Jurisdiction	It entertains complaints where the value of goods or services paid as consideration does not exceed ₹50 Lakhs (as per CPA 2019 rules).	It entertains complaints where the value of goods or services paid as consideration exceeds ₹10 Crores.
President	A person who is, or has been, or is qualified to be a District Judge.	A person who is, or has been, a Judge of the Supreme Court or Chief Justice of a High Court.
Appeal	Appeal against its order lies with the State Commission.	Appeal against its order lies with the Supreme Court.

Q.5. Answer in brief (Any TWO): [8 Marks]

1. Explain any four rights of the consumer.

The Consumer Protection Act provides several rights to empower consumers. Any four are explained below:

• Right to Safety: This right protects consumers against the marketing of goods and services that are hazardous to life and property. For example, electrical appliances must meet safety standards (like ISI marks) to prevent injury.
• Right to Information: The consumer has the right to be informed about the quality, quantity, potency, purity, standard, and price of goods. This protects the consumer against unfair trade practices and helps them make informed choices.
• Right to Choose: This means the right to be assured, wherever possible, of access to a variety of goods and services at competitive prices. In a monopoly, it means the right to be assured of satisfactory quality and service at a fair price.
• Right to be Heard: This right ensures that consumers' interests will receive due consideration at appropriate forums. It also includes the right to be represented in various government and non-government bodies dealing with consumer issues.

2. Explain 4Ps of product marketing mix.

The marketing mix is the combination of variables that a firm uses to achieve its market goals. The 4Ps are:

• Product: This refers to the goods or services offered to the customer to satisfy their needs. It includes aspects like design, quality, features, packaging, and branding. The product must deliver value to the consumer.
• Price: This is the monetary value that a customer pays to purchase the product. Price is a critical element as it directly affects the revenue of the firm and the demand for the product. It includes pricing strategies, discounts, and credit terms.
• Place (Distribution): This refers to the channels and locations used to make the product available to the target customers at the right time. It involves decisions regarding storage, transportation, warehousing, and selection of intermediaries (wholesalers, retailers).
• Promotion: This includes all the activities undertaken to communicate the features and benefits of the product to the customers and persuade them to buy it. Tools include advertising, personal selling, sales promotion, and public relations.

3. Explain any four features of business services.

Services are intangible activities that provide satisfaction of wants. Key features include:

• Intangibility: Services cannot be seen, touched, smelled, or tasted before they are purchased. For example, one cannot touch the 'transport' service, but can only experience the ride.
• Inseparability: The production and consumption of services happen simultaneously. Unlike goods, services cannot be separated from the service provider. For instance, a doctor must be present to treat a patient.
• Inconsistency (Heterogeneity): Services are not standardized; they vary depending on who provides them, when, and where. The experience of a haircut may differ even if done by the same barber on different days.
• Perishability: Services cannot be stored for future use. If a seat on a bus or a room in a hotel is vacant for a day, that potential revenue is lost forever.

Q.6. Justify the following statements (Any TWO) [8 Marks]

1. Principle of equity is important.

Justification:

• Fair Treatment: The principle of equity states that management should be fair as well as friendly to the subordinates. There should be no discrimination between employees based on caste, creed, religion, or gender.
• Motivates Employees: When employees feel they are treated fairly and with justice, they are motivated to work harder. It instills a sense of belonging and loyalty towards the organization.
• Reduces Conflicts: Equity helps in avoiding conflicts between the management and the workers. It creates a cordial relationship and a healthy work environment.
• Efficiency: Equal treatment regarding delegation of authority and monetary terms leads to better efficiency and reduces labor turnover.

2. 'Right person at right job with right pay' is the basic principle of staffing.

Justification:

• Optimal Utilization of Resources: Staffing ensures that the right person is recruited for the right job. This leads to the optimum utilization of human resources and prevents wastage of talent.
• Job Satisfaction: When an employee is placed in a job that matches their skills and qualifications ("Right Person at Right Job"), they feel satisfied and confident.
• Motivation through Fair Pay: The "Right Pay" component ensures that employees are compensated fairly for their work. Adequate remuneration acts as a strong motivator and improves productivity.
• Organizational Goals: Without the right staff at the right positions, other functions of management (like directing and controlling) become ineffective, making it difficult to achieve organizational goals.

