11th Commerce 3 Marks Study Material English Medium

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CHAPTER-1:i.O . rgrg
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1. Explain
d a
d
l
saasa the meaning of thedterm“Vanigam”. a
d saasa l
d a
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d a
d saasa l
d a
d saasla
.P.Pa a  The word vaniyam .P.Paora vanipam would have had .P.PaaaDravidian origin. aa
.P.P aa
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w ww
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ww  The early wTamils
w produced their products ww and goods in their landsw w bartered their surplus and
and ww
ithat
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O g trade came into existence.
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O
a i
a word ‘Vanigam’ hassabeen a i a i a i
d a
d slalThe
saa d a
d a slalawidely used in sangam d a
d
aslala like Purananuruaand
saliterature d d
lala
saasThirukkural. d a
d saasla
a
.P.2.PaState the meaning ofwMaruvurapakkam a
.P.Pa a
.P.Pa
and Pattinapakkam. a
.P.Pa a
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ww  Big cities like w w Poompuhar had the ‘Maruvurappakam’ w w (inland town) and w w ‘Pattinapakkam’ (coastalw w
i
Town),
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O i . O . rgrg many merchants met
where
O i . O . rgrganother for the purpose
one
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askinds l a a
asalstuff. i l
asal a a i asla
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d a sa d a sa
.P.Pa ad  Port towns like.Tondi, P.Pa adKorkai, Puhar and Muziri .P.P ad always seen as busy.P
awere d and
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with a ad
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www marketsw wwactivities related to imports
with wwwand exports. www www
3. What is the rrole
l a ia.Oi . Ogrg of Sangam in trade l a ia i . rgrg
development
.O O of ancient Tamilnadu?
l a ia.Oi . rgrg
O l a ia.Oi . rgrg
O
d a
d saa l
sa During the Sangam dperiod, a
d
l
saasathe main trade routesdwere a
d
l
saaspassing
a
d a
d
l
saasaover
through thick forests
d a
d saasla
.P.Paa western ghats..P.P aa .P.Paa aa
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w ww
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ww  Main roads wwknown as Peruvali were built ww for surface transportation. ww ww
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etc.. g
l a ia. O
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i . O l a a O
i . O l a a i . O
d a
d saasa l promote overseas
d a
d saasa
trade. Manyl such ports were
d a
d saasa
developed l during the Sangam
d saasa
period.
a
d
l
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w ww
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ww  Pandiyaswdeveloped w Korkai, Saliyur, Kayal, ww Marungaur pattinam and wwKumari for foreign trade. ww
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grg posts to collect customs rgralong
g the highways and.the rgrg
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5. What was focused in a
.P.Pa
Arthasasthra about creation of a
.P.Pa
wealth? a
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wwww w wwimportance
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in relation to treasury, w w
taxation, commerce, w w
agriculture and conservation of natural resources.
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creation i of wealth as the meansasall a a
to i promote the well being l a a
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.P.CHAPTER-2:
P .P.Pa ad .P.Pa ad a ad
.P.P a ad
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w w w w w w w w w w w w w ww
www 1. What do you mean wwby w human activities? Explain. www www www
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satisfaction.
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saasa Activities: Activities d a
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a
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retailersww w ww
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II. Non-Economic Activities: Activities undertaken to satisfy social and psychological needs
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rfood .O rgrg
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l a ia i . for family l a ia i . l a ia i . l a ia i .
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Write
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saasashort notes on: a) Business d a
d saasb)a l
Profession d a
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d a
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.P.PaBusiness: It refers towany aa
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w w w w activity w
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through production, distribution, purchase and sale of goods and services.
. O O grg
rprofessions . O rgrg which involve rendering
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a
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3. Explain the concept of ‘Business’.
O
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rbasis i .O . rgrg
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w w w  According wto w w
James Stephenson business
w w w
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www www www www www
profits.”
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ala
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www w www w www w
 Human objectives refer to the objectivesPadasalai aimed at the well-being as well as fulfilment of
i .O . rgrg of employees. i.O.O
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O
l a a i
expectations l a a i l a a i l a a i
d a
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sa The human objectives d ad of
a l
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include ad
asa l
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w ww
w social and w ww
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CHAPTER-3:
i . O . rgbetween
O rg i . O . rgrgand genetic industries.
O i . O . rgrg
O i . O . rgrg
O
1. Distinguish
a i Extractive i
industries
a a i a i
d a
d saaslala Industries: These
Extractive d ad saaslala extract or draw dout
industries ad
aslala from natural sources.
saproducts d a
d
lala
saasImportant d a
d saasla
a
.P.Pa extractive industrieswinclude a
.PPa a
.P.Pahunting and fishing operations. a
.P.Pa a
.P.Pa
ww
ww
ww
wwwww. farming, mining, www wdrilling,
oilw w wwww ww
wwwwww
Genetic Industries: These industries remain engaged in breeding plants and animals for their use in
further i . O . rgrg
O
reproduction. Eg poultry, diary, i . O . O grg fisheries etc ., .OO
rpiggery, i . rgrg i . O . rgrg
O
l a a i
asaldo you mean by tertiary l a
al a i
aindustries? l
asala a i l
asala a i asla
2.da sa
What d a sa s d a sa d a sa d a sa
a ad
.P.P a ad
.P.P .P.P a ad a ad
.P.sell
P a ad
.P.P
w w w  They do not
w w w
produce goods. These w w
industries
w produce utility services
w w w
and them at a profit. w w w
www www www www www
 They help trade, industry and commerce. This term also includes auxiliaries to trade like
i .O . rgrg insurance, warehouse,
O
banking, i .O . rgadvertisement
O rg etc. ai.O . rgrg
O i .O . rgrg
O
l a a i l a a i l a i l a a i
3.da
dWrite
l
saasa any three characteristics d ad
l
saasofacommerce. d adsaasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.undertaken
P .P.Paa aa
.P.P
w ww
w  Commerce w w
w w
deals with all economic activities w ww
w for profit.ww ww w ww
w
ww ww ww ww ww
 It involves an exchange of goods and service for profit.
 i.O rgrgis an incentive for undertaking
O
Profit
. i .O . rgrg all commercial activities.
O i .O . rgrg
O i .O . rgrg
O
4.da
dNarrate
l
saasa commerce with andadexample. saasa l
d adsaasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P
w ww
w  Commerce w w
w w
refers to all those activitieswwhich ww
w are necessary for bringing w www goods from the place ww ww
ww ww
of production to the place of their consumption.
ww ww ww
 i.O . rgrg to Evelyn Thomas,
According
O i . O . rgrg
“Commercial
O operations deal i . O . rgrgthe buying and sellingi.O
with
O of.Orgrg
a i a i a i a i
d a
d saaslalagoods, the exchange d ad of
lala
saascommodities a saaslala of finished products”.
and the contribution
d d d a
d saaslala d a
d saasla
a
.P.Pa  Ex International a
.P.P a a
.P.Pacountries. Interstatewcommerce a
.P.Pa is done across ww a
.P.Pa
wwww w ww
w commerce takes place between
w ww
w w w w w w
ww w w
state. E-commerce takes places via Internet.
w w w w w w
CHAPTER-4:.OO
i . rgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l a a i
asaisl it possible to maintain l a a i
asal in sole proprietorship? l
asala a i l
asala a i asla
d s
1. aHow
a d a sasecrecy
d a sa d a sa d a sa
a ad  He/she manages
.P.P aalladthe affairs of the business,
.P.P .P.P d
a athe secrecy can be maintained .P.Pa adeasily. a ad
.P.P
www  Since the
w
wwindividual is himself as a owner, www he need not consult anybody www else. www
2. What isO
i . rgrg liability?
. iunlimited
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a l a a i l a a i l a a i
d a
d
The l
saasacreditors have the right d atosa
d a
l
sa their dues even dfrom
recover adsaasthe l
a personal property of athe
d d saasa l
d a
d saasla
a a Proprietor in case the.P
.P.P a a assets are not sufficient
.P .P.P a ato pay their debts. .P.P aa aa
.P.P
w ww
w w wwbusiness
w w ww
w w www w ww
w
ww 3. Write any three wwcharacteristics of Sole Proprietorship. ww ww ww
i. Ownership
i .O . rgrgby one man
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d
This l
saasais owned by single person. d ad
l
saasHea is not only the ownerda d a
l
asabusiness but also Manager
ofsthe
d a
d
l
saasofa the entire d a
d saasla
a a affairs.
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww ii. Freedom of w w and Quick Decisions ww
work ww ww
i . O . rgrg is himself as a owner,
Since the individual
O i . O . rgrhe
O g need not consult anybody
i . O . rgrgelse. Hence he can take
O i . O . rgrg
quick
O
a i a i a i a i
d a
d saaslala
decisions.
d ad saaslala d adsaaslala d a
d saaslala d a
d saasla
a
.P.Pa iii. Maintenance ofwSecrecy a
.P.Pa .P.Paa a
.P.Pa a
.P.Pa
wwww w w w w ww
w w www w ww
w
ww Since he/she manages w w all the affairs of the business, w w the secrecy can be maintainedw w easily w w
4. Give somerexamples
. O Ogrg of Sole trading business.
. O rgrg
O . O rgrg
O .O rgrg
O
l
asala ia i .
*Fruit sellers *Retail l
asal a ia
trade i . *Handicrafts l
asala ia
*Tailoring i . shops *Beauty l
asala ia i
parlour . asla
d a sa d a sa d a sa d a sa d a s a
a5.adDefine Sole trading business.
.P.P a ad
.P.P .P.P a ad .P.Pa ad a ad
.P.P
www “Sole proprietorship wwwis that form of businessworganisation ww which is ownedwand wwcontrolled by a single www
individual.rHe grgreceives all the profits.O and rgrrisks
g all of his property in.O.the rgrsuccess
g or failure of the rg g
l a ia. O
i . O l a ia i . O l a ia i O l a ia.Oi.Or
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d sas a l
enterprise”.
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d adsaasla
aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www wwww
ww ww ww ww ww
.O Ogrg
O .O Orgrg .O rgrg
O
aal li
D.C.RAJ
a a i . aa l alia i . aal alia i. aal a lia i . Page 2
ala
s aslaalia. i.O s as laalia. i.O s a slaalia. i.O s a s laalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww .P.P ww.P.P ww.P.P
w
ww w CHAPTER-5: www w w w
wwPadasalai www w www w
1. What is the meaning of Joint Hindu Family Business?
.O O grg
ror .O O rgand
rg work together, invest .O rgrgresources and labouri.jointly
O O rgrg
O
When l a i
atwoi . more families agreelato ia i.
live l a ia i .their l a a i .
d adand
l
saasashare profits or lossesdtogether,a
d
l
saasa then this family is d a
d
known
l
saasaas Composite family ordaHUF. d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
2. Write any 3 features of HUF.
i . O . rgrbyg Hindu Law:
O i . O . Orgrg i . O . rgrg
O i . O . rgrg
O
i. Governed
a la i a
lala i a i a i
d a
d saaslabusiness
The of the Joint d a
Hindu
d saasFamily is controlled andd a saaslalaunder the Hindu law.
managed
d d a
d saaslala d a
d saasla
a
.P.Pa ii. Minor also a co-parcener: a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
In a Joint Hindu Family firm even a new born baby can be a co-parcener.
i . O
iii. Management: . rgrg
O i . O . rgrg
O
l a l
asaHindua i l a
asaandl a i l a
asawho l a i asall a a i asla
d a sa
Joint Family are a sa
controlled
d managed by one d a sa
person is known as a
‘Karta’
d sa d a sa
a ad
.P.P a ad
P.P
.liability a ad
.P.P .P.Pa ad a ad
.P.P
w w w 3. Explain the nature
w w
ofw of karta. w w w w w w w w w
www www www www www
The members of the family have full faith and confidence in Karta. Only Karta is entitled to deal with
outsiders. .O O grg the Karta, the liability
rExcept .O Orofgrgall other members is limited. .O rgrgThe amount of debt can
O .O rgrg
O
be
l a ia i . l a ia i . l a ia i . l a ia i .
d a
drecovered
l
saasa from Karta personal d a
d
l
saaproperty
sa also. d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
P.P
.of aa
.P.P .P.Paa aa
.P.P
w ww
w 4. What is the meaning w ww
w Coparceners? w ww
w w ww
w w ww
w
ww ww ww ww ww
 In a Joint Hindu Family firm even a new born baby can be a co-parcener.
 i.O The
. rgrhead
O g of the family member
i .O . Orgisrg
called Karta. And other i .O . rgrg are called Coparceners.
O
members i .O . rgrg
O
d a
d
l
saasa Today Hindu succession d a
d saasAct l
a 2005 is applicable toaallsaamale
d d
l
sa and female members d a
d
l
saofasaaHUF. d a
d saasla
aa
.P.P .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w 5. Define Partnership. w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
According to Section 4 of the partnership Act, 1932. “Partnership is the relation between persons who
have agreedi . O . rgrtog share the profits of ia.O
O . Orgrg carried on by all ori.any
business O . rgofrgthem acting for all”. i.O.O
O rgrg
a i a i a i a i
d saaslalisathe minimum anddmaximum
6.daWhat a
d saaslala number of members d a
d
lapartnership concern?saslala
sainaslathe d a
d a d a
d saasla
a
.P.Pa Partnership is the outcome a
.P.Paof an agreement, thewminimum a
.P.Pa number of persons a
P.Pa to form a
.required a
.P.Pa
wwww w ww
w w w w w ww
w w ww
w
ww w w w w
partnership is two. Maximum is restricted to 10 in the case of banking business and to 20 in all other
w w w w
cases. i.O . rgrg
O i . O . rgrg
O
l a a i
asalis the meaning of Partnership l a a
asal Deed? i l
asal a a i asall a a i asla
d s
7. aWhat
a d a sa d a sa d a sa d a sa
a adPartnership agreement
.P.P a adnot necessarily be in .writing,
.P.need
P a adit is important to have
P.P .P.aP ad agreement
awritten a ad
.P.P
www in order to avoid
w
wwmisunderstandings; www to have a written agreement.
it is desirable www This agreement called www
as partnership
i .O . rgrgdeed.
O i .O . rgrg
O
8. aWho
d d
l
saasais called a Secret partner? d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a a A secret partner is one.P.whose
.P.P aa a ato the general public. Other
.P.P .P.Pathan
a this distinct aa
.P.P
w ww
w w ww P association is not
w w w
w
known
w w ww
w wwww
ww feature, he is like wwrest of the partners in all respects. ww ww ww
9. What isO
i . rgrg by Joint and Severali.Liability?
