Trade is an essential part of commerce. The term 'Trade' is used to denote buying and selling.

According to James Stephenson, "A company is an Association of many persons who contribute money or money's worth to a common stock and employ it in some trade or Business, and who share the profit and loss (as the case may be) arising there form."
(or)
According to Sec 2 of Companies Act 2013, "A company is an artificial person created by law having a separate entity with a perpetual succession and a Common seal".

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.

Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

Logistics can be viewed as a logical extension of transportation and related areas to achieve an efficient and effective goods distribution system.

"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".

A sole trader is a simple business structure whereby one individual runs and owns the entire business.

1. NEFT- National Electronic Funds Transfer was launched by the RBI in 2005.
2. Under this electronic funds transfer system, bulk transfer of transactions are settled in batches during specific timings across India.
3. Individuals and institutions which maintain accounts with a NEFT enabled bank branch are eligible for using NEFT.

On the basis of size, business activities may be broadly grouped into two categories.
A. Small Scale:
Small scale units require less capital, employ small number of workers and produce the goods on small scale
B. Large Scale:
Large scale units require huge capital, employ large number of workers and produce the goods on large scale.

Implied Authority of Karta:
In a joint family firm, only Karta has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the businesses of the firm.
Minor also a co-parcener:
In a partnership, minor cannot become co-partner though he maybe admitted to the benefit of partnership. In a Joint Hindu Family firm even a new born baby can be a co-parceners.
Dissolution:
The Joint Hindu Family business can be dissolved only at the will of all the members of the family. Any single member has no right to get the business dissolved.

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.

1. Banking Service is the nerve centre of industry and Commerce in a country.
2. It plays a vital role by providing the money required for their regular functioning and development.
3. The word Bank normally refers to Commercial Banks.
4. There are many types of banks rendering different types of services.
5. Central Bank is the most important one among them.

(i) The word "vaniyam" or "Vanipam" would have had a Dravidian origin. 
(ii) The early Tamils produced their products and goods in their lands and bartered their surplus and that is how trade came into existence. 
(iii) The word "Vanigam" has been widely used in sangam literature like Purananuru and Thirukkural.

Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

Objectives of Self Help Groups:
1. Focusing on empowerment of women.
2. Saving people from the clutches of money lenders
3. Building capacity of women and to enable them to participate in generating activities.
4. Creating the habit of saving in the minds of the people who are economically backward.
5. Promoting entrepreneurship skills among women.
6. Creating awareness about the importance of credit circle or revolving credit and the payment of the circle.
7. Elevating the economic standard of the member's families.
8. Developing skills and facilitating credit linkages for eventual economic empowerment.
9. Promoting awareness among the members about finding solutions for their economic problems.
10. Identifying the common interest of the group members and carrying out their operations in the most efficient and economic way.
11. Enabling the members to overcome all social and economic barriers.
12. Promising and ensuring human rights to women at all stages of their life cycle.

Sl.No	Basic for comparison	GDR(Global Depository Receipts)	ADR(American Depository Receipts)
1.	Denomination	It is denominated in terms of any freely convertible currency	It is denominated only in US dollars.
2.	To whom it is issued	It is issued to investors in one or across more markets simultaneously	It is issued only to investors, who are resident of US
3.	Listed in	It is listed in Non-US stock exchange such as London stock Exchange or Luxembourg Stock Exchange	It is listed in American Stock Exchange
4.	Approval	GDR issues does not require Foreign regulatory clearances	ADR Issues require approval from Securities Exchange commission (SEC) of US
5.	Mode of Expression	GDRs are normally co-related to equity shares of the issuing company expressed  in whole numbers	In many cases ADRs co-related to equity shares of the company are expressed as a fraction.
6.	Negotiation	All over the world	In America only.

