(i) Bank of Hindustan was the first bank in India established in 1770 and was closed in 1932.
(ii) The General Bank of India was established in 1786 and was also liquidated in 1791.
(iii) Bank of Calcutta was the first joint stock bank established in 1806. It was renamed as the Bank of Bengal in 1809.
(iv) Bank of Bombay in 1840 and Bank of Madras in 1843 were established."These banks are called Presidential Banks"(Bengal, Bombay and Madras only)

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

On the basis of geographical location of buyers and sellers, trade can be broadly classified into two categories;
1) Internal Trade
2) External Trade

When a business firm of a country purchases goods from the firm of another country it is called as Import Trade.

Banking capital includes movement into external financial asset and liabilities commercial and co-operative banks authorized to dealing in foreign exchange.

1. Business have considerable social power.
2. Their decisions and actions affect the lives and fortunes of the society.
3. They collectively determine for the nation such important matters as level of employment, rate of economic progress and distribution of. income among various groups.

(i) A hawker sells toys for children near the park.
(ii) Paramesh works as a manager in a mobile company.
(iii) John is a advocate of high court.

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

(i) The claim for quantum merit may arise if a contract performed by one party has become discharged by breach of the other party. The meaning of the phrase quantum merit is as much as earned. The claim is not for the original contract that has been discharged or void, but on an implied promise by the other party to pay for what he has done. The court may order injunction in the following cases
(a) if the contract is voidable.
(b) if the contract becomes void or
(c) on discovering the contract as void.
(ii) Injunction is an order passed by a competent court restraining a person from doing some act. An injunction can be defined as a mode of securing the specific performance of the negative terms of a contract. Negative terms of the contract imply doing something, which a party has promised not to do. The injunction is an order which is granted by the court restraining the person to do what he had promised not to do.

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

Foreign direct investment (FDI) is an investment made by a company or an individual in one country with business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

Under this policy, the assured sum or policy money is payable in monthly or annual instalments after the assured attains a certain age. The policy is useful to those who prefer a regular income after a certain age.

1. All business units have realised that ethics is vitally important for the existence and progress of the business as well as the society.
2. It is very important as it improves public image, earns public confidence, and leads to greater success.
3. Ethics and profits go together in the long run. It enhances the quality of life, standard of living and business.

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.

1. 'CORE' stands for 'Centralized Online Real time Exchange'.
2. In the centralized server of the bank, all the details of all the accounts of all the branches of the bank are available.
3. A customer can withdraw money through cheque at any branch of that bank throughout the world.
4. Similarly anyone can deposit money into the account.

Out of Gross Total Income, Income tax Act, 1961 allows certain deductions under section 80. After allowing these deductions the figure which we arrive at is called 'Total Income' and on this figure tax liability is computed at the prescribed rates.

Multinational Company is an enterprise operating in several countries but managed from one country.

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.

(i) Convenience in buying:
The departmental stores provide great convenience to all the members in a family in buying almost all goods of their requirements at one place. A large variety of goods available in all the departments enable customers to save time and no need to run from one place to another to complete their shopping.
(ii) Attractive services:
It aims at providing maximum services and facilities to the customers such as home delivery of goods, execution of telephone orders, restrooms, restaurants, salons, children game centers, etc.
(iii) Central location:
These stores are usually located in central places so that more people can approach easily.
(iv) Elimination of middleman:
A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses. It helps in eliminating undesirable middlemen between the producers and the consumers.
(v) Economies of large scale operations:
The Departmental stores are organised at a large scale i.e., buy goods in bulk, therefore they enjoy the benefit of special discount. In turn, the customers get their goods in quality and lower price.

