By QB365 on 31 Dec, 2022
QB365 provides a detailed and simple solution for every Possible Questions in Class 12 Commerce Subject - Important 5 Mark English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
12th Standard
Commerce
Answer all the following Questions.
Explain the principles of modern management. (any 5)
Explain the various functions of management.(any 5)
Discuss the disadvantages of MBE.
Enumerate the different types of financial markets.
Explain the various types of New Financial Institutions.(any 5)
Explain the characteristics of Money Market? (any 5)
Distinguish between Stock Exchange and Commodity Exchange.(any 5)
What are the functions of SEBI? (any 5)
Describe the significance of Human Resource Management.(any 5)
What is the Recent trends in Recruitment?
Explain the important methods of interview.(any 5)
Discuss various types of training. (any 5)
How the market can be classified on the basis of Economics?
Narrate the Elements of Marketing mix.
Explain in detail how traditional marketing differ from E-marketing.
What are the objectives of Consumer Protection Act, 1986? (any)
What are the rights of consumers?
Explain the overall performance of the National Commission.
Explain the micro environmental factors of business.
Explain the advantages and disadvantages of liberalisation.(any 5)
Distinguish between Conditions and Warranty.
Discuss in detail the features of a cheque. (any 5)
Discuss the challenges faced by Women Entrepreneurs.(any 5)
Discuss the nature of functional entrepreneurs.
Explain any five Government Entrepreneurial schemes.
What are the various kinds of Debentures?
Who are the KMP?
Explain different types of open and secret types of voting.
Discuss the implications of span of management.
Explain the primary functions of management OR secondary functions of Management
Answers
The father of Modern Management is Mr. Henry Fayol and according to him there are 14 major principles of management.
1. Division of Work:
(i) According to this principle the whole work is divided into small tasks. The specialization of the workforce according to the skills of a person.
(ii) Specialization leads to increase in efficiency, productivity of labour and productivity
2. Authority and Responsibility:
Authority means the right of a superior to give the order to his subordinates; whereas responsibility means obligation for performance.
3. Discipline:
(i) It is obedience, proper conduct in relation to others, respect of authority, etc.
(ii) It is essential for the smooth functioning of all organizations.
4. Unity of Command:
This principle states that each subordinate should receive orders and be accountable to one and only one superior.
5. Unity of Direction:
All related activities should be put under one group, there should be one plan of action for them and they should be under the control of one manager.
6. Subordination of Individual Interest to Mutual Interest:
(i) The management must put aside personal consideration and put company objectives firstly.
(ii) Therefore the interests of goals of the organization must prevail over the personal interests of individuals.
7. Remuneration:
Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity.
8. The Degree of Centralization
(i) The amount of power wielded with the central management depends on Company size.
(i) Centralization implies the concentration of decision making authority at the top management.
9. Line of Authority/Scalar Chain:
(i) This refers to the chain of superiors ranging from top management to the lowest rank.
(ii) The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels.
10. Order:
(i) Social order ensures the fluid operation of a company through authoritative procedure.
(ii) Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company.
11. Equity:
Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees.
12. Stability of Tenure of Personnel:
Stability of tenure of personnel is a principle stating that in order for an organization to run, smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.
13. Initiative:
(i) Using the initiative of employees can add strength and new ideas to an organization.
(ii) Initiative on the part of employees is a source of strength for organization because it provides new and better ideas.
14. Esprit de Corps/Team Spirit:
(i) This refers to the need of managers to ensure and develop morale in the workplace; individually and communally.
(ii) Team spirit helps develop an atmosphere of mutual trust and understanding Team spirit helps to finish the task on time.
Functions can be classified into two categories
i) Main functions
ii) Subsidiary functions
Main Functions:
1. Planning:
(i) Planning is the primary function of management.
(ii) Planning is a constructive reviewing of future needs so that present actions can be adjusted in view of the established goal.
2. Organising:
Organising function work is assigned to employees who are given authority to carry out the work assigned and made accountable for it.
3. Staffing:
Staffing refers to placement of right persons in the right iobs. Staffing includes selection of right persons, training to those needy persons, promotion of best persons, retirement of old persons, performance appraisal of all the personnel, and adequate remuneration of personnel.
4. Directing:
Directing denotes motivating, leading, guiding and communicating with subordinates on an ongoing basis in order to accomplish pre-set goals.
5. Controlling:
Controlling is performance to evaluate the performance of employees and deciding increments and promote decisions.
6. Co-ordination:
All the activities are divided group wise or section wise under organising function. Now, such grouped activities are co-ordinated towards the accomplishment of objectives of an organisation.
7. Motivation:
(i) The goals are achieved with the help of motivation.
