Students can Download Tamil Nadu 12th Commerce Model Question Paper 4 English Medium Pdf, Tamil Nadu 12th Commerce Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Commerce Model Question Paper 4 English Medium


  1. The question paper comprises of four parts.
  2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
  3. All questions of Part I, II. III and IV are to be attempted separately.
  4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
  5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
  6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
  7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 3 Hours
Max Marks: 90

Part -I

Choose the correct answer. Answer all the questions: [20 x 1 = 20]

Question 1.
Drucker stresses jobs of management.
(a) three
(b) two
(c) four
(d) Six
(a) three

Question 2.
Choose the odd one out?
(a) Directing
(b) Motivating
(c) Innovation
(d) Controlling
(c) Innovation

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 3.
…………… harmonises the goal of an individual with the organisation’s goal.
(a) MBO
(b) MBE
(c) MBA
(d) MBM
(a) MBO

Question 4.
Indian organised financial system consist of sectors.
(a) Two
(b) Four
(c) Three
(d) Six
(b) Four

Question 5.
Capital market otherwise called as …………..
(a) Securities market
(b) Share market
(c) Debenture market
(d) Money market
(a) Securities market

Question 6.
……………………. deals with the financial assets and securities whose maturity period does not exceed one year.
(a) Money market
(b) Capital market
(c) Stock exchange
(d) Government bonds
(a) Money market

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 7.
The consumer is to be protected against any ……………..
(a) unfair practices of trade
(b) family functions
(c) profit making firm
(d) loss in business
(a) unfair practices of trade

Question 8.
The National Commission should have members.
(a) 3
(b) 4
(c) 5
(d) 6
(d) 6

Question 9.
………………. is the latest outcome of liberalization.
(a) Privatisation
(b) Globalisation
(c) Foreign collaboration
(d) None of these
(c) Foreign collaboration

Question 10.
A bill of exchange drawn on a specified banker is ……………
(a) promissory note
(b) cheque
(c) hundi
(d) share
(b) cheque

Question 11.
The entrepreneurs classified on the basis of types of business are …………….
(i) Industrial entrepreneur
(ii) Technical entrepreneur
(iii) Professional entrepreneur
(iv) Business entrepreneur
(a) (i) and (iii)
(b) (i) and (iv)
(c) (ii) and (iii)
(d) (ii) and (iv)
(b) (i) and (iv)

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 12.
Board meetings to be conducted minimum times in a year.
(a) 2
(b) 3
(c) 4
(d) 5
(c) 4

Question 13.
A public company shall have a minimum of ……………. directors.
(a) Twelve
(b) Seven
(c) Three
(d) Two
(c) Three

Question 14.
Which of the following types of shares are issued by a company to rains capital from the existing shareholders?
(a) Equity shares
(b) Rights shares
(c) Preference shares
(d) Bonus shares
(b) Rights shares

Question 15
should cover aspects like sources of finance, technical know-how, source of labours and raw material, market potential and profitability.
(a) Technical Report
(b) Finance Report
(c) Project Report
(d) Progress Report
(c) Project Report

Question 16.
Find the odd one out is context of Trading Entrepreneur.
(a) Selling
(b) Commission
(c) Buying
(d) Manufacturing
(d) Manufacturing

Question 17.
Which of the below is not classified into managerial function.
(a) Planning
(b) Marketing
(c) Organising
(d) Controlling
(c) Organising

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 18.
Section 6 of Negotiable Instruments Act 1881 deals with ……………
(a) Promissory Note
(b) Bills of exchange
(c) Cheque
(d) None of the above
(c) Cheque

Question 19.
……………… results from the removal of barriers between national economics to encourage the flow of goods, services, capital and labour.
(a) privatisation
(b) Liberalisation
(c) Globalisation
(d) Foreign Trade
(c) Globalisation

Question 20.
The state commission can entertain complaints where the value of the goods or services and the compensation, if any claimed exceed.
(a) ₹ 2 lakhs but does not exceed ₹ 5 lakhs
(b) ₹ 20 lakhs but does not exceed ₹ 1 crore
(c) ₹3 lakhs but does not exceed ₹ 5 lakhs
(d) ₹ 4 lakhs but does not exceed ₹ 20 lakhs
(d) ₹ 4 lakhs but does not exceed ₹ 20 lakhs


Answer any seven in which Question No.30 is compulsory. [7 x 2 = 14]

Question 21.
State the meaning of Authority.
Authority means the right of a superior to give the order to his subordinates. This is the issue of commands followed responsibility for their consequences.

