MCC Matr. Higher Sec.

School
12th Commerce
Book Inside – One Words & Questions and Answers
Chapter 1 – Principles of Management
1. Management Knowledge is the best transport to enter ____
Ans. :
The world of employment either in Business World or Government or Private.
Page No. 2
2.The Business Management Association in many countries promote the spread of ____ in
all management areas and to build up the bright ___ of managerial profession.
Ans. :
Knowledge , Public Image. Page No. 2
3.Management is all about ____ but the administration is concerned with _____
Ans. :
Plans and Actions, framing policies and setting objectives. Page No. 3
4.Who may be called Administration ?
Ans. :
The Board of Directors with CEO / MD Page No. 4
5.Who may be called Management ?
Ans. :
Managers of various units, like Production, Marketing, Finance, Accounting, Distribution and
Research & Development Page No. 4
6.What are the twin purposes of the Management Process ?
Ans. :
i)Maximum Productivity or Profitability
ii)Maximum Human Welfare and Satisfaction Page No. 4
7.What do you mean by Rule of Thumb ?
Ans. :
Rule of Thumb means decisions taken by Manager, as per their personal judgments. Pg .No. 6
8.According to Taylor, what should be scientifically planned under the principle ‘Science-
Not Rule of Thumb’. And How it will help ?
Ans. :
Even a small production activity like loading iron sheets into box cars, can be scientifically
planned. This will help in saving time and human energy. Page No. 6
9.What The Principle Science – not rule of Thumb, is concerned with ?
Ans. :
Selecting the best way of performing a job, through the application of Scientific Analysis and
not by intuition or hit and trial methods. Page No. 6
10.What is the style of management is in practice in most of the Japanese companies and
what is the feature in it ?
Ans. :
Paternalistic style of Management is in practice and there is complete openness between
workers and the management. Page No. 7
11.Usually the workers in Japanese Companies don’t go on strike, but if at all they do so,
what they try to impress upon the management ? Page No. 7
Ans. :
They just wear black badge and work even more than the normal hours just to impress upon
the management that their focus is on their demands as well as organisational objectives.
12. Which principle of Taylor is the extension of principle of ‘Harmony, not discord’? And
what does it lay stress on?
Ans. :
Principle of Co-operation, not individualism. It lays stress on mutual co-operation between
workers and the management. P. No. 7
13. The intention of the Principle of Co-operation, not individualism is to replace ____ with
co-operation.
Ans. :
Internal Competition. P. No. 7
14. According to the Principle of Co-operation, not individualism, Who should visualise
themselves as two Pillars ?
Ans. :
Management and Workers. Page No. 7
15. Identify the principles of Modern Management.
i)This principle states that each sub-ordinates should receive orders and be accountable to
one and only one superior.
Ans. :
Unity of Command Page No. 8
ii)Employees must be treated kindly and justice must be enacted to ensure a just
workplace.
Ans. :
Principle of Equity Page No. 8
iii)According to this principle, the whole work is divided into small tasks.
Ans. :
Division of Work Page No. 8
iv)All related activities should be put under one group, one plan of action and they should
be under the control of one Manager.
Ans. :
Unity of Direction Page No. 8
v)This principle suggests that there should be a clear line of authority from top to bottom
linking all managers at all levels.
Ans. :
Line of Authority / Scalar Chain Page No. 8
vi)This principle states that personnel must not frequently enter and exit the organisation.
Ans. :
Stability of tenure of Personnel Page No. 8
vii)Workers must be paid sufficiently as this is a chief motivation of Employees.
Ans. :
Principle of Remuneration Page No. 8
viii)This is the issue of Commands followed by responsibility for their consequences.
Ans. :
Authority and Responsibility Page No. 8
ix)This refers to the need of Managers to ensure and develop morale in the work place,
individually and communally.
Ans. :
Esprit de Corps / Team Spirit Page No. 9
16) There is a ___ and a ____ span of Management.
Ans. :
Wide, Narrow Page No. 9
17) Explain Flat Organisational Structure.
Ans.:
With a wider span, there will be less hierarchal levels, the organisational structure would be
flatter. Page No. 9
18)Explain Tall Organisational Structure.
Ans. :
With a Narrow span, the hierarchal levels, increases the organisational structure would be
tall. Page No. 9
19)Explain the Advantages of Tall Organisational Structure.
Ans. :
i)Cross Communication gets facilitates. i.e. operative staff communicating with the top
management.
ii)The chances of promotion increases with the availability of several job positions.
Page No. 9
20)Explain the Disadvantages of Tall Organisational Structure.
Ans. :
i)Less number of sub-ordinates under one superior requires more managers to be employed
in the organisation. Thus it would be very expensive in terms of the salaries to be paid, to
each senior.
ii)With more levels in the hierarchy the communication suffers drastically. It takes lot of time
to reach the appropriate points, and hence the actions get delayed.
iii)Lack of Co-ordination and Control, because the operating staff is far away, from the top
management. Page No. 9

21)Explain the Disadvantages of Flat Organisational Structure.