. imeant
O O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a l a a i l a a i l a a i
d a
d
Every l
saasa partner is jointly anddseverallya
d
l
saasa liable for all acts ofdthe a
d saafirm. l
sa It means that in case d a
d saasassets
the l
a are
d a
d saasla
a a inadequate for meeting
.P.P .P.Pa
thea claims of creditors, even a a personal properties should
.P.P
their .P.Pa a be made aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww available. The creditors ww can recover their claims ww from all the partners. ww ww
CHAPTER-6: rgrg rgrg rgrg rgrg
a i . O
i . O
a the advantages of Companies? a i . Oi . O a i . O
i . O a i . O
i . O
d d saaslalare
1. What
a d a
d saaslala (Any 3) d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa i. Large Capital: ww a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww w w w ww
w w ww
w wwww
ww A company can secure w w
w large capital comparedwto a sole trader or partnership. w w Large amount of capital isw w
necessary rfor
. O O grgconducting business on.OaO grg scale.
rlarge . O rgrg
O .O rgrg
O
l a ia i . l a ia i . l a ia i . l a ia i . asla
a
ii.
sa s al
aPerpetual Succession:
a saasal a sa asal a sa asal a s a
d
a adA company has perpetual dadcontinuous existence..P
a or d
a ad may go or new members d
a admay come in, d
a ad
w .P.P
w w .P.P
w w w
Members
.P w .P.P
w ww.P.P
w
www but the company w w
wwcontinues to exist. wwww w
www w
www
iii. Promotion rgrgof Saving and Investment rgHabit: rgrg rgrg
i . O
i . O i . Oi . O rg i .Oi . O i .Oi . O
Joint
saasal a l a
stock company system l al
encourages
saasa a people to save. Even
saasa l a l
smalla amount can be used for
saasa l a l
thea saasla
d a
d
a a purchase of shares. A.person d a
d
a a can buy even one share d a
d
aofaa company. aad a
d d
aa ad
ww.P.P wwP.P ww .P.P ww.P.P ww.P.P
w
ww w www w ww w w www w wwww
.O O grg
rMBA,M.Com,B.Ed .O Orgrg .O Orgrg .O rgrg
O
aal li
D.C.RAJ
a a i . aa l alia i . aa l a lia i. aa l a li
a i . Page 3
ala
s as laalia. i.O s as laalia. i.O s as laalia. i.O s aslaalia. i.O saasla
d
aa ad a aa d a
d a aad a
d a aad a
d a aad a
d
w
ww w 2. What is meant by
ww w w
Private Company? w w
wwPadasalai ww w w www w
 Private limited company is a type of company which is formed with minimum two shareholders
i .O . rgrg
O i .O . rgrg
O
l aand
a i two directors. l a a i l a a i l a a i
d ad
l
saasaArticles of association d a
d
l
saasa the right to transfer d a
d saashares
sa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P restricts aa
.P.P its
.P.Paa aa
.P.P
w ww
w  Maximum w
of w
w
200w persons can become w ww
w
shareholders in a private w ww
w
company. w ww
w
ww ww ww ww ww
 The name of private company should be suffixed with pvt ltd or (p) ltd.
ila.O .Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
alaThe i a
lala i a i a i
saaslala saaslala saasla
minimum requirement with respect to authorised or paid up capital of ₹1,00,000
d a
d sasa is meant by Government d a
d saasCompany? d a
d d a
d d a
d
a
3.
.P.Pa What a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww  These companies ww ww ww wbyw ww
wgovernment.
w wwww
ww ww are owned and managed ww the central or the state ww ww
 Section
i . O . rgrg617 of the Companiesi.Act,
O O . rg1956
O r g defines “Government
i . O . rCompanies”
O grg as any company in
i . O . rgrg
O
l
asal a a
which i not less than 51% of l
asal a
the a i
[paid-up share capital] is
asall a
helda i by. l
asala a i asla
a ad1. The Central Government;
.P.P a ador
.P.P a ad
.P.P .P.Pa ad a ad
.P.P
www 2. Any State Government www or Governments; w orww www www
3. partly by the Central Government and partly by one or more State Governments.
i .O . rgrg by Foreign Company?
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
4. What l a is
a i
meant l a a i l a a i l a a i
d a
d
l
saasaA foreign company means d a
d
l
saasaacompany which is incorporated d a
d
l
saasa in a country outside d a
d
l
saasaunder the d a
d saasla
aa
.P.P aa
.P.P aa
.P.P .P.Paa India aa
.P.P
w ww
w law of that w ww
w
country. w ww
w w ww
w w ww
w
ww ww ww ww ww
 After the establishment of business in India, the necessary documents must be filed with the
i .O . rgrg of Companies withini.30
O O . O grg
rdays i .O . rgrg
O i .O . rgrg
O
l a a i
Registrar l a a i from the date of establishment.
l a a i l a a i
d a
d saasa
CHAPTER-7:
l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P3)
.P .P.Paa aa
.P.P
w ww
w 1. What are the w ww
w
disadvantages of Co operatives ?w ww
w
(Any w ww
w w ww
w
ww ww ww ww ww
i. Limited funds
i . O . rgrg societies have limited
O i . O . rgrg
O i . O . rgby
O rg the weaker sections.i.The O . rgrg
O
a i
Co-operative a i membership and are promoted
a i a i
d a
d slala
saamembership fees d
collecteda
d
lala
saisaslow. d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa ii. Over reliance w a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww ww onwGovernment funds www ww w ww
w w ww
w
ww ww w w w w w
Co-operative societies are not able to raise their own resources. Their sources of financing are
limitedi . O . rgrgthey depend on government
O
and i . O . rgrgfunds.
O i . O . rgrg
O i . O . rgrg
O
l
aiii.al a i
aGovernment l
asal a a i asall a a i l
asala a i asla
d a sa s d a
intervention sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
P.P
.affects a ad
.P.P
w w w Co-operative w w w
societies are subject to excessive
w w w
government regulation w
which
w w their autonomy w w w
www www www www www
and flexibility.
2. Write a inote .O . rgon
O rgHousing cooperatives. i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d saaThese l
sa cooperative housing d a
d sa
societies
l
asa are meant to provide
d a
d
l
saasresidential
a accommodationd a
d
l
asatheir
sato d a
d saasla
aa
.P.P aa
.P.P aa
P.P
.who aa
.P.their
P aa
.P.P
w ww
w members on ownership w ww
w basis or on rent. People w ww
w intend to build houses w wof
w w own join w ww
w
ww ww ww ww ww
together and form housing societies. These societies advance loans to members, repayable over a
period i .O of
. rg15
O rgto 20 years. i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
a
3.dWhat
d
l
saasais meant by Producersdacooperative d saasa l society? d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P .P.Paa aa
.P.P
w ww  Producer w wcooperatives
w are established w wand
w operated by producers. w ww w ww
ww w w
ww can decide to work together w
ww or as separate entities w w w w
 Producers towhelp increase marketing w
. O O grg
rpossibilities and production . O rgrg
efficiency.
O . O rgrg
O . O rgrg
O
a i i .
a They are organizedstoasprocess, a i i .
lala market, and distribute a i i . a i i .
d a
d saaslal d a
d a d a
d saaslalatheir own products.dadsaaslala d a
d saasla
a
.P.Pa  This helps
a
.P.Pacosts and strains in each a
Pa with a mutual benefit
.P.area a a producer.
P.Peach
.to a
.P.Pa
wwww w wlessen
w w w ww
w w ww
w w ww
w
ww 4. Write a note on cooperativew w forming societies.w w w w w w
WhenO
i . . rgrg farmers in a villagei.pool
various
O O . rgtheir
O rg land together andi.agree O . rgrgto treat the pooled piece
O i .O . rgrg
of
O
l a a i
al as one big farm for the
aland l a a i
asal of cultivation, purchase l
asathea a i
l necessary inputs forsthe l al a i
asacultivation, asla
d a sa s d a sa purpose
d a sa d a a d a s a
a ad and market the crops
.P.P .P.P ad they are assumed to
ajointly, a adformed a cooperative.P
.P.have
P a ad society.
.P
farming a ad
.P.P
www 5. Write a note onwindustrial ww cooperatives. www www www
l a i
a . i.Ogrgprime objective ofla
OrThe
ia i . rgrg co operative is to ibenefit
an industrial
.O O l a a.Oi . rgrgthe workers socially and
O l a ia.Oi . rgrg
O
d a
d
l
saasa economically. dadsaasa l
d a
d saasa l
d a
d saasa l
d adsaasla
aa
.P.P  The industrial acoaoperative societies do play
.P.P aaacrucial role in local economic
.P.P .P.Pa a development aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww gainful employment. ww
through ww ww
.O O grg
O .O Orgrg .O rgrg
O
D.C.RAJ
aa l al i
a i . aa l alia i . aa l a lia i. aal alia i . Page 4
ala
s as laalia. i.O s a slaalia. i.O s aslaalia. i.O s aslaalia. i.O saasla
aad ad a aad a
d a aad ad a aad a
d a aad a
d
ww.P.P .P.P
windustrial
w .P.P
ware
w ww .P.P ww.P.P
w
ww w  The ww w
mini w estates in the w w
state
wwPadasalai administered by w w
industrial
ww co operative societies. wwww
CHAPTER-8:
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . Orgrg
1. What l a are
a i the advantages of MNC’s? l a a i l a a i l a a i
d ad saai.sa l
Low Cost Labour: d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P aa
.P aa
.P.P
w ww
w MNC set up w
theirwfacilities
w w in low cost w
countries wwwand produce goods/service w wwatw lower cost. wwww
ww ww ww ww ww
i . O . rgrgDevelopment
O i . O . rgrg
O i . O . rgrg
O i . O . Orgrg
ii.la i
Technical a i a i a i
d ad sala carry the advantages
saaMNCs d a
d
ala
saofasltechnical development d a
10
d
aslalacountries. Because ofaMNCs
sahost d d
a
saaslalpoor host d a
d saasla
a
.P.Pa countries also begin .Ptoa a a a a
.P.Pa a
.P.Pa
ww ww .Pdevelop w.P.P ww ww
ww
ww ww ww technically.ww
ww w wwww wwww
iii. Managerial Development
MNCs i . O . rgrg latest managementi.O
O
employ . rgrg
O
techniques. People employed i . O .
byrgMNCs
O rg do a lot of research i . O . Orgrg
in
l a
al a
amanagement. i asall a a i l al a i
asacountries. l
asala a i asla
d a sa s This leadsd a
to sa
managerial development d a
in sa
host d a sa d a sa
a ad
.P.P .P.Pa ad .P.P a ad .P.Pa ad a ad
.P.P
w w w 2. What are the w w
disadvantages
w of MNC’s? w w w w w w w ww
www www www www www
i. Danger for Domestic Industries
MNCs, i .O . rgrg of their vast economic
O
because i .O . rgpower,
O rg pose a danger toi.O . rgrg industries; which iare
O
domestic .O . O grgin
rstill
d ad saathe l
sa process of development. d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P.Paa aa
.P.P
w ww
w ii. Transfer of out w wdated
w w Technology w www w www wwww
ww ww ww
Where MNCs transfer out dated technology to host nation, it serves no purpose.
ww ww
iii. Noi .O . rgrg poor people:
benefit
O i .O . rgrg
O i .O . rgrg
O i .O . Orgrg
d ad saaMNCs l
sa produce only those d a
dthings, l
saasa which are used by the d ad a
l
asaTherefore, poor peopleasof
srich. d d a
l
ashost
a
d a
d saasla
a a countries do not get.Pgenerally
.P.P a a any benefit out of.P aa .P.Paa aa
.P.P
w ww
w w ww.P
w w w
.P
wwMNCs. w www wwww
ww CHAPTER-9:
ww ww ww ww
1. List the.O
i . rgrgwhere the state or central
areas
O i . O . rgrownership
O g is a preferred
i . O . rgrgof business
form
O i . O . Orgrg
a i a i a i a i
d d saaslala Justify your choice
organisation.
a d a
d saa
of la
slaareas. d ad saaslala d a
d saaslala d a
d saasla
a
.P.Pa  Most of w
a
Pa
.P.industrial a
.P.Pinaduring the period ofwpre a
Pa
.P.independence. a
.P.Pa
wwww w wthe
w progress was limited
w www w w w wwww
ww w
 Publicwsector industries were deliberately
w w set up in these backward
w w regions. ww
.O Ogrg employment to the
rProvide . O rgrg force and develop ancillary
work
O . O rgrgindustries.
O . O Orgrg
l a ia i .
asal  The government alocated l a ia i .
asal new enterprise in backward l a ia i
asal areas. . l
asala ia i . asla
d a sa d sa d a sa d a sa d a sa
a ad
.P.P .P.Pa ad .P.P a ad .P.Pa ad .P.Pa ad
w w w  Example: w w w
Bhilai Steel Plant in Madhya w w w
Pradesh w w w w ww
www 2. What are the different www kinds of organisationswthat wwcome under the publicwsector? ww www
i) Departmental
i .O . rgrg Undertaking i.O.O
O rgrg i .O . rgrg
O i .O . Orgrg
d ad
l
saasa  It is the oldest form d a
d saaof l
saorganization. d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P.Paa .P.Paa
w ww  No distinction
w ww was made between w thewroutine
w functions of the Government.
w ww w ww
ww w ww w ww w ww w ww w
 A public enterprise is run as a separate full-fledged ministry.
.O Ogrgexample, Indian Railways,
rFor .O rgPost
O rg and Telegraph services, .O rgrAllg India Radio, Doordarshan.
O .O Orgrg
d ad saaii) l
saPublic Corporation dadsaasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
P.P
.enterprise .Pan
.Paa .P.Paa .P.Paa
w ww
w It is form of public w ww
w which is created w wwasw autonomous unit, by w awspecial
w w Act of the wwww
ww Parliament. It w
wis created by a Statute. It iswalso w known as a statutory corporation. ww ww
Examples:
i . O . rgrgLife Insurance Corporation
O i . O . rgofrgIndia, the Indian Airlines,
O i . O . OgrgAir India International,.OO
rthe i . rgrg
ala i aslalaa i a i a i
d ad slaGovernment
saaiii) Companyas
d d a d ad saaslala d a
d saaslala d a
d saasla
a
.P.Pa “Any company inwwhich a
.P.Panot less than 51% of the a
.Pa share capital iswheld
.Ppaid-up .Pbya a Central
.Pthe a
.P.Pa
wwww w w w w www www www
w
ww Government or w w
wState Government or partlywby the Central Government w w and partly by State ww
Governments.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . Orgrg
l a
al a
aExamples: i aof l a a i
l ONGC.
aIndia, l
asala a i l
asala a i asla
d a sa s Food Corporation
d the names of some.Penterprises d a sa s d a sa d a sa d a s a
a3.aList
.P.P a ad under the public.Psector
.P .P a ad and classify them. .P.P a ad .P.Pa ad
www Departmental
w
wwUndertaking: www www www
l a ia . i.Ogrg Railway
OrIndian
l a ia.Oi . rgrg
O l a ia.Oi . rgrg
O l a ia.Oi . Orgrg
d ad
l
saasa  Tamil nadu Police d a
d saasa
Department l
d ad saasa l
d a
d saasa l
d adsaasla
a a Public Corporations:
.P.P .P.Paa .P.P aa .P.Paa .P.Paa
w ww
w w ww
w w www w www w ww
w
ww  FoodwCorporation
w of India (FCI) ww ww ww
.O Ogrg
O .O Orgrg .O Orgrg
D.C.RAJ
aa l alia i . aa l a lia i . aal alia i. aal alia i . Page 5
ala
s as laalia. i.O s a slaalia. i.O s as laalia. i.O s aslaalia. i.O saasla
aad ad a aad a
d a aa d a
d a aad ad a aad a
d
ww.P.P w .P.P
w ww .P.P ww.P.P ww.P.P
w
ww w  Tourismww w wCorporation of India w w
wwPadasalai www w ww w w
Government Company:
.O O grg
rCoal .O Orgrg .O Orgrg .O rgrg
O
l a i
a i . India Ltd l a ia i. l a ia i . l a ia i .
d ad
l
saasa  Steel Authority d of a
d saasaLtd
India
l
d a
d saasa l
d adsaasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa .P.Paa aa
.P.P
w ww
w 4. Define Departmental w wwundertakings.
w w ww
w w www w ww
w
ww ww ww ww ww
 It is the oldest form of organization.
. O rNo
O grg . O rgrg the routine functions
O . O Orgthe
rg Government. . O rgrg
O
a i  i . distinction was made a i i .
between a i i .of a i i .
d adsaaslala A public enterprise d a
d
lala
saisasrun as a separate d a
d
full-fledged
la
saaslaministry. d adsaaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww  For w w www
example, Indian Railways, Post w ww
w
and Telegraph services, All w www
India Radio, Doordarshan. w ww
w
ww w w w w w w w
5. What is meant by Government Company?
i . O . rgrg in which not less than
O i . O . O grg
r51% i . O . Orgrgis held by the Centrali.O.O rgrg
“Any
l a
al a
aGovernment i
company l a a i of the
asal or partly by the Central paid-up share
l a
al a i
capital
asGovernment l
asala a i asla
d a sa s or State d a sa
Government d a sa and partlyd a
bysa
State d a sa
a ad
.P.P a ad
.P.P a ad
.-PSection
.P .P.Pa ad a ad
.P.P
w w w Governments”www w w w 2(45) of the Companiesw w w Act, 2013 w w w
www Examples: Food
w
wwCorporation of India, ONGC. www www www
i . O . rgrg
O i . O . rgrg
O
d dsaasa
CHAPTER-10:
a
l
d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasla
a1.aMention the importance
.P.P a abanking services.