(ii) Motivation includes increasing the speed of performance of a work and developing a willingness on the part of workers.
ii) Subsidiary functions.
1. Innovation:
(i) Innovation refers to the preparation of personnel and organisation to face the changes made in the business world.
(ii) Consumers are satisfied through innovation like through new innovation,new package, new design, etc.
2. Representation:
A manager has to act as representative of a company. Manager has dealings with customers, suppliers, government officials, banks, financial institutions, trade unions.
3. Decision-making:
(i) Every employee of an organisation has to take a number of decisions every day.
(ii) Decision-making helps in the smooth functioning of an organisation.
4. Communication:
(i) Communication is the transmission of human thoughts, views or opinions from one person to another person.
(ii) Communication helps the regulation of job and co-ordinate the activities.
(i) The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level
(ii) Furthermore, it takes time to pass the issues to managers. Managing employees who deviate from the normal procedures.
(iii) Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed / terminated.
Financial markets can be classified in different ways. They are as follows
(i) On the basis of type of financial claim
(a) Debt market is the financial market for trading in Debt instruments(i.e) Government Bonds or Securities, Corporate Debentures or Bonds
(b) Equity market is the financial market for trading in equity shares of companies
(ii) On the basis of maturity of financial claim
(a) Money market is the market for short term financial claim (usually one year or less) E.g. Treasury Bills, Commercial Paper, Certificates of Deposit
(b) Capital market is the market for long term financial claim more than a year E.g. Shares, Debentures
(iii) On the basis of time of issue of financial claim
(a) Primary market is a term used to include all the institutions that are involved in the sale of securities for the first time by the issuers (Companies).
(b) Secondary market is the market for securities that are already issued. Stock Exchange is an important institution in the secondary market.
(iv) On the Basis of Timing of Delivery of Financial Claim
(a) Cash/Spot market is the market where the delivery of the financial instrument and payment of cash occurs immediately (i.e.) settlement is completed immediately.
(b) Forward or Future market is a market where the delivery of the asset and payment of cash takes place at a pre determined time in future.
(v) On the basis of the organisational structure of the financial market
(a) Exchange traded market is a centralized organisation (stock exchange) with standardized procedures.
(b) Over - the- counter market is a decentralized market (outside the stock exchange) with customized procedures.
A number of institutions of finance have been established to cater to the credit requirements of various segments of industry. They are:
i) Mutual Funds:
(a) Financial institutions that provide facilities for channeling savings of small investors into avenues of productive investments are called "Mutural Funds".
(b) A mutual fund company invests the funds pooled from shareholders and gives them the benefit.
ii) Over the Counter Exchange of India (OTCEI):
(a) The OTCEI was set up by a premier financial institution to allow the trading of securities across the electronic counters throughout the country.
(b) It addresses some specific problems of both investors and medium-size companies.
(c) Some of the greatest strengths, of OTCEI are transparency of transactions, quick deals, faster settlements and better liquidity.
iii) National Stock Exchange of India Limited (NSEI):
a) NSEI was established in 1992 to function as a model stock exchange.
b) The Exchange aims at providing the advantage of nation-wide electronic screen based "scripless" and "floorless" trading system in securities.
c) It allows an efficient and transparent system of securities trading
iv) National Clearance and Depository System (NCDS):
a) The NSDL was set up in the year 1996. for achieving a time bound dematerialization as well as rematerialization of shares.
b) It is established to alleviate the problems of post trade transactions in the secondary market
v) Stock Holding Corporation of India Limited (SHCIL):
a) Stock Holding Corporation of India Limited (SHCIL) aims at serving as a central securities depository in respect of transactions on stock exchanges.
b) It also takes up the administration of clearing functions at a national level
(i) Short-term Funds:
It is a market purely for short-term funds or financial assets called near money.
(ii) Maturity Period:
It deals with financial assets having a maturity period upto one year only.
(iii) Conversion of Cash :
It deals with only those assets which can be converted into cash readily without loss and with minimum transaction cost.
(iv) No Formal Place:
Generally, transactions take place through phone i.e.,
1. oral communication.
2. Relevant documents and written communications can be exchanged subsequently.
3. There is no formal place like stock exchange as in the case of a capital market.
(v) Sub-markets :
It is not a single homogeneous market. It comprises of several sub-markets each specialising in a particular type of financing.
(vi) Role of Market :
The components of a money market are the Central Banks, Commercial Banks, Non-Banking Financial Companies, Discount Houses and Acceptance House.
(vii) Highly Organized banking system:
1. The commercial banks are the nerve centre of the whole money market.
2. They are the principal suppliers of short-term funds.
(viii) Existence of Secondary Market
There should be an active secondary market for these instruments.