Ans. :
It would very difficult for a superior to manage a large number of subordinates at a time
and also may not listen to all efficiently. Page No. 9
22)Explain the Advantages of Flat Organisational Structure.
Ans. :
i)With a wider span of Management, Number of Managers gets reduced in the hierarchy and
thus the expense in terms of remuneration is saved.
ii)The subordinates relaxed and developed their independent spirits in a free work
environment, where the strict supervision is absent.
Page No. 9
23)Name some of the top ranked Indian Management Thinkers.
Ans. :
i) Nirmalaya Kumar, Professor, London Business School
ii) Vijay Govinda Rajan, Professor, Tuck School of Business, New Hampshire
iii) Pankaj Ghemawat, Professor, IESE Business School, Spain Page No. 10

Chapter 2 - Functions of Management

1) Identify the functions of management
a)Deciding in advance
Ans.: Planning
b) Increases the speed of performance of a work.
Ans.: Motivation
c) Included in every managerial function.
Ans.: Co-ordination
d) Evaluate the performance of the Employees.
Ans. : Controlling
e) Placement of Right Persons in the Right Jobs.
Ans. : Staffing Page No. 12 & 13

2) “Passing the Buck, the buck Stops here”. – Explain

Ans. :
To Shift or Re-assign the blame or responsibility (for something) to another person, group or
thing. Page No. 13
3)Write few things that motivate the Generation Z Workers.
Ans. :
(i)Flexible schedule
(ii)Skip Annual Performance Review
(iii)Embrace Tech Centred Work Place
(iv)Make them feel valued
(v)Be Transparent Page No. 15

Chapter 3 – Management by Objectives (MBO) Management by

Exception (MBE)
1)Give examples for MBE
Ans.:
For example, the Production Manager establishes Quality Control Standards wherein Five
defects per 100 units produced are permissible. So long as the number of defects does not
exceed 5, the supervisors / foremen (sub-ordinates) will handle the problem. Whenever
there are more than 5 defects, the matter will be reported to the Production Manager.
Page No. 19 , 20
2)What are general business exceptions in MBE ? What their cause might include?
Ans. :
General Business Exceptions are cases that deviate the normal behaviour in a business
process and need to be cared for in a unique manner, typically by human intervention.
Their cause might include :
Process deviation, infrastructure or connectivity issues, external deviation, poor quality
business rules, malformed data, etc.
3)Case Study
-The company gets 30% of Marginal Profit for every year, but not increasing the salary of
the employees for the last 3 years. The employees conduct the indefinite strike against the
company, assume you are the manager of the company. How to solve the problem with
using MBO or MBE ?
Ans. :
Both MBO and MBE approaches can be utilised to address the employee strike and resolve
the salary issue.
MBO focuses on setting clear objectives fostering collaboration and rewarding performance,
while MBE emphasises monitoring performance and intervening only when exceptions
occur.
As a Manager it is important to assess the Organisational Culture, employee preferences and
the nature of the problem to determine which approach would be more effective in solving
the issue. Page No. 21

Chapter 4 – Introduction to Financial Markets

1)What are the components of unorganised sectors ?
Ans. :
Money Lenders, Indigenous Bankers.
2)Identify the types of Financial Markets.
(i)A decentralised market with customised procedures.
Ans. : Over the Counter Market Page No. 24
(ii)A market for trading in Debt Instruments.
Ans. : Debt Market Page No. 24
(iii)A Centralised Organisation with Standardised Procedures.
Ans. : Exchange Traded Market Page No. 24
(iv)A Market for trading in Equity Shares of Companies.
Ans. : Equities Market Page No. 24
(v) A Market involved in the Sale of Securities for the first time by the issuers (Companies).
Ans. : Primary Market Page No. 24
(vi)A Market where the delivery of assets and payment of cash takes place at a pre-
determined time frame in future.
Ans.: Forward or Futures Market
(vii)A Market for short-term financial claim usually one year or less.
Ans. : Money Market
(viii) A Market where the delivery of the Financial Instrument and payment of Cash occurs
immediately.
Ans. : Cash or Spot Market
(ix) A Market for Long term financial claim for more than a year.
Ans. : Capital Market
(x) A Market for Securities that are already issued.
Ans. : Secondary Market. Page No. 24
3)What is Price Discovery Process ?
Ans. :
It is a process which determines Market Prices of the traded financial asset through
interaction of buyers and sellers or based on demand and supply.
Page No. 25
4) What are the classifications of financial assets?
Ans.: i) Marketable assets
ii) Non-marketable assets Page No 25
5) Assets which can be easily transferred from one person to another without much
hindrance is called -------
Ans.: Marketable assets Page No 26
6) Assets which cannot be transferred easily is known as --------
Ans.: Non marketable assets. Page No 26
7) Give examples for marketable assets.
Ans.: Shares of Listed Companies, Bonds of Public Sector Undertakings etc. Page No 27
8) Give examples for non marketable assets.
Ans.: Bank Deposits, Provident Funds, Pension Funds, National Savings Certificates,
Insurance Policies etc. Page No 27
9) What is the difference between financial assets and physical assets?
Ans.: Financial Assets are useful for production or consumption or for further creation of
Assets. For instance, A buys equity shares and these shares are financial assets since they
earn Income in future.
Physical Assets are not useful for further production of goods or for earning income. For
example X purchases Land and Building or Gold and Silver.
For instance, if a building is bought for residence purposes, it becomes a physical asset. If the
same is bought for hiring, it becomes a financial asset. Page No. 26

