E-Business is a broader term which includes internal and external transaction of an organization across the internet.

Nowadays smart card is used for day to day purposes.
1. Strong device security.
2. Biometrics

According to K.K. Sexena, "the transport system acts with reference to the area it serves in the same way as a candle does in a dark room".

The units which requires less capital, employ small number of workers and produce the goods on small scale is known as Small Scale business.

1. The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him.
2. A member is liable to pay only the uncalled money due on shares held by him.

(i) Professions are those occupations which involve rendering of personal services of a special and expert nature.
(ii) It includes professional activities.
(iii) People engaged in a profession are known as Professionals.
For Example: Lawyers, Doctors, Engineers and Chartered Accountants.

The night market was called as Allangadi.

Relation between bank rate and other interest rates:
Bank rate policy will be successful only if the lending rates of banks change corresponding tothe movement of bank rate.
Existence of eligible bills:
The existence of eligible bills with commercial banks is a necessary condition for the effectiveness of bank rate policy.
Practice of rediscounting:
It can succeed only if commercial banks have the practice of rediscounting eligible bills with the Central bank.
No direct relation between interest and investment:
According J.M. Keynes it is difficult to establish a direct relationship between the changes in rate of interest on the one side and investment on the other side.

Public warehouses offer storage facilities to the public in return for a storage fee. The storage fee varies according to space occupied and period of storage. They operate under government license and regulations. These warehouses are well equipped for easy handling and for the preservation of atmospheric conditions. Public warehouse will retain the goods until their charges are paid. If the rent is not paid they may even sell them. Public warehouses issue warehouse keeper's certificate or warehouse warrant.

(i) Health Insurance is a type of Insurance which provides an Insurance cover for financial loss associated with illness and injuries.
(ii) A Health Insurance policy is a contract between an insurer (company) and insured (i.e. Individual or group) under which the insurance company undertakes to provide specified health insurance benefit to the insured in consideration of a Fixed Price called premium payable in a lump sum or in instalment.
(iii) Health Insurance is taken as safe guard against rising medical costs. It provides risk coverage against unforeseen health expenditure.
(iv) The rate of premium charged and the extent of cover provided by the Health Insurance depends on the specific policy taken under the Health Insurance contract.
(v) With a advent of private medical care, the need of health insurance was felt and various insurance companies introduced health insurance or mediclaim insurance as a product.

i. Electronic Banking reduces cost and time and makes banking service convenient to the customers. It is operated through internet.
ii. This service is a substitute for drafts, cheques and other paper based transfer of funds.

SL. No.1 Characteristics Factoring Forfaiting 1. Basis of financing Financing is dependent on exporter's credit standing. Financing is dependent on the availing bank's financial standing 2. Cost Cost is borne by the seller. Cost is borne by the overseas buyer 3. Suitability For transactions of short-term maturity period. For transactions of medium-term maturity period 4. Extent of Financing Only a certain per cent of receivables factored is advanced. Full finance is available. 5. Risk Risk can be transferred to seller All risks are borne by the forfeiter

There are primarily two types of franchising:
Product/ trade name franchising:
1. In this type, the franchisee exclusively deals with a manufacturer's product.
2, Examples include Kidzee, French Loaf outlets.
Business format franchising:
1. When a franchisor awards rights covering all business aspects as a complete business package to the franchisee it is called as business format franchising.
2. Examples are McDonald's, Pizza Hut.

Warehouse warrant	Warehouse receipt
1. It is a document of title of goods.	1. It is not a document of title of goods.
2. It is not only an acknowledgment for the receipt of goods but also gives an authority to get delivery of goods by the owner or by third party.	2. It is only an acknowledgment for the receipt of goods.
3. It can be negotiated or transferred to others.	3. It cannot be transferred to others.
4. It can be given a collateral security for getting financial assistance.	4. It cannot be given as collateral security.
5. Delivery of goods effected by surrendering this warrant with endorsement.	5. Delivery is effected by surrendering this receipt with letter  from depositor.

Characteristics	Factoring	Forfeiting
Basis of financing	Financing is dependent on exporter's credit standing	Financing is dependent on the availing bank's financial standing
Cost	Cost is borne by the seller	Cost is borne by the overseas buyer
Suitability	For transaction of short-term maturity period	For transactions of medium-term maturity period
Extend of financing	Only a certain percent of receivables factored is advanced	Full finance is available
Risk	Risk can be transferred to seller	All risks borne by the forfeiter

Chartered Companies:
Chartered companies are established by the King or Queen of a country. Powers and privileges of these companies are specified in the charter. The cancellation of power is in the hands of King/Queen. E.g East Indian Company, Bank of England etc.
Statutory Companies:
Companies are established by a Special Act made in the Parliament/State Assembly. The Constitution of the company is specified in the Memorandum of Association. The rules are specified in the Articles of Association. Statutory companies enjoy autonomous status. It need not use the word 'Limited' next to its name.
Association Not for Profit:
According to section 25, the Central Government may, by license, grant that an association may be registered as a company with the limited liability, without using the words 'Limited' or 'private limited' as part of its name. The license will be granted only in the case of 'association not for profit'. Such companies may be public or private companies and may or may not have share capital.

