ISC 2025 Commerce Improvement Examination Question Paper for Class 12

About this paper

This is the ISC Class 12 Commerce paper from the 2025 Improvement Examination, code 1225-857-IE. It carries 80 marks and runs for three hours, with fifteen minutes extra for reading only. All 13 questions are compulsory. Section A has sixteen one-mark parts, several built around a figure: a comparison of India's and the United Kingdom's GDP, the Jago Grahak Jago emblem, a purchase procedure and Maslow's hierarchy with one level left blank. Section B has eight four-mark questions, with an internal choice in two, on block and circulating capital, controlling, Fayol's principles, delegation, training and marketing. Section C has four eight-mark questions, with an internal choice in one, and ends with a case on the communication problems in Asha's ten-member software team. This copy has the questions only.

Exam

ISC Class 12

Subject

Commerce

Year

2025

Paper code

1225-857-IE

Maximum marks

80

Time allowed

3 hours + 15 min reading

Questions

13

Pages

8

Answers included

No, questions only

Paper pattern

• Section A

  16 marks

  Question 1 with 16 one-mark parts: multiple choice, an assertion–reason item, analogies, true or false, and questions on figures including Maslow's hierarchy

• Section B

  32 marks

  Questions 2–9, four marks each; internal choice in two questions

• Section C

  32 marks

  Questions 10–13, eight marks each, including a case on barriers to communication; internal choice in one question

Topics covered

• Recruitment and training
• Business environment
• Trading on equity
• Consumer rights and consumer responsibilities
• Maslow's hierarchy of needs
• Controlling
• Fayol's principles of management
• Delegation
• Marketing and channels of distribution
• Sources of finance and digital payments
• Leadership and communication

Questions from this paper

1. During the festival season Aarna Foods Ltd. is short of staff at one outlet, and a manager proposes moving employees sideways within the company. Which source of recruitment is this?
2. What name is given to the use of borrowed funds to increase the earnings of equity shareholders?
3. State any four differences between block capital and circulating capital.
4. Soft Skin Private Ltd. bought machinery costing ₹10 lakhs, paid ₹2 lakhs on delivery, and agreed to pay the remaining ₹8 lakhs with interest over a period of time. Name and explain this short-term source of finance.
5. With reference to controlling, explain critical point control and control by exception.
6. LM Ltd. would not consider suggestions from employees who wanted to improve the production process, and it dismissed many employees during probation without a substantial reason. Identify and explain the two principles of Henri Fayol that were violated.