International finance is a branch of financial economics that deals with the monetary interactions that occur between two or more countries.

A monorail is like a train, but instead of having two sets of wheels that balances on a railway track, the monorail is balanced on top of one rail. Monorails are often used to transport people around large cities.

The remonetisation was carried out by issuing new Rs. 2000 and Rs. 500 currency notes.

The buying and selling of goods and services consists of trade. The essence of trade is to make goods and services available to those persons who need them and are able and willing to pay for them.

When the firm of a country sells goods and services to a firm of another country it is called as export trade.

Private Capital consists of Foreign Investments, long-term loans, and Foreign Currency Deposits.

(i) Business refers to those activities, which are connected with production, purchase and sale of goods or supply of services with the main object of earning profits.
(ii) People engaged in business are called businessman. They earn income in the form of Profits.

A business organisation is a coalition of several interest groups or stakeholders like shareholders, customers, employees, suppliers, etc.

Improvement in Balance of Payment Position:
i. MNCs help the host countries to increase their exports.
ii. As such, they help the host country to improve upon its Balance of Payment position
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.

Legal consultancy - because the organisation would rely solely on an individual's talent and therefore he need not consult anybody else regarding his business.

The important objectives of the export trade are :
(i) Facilitating selling of goods to countries which desperately need such goods.
(ii) Expanding the market for goods by producing them on a large scale.
(iii) Earning foreign exchange through exports.
(iv) Helping a country increase the national income.
(v) Creating employment opportunity in a country by promoting of export - oriented and export related enterprises.
(vi) Generating revenue for the Government in the form of customs and excise duties.
(vii) Promoting mutual understanding and co-operation among the nations.
(viii) Achieving optimum utilization of resources by large scale production of goods

Any partner may bring a suit in a court of law to get the partnership dissolved on any of the following grounds:
(i) Partner's insanity,
(ii) Permanent incapacity,
(iii) Persistent breach of agreement,
(iv) Misconduct of a partner,
(v) Transfer of share without consent of other partners,
(vi) Continuous loss,
(vii) Just and equitable grounds.

1. When the act agreed to be done is such that compensation in money for its non-performance is not sufficient. 
2. When it is probable that compensation in money cannot be received for the non- performance of the act agreed to be done.
3. When there is no standard for ascertaining the actual damage caused by the non-performance of the act agreed to be done.

1. Business exists to supply goods and services to the people from social point of view but from individual point of view, the primary objective of any Business unit is to make profit.
2. The individual objective should not be in conflict with societal objective.
3. These two objectives normally contradict each other, as one Business enterprise may be good in individual objective and bad at Societal objective and vice versa.
4. This raises the question of what is right and what is wrong.
5. The subject matter of Ethics is concerned with establishing linkages between individual good and social good. Ethical standards are often enacted into laws.
For Example : Charging fair prices to customers, using fair weights for measurement of commodities, giving fair treatment to workers, earning reasonable profits, etc.

The MSME sector contributes about 8% to Gross Domestic Product (GDP) besides 45% to the total manufacturing output and 40% to the exports from the country on the production of more than 6000 products. This sector consists of 36 million units and provides employment to over 8 crore people.

(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.

Diversified banking functions:
Competition in the banking industry has reduced their profits. Therefore the commercial banks started identifying and offering new and diversified financial services. They are purely other than banking services. Providing all such banking and other financial services is also called universal banking.

(i) Any rent or revenue derived from land which is situated in India and is used for agricultural purpose.
(ii) Agricultural income is fully exempted from tax u/s 10(1) and as such does not form part of total income.

The following are the characteristics of wholesalers :
1. The wholesaler buys goods directly from the producers or manufacturers.
2. Wholesalers buys goods in large quantities and sell in relatively smaller quantities.
3. Wholesaler sell different varieties of a particular variety of product
4. They employ a number of agents or workers for distribution of products.
5. They need large amount of Capital to be invested in his business
6. They generally provide credit facility to retailers.

The demerits of Foreign Trade are:
(i) Complicated procedure:
Export and import procedures are very complicated. A layman cannot understand them easily.
(ii) Economic dependence:
The underdeveloped country has to depend on the exporting country which leads to the exploitation of the developing country.
(iii) Adverse effect on the home industry:
International trade provides a threat to the smalland cottage industries at home. These industries cannot stand in competition to the developed countries products.
(iv) Import of harmful goods:
Import of luxury goods and harmful drugs hamper the well being of the people,
(v) World war:
Due to unhealthy competition, enmity among the countries may increase. This may lead to war between countries.
(vi) Political dependence:
It may make one country a slave of other country. Because economic dependence endangers the political stability of the dependent country.
(vii) Exhaust of natural resources:
With the intention of earning more money excessive use of natural resources may take place. This will cause the economic downfall of the country in the long run.