Chapter 5 – Capital Market

1) Raising Capital by new companies through sale of securities to the public is called ____
Ans. : Public Issue Page No. 29
2)When an existing company wants to raise an Additional Capital, securities are first
offered to the existing share holders on a pre-emptive basis is called ____
Ans. : Rights Issue Page No. 30
3) Selling Securities Privately to a small group of Investors, is called _____
Ans. : Private Placement Page No. 30
4) Name the Financial Institutions which were established the period between 1947 and
1973
Ans. : IFCI , ICICI, IDBI, UTI, SFC and SIDC Page No. 31
5)During which period there was a momentous growth in the secondary market ?
Ans. : 1980 to 1992 Page No. 31
6)What emerged as a powerful instrument of Resource Mobilisation in primary market ?
Ans. : Debentures Page No. 31
7)Name some committees, which were constituted in order to suggest measures to
revamp and restructure the working of the secondary market and cause buoyancy in the
primary market ?
Ans. :
(i)Committee on Organisation and Management of Stock Exchange.
(ii)Working Group on the Development of the Capital Market.
(iii)A study group for guidelines relating to Valuation and New Instruments.
(iv)A High Powered Study Group on Establishment of New Stock Exchange.
(v)A Committee on Trading in Public Sector Bonds and Units of Mutual Funds. P. No. 31
8)Name some of the factoring institutions operating in India
Ans. : (i) SBI Factors and Commercial Services Pvt. Ltd. – a subsidiary of State Bank of India
(ii)Can Bank Factors Ltd.- a subsidiary of Canara Bank - Page No. 32
9)What are the benefits of Mutual Fund ?
Ans. : High Return, Easy Liquidity, Safety and Tax Benefits to the investors Page No. 32
10)___ is the Largest , most liquid Market in the world, with an average traded value of
more than 5 trillion dollars per day. It includes all the currencies in the World and any
individual , company or country can participate in it.
Ans. : Foreign Exchange Market Page No. 32 & 33
11)____ Market manages the trading in primary products, which takes place in about 50
Major commodity markets, where financial transactions increasingly outstrip physical
purchases which are to be delivered.
Ans. : Commodity Market Page No. 33
12)What are called Hard Commodities ? Give Examples.
Ans. : Hard Commodities are raw materials, typically mined such as Gold, Oil, Rubber, Iron
and Ore Page No. 33
13)What are called Soft Commodities? Give Examples.
Ans.: Soft commodities are typically grown agricultural primary products such as Wheat,
Cotton, Coffee and Sugar. Page No.33
14) What is Derivatives Market?
Ans.: It is the financial market trading in financial instruments such as futures contracts and
options used to help control financial risk. The instruments derive their value mostly from
the value of an underlying asset that can come in many forms- stocks, bonds, commodities,
currencies or mortgages. Page No. 33
15) Gilt-Edged Market is also known as--------
Ans.: Government Securities Market. Page No. 33
16) What is Government Securities Market?
Ans.: It is a market for Government and Semi – Government Securities. Page No.33
17) Why Institutional based Investors invest in Government Securities?
Ans.: These Institutional Investors are compelled by law to invest a portion of their funds in
these securities. Page No. 33
18) What is the important features of the Government Securities ?
Ans. : i)The Securities are stable in value.
ii)Guaranteed return on investments.
iii) No speculation in securities Page No. 33
19)Which Market is predominated by Institutions such as LIC, GIC, PFs and the Commercial
Banks?
Ans.: Government Securities Market. Page No. 33
Chapter 6 Money Market
1.A treasury bill is of minimum for Rs_____.
Ans.: Rs. 25000 Page No.37
2. Each Certificate of Deposits or Commercial Paper is for minimum of _____.
Ans.: Rs.5 Lakhs. Page No. 37
3. In money market, transactions mostly take place over the phone and there is no_____.
Ans.: Formal place. Page No.37
4. Name new money market instruments that came into existence.
Ans.: Commercial Papers, Certificate of Deposits, Inter-Bank participation Certificates, Repo
Instruments. Page No. 38
5. Ninety one days Treasury Bills are issued at a fixed rate of ____percent as well as
through auctions.
Ans.: 4 percent Page No. 38
6. What is called Cut Off Rate?
Ans.: The discount rate on 364 days Treasury bills are quoted in the auction by the
participants and accepted by the authorities. Such a rate is called Cut Off Rate. Page No 39
7. The Certificate of Deposit is also known as ____.
Ans.: Negotiable Certificate of Deposit. Page No. 39
8. What are called Documentary Bills ?
Ans. : Bills that are accompanied by documents of titled goods are called documentary bills.
Page No. : 40
9. What are Clean Bills ?
Ans. : Bills drawn without accompanying any document are called clean bills. Page No. 40
10. Give Examples for documents of title to goods.
Ans.: Railway Receipt and Lorry Receipt. Page No. 40
11.Bills that are drawn and payable in India on a person who is resident in India are
called_____.
Ans.: Inland bills. Page No. 40
12. Bills that are drawn outside India and are payable either in India or outside India are
called______.
Ans.: Foreign Bills. Page No.40
13. ______ bills are those which do not arise out of genuine trade of transactions.
Ans.: Accommodation bills. Page No 40
14. State the forms of Government securities.
Ans.: The securities of Central and State Government take such forms as Inscribed Stock or
Stock Certificate, Promissory Note and Bearer Bond. Page No 41
15.The _____ of the RBI undertakes to issue government Securities.
Ans. : The Public Debt Office (PDO) Page No. 41
16. What is described as ‘Grooming’ ?
Ans. : Acquisition of securities nearing maturity through the stock exchanges by the RBI in
order to facilitate redemption is described as ‘grooming’. Page No. 41
17. Which market is the oldest most developed and leading money market in the World ?
Ans. : London Money Market. Page No. 42 ( Do you know fact )
18. Which market is ranked as the second well developed money market in the World next
only to the London money market ?
Ans. : New York Money Market. Page No. 42 ( Do you know fact )