.P.P
of .P.Paa .P.Paa aa
.P.P
w ww
w w www w ww
w w www w ww
w
ww  Banking ww service is the nerve center ww of industry and commerce w inwa country. ww
 rItgrplays g a vital role by providing rgrthe
g money required for.O theirrgrgregular functioning and rgrg
l a ia. O
i . O l a ia. O
i . O l a ia i . O l a ia.Oi . O
d adsaasa l development.
d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasla
aa
.P.P  The word Bank, a anormally refers to commercial
.P.P .P.Pa a bank. .P.Paa aa
.P.P
w ww
w w www w ww
w w www w ww
w
ww  There ww are many types of banks rendering ww different types of services. ww ww
 rCentral grg Bank is the most important rgrg one among them. i.O.O rgrg rgrg
a i . O
i . O
a Stability and growthsaof a i . O
i . O a i a i . O
i . O
saaslal la country’s economy are
slathe lalamain goals of a Centralsbank.
saasthe aslala saasla
a d ad a d a
d a a d a
d a d ad a a d a
d
ww.P.Pa
2. Explain the origin of
w .P.Pa
RBI.
w ww .P.Pa ww.P.Pa ww.P.Pa
ww
ww  In 1926 ww ww the Royal Commission onwIndian ww w Currency and Finance w w
w w
made recommendation to w w
w w
create a central bank.
i . O . rgrg
O i . O . rgrg
O
asall a a i As a result, the RBI Act l
asal a a
1934 i was passed. RBI launched l
asal a a i
in operations from April l
1,
asala a i
1935. asla
a ad
.P.P  RBI was established a ad with a share capital.P
.P.P d
.a₹5a crores divided intowshares
ofP
.P.Paofad₹100 each fully a ad
.P.P
w w w w w w w w w w w w ww
www paidwup. ww www www www
 After independence, the Government of India passed Reserve Bank Act, 1948.
i .O . rgrg
O i .O . rgrg
O
l a a i From January 1, 1949,la RBI a i
started a
functioning as a government
l a i owned central bank l a a i
of India.
d adsaas a l
d a
d sa a s a l
d a
d sa as a l
d adsaas a l
d a
d saasla
aa
.P.P3. Who are the persons aa
involved
.P.P in RBI administration?
.P.Paa .P.Paa aa
.P.P
w ww
w The 21 member board w www
is appointed by the w
Government ww
w of India. It consists of; w www wwww
ww ww ww ww ww
a. One governor and four deputy governors appointed for a period of four years,
i .O . rgrg from various fields
O i .O . rgrg
O
b.la Tena i directors l a a i l a a i l a a i
d ad
l
saac.saTwo Government officials d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasla
aa
.P.P aa
.P.P
w ww
w d. Four directors w ww- w
one each from local w
boards.ww
w w www wwww
ww ww ww ww ww
CHAPTER-11:
a ia. O . rgrnote
O g on Local Area Banks,
i . O . O grg two examples.
rGive i . O . Orgrg i . O . rgrg
O
1. Writela i
short a
lala i a a i a i
d adsaasal Local Area Bankd(LAB) a
d saasscheme was introduced d bys
a
d a aslalRBI
the in August 1996. d adsaaslala d a
d saasla
a
.P.Pa a a
.P.Pprivate a
.P.Pa in rural and semi-urban .P.Pa a a
.P.Pa
wwww  LABs are ww wsmall
w sector banksw ww ww ww wwww
ww ww wwestablished
w ww areas.
ww
 Each bank serves two or three adjoining districts only.
 . O O grg main objective is to .mobilise
rTheir O rgrg rural savings (accepti.O
O Orgrg and invest them ini.O rgrg
O
l a ia i .
asal same areas. l
asal a ia i . l
asal a a i .
deposits)
l
asala a .
the
i asla
a ad
.P.P a ad
.P.P .P.Pa ad .P.Pa ad a ad
.P.P
w w w Examples: w w w w w w w w w w ww
www www www www www
i. Coastal Local Area Bank, Vijayawada, Andhra Pradesh.
i .O . rii.grKrishna
O g Bhima Smruddhi i .O rgrgArea Bank, Mahabubnagar,
O
Local
. i .O . OrgrgTelangana. i .O . rgrg
O
a
2.dWhat
d
l
saasaare the objectives involved d a
d saasin l
a Regional Rural Banks?asaasa
d d
l
d adsaasa l
d adsaasla
aa
.P.P aa
.P.P
w ww
w  Their objective w www is to develop rural economy w ww
w and play supplementary w wwwrole to cooperative wwww
ww ww
societies.
ww ww ww
.O O grg
O .O O rgrg .O rgrg
O
D.C.RAJ
aa l alia i . aa l a lia i . aa l alia i. aal alia i . Page 6
ala
s as laalia. i.O s as laalia. i.O s aslaalia. i.O s aslaalia. i.O saasla
aad ad a aad a
d a aad ad a aad a
d a aad a
d
ww.P.P ww .P.P w .P.P
w .P.P
wrural
w ww.P.P
w
ww w  They ww w w
mobilise deposits from the w
rural
ww wpublic and provide finance
wwwtow artisans, small www w
entrepreneurs and farmers and try toPadasalai avoid their dependency on money lenders.
.O O grg
rThe .O Orgthe
rg Regional Rural BankiAct .O Ogrg
r1976, .O rgrg
O
l a i
a i . RRBs were formedla i
under
a i. l a a i . jointly by the lalia i .
d ad
l
saasa Central Government, d a
d saasState l
a Government, and aasponsor
d d
l
saasa bank. d a
d saasa d a
d saasla
aa
.P.P .P.P aa .P.Paa .P.Paa aa
.P.P
w ww
w Examples: w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i. Pallavan Grama Bank, Salem,Tamil Nadu ii. Pandian Grama Bank,Thirumangalam, Madurai Dirstict,
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
Tamila i
Nadu a i a i a i
3.d a saaslalathe purposes of Agricultural
Mention
d d a
d saaslalaand Co-operative dbanks adsaaslala d a
d saaslala d a
d saasla
a
.P.Pa a a
.P.Pbanks .Pbya a
.Pits a
Pa are farmers,
.P.who a
.P.Pa
wwww  All cooperativewwww in India are owned wwww customers or members ww ww wwww
ww ww ww ww ww
small traders and others.
 . O r
O grg foremost objective is.Oproviding rgrg service to its members
O . O rgrfor
O g rural and agricultural . O rgrg
O
l a ia i . Their
asal development andanot l a ia i . l a ia i . l a ia i . asla
a sa sa al earning.
asprofit a saasal a sa asal a sa
d
a ad d
a ad d
a ad d
a ad d
a ad
w .P.P
w  They are w .Pup
w
set .P in towns and villages w .P.P
w
rather than cities. w w.P.P w .P.P
w
w
www wwww wwww w
www w
www
Examples:
.O
iii. Madurai
i . rgrgDistrict Central Cooperative
O i .O . rgrgBank Ltd.
O i .O . rgrg
O i .O . rgrg
O
d a
d
l
saav.saBatlagundu Cooperative d a
d Urban
l
saasa Bank Ltd. Dindigul District d adsaasa l
d a
d saasa l
d a
d saasla
aa
.P.P
w ww
w CHAPTER-12: w ww
w w ww
w w ww
w w ww
w
ww 1. What is E-Banking?
ww ww ww ww
Internet .O O grg refers to performing
rbanking .O rgbanking
O rg operations through .O Ogrg
rinternet, using computers .O andrgrg
O
d a
d saamobilel
sa phone. This can dbeaddone l
saasaby a customer from dhome ad
l
saasora office or any part ofdthe a
d saworld l
asa and all
d a
d saasla
a a 24 hours of 7 days..P.P
.P.P aa .P.Paa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww w
2. Write a short notewon - RTGS.
ww ww ww
 . O O grg - Real Time Gross Settlement
rRTGS . O rgrg Systems.
O . O rgrg
O . O rgrg
O
a i i .
a It was launched by sthe a i i .
la in 2013. The transactions a i i .
la settled on real time basis. a i i .
d a
d saaslal d a
d aaslaRBI
d adsaaslaare d a
d saaslala d a
d saasla
a
.P.Pa  RTGS facility
a a
.P.isPavailable between 9.00wam
a
Pa4.30 pm on weekdayswand
.P.to .P.Pa
upato 2.00 pm on
a
.P.Pa
wwww w ww
w w w w w w w w ww
w
ww w w
Saturdays. w w w w w w
OrGross
. O grg settlement means the . O O grg
rtransaction is settled between
. O rgone
O rg bank and another bank . O rgrg
O
l a ia i .
asal without adding any l a ia i .
asal transactions. l
asala ia i . l
asala ia i . asla
d a sa d a sother
a d a sa d a sa d a sa
a ad
.P.P  Minimumwlimit .P.P adRTGS transaction is 2.lakhs.
afor P.Pa ad .P.Pa ad a ad
.P.P
w w w w w w w w w w w w w w
www 3. Briefly explain the w
wwDiversified banking services wwofwcommercial banks. www www
l a ia i . Ogrg
 rCompetition
.O in the banking industry
l a ia.Oi . rgrg has reduced theiri.profits.
O l a a O
i . rgrg
O l a ia.Oi . rgrg
O
d a
d
l
saasa  Therefore the commercial d a
d
l
saasa banks started identifying d ad
l
saasaand offering new andddiversifieda
d saasa l
d a
d saasla
aa
.P.P financial w .P.P aa
services. .P.Paa .P.Paa aa
.P.P
w ww
w w w w w ww
w w ww
w w ww
w
ww  Theyware w purely other than banking wwservices. Providing all suchwbanking w and other financial ww
. O O grg is also called universal

rservices . O rgrbanking.
O g Such services are ras
. O Ogrfollows:
g .O rgrg
O
d a
d saasa l 1. Bank Assurance
d a
d saasa l
2. Merchant Banking
d adsaasa
3. l
Retail Banking (Personal
d a
d saasa
Banking) l
d a
d saasla
aa
.P.P aa aa aa aa
w ww
w w wwP.P
4. Housing .Finance
w
5. Mutual Fund .P.P
w ww
w w ww
w
.P.P
w ww
w
.P.P
ww 4. Explain - NEFT. ww ww ww ww
 rThis grgwas launched by the .RBI ringrg2005. rgrg rgrg
a i . O
i . O
a Under this electronic a i O
i . O
lala transfer system, bulkstransfer a i . O
i . O a i . O
i . O
a saaslal a saasfunds a aaslala of transactions areassettled a aslalain a saasla
a d d a d d a d d a d d a d d
ww.P.Pa batches during
ww
a
.P.Pspecific timings across India.
ww .P.Pa ww .P.Pa ww.P.Pa
ww
ww  Transactionsww ww do not occur under w w
w
real w
time basis. w w
w w w w
w w
 rOnce grg in every half hour from 8.00
rgrg am to 7.30 pm. 23 settlements
rgrg are allowed in a day. rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia.Oi . O
a saasal  NEFT transfers are
a saasal
not allowed on Sundays and
a saasal
bank holidays.
a sa asal a s aasla
d d do you mean by .Core
a5.aWhat d d
a aBanking Solutions? d
a ad d
a ad d
a ad
w .P.P
w w wP.P w .P.P
w w w.P.P ww.P.P
w
www  ‘CORE’ w w for ‘Centralized Online
wwstands wwww Real time Exchange’. www w w
www
 Ingthe centralized server of thegbank, all the details of all the
i . O . r rg
O i . O . r rg
O i . O . rgraccounts
O g of all the branchesgof
i .O . r rg
O
saasla
l the bank are available. l l l
d a
d saasa d a
d saasa d adsaasa d a
d saasa d ad
aa  A customer can aa withdraw money through aa
cheque at any branch of that aa
bank throughout the aa
ww.P.P ww .P.P ww .P.P ww .P.P ww.P.P
w
ww w world.
ww w w
Similarly anyone can deposit ww w w
money into the account. www w wwww
.O O grg
O .O Orgrg .O rgrg
O
D.C.RAJ
aa l alia i . aa l a lia i . aal alia i. aal alia i . Page 7
ala
s as laalia. i.O s aslaalia. i.O s as laalia. i.O s aslaalia. i.O saasla
aad a
d a aad a
d a aa d ad a aad a
d a aad a
d
ww.P.P ww .P.P .P.P
wthe
w .P.P
wbank
w ww.P.P
w
ww w  Entry ww w
of wthe transactions is recorded ww ww
in centralized server of
ww w w
the in real time and www w
can be seen in all the branches of thePadasalai bank. This facility is called core banking solutions.
i .O . rgrg
O i .O . rgrg
O
CHAPTER-13:
d a
d saa1. l
saDifferentiate the warehouse d a
d
l
saasawarrant from the warehouse d ad
l
saasa receipt. d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.Paa .P.Paa aa
.P.P
w ww
w SL.NO Warehousew www Warrant wwww Warehouse Receipt w ww
w w ww
w
ww ww ww ww ww
1 It is a document of title of goods It is not a document of title of goods
2 i.O . rItgrcan
O g be negotiated or transferred
i . O . rgrg to
O It cannot be i . O rgrg
O
transferred
. to others i . O . rgrg
O
a i a i a i a i
d a
d saaslala others. d a
d saaslala d ad saaslala d a
d saaslala d a
d saasla
a
.P.Pa 3 It can bewgiven a
.P.Paacollateral security forww a
.P.PItacannot be given as collateral a
.P.Pasecurity. a
.P.Pa
wwww w w w ww w ww
w w ww
w
ww w
getting wfinancial assistance w w w w w w
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asal
2. Comment a a i on cold storage l
asala
warehouse. a i l
asal a a i l
asala a i asla
a ad
.P.P  Goods are transported .P.Pa ad in refrigerated containers .P.Pa ad and stored in refrigerated .P.Pa adwarehouses. a ad
.P.P
www  These ww w
warehouses are used for storing wwwperishable goods like fruits, wwwvegetables, eggs, butter,www
i . O . rfish,
O grgmeat, etc.
i .O . rgrg
O i O . rgrg
O
.quality, i .O . rgrg
O
l a a i l a a i l a a i l a a i
saasla
l Goods stored in cold storages
l without deterioration in
l can be made available
l
d a
d saasa d a
d saasa d ad saasa d a
d saasa d a
d
aa
.P.P throughout P a ayear.
. the
.P .P.Paa .P.Paa aa
.P.P
w ww
w w www wwww w ww
w w ww
w
ww CHAPTER-14: ww ww ww ww
1. What is bill of lading?
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i Bill of Lading is a document l a a i containing the terms and l a i
conditions
a of the contract of l a i
carriage.
a
d a
d
l
saasa  It is issued by the d a
d
l
saasa company and signed d ad aasa
sby l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa shipping
.P.Paa the captain of the aa
ship.
.P.P aa
.P.P
w ww
w  It w www
acknowledges the receipt of the wwww
goods described in it on board w ww
w
the ship. w ww
w
ww ww ww ww ww
 It also serves as an official receipt of goods.
i
 . O . rItgrisga document of title ofi.O
O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i
goods. a i a i
d
2.a
d saaslalisacharter party? dadsaaslala
What d ad saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
Pato be consigned in large
.P.are a
.Pa it is advantageous
.Pquantity, .P a
.Pa a
.P.Pa
wwww  When w www
goods wwww wwww to hire the whole or www ww
ww ww ww ww w
substantial part of the ship.