Tata Group is the best example for the corporate social responsibility in India. The Tata Group conglomerate in India carries out various CSR projects, most of which are community improvement and poverty alleviation programs. Through self-help groups, it is engaged in women empowerment activities, income generation, rural community development, and other social welfare programs. In the field of education, the Tata Group provides scholarships and endowments for numerous institutions.

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

Inland Waterways comprise of rivers, canals, and lakes. It is also known as internal water transport. Rivers that are naturally navigable are called natural waterways. Canals and canalized rivers belong to the category of 'Artificial Waterways'. Generally small boats and steamers are operated on rivers to transport people and goods. Where rivers are deep enough, large ships can also play on them. Canals are manmade waterways, constructed for the twin purposes of navigation and irrigation.

The court does not grant specific performance in the following cases:
1. Damages are an adequate remedy
2. The contract is not certain
3. The contract is inequitable to either party
4. The contract is of revocable nature
5. The contract is made by the trustee in breach of trust
6. The contract is of personal nature i.e., contract to marry
7. The contract made by a company ultra-vires of its Memorandum of Association
8. The court cannot supervise its carrying out.

The methods which influence the total volume of credit in Indian economy are called quantitative or general methods. An increase in the first three measures will reduce the volume of money in circulation in India and vice versa.
i. Bank Rate Policy:
Bank rate refers to the rate at which the RBI rediscounts the bills given by the Scheduled banks.
ii. Cash Reserve Ratio (CRR):
It is the ratio of Cash reserves with the RBI kept by Scheduled bank in proportion to the total Time and Demand Liabilities with them.
iii. Statutory Liquidity Ratio (SLR):
It is the ratio of money and money equivalents kept within the bank in proportion to the total Time and Demand Liabilities with them.
IV. Open Market Operations:
The RBI directly buys or sells the securities and bills in the money market either to decrease or to increase the total volume of money.

The following are the characteristics of Commerce.
(i) Economic activities:
(1) All economic activities are undertaken to earn Profit. commerce deals with all economic activities undertaken for profit.
(2) So, commerce is concerned with all economic activities directed towards earning profit.
(ii) Exchange of goods and services :
(1) Commerce involves an exchange of goods and services for profit.
(2) Goods may be produced for the purpose of resale to the consumers.
 (iii) Earning motive :
(1) Profit is an incentive for undertaking all commercial activities.
(2) Any activity, which does not have the incentive of profit, will not be a part of commerce.
For Example: If a trader gives some goods as Charity.
(iv) Creation of Utility:
Commerce creates form, place and time utility in goods.
(v) Regularity of transaction:
The transaction should be regular. No isolated transaction will be a part of commerce.

(i) High cost of operation :
(1) A departmental store requires a large building with ample parking at a central place. It has to incur heavy expenditure on salaries, maintenance of building, customer services, advertising, etc
(2) As a result, establishment and overhead cost of operation are very high
(ii) Higher Prices:
(i) Due to high operating costs, prices of goods in a departmental store are comparatively high.
(ii) Only rich persons can afford to buy goods at a departmental store.
(iii) Distance:
It is located at a central place of a city, away from people living in suburban areas have to travel a long distance to reach the store.
(iv) Lack of Personal Touch:
(i) The management of a store finds it very difficult to maintain personal contact with the consumers.
(ii) The salaried staff may not take interest in securing the satisfaction and goodwill of the consumers.
(v) Difficult to Establish:
A large amount of Capital investment and a large number of specialised persons are required to establish a departmental store.
(vi) High Risk:
Due to Central Location and large-scale operations, risk of loss is very high. Moreover, change in tastes and fashion and market fluctuations may lead to heavy loss

Functions/Role of WTO:
WTO performs the following functions:
(i) It is a forum for negotiation and formalisation of trade agreement among the member countries.
(ii) It settles disputes and grievances relating to trade among the member countries.
(iii) It frames commonly accepted code of conduct in order to reduce trade barriers.
(iv) It holds consultation with IMF and World Bank (IBRD) and its affiliates to bring about a greater understanding and co-operation in global economic policymaking.
(v) It supervises the operation of agreement relating to General Agreement on Tariffs and Trade (GATT) and Trade-related intellectual properties Rights (TRIPS).
(vi) It regulates trade between participating countries.

