Examples of departmental undertakings are:
(i) Posts
(ii) Atomic power
(iii) Railways
(iv) Radio and Television
(v) Defence Industries, etc.,

The person holding a share is called shareholder who has the interest in the assets and profits of the company.

This agreement was made to ensure free and fair trade in agriculture. This agreement made the developed countries reduce customs duties on their imports and subsidies on the export of agricultural products. But developing countries were exempted from making reciprocal offer keeping in view of high dependence of these countries on agriculture.

It is a place in the harbour where the goods are kept for loading into the ship.

Micro Units Development Refinance Agency Bank.

Property inherited upto 4 generations of male lineage(i.e., father; grandfather etc.) is called ancestral property. The right to a share in such a property accrues by birth itself.

An organisation defines its principles in a written document called code.

(i) Discretionary Responsibility
(ii) Economic Responsibility
(iii) Legal Responsibility
(iv) Ethical Responsibility

(i) Producers and traders may not have the required funds at the time of their need.
(ii) The problem of finance affects the producer, trader and the consumer.
(iii) This Hindrance is known as Hindrance of Finance.

"Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, pay order or otherwise".

(i) Federation of Indian Chambers of Commerce and Industry (FlCCI), New Delhi.
(ii) Associated Chamber of Commerce and Industry (ASSOCHAM).
(iii) Confederation of Indian Industry (Cll).
(iv) Madras Chamber of Commerce, Chennai.·
(v) Tamil Nadu Traders Associations.

Industrial revolution helped all-round growth of industries. Private entrepreneurs worked, only for profit motive. The exploitation of consumers and workers by private entrepreneurs became very common. The development of industries was left to the judgement of private enterprises. Therefore, government's control or intervention became a necessity to safeguard the interests of the general public.

A Foreign Exchange Bank deals with foreign exchange transactions. It acts as a businessman in buying and selling foreign currencies. It grants loans to exporters and importers. These banks opens a letter of credit in favour of importer which enables him to meet his foreign currency needs. Thus, foreign exchange banks encourages flow of foreign investment into India and capture international capital markets.

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.

Common carrier is a person who is engaged in the business of carrying goods for hire indiscriminately for all persons.

Private limited company is a type of company which is formed with minimum two shareholders and two directors, The minimum requirement with respect to authorised or paid up capital of Rs 1,00,000 has been omitted by The Companies (Amendment) Act, 2015 w.e.f. 29th of May, 2015. Another crucial condition of a private limited company is that it by its articles of association restricts the right to transfer its shares & also prohibits any invitation to the public to subscribe for any securities of the company. The maximum of 200 persons can become shareholders in the company. A private Limited company can be formed in three variations. .
i. As a private limited company
ii. As a small private limited company
iii. As a One Person Company (OPC).

The following are the characteristics of Business Finance:
(i) Business Finance companies of all types of Funds namely short, medium and term used in the business.
(ii) All types of organisations namely small, medium and large enterprises require Business Finance.
(iii) The volume of Business Finance required varies from one business enterprises to another depending upon its nature and size. In other words, small and medium enterprises require relatively lower level of Business Finance than the large scale enterprises.
(iv) The amount of Business Finance required differs from one period to another. In other words, the requirement of Business Finance is heavy during the peak season while it is at low level during the dull season.
(v) The amount of Business Finance determines the scale of operations of Business Enterprises.

Logistics is used for the following decisions:
Product design, Plant location, Choice of markets/sources, Production structure, Distribution/Dealer network design, Location of Warehouses, Plant Layout and Logistics, Allocation Design, Production Planning, Inventory Management-Stocking Levels, Transportation-mode Choice, Shipment Size and Routing Decisions, and Transport Contracting, Packaging, Materials Handling, Warehousing Operations.