Question 22.
How is price decided in a secondary market?
Financial markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers. They provide a signal for the allocation of funds in the economy, based on the demand and supply, through the mechanism called price discovery processes.

Question 23.
What is meant by Remiser?
Remiser is an agent of a member of a stock exchange. He obtains business for his principal i.e. the member.

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 24.
What is Human Resource Management ?
Human Resource Management is a function of management concerned with hiring, motivating and maintaining people in an organisation. It focuses on people in an organisation.

Question 25.
Define Marketer.
“A person whose duties include the identification of the goods and services desired by a set of consumers, as well as the marketing of those goods and services on behalf of a company”.

Question 26.
What is Caveat Emptor?
‘Caveat emptor’ is a Latin term that means “let the buyer beware.” Similar to the phrase “sold as is,” this term means that the buyer assumes the risk that a product fails to meet expectations or have defects.

Question 27.
Expand VUCA.
VUCA – volatility, uncertainty, complexity and ambiguity.

Question 28.
What is meant by goods?
The term goods mean every kind of movable property other than actionable claim and money.

Question 29.
List down the managerial functions of entrepreneurs.

  • Planning
  • Organising
  • Directing
  • Controlling
  • Coordination

Question 30.
What do you mean by Equity Share?
The share of a company which do not have any preferential rights with regard to dividend and repayment of share capital at the time of liquidation of a company, is called as equity share or ordinary share.

Part – III

Answer any seven in which question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
What are the principles of Taylor?
Principles of scientific management propounded by Taylor are:

  • Science, Not Rule of Thumb
  • Harmony, Not Discord
  • Mental Revolution
  • Cooperation, Not individualism
  • Development of each and every person to his or her greatest efficiency and prosperity.

Question 32.
Write a note on Secondary Market.
Secondary Market is the market for securities that are already issued. Stock Exchange is an important institution in the secondary market.

Question 33.
Explain National Stock Market System. (NSMS)
National stock market system was advocated by the High Powered Group. It is headed by Shri. Pherwani (popularly known as Pherwani Committee). At present the National Stock Market comprises the following:

  • National Stock Exchange of India Limited (NSE)
  • Stock Holding Corporation of India Limited (SHCIL)
  • Securities Trading Corporation of India (STCI)

Question 34.
Marketer is an innovator? Do you agree?
Marketer seeks to distinguish his products/services by adding additional features or functionalities to the existing product, modifying the pricing structure, introducing new delivery pattern, creating new business models, introducing change in production process and so on.

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 35.
What is meant by artificial scarcity?
There are certain situations where the shop-keepers put up the board ‘No Stock” in front of their shops, even though there is plenty of stock in the store. In such situations consumers who are desperate to buy such goods have to pay hefty price to buy those goods and thus earning more profit unconscientiously.

Question 36.
State the framework of Corporate Governance in India.
The Indian Corporate Governance framework requires listed companies

  • To have independent directors on the board; At least one third of the directors have to be independent directors.
  • To have at least one independent woman director,
  • To disclose all deals and payments to related parties.
  • To disclose details of managerial compensation.

Question 37.
Discuss the implied conditions and warranties in sale of goods contract.
In every contract of sale, there are certain expressed and implied conditions and warranties. The term implied conditions means conditions which can be inferred from or guessed from the context of the contract.Following are the implied conditions:

  • Conditions as to Title
  • Conditions as to Description
  • Sale by Sample
  • Conditions as to Quality or Fitness
  • Conditions as to Merchantability
  • Condition as to Wholesomeness
  • Condition Implied by Trade Usage Following are the implied warranties:
  • Quiet Possession
  • Free from Any Encumbrances
  • Warranty in the case of Dangerous Goods

Question 38.
List the commercial functions of Entrepreneur and explain them shortly.
Commercial Functions of Entrepreneur:
Production or Manufacturing: Under production function, entrepreneur has to take decision relating to selection of factory site, design and layout, type of products to be manufactured, research and development, product design, etc.

Marketing: Entrepreneur has to carry out following functions pertaining to marketing aspect namely consumer research, product planning and development, standardisation, packaging, pricing, warehousing, distribution, promotion etc.