Chapter 7 – Stock Exchange

1. ____ is considered as the old stock exchange in the world.
Ans. : Amsterdam Page No. 45
2. Amsterdam was established in the year ____
Ans. : 1962
3. Who established Amsterdam Stock Exchange in 1962 ?
Ans. : Dutch East India Company called ‘Verenigde Oost-Indische Compagnie’ called VOC.
4. Amsterdam Stock Exchange was later rechristened as ______
Ans. : “Amsterdam Bourse” Page No. 45
5. The First Stock Exchange in India was ______
Ans. : The Native Shares and Stock Brokers Association. Page No. 45
6.When was the first stock exchange in India was recognized by Government of India ?
Ans. : It was recognised on August 31, 1957 under Securities Contract(Regulation) Act 1956.
Page No. 45
7.After the recognition by Government of India, the First Stock Exchange became
______subsequently.
Ans. : The Bombay Stock Exchange. Page No. 45
8.____ is the most popular Stock Exchange in the World.
Ans. : London Stock Exchange. Page No. 46
9.____ Stock Exchange is the oldest Stock Exchange in India.
Ans. : Bombay Stock Exchange. Page No. 46
10.What are called Trading Circles ?
Ans. : Stock Exchange is a particular market place, where authorised brokers come together
daily on the floor of market called ‘Trading Circles’ and conduct trading activities. P. No. 47
11.What are called Market Quotations ?
Ans. : The prices at which securities are bought and sold are recorded and made public.
These prices are called Market Quotations. Page No. 46
12.The ____ has been promoted by 15 regional stock exchange and is based at Mumbai.
Ans. : Interconnected Stock Exchange of India Ltd.(ISE) Page No. 48
13.Difference between Speculation and Gambling. Page No. 50
Ans. :

Speculation Gambling

(1) It involves trading a financial instrument (1)There is no reasoning in gambling

involving high risk, in expectation of
significant returns
(2)The motive is to take maximum advantage (2)It accentuates(emphasizes) fluctuations in
from fluctuations in the market price and it is unethical and illegal.
(3)Speculations are prevalent in the markets (3) It does not perform economic function.
where movements of securities are highly
frequent and volatile(Change suddenly).

14.What are the categories of tradeable commodities ?

