12th Commerce Study Material em

DCR Commerce Guide
XII-COMMERCE
Study Material 2022-2023
D.Chithambararaj MBA,M.Com,B.Ed
2022-2023
www.nammakalvi.com
Chapter 1: PRINCIPLES OF MANAGEMENT
I .VERY SHORT ANSWER QUESTIONS:
1.What is Management?
➢ Management is goal oriented and it is an art of getting things done with and through
others.
➢ Management is part and parcel of our day to day life.
➢ The practice of management helps to achieve the organizational mission and
determines the future of the business enterprises.
➢ It is a global and universal concept.
2.List out the management tools.
➢ Tools of management have been developed such as, accounting, business law,
psychology, statistics, econometrics, data processing, etc.
➢ These branches of management profession have enhanced the practical utility of the
science of management.
3.State the meaning of Authority.
➢ Authority means the right of a superior to give the order to his subordinates
➢ This is the issue of commands followed by responsibility for their consequences.
4.What do you mean by Span of management?
➢ The Span of Management refers to the number of subordinates who can be
managed efficiently by a superior.
➢ Simply, the manager having the group of subordinates who report him directly is
called as the span of management.
II. SHORT ANSWER QUESTIONS:
1. Define the term management.
“Management is a multipurpose organ that manages a business and manages
manager, and manages worker and work.”
— Peter F. Drucker
“To manage is to forecast, to plan, to organise, to command, to co-ordinate and to
control.”
—Henry Fayol.
2. Differentiate Management from Administration.
BASIS FOR COMPARISON MANAGEMENT ADMINISTRATION
Meaning An organized way of The process of
managing people and administering an
things of a business organization by a group
organization is called the of people is known as
Management the Administration.
Authority Middle and Lower Level Top Level
Role Executive Decisive
Concerned with Policy Implementation Policy Formulation
3. What are the principles of Taylor? (Explain any 3 principles)

Principles of scientific management propounded by Taylor are
1. Science, Not Rule of Thumb
➢ This principle is concerned with selecting the best way of performing a
job through the application of scientific analysis and not by intuition or hit
and trial methods.
2. Harmony, Not Discord
➢ Taylor emphasized that there should be complete harmony between the
workers and the management since if there is any conflict between the
two; it will not be beneficial either for the workers or the management.
D.Chithambararaj PGT Commerce

www.nammakalvi.com
3. Mental Revolution
➢ The technique of Mental Revolution involves a change in the attitude of
workers and management towards each other. Both should realize the
importance of each other and should work with full cooperation.
4. Cooperation, Not Individualism
5. Development of each and every person to his or her greatest efficiency and
prosperity.
4. What determines the span of management?
➢ The Span of Management refers to the number of subordinates who can
be managed efficiently by a superior.
The Span of Management has two implications:
1. Influences the complexities of the individual manager‘s job
2. Determine the shape or configuration of the Organization
➢ 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. Long answer questions:

1. Explain the concept of management.
i. Body of Knowledge:
➢ Management has now developed into a specialised body of management theory and
philosophy. Management literature is growing in all countries.
➢ In fact, management knowledge is the best passport to enter the world of
employment.
ii. Management Tools:
➢ Tools of management have been developed such as, accounting, business law,
psychology, statistics, econometrics, data processing, etc.
iii. Separate Discipline:
➢ Management studies in many universities and institutions of higher learning are
recognised as a separate discipline. Since 1951, many specialised schools of
management offering master‘s degree in business management and administration.
iv. Specialisation:
➢ There is a growing tendency to select and appoint highly qualified, trained and
experienced persons to manage the business in each functional areas of
management.
➢ Thus we have today an increasing tendency in favour of management by experts or
professionals.
v. Professional Association:
➢ The Business Management Associations in many countries to promote the spread of
knowledge in all management areas and to build up the bright public image of
managerial profession.
2. Explain the principles of modern management. (Any 5)

The Father of Modern Management is Mr.HenryFayol, and according to him there
are 14 major principles of management.
i. Division of Work:
✓ According to this principle the whole work is divided into small tasks.
✓ It leads to specialization which increases the efficiency of labour.
ii. Authority and Responsibility:
✓ Authority means the right of a superior to give the order to his subordinates
whereas responsibility means obligation for performance.

www.nammakalvi.com
iii. Discipline:
✓ It is obedience, proper conduct in relation to others, respect of authority, etc.
It is essential for the smooth functioning of all organizations.
iv. Unity of Command:
✓ This principle states that each subordinate should receive orders and be
accountable to one and only one superior.
✓ If an employee receives orders from more than one superior, it is likely to
create confusion and conflict.
v. 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.
vi. Subordination of Individual Interest to Mutual Interest:
✓ The management must put aside personal considerations and put company
objectives firstly. Therefore the interests of goals of the organization must
prevail over the personal interests of individuals.
vii. Remuneration:
✓ Workers must be paid sufficiently as this is a chief motivation of employees
and therefore greatly influences productivity.
viii. The degree of centralization
ix. Line of Authority/scalar chain
x. Order
xi. Equity
xii. Stability of tenure of personnel
xiii. Initiative
xiv. Esprit de corps/ Team spirit
Chapter 2: FUNCTIONS OF MANAGEMENT:

I. Very Short Answer Questions:
1. Write a short note about Planning.
✓ Planning is the primary function of management. Nothing can be performed without
planning.
✓ Planning refers to deciding in advance. Planning should take place before doing.
2. What is meant by Motivation?
✓ It is the process of stimulating people to actions to accomplish the goal.
✓ Motivation includes increasing the speed of performance of a work and developing
a willingness on the part of workers.
✓ The goals are achieved with the help of motivation.
3. List the subsidiary functions of management.
➢ Innovation, Representation, Decision-making, and Communication are the subsidiary
functions of management.
4. What is the Traditional proverb used in planning?
➢ Think Before you Act‘ or 'Look Before you Leap' are some of the usual traditional
proverbs; which provide a basis or logic for planning.
II. Short Answer Questions:
1. List out the main functions of management?(Explain any 3 –refer long answer No 1)
➢ Planning
➢ Organizing
➢ Staffing
➢ Directing
➢ Motivating
➢ Controlling
➢ Coordination
www.nammakalvi.com
2. State the importance of staffing.
➢ Staffing refers to placement of right persons in the right jobs.
➢ The success of any enterprise depends upon the successful performance of
staffing function.
➢ Staffing helps to ensure better utilization of human resources.
➢ It ensures the continuity and growth of the organization, through
development managers.
3. How the employees are informed about important matters in a company?
➢ Communication is the transmission of human thoughts, views or opinions from one
person to another person.
➢ Workers are informed about what should be done, where it is to be done, how it is
do be done and when it is to be done.
➢ Communication helps the regulation of job and co-ordinates the activities.
III. Long Answer Questions:

1. Explain the various functions of management.(Any 5)
Main Functions:
I. Planning:
➢ Planning is the primary function of management. Nothing can be performed
without planning.
➢ Planning refers to deciding in advance. Planning should take place before
doing.
II. Organising:
➢ Organising is the process of establishing harmonious relationship among the
members of an organisation and the creation of network of relationship
among them.
III. Staffing:
➢ staffing refers to placement of right persons in the right jobs. The success of
any enterprise depends upon the successful performance of staffing function
IV. Directing:
➢ Directing denotes motivating, leading, guiding and communicating with
subordinates on an ongoing basis in order to accomplish pre-set goals.
V. Motivating:
➢ It is the process of stimulating people to actions to accomplish the goal.
Motivation includes increasing the speed of performance of a work and developing a
willingness on the part of workers.
VI. Controlling:
➢ It is the control function which facilitates synchronization of actual
performance with predetermined standards.
VII. Co ordination:
➢ Co-ordination is the synchronization of the actions of all individuals, working
in the enterprise in different capacities.
Subsidiary Functions:
I. Innovation:
Innovation refers to the preparation of personnel and organisation to face the
changes made in the business world.
II. Representation:
A manager has to act as representative of a company. It is the duty of every
manager to have good relation with others.
III. Decision-making:
Every employee of an organisation has to take a number of decisions every day.
Decision making helps in the smooth functioning of an organization.

www.nammakalvi.com
IV. Communication:
Communication is the transmission of human thoughts, views or opinions from one
person to another person.
***************************************************************************
Chapter 3: MANAGEMENT PROCESS:

1. What are the objectives of MBO?
✓ To measure and judge performance
✓ To relate individual performance to organisational goals
✓ To clarify both the job to be done and the expectations of accomplishment
✓ To enhance communications between superiors and subordinates
2.Bring out the meaning of MBE.
✓ Management by exception is a style of business management that focuses on
identifying and handling cases that deviate from the norm.
✓ Management by exception is the practice of examining the financial and operational
results of a business, and only bringing issues to the attention of management if
results represent substantial differences from the budgeted or expected amount.
3. Mention any two advantages of MBO?
✓ MBO process helps the managers to understand their role in the total organisation.
✓ Manager recognises the need for planning and appreciates the planning.
✓ Systematic evaluation of performance is made with the help of MBO
4. What is known as KRA?
✓ Key result areas are fixed on the basis of organisational objectives premises.
✓ Key Result Areas (KRA) are arranged on a priority basis.
✓ KRA indicates the strength of an organisation.
✓ The examples of KRA are profitability, market standing, innovation etc.
1. Write the features of MBO.
❖ MBO tries to combine the long run goals of organisation with short run goals.
❖ Management tries to relate the organisation goals with society goals.
❖ MBO’s emphasis is not only on goals but also on effective performance.
❖ A high degree of motivation and satisfaction is available to employees
through MBO.
2. What are the Process of MBE?
❖ it is necessary to set objectives or norms with predictable or estimated results.
These performances are assessed and get equated to the actual performance.
❖ Next, the deviation gets analysed. With an insignificant or no deviation, no action is
required and senior managers can concentrate on other matters.
❖ If actual performances deviates significantly, the issue needs to be passed to the
senior managers, as an “exception has occurred”. Finally, the aim is to solve this
“exception” immediately.
3. List out any three process of MBO.
➢ Defining Organisational Objectives
➢ Goals of Each Section
➢ Fixing Key Result Areas
➢ Setting Subordinate Objectives or Targets
➢ Matching Resources with Objective
➢ Periodical Review Meetings
➢ Appraisal of Activities
➢ Reappraisal of Objectives

www.nammakalvi.com
1. What are the major advantages of MBO?
➢ MBO process helps the managers to understand their role in the total organisation.
➢ Manager recognises the need for planning and appreciates the planning.
➢ MBO provides a foundation for participative management. Sub-ordinates are also
involved in goal setting.
➢ Systematic evaluation of performance is made with the help of MBO.
➢ MBO gives the criteria of performance. It helps to take corrective action.
➢ Delegation of authority is easily done with the help of MBO.
➢ MBO motivates the workers by job enrichment and makes the jobs meaningful.
➢ The responsibility of a worker is fixed through MBO.
2. What are the advantages of MBE?

➢ It saves the time of managers because they deal only with exceptional matters.
Routine problems are left to subordinates.
➢ It focuses managerial attention on major problems. As a result, there is better
utilisation of managerial talents and energy
➢ It facilitates delegation of authority. Top management concentrates on strategic
decisions and operational decisions are left to the lower levels.
➢ It is a technique of separating important information from unimportant one.
➢ MBE keeps management alert to opportunities and threats by identifying critical
problems. It can avoid uninformed and impulsive action.
➢ Management by exception provides better yardsticks for judging results. It is helpful
in objective performance appraisal.
3. Discuss the disadvantages of MBE

➢ 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.
➢ Furthermore, it takes time to pass the issues to managers. Managing employees who
deviate from the normal procedures. Because of compliance failures are considered
difficult to manage and typically find themselves with limited job duties and
ultimately dismissed/terminated.
***************************************************************************
Chapter 4: FINANCIAL MARKETS:

1. What are the components of organized sectors?
Organized sector consist of,
i.Regulators ii. Financial Institutions iii. Financial Markets and Financial Services
2. What is spot market?
It is a market where the delivery of the financial instrument and payment of cash
occurs immediately. i.e. settlement is completed immediately.
3. What is debt market?
It is the financial market for trading in Debt Instrument (i.e. Government Bonds or
Securities, Corporate Debentures or Bonds)
4. How is prize decided in a secondary market?
Prices in the secondary market are determined by the basic forces of supply and
demand. If the majority of investors believe a stock will increase in value and rush to buy it,
the stock's price will typically rise.

www.nammakalvi.com
1. Give the meaning of financial market.
• A market wherein financial instruments such as financial claims, assets and
securities are traded is known as a ‘financial market’.
• Financial market transactions may take place either at a specific place or
location, e.g. stock exchange, or through other mechanisms such as
telephone, telex, or other electronic media.
2. Write a note on Secondary Market.
• The place where formerly issued securities are traded is known as Secondary
Market.(Resale Market)
• Secondary Market is the market for securities that are already issued. Stock
Exchange is an important institution in the secondary market.
• It does not provide funding to companies
3. Bring out the scope of financial market in india.
➢ The financial market provides financial assistance to individuals, agricultural sectors,
industrial sectors, service sectors, financial institutions like banks, insurance sectors,
provident funds and the government as a whole.
➢ With the help of the financial market all the above stated individuals, institutions
and the Government can get their required funds in time.
➢ Through the financial market the institutions get their short term as well as long
term financial assistance. It leads to the overall economic development.
1. Distinguish between new issue market and secondary market. (Any 5)
BASIS FOR COMPARISON NEW ISSUE MARKET SECONDARY MARKET

Meaning The market place for new The place where formerly
shares is called primary issued securities are traded
market. (Initial Issues is known as Secondary
Market) Market. (Resale Market)
Buying Direct Indirect
Gained person Company Investors
Intermediary Underwriters Brokers
Buying and Selling between Company and Investors Investors
How can securities be sold? Only Once Multiple times
Organizational Not rooted to any specific It has physical existence
difference spot or geographical
location
2. Enumerate the different types of financial markets (Any 5)
a. On the Basis of Type of Financial Claim
(i) Debt Market is the financial market for trading in Debt Instrument (i.e. Government
Bonds or Securities, Corporate Debentures or Bonds)
(ii) Equity Market is the financial market for trading in Equity Shares of Companies.
b. On the Basis of Maturity of Financial Claim
(i) Money Market is the market for short term financial claim (usually one year or less) E.g.
Treasury Bills, Commercial Paper, Certificates of Deposit
(ii) Capital Market is the market for long term financial claim more than a year E.g. Shares,
Debentures
C. On the Basis of Time of Issue of Financial Claim
(i) 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). Here the money from investors
goes directly to the issuers.

www.nammakalvi.com
(ii) Secondary Market is the market for securities that are already issued. Stock Exchange is
an important institution in the secondary market.
d. On the Basis of Timing of Delivery of Financial Claim
(i) Cash/Spot Market is a market where the delivery of the financial instrument and
payment of cash occurs immediately. i.e. settlement is completed immediately.
(ii) Forward or Futures Market is a market where the delivery of asset and payment of cash
takes place at a pre-determined time frame in future.
e. On the Basis of the Organizational Structure of the Financial Market
(i) Exchange Traded Market is a centralized organization (stock exchange) with standardized
procedures.
(ii) Over–the–Counter Market is a decentralized market (outside the stock exchange) with
customized procedures.
The above classification is not rigid. One market may come under more than one category.
3. Discuss the role of financial market.