Accounting: Entrepreneur has to arrange to prepare trading and profit and loss account in order to know the profit or loss incurred out of operation of the business and prepare balance sheet to know the financial status of business at a particular day.

Finance: In the sphere of financial function, an entrepreneur has to take decisions like choosing the right type of financing, framipg the best dividend policy, acquiring of funds, efficiently managing fixed and current assets, maximising shareholders wealth and investing of funds efficiently and effectively.

Human Resource Management: Entrepreneur has to estimate the manpower needs of the enterprise and accordingly decide the size of manpower required for various slots of organisational structure.

Question 39.
What is issue of shares at discount? What conditions should be fulfilled?
When the shares are issued at a price below the face value they are said to be issued at a discount. For example, a share having the face value of Rs 10 is issued at Rs 8. The companies act 2013, prohibits the issue of shares at discount (Section 53), except sweat Equity share.

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 40.
What do you understand by ‘Poll’?
Poll means tendering or offering vote by ballot to a specially appointed officer, called the polling officer. Under the Companies Act, poll means exercising voting right in proportion to shareholder’s contribution to the paid-up capital of a limited company having a share capital.

Part – IV

Answer all the following questions. [7 x 5 = 35]

Question 41.
(a) Discuss the implications of span of management.
The Span of Management has two implications:
(i) Influences the complexities of the individual manager’s job.
(ii) Determine the shape or configuration of the Organisation.
The span of management is related to the horizontal levels of the organisation structure. There is a wide and a narrow span of management. With the wider, span, there will be less hierarchical levels, and thus, the organisational structure would be flatter. Whereas, with the narrow span, the hierarchical levels increases, hence the organisational structure would be tall.

  • Both these organisational structures have their advantages and the disadvantages. But however the tall organisational structure imposes more challenges.
  • Since the span is narrow, which means less number of subordinates under one superior, requires more managers to be employed in the organisation. Thus, it would be very expensive in terms of the salaries to be paid to each senior.
  • With more levels in the hierarchy, the communication suffers drastically. It takes a lot of time to reach the appropriate points, and hence the actions get delayed.
  • Lack of coordination and control because the operating staff is far away from the top management.


(b) What are the functions of Financial Markets?
Intermediary Functions
(i) Transfer of Resources: Financial markets facilitate the transfer of real economic resource from lenders to ultimate borrowers.

(ii) Enhancing Income: Financial markets allow lenders earn interest/dividend on their surplus
investible funds and thus contributing to the enhancement of the individual and the national income.

(iiI) Productive Usage: Financial markets allow for the productive use of the funds borrowed and thus enhancing the income and the gross national production.

(iv) Capital Formation: Financial markets provide a channel through which new savings flow to aid capital formation of a country.

(v) Price Determination: Financial markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers.

(vi) Sale Mechanism: Financial market provides a mechanism for selling of a financial
asset by an investor so as to offer the benefits of marketability and liquidity of such assets.

(vii) Information: The activities of the participants in the financial market result in the generation and the consequent dissemination of information to the various segments of the markets, so as to reduce the cost of transaction of financial assets.

Financial Functions

  • Providing the borrowers with funds so as to enable them to carry out their investment plans.
  • Providing the lenders with earning assets so as to enable them to earn wealth by deploying the assets in productive ventures.
  • Providing liquidity in the market so as to facilitate trading of funds

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 42.
(a) Explain the various types of New Financial Institutions.
(i) Venture Fund Institutions: Venture capital financing is a form of equity financing designed especially for funding new and innovative project ideas. Venture capital funds bring into force the hi-technology projects which are converted into commercial  production.

(ii) Mutual Funds: Financial institutions that provide facilities for channeling savings of small investors into avenues of productive investments are called ‘Mutual Funds’.

(iii) Factoring Institutions: “Factoring” is an arrangement whereby a financial institution provides financial accommodation on the basis of assignment/sale of account receivables.

(iv) Over the Counter Exchange of India (OTCEI): The OTCEI was set up by a premier
financial institution to allow the trading of securities across the electronic counters throughout the country.

(v) National Stock Exchange of India Limited (NSEI): NSEI was established in 1992 to function as a model stock exchange. The Exchange aims at providing the advantage of nation-wide electronic screen based “scripless” and “floorless” trading system in securities.

(vi) National Clearance and Depository System (NCDS): Under the scripless trading system, settlement of transactions relating to securities takes place through a book entry.