Ans. : Metals (eg. Gold, Silver, Copper)
Energy (eg. Crude oil, natural gas)
Agricultural (eg. Rice, Wheat, Cocoa)
Livestock and Meat (eg. Live Cattle, Lean hog) Page No. 52
15.What was popularly known Pherwani Committee ?
Ans. : High powered group on the establishment of new stock exchanges, headed by Shri
M J Pherwani Page No. 53
16.At present, What Markets are comprised in the National Stock Market in India ?
Ans. :
➢ National Stock Exchange of India Ltd. (NSE)
➢ Stock Holding Corporation of India Ltd. (SHCIL)
➢ National Clearing and Depository System (NCDS)
➢ Securities Trading Corporation of India (STCI)
➢ National Securities Depository Ltd. (NSDL) Page No. 53
17.NSE was incorporated in the year ____
Ans. : November 1992 Page No. 53
18.How trading takes place in NSE ?
Ans. : Through Computer Network, Members order for buying and selling within prescribed
price are matched by central computer with each other and instantly communicate to the
trading member. Page No. 53
19.NSE has _____ and _____ segments.
Ans. : Debt , Capital Page No. 53
20. SHCIL came into being in year___ and it started its actual operations in the year ___
Ans. : 1986, 1988 Page No. 53
21. SHCIL has it’s head office in _____
Ans. : Bombay Page No. 53
22. SHCIL is the _____ participant registered with SEBI and acts as an agent of National
Securities Depository
Ans. : First Depository Page No. 53
23. The Reserve Bank of India set up Securities Trading Corporation of India Ltd. In ____ ,
under the provisions of Indian Companies Act, 1956, jointly with Public Sector Banks and
All India Financial Institutions
Ans. : May 1994 Page No. 54
24. What is the main objective of establishing STCI ?
Ans. : To foster the development of an active secondary market for government securities
and bonds issued by public sector undertakings. Page No. 54
25. State the Authorised and Paid up Capital of STCI of which how much percentage is
contributed by RBI ?
Ans. : Rs. 500 Crores, 50.18 % Page No. 54
26.In December 1997, RBI divested part of it’s equity in STCI in favour of which Bank ?
Ans. : Bank of India, an existing shareholder of the company. Page No. 54
27.National Securities Depository Limited (NSDL) was inaugurated as the first depository
in India on ______
Ans. : November 8, 1996 Page No. 54
28.Trading in dematerialised securities on the National Stock Exchanged commenced in
____
Ans. : December 26, 1996 Page No. 54
29.The Bombay Stock Exchange also extended the facility of trading in dematerialised
securities from ______
Ans. : December 29, 1997 Page No. 54
30. The word ‘NIFTY’ originates from two words, ____ and ____
Ans. : National , Fifty Page No. 54
31. NIFTY consists of top ___ companies from ____ different sectors.
Ans. : 50, 24 Page No. 54
32. NIFTY is calculated by using the _____ method according to which weights are assigned
according to the size of the company.
Ans. : Market Capitalisation weighted method Page No. 54
33. NIFTY basically means the index of the ____ most actively traded stocks, from across
all sectors.
Ans. : 50 Page No. 54
34. NIFTY represents the top stocks of the ____ and when we talk about NIFTY going up, it
means all the heavy weight stocks of NSE across all sectors are moving up.
Ans. : NSE Page No. 54
35. Sensex is an index of the stocks in _____
Ans. : BSE (Bombay Stock Exchange) Page No. 55
36. Sensex has a list of ____ Stocks
Ans. : 30 Page No. 55
37. What is the criteria for picking a stock to be listed on Sensex ?
Ans. : Volume of the trade of that stock and total volume of the stock in BSE Page No. 55
38. BSE regularly prepares a set of 30 stocks which will be together called as _____
Ans. : SENSEX Page No. 55
39. Stocks are normally traded in BSE each day and price of Stocks is determined according
to ____ and ____
Ans. : Demand , Supply Page No. 55
40. What is the stock trading timings in India ?
Ans. : The normal trading time for equity market is between 9.15 am to 3.30 pm – Monday
to Friday Page No. 55
41. The Stock Market in India is closed on ____ and ____. Also closed on ____ holidays.
Ans. : Saturday, Sunday, National Page No. 55
42. The trading time for commodity market (MCX) is between ____ to ____ Monday to
Friday.
Ans. : 10 am to 11.30 am Page No. 55
43. The normal trading time for Agri community (NCDEX) is between ____ to ____ Monday
to Friday.
Ans. : 10 am to 5 pm Page No. 55
44. In addition there is no ____ break or ____ break in the Indian Stock Market timings.
Ans. : Lunch , Tea Page No. 55
45. The timings of the Indian Stock Market are divided into how many sessions ?
Ans. : 1 : Normal Session (also called continuous session-9.15 am to 3.30 pm)
2 : Pre-Opening Session ( 9.00 am to 9.15 am)
3 : Post-Closing Session (3.30 pm to 4.00 pm) Page No. 55
46. Give examples of Future Market.
Ans. : New York Mercantile Exchange, The Kansas City Board of Trade, The Chicago Board of
options Exchange and Minneapolis Grain Exchange. Page No. 55
47. What are the two types of Options ?
Ans. : Call Option and Put Option Page No. 55
48. What is Call Option ?
Ans. : It is referred to when the activity of investor purchase of financial instruments in near
future. Page No. 55
49. What is Put Option ?
Ans. : It is an activity by which the trader could sell the share as agreed upon in the original
option contract. Page No. 55
50. What is Leverage ?
Ans. : Options that help you profit from changes in share prices without putting down the
full price of the share. You get control over the shares without buying them outright
(completely). Page No. 56
51. What is Hedging ?
Ans. : They can also be used to protect yourself from fluctuations in the price of a share, and
letting you buy or sell the shares at a pre-determined price for a specified period of time.
Page No. 56
52. What is Dalal Street ?
Ans. : It is an area in downtown Mumbai, India.
It houses the Bombay Stock Exchange, other reputable financial institutions. Page No. 56
53. When did this area receive the name ‘Dalal Street’ ?
Ans. : It received the name Dalal Street after the Bombay Stock Exchange moved to the
area, in 1874 and became the first stock exchange, recognised by the Indian Government.
Page No. 56
54. What is the literal translation of Dalal in Marathi ?
Ans. : A Broker or an intermediary. Page No. 56
55. Today Dalal Street is a metonym for the entire ____ sector, much like Wall Street, in
the United States.
Ans. : Indian Financial Page No. 56
56. Where is Lombard Street ?
Ans. : London Page No. 56
57. Lombard Street has often been compared with ______
Ans. : Wall Street, in New York City. Page No. 56
58. Where Wall Street is located ?
Ans. : It is a Street, in Lower Manhattan, that is the original home of the New York Stock
Exchange and the historic headquarters of the Largest US Brokerages and Investment Banks
Page No. 56
59. The term Wall Street is also used as a _____ name for the financial and investment
community.
Ans. : Collective Page No. 56
60. Case Study given in Page No. 57
Ans. : In the conversation of Raj and Ajay,
Ajay talks about the importance of Capital Market and how it is needed for an individual and
an economy. So, you explain the meaning and importance of Capital Market, given in page
no. 28
Capital Market consists of series of channels through which savings of the community are
made available for industrial and commercial enterprises and for the public in general.
It directs these savings into their most productive use leading to the growth and
development of the economy.