(i) Savings Mobilization:
Obtaining funds from the savers or ‘surplus’ units such as household individuals,
business firms, public sector units, Government is an important role played by financial
markets.
(ii) Investment :
Financial market plays a key role in arranging the investment of funds thus collected,
in those units which are in need of the same.
(iii) National Growth
Financial markets contribute to a nation’s growth by ensuring an unfettered flow of
surplus funds to deficit units. Flow of funds for productive purposes is also made possible. It
leads to overall economic growth.
(iv) Entrepreneurship Growth
Financial markets contribute to the development of the entrepreneurial class by
making available the necessary financial resources.
(v) Industrial Development:
The different components of financial markets help an accelerated growth of
industrial and economic development of a country and thus contributing to raising the
standard of living and the society’s well-being
Chapter 5: CAPITAL MARKET

1. What is Capital Market?
➢ Capital market is a market where buyers and sellers engage in trade of financial
securities like bonds, and stocks.
➢ The buying/selling is undertaken by participants such as individuals and institutions.
2. Write a note on OTCEI.
➢ The OTCEI was set up by a premier financial institution to allow the trading of
securities across the electronic counters throughout the country.
➢ It addresses some specific problems of both investors and medium-size companies.
➢ Some of the greatest strengths of OTCEI are transparency of transactions, quick
deals, faster settlements and better liquidity.
3. Who are the participants in a Capital Market?
There are many players in the capital market. The participants of the capital market
include individuals, corporate sectors, Govt., banks and other financial institutions..
4. How is price determined in a Capital Market?
After a company goes public and starts trading on the exchange, its price is
determined by supply and demand for its shares in the market.

www.nammakalvi.com

1. What are the various kinds of Capital Market? Explain.
I Primary Market:
Primary market is a market for new issues or new financial claims. Hence, it is also
called New Issue Market.
*Public issue-raising capital by new companies is through sale of securities to the
public
*Rights issue-securities are first offered to the existing shareholders on a pre-
emptive basis
*Private placement-selling securities privately to a small group of investors.
II Secondary Market:
Secondary Market may be defined as the market for old securities, in the sense that
securities which are previously issued in the primary market are traded here. The trading
takes place between investors.
2. Explain any two functions of Capital Market.

(i) Savings and Capital Formation:
In capital market, various types of securities help to mobilize savings from various sectors of
population (Individuals, Corporate, Govt., etc.)
(ii) Reliable Guide to Performance:
The capital market serves as a reliable guide to the performance and financial position of
corporate, and thereby promotes efficiency.
3. Explain about Factoring and Venture Capital Institutions.

(i) Factoring Institutions:
“Factoring” is an arrangement whereby a financial institution provides financial
accommodation on the basis of assignment/ sale of account receivables. The factoring
institutions collect the book debts for and on behalf of its clients.
(ii) Venture Fund Institutions:
• Venture capital financing is a form of equity financing designed especially for funding
new and innovative project ideas.
• Venture capital funds bring into force the hi-technology projects which are
converted into commercial production.

1. Discuss the characters of a Capital Market.
(i) Securities Market:
The dealings in a capital market are done through the securities like shares, debentures, etc.
The capital market is thus called securities market.
(ii) Price:
The price of the securities is determined based on the demand and supply prevailing in the
capital market for securities.
(iii) Participants:
There are many players in the capital market. The participants of the capital market include
individuals, corporate sectors, Govt., banks and other financial institutions.
(iv) Location :
Capital market is not confined to certain specific locations, although it is true that parts of
the market are concentrated in certain wellknown centers known as Stock Exchanges.
(v) Market for Financial Assets:
Capital market provides a transaction platform for long term financial assets

www.nammakalvi.com
2. Briefly explain the functions of capital market.

(i) Savings and Capital Formation:
In capital market, various types of securities help to mobilize savings from various
sectors of population (Individuals, Corporate, Govt., etc.) This accelerates the capital
formation in the country.
(ii) Permanent Capital:
• The existence of a capital market/stock exchange enables companies to raise
permanent capital.
• The stock exchange resolves this dash of interests by offering an opportunity to
investors to buy or sell their securities, while permanent capital with the company
remains unaffected.
(iii) Industrial Growth:
The stock exchange is a central market through which resources are transferred to
the industrial sector of the economy
(iv) Ready and Continuous Market:
• The stock exchange provides a central convenient place where buyers and sellers
can easily purchase and sell securities.
• Easy marketability makes investment in securities more liquid as compared to other
assets.
(v) Reliable Guide to Performance:
The capital market serves as a reliable guide to the performance and financial
position of corporate, and thereby promotes efficiency.
(vi) Easy Liquidity:
With the help of secondary market investors can sell off their holdings and convert
them into liquid cash. Commercial banks also allow investors to withdraw their deposits, as
and when they are in need of funds.
3. Explain the various types of New Financial Institutions

(i) Venture Fund Institutions:
Venture capital financing is a form of equity financing designed especially for
funding new and innovative project ideas. Venture capital funds bring into force the hi-
technology projects which are converted into commercial production.
(ii) Mutual Funds:
Financial institutions that provide facilities for channeling savings of small investors
into avenues of productive investments are called ‘Mutual Funds’.
(iii) Factoring Institutions:
“Factoring” is an arrangement whereby a financial institution provides financial
accommodation on the basis of assignment/ sale of account receivables. The factoring
institutions collect the book debts for and on behalf of its clients.
(iv) Over the Counter Exchange of India (OTCEI):
The OTCEI was set up by a premier financial institution to allow the trading of
securities across the electronic counters throughout the country. It addresses some specific
problems of both investors and medium-size companies.
(v) National Stock Exchange of India Limited (NSEI):
NSEI was established in 1992 to function as a model stock exchange. The Exchange
aims at providing the advantage of nationwide electronic screen based “scripless” and
“floorless” trading system in securities.
(vi) National Clearance and Depository System (NCDS):
Under the scripless trading system, settlement of transactions relating to securities
takes place through a book entry.
***********************************************************************

www.nammakalvi.com
Chapter 6: MONEY MARKET
1. What is a CD market?
➢ Certificate of Deposits are short-term deposit instruments issued by banks and
financial institutions to raise large sums of money.
➢ Certificate of Deposits are issued in the form of usance promissory notes. Its
transferable from one party to another.
2. What is Government Securities Market?
A market whereby the Government or gilt-edged securities can be bought and sold is
called ‘Government Securities Market’.
3. What do you meant by Auctioning?
A method of trading whereby merchants bid against one another and where the
securities are sold to the highest bidder is known as ‘auctioning’.
4. What do you meant by Switching?
The purchase of one security against the sale of another security carried out by the
RBI in the secondary market as part of its open market operations is described as‘Switching’.

1. What are the features of Treasury Bills?
Treasury Bills incorporate the following general features.
1. Issuer
2. Finance Bills
3. Liquidity
4. Vital Source
5. Monetary Management
2. Who are the participants of Money Market?
1.Government of different countries
2.Central Banks of different countries
3.Private and Public Banks
4.Mutual Funds Institutions
5.Insurance Companies
6.Non-Banking Financial Institutions
7.RBI and SBI
3. Explain the types of Treasury Bills?
91 days Treasury Bills :
➢ Its issued at a fixed discount rate of 4 per cent as well as through auctions.
182 days Treasury Bills:
➢ The RBI holds 91 days and 182 Treasury Bills and they are issued on tap basis
throughout the week.
364 days Treasury Bills:
➢ 364 days Treasury Bills do not carry any fixed rate. The discount rate on these bills
are quoted in auction by the participants and accepted by the authorities. Such a
rate is called cut off rate.
4. What are the types of Commercial Bill?
✓ Demand Bills
A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are
payable immediately when they are presented to the drawee.
✓ Clean bills and documentary Bills
-Bills that are accompanied by documents of title to goods are called documentary bills.
-Clean bills are drawn without accompanying any document.
✓ Indigeneous Bills
The drawing and acceptance of indigenous bills are governed by native custom or usage of
trade.
✓ Accommodation Bills
www.nammakalvi.com
✓ Inland bills and Foreign Bills

1. Differentiate between the Money Market and Capital Market.
SL.NO FEATURES MONEY MARKET CAPITAL MARKET
1 Duration of Funds It is a market for short-term It is a market for long-term
loanable funds for a period of funds exceeding period of
not exceeding one year. one year.
2 Deals with It deals with instruments like It deals with instruments
Instruments commercial bills (bill of exchange, like shares, debentures,
treasury bill, commercial papers Government bonds, etc.,
etc.).
3 Role of Major The central bank and Development banks and
Institution commercial banks are the Insurance companies play
major institutions in the a dominant role in the
money market. capital market.
4 Availability of Money Market instruments Capital market instruments
Instruments generally do not have generally have secondary
secondary market. markets.
5 Risk Low credit and market risk. High credit and market risk
6 Liquidity High liquidity in Money Market Low liquidity in Capital
Market
2. Explain the characteristics of Money Market?

1.Short-term Funds
It is a market purely for short-term funds or financial assets called near money.
2.Maturity Period
It deals with financial assets having a maturity period upto one year only.
3.Conversion of Cash
It deals with only those assets which can be converted into cash readily without loss
and with minimum transaction cost.
4.Existence of Secondary Market
There should be an active secondary market for these instruments.
5.Demand and Supply of Funds
There should be a large demand and supply of short-term funds. It presupposes the
existence of a large domestic and foreign trade.
6.Wholesale Market
It is a wholesale market and the volume of funds or financial assets traded in the
market is very large.
3. What are the characteristics of Government Securities?(Any 5)

1. Agencies
Government securities are issued by agencies such as Central Government, State
Governments, semi-government authorities like local Government authorities, e.g.
municipalities, autonomous institution such as metropolitan authorities, port trusts etc.,
2. RBI Special Role
RBI takes a special and an active role in the purchase and sale of these securities as
part of its monetary management exercise.
www.nammakalvi.com
3. Nature of Securities
Securities offer a safe avenue of investment through guaranteed payment of interest
and repayment of principal by the Government.
4. Liquidity Profile
The liquidity profile of gilt-edged securities varies. Accordingly liquidity profile of
securities issued by Central Government is high.
5. Issue Mechanism
The Public Debt Office (PDO) of the RBI undertakes to issue government securities.
6. Issue opening
A notification for the issue of the securities is made a few days before the public
subscription is open.
7. Switching
The purchase of one security against the sale of another security carried out by the RBI
in the secondary market as part of its open market operations is described as ‘Switching’.
8. Auctioning
A method of trading whereby merchants bid against one another and where the
securities are sold to the highest bidder is known as ‘auctioning’.
Chapter 7: STOCK EXCHANGE

1. What is meant Stock Exchange?
❖ Stock Exchange is an organized market for the purchase and sale of industrial and
financial security.
❖ Stock Exchange (also called Stock Market or Share Market) is one of the important
constituents of Capital market.
❖ It is an investment intermediary and facilitates economic and industrial development
of a country.
2. Write any 5 Stock Exchanges in India.
✓ The Bombay Stock Exchange
✓ The National Stock Exchange of India (NSE) Ltd.
✓ The Coimbatore Stock Exchange Ltd.
✓ The Madras Stock Exchange Ltd
✓ Bangalore Stock Exchange Ltd.
3. What is meant by Remisier?
He acts as an agent of a member of a stock exchange. He obtains business for his
principal i.e., the member and gets a commission for that service.
4. Who is called a Broker?
✓ Brokers are commission agents, who act as intermediaries between buyers and
sellers of securities.
✓ They do not purchase or sell securities on their behalf. They bring together the
buyers and sellers and help them in making a deal.
✓ Brokers charge a commission from both the parties for their service.
5. What are the types of Speculator?
✓ Bull
✓ Bear
✓ Stag
✓ Lame Duck

1. What are the limitations of Stock exchange?
i. Lack of uniformity and control of stock exchanges.
ii. Absence of restriction on the membership of stock exchanges.
www.nammakalvi.com
iii. Failure to control unhealthy speculation.
iv. Allowing more than one charge in the place.
v. No proper regulation of listing of securities on the stock exchange
2. Explain Bull and Bear.
Bull:
✓ A Bull or Tejiwala is an operator who expects a rise in prices of securities in the
future.
✓ The bull speculator stimulates the price to rise. He is an optimistic speculator.
✓ In anticipation of price rise he makes purchases of shares at present and other
securities with the intention to sell at higher prices in future
Bear:
✓ A bear or Mandiwala speculator expects prices to fall in future and sells securities at
present with a view to purchase them at lower prices in future.
✓ The bear speculator tends to force down the prices of securities. A bear is a
pessimistic speculator.
3. Explain Stag and Lame Duck.

Stag:
❖ A stag is a cautious speculator in the stock exchange. He applies for shares in new
companies and expects to sell them at a premium, if he gets an allotment.
❖ He selects those companies whose shares are in more demand and are likely to carry
a premium.
❖ He sells the shares before being called to pay the allotment money. He is also called
a premium hunter.
Lame Duck:
✓ When a bear finds it difficult to fulfill his commitment, he is said to be struggling like
a lame duck.
✓ A bear speculator contracts to sell securities at a later date. On the appointed time
he is not able to get the securities as theholders are not willing to part with them.
✓ In such situations, he feels concerned. Moreover, the buyer is not willing to carry
over the transactions.

1. Explain the functions of Stock Exchange. (Any 5)
1. Ready and Continuous Market
Stock Exchange is, in fact, a market for existing securities. If an investor wants to sell
his securities, he can easily and quickly dispose them off on a stock exchange.
2. Protection to Investors
All dealings in a stock exchange are in accordance with well-defined rules and
regulations. For example, brokers cannot charge higher rate of commission for their
services. Any malpractice will be severely punished.
3.Aid to Capital Formation
Stock exchanges thus ensure a steady flow of capital into industry and assists
industrial development.
4.Correct Evaluation of Securities
The prices at which securities are bought and sold are recorded and made public.
These prices are called “market quotations”.
5.Facilities for Speculation
Speculation is an integral part of stock exchange operations. As a result of
speculation, demand for and supply of securities are equalized. Similarly, price movements
are rendered smoothly.
6.Clearing House of Business Information

www.nammakalvi.com
2. Explain the features of Stock Exchange. (Any 5)

1. Market for Securities
Stock exchange is a market, where securities of corporate bodies, government and
semi-government bodies are bought and sold.
2. Deals in Second Hand Securities
It deals with shares, debentures bonds and such securities already issued by the
companies. In short, it deals with existing or second hand securities and hence it is called
secondary market.
3. Association of Persons
A stock exchange is an association of persons or body of individuals which may be
registered or unregistered.
4. Recognition from Central Government
Stock exchange is an organised market. It requires recognition from the Central
Government.
5. Working as per Rules
Buying and selling transactions in securities at the stock exchange are governed by
the rules and regulations of stock exchange as well as SEBI Guidelines. No deviation from
the rules and guidelines is allowed in any case.
6.Regulates Trade in Securities
Stock exchange does not buy or sell any securities on its own account. It merely
provides the necessary infrastructure and facilities for trade in securities to its members and
brokers who trade in securities.
3. Distinguish between Stock Exchange and Commodity Exchange.