(ix) Demand and Supply of Funds
(i) There should be a large demand and supply of short-term funds.
(ii) It presupposes the existence of a large domestic and foreign trade.
(x) Wholesale Market
It is a wholesale market and the volume of funds or financial assets traded in the market is very large.
(xi) Flexibility
Due to greater flexibility in the regulatory framework, there are constant endeavours for introducing new instruments.
(xii) Presence of a Central Bank
The central bank keeps their cash reserves and provides them financial accommodation in difficulties by discounting their eligible.
S.No. | Feature | Stock Exchange | Commodity Exchange |
1. | Meaning | Stock exchange is an organised market for the purchase and sale of industrial and financial security. |
A commodity exchange is an exchange where commodity are traded |
2. | Function | Providing easy marketability | Offering hedging or price insurance services and liquidity to securities |
3. | Participants | Investors and speculators | Producers, dealers, traders and a body of speculators |
4. | Period of dealings |
Cash, ready delivery and dealings for account for a fortnight |
Instant cash dealings and a settlement period of 2 or 3 months for Future Market dealings. |
5. | Forward Contract |
Forward dealings are simplified as securities are fully standardized. |
Standards are to be fixed for deliverable grades to facilitate futures contract. |
6. | Price Quotation | As regards forward dealings, only one quotation is possible. |
For future dealings, multiple quotations are possible. |
(i) Safeguarding the interests of investors by means of adequate education and guidance.
(ii) SEBI makes rules and regulation that must be followed by the financial intermediaries like portfolio exchanges, underwriters and merchant bankers, etc.
(iii) Regulating and controlling the business on stock markets.
(iv) Registration of brokers and sub-brokers is made mandatory and they have to abide by certain regulations and rules.
(v) Barring insider trading in securities.
(vi) Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities markets.
(vii) SEBI issues Guidelines and Instructions to businesses concerning capital issues.
(viii) Levying fee or any other type of charges to carry out the purpose of the Act.
(ix) Performing functions that may be assigned to it by the Central Government of India.
(x) Conduct inspection and inquiries of stock exchanges and to take appropriate measures.
(i) To identify manpower needs :
Determination of manpower needs in an organisation is very important as it is a form of investment.
(ii) To incorporate change:
Change is constant in any organisation and this change has to be introduced in such a way that the human resource management acts as an agent.
(iii) To ensure the correct requirement of manpower :
At any time the organisation should not suffer from shortage or surplus manpower.
(iv) To select right man for right job:
Human resource management ensures the right talent available for the right job.
(v) To update the skill and knowledge:
To update the skill and knowledge of the employees to remain upto date through training and development programmes.
(vi) To appraise the performance of employees :
Appraisal of performance of employees through human resource management will boosts good performers and motivates slow performers.
(vii) To improve competitive advantage:
Organisations with capable and competent employees can truly gain competitive advantage in the globalised market.
(vii) To provide incentives and bonus to best performers :
It is the role of human resource management to recognise the best performers and to provide them bonus and incentives as a form of appreciation for their work.
(ix) To determine employee commitment:
The higher the level of commitment the higher the possibility of the organisation to be successful.
(x) To emphasise socialisation:
Human beings are social animals and they should be ensured that they are comfortable in the work place by maintaining cordial relationship with peers and managers.
(xi) To promote favourable employee attitude:
Organisations are expected to provide a good work environment to secure favourable employee attitude towards the management.
(xii) To provide scope for collective bargaining:
It encourages worktorce to form a union to represent their grievances and find early solutions by collective representation.
The recent methods of recruiting by organisations include the following methods :
1. Outsourcing - There are outsourcing firms that help in the process of recruiting through screening of applications and finding the right person for the job for which job they are paid service charges
2. Poaching - Organisations instead of training and developing their own employees hire employees of other competitive companies by paying them more both financial and non financial benefits. It is also called raiding.
(i) Prelimary Interview :
(i) This interview is conducted to know the general suitability of the candidates who have applied for the Job.
(ii) This helps the employer organrzation to cut cost and time in selection process.
(ii) Structure/guided Planned Interview :
a) Under this method, a series of question to be asked by the interviewer are pre-prepared by the interviewer and only these questions are asked in the interview.
b) Ultimately interviewees are ranked on the basis of score earned by the candidate in the interview.
(iii) Unstructured Interview :
a) This is quite contrary to structured interview.
b) An atmosphere for free and frank interaction is created in the interview environment.
c) There is no pre-prepared questions.
(iv) In depth Interview :
a) This interview is conducted to test the level of knowledge of the interviewee in a particular field intensively and extensively.
b) Thus interview helps the interviewers to learn about the candidate's expertise and practical exposure with respect to his/her area of specialization.