Lesson 8. Securities Exchange Board of India (SEBI)

1. Name the regional offices of SEBI.

Ans. :
Northern – New Delhi
Eastern – Kolkatta
Southern – Chennai
Western – Ahmedabad Page No. 59
2. SEBI was made as an autonomous body by the government of India, on _____
and given statutory powers with SEBI Act 1992.
Ans. : 12th May, 1992 Page No. 59
3. What is the meaning of Insider Trading ?
Ans. : It means the buying and selling of Securities by Directors, Promoters, etc. who have
access to some confidential information about the company and who wish to take advantage
of this confidential information. Page No. 61
4. For effective regulative of Stock Exchange, the Ministry of Finance issued a notification
on ____ delegating several of its’ powers under the Securities Contract (Regulations) Act
to SEBI.
Ans. : 13th September, 1994 Page No. 62
5. SEBI is also empowered by the _____ to nominate 3 members on the Governing Body of
every Stock Exchange.
Ans. : Finance Ministry Page No. 62
6.What are the three key functions performed by SEBI?
Ans.: Quasi-legislative, quasi- judicial and quasi-executive.
It drafts regulations, conducts investigation & enforcement action and it passes rulings and
orders. Page No. 61
7.What is Demat Account ?
Ans. : A demat account holds all the shares that are purchased in electronic or
dematerialized form. Page No. 63
8.In Demat Account, purchases made by an investor are _____ to his Account and Sales are
____
Ans. : Credited, Debited Page No. 63
9.The securities held in dematerialized form are _____
Ans. : Fungible Page No. 63
10. Which company was the first to trade its’ shares in demat form ? How many Shares ?
Ans. : Reliance Industries, 100 Shares Page No. 63
11. Trading in dematerialized shares commenced on the NSE in _____
Ans. : December 1996 Page No. 63
12. In BSE dematerialization of shares commenced in the year _____
Ans. : December 1997 Page No. 63
13. Demat Account can be opened with ____ Balance of Shares. It also does not require
that a _____ balance be maintained.
Ans. : No, Minimal Page No. 64
14. PAN or Permanent Account Number is a unique ____ digit, alpha-numeric identity
allotted to each tax payer by the _____ department under the supervision of Central
Board of Direct Taxes.
Ans. : Ten Digit, Income Tax Page No. 64