(i) Economic activities are undertaken to earn money.
(ii) Generally, people engage themselves in such activities on a regular basis and are said to be engaged in their occupation.
(iii) Occupations may be classified into three categories based on the following:
(1) Employment
(2) Profession
(3) Business
(1) Employment:
(a) It refers to the occupation in which people work for others and get remuneration in the form of wages or salaries.
(b) The one who is employed by others are called employees and the one who employs others is called employer.
(c) Managers, Clerks, Bank officials, Factory workers etc., are examples of employees.
(2) Profession:
(a) Professions are those occupations which involve rendering of personal services of a special and expert nature.
(b) A profession is something which is more than a job. It is a career for someone who is competent in their respective areas.
(c) It includes professional activities which are subject to guidelines or codes of conduct laid down by professional bodies.
(d) Those engaged in a profession are called professionals and. they earn income by charging professional fee.
(3) Business :
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, purchase and sale of goods and services.

The mutual rights and obligations are usually stated in the partnership deed.
Rights of a Partner:
(i) Right to take part in business: Every partner has a right to take part in the management of the business.
(ii) Right to be consulted: Every partner has the right to be consulted in all the matters concerning the firm.
(iii) Right of access to book, record, and document: Every partner has the right of access to all records and books of accounts, and to examine and copy them.
(iv) Right to share profit: Every partner is entitled to share the profits in the agreed ratio.
(v) Right to be indemnified: Every partner has the right to be indemnified by the firm for all acts of other partners in the ordinary course of the business.
(vi) Right to use partnership property for the business: Every partner has the right to use partnership property for the purpose of the partnership.
(vii) Right to continue: Every partner has the right to continue in the firm.

Based on the functions of banks:
a) Central Bank:
1. RBI was the Central Bank of India. The functions of the RBI
2. RBI regulates and supervises the whole banking system in the country.
3. It controls the credit in the country
4. RBI has the sole right of note issue.
5. It acts as the banker for the government.
6.It acts as bankers bank.
b) Commercial Banks:
1. Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport, etc. in order to earn profit.
2. Their lending is in comparatively small amounts and mostly for short and medium period.
3. They also provide other services like remittance of funds, safe keeping of valuables, collection of cheques, issue of letters of credit, etc.
Examples:
i. State Bank of India
ii. Karur Vysya Bank
iii. Standard Chartered Bank
c) Development Banks:
1. Huge finance required for investment, expansion and modernisation of big industries and others are granted by a separate type of banks called development Banks.
2. They are also called industrial banks. The objective of development banks is not profit.
3. Their aim is to develop the country and create employment opportunities. Finance is provided by them for medium and long terms ranging from five to twenty years.
4. Development banks do not accept deposits from the public.
Examples:
Industrial Finance Corporation of India - IFCI
Small Industries Development Bank of India -SIDBI
d) Cooperative Banks:
All cooperative banks in India are owned by its customers or members who are farmers, small traders and others.
Cooperative banks in India are either urban based or rural based.
Rural cooperative banking structure in India has three tier structure for short term loans and two tier structure for long term loans (refer chart).
For both these structures the apex body is National Bank for Agricultural and Rural Development - NABARD.
Examples:
i. National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) was set up in 1958 and registered under the Multi State Co-operative Societies Act.
ii. Tamil Nadu State Apex Cooperative Bank - Head Office, Chennai.
iii. Madurai District Central Cooperative Bank Ltd.
iv. Batlagundu Cooperative Urban Bank Ltd. Dindigul District.
e) Foreign Banks:
1. Banks which have registered office in a foreign country and branches in India are called foreign banks.
2. These banks open their offices in big cities and port towns only. Mostly they serve the interests of the multinational companies, employees and other business institutions.
3. Their profitability is higher than Indian banks. In 2017, there were 42 Foreign Banks in India and all of them were scheduled banks.
4. They have to oblige both their home country banking regulations and the RBI regulations.
Examples:
i. Bank of America - The USA
ii. Barclays Bank- The UK
iii. Deutsche Bank - West Germany
f) Regional Rural Banks - RRBs:
1. The RRBs were formed under the Regional Rural Bank Act 1976, jointly by the Central Government, State Government, and a sponsor bank.
2. Their share capital is contributed by these sponsors in the ratio of 50:15:35.
3. They are established as low cost institutions in rural areas.
4. Their objective is to develop rural economy and play supplemeñtary role to cooperative societies.
Examples:
i. Pandian Grama Bank, Tamil Nadu
ii. Pallavan Grama Bank, Tamil Nadu
g) Specialised Banks:
1. Some banks are created for special purposes by the Government.
2. Export and Import Bank of India was set up through Export-Import Bank of India Act, 1981.
3. Its main objective is to facilitate international trade of Indian businessmen.
4. EXIM Bank provides finance for import of technology export product development, pre-shipment and post-shipment and overseas investment.
Example
i. Export - Import Bank of India (EXIM Bank)
h) Local Area Banks:
1. Local Area Bank (LAB) scheme was introduced by the RBI in August 1996.
2. LABs are small private sector banks established in rural and semi-urban areas.
3. Each bank serves two or three adjoining districts only.
4. Their main objective is to mobilise rural savings (accept deposits) and invest them in the same areas.
Examples:
i. Coastal Local Area Bank, Vijayawada, Andhra Pradesh.
ii. Krishna Bhima Smruddhi Local Area Bank, Mahabubnagar, Andhra Pradesh.
iii. Subhadra Local Area Bank Limited, Kolhapur, Maharashtra.
i) Small Finance Banks:
1. Small Finance Banks (SFBs) are private sector banks set up in unbanked and underbanked regions of the country to achieve financial inclusion.
2. The objectives are; mobilising rural savings (accepting deposits) and providing credit to:
i. small and marginal farmers
ii. to micro and small industries and
ii. other unorganised sector entities.
j) Payment Bank:
1. Payment banks are formed to widen the spread of payment and financial services to small businesses, low-income households, and migrant labourers.
2. These banks should be fully networked from the beginning.
3. They offer doorstep banking payment for a small fees prescribed on the basis of the amount.
Examples:
i. Airtel Payment Bank Limited
ii. Paytm Payment Bank Limited and
iii. India Post Payment Bank Limited -IPPBs (Public Sector Bank).
k) Multilateral Development Banks - MDBs:
A Multilateral Development Bank is formed by the Governments of a group of countries. The member countries consist of developed donor countries and borrower countries. International Bank for Reconstruction and Development, Asian Development Bank, African Development Bank, and European Investment Bank are some of the MDBs.