 . O O grgdocument through which
rThe . O rgthis
O rg contract is made is iknown . O rgrgas ‘Charter Party’ mayi.also
O O rgbe
O rg
l a ia i .
asal known as ‘VoyageaCharter’ l a ia i .
asal or ‘Time Charter’. asaasal l a a i . l
asala a i . asla
d a sa d sa d d a sa d a sa
a ad
.P.P .P a ad
.P P.P
.as a ad .P.Pa ad a ad
.P.P
w w w  The w
personw wwho hires the ship is w
knownw w ‘Charter’. w w w w w w
www www www www www
CHAPTER-15:
.O
1. Define
i . rgInsurance.
O rg i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d sa l
saa“Insurance a
is a plan by themselves
d d
l
saasa which large number d adof
l
saaspeople
a associate and transfer
d a
d saasto l
a the
d a
d saasla
aa
.P.P aa
.Pthat
.P .P.Paa .P.Paa aa
.P.P
w ww
w shoulders of all, w www
risk attacks to individuals” wwww w ww
w w ww
w
ww ww ww ww ww
- According to John Merge
2. Give
i .O . rgrgmeaning of crop insurance
O
the i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d
l
saasa This policy is to dprovide a
d
l
saasafinancial support to farmers d ad
l
saasain case of a crop failure d a
ddue
l
saasato drought d a
d saasla
aa
.P.P aa
.Pcovers
.P .P.Paa P.P
.of aa aa
.P.P
w ww
w or flood. It generally w www all risks of loss or wwww
damages relating to production w ww
w rice, wheat, millets, www
w
ww ww
oil seeds and pulses etc.
ww ww ww
3. Write
i . O . ragrnote
O g on IRDAI
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i
a IRDAI – Insurance Regulatory a i a i a i
d a
d saaslal d a
d saaslala Development and d ad aaslala of India is the statutory,
sAuthority d a
d saaslala d a
d saasla
a
.P.Pa a
Pa apex body that governs,
.P.and a
Pa
.P.regulates .P.Pa a a
.P.Pa
wwww independent
w www wwww and superviseswthe
w w w Insurance Industry in ww
w w
ww w
India. w
w w w w w w

i . O . rItgrwas
O g constituted in the year
i . O . O grg by Parliament of India
r2000 i . O . O grgcalled IRDAI Act, 1999..OO
rAct i . rgrg
l a a i
asal Presently IRDAI headquarters l a a i
asal is in Hyderabad.asaasal l a a i l
asala a i asla
d a sa d a sa d d a sa d a s a
ad
aCHAPTER-16:
.P.P .P.Pa ad .P.Pa ad .P.Pa ad a ad
.P.P
www 1. What are the types wwwof franchising? www www www
a) Product/
i .O . rgrgtrade name franchising:
O i .O . rIngrthis
O g type, the franchisee.Oexclusively
i . rgrg deals with a i.O.O
O rgrg
d a
d sa l
saamanufacture’s d a
d
l
saasa include Kidzee, French
product. Examples
d ad
l
asa outlets, Bharat Petroleum
saLoaf d a
d saasa l
d adsaasla
a a bunks,Patanjali products,
.P.P .P.Pa a etc. .P.Paa .P.Paa aa
.P.P
w ww
w w www wwww w ww
w wwww
ww ww ww ww ww
.O O grg
O .O Orgrg .O rgrg
O
aa l li
D.C.RAJ
a a i . aal alia i . aa l alia i. aal alia i . Page 8
ala
s a slaalia. i.O s as laalia. i.O s as laalia. i.O s as laalia. i.O saasla
d
aa ad a aa d a
d a aad ad a aa d a
d a aad a
d
w
ww w b) Business www w
format franchising: When a w w
franchisor
ww awards rights covering
www wall business aspects as a wwww
complete business package to the franchiseePadasalai it is called as business format franchising. Examples are
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a i
McDonald’s,Pizza
a Hut. KFC, Hotlabreads,etc.,
a i l a a i l a a i
d a
2.d saasthe
List
l
a steps in factoring process.
d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.P aa P.P
.withaa .P.Paa aa
.P.P
w ww
w a) The firm w
enterswinto
w w a factoring arrangement w ww
w a factor, which is w www
generally a financial wwww
ww ww ww ww ww
institution, for invoice purchasing
i . O . rgrg goods are sold on credit
O i . O . rgbasis,
O rg an invoice is raisedi.O . rgragcopy of the same is sent
O i . O . rgrthe
O g
b)la a i
Whenever l a a i l a a i
and l a a i to
d a
d
a sa
safactor.l
d a
d
a
sasa l
d ad
a
sasa l
d a
d
a
sasa l
d a
d saasla
a
.P.Pa c) The debt amount a
.Pato the firm is transferred
.Pdue a a
.P.toPthe a
.P.Pa and the same is ww a
.PPa
ww
ww
ww
wwww ww
wwwwww
wwww
factor through assignment ww
wwww .
intimated to the customer.
d) aOn i . O .
the rgrdue
O g date, the amount is.O
i . rgrg by the factor fromi.the
O
collected O . rg
O rg
customer. i . O . rgrg
O
ae)l l a
aAfter i l a a i
al the remaining amount
asfees, l a a i
al to the firm by the factor
assent l
asal a a i asla
d a sa s retaining the a
service
d sa d a sa is d a sa d a sa
a ad
.P.P .P .Pa ad .P.P a ad .P.Pa ad a ad
.P.P
w w w 3. Describe the w
benefits
w w of Logistics. w w w w w w w ww
www www www www www
 Cost savings by centralized inventory management
 .O O grg
rDecrease in Costly Errorsi.O rgrg
O .O rgrg
O .O rgrg
O
l a ia i . l a a i . l a ia i . l a ia i .
d a
d
l
saasa  Inventory Management d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.P aa .P.P aa .P.Paa aa
.P.P
w ww
w  Increased w wCustomer
w w Service w ww
w w www wwww
ww ww
 Organizational control
ww ww ww
 .O O grg
rScalability and speed. i.O rgrg
O .O rgrg
O .O rgrg
O
l a ia i . l a a i . l a ia i . l a ia i .
d d
l
saasa the points of differences
4.aExplain d a
d
l
saasabetween Logistics anddaSupply d
l
saasa Chain Management.dadsaasa l
d a
d saasla
aa
.P.P .P.P aa .P aa
.P .P.Paa aa
.P.P
w ww
w SL.NO Logistics w wManagement
w w w ww
w Supply Chain Management w www wwww
ww 1 wwwith the efficient
It deals ww It tries to identify thewdynamic w ww
. O O grg
rmanagement of a static gap rbetween
. O Ogrg nature of the value
. O rgrcreation
O g itself such
. O rgrg
O
a i i . a i i . a i i . a i i .
d a
d saaslala Demand and supply. d a
d saaslala d d saaslala quality and design.
as responsiveness,
a d a
d saaslala d a
d saasla
a
.P.Pa 2 LM activity
.P.Pa
is asupply driven
.P.Paa
SCM is more demand driven a
.P.Pa a
.P.Pa
wwww 3 ww
It focus ww
on cost minimization ww wwww SCM focuses on profitwmaximization w www wwww
ww ww w ww
i . O . rgimpact
O rg of e-commercei.on O . rgrg
O i . O . rgrg
O i . O . rgrg
O
5. Whatais
l a i
the
asal They could buy the l
asal a a i buyers?
l a a i
asal from anywhere in world l
asal a a i asla
d a sa d a saproducts/services round d a
the saclock d a sa d a sa
a ad
.P.P .P.P a ad a ad
.beP.P P.Pa ad
.after .P.Pa ad
w w w  w
Electronic w w
and software products w w
could w downloaded immediately w w w purchase through w ww
www www www www www
e – commerce mode
 .O O grg
rIndividuals .O rgrg
O .O rgrg mode with relativei.ease.
O O rgrg
O
l a ia i . could sell their
l a ia i .
used products through e – commerce
l a ia i . l a a i .
d a
d
l
saasa  Customers couldda participate
d
l
saasa in e Auction in adfree ad saasand l
a fair manner.
d a
d saasa l
d a
d saasla
aa
.P.P .P.P aa .P.P aa .P.Paa .P.Paa
w ww
w CHAPTER-17: w ww
w w ww
w w www wwww
ww ww ww ww ww
1. Define the Concept of Social Responsibility?
“Sociali .O . rgrg
O
Responsibility refers to the i .O rgrg to pursue those ipolicies
O
obligation
. .O . rgrgto make those decisions
O i .O . rgrtog
O
or
d a
d saafollowl
sa those lines of action d a
d sawhich l
asa are desirable in termsasaofasobjectives
d d
a l and values of d a
our
d
l
saassociety.”
a
d a
d saasla
aa
.P.P .P.P aa .P.P aa .P.Paa .P.Paa
w ww
w w ww
w w ww
w w www
– Howard R. wwww
ww ww
2. Why you do think Social Responsibility of business is needed?
ww ww ww
i . O . rgrg
1. Self-Interest:
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a la i a i
lalamarket for a longer period a i
la by assuming some social a i
d a
d saaAslabusiness unit can sustain d a
d sin
a asthe
d ad saaslaonly d a
d saaslala d a
d saasla
a
.P.Pa obligations. ww .P.Paa .P.Paa a
.P.Pa a
.P.Pa
wwww w w w ww
w w www www
w
ww 2. Creation of w
w Society:
w w w w ww
Business
i . O . rgisrga creation of society and
O i . O . rgrgthe resources of society.
uses
O i . O . Ogrg
rTherefore, it should fulfil .its
i O . rgrg
O
l a
al a
aobligationsi l
asal a a i l
asal a a i l
asal a a i asla
d a sa s to society. as
d a d a sa d a sa d a s a
a ad 3. Image in the Society
.P.P .P.P a ad .P.P a ad .P.Pa ad .P.Pa ad
www A business can
w
wwimprove its image in publicwby wwassuming social obligations.
w obligations improvewww
wwSocial
the confidence
i .O . rgrg and faith of people
O i .O inragrbusiness
. Og enterprise.
i .O . rgrg
O i .O . rgrg
O
3.aWhat
d d
l
saasa are the benefits derived d a
d saaby l
saemployees of a Socially d ad
asa l
saResponsible business enterprise?
d a
d saasa l
d adsaasla
a a a. Timely and regular
.P.P aa
.P.payment
P of wages and salaries. .P.P aa .P.Paa .P.Paa
w ww
w w ww
w w ww
w w www w ww
w
ww b. Proper working ww conditions and welfarewamenities. w ww ww
.O O grg
O .O Orgrg .O rgrg
O
D.C.RAJ
aa l a lia i . aa l alia i . aa l alia i. aa l alia i . Page 9
ala
d
aa ad a aad a
d a aa d a
d a aa d a
d a aad a
d
ww.P.P .P.P
wbetter
w ww.P.P ww.P.P ww.P.P
w
ww w c. Opportunity www w
for career prospects. w w
wwPadasalai ww w w www w
e. Better living conditions like housing, transport, canteen, crèches etc.
i .O . rgtraining
O rg and development. i .O . O rgrg i .O . rgrg
O i .O . rgrg
O
f. lTimely
a a i l a a i l a a i l a a i
d a
4.d saasa
Enumerate
l
the points d a
d
relating
saato l
sawhy business units are d a
dSocially
l
saasa Responsible? dadsaasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.marketing
P .P.Paa aa
.P.P
w ww
w  Every w ww
w
business depends on the w
societywfor
w w its goods w
and wservices,
w w therefore every w ww
w
ww ww ww ww ww
business has a moral responsibility to contribute for the welfare of the society.

i . O . rBygrgserving the social needs
O i . O . Orgrg a business can improve i . O . rgrgits public image. i.O.O
O rgrg
a a i a a ivoluntarily a i
ala is a danger of nationalisation a i
d a
d saaslal If a businessfail dtoa
d saaslalthe
serve interest of the d a saaslthere
society,
d d a
d saaslala of d a
d saasla
a
.P.Pa a a a
.P.Pa a
.P.Pa a
.P.Pa
ww w.P.P by the government. ww ww ww
ww
ww wwww
privatewundertaking
ww ww ww ww wwww
5. List the kinds of Social Responsibility.
1. a i . O
Economic. rgrgResponsibility: produce
O i . O . O grg and services that society
rgoods i . O . rgrgwants and sell them ati.O
O rgrg
O
ai.profit.
a2. l l a
aLegal i l a
al a
asbusiness i l a a i
astoaloperate within the laws l a a
al land.
asthe asla
d a sa s Responsibility: d a s
Everya has a a s
responsibility
d a d a sa
of d a sa
a ad
.P.P .P.Pa ad a ad
.P.P .P.Pa ad a ad
.P.P
w w w 3. Ethical w w w
Responsibility: This includes the w w
behaviour
w of the firm that is w w
expected
w by society but not w w w
www www www www www
codified in law.
.O rgrg Responsibility: voluntary
O
4. Discretionary
i . i .O . Orgrg obligation that an enterprise
i .O . rgrg assumes, for instance,
O i .O . rgrg
O
d a
d sa l
saaproviding a
charitable contributions
d d
l
saasa to educational institutions d a
d
l
saasaor helping the affected d a
d people
l
saasa during d a
d saasla
aa
.P.P .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w floods or earthquakes. w ww
w w ww
w w ww
w w ww
w
ww CHAPTER-18:
ww ww ww ww
O
1. Definei.business . rgrg ethics.
O i .O . rgrg
O
d a
d sa l
saa‘Business houses need to d gos
a
d aa
beyondl
sa the interests of dtheir a
d
l
saacompanies
sa d a
to the communities
d
l
saasathey serve.’ d a
d saasla
aa
.P.P .P.Paa a a -Ratan Tata
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ‘A business that
wwis in the making of only money ww is a poor kind of business.’ ww ww
i . O . rgrg
O i . O . Orgrg -Hendry
i . O . rgrg
Ford
O i . O . rgrg
O
a i
a you mean by the concept a i a i a i
d d saaslaldo
2.aWhat
d a
d saaslalaof business ethics?dadsaaslala d a
d saaslala d a
d saasla
a
.P.Pa Business ethics may .Pbea a
.Pdefined as a set of moral .P a
.Pa to be followedwby
standards
a
P.Pa managers and ww
.owners, a
.P.Pa
wwww w ww
w w ww
w ww
w w w
ww business people. w w w
w These standards determinewthe conduct and behaviourwof business people. Businessw w
ethicsO
i . . rgrg the conduct in theicontext
reflects
O . O . Orgrgof business. i . O . rgrg
O i . O . rgrg
O
l a a i
asaisl ethics necessary in business? l
asal a a i l
asal a a i l
asala a i asla
d s
3.aWhy
a ad
.P.P  All business a adhave realised that ethics
.Punits
.P aa
.P.P
is
d
vitally important for the P.Pa ad and progress
.existence a ad
.P.P
www of theww w
business as well as the society. www www www
 rItgrisgvery important as it improves rgrg public image, earns ipublic rgrconfidence,
g and leads to greater rgrg
l a ia.Oi . O l a ia.Oi . O l a a.Oi . O l a ia.O i . O
d a
d
l
saasa success. d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P  Ethics and .P.Pa a go together in the long.Prun. aa P.Palife,
a standard of aa
.P.P
w ww
w w ww
w
profits
w ww.P It enhances the quality
w w ww
w
.of
w ww
w
ww livingwand
w business. ww ww ww
4. What are the
i . O . rgrgbenefit of Corporate iGovernance
O . O . Orgrg to Share holdersi.O.O rgrg i .O . rgrg
O
d a
d saasa l 1. Good corporate
d a
d saasa l
governance enables corporate
d a
d saasa l
success and economic saasa
development.
d a
d
l
d a
d saasla
aa
.P.P .P.P
2. Ensures stablea agrowth of organizations. aa
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww the cost of capital for w
3. Reduces w
companies. ww ww
i . O . r4.grHas
O g a positive impact on.Othe
i . Orgrshare
g price
i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala 5. Improves thedimage a
d saaslaoflathe company. d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa5. Illustrate with example .P.Pa
thea working of a MNC .P.Pa a a
.P.Pa a
.P.Pa
wwww w ww
w w ww
w w ww
w w ww
w
ww  Indiawranks w 10th in the world in w w
factory output w w w w
 rThe grg manufacturing sector accounts
rgrg for 27.6% GDP rgrg rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia.O i . O
a saasal  India stands 15th in
a saasal
services output
a saasal a saasal a s aasla
d
a ad  India has become d
a adbig employment generator d d
a aespecially amongst young dad
agraduates. d
a ad
w .P.P
w w .P.P
w w .P.P
w w .P.P
w ww.P.P
w
www  Example: w
wwwIBM, Microsoft, Pepsi Co, ww w w
Sony wwww w
www
CHAPTER-19: g
i O r rg
O
.Business
. i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
saasla
1. Define l finance. l l l
d a
d saasa d a
d saasa d a
d saasa d a
d saasa d ad
aa
.P.P “The finance function
.P.Paa
is the process of acquiring aa
and
.P.P utilizing funds by a aa
business.”