SL.NO FEATURE STOCK EXCHANGE COMMODITY EXCHANGE
1 Meaning Stock Exchange (also A commodity exchange is an
called Stock Market or exchange where commodities are
Share Market) is one traded. Tradable commodities are
important constituent of ❖ Metals (e.g. gold,
capital market. Stock silver,copper)
Exchange is an organized ❖ Energy (e.g. crude oil,
market for the purchase natural gas)
and sale of industrial and ❖ Agricultural (e.g. rice,
financial security. wheat, cocoa)
2 Function Providing easy Offering hedging or price
marketability insurance services and liquidity to
securities.
3 object Object is facilitating Object is facilitating goods
capital formation and flow through risk reduction
making best
use of capital resources
4 Participants Investors and Speculators Producers, dealers, traders and a
body of speculators.
5 Articles Industrial securities such Only durable, graded and goods
Traded as stocks and bonds and having large volume of trade,
government securities. price uncertainty and
uncontrolled supply
6 Period of Cash, ready delivery and Instant cash dealings and a
dealings dealings for account for a settlement period of 2 or 3
fortnight months for Future Market
dealings

www.nammakalvi.com
Chapter 8: SECURITIES EXCHANGE BOARD OF INDIA (SEBI)

1. Write a short notes on SEBI.
Securities and exchange board of India( SEBI) is an apex body that maintains and
regulates our capital market. It was established in 1988 by Indian government but got the
statutory powers in 1992.
2. Write any two objectives of SEBI.
1. Regulation of Stock Exchanges
The first objective of SEBI is to regulate stock exchanges so that efficient services
may be provided to all the parties operating there.
2. Protection to the Investors
The capital market is meaningless in the absence of the investors. Therefore, it is
important to protect the interests of the investors.
3. Mention the headquarters of SEBI.
SEBI has its headquarters at the business district of BandraKurla Complex in Mumbai,
and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata,
Chennai and Ahmedabad respectively.
4. What are the various ID proofs?
PAN card, voter's ID, passport, driver's license, bank attestation, IT returns,
electricity bill, telephone bill, ID cards with applicant's photo issued by the central or state
government and its departments, statutory or regulatory authorities, etc..
1. What is meant by Dematerialization?
Dematerialization is the process by which physical share certificates of an investor
are taken back by the company/registrar and destroyed. Then an equivalent number of
securities in the electronic form are credited to the investors account with his Depository
Participant.
2. What are the documents required for a Demat account?
You need to submit proof of identity and address along with a passport size
photograph and the account opening form. Only photocopies of the documents are
required for submission, but originals are also required for verification.
3. Draw the organization structure of SEBI.
Director
Additional Director Technical Director

Additional /Joint
Directors/Joint (Administration) Directors(System)
Directors
Deputy Director Deputy
(Administration) Directors(System)
Deputy Directors
/Assitant Director
Assitant Director Assitant
(Administration) Director(System)
Section Officers Technical

(Administration) Assistants

www.nammakalvi.com

1. What are the functions of SEBI?
a) Safeguarding the interests of investors by means of adequate education and
guidance.
b) Regulating and controlling the business on stock markets.
c) Barring insider trading in securities.
d) Prohibiting deceptive and unfair methods used by financial intermediaries operating
in securities markets.
e) Registering and controlling the functioning of stock brokers, sub-brokers, share
transfer agents, bankers
f) SEBI regulates mergers and acquisitions as a way to protect the interest of investors.
g) Registering and controlling the functioning of collective investment schemes such as
mutual funds.
h) Promoting self-regulatory organization of intermediaries. It has extensive legal
powers.
2. Explain the powers of SEBI.

1. Powers Relating to Stock Exchanges &Intermediaries
SEBI has wide powers regarding the stock exchanges and intermediaries dealing in
securities. It can ask information from the stock exchanges and intermediaries regarding
their business transactions for inspection or scrutiny and other purpose.
2.Power to Impose Monetary Penalties
SEBI has been empowered to impose monetary penalties on capital market
intermediaries and other participants for a range of violations. It can even impose
suspension of their registration for a short period.
3. Power to Initiate Actions in FunctionsAssigned
SEBI has a power to initiate actions in regard to functions assigned. For example, it
can issue guidelines to different intermediaries or can introduce specific rules for the
protection of interests of investors.
4.Power to Regulate Insider Trading
SEBI has power to regulate insider trading or can regulate the functions of merchant
bankers.
5. Power to Regulate Business of Stock Exchanges
SEBI is also empowered to regulate the business of stock exchanges, intermediaries
associated with the securities market as well as mutual funds, fraudulent and unfair trade
practices relating to securities and regulation of acquisition of shares and takeovers of
companies.
**************************************************************************
Chapter 9: FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT

1. What is Human Resource Management ?
Human Resource Management is a function of management concerned with hiring,
motivating and maintaining people in an organisation. It focuses on people in an
organisation.
2. State two features of HRM.

i. Universally relevant :

www.nammakalvi.com
Human Resource Management has universal relevance. The approach and style
varies depending the nature of organisation structure and is applicable at all levels.
ii. Goal oriented :
The accomplishment of organisational goals is made possible through best utilisation
of human resource in an organisation.
3. Mention two characteristics of Human Resource.

✓ Human resource is the only factor of production that lives
✓ Human resource created all other resources
✓ Human resource exhibits innovation and creativity
4. What are the managerial functions of HRM (Explain shortly)
Managerial function - Planning, Organising, Directing, Controlling.

1. Define the term Human Resource Management.
E.F.L.Brech HRM as that part of management process which is primarily concerned with the
human constituents of an organisation.
2. What are the characteristics of Human resources ?
i. Human resource is the only factor of production that lives
ii. Human resource created all other resources
iii. It is only the labour of employees that is hired and not the employee himself
iv. Human resource exhibits innovation and creativity
v. Human resource alone can think, act, analyse and interpret
3. What is the significance of Human resource?
i. It is only through human resource all other resources are effectively used
ii. The sustainable growth of an organisation depends on the important resource
human resource
iii. Industrial relations depend on human resource
iv. Human relations is possible only through human resource
v. Human resource manages all other factors of production

1. Explain the characteristics of Human Resource.
➢ Human resource is the only factor of production that lives
➢ Human resource created all other resources
➢ It is only the labour of employees that is hired and not the employee himself
➢ Human resource exhibits innovation and creativity
➢ Human resource alone can think, act, analyse and interpret
➢ Human resources are emotional beings
➢ Human resources can be motivated either financially or non financially
➢ The behaviour of human resources are unpredictable
➢ Over years human resources gains value and appreciates
➢ Human resources are movable
➢ Human resource can work as a team
2. Describe the significance of Human Resource Management.

i. To identify manpower needs :
Determination of manpower needs in an organisation is very important as it is a
form of investment. The number of men required are to be identified accurately to optimise
the cost.
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 to make the change effective.
www.nammakalvi.com
iii. To ensure the correct requirement of manpower:

At any time the organisation should not suffer from shortage or surplus manpower
which is made possible through human resource management.
iv. To select right man for right job:
Human resource management ensures the right talent available for the right job, so
that no employee is either under qualified or over qualified.
v. To update the skill and knowledge:
Managing human resource plays a significant role in the process of employee skill
and knowledge enhancement to enable the employees to remain up to date through
training and development programmes.
vi. To appraise the performance of employees:
Periodical appraisal of performance of employees through human resource
management activities boosts up good performers and motivates slow performers. It helps
the workforce to identify their level of performance.
3. Discuss the Operative functions HRM.

i. Procurement :
Acquisition deals with job analysis, human resource planning, recruitment, selection,
placement, transfer and promotion.
ii. Development :
Development includes performance appraisal, training, executive development,
career planning and development, organisational development
iii. Compensation :
It deals with job evaluation, wage and salary administration, incentives, bonus, fringe
benefits and social security schemes
iv. Retention :
This is made possible through health and safety, welfare, social security, job
satisfaction and quality of work life
v. Integration :
It is concerned with the those activities that aim to bring about reconciliation
between personal interest and organisational interest
vi. Maintenance : This encourages employees to work with job satisfaction, reducing labour
turnover, accounting for human resource and carrying out audit and research
Chapter 10: RECRUITMENT METHODS

1. Give the meaning of Recruitment.
Recruitment is the process of finding suitable candidates for the various posts in an
organisation. It is a process of attracting potential people to apply for a job in an
organisation.
2. What is promotion?
It’s based on seniority and merits of the employees they are given opportunity to
move up in the organisational hierarchy
3. Write any two internal source of recruitment.
1. Transfer-transfer of employee from one department with surplus staff to that of
another with deficit staff.
2. Upgrading-Performance appraisal helps in the process of moving employees from
a lower position to a higher position
4. What is meant by poaching?

www.nammakalvi.com
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.

1. What is meant by unsolicited applicants?
i.These are the applications of job seekers who voluntarily apply for the vacancies
not yet notified by the organisations.
ii.Its not a expensive method of recruitment.
3. What is meant by job portals?
✓ Using internet job portals organisations can screen for the prospective
candidates and fill up their vacancies
✓ It’s bridging the gap between the recruiters and the job seekers.
✓ Job Portals help to reach out to a wider audience.
✓ Job search portals make job searching time-efficient, easy and convenient.
4. State the steps in Recruitment process outsourcing
❖ Requirement understanding
❖ Advertise and source
❖ Screening
❖ Validation
❖ Profile submission
❖ Interview process and feedback
❖ Selection and follow up

1. Explain the Internal sources of recruitment.
1. Transfer-transfer of employee from one department with surplus staff to that of
another with deficit staff.
2. Upgrading-Performance appraisal helps in the process of moving employees from
a lower position to a higher position
3. Promotion-Based on seniority and merits of the employees they are given
opportunity to move up
4. Demotion-Movement of employee from a higher position to a lower position
because of poor performance
5. Recommendation by existing Employees-A family member, relative or friend of
an existing employee can be recruited and placed
6. Job rotation-One single employee managing to learn how to perform in more than
one job on rotation.
2.Explain the External Sources of Recruitment

i. Direct:
1. Advertisements- The employer can advertise in dailies, journals, magazines etc. about the
vacancies in the organisation
2. Unsolicited applicants- job seekers who voluntarily apply for the vacancies not yet
notified by the organisations.
3. Walk ins- Walk-in applicants with suitable qualification and requirement can be another
source of requirement.
4. Campus Recruitment- The organisations visit the educational institutions to identify and
recruit suitable candidates
ii. Indirect:
1. Employee referral- The existing employees of the organisation may recommend some of
their relatives
2. Government/ Public Employment Exchanges- These are exchanges established by
Government which facilitates recruitment throughout the country.
www.nammakalvi.com
3. Private Employment Agencies- These are similar to Public employment exchanges except
that the ownership is the hands of Private parties.
4. Employment Consultancies- These types of firms facilitate recruitment on behalf of client
companies at cost
3. What is the recent trends in Recruitment?

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.
Recruitment process outsourcing
❖ Requirement understanding
❖ Advertise and source
❖ Screening
❖ Validation
❖ Profile submission
❖ Interview process and feedback
❖ Selection and follow up
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.
Chapter 11: EMPLOYEE SELECTION PROCESS

1. What is selection?
❖ Selection is the process of choosing the most suitable person for the vacant position
in the organization.
❖ The main aim of selection process is to find out the suitable candidate for specific
job.
2. What is an interview?
❖ An interview is a purpose full exchange of ideas, the answering of questions and
communication between two or more persons.
❖ Face to face interaction between the interviewer and interviewee
3. What is intelligence test?
❖ Intelligence tests are one of the psychological tests, that is designed to measure a
variety of mental ability, individual capacity of a candidate.
❖ The main aim of these tests is to obtain an idea of the person’s intellectual potential.
4. What do you mean by placement?
❖ Placement is a process of assigning a specific job to each and every candidate
selected.
❖ The process of placing the right man on the right job is called ‘Placement’.
1. What is stress interview?
❖ This type of interview is conducted to test the temperament and emotional balance
of the candidate
❖ Interviewer deliberately creates stressful situation by directing the candidate to do
irrational and irritating activities.
❖ They assess the suitability of the candidate by observing the reaction and response
of the candidate to the stressful situations.
2. What is structured interview?
❖ 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.
❖ Ultimately interviewees are ranked on the basis of score earned by the candidate in
the interview.
www.nammakalvi.com
3. Name the types of selection test?
1. Ability Tests
✓ Aptitude Test
✓ Achievement Test
✓ Intelligence Test
✓ Judgment Test
2. Personality Tests
✓ Interest Test
✓ Personality Test
✓ Projective Test
✓ Attitude Test
4. What do you mean by achievement test?
❖ This test measures a candidate’s capacity to achieve in a particular field.
❖ This test measures a candidate’s level of skill in certain areas, accomplishment and
knowledge in a particular subject.
❖ The regular examination conducted in educational institution represents
achievement test. It is also called proficiency test.
Example : A driver may be asked to drive a vehicle to test his driving efficiency
III. Long answer questions:

1. Briefly explain the various types of tests.(Explain any 5)
A) Ability Test
A test designed to measure an individual’s cognitive function in a specific area, such
as variety of skills, mental aptitude, problem solving, knowledge of particular field,
reasoning ability, intelligence etc. This test is used to find the suitability of a candidate for a
given job role.
1. Aptitude test
Aptitude test is a test to measure suitability of the candidates for the post/role. It actually
measures whether the candidate possess a set of skills required to perform a given job. It
can be measured by the following ways:
i) Numerical Reasoning Test
✓ This test measures the candidate's ability to make correct decision from numerical
data.
ii) Verbal Reasoning Test
✓ It measures the candidate's ability to comprehend the written text and ability to
arrive at factual conclusion from the written text.
iii) Inductive Reasoning Test
✓ It’s a psychometric tests conducted in the selection process to measure the problem
solving abilities and ability to apply logical reasoning.
iv) Mechanical Reasoning Test
✓ This test measures the engineering student’s ability to apply engineering concepts in
actual practice.
v) Diagrammatic Reasoning Test
✓ This test measures the candidate’s ability to understand the shapes, abstract ideas
and ability to observe and extract values from illustrations and apply them to new
samples.
2. Achievement Test
This test measures a candidate’s capacity to achieve in a particular field. The regular
examination conducted in educational institution represents achievement test. It is also
called proficiency test.
Example,
a) A driver may be asked to drive a vehicle to test his driving efficiency
b) Teacher candidate may be asked to give a demonstration
3. Intelligence Tests
www.nammakalvi.com
Intelligence tests are one of the psychological tests, that is designed to measure a
variety of mental ability, individual capacity of a candidate. The main aim of these tests is to
obtain an idea of the person’s intellectual potential.
4. Judgment Test
This test is conducted to test the presence of mind and reasoning capacity of the
candidates
B. Personality test
Personality test refers to the test conducted to find out the non-intellectual traits of
a candidate namely temperament, emotional response, capability and stability. There is no
right or wrong answer in the test. It comprises of following tests.
1. Interest Test
2. Personality Inventory Test
3. Projective Test / Thematic Appreciation Test
4. Attitude Test
2. Explain the important methods of interview.(Any 5)

i) Preliminary Interview
✓ This interview is conducted to know the general suitability of the candidates who have
applied for the job.
✓ Team of experts conducts their interview primarily to eliminate those who are
unqualified and unfit candidates.
ii) Structure/Guided/Planned Interview
✓ 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.
✓ Ultimately interviewees are ranked on the basis of score earned by the candidate in
the interview.
iii) Unstructured Interview
✓ There is no pre-prepared question. Interviewers determine the suitability of the
candidate based on their response to the random questions raised in the interview.
iv) In depth Interview
✓ Interview helps the interviewers to learn about the candidate’s expertise and practical
exposure with respect to his/her area of specialization.
v) Stress Interview
✓ This type of interview is conducted to test the temperament and emotional balance
of the candidate
✓ Interviewer deliberately creates stressful situation by directing the candidate to do
irrational and irritating activities.
✓ They assess the suitability of the candidate by observing the reaction and response
of the candidate to the stressful situations.
vi) Telephone Interview
Where the candidates live far away from organization and find it difficult to attend
preliminary interview for various reasons, telephone interview is conducted by some
organization to eliminate unfit and unsuitable candidate at the preliminary stage itself.
3. Differentiate Recruitment and Selection.
Basis of Recruitment Selection
SL.NO
Comparison
Recruitment is an activity of Selection refers to the process
searching candidates and of selecting the suitable
1 Meaning
encouraging them to apply candidates and offering them
for it job.
Approach under Approach under selection is
2 Approach
recruitment is positive one. negative one
www.nammakalvi.com
Inviting large number of Picking up the most suitable
3 Objective candidates to apply for the candidates and eliminating
vacant post the rest
4 Sequence First Second
5 Method It is an economical method It is an expensive method
Recruitment process is very Selection process is very
6 Process
simple complex and complicated
Chapter 12: EMPLOYEE TRAINING METHOD

1. What is meant by training?
❖ Training is the act of increasing / enhancing the new skill of problem solving activity
and technical knowledge of an employee for doing the jobs them self. Training
enables the employees to guide their behaviour.
2. What is Mentoring training method?
❖ Mentoring is the process of sharing knowledge and experience of an employee.
❖ Mentoring is always done by senior person, it is also one-to-one interaction ,like
coaching.
❖ The focus in this training is on the development of attitude of trainees.
3. What is Role play?
❖ Under this method trainees are explained the situation and assigned roles.
❖ They have to act out the roles assigned to them without any rehearsal.
❖ There are no pre-prepared dialogues.
❖ Thus they have to assume role and play the role without any preparation.
4. State e-learning method?
❖ E learning is also often referred to us online learning or web based training.
❖ E learning training courses can save money to an organizations as they no longer
have to pay forcostly seminar to improve employees skills.
❖ Under this type of web based training is anywhere and any time information can
pass over the internet.
1. What is vestibule training?
❖ Vestibule training is training of employees in an environment similar to actual work
environment artificially created for training purpose.
❖ This type of training is given to avoid any damage or loss to machinery in the actual
place by trainees and avoid disturbing the normal workflow in the actual workplace.
❖ It is given to Drivers, Pilots, Space Scientists etc.,
2. What do you mean by 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.
❖ It is based on the principle of “Learning by Doing and Learning While Earning”.
❖ On the job training is suitable for imparting skills that can be learnt in a relatively
short period of time.
3. Write down various steps in a training programme.
Whom to Train?
Who is the Trainee?
Who are Trainers?
What Method will be used for Training?
What should be Level the Training?

www.nammakalvi.com
Where to Conduct the Training Programme?
4. Write short note on trainer and trainee.