Origin of RBI:
1. The imperial bank of India carried out the note issue and other functions of the Central Bank.
2.  In 1926 the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J.M. Keynes and Sir Ernest Cable were its members) made recommendations to create a Central Bank.
3.  As a result, the RBI Act 1934 was passed and RBI launched in its operations from April 1, 1935.
4. RBI was established with a share capital of Rs.5 crores divided into shares of Rs.100 each fully paid up.
5. The entire share capital was owned by the private shareholders. Its head office was in Calcutta and moved to Mumbai in 1937.
6. After independence, the Government of India passed Reserve Bank (Transfer to Public Ownership) Act, 1948 and took over RBI after paying appropriate compensation to the private shareholders.
7. From January 1, 1949, RBI started functioning as a government owned central bank of India.
8. It had three departments. The RBI was the central bank of Burma until 1947, and the central bank of Pakistan until June 1948.

Formation of a co-operative society:
It must be registered under the co-operative societies Act 1912 or any other state co-operative law.
A co-operative society can be started with a minimum of 25 persons, having a common interest. An application has to be submitted to the Registrar of co-operative societies expressing their intention.
The application form is known as 'Memorandum of Association'. It should contain the name and address of the society its objectives, the capital and liability of the members. A copy of the bye-laws slating the rules and regulations of the society should be attached along with the application form.
The system of management procedure with regard to meetings resolutions are stated in the bye-laws. The Registrar will carefully scrutinise the documents in order to ensure that they are in accordance with the provisions of the Act. When he is fully satisfied he will enter the name of the society in his register and issue the 'Certificate of Registration'. By issue of this certificate the society comes into existence as a body corporate having a separate legal entity.

Commercial Banks:
Most of the commercial banks extend foreign currency loans for promoting business opportunities. The loans and services of various types, provided by banks differ from country to country
International Agencies and. Development Banks:
International agencies and Development banks play an important role to promote international trade and business. They provide term loans and grants. to promote the development of economically backward areas in the world. International Finance Corporation (IFC), EXIM Bank and Asian Development Bank are the agencies operating at International level to meet the needs of the international finance.
International Capital Markets:
Modern organisations including multinational companies depend upon sizeable borrowings in rupees as well as in foreign currencies. Prominent financial instruments used for this purpose are Depository Receipts.

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.

Home trade consists of two main subdivisions namely
Wholesale trade:
"Purchase of goods In bulk from the manufacturers and selling them in smaller quantities to other intermediaries" IS known wholesale trade.
Retail Trade:
Retail trade deals with the distribution of goods in small quantities to the consumers.

Code of business ethics:
Code of Ethics documents the generally accepted principles of Ethical conduct. They are statements of values and principles which define the purpose of an organisation. It gives a clear picture of the standards that employees should follow. It guides them in decision making.
The code of Business Ethics can include the following:
(1) To offer goods at Fair prices.
(2) To supply goods of good quality and not to deal in spurious and sub-standard . products.
(3) To listen to consumer's complaints and to reduce them.
(4) Not to resort hoarding and black marketing.
(5) Not to resort to price cutting with the sole aim of Killing competition.
(6) Not to issue advertisement containing false information or exaggerated claims.
(7) To pay fair wages to its employees and .not to exploit them.
(8) To provide congenial work atmosphere ..
(9) To design production process in such a way as to reduce Environmental pollution.
(10) To keep proper books of Accounts and Records.
(11) To pay Taxes regularly.
(12) Not to overlook Government rules and regulations even at the time of incurring losses.

