The advantages of multiple shops are:
(i) Economies of large scale:
Multiple shops are owned and operated by manufacturers or intermediaries. Centralised and bulk buying/ results in lower costs.
(ii) Elimination of middlemen:
Goods are sold in multiple shops at relatively low prices. By selling directly to the consumers, it is able to eliminate unnecessary middlemen.
(iii) No bad debts:
All the sales are made in these shops on cash basis only. So, no bad debts will arise and no reduction of working capitals.
(iv) Convenience in shopping:
Shops are located in all important areas. Therefore, customers are not required to travel long distances for long distances for making purchases.
(v) Public confidence:
Multiple shops enjoy public confidence due to fixed prices, standard quality, uniform appearance and selection of goods with the help of salesmen.

The procedures relating to export trade are:
(i) Receiving trade enquiry.
(ii) Receiving indent and sending confirmation.
(iii) Arranging Letter of Credit.
(iv) Obtaining Importer Exporter Code (lEC) and RBIcode Number.
(v) Obtaining Registration cum Membership Certificate (RCMC) from Export Promotion Council/Commodity Board.
(vi) Manufacturing/procuring goods and packing items.
(vii) Export Inspection Certificate.
(viii) Insurance of goods.
(ix) Certificate of origin.
(x) Consular invoice.
(xi) Engagement of forwarding agent. .
(xii) Dispatch of goods to port and sending the receipt to agent.
(xiii) Fulfilment of Customs Formalities by Forwarding Agent.
(xiv) Customs Clearance.
(xv) Preparation of commercial invoice and submitting documents to bank.
(xvi) Securing Payment.

Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders. Certain suppliers, called distributors, supply finished products to the consumers. The responsibilities of business towards these suppliers are:
(a) Giving regular orders for purchase of goods.
(b) Dealing on fair terms and conditions.
(c) Availing reasonable credit period.
(d) Timely payment of dues.

Container ships are specially constructed for the transport of cargo in containers. Goods packed into containers are loaded on container ships and delivered to the consignee in the same manner. Container ships are becoming very popular in the present day of increasing demand for goods.

The following are the unethical practices of lending by informal money lenders:
i) Charging very high rate of interest on daily basis.
ii) Collecting back the loans through money and muscle power.
iii) Ill-treating the borrowers to the core, sometimes leading to suicides
iv) Being highly choosy about the borrowers rather than the project financed.

The current account balance includes two items
(i) Visible trade - Import and export of goods.
(ii) Invisible trade - Invisible service items like banking, shipping, insurance, travel and transportation.

1. Entrepot trade means importing of goods from one country and exporting the same to foreign countries.
2. It is also known as 'Re-export trade'.
3. E.g. Indian diamond merchants in Surat import uncut raw diamonds from South Africa.
4. They cut and polish the diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam..

Following are the indirect channel :
1. Contract Distributors or Contract Logistics.
2. Manufacturer - Value Added Reseller (VAR) or Distributor Customer.
3. Manufacturer - Channel partner - Consumers.
4. Manufacturer - Franchisor - Consumers
5. Manufacturer - Retailer - Consumers
6. Manufacturer - Wholesaler - Retailer - Consumer
7. Producers - Agent -Wholesaler - Retailer - Consumer
8.  Manufacturer - Authorised Dealers - Consumers.

National Bank for Agricultural and Rural Development (NABARD) has defined Self Help Group as "a homogenous group of rural poor voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group to be lent to the members for meeting their productive and emergent credit needs".

(i) Marine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses.
(ii) The insured pays the premium in consideration of the insurer's (underwriter's) guarantee to make good the losses arising from marine perils or perils of the sea.
(iii) Marine perils can be collision of ship with the rock, fire, ship attacked by the enemies, etc. These perils cause damage, destruction or disappearance of the ship and cargo and nonpayment of freight.
(iv) Through marine insurance policy, the insurer undertakes to compensate the owner of a ship or cargo'for complete or partial loss at sea.
The Essential' elements of Marine Insurance Contracts are:
1. It is based on the principle of indemnity
2. The contract is based on utmost good faith.
3. The insurable interest must exist at the time of loss.
4. The principle proximate cause will apply to marine loss only.