Trainer:
❖ Trainer is a person who teaches skills to employee and prepare them for a job
activity.
❖ Trainers may be supervisor, coworkers, HR staffs,etc.,
Trainee:
❖ A person who is learning and practising the skills of particular job is called trainee.
❖ Trainees should be selected on the basis of self-interest and recommendation by the
supervisor or by the human resource department itself.

1. Discuss various types of training. (Any 5)
(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.
➢ The superior should point out mistakes committed by the new worker and also advise
the remedial measures, to trainees.
ii) Mentoring method:
➢ Mentoring is the process of sharing knowledge and experience of an employee.
➢ Mentoring is always done by senior person; it is also one-to-one interaction,like
coaching.
➢ The focus in this training is on the development of attitude of trainees.
iii) Job Rotation Method:
➢ Under this method a trainee is periodically shifted from one work to another work
and from one department / division to another department / division for a particular
period of time.
➢ The main aim of job rotation is to expose the employee to various inter related jobs
(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.
➢ Trainer may be generally drawn from Colleges, Universities, Consultancies, etc.,
➢ They impart training effectively by their oratorical skill, knowledge and practical
knowledge using audio visual tools.
ii)Group Discussion Method:
➢ Participants are divided into various groups; they were provided a particular issue for
deliberation.
➢ Each group has to prepare solution after deep discussion with their group members.
➢ The group leader has to present the solution to the audience, which will be discussed
or deliberated by other groups.
iii)Case Study Method
➢ Trainees are described a situations which stimulate their interest to find solution.

www.nammakalvi.com
➢ They have to use their theoretical knowledge and practical knowledge to find
solution to the problem presented. There is no single solution to the problem, It may
vary depending upon view points of trainees.
2. What are the differences between on the job training and off the job training?
SL.NO BASIS On the Job Training Off the Job Training
1 Meaning The employee learns Off the Job training involves the
the job in the actual training of employees outside
work environment. the actual work location
2 Cost It is cheapest to carry It requires expenses like
out separate training rooms,
specialist, resources like
projectors.
3 Location At the work place Away from the work place
4 Approach Practical approach Theoretical approach
5 Principle Learning by performing Learning by acquiring
knowledge
6 Carried out It is carried out by the Training which is provided by
experienced employee the experts.
7 Methods Coaching, job rotation, Role –plays , seminar, lectures,
apprenticeship, case studies,etc
mentoring, etc
3. Explain the benefits of training.

(i) Benefits to the Organization
➢ It improves the skill of employees and enhances productivity and profitability
➢ It reduces wastages of materials and idle time
➢ It exposes employees to latest trends.
➢ It minimizes the time for supervision.
➢ It reduces labour turnover of employee
➢ It improves union and management relation.
(ii) Benefits to the Employees
➢ It adds to the knowledge skill and competency of employee
➢ It enables him to gain promotion or achieve career advancement in quick time.
➢ It improves the employees productivity
➢ It enhances the morale of the employee.
➢ Employees get higher earnings through incentives and rewards.
(iii)Benefits of Customer
➢ Customers get better quality of product/ service.
➢ Customers get innovative products or value added or feature rich products.
Chapter 13: CONCEPT OF MARKETING AND MARKETER

1. What is Market?
✓ It is a medium or place to interact and exchange goods and services.
✓ Word market is derived from the latin word Marcatus which means trade,commerce
merchandise a place where business is transacted.
✓ In simple words, the meeting place of buyers and sellers in an area is called Market.
2. Define Marketer.

www.nammakalvi.com
“A person whose duties include the identification of the goods and services desired
by a set of consumers, as well as the marketing of those goods and services on behalf of a
company”.
- Business Dictionary
3. What is mean by Regulated Market?
✓ These are types of markets which are organised, controlled and regulated by
statutory measures.
Example: Stock Exchanges of Mumbai, Chennai, Kolkata etc.
4. What is meant by spot market?

In such markets, goods are exchanged and the physical delivery of goods takes place
immediately.
5. What is meant by Commodity Market?
✓ A commodity market is a place where produced goods or consumption goods are
bought and sold.
Commodity markets are sub-divided into:
i. Produce Exchange Market
ii. Manufactured Goods Market
iii. Bullion Market
1. What can be marketed in the Market?
The dynamic items that can be marketed are listed below:
1.Goods 2.Services 3.Experiences 4.Events 5.Persons
6.Places 7.Properties 8.Organization 9.Information 10.Ideas
2. Mention any three Role of Marketer?

i. Instigator
As an instigator, marketer keenly watches the developments taking place in the
market and identifies marketing opportunities emerging in the ever changing market.
ii. Innovator
Marketer seeks to distinguish his products/services by adding additional featuresto
the existing product.
iii. Implementer
Marketer plays a role of implementer when he/she actually converts marketing
opportunities into marketable product with the help of several functional teams put in place
in the organisation.
3. Explain the types of market on the basis of time.

i. Very Short Period Market:
➢ Markets which deal in perishable goods like, fruits, milk, vegetables etc.,
➢ There is no change in the supply of goods. Price is determined on the basis of
demand.
ii. Short Period Market:
➢ In certain goods, supply is adjusted to meet the demand. The demand is greater
than supply.
iii. Long Period Market:
➢ This type of market deals in durable goods, where the goods and services are dealt
for longer period usages.

1. How the market can be classified? (Any 5)
I. On the Basis of Geographical Area
a. Family Market:

www.nammakalvi.com
When exchanges of goods or services are confined within a family or close members
of the family, it’s called as family market.
b. Local Market:
Participation of both the buyers and sellers belonging to a local area or areas, may
be a town or village, is called as local market. The demands are limited in this type of
market. For example, perishable goods like fruits, fish, vegetables etc.
c. National Market:
Certain type of commodities has demand throughout the country. Hence it is called as
a national market.
d. International Market or World Market:
World or international market is one where the buyers and sellers of goods are from
different countries i.e., involvement of buyers and sellers beyond the boundaries of a
nation.
II. On the Basis of Commodities/Goods
a. Commodity Market:
A commodity market is a place where produced goods or consumption goods are
bought and sold. Commodity markets are sub-divided into:
i. Produce Exchange Market
ii. Manufactured Goods Market
iii. Bullion Market
b. Capital Markets:
New or going concerns need finance at every stage. Their financial needs are met by
capital markets. They are of three types:
i. Money Market
ii. Foreign Exchange Market
iii. The Stock Market
III. On the Basis of Economics
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.etc..
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.Etc
IV. On the Basis of Transaction
i. Spot Market:
In such markets, goods are exchanged and the physical delivery of goods takes place
immediately.
ii. Future Market:
In such markets, contracts are made over the price for future delivery. The dealing and
settlement take place on different dates.
V. On the Basis of Regulation
i. Regulated Market:
These are types of markets which are organised, controlled and regulated by statutory
measures.
ii. Unregulated Market:
A market which is not regulated by statutory measures is called unregulated market.
This is a free market, Demand and supply determine the price of goods.
2. How the market can be classified on the basis of Economics?

www.nammakalvi.com
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 toanother without restrictions.
v. The goods are identical or homogenous.
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.
Chapter 14: MARKETING AND MARKETING MIX

1. What is marketing?
Marketing is the performance of buying activities that facilitate to more flow of
goods and services from producer to ultimate user.
Marketing is much wider than selling
1. Define Marketing Mix.
“Marketing mix is a pack of four sets of variables namely product variable, price variable,
promotion variable, and place variable”.
- Mr. Jerome McCarthy
3. What is meant by Grading?
Grading means classification of standardized products in to certain well defined
classes.

1. What are the objectives of marketing?
✓ To develop the marketing field.
✓ To develop guiding policies and their implementation for a good result.
✓ To suggest solutions by studying the problems relating to marketing.
✓ To find sources for further information concerning the market problems.
✓ To take appropriate actions in the course of action.
2. What are the concept of marketing?
❖ Make What You Can Sell, But Do Not Try To Sell What You Can Make
❖ First Create A Customer, Then Create Products
❖ Love your customers and not the products
❖ Customer is supreme or king
❖ Customer’s preferences shape your decisions
3. What do you mean by marketing mix? Describe any two elements.
✓ Marketing mix means a marketing programme that is offered by a firm to its target
consumers to earn profits through satisfaction of their wants.
✓ Such a marketing programme is a mixture of four ingredients, namely Product mix,
Price mix, Place (Distribution)mix and Promotion mix.
Two elements:
i. Product
Product is the main element of marketing. Without a product, there can be no
marketing.
ii. Price
Price is the value of a product expressed in monetary terms. It is the amount charged
for the product.
www.nammakalvi.com

1. Discuss about the Evolution of marketing.
i. Barter System:
The goods are exchanged against goods, without any other medium of exchange, like
money.
ii. Production Orientation:

This was a stage where producers, instead of being concerned with the consumer
preferences, concentrated on the mass production of goods for the purpose of profit.
iii. Sales Orientation:
The stage witnessed major changes in all the spheres of economic life. The selling
became the dominant factor, without any efforts for the satisfaction of the consumer needs.
iv. Marketing Orientation:
✓ Customers’ importance was realised but only as a means of disposing of goods
produced.
✓ Competition became more stiff. Aggressive advertising, personal selling, large
scale sales promotion etc. are used as tools to boost sales.
v. Consumer Orientation:
Under this stage only such products are brought forward to the markets which are
capable of satisfying the tastes, preferences and expectations of the consumer satisfaction.
vi. Management Orientation:
The marketing function assumes a managerial role to co-ordinate all interactions of
business activities with the objective of planning, promotingand distributing want-satisfying
products and services to the present and potential customers
2. Narrate the Elements of Marketing mix.

i. Product
✓ Product is the main element of marketing.
✓ Without a product, there can be no marketing.
✓ “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’’ -
Philip Kotler.
ii. Price
✓ Price is the value of a product expressed in monetary terms.
✓ It is the amount charged for the product.
✓ Price is the amount of money charged for a product or service, or the sum of
the values that consumers exchange for the benefits of having or using the
product or service”. Philip Kotler
iii. Place (Physical Distribution)
✓ The fourth element of product mix, namely place or physical distribution
facilitates 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
CHAPTER 15: RECENT TRENDS IN MARKETING

I.Very Short Answer Questions:
www.nammakalvi.com
1.What is service marketing?
A service is any activity or benefit that one party can offer to another which is
essentially intangible and which does not result in the ownership of anything like business
and professional services insurance, legal service, medical service etc.
2.What is green marketing?
Green marketing involves developing and promoting products and services which
satisfy customers’ wants and needs for quality, performance, affordable pricing and
convenience – all without causing a detrimental impact on the environment.
3.What is Ambush Marketing?

Ambush marketing technique is a new technique whereby a particular advertiser
seeks to connect his product to the event in the mind of potential customer without paying
sponsoring expenses to the event. In other words it is a method of building brands in covert
ways.
4.What is Social marketing?
➢ Social marketing is a new marketing tool. It is the systematic application of
marketing philosophy and techniques to achieve specific behavioural goals which
ensure social good.
➢ Example, Asking people not to smoke in public areas
II.Short Answer Questions:

1. What are the advantages of E-Marketing?
1. E - Marketing provides 24 hours and 7 days “24/7” service to its users. So
consumer can shop or order the product anytime from anywhere.
2. Direct contact of end consumer by the manufacturers cuts down the substantially
intermediation cost. Thus products bought through e-marketing become cheaper.
3. Customer can buy whatever they want/ need just by browsing the various sites.
2.Discuss the objectives E-Marketing
The following are the objectives of E-Marketing
1. Expansion of market share
2. Reduction of distribution and promotional expenses.
3. Achieving higher brand awareness.
4. Strengthening database.
3.Explain in detail about Niche marketing.
➢ Niche marketing denotes a strategy of directing all marketing efforts towards one
well defined segment of the population.
➢ A niche market does not mean a small market, but it involves specific target
audience with a specialized offering.
➢ The sports channels like STAR Sports, ESPN, STAR Cricket and Fox Sports target the
niche market of sports enthusiasts.
III.Long Answer Questions:

1.Explain in detail how traditional marketing differ from E-marketing
E-Marketing Traditional Marketing
It is very economical and faster way to It is very expensive and takes more time to
promote the products. promote product.
It is quiet easier for promoting product It is very expensive and time consuming to
globally in the short time. promote product/ service under traditional
marketing.
E-Business enterprises can expand their It needs more man power.
operation with minimum manpower.

www.nammakalvi.com
In this marketing product can be sold or That is not possible in traditional
bought 24 x 7, round the year with marketing.
minimum manpower
2. Discuss any two new methods of marketing .