(i) More Production and Economic growth:
(1) These Banks supply the Vitamin money to all sectors of the economy including manufacturing sector.
(2) As a result all the sectors produce more.
(ii) Capital Formation:
(1) Banks encourage savings habit among people and accumulate their small dormant savings.
(2) These funds can be fruitfully channelised for productive purposes of the Economy.
(iii) Consortium Finance :
(1) Thousands of crores required to establish a mega factory is not available from a single source.
(2) Banks join together and provide consortium Finance in such cases.
(iv) Service coverage to Non-monetised sector:
(1) Banks transfer funds from Surplus areas and make them available in scarce districts or areas for the formation and operation of Business institutions.
(2) Even growth of different regions can be achieved through this function.
(v) Smoothing of Trade and Commerce:
(1) For the efficient functioning of all traders and Business institutions in a country, safe keeping of their funds, transfer of funds, payment and collection of funds when and where needed is very much necessary. Banks perform this function.
(vi) Development of industry, agriculture, MSME's and SHG's :
(1) Banks design methods and instruments of Financing each sector differently.
(2) They provide finance for small farmers, medium traders as well as industries.
(3) For Example : Banks allow micro credit to SHGs, overdraft to traders and issue of certificate of deposits to finance industries.
(Vii) Implementation of Monetary Policy :
(1) Banks have established customer relationship with all public and business institutions through the network of branches.
(2) Broad guidelines or rules of the government for the monetary sector of a country cannot be applied without such banks.
(viii) Encourages Export and International Trade:
(1) Banks open Foreign branches or establish correspondent relationship with banks in Foreign countries to help Exporters.
(2) Instruments like letter of Credit and International factoring services are undertaken to help Exporters and Importers.
(ix) New Entrepreneurs and Employment  opportunities :
(1) Entrepreneurs obtain project loans and establish new Business.
(2) By providing the required credit banks generate more economic activities and new employment opportunities.

Sl .No	Basis	Direct Taxes	Indirect Taxes
1	Meaning	If a tax levied on the income or wealth of a person is paid by that person (or his office) directly to the Government, it is called a direct tax.	If tax is levied on the goods or services of a person is collected from the buyers by another person (seller) and paid by him to the government is called indirect tax.
2	Incidence and impact	Falls on the same person. Imposed on the income of a person and paid by the same person.	Falls on different persons. Imposed on the sellers but collected from the consumers and paid by seller.
3	Burden	More income attracts more tax. Tax burden is progressive	Rate of tax is flat on all individuals. Therefore more income individuals pay less and lesser portion of their income as tax. The tax burden is regressive.
4	Evasion	Tax evasion is possible	Tax evasion is more difficult
5	Inflation	Direct tax helps in reducing inflation	Indirect tax contributes to inflation
6	Shiftability	cannot be shifted to others	can be shifted to others.
7	Examples	Income Tax, Wealth Tax, Capital gain Tax, Perquisites Tax,	GST, Excise Duty, Customs Duty.

Arguments against social responsibilities:
Critics of the social responsibility concept put forward the following arguments.
(i) Lack of conceptual clarity :
(1) The concept of Social responsibility is very vague and amenable to different interpretations.
(2) There is no consensus on its meaning and scope.
(3) In such a situation, it would be futile as well as risky to accept social responsibility.
(ii) Dilution of Economic goals :
(1) By accepting social responsibility, business compromise with Economic goals
(2) Business is an Economic Institution and its only responsibility is to make maximum possible profits for its owners.
(3) It would endanger its Economic viability by accepting any other responsibility.
(iii) Lack of Social skill :
(1) Business organisations and their managers are not familiar with social affairs.
(2) There are special social service organisations such as Government and Non-governmental Agencies which can better deal with Social problems.
(iv)  Burden on consumers:
(1) If Business deals with Social problems, cost of doing Business would increase.
(2) These costs will be passed on to consumers in the form of higher prices or will have to be borne by owners.
(3) This would lead to taxation without representation.
(v) Responsibility without power:
(1) Business organisations possess only economic power and not social power.
(2) It is unjust to impose social responsibilities with social power.
(3) If Business is allowed to intervene in social affairs it may perpetuate its own value system to the detriment of society.
(vi) Misuse of Responsibilities: 
(1) Acceptance of social responsibilities will involve diversion of precious management time and talent on social action programmes.
(2) It may result in dilution of valuable corporate resources.
(vii) lack of Yard stick :
(1) Profitability is the common .criteria for decision - making in Business.
(2) Tampering it with social responsibility would make the decision-making process quite complex and controversial.
(viii) Improper role:
(1) The proper role of Business is to use  its resources and energies efficiently so as to earn the best possible return .on Investment within the confines of law and ethics.
(2) Business should concentrate on economic performance leaving social service to other organisations.
(ix) Overloading Responsibility :
(1) Business organisations are already serving society by providing goods and services, generating employment, developing technology and contributing to public exchequer through tax payments.
(2) It would be unjust to overburden them with further responsibilities.