15. Case Study Page No. 66

A) Aishwarya will have to provide any one mandatory detail with the broker.
(i)The shares can be sold by opening a demat account.
 (ii)She has to mention the number of shares of the cement company.
(iii)Also mention the name of the company, type of shares, amount of share capital
b) Identify any two functions that were performed by SEBI in this case study.
(i)The market price of their share were informed and controlled by SEBI
(ii)On regular inspection and conducting enquiries, SEBI was able to detect this irregularity.
The SEBI imposed a heavy penalty on Mr. Kumar Page No. 66

Chapter 9. Fundamentals of Human Resource Management

1.Give two points of differences between HR and HRM.
Ans. :

Human Resource (HR) Human Resource Management (HRM)

i)To accomplish personal and organisational i)The branch of management that deals with
objectives, human resource is needed. managing human resource is known as
human resource management
ii) Human Resource management is the
ii)Human Resources are the individuals who
function of management concerned with
acquired the required skills, talents,
hiring, motivating and maintaining people in
knowledge, competencies and capabilities in
an organisation.
the accomplishment of both individual and
organisational objectives.

Page No. 69, 70

Chapter 10. Recruitment Methods

1.Give two points of differences between advertisement and unsolicited applications

Advertisement Unsolicited Application

i)It is an expensive method for the employer i)It does not involve any expense for the
because advertisement incurs heavy cost. employer.
ii)The employer can advertise in Dailies, ii)The job seekers voluntarily apply for the
Journals, Magazines, etc. about the vacancies that are not yet notified by the
vacancies in the organisation. organisation.

Page No. 76
2. There are ____ firms that help in the process of recruiting through screening of
applications and finding the right person for the job, for which job they are paid service
charges.
Ans. : outsourcing Page No. 77
3. Pouching is also called as _____
Ans. : Raiding Page No. 77

Chapter 11. Employee Selection Process

1. What do you understand about Bio-Data ?
Ans. : Most of public sector undertaking, various ministries of government, Recruitment
boards supply pre-printed application form for selection of jobs. In this form, the candidate
fill the details about family background educational qualification, co-curricular activities
work experience, scale of pay drawn, area of expertise and so on. Page No.80
2. Why do you think the medical examination of a candidate is necessary ?
Ans.: The main purpose of medical examination is to find out
(a)Physical fitness of the candidate under selection to the job concerned.
(b)To protect the existing employees of business organisations from the infectious diseases
likely to be spread by the candidate selected.
(c)To check excessive expenditure in the treatment of selected employee after placement.
Page No. 84
3. What is mental age ?
Ans. : A person’s mental age is a measurement of their ability to think when compared to
the average person’s ability at that age. ( Do you know?) Page No. 82
4. What is the formula to calculate the flow of IQ level ?
Ans. : Mental Age x 100
Actual Age Page No. 82
5. Average Intelligence or Average IQ is ______
Ans. : 100 Page No. 82
6. If 10 years old has a mental age 13, therefore IQ = _____
Ans. : 130 that is above average Page No. 82
7. The French word ‘enter voir’ means _____
Ans. : to glimpse or to see each other. Page No. 82
8. Write various means of conducting online Interview.
Ans. : Skype, We chat, Google duo, Viber, WhatsApp or video chat application P.No. 83

9. In a Panel Interview, usually the panel comprises of - Whom?

Ans. : Chairperson, subject expert, psychological experts, representatives of minorities/
underprivileged groups, nominees of higher bodies and so on. Page No. 83
10. Write some common Interview Questions.
Ans. : (i)Tell me about yourself
 (ii)Why do you want to work for this organisation ?
(iii)Why are you interested in this position ?
(iv)what is your greatest strength ?
(Do you know ?) Page No. 84
11. Write some basic information which need to be included in a written contract of
employment.
Ans. : Generally it contains details like
(i) Job Title
(ii) Duties and Responsibilities
(iii) Scale of Pay Allowance, Increments
(iv) Working Hours
(v) Date when continuous employment start and basis for calculating service
(vi) Work rules
(vii) Grievance Procedure
(viii) Disciplinary Procedure
(ix) Special Terms and Conditions relating to Rights, etc. Page No. 84, 85
12.What is the duration of Probation or trial period ?
Ans. : One Year to Two Years Page No. 87
13. Why reference check is done in the selection process?
Ans.: To know the reliability and trustworthiness of the candidate. Page No 84