(v) Panel Interview :
a) Where a group of people interview the candidate, it is called panel interview.
b) Usually panel comprises chair person, subject expert, psychological experts, representatives of minorities/under privileged groups, nominees of higher bodies and so on.
c) All panel members ask different types of questions on general areas of specialisation of the candidate.
d) Each member awards marks of the candidate. At the end, the marks awarded by all the members are aggregated and the candidates are ranked accordingly
(vi) Stress Interview :
a) This type of interview is conducted to test the temperament and emotional balance of the candidate interviewed.
b) Interviewer deliberately creates stressful situation by directing the candidate to do irrational and irritating activities.
c) They assess the suitability of the candidate by observing the reaction and response of the candidate to the stressful situations.
d) Mostly this type of interview is conducted for recruiting sales representatives staff for defence and law enforcement agencies
(vii) Telephone Interview
Telephone interview is conducted by some organization to eliminate unfit and unsuitable candidate at the preliminary stage itself.
(viii) Online Interview
a) This interview is conducted means of internet via Skype or Video conferencing methods.
b) This enables the interviewers to conduct interview with the candidates living in faraway places.
c) They saves a lot of time, money and energy both for employer's organization and the candidate.
(ix) Group interview
a) A group interview is a screening process where you interview multiple candidates at the same time.
b) Some time particular topic is given to the group, and they are asked to discuss it.
(x) Video Conferencing Interview
a) Video conferencing interview is similar to face to face interview.
b) Interview can be conducted from a desktop at work, a home computer or smart phone or a tablet
According to Edwin B. Flippo" Training is the act of increasing the Knowledge and skills of an employee for doing particular jobs".
Two principal methods of employee training. They are:
I. On the job training
On the job training refers to the training which is given to the employee at the work place by his immediate supervisor.
(i) Coaching method
The superior teaches or guides the new employee about the knowledge and skills relevant to a given job.
(ii) Mentoring method
(a) Mentoring is the process of sharing knowledge and experience of an employee.
(b) It is considered as one-to-one interaction, like coaching.
(iii) Job Rotation method
(a) Job rotation is an important method for broadening the knowledge of executives.
(b) The main aim of job rotation is to expose the employee to various inter related jobs.
(iv) Job Instruction Techniques (JIT) method
A trainer supervisory level gives some instructions to an employees to how to perform his job and its purpose.
(v) ApprenticeshipTraining Method
(a) The apprentice or trainee learns the job knowledge and skills from the trainer or superior or senior worker.
(b) The trainee gets the stipend during the training period.
(vi) Committee Assignment
When employees are assigned to committee to address a particular issue, they are able to work closely with other members and committee leader.
(vii) Understudy/Internship Training Method
A superior gives training to a subordinates or understudy like an assistant to a manager or director.
II. Off the Job Training
Off the job training is the training method where in the workers/employees learn the job role away from the actual work floor.
(i) Lecture Method
Under this method trainees are educated about concepts, theories, principles and application of knowledge in any particular area.
(ii) Group Discussion Method
(a) Group of people participate and discuss particular subject or one topic.
(b) In this method participants are divided into various groups. They were provided a particular issue for deliberation.
(iii) Cash Study Method
(a) Trainees are described a situations which stimulate their interest to find solution.
(b) They have to use their theoretical knowledge and practical knowledge to find solution to the problem presented.
(iv) Role Play Method
(a) This method trainees are explained the situation and assigned roles.
(b) They have to act out the roles assigned without any rehearsal.
(v) Seminar/Conference Method
This method enables the trainees to listen to the lectures / talk delivered on specific topics and provides opportunities to participants to interact with speakers.
(vi) Field Trip Method
A field trip or field work or training in the field is a journey undertake by a group employee to a place away from their actual work site.
(vii) Vestibule Training Method
Vestibule training is training of employees in an environment similar to actual work environment artificially created for training purposes.
(viii) E-learning Method
E learning is the use of technological process to access of a traditional classroom or office.
(ix) Demonstration Training Method
Demonstration involves showing by reason or proof explaining or making clear by use of examples or experiments.
(x) Programmed Instruction Method
It is computer based training. It is stored in memory. It gives to participants and effective learning.
(a) Perfect market:
A market is said to be a perfect market, if it satisfies the following conditions.
(i) Large number of buyers and sellers are there.
(ii) Prices should be uniform throughout the market.
(iii) Buyers and sellers have a perfect knowledge of market.
(iv) Goods can be moved from one place to another without restrictions.
(v) The goods are identical or homogeneous.
It should be remembered that such types of markets are rarely found.