(i) Economic activities:
Commerce deals with all economic activities undertaken for profit.
(ii) Exchange of goods and Services:
Commerce involves an exchange of goods and services for profit.
(iii) Earning Motive :
Profit is an incentive for undertaking all commercial activities.

A contract can be discharged by the operation of law. The operation of law by which the contract can be discharged are as follows :
(i) By Death:
If the contract depends on the personal skill or ability, then such contract may be discharged on the death of the promisor.
(ii) By Merger:
Merger will take place when inferior rights accruing to the same party either under the same or another contract.
(iii) By insolvency:
An insolvent is discharged from all Liabilities incurred prior to his adjudication.
(iv) Unauthorised alteration of the terms of the contract:
If one party makes any material alteration in the contract without the consent of other party, then the other party can avoid the contract.
(v) Rights and Liabilities vesting in the same person:
Where the Rights and Liabilities become vested in the same person, the other parties are discharged.

Crop Insurance:
This policy is to provide financial support to farmers in case of a crop failure due to drought or flood. It generally covers all risks of loss or damages relating to production of rice, wheat, millets, oil seeds and pulses etc.

(i) The chamber of commerce and Industry is an Association of business and Industrial houses like merchants, financiers, manufacturers, etc. in a locality, region, or state.
(ii) The main objectives of these associations is to promote and protect the interest and goals of Indian Commerce and Industry
(iii) These associations are non-profit making organisations and its member are institutional members.
Functions:
(i) They act as national guardians of trade, Commerce and Industry.
(ii) They act as a catalyst in strengthening the internal trade of the country.
(iii) Interact with Government with regard to formulation and implementation of related policies.

Functions of SAARC are highlighted:
(i) Monitoring and co-ordinating the development programmes.
(ii) Determining inter-sectoral priorities.
(iii) Mobilizing co-operation within and outside the region.
(iv) Dealing with modalities of financing.

Liability:
Except the Karta, the liability of all other members is limited to their shares in the business. The Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and amount of debt can be recovered from his personal property.

The RBI is governed by a Central Board of Directors. The 21 member board is appointed by the Government of India. It consists of :
(i) One Governor and four Deputy Governors appointed for a period of four years.
(ii) Ten directors from various fields.
(iii) Two government officials
(iv) Four directors - one each from local boards.

Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

The foreign direct investments take the following forms:
1. Establishment of a new enterprise in a foreign country.
2. Expansion of existing branch or subsidiary in a foreign country.
3. Acquisition of enterprise located in a foreign country.

The types of Business Risks are:
(i) Speculative risks:
Speculative risks are the kind of risks which have the possibility of gain as well as the possibility of loss. Such risks are the result of market conditions . Favourable market conditions result in gains whereas unfavourable market conditions result in losses.
Example: Use of better technology helps to produce better quality products at cheaper prices. This may increase the demand and thus result in higher profits.
(ii) Pure risks:
Pure risks are the type of risks where business suffers loss only if the risk occurs. Non-occurrence of such risks leads 'to absence of loss.
Example: Business may suffer loss only if fire, theft or strike occurs.
(iii) Insurable risks:
Insurable risks are the type of risks where business can insure the probable losses by paying a predetermined premium to an insurance company. At the time of loss the insurance company pays compensation on the basis of agreed terms and conditions. Loss arising from natural and physical risks can be insured as the probability of risk can be determined .
Example: Company can insure its stock against fire or theft and if it loses its stock due to fire or theft in office, the insurance company pays compensation only up to a extent of the value lost.
(iv) Uninsurable risk:
Losses arising from unforeseen natural events, political changes or trade cycles are called uninsurable risks. Loss due to earthquake or flood or cyclone cannot be estimated and their probability cannot be calculated. Government directly takes care of the affected persons. Losses to businesses due to policy decisions of ruling political parties in a country, or due to economic depression cannot be insured. These uninsurable risk events are called uncertainties. The concept of risk is different from uncertainty. During uncertain events decisions cannot be taken.