.P.P aa
.P.P
w ww
w w ww
w w ww
w w
– ww
w
R.C. Osborn wwww
ww ww ww ww ww
.O O grg
rMBA,M.Com,B.Ed .O Orgrg .O Orgrg .O rgrg10
O
D.C.RAJ
aa l alia i . aa l alia i . aa l a lia i. aal alia i .
Page
ala
s aslaalia. i.O s as laalia. i.O s as laalia. i.O s aslaalia. i.O saasla
aad a
d a aad a
d a aad ad a aad a
d a aad a
d
ww.P.P ww.P.P ww .P.P ww.P.P ww.P.P
w
ww w www w w w
2. What is pledge?
i
 .O . rAgrcustomer
O g
i .O . rgrg of an article withithe
O .O . O grg
rcreditor i .O . rgrg
O
l a a i transfers thel a a i
possession l a a i (banker) and receives
l a a i
d a
d
l
saasa loan. d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
P.P
.under .P.Paa aa
.P.P
w ww
w  Till thew www
repayment of loan, the w
article w
wis w the custody of thew www
borrower. w ww
w
ww ww ww ww ww
 If the debtor fails to refund the loan, creditor (banker) will auction the article pawned and
. O O grg
radjust . O rgrgthe sale proceeds. i.O.O
O rgrg . O rgrg
O
a i i . the outstanding i
loan
a i .from a i a i i .
a ala of raising long-term
saaslsources a saaslaandla
a saaslala a saaslala a saasla
a d3.
d List a d d short-term finance.
a d d a d d a d d
ww.P.Pa ww P.Pa
.Finance ww .P.Pa Short Term Finance ww.P.Pa ww.P.Pa
ww
ww ww
Long Term
ww ww ww wwww wwww
i)Shares i). Loans and Advances
. O r
O gr g . O r
O gr g . O rgrg
O . O rgrg
O
l a ia i . ii)Debentures
asal iii) Retained Earnings l
asal a ia i . ii). Bank
l ali
asaCleana i .Overdraft
l
asala ia i . asla
d a sa d a sa d a sa
iii). Loan d a sa d a sa
a ad
.P.P .P.Pa ad .P.Pa ad .P.Pa ad a ad
.P.P
w w w iv) Public
w w w
Deposits w w w iv). Trade Credit w w w w w w
www www www www www
v)Long term loan from commercial banks v). Pledge
4. For which .O O grg fixed capital is needed
rpurpose .O rgrgin business?
O .O rgrg
O .O rgrg
O
d a
d
l
saasa  “Finance is the lifeblood d a
d
l
saasa of any business.” dadsaasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.requirements
P .P.Paa .P.Paa aa
.P.P
w ww
w  Fixed capital w www w ww
include purchase
w of plant, machinery,wfurniture, www fixtures, vehicles, ww ww
ww ww
and so on
ww ww ww
 .O O grgthe acquisition of intangible
rFor .O rgrgassets such as goodwill,
O .O rgrg trademarks, and copy
patents,
O .O rgrg
O
d a
d
l
saasa rights. d a
d saasa l
d ad saasa l
d a
d saasa l
d a
d saasla
a a5. What do you mean by.Pworking
.P.P a a capital requirement a abusiness?
.P.of .P.Paa aa
.P.P
w ww
w w www.P w ww
w
P
w www w ww
w
ww  “Finance
ww is the lifeblood of any business.” ww ww ww
 . O O grg capital requirements
rWorking . O rginclude
O rg purchase of rawi.materials, O rgrg payment of salaryi.and
O O rgrg
O
a i i . a i i . a i . a i .
d a
d saaslala wages, incurringdoperating a
d saaslala expenses like telephone d ad
la carriage inward andsoutward,
saaslabills, d a
d aaslala
d a
d saasla
a
.P.Pa electricity
a
.P.Pa premium, stationery, .P a
.Pa a
.P.Pa a
.P.Pa
wwww w wwcharges,
w w ww
w
etc.
w www w ww
w
ww CHAPTER-20: ww w w w w w w
1. Explain the
. O O grg
rimportance of international
. O O grg
rfinance. . O rgrg
O . O rgrg
O
l a ia i .
asal International finance l a ia i . l a ia i . l a ia i . asla
a sa a sa al in calculating exchange
ashelps a sa al of various currencies
asrates a saof l
asanations and a sa
d
a ad d
a adof each and every nation d d thereof.
ainaterms d
a ad d
a ad
w .P.P
w the relative
w .P
w .P
worth w .P.P
w w .P.P
w ww.P.P
w
www  It helps
w
wwinwcomparing the inflationwrates w
ww and getting an idea about w
www investing in internationalww
ww
.O O grg securities.
rdebt .O rgrg
O .O rgrg
O .O rgrg
O
d a
d
l
saasa  It helps in ascertaining d a
d
l
saasathe economic status ofdad l
saasvarious
the a countries and in judging
d a
d
l
saasa the d a
d saasla
aa
.P.P .P.P
foreign market. aa .P.Paa .P.Paa aa
.P.P
w ww
w w www w ww
w w www wwww
ww 2. What are Foreign wwCurrency Convertible Bonds? ww ww ww
. O grg convertible bond.O
Foreign rcurrency
O is ragspecial
O rg type of bond issued . O ringrg
O
the currency other than the
.O rgrg
O
d a
d saasa
homel currency. In other
d a
d saasa
words, l
companies issue foreign
d ad saasa l
currency convertible bonds
d a
d saasa
to l
raise money
d a
d saasla
a a in foreign currency..P.P
.P.P
w ww
w w www w ww
w w www wwww
ww 3. Explain any three wwdisadvantages of FDI ww ww ww
1. Exploiting
i . O . rgrg Natural Resources: iThe
O . O . O grgCompanies deplete natural
rFDI i . O . rgrresources
O g like water, forest,
i . O . rgrg
O
a i a i a i a i
d a
d slala etc.
saamines d a
d saaslala d a
d saasla
a
.P.Pa 2. Exploiting Cheap .P a
.Pa Foreign enterprises
Labour: a
P.Pa cheap labour forcewatw
.employ a a pay in
.PaPlower a
.P.Pa
ww
ww
ww
ww
developing countries. ww ww
ww wwww
wwww . wwwwww
3. Not Transferring
rgrg Technology: Some rgrforeign
g enterprises do notrtransfer grg the technology to.OO rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia i .
a saasal
developing countries. They
a saasal
mostly transfer second hand
a sa asal
technology to the host country.
a saasal a s aasla
d d any three features
a4.aState d d
a aADR. d
a ad d
a ad d
a ad
w .P.P
w w .P.of
w P w .P.P
w w .P.P
w ww.P.P
w
www w w denominated only in w
wware
1. ADRs w w
USwdollars. w
www w
www
i . O . r2.grThey
O g are issued only to.investors
i O . rgrg who are Americani.residents.
O O . rgrg
O i .O . rgrg
O
saasla
l 3. The depository bank should
l be located in US. l l
d a
d saasa d a
d saasa d ad saasa d a
d saasa d ad
aa
.P.P
w ww
w w www w ww
w w www wwww
ww ww ww ww ww
.O O grg
O .O Orgrg .O rgrg11
O
aal li
D.C.RAJ
a a i . aa l a lia i . aa l alia i. aal alia i .
Page
ala
s as laalia. i.O s as laalia. i.O s aslaalia. i.O s aslaalia. i.O saasla
aad ad a aa d ad a aa d a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww .P.P ww .P.P ww.P.P
w
ww w 5. State any three w w
features
ww of GDR. w w
wwPadasalai www w wwww
1. It is a negotiable instrument and can be traded freely like any other security.
.O O grg
rare .O Orgthe
rg country. It is denominated .O rgrgin any acceptable freely
O .O rgrg
O
2.la i
GDRs
a i . issued to investorsla i
across
a i. l a ia i . l a ia i .
d ad sa l
saaconvertible currency. d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.Paa .P.P aa aa
.P.P
w ww
w 3. GDR is w ww
w
denominated in any foreign w
currency wwbut
w the underlying shares w ww
w
would be denominated in wwww
ww ww ww ww ww
local currency of the issuer.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
CHAPTER-21: ala i a
lala i a i a i
d ad slaState
saa1. the investment d a saasfor
limit
d medium enterprise d a saaslalain Manufacturing and
engaged
d d a
d
aslala sector.
saservice d a
d saasla
a
.P.Pa Enterprise a
.Pa
.PManufacturing a
.P.Pa Service sector ww .PPa a a
.P.Pa
ww
ww
ww
ww wwww sector wwww ww
wwww . wwwwww
Medium More than 5 Crores but not More than Rs 2 crores but not exceeding Rs
enterprises
. O r
O gr g exceeding Rs 10
. O r gr g
crores
O 5 crores . O rgrg
O . O rgrg
O
l
asal a ia i . l
asal a ia i . l
asala ia i . l
asala ia i . asla
adList out the products .produced
a 2.
.P.P a ad by MSME in Tamil.Nadu?
P.P P.Pa ad .P.P a ad a ad
.P.P
www  In Tamil www Nadu MSMEs sector produces wwwa wide variety of products wwinwalmost all fields. www
l a ia. i.Ogrgprominent amonglthem

OrThe
a ia.Oi . O grgthe textile, electronic .products,
rare
l a ia O
i . rgrg engineering products,
O l a ia.Oi . O grg
rauto
d ad
l
saasa ancillaries, leather d ad
l
saasa chemicals, plastics,
products,
d a
d
asa l
sagarments, jewellery etc. asa
d d a sa l
d a
d saasla
a 3.
.P.P a What is the role and significance.P.Paa of MSMEs in Indian .P.PaEconomy?
a .P.P aa .P.Paa
w ww
w w ww
w w www w ww
w wwww
ww 1. Employment wwPotential: MSMEs generate wwmore employment opportunities ww than large business ww
concerns.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d ad saasa
2. l
Low Production Cost:
d adsaasa
MSMEs ldo not require skilled
d a
d saasa
labourers l or professionals to
d saasa
run
a
d
the l
d a
d saasla
a a organisation. Thus .facilitates
.P.P a a production of goods a low
a cost. aa aa
w ww
w w wwP.P
w w www .P.atP
w ww
w
.P.P
ww
.P.P
ww
ww 3. Low Investment: ww MSMEs do not requireww a huge capital to start the unit. ww It can employ locally ww
availablerg resources
rg within the reach of rgrthe
g owner. rgrg rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
4. s
a aslala any three features aofsaSelf
Explain
a
a Group.
aslalHelp a saaslala a saaslala a saasla
a d d a d d a d d a d d a d d
ww.P.Pa 1. The motto
ww Paevery group memberswshould
.P.of .P.Pabe “saving first – credit
w ww .P .Pa
latter” .P.Pa
ww
ww
ww w
2. Selfw w w
Help Group is homogeneousw w w w
in terms of economic status.w w w w wwww
3.
rgrgThe ideal size of a Self Help Group
rgrg ranges between 10 and
rgrg20 members. rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O
a saasal 4. The groups need
a saasal
not be registered.
a sa asal a sa asal a saasla
d
a a5.dWhat are the different dad in which banks fund.P
aways d d Groups?
a aHelp
Self d
a ad d
a ad
w .P.P
w w .P.P
w w w .P w .P.P
w w .P.P
w
w
www  There ww w wthree distinct modes ofwcredit
are w
ww to SHGs. w
www w
www
 Under
i . O . rgrg the first mode, banks
O i . O .
lend
rgrgdirectly to the SHGs.i.O.O
O rgrg i .O . rgrg
O
l a a i l a a i l a a i l a a i
d ad saasa l In the second mode,
d ad
banks
saasa l provide loans to the
d a
d
NGOs
saasa l for onward lending to
d a
d
the
saasa SHGs
l and
d a
d saasla
aa
.P.P a a entrepreneurs. .P.P
ultimately toPmicro
. .P aa .P.P aa .P.Paa
w ww
w  w ww
w w www to the SHGs with thew ww
w w ww
w
ww Under ww the third mode, banks ww
extend credit ww NGOs serving as facilitators. ww
 Out of these three methods, the last method of direct lending by bank with NGOs facilitation
i .O . rgrg
O .O . rgrg
O .O . rgrg
O .O . rgrg
O
l a a i is widely practised. lalia i l a ia i l a ia i
d ad saasa l
d adsaasa d a
d saasa l
d a
d saasa l
d a
d saasla
aa
CHAPTER-22:
.P.P .P.Paa .P.Paa .P.P aa .P.Paa
w ww
w 1. What is the w ww
w
classification of foreign trade? w www w ww
w w ww
w
ww ww ww ww ww
Foreign trade is a trade between a seller and buyer of different countries.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ala i
Classification: a i a i a i
d ad slaImport
saaA. Trade d adsaaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa Import trade means a
.Pa goods from a foreign
.Pbuying a
.Pa for domestic use.
.Pcountry .P.Paa a
.P.Pa
wwww wwww ww ww wwww wwww
ww ww ww ww ww
B. Export Trade
i . O . rgrg means the sale of domestic
O i . O . rgrggoods to foreign countries.
O i . O . rgrg
O i .O . rgrg
O
Export
l a
al a
aC.Entrepoti trade l
asal a a i l
asala a i l
asala a i asla
d a sa s Trade d a sa d a sa d a sa d a s a
a ad
.P.P .P.Pa ad .P.Pa ad a ad
.Psame
.P .P.Pa ad
w w w Entrepot trade w w w
means importing of goods w
from w w
one country and exportingw w w
the to foreign w w w
www www www www www
countries. It is also known as ‘Re-export trade’.
2. Give two i .O . rgrg of Entrepot trade.i.O.O
O
examples rgrg i .O . rgrg
O i .O . rgrg
O
d ad
l
saasa  Indian diamonddmerchants ad
l
saasa in Surat import uncut d a
d
l
asa diamonds from SouthaAfrica.
saraw d d
l
saasa They cut d adsaasla
aa
.P.P aa
P.P
.the .P.Paa P.P
.the aa .P.Paa
w ww
w and polish
w ww
w diamonds in their units w wwinwIndia and re-export them w w
wtow International w ww
w
ww ww ww ww ww
Diamond Market in Amsterdam.
.O O grg
O
aa l li
D.C.RAJ
a a i . aa l alia i . aal alia i. aal a li
a i .
