ISC 2026 Commerce Improvement Examination Question Paper for Class 12

About this paper

This is the ISC Class 12 Commerce paper from the 2026 Improvement Examination, code 1226-857-I.E. It carries 80 marks and runs for three hours plus fifteen minutes of reading time. All 13 questions are compulsory. Section A has sixteen one-mark items, including a SWOT question on a café, an SMS payment alert, apprenticeship training and a packaging diagram. Section B has eight four-mark questions, with an internal choice in two, on fixed capital, fund transfer, Taylor's principles, planning and a consumer complaint for ₹5 crores. Section C has four eight-mark questions, with an internal choice in one, and closes with a case on planning, controlling and coordination at Bright Steel Ltd. This copy has the questions only.

Exam

ISC Class 12

Subject

Commerce

Year

2026

Paper code

1226-857-I.E.

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, true or false, analogies and very short answers, some based on a picture

• 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 planning, controlling and coordination; internal choice in one question

Topics covered

• SWOT analysis and business environment
• Digital banking
• Training and development
• Communication and feedback
• Consumer protection
• Informal organisation and span of control
• Financial planning and fixed capital
• Taylor's scientific management
• Planning and its limitations
• Marketing mix and channels of distribution
• Sources of finance and working capital
• Coordination and organisational structure

Questions from this paper

1. A small café in a busy marketplace becomes known for its beverages, but customers struggle to park. Which components of SWOT analysis does this highlight?
2. A furniture manufacturer places young carpenters under experienced craftspersons. They begin with simple parts, watch the work, and gradually make complete pieces. Identify the method and type of training.
3. From the extract of the balance sheet of Brush & Paint Ltd., which shows land and machinery rising from ₹5,00,000 to ₹8,00,000 and goodwill from ₹1,00,000 to ₹2,00,000, discuss any four factors affecting its fixed capital requirement.
4. Sanjay in Delhi must send ₹7 lakhs at once to his family in Mumbai for a medical emergency, using a fund-transfer system that is continuous and fast. Suggest a suitable system and state any three of its features.
5. At Shine Appliances Ltd. each worker assembles washing machines by a different method. At Fine Appliances Ltd. workers are selected at random, with no standard procedure. Identify and explain the principles of F. W. Taylor violated in each case.
6. Keshav paid the builder the full ₹5 crores but was not given possession of the flat. Under the Consumer Protection Act, 2019, which redressal mechanism can he use, and what is its composition?