(b) Imperfect market: A market is said to be imperfect when
(i) Products are similar but not identical
(ii) Prices are not uniform
(iii) There is lack of communication
(iv) There are restrictions on the movement of goods
There are four elements of Marketing Mix are
(i) Product:
a) Product is the main element of marketing. Without a product, there can be no marketing.
b) A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need.
(ii) Price:
Price is the value of a product expressed in monetary terms. It is the amount charged for the product.
(iii) Place (Physical Distribution)
(i) An excellent quality product, with a competitive price structure, backed up by efficient promotional activities, will be waste if it is not moved from the place of production to the place of consumption at an appropriate time.
(ii) The fourth element of product mix, namely place or physical distribution facilities the movement of products from the place of manufacture to the place of consumption at the right time.
(iv) Promotion:
An excellent product with competitive price cannot achieve a desired success and acceptance in market, unless and until its special features and benefits are conveyed effectively to the potential consumers.
S. No. |
E-Marketing | Traditional Marketing |
---|---|---|
1. | It is very economical and faster way to promote the products | It is very expensive and takes more time to promote product |
2. | It is quite easier for promoting product globally in the short time | It is very expensive and time consuming to promote product/ service under traditional marketing |
3. | E-Business enterprises can expand their operation with minimum man power | It needs more man power |
4. | In this marketing product can be sold or bought 24 x 7,round the year with minimum manpower | That is not possible in traditional marketing |
Following are the objectives of consumer protection Act, 1986
(i) Protection of consumers against marketing of goods which are hazardous and dangerous to life and property of consumers.
(ii) Providing correct and complete information about quality, quantity, purity, price and standard of goods purchased by consumers.
(iii) Protecting consumers from unfair trade practices of traders.
(iv) Empowering consumers to seek redressal against exploitation
(v) Educating the consumer of their rights and duties.
(vi) Ensuring better standard of living for consumers by providing them with quality products at fair price.
(vi) Putting in place right mechanism like councils and other authorities to enable the consumers to enforce their rights.
(i) Right to Protection of Health and Right of Safety:
1. There may be few products that are more likely to cause physical danger to consumers health, lives and property.
2. They may contain potentially harmful substances which are dangerous from the consumer welfare point of view
(ii) Right to be Informed:
1. Consumers should be given all the relevant facts about the product so that they can take intelligent decisions on purchasing the product.
2. The package should contain the full details about the name of the product, composition, dosage, date of manufacturing, date of expiry, batch number, warnings, antidose etc.
(iii) Right to choose:
1. Consumer satisfaction is the ultimate aim of modern marketing and is the philosophy of marketing concept.
2. Consumer satisfaction can be increased by giving the consumer the widest choice.
3. The term 'Choice' means offering the widest range of products in quality and brand varieties.
(iv) Right to be heard :
1. Consumers have every right to ventilate and register his or her dissatisfaction.
2. Business enterprises should lend a compassionate ear to complaints or grievances of consumers.
(v) Right to seek Redressal :
1. The complaints and protests are not just to be heard but the aggrieved party is to be granted compensation within a reasonable time period .
2. This will boost consumer confidence and help render justice to buyers.
(vi) Right to consumer education :
1. The consumer has a right to acquire knowledge and stay well-informed all through his life.
2. Many consumer organisations and some enlightened businesses are taking a pro active part in educating consumers in this respect.
(vii) Right to Quality of Life
1. Quality of life refers to the preceived well-being of people, in groups and individually and well-being of the environment in which these people live.
2. Consumerism has been defined as 'an improved quality of life'.
(viii) Right to Consumer Protection
The consumer has a right to be aware of his rights and remedies available to him, redress his grievances through publicity in the mass media.
(ix) Right to Basic Needs
1. Every consumer has a right to get basic necessities of life such as food, clothing and water, and right to pure and healthy environment.
2. Community life should be free from various modes of pollution.
The National Consumer Disputes Redressal Commission (NCDRC), India is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act of 1986. Its head office is in New Delhi. The commission is headed by a serving or retired judge of the Supreme Court of India. The National Consumer Disputes Redressal Commission (NCDRC) is also called as National Commission.
Members
The National Consumer Disputes Redressal Commission has been constituted by a Notification.
(i) The National commission should have five members.
(ii) One should be from judiciary.
(iii) Four other members of ability, knowledge and experience from any other fields.
(iv) It should include a woman.
Jurisdiction
Section 21 of The Consumer Protection Act, 1986 describes, the National Commission shall have jurisdiction
(i) To entertain a complaint valued more than 1 Crore.
(ii) Revised the orders of State Commissions.
(iii) To call for the records and pass appropriate orders from the State Commission and District Forum.