1.Viral marketing :
Viral Marketing is that which is able to generate interest and the potential sale of a
brand or product through messages that spread like a virus, in other words, quickly, and
from person to person. The idea is for it to be the users themselves that choose to share the
content.
Advantages:
Low cost:
What characterizes viral campaigns is that the users do a significant part of the work
for us, which drastically cuts down the costs of dispersion: it becomes unnecessary to buy
advertising or space on the media.
Potential of great reach:
A viral video on the Internet has the ability to reach a huge international audience
without us having to invest money or make any extra effort.
It is not invasive:
In viral marketing, the decision to participate and share always comes from the user,
and so it never comes across as invasive.
It helps build up your brand:
we are creating content so incredible that users themselves decide to share it and,
hence create a personal connection with your brand. It is without a doubt an extremely
powerful tool when it comes to branding and awareness.
2.Niche Marketing:
Niche marketing denotes a strategy of directing all marketing efforts towards one
well defined segment of the population.A niche market does not mean a small market, but it
involves specific target audience with a specialized offering.
Advantages:
Less competition :
Unlike in generalized marketing where market competition is still, niche marketing
has quite less competition for the viable customers purchasing the products.
Brand loyalty :
Niche marketing makes it possible for businesses to build their brand loyalty. This
marketing approach lets you provide customers with products and services they need and
desire.
Best for giving marketing insight:
Once you begin to concentrate fully on niche marketing, you will learn about new
products, innovations and ideas about the market
Wide Reach:
With this approach, you will be able to reach a larger percentage of people who are
more likely to use your services or purchase your products.
CHAPTER 16: CONSUMERISM

1.Who is a consumer?
A consumer is one who consumes goods manufactured and sold by others or created
(air, water, natural resources) by nature and sold by others. One, who avails services such as
banking, transport, insurance, etc., is also called a consumer.
2.Give four examples of adulteration.
➢ Mixing of stones with grains
www.nammakalvi.com
➢ Mixing of coconut oil with palmolein
➢ Papayas seed is added to black pepper
➢ Coffee powder is adulterated with tamarind seed
3. What is Caveat Emptor?
➢ ‘Caveat emptor’ is a Latin term that means "let the buyer beware."
➢ the principle of caveat emptor serves as a warning to the buyers that they have no
recourse with the seller if the product does not meet their expectations
4. What is Caveat Venditor?
➢ The principle of caveat venditor, which means "let the seller beware," by which
goods are covered by an implied warranty of merchantability.
➢ Sellers assume much more responsibility for the integrity of their goods in the
present day.
5. Write a short notes on Consumer ProtectionAct, 1986.
➢ The Act is referred in short as ‘COPRA’.
➢ The Consumer Protection Act 1986 seeks to protect and promote the interests of
consumers.
➢ The act provides safeguards to consumers against defective goods, deficient
services, unfair trade practices, and other forms of their exploitation.
1. What are the important legislations related to consumerism in India?
✓ The Indian Contract Act, 1982 was passedto bind the people on the promise madein
the contract.
✓ The Agricultural Products Grading andMarketing Act, 1937 ensures the supply
ofagricultural commodities at high quality.
✓ The Trademark Act, 1999 prevents theuse of fraudulent marks on the product.
✓ The Competition Act, 2002 protects theconsumers against unhealthy competition.
2. What is meant by artificial scarcity?
✓ There are certain situations where the shop-keepers put up the board ‘No Stock” in
front of their shops, even though there is plenty of stock in the store.
✓ In such situations consumers who are desperate to buy such goods have to pay high
price to buy those goods and thus earning more profit unconscientiously.
✓ Even in Cinema houses, board may hang in the main entrance ‘House Full’ while
cinema tickets will be freely available at a higher price in the black market.
3.Write the importance of consumerism.
✓ Awakening and uniting consumers.
✓ Discouraging unfair trade practices.
✓ Protecting against exploitation.
✓ Awakening the government.
✓ Effective implementation of consumerprotection laws.
✓ Providing complete and latest information.

1. How consumers are exploited?
1.Selling at Higher Price
The price charged by the seller for a product service may not be matching with the
quality but at times it is more than the fair price.
2.Adulteration
It refers to mixing or substituting undesirable material in food. This causes heavy loss
to the consumers. This will lead to monitory loss and spoil the health.
3.Duplicate or Spurious goods
Duplicates are available in plenty in the market for every original and genuine parts
or components like automobile spare parts, blades, pens, watches, radios, medicines,
jewellery, clothes and even for currency notes.
4.Sub-standard
www.nammakalvi.com
On opening a packet or sealed container one may find the content to be of poor
quality.a consumer finds it difficult to exchange the defective one for good one.Some seller
give bills which contain a stipulation that goods sold cannot be taken back.
5. Warranty and Services
Warranty service may not be extended to many parts/components of the product
sold. Thus consumers may be charged exorbitant charges in the name of repair costs.
6.False Advertisements:Advertisements convey very little information about the
product. Many times it makes false representation about the quality, price, grade,
composition, utility guaranteed, performance etc.
2. Explain the role of business in consumer protection.

1.Avoidance of Price Hike
Business enterprises should stop from hiking the price in the context of critical shortage of
goods /articles.
2.Avoidance of Hoarding
Business enterprises should allow the business to flow normally. It should not indulge in
hoarding and black marketing to earn maximum possible profit in the short term at the cost
of consumers.
3.Guarantees for Good Quality
Business enterprises should not give false warranty for the products. It should ensure supply
of good quality.
4.Product Information
Business enterprises should disclose correct, complete and accurate information about the
product viz. size, quality, quantity, substances, use, side effects, precautions, weight,
exchange, mode of application etc.
5.Truth in advertising
Business enterprises should not convey false, untrue, bogus information relating to the
product through the advertisements in media and thus mislead the consumers.
6.Consumer Grievances
Where the business enterprises have customer care department, it should handle the
grievances’ of consumer immediately or within a definite time frame.
3. What are the objectives of Consumer Protection Act, 1986?

✓ Protection of consumers against marketing of goods which are hazardous and
dangerous to life and property of consumers.
✓ Providing correct and complete information about quality, quantity,purity, price and
standard of goods purchased by consumers.
✓ Protecting consumers from unfair trade practices of traders.
✓ Empowering consumers to seek redressal against exploitation
✓ Educating the consumer of their rights and duties
✓ Ensuring better standard of living for consumers by providing them with quality
products at fair price.
✓ Putting in place right mechanism like councils and other authorities to enable the
consumers to enforce their rights.
CHAPTER 17: RIGHTS,DUTIES&RESPONSIBILITIES OF CONSUMER

1. Write short notes on: “Right to be informed.”
❖ Consumers should be given all the relevant facts about the product so that they can
take intelligent decisions on purchasing the product.
❖ The package should contain the full details about the name of the product,
composition, dosage, date of manufacturing, date of expiry, batch number,
warnings, antidote etc.
www.nammakalvi.com
❖ Manufacturer and the dealer are expected to disclose all the material facts relevant
and relating to the product.
2. What are the rights of consumer according to John F. Kennedy?
The former president of U.S.A Mr. John F. Kennedy defined the basic consumer
rights as “The Right of Safety, the Right to be informed, the Right to choose and the Right to
be heard.”
3. Which is the supreme objective of business?
❖ The modern marketing concept recognises that the consumer is the pivotal point
around which the business moves.
❖ Satisfaction of consumer needs/requirements is stated to be supreme objective of a
business.

1. What do you understand by “Right to redressal”.
❖ The complaints and protests are not just to be heard: but the aggrieved party is to be
granted compensation within a reasonable time period.
❖ There should be prompt settlement of complaints and claims lodged by the
aggrieved customers.
❖ This will boost consumer confidence and help render justice to buyers.
❖ There should be fair settlement of deserving claims in a definite timeframe.
2. What do you understand about” Right to protection of health and safety”.
❖ There may be few products that are more likely to cause physical danger to
consumers’ health, lives and property.
❖ They may contain potentially harmful substances which are dangerous from the
consumer welfare point of view.The health hazards which are likely to arise have to
be eradicated or reduced altogether.
❖ The consumers are entitled to protection of their health and safety from the goods
and services they buy. They should not be supplied goods or services which are
hazardous to their health and safety.

1. Explain the duties of consumers.
Buying Quality Products at Reasonable Price:
❖ It is the responsibility of a consumer to purchase a product after gaining a thorough
knowledge of its price, quality and other terms and conditions.
❖ The consumer should enquire about the price from certain shops and if possible
from government stores to get an idea of its price.
Ensure the Weights and Measurement before Making Purchases:
❖ The sellers often cheat consumer by using unfair weights and measures.
❖ The consumer should ensure that he/she is getting the product of exact weight and
measure. Consumer should check the weights and balance of the product.
Reading the Label Carefully:
❖ It is the duty of the consumer to thoroughly read the label of the product. It should
have correct, complete and true information about the product.
Beware of False and Attractive Advertisements:
❖ Often the products are not as attractive as shown in the advertisement by the
sellers. Hence, it is the prime duty of consumer not to get misled by such fraudulent
advertisements.
Ensuring the Receipt of Cash Bill:
❖ It is a legitimate duty of consumers to collect cash receipt and warranty card
supplied along with bills. This will help them in seeking redressal for their grievances.
Buying from Reputed Shops:
❖ It is advisable for the consumer to make purchase from the reputed shops or
government shops like super bazaar, cooperative stores, and the like.
www.nammakalvi.com
2. What are the responsibilities of consumers? (Any 7)

1. The consumer must pay the price of the goods according to the terms and conditions of
the sales contract.
2. The consumer has got a responsibility to apply to the seller for the delivery of the goods.
He/she has to take delivery of the goods in time.
3. The consumer has to bear any loss, which may arise to the seller when the consumer
delays taking delivery of the goods as per the terms of contract.
4. The consumer is bound to pay any interest and special damages caused to the seller
incase if there is delay in the payment.
5. The consumer has to assiduously follow and keenly observe the instructions and
precautions while using the products.
6. The consumer has the responsibility to express unambiguously to the seller of his
requirements and expectations from the product.
7. The consumer must seek to collect complete information about the quality, quantity,price
etc of the product before purchasing it.
8. The consumer must get cash receipt as a proof of goods purchased from the seller.
9. The consumer must file a complaint with the seller concerned about defects or
shortcomings noticed in their products and services.
10. The consumer should never compromise on the quality of goods. The consumers must
watch for ISI, Agmark, FPO, the standard quality certification marks and the like in the label.
CHAPTER 18: GRIEVANCE REDRESSAL MECHANISM

1. What do you meant by Redressal Mechanism?
➢ Grievance Redressal is a management and governance related process used
commonly in India.
➢ While the term "Grievance Redressal" primarily covers the receipt and processing of
complaints from citizens and consumers
➢ A wider definition includes actions taken on any issue raised by them to avail services
more effectively.
2. What do you know about National Commission?
➢ National Commission 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.
➢ It will entertain a complaint valued more than 1 crore.
3. State the meaning of the term State Commission.
➢ A consumer has to be protected against defects, deficiencies and unfair and restrictive
trade practices.
➢ The State Consumer Protection Council is also called State Commission.
➢ The State Commission is to be appointed by the State Government function as state
level.
➢ It will entertain a complaint valued more than Rs 20 lakhs and below 1 crore
4. What is a term District Forum?
➢ As per the Consumer Protection Act of 1986 the establishment of a District Forum by
the State Government in each district is necessary today to protect the interest of
aggrieved consumers in that district.
➢ The State Government can establish more than one District Forum in a district if it
deems fit to do so.

www.nammakalvi.com
➢ It will entertain a complaint valued less than Rs 20 lakhs

1. Who are the members of the National Commission?
1. The National Commission should have five members.
2. One should be from judiciary.
3. Four other members of ability, knowledge and experience from any other fields.
4. It should include a woman.
2. Who are the members of the State Commission?
1. A person who is or has been a Judge of a High Court appointed by the State
Government as its President.
2. Two other members who shall be persons of ability, integrity and standing and have
adequate knowledge or experience of or have shown capacity in dealing with problems
relating to economics, law, commerce, industry, public affairs or administration of them, one
shall be a woman.
3. Write a note on the Voluntary Consumer Organisation .
Consumer is a broad label for any individuals or households that use goods and
services produced within the economy. Voluntary consumer organisations refer to the
organisation formed voluntarily by the consumers to protect their rights and interests
1. Explain the overall performance of the National Commission?
➢ National Commission 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.
Members:
1. The National Commission should have five members.
2. One should be from judiciary.
3. Four other members of ability, knowledge and experience from any other fields.
4. It should include a woman.
Jurisdiction
Section 21 of The Consumer Protection Act, 1986 describes, the National Commission shall
have jurisdiction
1. To entertain a complaint valued more than 1 Crore.
2. Revised the orders of State Commissions.
3. To call for the records and pass appropriate orders from the State Commission and District
Forum.
✓ Generally over-seeing the functioning of the State Commissions and the District
Forums
✓ 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.
2. Explain the overall performance of State Commission.

➢ A consumer has to be protected against defects, deficiencies and unfair and restrictive
trade practices.
➢ The State Consumer Protection Council is also called State Commission.
➢ The State Commission is to be appointed by the State Government function as state
level
Members
Each State Commission shall consist of the following members.

www.nammakalvi.com
1. A person who is or has been a Judge of a High Court appointed by the State
Government as its President.
2. Two other members who shall be persons of ability, integrity and standing and have
adequate knowledge or experience of or have shown capacity in dealing with problems
relating to economics, law, commerce, industry, public affairs or administration of them, one
shall be a woman.
Jurisdiction
➢ The State Commission can entertain complaints within the territory of entire state and
where the value of the goods or services and the compensation, if any claimed exceed
Rs. 20 lakhs and below Rupees One Crore.
➢ The State Commission also has the jurisdiction to entertain appeals against the orders
of any District Forum within the State.
Powers:
The following are the powers of the State Commission.
1. The State Commission also has the power to call for the records and pass
appropriate orders in any consumer dispute which is pending before or has been decided by
any District Forum within the State.
2. To produce before and allow to be examined by an officer of any of these
agencies,such books of accounts, documents or commodities as may be required and to keep
such books, documents, etc., under his custody for the purposes of the Act.
❖ Any person aggrieved by an order of the State Commission may prefer an appeal to
the National Commission within 30 days from the date of such order.
CHAPTER 19: ENVIRONMENTAL FACTORS

1. What is internal environment?
❖ Internal environment refers to those factors within an organisation e.g Policies and
programmes, organisational structure, employees, financial and physical resources.
❖ These factors can be changed or altered and hence are known as controllable factors.
2. Give the meaning of corporate governance.
❖ Corporate governance is a set of rules and policies which governs a company.
❖ It provides a frame work for managing a company and achieving its objectives.
❖ It gives guidelines for internal control, performance measurement and corporate
disclosure.
3. What is GST?
❖ GST is the indirect tax levied on goods and services across the country.
❖ It is a comprehensive, multi-stage, destination-based tax that is levied on every value
addition.
❖ Types of taxes: CGST,SGST,IGST
4. Expand VUCA.
❖ VUCA – Volatility, Uncertainty, Complexity and Ambiguity,

1. What are the political environment factors?
❖ The framework for running a business is given by the political and legal environment.
❖ The success of a business lies in its ability to adapt and sustain to political and legal
changes.

www.nammakalvi.com
❖ The legislative, executive and judiciary are the three political institutions which directs
and influences a business
2. Write about any three internal environmental factors of business.
Vision and objectives:
❖ The vision and objectives of a business guides its operations and strategic decisions.
Management structure:
❖ The structure of management/board and their style of functioning, the level of
professionalism of management, and the composition of the board are the various
factors which affects the decision making.
Company image:
❖ The image of an organisation plays an important role in introducing new
products,expanding and entering new markets both domestic and international,
raising finance etc.
3. What do you know about Technological environment?
❖ The development in the IT and telecommunications has created a global market.
❖ Technology is widely used in conducting market research for understanding the
special needs of the customer.
❖ Digital and social media are used as a platform for advertising and promoting the
products/services.
III.Long Answer Questions:
1. Discuss the role of macro environment of business.
The success of a business is dependent on its ability to adapt to the macro environment,
since these are uncontrollable factors.
i) Economic environment:
The business isan integral part of the economic systemprevalent in a nation. It includes
✓ The nature of economy based on the stage of development.
✓ The nature of economic system Theeconomic systems can be classified asCapitalistic,
Socialistic and
Mixed economy.
✓ The economic policies of a nation Monetarypolicy, fiscal policy etc..
✓ The Economic indices like GDP, GNPnational income, et..
ii) Socio-Cultural environment:
✓ Business is a part of the society.Social environment refers to the sum total of factors
of the society in which the business is located.
✓ Social and cultural environment of society affects the business.
iii) Political and Legal environment:
✓ The framework for running a business is given by the political and legal environment.
✓ The success of a business lies in its ability to adapt and sustain to political and legal
changes.
iv) Geo-physical environment:
The natural,geographical and ecological factors have abearing on the business. These are as
follows;
✓ the availability of natural resources like minerals oil .etc
✓ the weather and climatic conditions
✓ Availability of natural harbours and port facilities for transporting goods etc..
v) Technological environment:
✓ The development in the IT and telecommunications has created a global market.

www.nammakalvi.com
✓ Technology is widely used in conducting market research for understanding the
special needs of the customer.
vi) Global environment:
✓ With the rapid growth of technology the physical boundaries are fast disappearing and
the new global market is emerging.
✓ The international environmental factors which affects a business
2. Explain the micro environmental factors of business.