People invest the savings to gain financial security. They are investing their savings in a various investment avenues for various purposes. They may invest in various securities and wait for a stipulated period to get back their investments with higher value addition. Following are some of the personal investment avenues.
a) Public Provident Fund (PPF) :
(1) It is the safest long term investment option for the investors in India. It is totally tax-free.
(2) PPF Account can be opened in a bank or post office.
(3) The money deposited cannot be withdrawn before 15 years and an investor can earn compound interest from this Account.
(4) However, the investor can extend the time frame for the next five years if the investor does not opt to withdraw the amount matured for payment at maturity date. PPF investor can take loan against PPF Account when he/she experiences Financial difficulties.
b) Mutual Funds:
1. An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds
2. Nowadays people invest in stock markets through a mutual fund. Systematic investment plan is one of the best investment options in India.
c) Direct Equity or Share Purchase:
1. An individual can opt for investment in shares.
2. But he has to analyse the market price of various shares traded in stock exchange, reputation of the company, consistency in the payment of dividend, the nature of the project undertaken by the company, growth prospects of industry in which a company is operating, before investing in shares.
3. If the investment is made for a long time, it may yield good return.
4. However there is equally risky to invest in shares as there is no guaranteed return in their security.
d) Real Estate Investment:
(1) Real Estate is one of the Fastest growing sectors in India.
(2) Buying a flat or plot is the best decision amongst the investment options.
(3) The value of real asset may increase substantially depending upon the area of location and other support facilities available therein.
(4) However an investor in real estate has to be cautious and circumspect in verifying the genuineness of the title deeds before investing in real estate assets.
e) Unit Linked Insurance Plans (ULIP):
ULIP is a life insurance linked product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.

Registration of Partnership:
The Indian Partnership Act does not make the registration of a partnership compulsory. Registration is optional. But the disabilities of non-registration virtually make it compulsory.
Procedure for Registration:
A statement should be prepared stating the following particulars.
(1) Name of the firm.
(2) The principal place of business.
(3) Name of other places where the firm carried on business.
(4) Names and addresses of all the partners.
(5) The date on which each partner joined the firm.
(6) The duration of the firm.
This statement signed by all the partners should be produced to the Registrar of Firms along with the necessary registration fee. Any change in the above particulars must be communicated to the Registrar within 14 days of such alteration.

On the Basis of the Formation:
1. Express Contract:
i) A contract made by word spoken or written.
ii) According to Section. 9, in so for as the proposal or acceptance of any promise is made in words, the promise is said to be express.
iii) For example P says to Q "will you buy my bicycle for Rs.1,000?" Q says to P "Yes".
2. Implied Contract:
i) The implied contract is one, which is not expressly written but understood by the conduct of parties.
ii) Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied.
iii) For example A gets into a public bus. There is an implied contract that he will pay the bus fare.
3. Quasi Contract:
i) It is a contract created by law. Actually, there is no contract.
ii) It is based on the principle that "a person shall not be allowed to enrich himself unjustly at the expense of the other".
iii) In other words it is an obligation of one party to another imposed by law independent of an agreement between the parties
4. Tacit Contract:
i) A contract is said to be tacit when it has to be inferred from the conduct of the parties.
ii) For example obtaining cash through automatic teller machine, sale by fall of hammer of an auction sale.

1. Consumer cooperatives are organized by consumers that want to. achieve better prices or quality in the goods or services they purchase.
2. In contrast to traditional retail stores , or service providers, a consumer cooperative exists to deliver goods or services rather than to maximize profit from selling those goods or services.
3. Nationally, the most widely used cooperative form is the credit union, with some 90 million members.
4. Credit union assets have grown a hundred-fold in three decades.
5. Credit unions are essentially cooperatives of people that use banking services.
6. Students' cooperative stores, Cooperative provision stores, and supermarkets set up on cooperative societies of India are examples of this type.

Commerce and Trade in North India:
1. India was prosperous even during medieval period from 12th to 16th centuries despite political upheavals.
2. Balban was first sultan who paved the way in the dense forest and helped traders and their commercial caravans to move from one market place to others.
3. Alauddin Khilij brought the price to a very low ebb.
4. He encouraged import of foreign goods from Persia and subsidised the goods.
5. Arabs were dominant players in India's foreign trade.
6. They never discouraged Indian traders like Tamils, Gujaratis, etc.
7. The trade between the coastal ports were in the hands of Marwaris and Gujaratis.
8. The overland trade with central and west Asia was in the hands of Multanis who were Hindus and Khurasanis who were Afghans, Iranians and so on.
9. During Sultanate period, trade flourished due to the establishment of currency system based on silver and copper.
10. Moorish traveller described the teeming market of big cities in the Gangetic plains, Malwar, Gujarat and South India.
11. The important trade centres were Delhi, Mumbai, Ahmedabad, Sonar, Sonargoon, Jaunpur, Lahore and so on. The burgeoning foreign trade led to the development of market place in the towns and villages.
12. India's handicraft commanded a good foreign market. India imported horses, dry fruits, precious stones, glassware, high grade textiles, raw silk, corals, scented oil, velvets, etc.. from Kabul, Arabia, Europe, West Asia and China.
13. Indian products were exported to East Africa, Malaya, China and Far East.
14. Trade was conducted through overland routes with Afghanistan, Central Asia and Persia. India conducted foreign trade via land route with Quetta, Khyber pass, Iraq and Bukhara.
15. The traders of Malabar, Gujarat and foreign settlers in the ports of Calicut, Khumbat and Mangalore controlled a major business sector in port cities.