Powers
(i) Adoption of uniform procedure in the hearing of the matters is followed in the National Commission
(ii) Prior service of copies of documents produced by one party to the opposite parties.
(iii) Speedy grant of copies of documents are issued by the National Commission.
(iv) Generally over-seeing the functioning of the State Commissions and the District Forums to ensure that the objects and purposes of the Consumer protection Act are best served, without interfering with their quasi-judicial freedom.
Appellate Forum
Any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law or has failed to exercise a jurisdiction so vested or has acted in the exercise of its jurisdiction illegally or with material irregularity. Section 23 of Consumer Protection Act, 1986, provides that any person aggrieved by an order of National Commission may prefer an Appeal against such order to Supreme Court of India within a period of 30 days.
This refers to those factors which are in the immediate environment of a business affecting its performance. These include the following:
(a) Suppliers:
(i) ln any organization the suppliers of raw materials and other inputs play a very vital role.
(ii) Organisations generally obtain supplies from a panel of suppliers instead of relying on a single source
(b) Customers:
(i) The aim of any business is to satisfy the needs of its customers. Customer is the king and the fulcrum around which the business revolves.
(ii) Customer relationship management aims at creating cordial relations with customers.
(c) Competitors:
(i) All organizations face competition at all levels local, national and global.
(ii) Competitors may be for the same product or for similar products.
(d) Financiers:
The financiers of a business which includes the debenture holders and financial institutions play a significant part in the running of a business.
(e) Marketing Channel members:
The middlemen like dealers, wholesalers and retailers ensure transfer of products to customers. Physical distribution is facilitated by transporters and warehouses help in storing goods.
(f) Public:
(i) This refers to any group like media group, citizen action group and local public which has an impact on the business
(ii) The public group has the ability to make or mar a business.
Advantages :
(a) Increase in foreign investment: If a country liberalises its trade, it will make the country more attractive for inward investment. Inward investment leads to capital inflows but also helps the economy through diffusion of more technology, management techniques and knowledge.
(b) Increase the foreign exchange reserve: Relaxation in the regulations covering foreign investment and foreign exchange has paved way for easy access to foreign capital.
(c) increase in consumption: Liberalization increases the number of goods available for consumption within a country due to increase in production.
(d) Control over price: The removal of tariff barriers can lead to lower prices for Consumers.
(e) Reduction in external borrowings: Liberalization reduces the dependence on external commercial borrowings by attracting more foreign investments.
Disadvantages :
(i) Increase in unemployment: Trade liberalisation often leads to a shift in the balance of an economy. Some industries grow, some decline. Therefore, there may often be structural unemployment from certain industries closing.
(ii) Loss to domestic units: With fewer entry restrictions, it has been possible for many entrants to make inroads into the country which poses a threat and competition to the existing domestic units.
(ii) Increased dependence on foreign nations: Trade liberalisation means firms will face greater competition from abroad.When competition is not automatically enhanced, it can lead to domination by big institution that has market controlling powers
(iv) Unbalanced development: Trade liberalisation may be damaging for developing economies which cannot compete against free trade. The trade liberalisation often benefits developed countries rather than developing economies
SI.No | Basis of Difference | Conditions | Warranty |
---|---|---|---|
1. | Meaning | It is a stipulation which is essential to the main purpose of the contract of sale. | It is a stipulation which is collateral to the main purpose of contract. |
2. | Significance | Condition is so essential to the contract that the breaking of which cancels out the contract. | It is of a subsidiary or inferior character. The violation of warranty will not revoke the contract. |
3. | Transfer of ownership | Ownership on goods cannot be transferred without fulfilling the conditions. | Ownership on goods can be transferred on the buyer without fulfilling the warranty. |
4. | Remedy | In case of breach of contract, the affected party can cancel the contract and claim damages. | In the case of breach of warranty, the affected party cannot cancel the contract but can claim damages only. |
5. | Treatment | Breach of condition may be treated as a breach of warranty. | Breach of warranty cannot be treated as a breach of condition. |
(i) Instrument in writing:
1. A cheque or a bill or a promissory note must be an instrument in writing.
2. Though the law does not prohibit a cheque being written in pencil, bankers never accept it because of risks involved.
3. Alternation is quite easy but detection impossible in such cases.
(ii) Unconditional order:
1. The instrument must contain an order to pay money.
2. It is not necessary that the word 'order' or its equivalent must be used to make the document a cheque.
3. It does not cease to be a cheque just because the world 'please' is used before the word pay.
4. Further the order must be unconditional. In other words, payment of money is made dependent on the happening of an event or on a fulfilment of a condition, the instrument loses the characteristics of a cheque
(iii) Drawn on a Specified Banker Only:
1. The cheque is always drawn on a specified banker.
2. A cheque vitally differs from a bill in this respect as latter can be drawn on any person including a banker.
3. The customer of a banker can draw the cheque, only on the particular branch of the bank where he has an account.
(iv) A Certain Sum of Money Only:
1. The order must be for payment of only money.
2. If the banker is asked to deliver securities, the document cannot be called a cheque.
3. Further, the sum ofmoney must be certain.
v) Payee to be Certain
1. The cheque must be made payable to a certain person or to the order of a certain person or to the bearer of the instrument.