This refers to those factors which are in the immediate environment of a business affecting
its performance. These include the following:
i) Suppliers:
✓ In any organisation the suppliers of raw materials and other inputs play a very vital
role.
✓ Organisations have realised the importance of nurturing and maintaining good
relationship with the suppliers.
ii) Customers:
✓ The aim of any business is to satisfy the needs of its customers. The customer is the
king business.
✓ Customer relationship management aims at creating and sustaining cordial relations
with customers.
iii) Competitors:
✓ All organisations face competition at all levels local, national and global.
✓ Competitors may be for the same product or for similar products.
✓ It is important for a business to understand its competitors and modify their business
strategies in the face of competition.
iv) Marketing Channel members:
✓ The marketing inter-mediaries serve as a connecting link between the business and its
customers.
✓ Market research agencies help the firm to understand the needs of the customers
v) Public:
✓ This refers to any group like media group, citizen action group and local public which
has an impact on the business.
✓ The public group has the ability to make or mar a business. Many companies had to
face closure due to actions by local public.
CHAPTER 20: LIBERALIZATION, PRIVATISATION, AND

GLOBALIZATION
1. State the branches of New Economic Policy.
There are three dimensions of New Economic Policy
➢ Liberalization, Privatisation, And Globalization
2. What is Privatisation?
Privatization is the incidence or process of transferring ownership of a business
enterprise, agency or public service from the government to the private sector.
3. Mention any two disadvantages of Liberalisation.
(a)Increase in unemployment
(b)Loss to domestic units
(c)Increased dependence on foreign nations
(d)Unbalanced development

www.nammakalvi.com
4. Give any two advantages of Globalisation.
(a)Increase in foreign collaboration
(b)Expansion of market
(c) Technological development
(d)Reduction in brain drain
1. What do you mean by Liberalisation?
➢ Liberalization refers to laws or rules being liberalized, or relaxed, by a government.
➢ Liberalization means relaxation of various government restrictions in the areas of
social and economic policies in order to make economies free to enter in the market
and establish their venture in the country.
➢ Its the result of New industrial policy which abolished the “Licence Raj”
2. State any three impacts on Globalisation.
(a) Corporations got a competitive advantage from lower operating costs, and access
to new raw materials and additional markets.
(b)Multinational corporations (MNCs) canmanufacture, buy and sell goods
worldwide.
(c)Globalisation has led to a boom inconsumer products market.
3. Write a short note on New Economic Policy.
✓ India agreed to the conditions of World Bank and IMF and announced New
Economic Policy (NEP) which consists of wide range of economic reforms.
✓ This new set of economic reforms is commonly known as the LPG or
Liberalisation, Privatisation and Globalisation model.
Liberalization refers to laws or rules being liberalized, or relaxed, by a government.

Privatisation means permitting the private sector to set up industries which were previously
reserved for the public sector.
Globalisation means the interaction and integration of the domestic economy with the rest
of the world with regard to foreign investment, trade, production and financial matters.

1. Explain the advantages and disadvantages of liberalisation.
Liberalization means relaxation of various government restrictions in the areas of social and
economic policies in order to make economies free to enter in the market and establish
their venture in the country
Advantages:
(a)Increase in foreign investment:
✓ If a country liberalises its trade, it will make the country more attractive for inward
investment.
(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. This would be
particularly a benefit for countries who are importers.
Disadvantages:
(a)Increase in unemployment:
www.nammakalvi.com
✓ 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.
(b)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.
(c)Increased dependence on foreign nations:
✓ Trade liberalisation means firms will face greater competition from abroad.
(d)Unbalanced development:
✓ Trade liberalisation may be damaging for developing economies,The trade
liberalisation often benefits developed countries rather than developing economies.
2. What are the Highlights of the LPG Policy?

Given below are the salient highlights of the Liberalisation, Privatisation and
Globalisation Policy in India:
(a) Introduction of new Foreign TradeAgreements
(b) Foreign Investment (FDI & FII)
(c) MRTP Act, 1969 (Amended)
(d) Deregulation
(e) Opportunities for overseas trade
(f) Steps to regulate inflation
(g) Tax reforms
(h) Abolition of License
• Globalization and liberalization are concepts closely related to one another, and both
globalization and liberalization refer to relaxing social and economic policies which
results in better integration with an economy and between nations.
• Globalization and liberalization both occur as a result of modernization.
• Globalization is the greater integration among countries and economies for trade,
economic, social and political benefits.
• Liberalization generally refers to removal of restrictions; usually government rules
and regulations imposed on social, economic, or political matters.
CHAPTER 21: THE SALE OF GOODS ACT 1930

1. What is a contract of sale of goods?
Contract of sale of goods is a contract whereby the seller transfers or agrees to
transfer the property (ownership) of the goods to the buyer for a price.
2. List down the essential elements of a contract of sale.
(1)Two Parties
(2)Transfer of Property
(3)Goods
(4)Price
(5) Includes both ‘Sale’ and ‘Agreement to Sell’
www.nammakalvi.com
3. What is meant by goods?
❖ The subject matter of contract of sale must be goods.
❖ The term ‘goods’ includes every kind of movable property, stocks and shares, growing
crops etc.
❖ Goodwill, trademarks, copy rights, patent rights etc., are all also regarded as goods.
4. What is a Contingent Goods?

❖ Contingent goods are the goods, the acquisition of which by the seller depends upon
a contingency (an event which may or may not happen).
❖ Contingent goods are a part of future goods.
❖ Eg.‘A’ agrees to sell a particular painting work, provided he gets from ‘C’.

1. Discuss in detail about existing goods.
Existing goods are those owned or possessed by the seller at the time of contract of
sale. Goods possessed even refer to sale by agents or by pledgers.
Existing goods may be either
(i)Specific Goods-Specific goods denote goods identified and agreed upon at the time of
contract of sale.
(ii)Ascertained Goods-The goods which become ascertained subsequent to the formation of
the contract.
(iii)Generic or Unascertained Goods-These are goods which are not identified and agreed
upon at the time of contract of sale.
2. Discuss the implied conditions and warranties in sale of goods contract.

In every contract of sale, there are certain expressed and implied conditions and
warranties. The term implied conditions and warranties means which can be indirect from or
guessed from the context of the contract. Following are the implied conditions:
1.Conditions as to Title
2.Conditions as to Description
3.Sale by Sample
4.Conditions as to Quality or Fitness
Implied Warranties:
(i)Quiet Possession
(ii)Free from Any Encumbrances
(iii) Warranty in the case of Dangerous Goods
1. Explain in detail the elements of Contract of sale.
(1)Two Parties
➢ A contract of sale involves two parties–the seller and the buyer.
➢ The buyer and the seller should be two different persons.
➢ If a person buys his own goods, there is no sale.
➢ When the goods of a person are sold in execution of a decree, he himself may buy the
goods to retain their ownership.
(2)Transfer of Property
➢ To constitute sale, the seller must transferor agree to transfer the ownership in the
good to the buyer.
➢ A simple transfer of possession does not amount to sale.
(3)Goods
➢ The subject matter of contract of sale must be goods. It excludes money, actionable
claims and immovable property.
➢ The term ‘goods’ includes every kind of movable property, stocks and shares, growing
crops etc.
www.nammakalvi.com
➢ Goodwill, trademarks, copy rights, patent rights etc., are all also regarded as goods.
(4)Price
➢ The monetary consideration for the goods sold is called price.
➢ If goods are exchanged for goods, it is only barter and not a sale.
➢ But if goods are sold partly for goods and partly for money, the contract is one of sale.
(5) Includes both ‘Sale’ and ‘Agreement to Sell’

➢ The term contract of sale includes both sale and agreement to sell.
➢ If the property in goods is transferred immediately to the buyer it is called a sale.
➢ If the transfer of property takes place at a future date or on fulfilment of certain
conditions, it is called ‘an agreement to sell’.
2. Distinguish between Conditions and Warranty.
SL BASIC OF CONDITION WARRANTY
NO DIFFERENCE
1 Meaning It is a stipulation which is It is a stipulation which is
essential to the main collateral to the main purpose of
purpose of the contract of contract.
sale.
2 Significance Condition is so essential to It is of subsidiary or inferior
the contract that the character. The violation of
breaking of which cancels warranty will not revoke the
out the contract. contract.
3 Transfer of Ownership on goods Ownership on goods can be
ownership cannot be transferred transferred on the buyer without
without fulfilling the fulfilling the warranty.
conditions.
4 Remedy In case of breach of In the case of breach of warranty,
contract, the affected the affected party cannot cancel
party can cancel the the contract but can claim
contract and claim damages only.
damages.
5 Treatment Breach of condition may Breach of warranty cannot be
be treated as breach of treated as breach of condition
warranty
CHAPTER 22:THE NEGOTIABLE INSTRUMENTS ACT 1881

1. What is meant by Negotiable Instrument?
The word ‘Negotiable’ means transferable from one person to another in return for
consideration.
The word ‘Instrument’ means a written document by which a right is created in favour
of certain person.
Thus, a negotiable instrument is a document which entitles a person to a certain sum
of money and which is transferable from one person to another by mere delivery or by
endorsement and delivery.
A negotiable instrument means a promissory note, bill of exchange or cheque payable
either to order or to bearer.
2. List three characteristics of a Promissory Note.
✓ A promissory note must be in writing.
✓ The promise to pay must be unconditional
✓ It must be signed by the maker.
✓ The sum payable must be certain and must be specified in the note itself.
✓ A promissory note must be sufficiently stamped.
www.nammakalvi.com
3. What is meant by cheque?
According to section 6 of the Negotiable Instruments Act, 1881 defines a cheque as “a
bill of exchange drawn on a specified banker and not expressed to be payable otherwise than
on demand”.

1. Distinguish between Negotiability and Assignability.
SL.NO BASIC OF NEGOTIABILITY ASSIGNABILITY
DIFFERENCE
1 Meaning Negotiation refers to the Assignment implies the
transfer of the negotiable transfer of rights, by a
instrument, by a person to person to another, for the
another to make that purpose of receiving the
person the holder of it. debt payment
2 Transfer notice Not required Must be served by assignee
on his debtor.
3 Title Transferee gets the right of Assignee's title is subject to
holder in due course. the title of Assignor.
4 Consideration It is presumed It is proved
2. What are the characteristics of a bill of exchange?

1. A bill of exchange is a document in writing.
2. The document must contain an order to pay.
3. The order must be unconditional.
4. The instrument must be signed by the person who draws it.
5. The name of the person on whom the bill is drawn must be specified in the bill itself.
6. The bill may be payable on demand or aftera specified period.
3. Discuss the two different types of crossing.
General Cheque Crossing:
✓ The cheque bears across its face an addition of two parallel transverse lines and/or
the addition of words ‘and Co.’ or ‘not negotiable’ between them.
✓ Thus, in this case, the holder of the cheque or the payee will receive the payment only
through a bank account and not over the counter.
Special Cheque Crossing:
✓ The cheque bears across its face an addition of the banker’s name, with or without
the words ‘not negotiable’.
✓ In this case, the paying banker will pay the amount of cheque only to the banker whose
name appears in the crossing or to his collecting agent.
✓ However, in special crossing two parallel transverse lines are not essential but the
name of the banker is most important.
1. Distinguish a cheque and a bill of exchange. (Any 5)
SL NO BASIC OF BILL OF EXCHANGE CHEQUE
DIFFERENCE
1 Drawn A bill of exchange can be A cheque can be drawn only
drawn on any person on a particular banker.
including a banker
2 Payability It is payable on demand or It is payable on demand only.
on the expiry of a certain
period.

www.nammakalvi.com
3 Notice When a bill is dishonoured, Notice is not necessary for a
notice of dishonour is cheque.
necessary.
4 Sets Foreign bills of exchange It is not so in case of cheque.
are drawn in sets of three.
5 Discounting A bill can be discounted A cheque cannot be
with a bank. discounted
6 Stamping Bills are to be sufficiently Cheques need not be
stamped stamped
7 Currency A bill can be drawn and A cheque is payable only in
payable in any currency. home currency.
8 Crossing A bill cannot be crossed A cheque can be crossed
either generally or specially
so as to ensure payment to
the rightful owner.
9 Dishonour On dishonour of a bill there No such thing is done on the
is a practice of noting and dishonour of a cheque.
protesting
2. Discuss in detail the features of a cheque.(Any 5)

(i)Instrument in Writings:
A cheque or a bill or a promissory note must be an instrument in writing. Though the
law does not prohibit a cheque being written in pencil, bankers never accept it because of
risks involved.
(ii)Unconditional Orders:
The instrument must contain an order to pay money. It is not necessary that the word
‘order’ or its equivalent must be used to make the document a cheque.
(iii)Drawn on a Specified Banker Only:
The cheque is always drawn on a specified banker.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:
The order must be for payment of only money. If the banker is asked to deliver
securities, the document cannot be called a cheque.
(v)Payee to be Certain:
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.
(vii)Signed by the Drawer:
The cheque is to be signed by the drawer.Further, it should tally with specimen
signature furnished to the bank at the time of opening the account.
(vi)Payable Always on Demand:
A cheque is always payable on demand.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.
3. What are the requisites for a valid endorsement? (Any 5)

1. Endorsement is to be made on the face of the instrument or on its back. It is usually
made on the back of a negotiable instrument.
2. When there is no space for making further endorsements a piece of paper can be
attached to the negotiable instrument for this purpose. This piece of paper is called‘Allonge’.

www.nammakalvi.com
3. If the endorsee’s name is wrongly spelt, the endorsee should sign the same as spelt
in the instrument and write the correct spelling within brackets after his endorsement.
4. Endorsement for only a part of the amount of the instrument is invalid. It can be
made only for the entire amount.
5. Where, however, the instrument has been partly paid, a note to that effect can be
given on the instrument and endorsement made for the balance amount.
6. Endorsement is complete only when delivery of the instrument is made. On the
death of the endorse who has endorsed an instrument but has not delivered it to the
endorsee, the endorsement becomes invalid.
7. It is presumed that the endorsements appearing on a negotiable instrument were
made in the order in which they appear thereon.
8. Signing in block letters does not constitute regular endorsement.
9. The prefixes or suffixes added to the names of the payees or endorsees must be
omitted in the endorsement.
10. If the payee is an illiterate person, he can endorse it by affixing his thumb
impression on the instrument. But it must be duly attested by somebody who should give his
full address thereon.
Chapter 23: ELEMENTS OF ENTREPRENEURSHIP

1. Mention any two characteristics of entrepreneurs.
i. Spirit of Enterprise
Entrepreneur should be bold enough to encounter risk arising from the venture undertaken.
2. Self Confidence
Entrepreneur should have a self confidence in order to achieve high goals in the business.
2. List down the managerial functions of entrepreneurs.(Explain any 2)
➢ Planning
➢ Organising
➢ Directing
➢ Controlling
➢ Co ordination
3. List down the promotional functions of entrepreneurs.
➢ Discovery of Idea
➢ Determining the business objectives
➢ Detailed Investigation
➢ Choice of form of enterprise
➢ Fulfilment of the formalities
➢ Preparation of Business Plan
➢ Mobilisation of funds
➢ Procurement of Machinesand Materials
4. List the challenges faced by the women entrepreneurs
➢ Problem of Finance
➢ Limited Mobility
➢ Lack of Education
➢ Lack of Network Support
➢ Stiff Competition
➢ Sensitivity
➢ Lack of Information
➢ Dependent culture

1. Distinguish between entrepreneur and Manager.
www.nammakalvi.com
Basis of Entrepreneur Manager
difference
Motive The very motive of an entrepreneur is The very motive of manager
to start a venture by setting of an is to render service in an
entity. entity
Status He/ She is an owner of the entity salaried employee in the
entity
Risk Bearing bears the risk and uncertainty in doesn’t bear any risk in the
operating the enterprise venture
Rewards Entrepreneur is rewarded by profit for Manager’s reward salary,
the risk bearing exercise bonus, allowance is certain
and regular.
2. List down the commercial functions of Entrepreneur and explain them shortly.
(i) Production or Manufacturing
Under production function, entrepreneur has to take decision relating to selection of
factory site, design and layout, type of products to be manufactured,product design etc.,
(ii) Marketing
Entrepreneur has to carry out following functions pertaining to marketing aspect
namely consumer research, product planning and development, standardisation, packaging,
pricing, warehousing, distribution, promotion etc.,
(iii) Accounting
Entrepreneur has to arrange to prepare trading and profit and loss account in order
to know the profit or loss incurred out of operation of the business and prepare balance
sheet to know the financial status of business at a particular day.
3. Explain the promotional functions of entrepreneur.