Page
ala
s a slaalia. i.O s as laalia. i.O s as laalia. i.O s aslaalia. i.O saasla
d
aa ad a aad ad a aad a
d a aad a
d a aad a
d
ww.P.P ww .P.P ww .P.P .P.P
winw ww.P.P
w
ww w  www
Singapore,w Dubai, Hongkong are thew w
largest
wwPadasalai Entrepot trade w
centers
ww w the world. ww ww
i O
.you. rgmean
O rg by Export trade?i.O . Orgrg i .O . rgrg
O i .O . rgrg
O
3. Whatla do a i l a a i l a a i l a a i
d ad
l
saasa  Export trade means d ad
asa
sathe l
sale of domestic goodsd a
dto
l
saasforeign
a countries.
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.isP aa
.P.surplus
P aa
.P.P aa
.P.P
w ww
w  Export w ww
w
trade necessary to sell w ww
w
domestic goods, to make w www
better utilization of wwww
ww ww ww ww ww
resources, to earn foreign exchange, to increase national income, to generate employment
. O O grg
rand . O O grg
rrevenue. . O rgrg
O . O rgrg
O
a i i . to increase Government a i i . a i i . a i i .
d ad slala
saaExamples: d ad saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa 1. Export of Iron w a
.Pa India to Japan www
.Pfrom a
.P.Pa a
.P.Pa a
.P.Pa
wwww ww w
ore ww ww wwww
ww ww www ww ww
2. Selling of Tea from India to England.
4. What a . O . rgrg trade?
O
isiWholesale i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
lal a
a“Purchase i l a a i
asalthe manufacturers andasselling l a a i
asal them in smaller quantities l a
asatol a i asla
d a sa s of goods in a
bulk
d sa
from d a d a sa other d a sa
a ad
.P.P .P.P a ad .P.Pa ad a ad
.P.P a ad
.P.P
w w w intermediaries” w w
is w
known wholesale trade. w w w w w w w ww
www www www www www
5. State the meaning of Retail trade.
Retail i .O rgrgdeals with the distribution
O
trade
. i .O . rgrofggoods in small quantities
O i .O . rgtorgthe consumers.
O i .O . rgrg
O
a
6.dName
d
l
saasaany three retail traders d ad saasyour
in
l
a locality
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P
w ww
w 1. Star provisional w wstore-
w w sirkali w ww
w w www wwww
ww ww
2. Kavery super market- sirkali
ww ww ww
3. Ram i .O . rgrg
departmental
O store- sirkalii.O . rgrg
O i .O . rgrg
O i .O . rgrg
O
a
7.dState
d
l
saasathe main aim of trade.dadsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P  The buying P.P
.and a aselling of goods and services .P.Pa aconsists of trade. aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www wwww
ww  The essence
ww of trade is to make goods ww and services available towthose w persons who need ww
. O O grg and are able and willing
rthem . O rgtorgpay for them.
O . O rgrg
O . O rgrg
O
a i i .
a Trade is conductedsinasorder a i i .
lala to earn profit. a i i . a i i .
d adsaaslal d ad a d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa  Trade acts
a
Paintermediary in the exchange
.asP.an a
.P.Paof commodities between a a producer and
.P.Pthe a
.P.Pa
wwww w ww
w w ww
w w www wwww
ww w w
consumer. w w w w w w
CHAPTER-23:
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l a a i
asaldo you understand byachannels l a a i
asal of distribution? asaasal l a a i l
asala a i asla
d s
1.aWhat
a d sa d d a sa d a sa
a ad
.P.P  A channel .Pthe
is .P
d through which the.Pgoods
a aroute .Pa adare passed on to the.ultimate a ad consumer.
P.P a ad
.P.P
www  There ww w
are direct channels of distribution www without middlemen. www www
 OO grg channel consists of
. i. rIndirect .O rgrgor more middlemen performing
one
O .O rgrg different functions.i.O.O
O rgrg
l a ia l a ia i . l a ia i . l a a i
d ad
l
saasa  Middlemen helpdinadsathe l
asaflow of goods towards a
d d
l
saascrores
the a of consumers. asaasa
d d
l
d a
d saasla
a a2. Who is a factor? .P.P
.P.P aa .P.Paa aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www wwww
ww  A factor ww is a mercantile agent to whom ww goods are entrusted forwsale w by a principal. ww
.OO grgtakes physical possession
rHe .O rofgrthe
O g goods, though he does .O rgnot
O rg obtain ownership ofi.the O rgrg
O
l a ia i . l a ia i . l a ia i . l a a i .
d ad
l
saasa goods. d ad saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P  A factor sells
a a in his own name without
.P.goods
P .P.Pa arevealing the name of his aa
.P.principal.
P aa
.P.P
w ww
w w ww
w w ww
w w www wwww
ww  He is liable
ww for his action. He can w wor be sued for his contracts.
sue
ww ww
3. Explain.O
i the
. rgtypes
O rg of mercantile agents. i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a la i a i a i a i
d ad slaBrokers
saa(i) d ad saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa A Broker is one who a
.Pa for another and
.Pbargains a
.P.Pa commission for his service.
receives
a
.P.PaHe is paid a
.P.Pa
wwww w ww
w w w
w w w www wwww
ww w w
‘brokerage’ forwhis services .He brings buyerwand the seller to the negotiating w w process and arranges w w
for finalising
i . O . rgrg contracts between them.
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
a(ii)a l a
aFactorsi l
asal a a i l
asal a a i l
asala a i asla
d a sa s d a sa d a sa d a sa d a s a
a ad A factor is a mercantile
.P.P .P.P ad to whom goods are.P.entrusted
aagent a ad for sale by a principal.
P d takes physical
a aHe
.P.P a ad
.P.P
www possession of wwgoods, though he does w
wthe w ownership of the goods.
wobtain
not www www
i .O . rgrg Agent or Consignees
(iii) Commission
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d ad
l
saaAsacommission agent buys d aand
d
l
saassells
a goods on behalf of athesaasprincipal
d d
a l
d a
d aasa l
for a fixed rate ofscommission for
d adsaasla
a a all his transactions..All
.P.P aa aa aa aa
w ww
w w wwP.Prisks connected withwhisw
w
.P.P
wtransactions
w w wwwP.P
are borne by the.principal.
www
w
.P.P
ww ww ww ww ww
.O O grg
O
D.C.RAJ
aa l a lia i . aa l alia i . aa l alia i. aal alia i .
Page
ala
s a s laalia. i.O s aslaalia. i.O s aslaalia. i.O s aslaalia. i.O saasla
d
aa ad a aad ad a aa d a
d a aad ad a aad a
d
w
ww w 4. Explain any three
www w
characteristics of wholesalers. w w
wwPadasalai ww w w ww ww
1. Wholesalers buy goods directly from producers or manufacturers
i .O . r2.grWholesalers
O g
i .inO. Orgrg i .O . rgrg smaller quantitiesi.O.O
O rgrg
l a a i buy goodsl a a i large quantities and selllain a i
relatively l a a i
d ad
l
saasa 3. Wholesalers sell d ad a asa l
sdifferent varieties of a d a
d
particular
l
saasavariety of product dadsaasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w 4. Theyw www
employ a number of agents w wworkers
w
or w for distribution ofw ww
w
products wwww
ww ww ww ww ww
5. What are the services rendered by the wholesalers to the manufacturers?
i . O . rgrg in Large Scale: A wholesaler
O i . O . rgrg buys goods in bulk and,
O i . O . Ogrg
rthereby, i . O . rgrgto
O
1.la i
Economies a i a i enables the i
producers
a
d a
d sala goods on a large
saaproduce d a saaslala
scale.
d d a
d saaslala d adsaaslala d a
d saasla
a
.P.Pa 2. Warehousing w a
.P.PaA wholesaler holds large a
Pa of goods in his private
.P.stock a
.Pa
.Pwarehouse a
.P.Pa
wwww ww w
Facility: wwww wwww or in a wwww
ww ww ww ww ww
rented warehouse.
3. a i . O .
Financial rgrgAssistance: A wholesaler
O i . O . O grg makes advance payments
roften i . O . rgrgto producers. He buysi.O
O .
the rgrg
O
l
agoods a i
al as soon as they areaproduced. l
asala a i l
asala a i l
asala a i asla
d a sa s d sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P .P.Pa ad a ad
.P.P a ad
.P.P
w w w CHAPTER-24: w w w w w w w w w w ww
www www www www www
1. Explain the features of general stores.
i .O . ri.gGeneral
O rg Stores sell a wide i .O . rgrg of products under ione
O
variety .O . Ogrg
rroof i .O . rgrg
O
d a
d
l
saasa ii. These stores remain d ad
l
saasaopen for long hours atdconvenient a
d
l
saasa timings d adsaasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.their
P aa
.P.P aa
.P.P
w ww
w iii. These
w wwstores
w provide credit facilities w wto
w w regular customers w ww
w wwww
ww ww ww
iv. Its commonly found in a local market and residential areas
ww ww
i .O . rv.grstore
O g deals in grocery, bread,butter,
i .O . rgrg
O toothpaste, soaps i .O . rgrg
etc..
O i .O . rgrg
O
a saasany
2.dGive
d
l
a four points of distinction
d ad
l
saasabetween hire purchase d a
dsystem l
saasa and installment system d ad
l
saasofa selling. d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w SL.NO Basiswww
w Hire Purchase System w ww
w Installmentwsystem ww
w wwww
ww 1 ww of
Transfer Ownership passes ww to the Ownership wwpasses to the ww
i . O . rgownership
O rg buyer only
i . O . rgrafter
O g the final buyer
i . O . rgrasgsoon as he has paid i.O.O
O rgrg
a i a i a i a i
d a
d saaslala d ad
aslala has been paid asaaslalthe
sainstalment d d
a first instalment. saslala
d ad a d a
d saasla
a
.P.Pa 2 Action on a
.P.Pa If the buyer commits aa
.P.Padefault On default of a
.P.Pa
payment, the a
.P.Pa
wwww ww
default ww in payment, the ww
wseller
w is seller cannot www w
seize the article wwww
ww ww ww ww ww
entitled to repossess the but recover the dues through
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O gr g article . O r
O gr g . O
court. rgrg
O . O rgrg
O
l a ia i .
a3sal Contract of sale asaThe l a ia i . l a ia i .
asalbuyer prefers to pay aasaasalit’s a type of purchaseainsaasal l a ia i . asla
d a sa d d d d a sa
a ad
.P.P a ad lump sum or a part .ofP.the
.P.P a ad
P which the price a ad of the
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.amount a ad
.P.P
www www price initiallywww product w is w wpaid initially but
not www
in instalments.
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O . O . rgrg
O .O . rgrg
O .O . rgrg
O
4 lalia i Rights of buyer Thel a i
buyer
a i cannot hire, sell or l a i
The
a i buyer can do anything lalia i
d a
d saasa d adsapledgel
d d
l
asa the articles bought.asaasa with the article.
d adsaasa d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w w www w ww
w w ww
w wwww
ww ww ww ww ww
3. Explain the characteristics of super markets.
.O
i. Supermarkets
i . rgrg are generally situated
O i .O . rgat
O rgthe main shopping centres. i .O . rgrg
O i .O . rgrg
O
d a
d
l
saaii.saThe goods kept on racks d adwith
l
saasaclearly labelled pricedand a
d
l
asa tags in such stores,asaasa
saquality d d
l
d a
d saasla
aa
.P.P aa
.P.P P.Paa
.goods aa
.P.P aa
.P.P
w ww
w iii. The customers w wwmove
w into the store to pickup w ww
w of their requirements,bring
w ww
w them to the cash www
w
ww ww
counter, make payment and take home delivery.
ww ww ww
iv. The i . O . rgrg are sold on cash basis
goods
O i . O . rgrgNo credit facilities arei.O
only.
O made
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O i . O . rgrg
O
ala i a i a i a i
d a
d saav.slaSupermarkets d dsaaslaonladepartmental basis.dadsaaslala
are organised
a d adsaaslala d a
d saasla
a
.P.Pa4. What is meant by ‘mail a
.P.P a a
.P.Pa a
.P.Pa a
.P.Pa
wwww w www order retailing’?
w ww
w w ww
w wwww
ww i. Mail order houses
w w are the retail outlets that w w sell their merchandise through w w mail. There is generally w w
no direct
i . O . rgpersonal
O rg contact between
i . O . rgrgbuyers and the sellersi.inO.this
the
O rgrgtype of trading.
O i .O . rgrg
O
l al a i
aii.saPerishable a l a a i
alnot suitable for sale byamail l al a
asaorder. i a l a
al a i asla
d a sa goods like milk
d a sa s
are
d sa Suitable goods are
d a sa s
books,
d a s a
a ad watches, etc.
.P.P a ad
.P.P .P.Pa ad a ad
.P.P a ad
.P.P
www CHAPTER-25: www www www www
1. Describe importance
i .O . rgrg
O of the external trade
i .O . rgrto
O g an economy
i .O . rgrg
O i .O . rgrg
O
d a
d
l
saasa i) Unequal Distribution d ad
l
asaNatural Resources. asaasa
saof d d
l
d adsaasa l
d adsaasla
aa
.P.P  Countries a a the world are not endowed
.P.P
across .P.Pa awith the natural resources aofavarious types
.P.P .P.Paa
w ww
w w www w ww
w w ww
w www
w
ww ww
equally. ww ww ww
.O O grg
O
D.C.RAJ
aa l alia i . aal alia i . aal alia i. aal alia i .
Page
ala
d
aa a
d a aad a
d a aa d a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w  The ww ww
natural resources are unevenly w w
spread
wwPadasalai across the various w w
nations.
ww www w
ii) Specialization.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i Certain countries specializel a a i in the production of goods l a a i and services due to some l a i
natural
a
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P advantages.
.P.P aa aa
.P.P .P.Paa aa
.P.P
w ww
w  Like wwww
abundant availability of w
skilled www
labour, favorable climatic w ww
w
conditions, availability of w ww
w
ww ww ww ww ww
natural resources, technical know-how, etc.,
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i
iii) Cost Benefit. a i a i a i
d a
d saaslala Production costdadvaries la
saaslasignificantly d a
d aaslala
scountries d a
d
aslala
sasocio d a
d saasla
a
.P.Pa .P.Pa a among a
.P.Pathe due to a
difference
.P.Pa in a
.P.Pa
wwww wwww
economic, geographical, demographical, ww ww technical and political ww
wenvironments
w prevailing ww wwww
ww ww ww ww
therein.
i . O . rgnecessity
O rg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
2. What
asall a is
a i
the for entrepot l
asal a a i
trade?
asal l a a i l
asala a i asla
a ad
.P.P
a) The country a ad
may
.P.imported
P
not have any accessible a ad
.P.P
trade routes connecting the
.P.Pa ad
importing country a ad
.P.P
www b) www
The goods may requirewwwfurther processing or www
finishing before exporting, and www
these facilities may be lacking in the exporting or importing country
i .O . rc)grThere
O g may not have any.O
i . rgrg trade agreement between
O i .O . rgrg both the country i.O.O
O rgrg
l a a i l a a ibilateral l a a i l a a i
d a
d
l
saasa d) Importer anddexporter a
d
l
saasa may not share gooddeconomic a
d
l
saasa relation with eachdother a
d saasa l
d a
d saasla
aa
.P.P .P.P aa aa
.P.P .P.Paa aa
.P.P
w ww
w 3. What are the limitations wwww of international business? w www w ww
w w ww
w
ww ww ww ww ww
1. Economic Dependence:
.O O grg
rInternational .O rgrgto make the countryitoo
O .O O grg dependent on imports
rmuch .O Ogrg
rfrom
l a ia i . trade is more
l a ia i .
likely
l a a i . l a ia i .
d a
d
l
saaforeign
sa countries. d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.PHarmful
.P aa
.P.P .P.Paa aa
.P.P
w ww
w 2. Importwwwofw Goods: w www w ww
w w ww
w
ww ww ww ww ww
International business may lead to import of luxurious goods, spurious goods, dangerous
goods, i . O . rgrgIt may harm the well-being
O
etc. i . O . rgrofgpeople.