The aims and needs of Foreign trade are:
(i) To raise national income and standard of living:
The aim of foreign trade is to increase the income of the nation and increase the standard of living of the people.
(ii) To enable equal distribution of natural resources:
Every country has a different type of natural resources. A country which has more natural resources gives to other countries. For example, Kuwait has more petrol Hence, foreign trade distributes surplus resources to the needy countries.
(iii) To enable even distribution of agricultural products:
Different countries have different facilities to produce agricultural resources. For example, Cuba produces more sugar, Egypt produces more cotton and Argentina produces surplus wheat. Thus, foreign trade distributes surplus production to needy countries.
(iv) To minimise hurdles in production:
The developing and under-developed countries face a shortage of raw materials, machinery, technical know-how, etc. Through foreign trade, these countries can import goods from other countries.
(v) To reduce differences in economic growth rate:
Economic growth rate differs from one country to another. The underdeveloped countries takes financial and technical help from the advanced countries. This increases international trade.
(vi) To share the benefits of low cost of production:
Foreign trade enables a country to share the benefits of low cost of production by importing goods from the country, where the cost of production is minimum.
(vii) To enjoy the fruits of the development of science and technology:
Due to the advancement of science and technology, the needs of the consumers have increased Internal trade alone cannot satisfy the needs of the people, so international trade becomes essential.

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.

Franchising fees:
The initial franchising fee and the subsequent renewal fees can be very high in case of successful businesses. From the franchisee's point of view, this may be a deterrent.
Fixed royalty payment:
The franchisee has to make payment of royalty to the franchiser on a regular basis. This considerably reduces the income of the franchisee.
Danger of image tarnishing:
If the franchisee does not maintain standards of quality and service; there is a danger that the goodwill and image of the reputed franchiser will be adversely affected.
Lack of freedom:
The franchisee does not have the freedom to run his business in an independent manner. He has to abide by management and operational policies of the franchiser, This may serve as a deterrent whether suitable to him or not.
Limitation on range of products:
The franchisee cannot introduce new product lines into the business, except those permitted by franchiser. This may mean loss of business to franchisee amidst demands based on local conditions.

Ocean transport may be divided into two broad categories.
a) Coastal shipping :
Coastal shipping constitutes an important means of transport in all countries having a long coastline. It is a cheap means of transport for the movement of bulky cargoes like coal, iron ore etc. to domestic ports of country. Usually, coastal shipping trade of· a country is reserved for national shipping. In India, Coastal shipping trade is now exclusively reserved for Indian ships.
b) Overseas shipping :
It means the passengers and goods have to cross ocean. Example India export goods to America.

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.

There are four types of damages which can be claimed by the aggrieved party.
(i) Ordinary damages
(ii) Special damages
(iii) Vindictive or Exemplary damages and
(iv) Nominal damages
(i) Ordinary or General damages:
(1) Damages that arise in the ordinary course of events from the breach of contract are called ordinary or general damages.
(2) These include damages, which are the natural and probable consequences of the breach of the contract.
(3) For Example A contracted to sell and deliver B 50 bags of rice at Rs 1400 per bag and price to be paid at the time of delivery.
(4) The price is raised to Rs1500 per bag and A refused to sell the rice. B can claim damages at the rate of Rs100 per bag.
(ii) Special damages:
(1) Special damages are those damages that are payable for the loss arising on account of some special or unusual circumstances.
(2) That is, they are not due to the natural and probable consequences of the breach of the contract.
(3) For Example A entered into a contract with B, to supply B 500 tons of iron at Rs 100 a ton, to be delivered at a stated time, and at the same time contracted with C for the purchase of 500 tons of iron at Rs 80 a ton; telling C that he does so far the purpose of performing his contract with B.
(4) C failed to perform his contract with A, who cannot procure the iron and B, in consequence, rescinded the contract.
(5) C must pay to A Rs10,000 being the profit which A would have made by the performance of his contract with B.
(iii) Vindictive or Exemplary damages:
(1) These damages are awarded against the party who has committed a breach of the contract with the object of punishing the erring as defaulting party and compensating the aggrieved party.
(2) Generally these damages are awarded in case of action on loss or breach of promise.
(3) Example breach of contract to marry, dishonour of customers' cheque by the bank without any proper reason.
(iv) Nominal damages:
(1) Nominal damages are awarded to the aggrieved party when there is an only technical violation of the legal rights.
(2) Here no substantial loss is caused. These damages are very small in amount.