(1) Discovery of Idea
The first and foremost function of entrepreneur is idea generation.Ideas can be
generated through several ways like own experience and exposure of entrepreneur, keen
observation of environment, education, training, market survey, environmental scanning
and so on.
(2) Determining the business objectives
Entrepreneur has to develop business objectives in the backdrop of nature of
business and type of business activity i.e. nature of business, manufacturing or trading,etc..
(3) Detailed Investigation
Entrepreneur has to analyse in detail the product proposes to produce.
iii. Long Answer Questions:

1. What are the characteristics of an entrepreneur?
1. Spirit of Enterprise
➢ Entrepreneur should be bold enough to encounter risk arising from the venture
undertaken.
➢ Entreprenuer should not get discouraged by setbacks or frustrations emerging
during the course of entrepreneurial journey.
2. Flexibility
➢ Entrepreneur should not single-mindedly stick to decisions in a rigid fashion.
➢ Entrepreneur should change the decisions made already in the light of ever-changing
business environment.
3. Innovation
➢ Entrepreneur should contribute something new or something unique to meet the
changing requirements of customers namely new product, new method of
production or distribution,etc

www.nammakalvi.com
4. Hard work
➢ Entrepreneur should put in tireless efforts and constant endeavours to accomplish
the goals of the venture successfully.
➢ They have to courageously face uncertainties, risks and constraints.
5. Analytical Ability
➢ Entrepreneurs should not make decisions on the basis of own prejudice or personal
likes and dislikes.
➢ Entrepreneur should be able to objectively analyse the situation and act accordingly.
6. Foresight
➢ Entrepreneur should have a foresight to visualise future business environment.
2. Distinguish between an Entrepreneur and an Intrapreneur.
Basis Entrepreneur Intrapreneur

Thinking Thinking Intrapreneur is forced to think
Entrepreneur is a free thinker independently but within scope of
business activities
Dependency Entrepreneur is an Intrapreneur is dependent on the
independent person entrepreneur. He is an employee.
Fund Entrepreneur has to mobilize Intrapreneur does not engage in fund
Mobilization funds to finance the venture. mobilization. But can access funds
mobilized by the entrepreneur.
Reward Entrepreneur is rewarded by Intrapreneur does not share in profits of
profit for the risk bearing venture. But gets perquisites, salary,
exercise. incentives etc., for the service.
Operation Entrepreneur operates Intrapreneur operates within the
mostly outside the enterprise.
enterprise.
Status Entrepreneur is owner, and Intrapreneur is a salaried employee.
doesn’t report to anybody in
the venture.
3. Discuss the challenges faced by Women Entrepreneurs.
1. Problem of Finance:
➢ The access of women to external sources of funds is limited as they do not generally
own properties in their own name.
➢ Financial institutions they impose stringent condition which discourages women to
avail themselves of loan assistance from banks.
➢ Because of the limited funds, women entrepreneurs are not able to effectively and
efficiently 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.
➢ This restricts the mobility of women entrepreneur significantly.
3. Lack of Education
➢ Illiterate and semi-literate women entrepreneurs encounter a lot of challenges in
their entrepreneurial journey with respect to maintaining accounts, understanding
money matters, day-to-day operations of the company, etc.,
➢ This reduces the efficiency of operating the business successfully.
4. Stiff Competition
➢ Women entrepreneurs have to face serious competition for their goods from
organised sector and from their male counterparts.

www.nammakalvi.com
➢ Since they are not able to spend freely due to financial restrictions, they are not able
to compete effectively and efficiently in the market.
5. 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 or due to their pre
occupation with household responsibilities.
6. 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.
➢ This cultural barrier does not allow them to start and manage their ventures
according to their free will and pleasure.
Chapter 24: TYPES OF ENTREPRENEURS

1. What is the other name of business entrepreneur?
➢ Business entrepreneur is called solo entrepreneur.
➢ He/she is the one who conceives an idea for a new product/service and establishes a
business enterprise to translate his idea into reality.
2. Mention the other name for corporate entrepreneur.
➢ Corporate entrepreneur is called promoter.
➢ He/she takes initiative necessary to start an entity under corporate format.
➢ He/she arranges to fulfil the formalities to start a corporate entity under Company
law.
3. Who are agricultural entrepreneur?
➢ Agricultural entrepreneurs are those entrepreneurs who raise farm products and
market them.
➢ Those who raise allied products like poultry, meat, fish, honey, skin, agricultural
implements, flower, silk, fruits, prawn etc., are called agricultural entrepreneur.
4.Give some examples of pure entrepreneurs
➢ Pure entrepreneurs are individuals who are pushed to enter into venture by
psychological and economic motives.
➢ Example DhirubaiAmbani, Jamshadji Tata, T.V. SundaramIyengar, Seshadriji, Birla,
Narayanamurthi, Aziz Premji and so on.

1. Who is a private entrepreneur?
Ventures started by individual either singly or collectively at their own risk after
mobilising various resources in order to earn profit are called private entrepreneurship.
2. Explain about Imitative Entrepreneur
➢ Imitative entrepreneur is one who simply imitates existing skill, knowledge or
technology already in place in advanced countries.
➢ For example, expensive medicines developed in advanced countries are simply
reengineered by changing the composition of elements or changing the process of
production
3. Write about fabian entrepreneur
➢ These entrepreneurs are said to be traditionalists. They do not simply change to the
changes happening in the environment.
➢ But they adapt themselves to the changes only as a last resort when they fear that
non adaptability to changes will unavoidably lead to loss or collapse of the
enterprise. Example; Nursus coffee

www.nammakalvi.com
1. Explain in detail on classification according to the type of business
1. Business Entrepreneur
➢ Business entrepreneur is called solo entrepreneur.
➢ He/she is the one who conceives an idea for a new product/service and establishes a
business enterprise to translate his idea into reality.
➢ He/she may establish small or large enterprise to commercially exploit his/he idea.
2. Trading Entrepreneur
➢ Trading entrepreneurs are those who restrict themselves to buying and selling
finished goods.
➢ They may be engaged in domestic and international trade.
➢ Their core strength lies in distribution and marketing.
➢ They get their income by way of commission and marketing.
3. Industrial Entrepreneur
➢ These are entrepreneurs who manufacture products to satisfy to the needs of
consuming public after identifying the need left unfulfilled by the manufacturer yet.
➢ Industrial entrepreneurs mobilise the resources of various types and create an entity
to manufacture the products or service.
4. Corporate Entrepreneur
➢ Corporate entrepreneur is called promoter.
➢ He/she takes initiative necessary to start an entity under corporate format.
➢ He/she arranges to fulfil the formalities to start a corporate entity under Company
law.
➢ In corporate form of organisation, ownership and management are separated.
5. Agricultural Entrepreneur
➢ Agricultural entrepreneurs are those entrepreneurs who raise farm products and
market them.
➢ Those who raise allied products like poultry, meat, fish, honey, skin, agricultural
implements, flower, silk, fruits, prawn etc., are called agricultural entrepreneur.
➢ In short these entrepreneurs pursue their venture in agriculture and allied sector.
2. Discuss the nature of functional entrepreneurs.

1. Innovating Entrepreneur:
➢ Innovative entrepreneur is one who is always focussed on introducing a new project
or already started.
➢ They constantly observe the environment around them; collect information and
analyse them in order to contribute something a new in the venture.
➢ Their innovation may take the form of brand new product, upgraded product,
discovering untapped market, new method of production, and so on. introducing
something new in the venture.
2. Imitative Entrepreneur
➢ Imitative entrepreneur is one who simply imitates existing skill, knowledge or
technology already in place in advanced countries.
➢ For example, expensive medicines developed in advanced countries are simply
reengineered by changing the composition of elements or changing the process of
production.
3. Fabian Entrepreneur
➢ These entrepreneurs are said to be traditionalists. They do not simply change to the
changes happening in the environment.
➢ But they adapt themselves to the changes only as a last resort when they fear that
non adaptability to changes will unavoidably lead to loss or collapse of the
enterprise. Example; Nursus coffee
4. Drone Entrepreneur
www.nammakalvi.com
➢ Drone entrepreneurs are those who are totally opposed to changes unfolding in the
environment.
➢ They used to operate in the niche market. They are similar to fabian entrepreneur in
single-mindedly pursuing their conventional practices.
➢ The main difference between Fabian entrepreneur and drone entrepreneur lies in
the fact that while fabian entrepreneur adapts to changes eventually as a last resort,
drone entrepreneur never adapts himself or herself to change, Example; Gopal
Tooth powder
CHAPTER 25: GOVERNMENT SCHEMES FOR ENTREPRENEURIAL

DEVELOPMENT
1. Name any two Governmental Entrepreneurial schemes.
❖ Startup India
❖ Make in India
❖ Stand-Up India
❖ Dairy Entrepreneurship Development Scheme
❖ Single Point Registration Scheme (SPRS)
❖ National Skill Development Mission
2. Give a note on ‘Digital India’.
❖ The Digital India initiative has been launched to modernize the Indian economy to
make all government services available electronically.
❖ The initiative aims at transforming India into a digitally-empowered society and
knowledge economy with universal access to goods and services.
3. List down the two types of finance for entrepreneur
❖ Entrepreneur requires two types of finance namely long term and short term.
❖ While long-term requirements are needed for acquiring fixed assets,
❖ Short-term requirement are meant for meeting working capital needs.

1. What is ‘Startup India’?
❖ Through the Startup India initiative, Government of India promotes entrepreneurship
by mentoring, nurturing and facilitating startups throughout their life cycle.
❖ Since its launch in January 2016, the initiative has successfully given a head start to
numerous aspiring entrepreneurs.
❖ A ‘Fund of Funds’ has been created to help startups gain access to funding.
2. Expand the following: STEP, JAM, TREAD, M-SIPS, SEED and New Gen IEDC
STEP: Support to Training and Employment Programme for Women
JAM : Jan Dhan-Aadhaar– Mobile
SEED : Science for Equity Empowerment and Development

1. Explain any five Government Entrepreneurial schemes.
1. Digital India:
❖ The Digital India initiative has been launched to modernize the Indian economy to
make all government services available electronically.
❖ The initiative aims at transforming India into a digitally-empowered society and
knowledge economy with universal access to goods and services.
2.Startup India:
❖ Through the Startup India initiative, Government of India promotes entrepreneurship
by mentoring, nurturing and facilitating startups throughout their life cycle.
www.nammakalvi.com
❖ Since its launch in January 2016, the initiative has successfully given a head start to
numerous aspiring entrepreneurs.
❖ A ‘Fund of Funds’ has been created to help startups gain access to funding.
3.Dairy Entrepreneurship development scheme.
❖ Dairy Entrepreneurship Development Scheme aims at helping entrepreneurs in the
field of Agriculture, pets and animals, to set up small dairy farms
❖ Incentives are provided to cover the cost of the required equipment or establishment
of the facility.
4. Jan Dhan-Aadhaar - Mobile (JAM):
❖ JAM, for the first time, is a technological intervention that enables direct transfer of
subsidies to intended beneficiaries.
❖ Therefore, eliminates all intermediaries and leakages in the system, which has a
potential impact on the lives of millions of Indian citizens.
5.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.
2. Describe the steps promoting Entrepreneurial venture.

1. Selection of the product:
❖ An entrepreneur may select a product according to his aspiration, capacity and
motivation after a thorough scrunity of micro and macro environment of business.
❖ He/she may select a brand, new product or may like to select imitation one or he/she
may improve upon an existing product in terms of additional features like comforts,
convenience, ease of operation, lower price etc.
2. Selection of form of ownership:
❖ Entrepreneur has to choose the form of organisation suitable and appropriate for his
venture namely family ownership, partnership and private limited company.
❖ Family ownership and partnership forms of organisation are suited for exercising
unified control over the venture.
3.Selection of Site:
Entrepreneur has to choose suitable plot for accommodating his venture.
He has four options mentioned below.
✓ State Development Corporation like SIDCO, SIPCOT, MMDA, TNHB and Directorate of
Industries may allot plot to entrepreneur
✓ Entrepreneur can have a factory sheds constructed by State Industrial Development
Agency
✓ Entrepreneur can start ventures in the land developed by private developers
✓ Entrepreneur may buy private land and develop it for industrial use.
4. Designing Capital Structure:
❖ Entrepreneur has to determine the source of financé for funding the venture.
❖ He/she may mobilise funds from his own savings, loans from friends and relatives,
term loans from banks and financial institutions.
5. Acquisition of Manufacturing know-how
❖ Entrepreneur can acquire manufacturing know-how from Government research
laboratories, research and development divisions of industries, and individual
consultants.
❖ Besides, manufacturing know-how can be obtained by foreign technical collaboration.
www.nammakalvi.com
6.Project report.
❖ Project reports needs to be prepared according to the format prescribed in the loan
application form of term lending institutions.
❖ An entrepreneur can get the report prepared either by technical consultancy
organisation or by auditors or by consultants or by development agencies.
❖ This report should cover aspects like
➢ sources of finance,
➢ technical know-how,
➢ sources of labour and raw materials,
➢ Market potential and profitability.
The project report should include the followingTechnical Feasibility,Economic
Viability,Financial Viability,Managerial Competency,Provisional Registration
Certificate,Permanent Registration Certificate,Statutory Licence,Power
Connection,Arrangement of Finance.
Chapter 26: Companies Act 2013

1. What are the four stages of formation of a company?
‘Formation of a Company’ has been divided into four stages:
1.Promotion(Preliminary steps - First stage):
2.Incorporation or Registration – Second stage
3. Capital Subscription - Third stage
4.Commencement of Business : Fourth Stage
2. What is Bonus Shares?
Bonus share means to utilize the company’s reserves and surpluses, issue of shares to
existing shareholders without taking any consideration is known as Bonus Shares. It can be
issued by:
(i) Making partly paid up shares as fully paid
(ii) Issuing new shares
3. What is Right Shares?
❖ Right shares are the shares which are issued by the company, with the aim of
increasing the subscribed share capital of the company by further issue, if it is
authorized by its Articles.
❖ The right shares are primarily issued to the existing equity shareholders through a
letter of an issue, on pro rata basis.
4. What is Debentures?
When a company needs funds for extension and development purpose without
increasing its share capital, it can borrow from the general public by issuing certificates for a
fixed period of time and at a fixed rate of interest. Such a loan certificate is called a
debenture.