2. The word, person includes bodies corporate, local authorities, associations, holders of office of an institution etc.
(vi) Signed by the Drawer:
1. The cheque is to be signed by the drawer.
2. Further, it should tally with specimen signature furnished to the bank at the time of opening the account.
(vii) Payable Always on Demand
1. A cheque is always payable on demand.
2. The words on demand are not used when the drawee bank is asked to pay and the time for its payment is not specified, it is considered to be payable on demand.
The challenges faced by Women Entrepreneur
1. Problem of Finance
(i) They are pushed to rely on their own savings and small loans from friends and relatives.
(ii) Because of the limited funds, women entrepreneurs are not able to effectively and efficiently to run and expand their business.
2. Limited Mobility
Indian women cannot afford to shed their household responsibilities towards their family even after they plunge into the venture started by them.
3. Lack of Education
Illiterate and semi-literate women entrepreneurs encounter a lot of challenges in their entrepreneurial journey to maintain their day to day operations of the company.
4. Lack of Network Support
The successful operation of any venture irrespective of size depends upon the network of support extended by family members.
5. Stiff Competition
Women entrepreneurs have to face acute competition for their goods from organised sector and from their male counterparts.
6. Sensitivity
Women are more prone to a variety of emotions. Being mother, women are vulnerable to many emotions. They tend to have sympathy and empathy for others.
7. Lack of Information
Women entrepreneurs are reported not to be generally aware of subsidies and incentives available for them due to their poor literacy levels.
8. Dependent culture
In India, women however educated and talented are groomed to be dependent on their parents, life partners and children during the various phases of their life cycle.
1. Innovating Entrepreneur
(i) Innovative entrepreneur is one who is always focussed on introducing a new-project or introducing something new in the venture already started.
(ii) Their innovation may take the form of brand new product, upgraded product, new method of production, reengineering of existing product etc.
2. Imitative Entrepreneur
(i) Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries.
(ii) For example many electronic products invented in advanced countries are simply reengineered in developing countries
3. Fabian Entrepreneur
(i) These entrepreneurs are said to be conservatives and sceptical about plasticising any change in their organisation. They are of risk-averse type.
(ii) They do not simply change themselves, they change only when they fear than non-adaptability will lead to loss of the enterprise.
4. Drone Entrepreneur
(i) Drone Entrepreneur are those who are totally opposed to changes unfolding in the environment.
(ii) Drone never try to adapt themselves with the changes even as a last resort. Example : Global Tooth Power.
l. Support to training and Employment programme for women (STEP)
Step was launched by the Government of India's ministry of women and child development to train women who have access to formal skill training facilities, especially in rural India
2. Jan Dhan Aadhaar mobile (JAM)
JAM, for the first time, is a technological intervention that enables direct transfer of subsidies to intended beneficiaries and therefore, eliminates all intermediates and leakages in the system, which has a potential impact on the lives of millions of Indian citizens.
3. Single point Registration Scheme (SPRS)
A great scheme for micro and small enterprises which provides an exemption from payment of earnest money deposit (EMD). Under this scheme, the tenders are issued free of cost.
4. Atal Incubation Centres (AIC)
The Government of India has set up the Atal Innovation Mission (AIM) at NITI Aayog in 2016 with over arching purpose of promoting a culture of innovation and entrepreneurship in the country.
5. Dairy Entrepreneurship Development scheme
Dairy Entrepreneurship Development scheme aims at helping entrepreneurs in the field of Agriculture, pets and animals and social impact to set up small dairy farms and incentives are provided to cover the cost of the required equipment or establishment of the facility.
Debentures are generally classified into different categories on the basis of:
(i) On the basis of convertibility; debentures may be classified into:
(a) Non-convertible debentures
(b) Partly convertible debentures
(c) Fully convertible debentures
(d) Optionally convertibility debentures
(ii) On the basis of security, debentures are classified into:
(a) Secured debentures
(b) Unsecured debentures
(iii) On the basis Redeemability debentures are classified into:
(a) Redeemable debentures
(b) Perpetual or Irredeemable debentures
(iv) On the basis of Registration, debentures may be classified as:
(a) Registered debentures
(b) Bearer debentures
Companies Act, 2013 (Act) has introduced many new concepts and Key Managerial Personnel (KMP) is one of them. KMP covers the traditional roles of managing director and whole time director and.also includes some functional heads like Chief Financial Officer and Chief Executive Officer and Company Secretary.