IMF and India:
Free Convertibility of Indian Rupee:
Indian rupee has become independent after the establishment of IMF, Earlier it was linked with pound sterling. Its value is now determined in terms of Gold. Hence it is freely convertible.
(i) Loan for developmental activities :
India has got several loan facilities from IMF for its several development projects.
(ii) Ability to purchase Foreign currencies :
Government of India is able to purchase foreign currencies from time to time to meet the ever-growing requirement of development activities.
(iii) Expert Advice:
(1) India used to get expert advice from IMF for solving the economic problems.
(2) It has given valuable advice to India with regards to financing its 5 year plan.
(iv) Timely help:
India has received timely help from IMF many a time to eliminate the deficit in its balance of payments. India got help from IMF during 1966 in the aftermath of war with Pakistan. It received assistance from IMF during for combating oil shock. Between 1980 and 1983 India got assistance from IMF to manage global economic recession.
(v) Financial assistance during natural calamities :
India has got a lot of financial assistance from IMF to solve the economic crisis arising from natural calamities like floods, famine, earthquake, aggressions of Chinese and Pakistan, etc. It gets technical assistance from IMF.
(vi) Membership in world bank:
By virtue of its membership in IMF, India could become member in the World Bank.
(vii) Help during 1991 Economic Crisis:
(1) During 1990, India faced series serious economic crisis;Indian government was almost nearing bankruptcy.
(2) It has got assistance from IMF by pledging its gold reserve with it to solve its balance of payments crisis.

Dissolution of a partnership firm is taken place in two ways.
(a) without the order of the court and
(b) By order of the court.
Without the order of the court
a) By agreement or mutual consent:
A firm may be dissolved when all the partners agree to close the affairs of the firm. Just as a partnership is created by contract, it can also be terminated by contract.
b) By insolvency of all the partners but one:
If any of the partners adjudged an insolvent (or if all the partners become insolvent) it is necessary to dissolve the firm.
c) When the objective becomes illegal:
When the business carried on by the partnership becomes illegal, the partnership firm is automatically dissolved.
d) By notice of dissolution :
In the case of partnership at will when any partner gives in writing to all the other partners indicating his intention to dissolve the firm, the firm will be dissolved.
e) On certain contingencies:
Dissolution of the partnership itself may involve the dissolution of the firm unless parties agree to continue it otherwise, it will take place.
i. On the expiry of a specified period in case of partnership for a fixed term.
ii. On the completion of a particular adventure for which it has been formed in case of particular partnership.
iii. On the death of a partner.
iv. On the retirement of a partner.
v. On the insolvency of a partner.
In all the above cases if the business is not continued by the remaining partners, dissolution of the firm takes place automatically.
Dissolution through court:
(a) When a partner becomes insane
(b) Permanent incapacity of any partner
(c) Misconduct of any partner
(d) Breach of the agreement which makes the business impracticable
(e) Transfer of interest to third person
(f) Continued loss
(g) When the court finds that it is just and equitable to dissolve the firm

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.

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.

The various sources of Finance can be classified into three categories on the basis of :
(i) Period
(ii) Ownership and
(iii) Source of generation
(i) On the basis of period :
The different source of finance can be further grouped into three categories on the basis of period:
(1) Short-term Finance - Bank overdraft, Commerce paper
(2) Medium-term Finance - Loan from bank, Lease financing.
(3) Long-term Finance - Shares, Debentures, etc.
(ii) On the basis of Ownership:
Business Finance can be divided into two categories based on ownership funds :
(1) Owners Funds - Equity shares, Retained earnings.
(2) Borrowed Funds - Debentures, loan from bank and institutions.
(iii) On the basis of Generation:
The sources of funds can be grouped into two categories based on generation:
(1) Internal sources - Trade debtors and bills receivable.
(2) External sources - Factoring, Leasing, Hire purchasing, etc.

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.