1. What do you understand by Issue of Securities at Premium?
❖ When shares are issued at a price above the face or nominal value, they are said to
be issued at a premium.
❖ For example, a share having the face value of Rs.10 is issued at Rs.12. Here, Rs.2 is
the premium.
❖ The amount of share premium has to be transferred to an account called the
‘Securities Premium Account’.
❖ This account is capital in nature and can only be utilized for the purposes specified by
the Act
www.nammakalvi.com
2. Explain different Kinds of Preference shares.
Redeemable Preference shares:
❖ Such preference shares can be claimed after a fixed period or after giving due notice.
Non-Redeemable Preference shares:

❖ Such shares cannot be redeemed during the lifetime of the company, but can only be
obtained at the time of winding up (liquidation) of assets.
Convertible Preference shares:
❖ The shares can be converted into equity shares after a time period or as per the
conditions laid down in the terms.
Non-convertible Preference shares:
❖ Non-convertible preference shares cannot be, at any time, converted into equity
shares.
1. Write the difference between Debentures and Shares:
SL.NO BASIS FOR SHARES DEBENTURES
COMPARISON
1 Meaning The shares are the owned The debentures are the
funds of the company. borrowed funds of the
company.
2 Holder The holder of shares is The holder of debentures is
known as shareholder. known as debenture holder.
3 Status of Holders Owners Creditors
4 Form of Return Shareholders get the Debenture holders get the
dividend. interest.
5 Payment of Dividend can be paid to Interest can be paid to
return shareholders only out of debenture holders even if
profits. there is no profit.
6 Security for No Yes
payment
2. What are the various kinds of Debentures? Any 5

1. On the basis of convertibility, Debentures may be classified into following
categories:
(A) Non Convertible Debentures (NCD):
➢ These instruments retain the debt character and cannot be converted into equity
shares.
(B) Partly Convertible Debentures (PCD):
✓ A part of these instruments are converted into Equity shares in the future at notice
of the issuer.
✓ The issuer decides the ratio for conversion. This is normally decided at the time of
subscription.
(C) Fully convertible Debentures (FCD):
✓ These are fully convertible into Equity shares at the issuer's notice. The ratio of
conversion is decided by the issuer.
✓ Upon conversion the investors enjoy the same status as ordinary shareholders of the
company.
2. On the basis of Security, debentures are classified into:

www.nammakalvi.com
(A) Secured Debentures:
✓ These instruments are secured by a charge on the fixed assets of the issuer
company.
✓ So if the issuer fails on payment of either the principal or interest amount, such fixed
assets can be sold to repay the liability to the investors.
(B) Unsecured Debentures:
✓ These instrument are unsecured in the sense that if the issuer defaults on payment
of the interest or principal amount, the investor has to be included as unsecured
creditors of the company.
3. On the basis of Redeemability, debentures are classified into:
(A) Redeemable Debentures:
✓ It refers to the debentures which are issued with a condition that the debentures will
be redeemed at a fixed date or upon demand, or after notice, or under a system of
periodical drawings.
(B) Perpetual or Irredeemable Debentures:
✓ A Debenture, in which no specific time is specified by the companies to pay back the
money, is called an irredeemable debenture.
✓ The debenture holder cannot demand repayment as long as the company is a going
concern. Issuing company has to pay interest periodically.
✓ After the commencement of the Companies Act, 2013, now a company cannot issue
perpetual or irredeemable debentures.
4. On the basis of Registration, debentures may be classified as
(A) A Registered Debentures:
✓ Registered debentures are issued in the name of a particular person, whose name
appears on the debenture certificate and who is registered by the company as
holder on the Register of debenture holders.
(B) Bearer debentures:
✓ Bearer debentures on the other hand, are issued to bearer, and are negotiable
instruments, and so transferable by mere delivery like share warrants.
Chapter 27: Company Management

1. Name the companies required to appoint KMP.
➢ Every Listed Company
➢ Every Public Company
o Having paid up share capital of Rs 10 Crores or More
2. Who is whole time Director?
A Director is one who devotes whole of his time of working hours to the company and
has a significant personal interest in the company as the source of his income.
3. Who is called as Managing Director?
A Director is one who is employed by the company and has substantial powers of
management over the affairs of the company subject to superintendence, direction and
control of the board.
4. Who can be Executive Director?
➢ An executive director is a Chief Executive Officer (CEO) or Managing Director of an
organization, company, or corporation, who is responsible for making decisions to
complete the mission and for the success of the organisation.
➢ In the globalised business world the title of President or of Chief Executive Officer is
used instead of Managing Director.

www.nammakalvi.com
1. When are alternative directors appointed?
➢ Alternate director is appointed by the Board of Directors, as a substitute to a director
who may be absent from India, for a period which is not less than three months.
➢ The appointment must be authorised either by the Articles of Association of the
company or by a passing a resolution in the General Meeting.
➢ The alternative director is not a representative or agent of Original Director.
2. Who is a shadow director?
A person who is not the member of Board but has some power to run it can be
appointed as the director but according to his/her wish.
3. State the minimum number of Directors for a Private company.
a) Public Company: Every Public company shall have a minimum number of 3
directors and
b) Private company:
✓ In case of One Person Company: The requirement of directors is one.
✓ Other Private Companies: The minimum requirement of Directors is two.
1. Who are the KMP?
✓ 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.
WHO ARE THE KEY MANAGERIAL PERSONNEL?
The definition of the term Key Managerial Personnel is contained in Section 2(51) of
the Companies Act, 2013. This Section states:
1. the Chief Executive Officer
2. the Managing Director or the Manager;
3. the Company Secretary;
4. the Whole-time Director;
5. the Chief Financial Officer; and
6. such other officer as may be prescribed;
2. Brief different types of Directors.

1. Residential Director: –
➢ Every company should appoint a director who has stayed in India for a total Period of
not less than 182 days in the previous calendar year.
2. Independent Director:
➢ An independent director is an alternate director other than a Managing Director who
is known as Whole Time Director Or Nominee Director.
The following type of companies has to appoint minimum Two independent directors:-
a) Public Companies which have Paid-up Share Capital- ₹10 Crores or More; –
b) Public Companies which have Turnover- ₹100 Crores or More:-
c) Public Companies which have total outstanding loans, debenture, and deposits of
₹50 Crores or More.
3. Small Shareholders Directors:
➢ Small shareholders can appoint a single director in a listed company. But this action
needs a proper procedure like handing over a notice to at least 1,000 Shareholders
or 1/10th of the total shareholders.
4. Nominee Director:

www.nammakalvi.com
➢ "A director nominated by any financial Institution in pursuance of the provisions of
any law for the time being in force, or of any agreement, or appointed by any
Government , or any other person to represent its interests”.
5. Women Director:
➢ There are certain categories according to which there should be at least one woman
as a director on the Board. The following class of companies shall appoint at least
one woman director
(i) every listed company;
(ii) every other public company having:
(a) paid–up share capital of one hundred crore rupees or more; or
(b) turnover of three hundred crore rupees or more.
3. State the qualification of Directors.

➢ As regards to the qualification of directors, there is no direct provision in the
Companies Act, 2013.
➢ In general, a director shall possess appropriate skills, experience and knowledge in
one or more fields of finance, law, management, sales, marketing, administration,
research, corporate governance, technical operations or other disciplines related to
the company’s business.
According to the different provisions relating to the directors; the following qualifications
may be mentioned:
1. A director must be a person of sound mind.
2. A director must hold share qualification, if the article of association provides such.
3. A director must be an individual.
4. A director should be a solvent person.
5. A director should not be convicted by the Court for any offence, etc.
CHAPTER 28: COMPANY SECRETARY

1. Who is a Secretary?
➢ The word secretary has originated in Latin. The Latin word ‘Secretarius’ which means
secret.
➢ The person who is responsible for the general performance of an organization is
called company secretary.
2. what is meant by Meeting?
A company meeting must be organized and held in perfect compliance with the
various provisions of the Act and the rules framed there under. It is essential that the
business dealt with at the meetings, should be validly transacted and not liable to be
questioned later due to any irregularity.
3. Write short note on ‘Proxy’?
➢ A proxy is a person who is designated by another to represent that individual at a
meeting or before a public body.
➢ It also refers to the written authorization allowing one person to act on behalf of
another.
➢ In corporate law, a proxy is the authority to vote stock.
4. What is Vote?
➢ The word ‘Vote’ originated in Latin word ‘Votum’ indicating one’s wishes or desire.
➢ By casting his vote one formally declaring his opinion or wish in favour of or against a
proposal or a candidate to be elected for an office.

www.nammakalvi.com

1. What is Special Resolution?
➢ A special resolution is the one which is passed by a not less than 75% of majority.
➢ The number of votes, cast in favour of the resolution should be three times the
number of votes cast against it.
➢ The intention of proposing a resolution as a special resolution must be specifically
mentioned in the notice of the general meeting.
2. What do you mean by Statutory Meeting?

➢ According to Companies Act, every public company, should hold a meeting of the
shareholders within 6 months but not earlier than one month from the date of
commencement of business of the company.
➢ This is the first general meeting of the public company is called the Statutory
Meeting.
➢ This meeting is conducted only once in the lifetime of the company.
➢ A private company or a public company having no share capital need not conduct a
statutory meeting.
➢ The company gives the circular to shareholders before 21 days of the meeting.
3. Give any three cases in which an ordinary resolution need to be passed.
➢ An ordinary resolution is one which can be passed by a simple majority
Ordinary Resolution is required for the following Matters:
✓ To change or rectify the name of the company
✓ To alter the share capital of the company
✓ To redeem the debentures
✓ To declare the dividends
✓ To appoint the directors

1. Briefly state different types of company meetings.
I. Shareholders Meetings:
The meeting held with the shareholders of the company is called shareholders meeting.
a) Statutory Meeting
✓ According to Companies Act, every public company, should hold a meeting of the
shareholders within 6 months but not earlier than one month from the date of
commencement of business of the company.
✓ This is the first general meeting of the public company is called the Statutory
Meeting. This meeting is conducted only once in the lifetime of the company.
✓ The company gives the circular to shareholders before 21 days of the meeting.
b) Annual General Meeting [AGM]
✓ Every year a meeting is held to transact the ordinary business of the company. Such
meeting is called Annual General Meeting of the company (AGM).
✓ Company is bound to invite the first general meeting within eighteen months from
the date of its registration. Then the general meeting will be held once in every year.
✓ Every Annual General meeting shall be held during business hours, on a day which is
not a public holiday, at the Registered Office of the company
c) Extra-Ordinary General Meeting
✓ All other general meetings other than statutory and annual general meetings are
called extraordinary general meetings.
✓ If any meeting conducted in between two annual general meeting to deal with some
urgent or special or extraordinary nature of business is called as extra-ordinary
general meetings.
II. Meeting of the Board of Directors
a) Board Meetings
www.nammakalvi.com
✓ Meetings of directors are called Board Meetings. Meetings of the directors provide a
platform to discuss the business and take formal decisions.
✓ First meeting of directors should be organized within 30 (Thirty) days from the date
of incorporation of the company.
b) Committee Meetings
✓ Every listed company and every other public company having paid up share capital of
₹10 crore is required to have audit committee. This committee should meet at least
four times in a year.
✓ In case of other companies, the board of directors shall nominate a director to play
the role of audit committee which is functioning as a vigil mechanism.
III. Special Meeting
a) Class Meeting (Meetings of Particular Share or Debenture Holders)
✓ Meetings, which are held by a particular class of share or debenture holders e.g.
preference shareholders or debenture holders is known as class meeting.
b) Meetings of the Creditors
✓ Strictly speaking, these are not meetings of a company. Unlike the meetings of a
company, there arise situation in which a company may wish to arrive at a
compromises with the creditors to avoid any crisis or to introduce any new proposals
2. Explain different types of open and secret types of voting.
✓ The word ‘Vote’ originated in Latin word ‘Votum’ indicating one’s wishes or
desire.
✓ By casting his vote one formally declaring his opinion or wish in favour of or
against a proposal or a candidate to be elected for an office
I. Open Procedure :
This type of voting has no secrecy as the all the members assembled can see voting.
There are two popular methods of open voting namely voice voting and voting by show of
hands.
(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.
✓ Chairman announces the result of voice voting on the basis of strength of words
shouted.
✓ It is an unscienfic method. It cannot be employed for deciding complex issue.
(b) By Show of Hands:
✓ Under this method 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.
✓ Then the chairman counts the number of hands raised for Yes and No respectively
can announce the result on the basis of hands counted.
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.
✓ The chairman opens the ballot box in the presence of tellers or scrutinizers and
counts the votes. He rejects the defective or wrongly marked ballot papers. The
votes are counted and the results are announced.
b) Postal Ballot :
✓ Big companies or big associations having members scattered all over the country
follow this method of voting.

www.nammakalvi.com
✓ Under this method serially numbered ballot papers are sent by post in sealed covers
to the members,who, living at a distant place, are unable to attend the meeting
physically.
✓ The members or 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.

12th Commerce Study Material em

Uploaded by

Copyright:

Available Formats

12th Commerce Study Material em

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

12th Commerce Study Material em

Uploaded by

Copyright:

Available Formats

DCR Commerce Guide

3. What are the principles of Taylor? (Explain any 3 principles)

D.Chithambararaj PGT Commerce

III. Long answer questions:

2. Explain the principles of modern management. (Any 5)

D.Chithambararaj PGT Commerce

Chapter 2: FUNCTIONS OF MANAGEMENT:

III. Long Answer Questions:

D.Chithambararaj PGT Commerce

Chapter 3: MANAGEMENT PROCESS:

D.Chithambararaj PGT Commerce

2. What are the advantages of MBE?

3. Discuss the disadvantages of MBE

Chapter 4: FINANCIAL MARKETS:

D.Chithambararaj PGT Commerce

III. Long Answer Questions:

1. Distinguish between new issue market and secondary market. (Any 5)

BASIS FOR COMPARISON NEW ISSUE MARKET SECONDARY MARKET

D.Chithambararaj PGT Commerce

3. Discuss the role of financial market.

Chapter 5: CAPITAL MARKET

D.Chithambararaj PGT Commerce

II. Short Answer Questions:

2. Explain any two functions of Capital Market.

3. Explain about Factoring and Venture Capital Institutions.

III. Long Answer Questions:

D.Chithambararaj PGT Commerce

2. Briefly explain the functions of capital market.

3. Explain the various types of New Financial Institutions

D.Chithambararaj PGT Commerce

II. Short Answer Questions:

III. Long Answer Questions:

2. Explain the characteristics of Money Market?

3. What are the characteristics of Government Securities?(Any 5)

Chapter 7: STOCK EXCHANGE

II. Short Answer Questions:

3. Explain Stag and Lame Duck.

III. Long Answer Questions:

D.Chithambararaj PGT Commerce

2. Explain the features of Stock Exchange. (Any 5)

3. Distinguish between Stock Exchange and Commodity Exchange.

D.Chithambararaj PGT Commerce

Chapter 8: SECURITIES EXCHANGE BOARD OF INDIA (SEBI)

Additional Director Technical Director

Section Officers Technical

D.Chithambararaj PGT Commerce

III. Long Answer Questions:

2. Explain the powers of SEBI.

Chapter 9: FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT

I. Very Short Answer Questions:

2. State two features of HRM.

D.Chithambararaj PGT Commerce

3. Mention two characteristics of Human Resource.

II. Short Answer Questions:

III. Long Answer Questions:

2. Describe the significance of Human Resource Management.

iii. To ensure the correct requirement of manpower:

3. Discuss the Operative functions HRM.