The definition of the term Key Managerial personnel is contained in section 2(51) of the Companies Act, 2013.This Section states:
(i) The Chief Executive Officer
(ii) The Managing Director or the Manager;
(iii) The Company Secretary;
(iv) The Whole-time Director;
(v) The Chief Financial Officer; and
(vi) Such other officer as may be prescribed.
I. Open Procedure
This type of voting has no secrecy as the all the members assembled can see voting.
a) By Voice:
Voice voting is a popular type of voting in which the chairman allows the members to raise their voice in favour or against an issue Yes for approval and No for rejection.
b) By Show of Hands:
The chairman, requests the members to raise their hands of those who are in favour of the proposal or candidate and then requests those are against.
II Secret Procedure
Secret procedure is adopted to decide certain vital issues. It is a popular voting method that could maintain the secrecy of the voter.
a) By Ballot
Under this system, ballot paper bearing serial number is given to the members to record their opinion by marking with the symbol or Shareholders have to cast their vote in a secret chamber and put the ballot paper into the ballot box.
b) Postal Ballot
(i) Under this method serially numbered ballot papers are sent by post in sealed covers to the members, who, living at a distant place
(ii) The voters fill in the Ballot papers and return them in sealed covers which are opened when the ballot box is opened for counting the votes.
The Span of management refers to the number of subordinates who can be managed efficiently by a superior. Simply,the manager having a group of subordinates who report him directly is called as the span of management. The Span of Management has two implications:
(i) Influences the complexities of the individual manager's job
(ii) Determine the shape or configuration of the Organization
The span of management is related to the horizontal levels of the organization structure. There is a wide and a narrow span of management. With the wider span, there will be less hierarchical levels, and thus, the organizational structure would be flatter. Whereas, with the narrow span, the hierarchical levels increases, hence the organizational structure would be tall.
(iii) Both these organizational structures have their advantages and disadvantages. But however the tall organizational structure imposes more challenges.
(iv) Since the span is narrow, which means less number of subordinates under one superior, requires more managers to be employed in the organization. Thus, it would be very expensive in terms of the salaries to be paid to each senior
(v) With more levels in the hierarchy, the communication suffers drastically. It takes a lot of time to reach the appropriate points, and hence the actions get delayed.
(vi) Lack of coordination and control because the operating staff is far away from the top management.
The major advantage of using this structure is that the cross communication gets facilitated, i.e., operative staff communicating with the top management. Also, the chance of promotion increases with the availability of several job positions
In the case of a flatter organizational structure, where the span is wide leads to a more complex supervisory relationship between the manager and the subordinate. It will be very difficult for a superior to manage a large number of subordinates at a time and also may not listen to all efficiently.
Functions of management can be classified into two categories.
A. Main functions; and
B. Subsidiary functions.
A. Main functions:
(i) Planning:
(a) Planning is the primary function of management.
(b) Nothing can be performed without planning.
(c) E.g. Writing a book starts with planning.
(ii) Organising:
(a) Organising is the process of establishing harmonious relationship among the members of an organisation.
(b) Organsing function work is assigned to employees who are given authority to carry out the work assigned and made accountable for it.
(iii) Staffing:
(a) Staffing function comprises the activities of selection and placement of competent personnel.
(b) Staffing refers to placement of right persons in the right jobs.
(iv) Directing:
(a) Directing denotes motivating, leading, guiding and communicating with subordinates.
(b) Employees are kept informed of all necessary matters by circulars, instructions man uals, newsletters, notice-boards, meeting, participative mechanism, etc.
B. Subsidiary functions:
(i) Innovation:
(a) Innovation refers to the preparation of personnel and organisation to face the changes made in the business world.
(b) Innovation includes developing new material, new products, new techniques in production, new package, new design of a product and cost reduction.
(ii) Representation:
(a) A manager has to act as representative of a company.
(b) Manager has dealings with customers, suppliers, government officials, banks, financial institutions, trade unions, etc.
(c) It is the duty of every manager to have good relation with others.
(iii) Decision-making:
(a) Everyemployee of an organisation has to take a number of decisions everyday.
(b) Decision - making helps in the smooth functioning of an organisation.
(iv) Communication:
(a) Communication is the transmission of human thoughts, views or opinions from one person to another person.
(v) Workers are informed about what should be done, where it is to be done, how it is to be done and when it is to be done.