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala 3. Misuse of Natural d a
d
lala
saasResources. d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Paof scarce natural resources a
.P.Ptoa various countries across .P.Pa a a
.P.Pa
wwww Excessivewwwexport
w w www w ww
w the world may lead ww ww
ww w w
to faster depletion of the resources in the exporting countries.
w w w w w w
CHAPTER-26: i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l a a i
asalare the contents of Indents? l
asal a a i asal l a a i l
asala a i asla
d s
1.aWhat
a ad Content of an Indent:
.P.P .P.P a ad a ad
.P.P .P.Pa ad a ad
.P.P
www a. Quantity of w
w
wgoods sent
w w
b. Design ofwgoods c. Price
www www
d. Nature
i .O . rgrofgpacking shipment e.i.O
O Mode
. rgrgof shipment f. Period
O i .O . rgrdelivery
of
O g
i .O . rgrg
O
d a
d
l
saag.saMode of payment dadsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a 2.
.P.P a What is meaning of consular .P.P a a invoice? aa
.P.P .P.Paa aa
.P.P
w ww
w wwww w www w ww
w w ww
w
ww  Thisw w
document is signed by the consul ww of importer’s country stationed ww in exporter’s country.ww
l a ia. i.Ogrg customs officerlat

OrHence
a ia
the
.Oi . O grg of destination will not
rport
l a ia.Oi . rgrgthe consignment andi.simply
open
O l a a O
i . rgrg
O
d a
d
l
saasa access customs dduty a
d saabasedl
sa on the value declared d a
d
l
saainsathe invoice. d a
d saasa l
d a
d saasla
aa
.P.P  They simply a a the invoice as true statement
.Paccept
.P a a of the content of the
.P.P aa
.P.consignment.
P aa
.P.P
w ww
w wwww w www w ww
w w ww
w
ww 3. What is meantw w Party?
Charter ww ww ww
A charter
i . O . rgparty
O rg is a formal agreement i . O . rgbetween
O rg ship owner and thergexporter
i . O . O rg under which exporter
i . O . rgrg
O
a i a i a i a i
d a
d slalaan entire ship or admajor
saahires a
d
ala of ship either for a aparticular
saaslpart d d saaslala voyage or for a specific d a
d
ala period
saasltime d a
d saasla
a
.P.Pa when the shipping a
Pa
.isP.heavy. a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww w www w ww
w w ww
w
ww 4. Write a short note w w on Mate’s receipt? w w w w w w
Mate’s Receipt
i . O . rgrg is the document issued
O i . O . rgrby
O g the captain of the ship
i . O . rgrg
acknowledging
O
the receipt of rgoods
i .O . Ogrg
aon l al a
aboard i by him to the portsof l al a i
asaspecified destination. Thissa l a a i
al details like quantity
contains l
aof al a
agoods i asla
d a sa s d a a d a a s d a sa s d a s a
a ad shipped, number of.Ppackages
.P.P a ad condition for packing.
.P ad
aetc.,
.P.P .P.Pa ad a ad
.P.P
www 5. What is Bill of w ww
Lading? www www www
Bill of Lading,
i . O . rgrg refers to a document
O i . O . rgrg by ship owner or toi.his
signed
O O . O grg mentioning that goods
ragent i .O . rgrg
O
d a
d saasa l
specified have been received
d a
d
and
saasa l it would be delivered
d a
d
to
saasathe l importer or his agent
d
at
a
d
the
saasa lport of
d adsaasla
a a destination if good.condition
.P.P a a subject to terms and aa aa aa
wwP.P .P.conditions
P mentioned therein. .P.P .P.P
w ww
w ww w www w ww
w wwww
ww ww ww ww ww
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O
D.C.RAJ
aa l alia i . aa l alia i . aa l alia i. aal alia i .
Page
ala
s as laalia. i.O s as laalia. i.O s as laalia. i.O s as laalia. i.O saasla
aad a
d a aa d a
d a aad a
d a aad ad a aad a
d
w
ww w www w w w
CHAPTER-27:
i .O . rgprimary
O rg i .O . Orgrg of WTO? i .O . rgrg
O i .O . rgrg
O
1. What l a is
a i
the motive of establishment
l a a i l a a i l a a i
d a
d
l
saasa  It was setup to have d a
d
a l
saaaspermanent institution d a
d
to promote
l
saasa free and fair trade d adamong
l
saasa member d a
d saasla
aa
.P.P .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w w
countries. ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
 It deals with the global rules of trade between nations.

i . O . rItgrensure
O g trade flows smoothly
i . O . rgrand
O g freely as possible .O.O
i rgrg i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa2. Name the affiliate w a
P.Pa Bank
.World a
.P.Pa a
.P.Pa a
.P.Pa
wwww ww ofw ww ww ww ww wwww
ww ww ww ww ww
 International Development Association (IDA)
 . O O grg
rInternational . O rgrg (IFC)
O . O rgrg
O . O rgrg
O
l a ia i .
asal Multinational Investment l i
Financial corporation
a a i .
asal Guarantee Agency(MIGA) l
asal a ia i . l
asal a ia i . asla
a ad
.P.P a ad
.P.Centre
P a ad
.P.P .P.Pa ad a ad
.P.P
w w w  w
International
w w for Settlement w w
of w
Investment Disputes (ICSID)
w w w w w w
www www www www www
3. What are i .O . rgrgcriticisms of World Bank?
O
the i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d saa1. l
saFailure to Reduce Tariffs d a
d
l
asaAgriculture: WTO failedatosaasconvince
saon d d
a l the USA and European
d ad
l
saasa Unions to d a
d saasla
aa
.P.P .Pon
.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w eliminate highw ww
tariff
w agriculture. w ww
w w ww
w w ww
w
ww ww ww
2. Neglect Environmental Considerations: WTO on maximizing GDP at the cost of environment is
ww ww
i .O
misplaced. . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d saa3. l
saNeglect of Cultural and d a
dSocial l
saasa Factors: The growthdofadsaMNC’s l
asa is feared to ruin cultural
d ad
l
saasdiversity
a of d a
d saasla
a a many developing countries.
.P.P .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
4. How is .the
i O . rg
O rg of SDR determined
value
i . . rgrg
currently?
O O i . O . rgrg
O i . O . rgrg
O
a i
a Initially the value ofsSDR a i
a fixed to be 0.888671 a i
lala of fine gold equivalent a a USi
d a
d saaslal d a
d a aslalwas
d a
d saasgrams d ad saaslto
alone
d a
d saasla
a
.P.Pa dollar tillw
a
Pa 1973.
.P.year
the
a
.P.Pa a
.P.Pa a
.P.Pa
wwww w w w w ww
w w ww
w w ww
w
ww  From 1st w w October 2016 SDR basket w w consists of US dollar, Euro, the w w Chinese Renminbi, w w
. O O grg Yen and British Pound
rJapanese . O rgrgsterling.
O . O rgrg
O . O rgrg
O
l a ia i .
asal It is calculated as athe l a ia i . l a ia i . l a ia i . asla
a sa sa al of specific amount ofaeach
assum sa
l
asabasket currency value a insUS
a
l
asadollar a sa
d
a ad d
a adexchange rates observed d
aatadnoon London time. .P.P d
a ad d
a ad
w .P.P
w based onwthe .P.spot
w P w w.P.P w w ww.P.P
w
www  IMF w
w
ww SDR to member countries
allocates
w
www in proportion to their w w
ww
quota.
w
www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
5. Mention
d a
d
l
saasa the functions of dSAARC. a
d saasa l
d a
d saasa l
d ad saasa l
d a
d saasla
aa
.P.P 1. Monitoring .P.Paanda co-ordinating the development a a programme
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww
2. Determining inter-sectoral priorities ww ww ww
i . O . r3.grMobilizing
O g cooperation within
i . O . rgrgand outside the region.
O i .O . rgrg
O i .O . rgrg
O
d a
d saasa l 4. Dealing with
d a
d saasa
modalities l of financing
d a
d saasa l
d ad saasa l
d a
d saasla
aCHAPTER-28:
.P.P a .P.Paa aa
.P.P .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww ww ww ww
1. Why is Balance
i . O . rgrg of payment prepared?
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i
a Balance of paymentsisaslthe a i
alaprincipal tool for analyzing a i
a monetary position of a
lala i
d a
d saaslal d a
d a d a
d saaslalthe d ad saasinternational d a
d saasla
a
.P.Pa a
.P.Pa
trade of a country. a
.P.Pa a
.P.Pa a
.P.Pa
wwww ww ww ww
wmonetary,
w ww ww wwww
ww  Balance ww of payments help in framing ww fiscal and trade wwpolicies of country. ww
 rGovernment
grg keenly observesrbalance grg of payment position rgofrgits important trade partners rgrgin
i . O . O i . O . O i . O . O i .O . O
a saaslaalai making policy decisions. a sa aslaalai a saaslaalai a saaslaalai a s aasla
d
a ad  It reveals whether d
a ada country produces enough d
a adeconomic output to pay d d growth.
a aits d
a ad
w .P.P
w w .P.P
w w w.P.P w .P.for
w P ww.P.P
w
www w
www w
www w
www w
www
2. What does g
i . O . r Balance
O rg of payment disclose?
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
saasla
A Balance
l of Payment surplus indicates
l that country’s exports l are more than its imports and
l its
d a
d saasa d a
d saasa d a
d saasa d ad saasa d ad
aa
.P.P government and
.P.Paa
residents are savers. They are in aa
position
.P.P to have enough aa
capital
.P.P to pay for its aa
.P.P
w ww
w domestic w ww
w
production. w ww
w w ww
w wwww
ww ww ww ww ww
.O O grg
O
aa l li
D.C.RAJ
a a i . aa l a lia i . aa l alia i. aa l a li
a i .
Page
ala
s a slaalia. i.O s a slaalia. i.O s as laalia. i.O s as laalia. i.O saasla
d
aa ad a aa d a
d a aa d a
d a aad ad a aad a
d
w
ww w ww w w w w
wwPadasalai www w wwww
i .O . rgrof
O g
i .O . rgrg
O i .O . rgrgis more than the export.
O i .O . rgrg
O
AlBalance
a a i Payment deficit points l a a i to the fact that country’s l a a i
import l a a i This
d ad sa l
saasituation forces the d
country a
d
asa
sato l
borrow from other d a
d
countries
l
saasato pay for its imports.dadsaasa l
d a
d saasla
aa
.P.P .P.P aa .P.P aa aa
.P.P aa
.P.P
w ww
w w www w www w ww
w wwww
ww ww ww ww ww
3. What are the credit items shown in currents accounts?
. O O grg
rGoods . O rgrg
O . O rgrg
O . O rgrg
O
a 
ia i . Export(visible) a i i . a i i . a i i .
d a
d saaslal Invisible Exports d a
d saaslala d a
d saasla
a
.P.Pa a
.Pa sold abroad www
.Pservice .P.Paa a
.P.Pa a
.P.Pa
wwww ww
1. Transportww ww ww wwww
ww ww www ww ww
2. Banking service sold abroad
. O r
O gg
3.rInsurance . O rgrg
O . O rgrg
O . O rgrg
O
l a ia i .
asal 4. Income received
service sold
l al
asaloania .
abroad
i l alia
asinaforeigni . l
asal a ia i . asla
d a sa d a sa
on and investment a
made
d sa countries d a sa d a sa
a ad
.P.P a ad
.Pincurred
.P a ad
.inP.India
P a ad
.P.P a ad
.P.P
w w w 5. Expenses
w w w by foreign w
tourists
w w w w w w ww
www www www www www
4. State the i .O . rgrg
O
components of capital account.i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d saa1. l
saPrivate Capital d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasla
aa
.P.P aa
.P.P
w ww
w Private capital w www
consists of foreign investments, w wwlong
w term loan and foreign w ww
currency
w deposits wwww
ww 2. Banking Capital
ww ww ww ww
Banking .O O grg includes movement
rcapital .O rgrgexternal financial asset
into
O .Oand rgrliabilities
O g commercial and .O rgrg
co-
O
d a
d sa l
saaoperative banks authorized d a
d
a l
satoasdealing in foreign exchanged a
d saasa l
d adsaasa l
d a
d saasla
a a 3. Official Capital .P.P
.P.P aa .P.P aa aa
.P.P aa
.P.P
w ww
w w www w www w ww
w wwww
ww It includes RBI’s
wwholdings of foreign currency wwand special drawing rightsw(SDR) w held by the ww
Government
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa CHAPTER-29ww .P.Paa .P.Paa a
.P.Pa a
.P.Pa
wwww w w w www w ww
w wwww
ww 1. Define Offerw w w w w w ww
When one
i . O . rgrperson
O g signifies to anotherrg
i . O . O
his
rgwillingness to do or to i . O . rgrg from doing anything,
abstain
O i . O . rgrga
with
O
l
view
asal a a i
to obtaining the assent ofl
asal a a
that i other person either to l a
such
asal a iact or abstinence, he is l a a
asal make
said i
to asla
a ad
.P.P
a proposal.
.P.P a ad .P.P a ad a ad
.P.P a ad
.P.P
w w w 2. What do youw w w
mean by Agreement? w w w w w w w ww
www www www
Every promise and set of promises forming consideration for each other is an agreement. In short,
www www
Agreement
i .O . rgrg= Offer + Acceptance.i.O.O
O rgrg i .O . rgrg
O i .O . rgrg
O
d a
d saa3. l
saDefine a Voidable Contract d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasla
a a An agreement which
.P.P aenforceable
.P.isP a by law at the.P a a of one or more parties
option
.P a a not at the option .P.P
.P.P
but aa
w ww
w w ww w w ww w w w
w w wwww
ww of the otherw orwothers is a voidable contract. wwThis is the result of coercion, wwundue influence, fraud and ww
misrepresentation.
.O O grgyou mean by Revocation?
rdo .O rgrg
O .O rgrg
O .O rgrg
O
4. What
d a
d sa l
saaRevocation of offer is the d a
d saasa
withdrawal
l of an offer by the d a
dofferor
l
saasa so that it can no longer d adsaabe
sa l
d a
d saasla
a a accepted. Revocation
.P.P .P.P atakes
a effect as soon as it is.Pknown aa aora
.P.P .P.Paa
w ww
w w www w www.P to the offeree. An w w
w
offer
w wwww
ww may revoke w anwoffer before it has been accepted, ww but the revocationmust wwbe communicated to the ww
offeree.rg g rgrg rgrg rgrg
5.la i . O
i . O ra promisor, promisee?i.O i . O i . O
i . O i . Oi . O
a a a
sala saaslala saaslala saaslala
Who is
d a
d saaPromisor: d a
d d a
d d a
d d a
d saasla
a
.P.Pa The person who w a
.Pa obliged through
.Pbecome a
.P.Pa (usually expressedwinw .P a
Pa a
.P.Pa
wwww w w w
has w ww
aw promise w w a.contract) towards www
w
ww another.
w w w w w w ww
Promisee:
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l al a
aAsaperson i whom is the recipient l a a i
asaofl a promise, an obligation asorl a a i
ala contract, received from l a a i
al promisor.
asthe asla
a ad
.P.P .P.P a ad .P.P a ad a ad
.P.P .P.Pa ad
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d saasa l
d a
d saasa l
dadsaasa l
d a
d saasa l
d adsaasla
aa
.P.P .P.Paa
w ww
w w www w www w ww
w w ww
w
ww ww ww ww ww
.O O grg
O
aa l li
D.C.RAJ
a a i . aa l alia i . aa l alia i. aa l alia i .