3. Business organizations should avoid environmental pollution and ecological imbalance.

Justification:

• Protection of Public Health: Industrial activities often release harmful gases, chemicals, and waste. Pollution of air, water, and sound causes severe health problems for society. Avoiding this is a moral duty.
• Ecological Balance: Businesses extract resources from nature. If they exploit resources excessively or dump waste irresponsibly, it disturbs the ecological balance, affecting biodiversity and future generations.
• Social Responsibility: Business is a part of society. It has a responsibility to protect the environment in which it operates. Polluting the environment amounts to a violation of social trust.
• Legal Compliance: Governments have enacted strict laws against pollution. Violation of these laws can lead to heavy fines, legal action, or even the closure of the business.

4. Aim of consumer organizations is to protect the rights of the consumers.

Justification:

• Combating Exploitation: Consumers are often unorganized and vulnerable to exploitation by traders through adulteration, hoarding, black marketing, and misleading advertisements. Consumer organizations fight against these malpractices.
• Creating Awareness: These organizations educate consumers about their rights (Right to Safety, Information, etc.) and responsibilities through campaigns, workshops, and publications.
• Legal Assistance: They provide legal aid and guidance to consumers to file complaints in Consumer Redressal Forums (District/State/National Commissions).
• Representation: They represent the interest of consumers in various government committees and policy-making bodies to ensure pro-consumer laws are enacted.

Q.7. Attempt the following (Any TWO): [10 Marks]

1. Explain importance of marketing to the consumers.

Marketing is vital for consumers as it helps them in satisfying their needs and improving their standard of living. The importance is explained below:

• Promotes Product Awareness: Marketing activities like advertising and sales promotion inform consumers about new products, their utility, usage, and price. This awareness helps them make informed buying decisions.
• Provides Quality Products: Modern marketing is consumer-oriented. Companies conduct market research to understand consumer needs and strive to provide quality products that meet those needs, ensuring value for money.
• Variety of Products: Marketing ensures that a wide range of goods and services are available in the market. This gives consumers the freedom to choose products that best suit their preferences and budget.
• Helps in Selection: With a variety of products available, marketing communications (like labeling and branding) help consumers compare different products based on features, price, and quality, making selection easier.
• Consumer Satisfaction: The ultimate goal of marketing is consumer satisfaction. It doesn't end with the sale; it includes after-sales services, feedback mechanisms, and grievance redressal, ensuring the consumer remains happy.
• Regular Supply of Goods: Efficient distribution channels (Place mix) ensure that goods are available to consumers at the right time and right place, preventing shortages.

2. Explain the functions of an entrepreneur.

An entrepreneur is a person who starts a business and takes risks to earn profit. Their key functions include:

• Innovation: An entrepreneur is an innovator. They introduce new combinations of means of production, new products, new markets, or new methods of production to gain a competitive edge.
• Determination of Objectives: The entrepreneur has to determine the primary and secondary objectives of the enterprise. They must define the nature of the business and the type of business activities clearly.
• Development of Market: The entrepreneur has to find out different ways for marketing the products and services. They conduct market research to understand consumer demand and structure the marketing strategy accordingly.
• New Technology: In the global world, technology changes rapidly. An entrepreneur must keep up with the latest technology and introduce it in the production process to reduce costs and improve quality.
• Good Relations: It is necessary to maintain healthy relations with employees, suppliers, customers, and the government. A good entrepreneur creates a positive work environment and maintains industrial peace.
• Organizing Funds: Finance is the lifeblood of business. The entrepreneur must estimate the financial requirements and raise funds from various sources (banks, investors) at the right time.