Types of Insurance:
Insurance covers different types of risks. All contracts of insurance can be broadly classified as follows:
i. Life Insurance (or) Life Assurance
ii. Non-life Insurance (or) General Insurance
It can be further classified into:
i. Fire Insurance
ii. Marine Insurance
iii. Health Insurance
iv. Miscellaneous Insurance.
a) Life Insurance:
Life Insurance may be defined as a contract in which the insurance company called insurer undertakes to insure the life of a person called assured in exchange of a sum of money called premium which may be paid in one lump sum or monthly, quarterly, half yearly or yearly and promises to pay a certain sum of money either on the death of the assured or on expiry of certain period.
Importance of Life Insurance:
i. Life insurance provides protection to the family at premature death of an individual.
ii. It gives adequate amount at an old age when earning capacities are reduced.
iii. Life insurance is not only a protection but is a sort of investment because a certain sum is returnable to the assured at the time of death or at the expiry of a certain period.
b) Non-Life Insurance:
It refers as the insurance not related to human but related to properties. .
i) Fire Insurance:
Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period upto the amount specified in the policy.
ii) Marine Insurance;
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. 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) Health Insurance:
In mid 80's, most of the hospitals in India were government owned and treatment was free of cost. With the advent of Private Medical Care, the need for Health Insurance was felt and various Insurance Companies introduced Health Insurance as a Product. Presently the health insurance exists primarily in the form of 'Mediclaim policy'.

Advantages of Public Corporation:
a) Bold Management due to Operational Autonomy:
i. A public corporation enjoys internal operational autonomy; as it is free from Governmental control. It can, therefore, run in a business like manner.
ii. Management can take bold decisions involving experimentation in its lines of activities, taking advantage of business situations.
b) Legislative Control:
i. Affairs of a public corporation are subject to scrutiny by Committees of Parliament or State Legislature.
ii. The Press also keeps a watchful eye on the working of a public corporation.
iii. This keeps a check on the unhealthy practices on the part of the management of the public corporation.
c) Qualified and Contented Staff:
i. Public corporation offers attractive service conditions to its staff. As such it is able to attract qualified staff.
ii. Because of qualified and contented staff, industrial relations problems are not much severe.
iii. Staff has a motivation to work hard for the corporation.
d) Tailor-Made Statute:
The special Act, by which a public corporation is created, can be tailor-made to meet the specific needs of the public corporation; so that the corporation can function in the best manner to achieve its objectives.
e) Not Affected by Political Changes:
i. Being a distinct legal entity, a public corporation is not much affected by political changes.
ii. It can maintain continuity of policy and operations.
Disadvantages of Public Corporation:
a) Autonomy and Flexibility, Only in Theory:
i. Autonomy and flexibility advantages of a public corporation exist only in theory
ii. In practice, there is a lot of interference in the working of a public corporation by ministers, government officers and other politicians.
b) Misuse of Monopolistic Power:
i. Public corporations often enjoy monopoly in their field of operation.
ii. As such,on the one hand they are indifferent to consumer needs and problems; and on the other hand, often do not hesitate to exploit consumers.
c) Rigid Constitution:
i. The constitution of a public corporation is very rigid.
ii. It cannot be changed, without amending the Statute of its formation. Hence, a public corporation could not be flexible in its operations.
d) Low Managerial Efficiency:
i. Quite often civil servants, who do not possess management knowledge and skills, are appointed by the government on the Board of Directors, of a public corporation.
ii. As such, managerial efficiency of public corporation is not as much as found in private business enterprises.
e) Problem of Passing a Special Act:
A public corporation cannot be formed without passing a special Act; which is a time consuming and difficult process. Hence, the scope for setting up public corporations is very restricted.