Principles of Insurance:
Insurance concept was started to distribute risk among group or people. Co-operation is the basic principle behind every Insurance contract. The following are the important principles of Insurance.
a) Utmost Good Faith:
1. According to this principle, both insurer and insured should enter into contract in good faith.
2. Insured should provide all the information that impacts the subject matter.
3. Example: Mr. M is a heart patient. But he hides this fact to the LIC while taking a life policy. On his death due to a heart attack, LIC can refuse to pay compensation to his legal representative because a material fact was not disclosed by the insured.
b) Insurable Interest:
1. The insured must have an insurable interest in the subject matter of insurance.
2. Insurable interest means some pecuniary interest in the subject matter of the insurance contract.
3. The insured must have an interest in the preservation of the thing or life insured, so that they will suffer financially on the happening of the event against which they are insured.
4. Example, a businessman has insurable interest in his stock of goods.
c) Indemnity :
1. Indemnity means security or compensation against loss or damages.
2. In insurance, the insured would be compensated with the amount equivalent to the actual loss and not the amount exceeding the loss.
3. "The principle of indemnity is not applicable to life insurance because one cannot estimate the loss due to the death of a person".
d) Causa Proxima:
1. The word 'Causa proxima' means 'nearest cause'.
2. According to this principle, when the loss is the result of two or more cause, the proximate cause, i.e. the direct.
3. The direct, the most dominant and most effective cause of loss should be taken into consideration.
4. The insurance company is not liable for the remote cause.
e) Contribution:
1. The same subject matter may be insured with more than one insurer then it is known as 'Double Insurance'.
2. In such a case, the insurance claim to be paid to the insured must be shared on contributed by all insurers in proportion to the sum assured by each one of them.
3. Example: A businessman gets his factory insured against fire for Rs 10,00,000 with insurer A and Rs. 5,00,000 with insurer B.
4. Due to fire, a loss of Rs 1,50,000 occurred.
5. Then, insurers A and B will contribute the loss in the ratio of 2:1.
6. A will pay Rs. 1,00,000 and B will pay Rs. 50,000.
f) Subrogation:
1. Subrogation means 'stepping the shoes on others'.
2. According to this principle,once the claim of the insured has been settled, the ownership right of the subject matter of insurance passes on to the insurer.
3. Example Mr.B gets his motor car insured. Some of its parts got damaged in a road accident.
4. He gets the insurance claim and gets the damaged parts replaced with new ones.
5. In this case the damaged parts will be taken by the insurance company.
6. The insured has no right over the damaged parts since they had already got compensation for the damaged parts.
g) Mitigation:
1. In case of a mishap, the insured must take off all possible steps to reduce or mitigate the loss or damage to the subject matter of insurance.
2. This principle ensures that the insured does not become negligent about the safety of the subject matter after taking the insurance policy.

Benefits of WTO:
Some of the major benefits of WTO are as follows:
(i) WTO is promoting international peace and creating a conducive environment for conducting international Trade.
(ii) It settles the Trade disputes amicably among the member countries.
(iii) It promotes the standard of living of people by increasing their income level from free trades.
(iv) WTO has removed quantitative restrictions and non-tariff barriers. It has facilitated free flow of foreign trade among the member countries.
(v) The countries can impose import restrictions only to correct balance of payments difficulties and not otherwise.
(vi) It stimulates economic growth of developing countries by providing them with much needed capital and giving them preferential treatment in trade and related matters.
(vii) WTO organises periodical regional and international conference. Thus developing countries get opportunity to learn the technicalities, rules and regulations, governing world trade, technical assistance available globally, trade potentials in member countries and so on.
(vii) WTO gives people across the world a wider choice of goods and broader range of qualities to choose from by promoting free trade among the member countries.
(viii) WTO has lowered trade barriers and thereby allowed trade to flourish across the world. The increase in trade contributes to increase in national income and personal income of people.
(ix) WTO provides a platform for member countries to establish trade link with one another.
(x) In the absence, of WTO member countries may have to - enter many multilateral agreement with so many countries across the world.
(xi) It provides greater access to all nations under one roof.
(xii) WTO is committed to protecting free trade. It has framed rules on subsidies and dumping.

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.

Advantages of railway transport:
1. Railways are well suited for carrying heavy and bulky goods over long distances.
2. It can provide long distance travel throughout the day and night with unbroken Services.
3. It can provide better production and safety to the goods than motor transport.
4. The goods generally carried in closed wagons are not exposed to sun, rain, etc.
5. Though initial investment is large, in the long run the operating expenses will be very low in railways and it will prove a cheaper mode of transport.
6. It requires less time than motor transport for carrying goods over long distance with greater speed.
7. It has regular schedule of timing and is available throughout the year.
8. It provides unaffected services whether rainy or shiny weather conditions.

Consumers Cooperative:
Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase.
Producers Cooperative:
Producer cooperatives are established and operated by producers. Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency.
Marketing Cooperative:
Cooperative marketing societies are associations of small producers formed for the purpose of marketing their produce.
Credit Cooperative:
Cooperative credit societies are societies formed for providing short-term financial help to their members.
Housing Cooperative:
These cooperative housing societies are meant to provide residential accommodation to their members on ownership basis or on rent.
Cooperative Farming Societies:
When various farmers in a village pool their land together and agree to; treat the pooled piece of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the cultivation, and market the crops jointly, they are assumed to have formed a cooperative farming society. Such a society, for its proper working elects its office bearers on the basis of one member-one-vote.