Page
ala
d
aa ad a aa d a
d a aad a
d a aad a
d a aad a
d
w
ww w CHAPTER-30 www w w w
1. What is a Valid tender?
.O O grg the party offers to perform
rWhen .O Orgrg his obligation, it is not .O rgrg by the promisee.i.So,
O
accepted O ritgrisg
O
l a ia i . l a ia i. l a ia i . l a a i .
d adsaaalso l
sa called offer to performance d a
d
l
saasa or tender. Hence, a d a
d
l
saatender
valid sa of performance isdaconsidered d
l
saasa to be d a
d saasla
a a the performance of.P
.P.P
w ww
w w wwa.P
w
promise.
w ww
w w ww
w w ww
w
ww A tender, tobe wwvalid, must satisfy the following ww essential requirementsww ww
i) It mustg begunconditional
Itlia.O . r rbe at the proper time and
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ii)la i
must a i place. a i a i
d a
d saaiii)
saIt must be in proper form. d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa iv) It must be made .P a a a
.P.Pa a
.P.Pa a
.P.Pa
wwww w ww to.Pa proper person w ww w ww w ww
ww w w
w and Perform a Contract? w w w w w w w w w
2. Who can execute
i . O . ri)grPromisor
O g himself:
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
asal
X l a a
promisesi to sketch a site map l
asal aofa i
Y’s house. X will have to l
asal a a
perform i this promise l
asal
himself. a a i
Because it asla
a ad requires the skill of.X.
.P.P P.Pa ad .P.Pa ad .P.Pa ad a ad
.P.P
www ii) www
Agent www www www
According to Para 2 of Section 40, the promisor may employ a competent person such as agent to
perform .O O grgpromise, if the contract
rthe .O rgnot
is
O rg formed on personali.condition.O rgrg
O .O rgrg
O
l a ia i . l a ia i . l a a i . l a ia i .
d a
d
l
saasa iii) Representations d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a a M promises to sell .his
.P.P aa aa adays
a of the aa
w ww
w w wwP.Pcar for (Rs. 1,00,000) w
w wwP.P a week. But, M dieswafter
to N.after
w ww
w
.P.5P
wwww.P.P
ww contract. M’swrepresentative
w will be liablewtowsell the car to N and N willwbe w liable to pay Rs. 1,00,000/- ww
to M’s representative.
i .O . riv)grgThird Person
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
d a
d sa l
saaAccording to Section 41,difad asa
l
asa accepts the performance
promise d a
d
l
saasa of the promise by adthird a
d
l
saasperson
a he d a
d saasla
a a cannot afterwards .enforce
.P.P aa aa aa aa
w ww
w w wwP.P it against the promisor.
w w ww
w
.P.P
w ww
w
.P.P
wwww.P.P
ww wwPromisors
v) Joint ww ww ww
3. Who can
i . O . rgrgdemand performance?
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d slala
saaperformance 1. Promisee – only
d a
d saaslala
a promisee can demand
d a
d saaslala
performance and not a stranger
d a
d saaslala
demand
d a
d saasla
a
.P.Pa of the a
contract.
.P.Pa a
.P.Pa can demand Exception a
.Pa
.Pperformance. a
.P.Pa
wwww 2. Legal ww
wRepresentative
w wwww
– legal representative wwww Contrary wwww
ww ww ww ww ww
intention appears from the contract. Contract is of a personal nature.
i . O . r3.grThird
O g party – Exception.O
i toO
.
grg
r“stranger to a contract” .OO
i . rgrg i . O . rgrg
O
asall a a i l
asal a a i l
asal a a i l
asala a i asla
a ad 4. Write a note on .the
.P.P P.P ad of Reciprocal Promise.
abenefits .P.Pa ad .P.Pa ad a ad
.P.P
www wwwand Independent www
1. Mutual www www
Where each party must perform his promise independently without the performance of the other,
i .O
theapromise . rgrgare mutual and independent.
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a i l a a i l a a i l a a i
d a
d
l
saasa 2.Mutual and Dependent d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a a Where the performance
.P.P .P.Pa aof the promise by one party .P.Pa adepends upon prior performance .P.Pa a of promise by .P.P aa
w ww
w w ww
w w ww
w w ww
w wwww
ww the other party, wwthe promises are conditional ww and dependent. ww ww
i . O . r3.grMutual
O g and Concurrent rgrg
i .toO . O i .O . rgrg
O i .O . rgrg
O
d a
d
Where l
saaconcurrent.
sa
the two promises
d
are
a
d
said
saasa l be performed simultaneously,
d a
d saasa l they are said to
d
be
a
d
mutual
saasa l and
d a
d saasla
aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww
5. Who is a Joint Promisors?
ww ww ww
. O O grg two or more persons
rWhen . O rgrgmade a joint promise,
have
O . then
O rgrgunless a contrary intention
O . O rgrg
O
a i i . a i i . a i i . a i i .
d a
d slala in the contract,dalladssuch
saaappears a
a
aslalpersons,
d d
lala and after the death ofsathe
saaslives
during their joint
a d a
d a
a
slallast d a
d saasla
a
.P.Pa survivor, representatives a
.P.Paof all, jointly must fulfil .P a
.Papromise”
the a
.P.Pa a
.P.Pa
wwww ww ww wwww wwww wwww
ww ww ww ww ww
CHAPTER-31
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
a1. l a a i
l are the different modes
aWhat l a a i
asal of discharged by implied l a
al a
asconsent? i l
asala a i asla
d a sa s d a sa d a sa d a sa d a s a
a ad
.P.P The contracts .P.Paareadalso discharged by implied .P.P d
a aconsent, different modes .P.ofP ad
adischarge by a ad
.P.P
www implied consent www are mentioned below www www www
(a) Novation, rgrg (b) Alteration, (c) Recession, rgrg (d) Remission, rgrg rgrg
i .
(e)laAccord
a O
i . O and Satisfaction, (f) l a i .
Waiver
a Oi . O and (g) Merger l a ia.Oi . O l a ia.Oi . O
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d adsaasla
aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww ww ww ww
.O O grg
O
D.C.RAJ
aa l a lia i . aa l alia i . aa l alia i. aal alia i .
Page
ala
s as laalia. i.O s aslaalia. i.O s as laalia. i.O s aslaalia. i.O saasla
d
aa ad a aad ad a aad ad a aad a
d a aad a
d
w
ww w ww w w w w
2. Define discharge by Performance.
.O O grg
rPerformance implies carrying .O O grg the obligation of the.contract.
rout O rgrg Performance musti.be
O O rgrg
O
l a ia i . l a ia i. l a ia i . l a a i .
d ad sa l
saacompleted according to the
d ad sareal l
asa intentions of the agreement.
d ad
l
saasa Performance must be d a
d
l
saasaaccording
done
d a
d saasla
a a to time and manner.Pprescribed.
.P.P
w ww
w w ww.P
w w ww
w w ww
w w ww
w
ww Performancewof wcontract may be of two types ww namely ww ww
(i) Actualgperformance
i . O . r rg performance
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
i
(ii)laAttempted
la a i a i a i
d a
d saa3.
saWhat are reasons for d a saaslala arising after the
impossibility
d d a saaslala of contract? dadsaaslala
formation
d d a
d saasla
a
.P.Pa a a
.P.ofPperformance a a of performance of a.P
P.Ptime
.the a
.Pa may be either www a
.P.Pa
wwww w ww
Impossibility
w existing
w w
atw
w w wwcontract
w w
ww (a) known to the w w
w parties or (b) not known towthe parties. w w w w
Likewiserg rg
impossibility arising subsequent rgrgto the formation of ai.contract rgrg or supervening impossibility rgrg
l a ia. O
i . O l a ia. O
i . O l a a O
i . O l a ia. O
i . O
a saasal
may be
a sa asal a saasal a saasal a saasla
d
a ad a) By some event beyond d
a adthe control of the parties d
aorad d
a ad d
a ad
w .P.P
w w .P.of
w P w w.P.P w .P.P
w w .P.P
w
w
www b) By some www
actweither the promisor or www
of w
the promisee. w
www w
www
4. What are the various rules regarding damages?
.O O grg
rDamages O
are a monetaryi.compensation rgrg
O awarded by the .O rgrgto the injured party i.O.O
court
O rgrg
l a ia i . l a a i . l a ia i . l a a i
d a
d saafor l
sathe loss or injury suffered d ad
l
saasbya him The main purpose d ad
l
saasawarding
of a the damages is a
d tos
d a
l
asa good the
make
d a
d saasla
a a loss suffered by him.
.P.P aisaknown as doctrine of restitution.
.P.ItP .P.Paa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww There are mainly ww four types of damages, such ww as ww ww
i) Ordinary damages
i .O . rgrdamages
O g
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
ii)la a i
Special l a a i l a a i l a a i
d a
d saaiii) l
saVindictive or exemplary d ad a
l
asa and
sdamages d adsaasa l
d a
d saasa l
d a
d saasla
a a iv) Nominal damages.
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
CHAPTER-32:
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ala i a i a i a i
d a
d slaWhat
saa1. d ad saaslala d adsaaslala d a
d saaslala d a
d saasla
a
.P.Pa is Gross Total aIncome?
.P.Pa under these headsw a
.P.Pbeaaggregated after adjusting a a
.P.Ppast a
.P.Pa
wwww Income ww
wcomputed
w w
wwshall wwww and present www ww
ww ww ww ww w
losses and the total so arrived at is known as ‘Gross Total Income’.
(i) Income
i . O . rgrfrom
O g ‘Salaries’
i . O . rgrg
O i . O . rgrg
*****
O i . O . rgrg
O
l
a(ii) al a
aIncomei l
asala a i l a a
asal ***** i l
asala a i asla
d a sa s from ‘House Property’
d a sa d a sa d a sa d a sa
a ad (iii) Income from ‘Business
.P.P .P.P a ador Profession’ .P.Pa ad ***** .P.Pa ad a ad
.P.P
www (iv) Income from www‘Capital Gains’ www *****www www
(v) Income from ‘Other Sources’ *****
Gross i .O . rgrgIncome (GTI)
O
Total i .O . rgrg
O i .O . rgrg
O
***** i .O . rgrg
O
d a
d saasa l
d ad saasa l
d adsaasa l
d a
d saasa l
d a
d saasla
a a 2. List out the five heads
.P.P .P.P a aof income. .P.Paa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww (i) Income from ww‘Salaries’ *Sections 15-17];ww ww ww
(ii) Income
i . O . rgrgfrom ‘House Property’*Sections
O i . O . rgrg 22-27];
O i .O . rgrg
O i .O . rgrg
O
d a
d
(iii)
saa(iv) lIncome from ‘Profits
sa Income from ‘CapitaldGains’
and
ad
Gains
l of Business or
saasa*Sections45-55]; anddadsaasaProfession’ *Sections
l 28- 44];
d a
d saasa l
d a
d saasla
aa
.P.P
w ww
w (v) Income from w ww
‘Other
w Sources’ *Sections 56-59]. w ww
w w ww
w w ww
w
ww ww ww ww ww
3. Write
i . O . ragrnote
O g on Agricultural Income.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala Any rent or revenue d ad slala from land whichdisadsituated
saaderived saaslala in India and is used d a
d saaslala
for
d a
d saasla
a
.P.Pa agriculture purposes. .P.P a a
Agricultural income is fully.P a a
exempted from tax u/s 10(1).P a
andaas such does not a
.P.Pa
wwww w wincome.
w w w ww.P
w w ww.P
w w ww
w
ww form part ofw total
w w w w w w w
4. What . O rdo
O grgyou mean by Total Income. . O rgrg
O . O rgrg
O .O rgrg
O
l a ia i .
asal Act 1961 allows certain l alia i . l a ia i . l a ia i . asla
a sa a sa asadeductions under sectiona saa80.
s alAfter allowing these deductions
a saasal the a s a
d
a ad figure which we arrive d
aataisdcalled ‘Total Income’.P d
a aondthis figure tax liability.Pis.P d
ad
acomputed d
a ad
w .P.P
w w .P.P
w w w .P
and w w at the ww.P.P
w
www prescribed rates. wwww wwww w
www w
www
Gross Total rgrgIncome rgrg ****
rgrg rgrg
Less:
l a ia. O
i . O
Deductions (Sec.80C to a
80U)
l ia. O
i . O l a ia. O
i . O
**** l a ia.Oi . O
d a
d saaTotal l
sa Income (T.I.) d ad saasa l
d ad
l
saasa **** d a
d saasa l
d adsaasla
aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww ww ww ww
.O O grg
O
D.C.RAJ
aa l alia i . aal alia i . aa l alia i. aal alia i .
Page
ala
s as laalia. i.O s aslaalia. i.O s aslaalia. i.O s a slaalia. i.O saasla
d
aa ad a d
aa a
d a aad a
d a aa d a
d a aad a
d
w
ww w ww w w w w
wwPadasalai ww w w ww ww
5. Write short notes on:
1. Direct
i .O . rgTax.
O rg 2. Indirect Tax i.O . Orgrg i .O . rgrg
O i .O . rgrg
O
d ad
l
saai.saDirect Tax: If a tax levied d a
d son
a asthel
a income or wealth ofaasaperson
d d
l
asa and is paid by that person
d a
d
l
saasa (or his d a
d saasla
a a office) directly to the
.P.P aa
.P.Government,
P it is called w .P.P
direct atax
a e.g. Income-Tax, Wealth .P.P aTax,
a Capital Gains aa
.P.P
w ww
w w ww
w w w w w ww
w wwww
ww Tax, Securities wwTransaction Tax, Fringe Benefits ww Tax. ww ww
ii. Indirect Tax: If tax is levied on the goods or services of a person (seller). It is collected from the
i . O . rgrgis paid by seller to thei.Government.
O O . rgrg
O i . O . Ogrg
rtax. i . O . rgrg
O
buyers
a i and a i It is called indirect
a i e.g. GST. a i
d a
d saaslala d a
d saaslala d a
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ww 1. Write any two w w differences between direct w w taxes and indirect taxes. w w w w
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O .O
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w w number of tax payers w w
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ww tax revenue.
ww ww ww ww
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3. Briefly explain the functions of GST council.
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l and IGST Acts. ThesCouncil
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i . O . rgrgMinisters of the Statei.Governments
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asa
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and
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w ww
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w of its size or population. w ww
w Twenty four council wwww
ww ww
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ww ww ww
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.P.P Government .P.and
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w w w w
w w w w
w w wwww
ww wexports - All exports are treated ww as Inter-State supply under ww GST. Since exports are ww
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. O O grg paid already on exports
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a i i .
la any three demeritssaof a i
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.P.Pa a
.P.Pa says that GST inw a a impact negatively on
.P.Pwould .P.P a a a
.P.Pa
wwww i. SeveralwEconomists
w w w w wIndia
w w ww
w the
wwww
ww real estate market. w w It would add up to 8 percent w w to the cost of new homes w w and w w
reduce demand
i . O . rgrg by about 12 percent.
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
asall a a i ii. Another criticism is l a
that
asal a i
CGST, SGST are nothing l a
but
asal a i
new names for Central l
asal a a i asla
a ad
.P.P
Excise/Service Tax, VAT
.P.P a ad
and CST. Hence, there is no
.P.Pa ad
major reduction in the
.P.P a ad a ad
.P.P
w w w number of tax w w w
layers. w w w w w w w ww
www www www
iii. A number of retail products currently have only four percent tax on them.
www www
After.O
i GST,
. rgrgarments
O g and clothes could
i .O . rgrbecome
O g more expensive.
i .O . rgrg
O i .O . rgrg
O
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d adsaasla
aa
.P.P .P.P aa .P.Paa .P.P aa .P.Paa
w ww
w w ww
w w ww
w w ww
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w
ww ww ww ww ww
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D.C.RAJ
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ala

11th Commerce 3 Marks Study Material English Medium

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s aslaalia. i.O s aslaalia. i.O s aslaalia. i.O s aslaalia. i.

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l a ia. i.Ogrg customs officerlat

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