(vii) National Securities Depositories Limited: The NSDL was set up in the year 1996 for achieving a time bound dematerialization as well as rematerialization of shares.

(viii) Stock Holding Corporation of India Limited (SHCIL): Stock Holding Corporation of India Limited (SHCIL) aims at serving as a central securities depository in respect of transactions on stock exchanges. The Corporation also takes up the administration of clearing functions at a national level.


(b) What are the features of Government Securities?
(i) Agencies: Government securities are issued by agencies such as Central Government, State Governments, semi-government authorities like local Government authorities.
(ii) RBI Special Role: RBI takes a special and an active role in the purchase and sale of these securities as part of its monetary management exercise.
(iii) Nature of Securities: Securities offer a safe avenue of investment through guaranteed payment of interest and repayment of principal by the Government.
(iv) Liquidity Profile: The liquidity profile of gilt-edged securities varies. Accordingly liquidity profile of securities issued by Central Government is high.
(v) Tax Rebate: A striking feature of these securities is that they offer wide-range of tax incentives to investors.

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

(vi) Market: As each sale and purchase has to be negotiated separately, the Gilt-Edged Market is an Over-The-Counter Market.
(vii) Forms: The securities of Central and State Government take such forms as inscribed stock or stock certificate, promissory note and bearer bond.
(viii) Participants: The participants in Government securities market include the Government sector comprising Central and State Governments
(ix) Trading: Small and less active, banks and corporate holders who purchase and sell Government securities on the stock exchanges participate in trading.
(x) Issue Mechanism: The Public Debt Office (PDO) of the RBI undertakes to issue government securities.
(xi) Issue opening: A notification for the issue of the securities is made a few days before the public subscription is open.
(xii) Grooming Gradual: It is the acquisition of securities nearing maturity through the stock exchanges by the RBI.
(xiii) Switching: It is the purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operations.
(xiv) Auctioning: A method of trading whereby merchants bid against one another and where the securities are sold to the highest bidder.

Question 43.
(a) Distinguish between Stock Exchange and Commodity Exchange.
Differences between Stock Exchange and Commodity Exchange.

Stock Exchange Commodity Exchange
(0 Meaning: Stock Exchange is an organised market for purchase and sale of industrial and financial securities. A commodity exchange is an exchange where commodities are purchased and sold. E.g.: Gold, Silver, Rice, Wheat
(ii) Function: Providing easy marketability. Offering hedging or price insurance services.
(Hi) Object: It is facilitating capital formation. It will facilitate goods flow through risk reduction.
(iv) Participants: Investors and Speculators are participating in stock exchange. Producers, dealers, traders are involved in the commodity exchange.
(v) Articles traded: Industrial securities such as stocks and bonds and government securities. Only durable and graded goods are traded in this.


(b) Differentiate HR from HRM.

S.No. Human Resource (HR) Human Resource Management (HRM)
1. Meaning: Human resource, i.e., the employees create other sources. Managing the human resource is known as human resource management.
2. Human resource exhibits innovation and creativity. Human resource management has universal relevance.
3. Human resource alone can think, act and analyse. The accomplishment of organisational goal is made possible through human resource in an organisation.
4. Human resources are movable. Human resource management is intangible function.
5. Human resource can work as team. Human resource management focuses on the development of manpower through training . and development programmes.

Question 44.
(a) Explain the important methods of interview.
Interview means a face to face interaction between the interviewer and interviewee.
Interview may be of various types:-

  • Preliminary Interview: It is conducted to know the general suitability of the candidates who have applied for the job.
  • Structured Interview: In this method, a series of questions is to be asked by the interviewer. The questions may be pre-prepared.
  • In depth Interview: This interview is conducted to test the level of knowledge of the interviewee in a particular field.
  • Panel Interview: Where a group of people interview the candidate. The panel usually comprises the chair person, subject expert, psychological experts and so on.
  • Stress Interview: This type of interview is conducted to test the temperament and emotional balance of the candidate.
  • Online Interview: Due to tremendous growth in information and communication technology, interviews are conducted by means of internet via Skype, Google duo, Whatsapp.


Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

(b) What is your contribution to promote the market in the modern society?
Market is a place where buyers and sellers gather for purchase and sale.
Market may be of Local market, national market and international or Global market.
To develop and promote the market the following are needed:

  • Eligible and satisfied and customer is needed.
  • Quality and durable goods are to be marketed.
  • Recent trends like E-marketing, online marketing are to be encouraged.
  • After sales service are to be provided to durable goods.
  • Customers are to be financed for buying costly articles.
  • New Innovations and marketing research are to be introduced to develop the market.

Question 45.
(a) Discuss any two new methods of marketing with its advantages.
Rural Marketing: Rural marketing is a process of developing pricing, promoting and distributing rural specific goods and serv ices leading to exchange with rural customers.There is inflow of goods into rural markets for production and consumption and there is also outflow of products to urban areas.
The rural to urban flow consists of agricultural products like rice, wheat and sugar etc.

Service Marketing: Service marketing is a special branch of marketing. It denotes the processing of selling service goods like telecommunication, banking, insurance, healthcare, tourism and professional services. The service products are mostly intangible. The unique feature of services marketing warrant different strategies compared with the marketing of physical goods.


(b) Write about five important consumer legislations.
To protect the consumers from the unfair traders, the government passed various legislative Acts – They are follows:

  • The Indian Contract Act, 1982 was passed to bind the people on the promise made in the contract.
  •  The Essential Commodities Act, 1955 protects the consumers against artificial shortages created by the sellers by hoarding the goods.
  • The Prevention of Food Adulteration Act, 1954 checks the adulteration of food articles and ensures purity of goods supplied.
  •  Weights and Measures Act, 1958 protects the consumer against malpractices of underweight dr under measurement.

Question 46.
(a) Explain the term District Forum and explain the functions of District Forum.
As per the Consumer Protection Act 1986, a district forum is established in each and every district to solve the problems in the concerned district. Present or Retired district judge is the president of District forum


  • The complaints relating to the district can be solved by district forum.
  • Compensation that can be claimed is less than Rs. 20 lakhs.
  • Sometimes the district forum also may pass orders against traders.


(b) Distinguish between Condition and Warranty.

Basis for Difference Condition Warranty
1. Meaning It is a stipulation which is essential to the main purpose of the contract of sale. It is a stipulation which is collateral to the main purpose of contract.
2. Significance Condition is necessary to the contract that the breaking of which cancels out the contract. The violation of warranty will not revoke the contract.
3. Transfer of Ownership Ownership on goods cannot be transferred without fulfilling the conditions. Ownership on goods can be transferred on the buyer without fulfilling the warranty.
4. Remedy In case of breach of contract, the affected party can cancel the contract and claim damages. In the case of breach of warranty, the affected party cannot cancel the contract but can claim damages only.
5. Treatment Breach of condition may be treated as breach of warranty. Breach of warranty cannot be treated as breach of condition.

Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

Question 47.
(a) Explain the different kinds of endorsements.
When the person signs on the back of the instrument to transfer his interest, it is known as endorsement. The endorsement are of various types:

(i) Blank or general endorsement : When the endorser puts his mere signature on the back of an instrument without mentioning the name of the person to whom the endorsement is made, it is called Blank Endorsement

(ii) Endorsement in full or special endorsement: If the endorser, in addition to his signature, mentions the name of the person to whom it is endorsed, is known as endorsement in full or special endorsement.

(iii) Conditional endorsement: When the endorser of a negotiable instrument makes his liability dependent upon the happening of an event which may or may not happen, it is called conditional endorsement.

(iv) Restrictive endorsement : When an endorsement restricts or prohibits further negotiability of the instrument, it is, called Restrictive Endorsement.

(v) Partial Endorsement :Where the endorsement seeks to transfer only a part of the amount payable under the instrument, the endorsement is called Partial Endorsement.


Tamil Nadu 12th Commerce Model Question Paper 4 English Medium

(b) Write the difference between Share Certificate and Share Warrant.

S.No. Share Certificate Share Warrant
1. A share certificate is an instrument in writing for the legal proof of the ownership. A share warrant is a negotiable instrument, issued against fully paid up shares.
2. Every company must issue share certificate to its shareholders. There is no compulsion of the issue of share warrants by the company.
3. Normally, the holder of the share certificate is to be the member of the company. Generally, the holder of the share warrant is not the member of the company.
4. The share certificate is issued by the company within three months of the allotment of shares. Shares warrant can be issued only when the shares are fully paid up.
5. No need to authorized in the Articles of Association to issue share certificate. The issue of a share warrant must be authorized in the Articles of Association of the company.