(i) Pack Animals :
(1) Animals like horse, mule, donkey camel, and elephant etc., are used for carrying small loads in backward areas, hilly tracks, forest regions and deserts known as pack animals.
(2) Generally, the pack animals serve areas are inaccessible to modern means of transport.
(3) Animal transport has also played a significant role where there is no road and railway transport
(ii) Bullock Carts :
(1) It constitutes the predominant form of rural transport in India for goods traffic and to some extent for passengers traffic.
(2) It links up the villages with the nearby markets and railway stations. It carries the produce for sale to the market and consumer goods to the villages.
(iii) Motor lorries and Buses:
(1) From the dawn of civilization, people have been endeavoring to form roads and use wheeled vehicles to facilitate transport of men and materials.
(2) The credit of revolutionizing the road transport and introducing the elements of speed and greater carrying capacity into the system goes to motor Lorries and buses.
(3) Introduction of petrol engine and later diesel engine have been offering good competition to the railways.
(iv) Tramways:
(1) It made their appearance in the 19^th century as a form of transport suitable for big cities.
(2) Tramways were initially horse drawn later steam-powered and now electrically operated. Its carrying capacity is large.
(3) They are able to cope up with the peak hour traffic in big cities with the greater popularity of motor buses, tramways slowly declined. Madras city had tramways till 1933.
(v) Railways:
(1) The invention of steam engine by James Watt,revolutionized the mode of transport all over the world.
(2) Railway, as a mode of transport is the most organized transport undertaking all over the world.
(3) Railways are the cheapest and quickest means of transport for carrying heavy goods over long distance.

Based on the Ownership Pattern:
Any bank in which not less than 51 percent of shares are owned by the Government are called Government banks or public sector commercial banks (Total 21). All nationalized banks (19 banks, in 2017), SBI and IDBI Ltd. are public sector commercial banks. All of them are joint stock company type banks. There are corporation type banks. Each corporation type bank is established by a separate Act of Parliament and is fully owned by Government of India.
Examples: IFCI, SIDBI, EXIM Bank, etc.
All banking companies owned by private people are called private sector commercial banks. All cooperative banks are owned by its members from the public. In 1969, there were 14 private banks. They were concentrated in cities and towns. Their objective was to earn more profits. In order to channelize the funds with these commercial banks towards national priorities and to develop agricultural and rural sector, nationalization of banks was undertaken. Government paid the share capital of those banks to the private owners and took over as Government banks. This is called nationalization of banks. 6 more banks were nationalised in 1980. New Bank of India one of the nationalised bank merged with Punjab National Bank in 1980 and today there only 19 nationalised banks (2017).
Examples:
1. Nationalised banks: Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce.
2. Public sector banks: State Bank of India, IDBI Bank Ltd. and all nationalised banks.
3. Private sector banks: Lakshmi Vilas Bank, Karur Vysya Bank, Kotak Mahindra bank.
Note Bharatiya Mahila Bank established on 19, November 2013 to serve exclusively women members of the public was merged with SBI on 31 March, 2017.

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.

Low Cost Labour:
MNC set up their facilities in low cost countries and produce goods/service at lower cost. Because of MNCs, poor host countries also begin to develop technically.
Proper Use of Idle Resources :
Because of their advanced technical knowledge, MNCs are in a position to properly utilise idle physical and human resources of the host country.
Technical Development :
MNCs carry the advantages of technical development of 10 host countries.
Managerial Development:
MNCs employ latest management techniques. People employed by MNCs do a lot of research in management,
Improvement in Standard of Living:
By providing super quality products and services, MNCs help to improve the standard of living of people of host countries.

Sl.No	Basis	Contract	Agreement
1	Definition	A contract is an agreement enforceable by law	An Agreement is every promise or every set of promises forming consideration
2	Enforceability	Every contract is enforceable	Every promise is not enforceable
3	Inter-relation-ship	A contract includes an agreement	An Agreement does not include a contract
4	Validity	Only legal agreements are called contracts.	An agreement may be both legal and illegal
5	Legal obligation	Every contract contains a legal obligation	It is not necessary for every agreement to have legal obligation.