3. Explain any five principles of scientific management.

F.W. Taylor, known as the "Father of Scientific Management," proposed principles to increase efficiency. Any five are:

• Science, Not Rule of Thumb: Taylor insisted that each job should be performed based on scientific analysis and not on intuition or past trial-and-error methods (Rule of Thumb). The "One Best Way" of doing a job should be developed.
• Harmony, Not Discord: There should be complete harmony between the management and the workers. Conflicts should be minimized. Both should realize that they are important to each other.
• Mental Revolution: This implies a complete change in the attitude of management and workers towards each other. They should shift their focus from fighting over the division of surplus (profits) to increasing the surplus together.
• Cooperation, Not Individualism: Scientific management emphasizes cooperation between management and workers. It is an extension of the principle of 'Harmony not Discord'. Competition should be replaced by cooperation.
• Division of Responsibility: There should be a clear division of work and responsibility. Management should focus on planning and thinking, while workers should focus on the execution of work.
• Development of Employer and Employees: Efficiency depends on the capabilities of the employees. Scientific management advocates for the scientific selection and training of employees to ensure their development and prosperity.

Q.8. Answer the following question in detail (Any ONE): [8 Marks]

1. What is marketing? Explain in detail its functions.

Meaning: Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. It involves identifying consumer needs and satisfying them profitably.

Functions of Marketing:

• Marketing Research: It is the starting point of marketing. It involves gathering and analyzing information about market trends, consumer preferences, and competition. This helps the organization to understand the needs and wants of the consumers. [Image of Marketing Research Process diagram]
• Buying and Assembling: It involves collecting raw materials from different sources at one place for production. Assembling means bringing together goods of similar quality from various producers to sell them under one brand name.
• Product Designing and Development: This function involves creating a product that meets consumer needs with attractive design and utility. A good design improves the performance of the product and gives it a competitive advantage.
• Standardization and Grading: Standardization means setting specific quality standards (size, color, design, weight). Grading is the process of sorting products into different groups (grades) based on these standards (e.g., A-grade, B-grade).
• Packaging and Labeling: Packaging refers to designing the wrapper or container for the product to protect it from damage and make it attractive. Labeling provides information about the product (ingredients, price, expiry date) on the package.
• Branding: Branding means giving a distinct name, sign, or symbol to the product to differentiate it from competitors. A brand helps in building product loyalty and image.
• Pricing: Pricing is determining the value exchange for the product. It is a critical decision as it affects the demand for the product and the profitability of the firm. Factors like cost, demand, and competition influence pricing.
• Promotion: It involves informing and persuading customers to buy the product. It includes advertising, personal selling, sales promotion, and publicity.
• Physical Distribution: This function involves moving goods from the place of production to the place of consumption. It includes transportation, warehousing, and inventory control.
• Customer Support Services: After-sales services are crucial for customer satisfaction. It includes handling complaints, maintenance services, technical support, and consumer credit.

2. What is a warehouse? Explain various types of warehouses.

Meaning: A warehouse is a commercial building for storing goods. Warehousing is a set of activities involved in storing goods on a large scale in a systematic and orderly manner, preserving them from damage and deterioration until they are needed for consumption.

Types of Warehouses:

• Private Warehouses: These are owned and operated by big manufacturers and merchants to fulfill their own storage needs. They are constructed near their factories or market places. The investment is high, but they have full control over operations.
• Public Warehouses: These are specialized business establishments that provide storage facilities to the general public for a certain charge. They are owned by an individual or a cooperative society. They work under a license from the government and are useful for small manufacturers and traders.
• Bonded Warehouses: These are licensed by the government to accept imported goods for storage until the payment of customs duty. They are located near ports. Importers can store goods here and pay duty in installments as they remove the goods.
• Duty-Paid Warehouses: These are public warehouses located near port areas where imported goods, on which duty has been paid, are stored. Importers who do not have their own warehouse or face transport issues use these facilities.
• Government Warehouses: These are owned, managed, and controlled by the Central or State Governments or public corporations (e.g., Central Warehousing Corporation, State Warehousing Corporation). They provide storage facilities to farmers, traders, and the government itself.
• Co-operative Warehouses: These are owned and managed by cooperative societies (e.g., marketing or agricultural cooperatives) for the benefit of their members. They provide storage facilities at economical rates to farmers and members.
• Cold Storage Warehouses: These are specialized warehouses for storing perishable goods like fruits, vegetables, milk, fish, and meat. They maintain a specific low temperature to preserve the quality of goods.