The essential characteristics of business are as follows:
(i) Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.
(ii) Sale, Transfer or Exchange:
There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.
(iii) Dealing in Goods and Service :
Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.
(iv) Regularity of Dealing :
An isolated dealing in buying and selling does not constitute business. The transactions must be regular. For example, if a person buys a scooter for his use and later on disposes it of at a profit, he cannot be said to have been engaged in business. The buying and selling must be recurrent to constitute business.
(v) Profit Motive :
An important feature of business is profit motive. Business is an economic activity by which human beings make their living. It is, in fact, the attraction of profit which spurs people to do business.
(vi) Element of Risk :
The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessman. For example, change in consumer preference, shortage of raw materials, transport
bottlenecks, power-crisis, etc., may upset business calculations and result in loss. That is why profit is said to be reward for risk-taking. Thus any business activity includes an element of risk too.

(i) Warehouse Warrant:
(1) It is a document issued in favour of the owner or depositor of goods by the warehouse keeper.
(2) This is a document of title of goods and can be transferred by simple endorsement and delivery.
(3) To transfer all the goods the warehouse warrant is sufficient.
(ii) Warehouse Keeper's Receipt:
(1) It is a document issued by the warehouse keeper, which acknowledges the receipt of goods from the depositor of goods.
(2) It also shows the existence of an agreement to keep the goods in the warehouse subject to certain conditions.
(3) This is not a document of title to goods and it is not transferable.
(iii) Dock Warrant:
(1) Dock is a place in the harbor where the goods are loaded into the ship. Dock warrant is a document of title of goods issued by dock authorities.
(2) This document certifies that the dock authorities hold the goods. To take delivery of the goods this certificate should be given back to dock authorities.
(3) The right of getting delivery of goods can be assigned to third parties too.
(iv) Dock Receipt:
(1) Dock receipt is an acknowledgement of receipt of goods issued by dock authorities to the owner of the goods.
(2) It is not a document of title of goods. Therefore, the right of taking of delivery of goods cannot be transferred.
(v) Delivery Order:
(1) This is a document through which the depositor directs the warehouse keeper to deliver the specified goods either to the party mentioned in the document or to the bearer.
(2) The warehouse keeper delivers the goods as per the instruction. Transfer of ownership takes place through this document.
(3) To transfer all the goods the warehouse warrant is sufficient. If only part of the goods are to be transferred then the delivery order is needed. The delivery order is to be accompanied by warehouse warrant.