Chapter 12 Employee Training Method

1. My employees are my most important _____. When they go home in the evening
net worth drops to _______. A software Billionaire in Silicon Valley (USA)
Ans.: Assets, Zero Page No. 91
2. Case Study ( Page No.98 )
i) What kind of training program should she provide to her employees?
Ans.: She should provide on the job training program to her employees at the work
place.
ii) What are the benefits does the employees gain from that training program?
Ans.: The employees learn the techniques to operate the machineries. It will increase the
production.
3. Full form of PMKVY _____.
Ans.: Pradhan Mantri Kaushal Vikas Yojana . (Do you know) P.No.98
4. What is PMKVY?
Ans.: It is a unique initiative by the Government of India that aims to offer 24 lakh Indian
Youth meaningful industry relevant skill based training. P. No 98
 5. What are the benefits of PMKVY?
Ans.: Under this scheme, the trainees will be offered a financial reward and a
government certification on successful completion of training and assessment, which will
help them in securing a job for a better future. P.No.98
6. In what sectors does ICA (Infotech Private Ltd ) offer training under this initiative
PMKVY ?
Ans.:
✓ Agriculture
✓ Apparel, Manufacturing Made Ups and Furnishing
✓ Leather Products
✓ Media and Entertainment
✓ Handicrafts
✓ Telecom P. No.98
7. Success is 80% _____ and 20% _______
Ans.: Attitude, Aptitude P. No 98

Chapter 13 Concept Of Market And Marketer

1.Give examples for Produce Market Page No. 102
Ans. : Wheat Exchange Market of Hapur, The Cotton Exchange Market of Mumbai
2.Give examples for Manufactured Goods Market Page No. 102
Ans. : The Leather Exchange Market at Kanpur
3.Give examples for Bullion Market Page No. 102
Ans. : Bullion Markets of Mumbai, Kolkata, Kanpur, etc.
4.Give examples for Regulated Market Page No. 103
Ans. : Stock Exchange of Mumbai, Chennai, Kolkata, etc.
5.Give examples for Stock Market Page No. 103
Ans. : Stock Exchange of Mumbai, Chennai, Kolkata, etc.
6. Give examples for goods which can be marketed Page No. 104
Ans. : Consumer durables, Electronic Products, Machineries, Computers and it’s software
and hardware, etc.
7.Give examples of Services which can be marketed. Page No. 105
Ans. : Banking, Insurance, Finance, Hospitality, Tourism, Professional Consultation, etc.
8.Give examples of Experiences that can be Marketed. Page No. 105
Ans. : Amusement Park, Theme Park, Mountaineering, etc.
9. Give examples of Events that can be Marketed. Page No. 105
Ans. : Special Events, Shows, Exhibition, Fairs, Performances, Sports Events like World Cup,
Olympic, T-20, etc.
10.Give examples for Celebrities through whom goods can be marketed ? Page No. 105
Ans. : Cinema Stars, Sports’ Stars, Musicians and eminent personalities
11.Give examples for Properties that can be marketed Page No. 105
Ans. : Constructed House, Land, Plots, Buildings, Shares, Debentures, Mutual Funds, etc.
12.What an organisation can market itself in order to build an image for it ? Page No. 105
Ans. : By sponsoring events, adoption of villages, donations for charitable causes, corporate
social responsible activities, etc.
13.Give examples for information the most valuable product, that can be marketed today?
Ans. : Information collected by Libraries, Research Agencies, Educational Institutions, Book
Publishers, Broadcasting Company, Internet, etc. Page No. 105
14.State the functions of Marketer. Page No. 106
Ans. : i)Gathering and Analysing Market Information vii) Customer Support Services
ii)Market Planning viii) Pricing of Products
iii)Product Designing and Development ix) Promotion and Selling
iv)Standardisation and Grading x)Physical Distribution
v)Packaging and Labelling xi)Transportation
vi) Branding xii)Storage and Warehousing
15.Where is the Goat Market in Tamil Nadu ? Page No. 106
Ans. : In Aathur
16.Where is the Daily Flower Market in Tamil Nadu ? Page No. 106
Ans. : In Hosur

Chapter 14 Marketing and Marketing Mix

1.In Production Orientation, Evolution of Marketing was concentrated on the___ P.No.109
Ans. : On the Mass Production of goods, for the purpose of Profit.
2.In Sales Orientation, ____ became the dominant factor, without any efforts for the
satisfaction of the consumer needs. Page No. 109
Ans. : Selling
3.In Marketing Orientation of Evolution of Marketing, what were used as tools to boost
Sales ? Page No. 109
Ans. : Aggressive Advertising, Personal Selling, Large Scale Sales Promotion, etc.
4. Write the seven functions of Marketing, described by G.B. Giles Page No. 110
Ans. : i) Marketing Research v)Selling and Distribution
ii) Marketing Planning vi)After Sales Services
iii) Product Development vii)Public Relations
iv) Advertisement and Sales Promotion
5. According to Prof. Clark and Clark, How functions of Marketing Classified ?
Ans. : They are classified into three types, namely Page No. 111
i)Functions of Exchange
ii)Functions of Physical Supply
iii)Facilitating Functions
6.What does Functions of Exchange refer to ? Page No. 111
Ans. : Exchange refers to transfer of goods and services for Money’s worth. This process can
be divided into a)Buying and Assembling b)Selling
7. What are the two important functions under Functions of Physical Supply ? P. No. 111
Ans. : i)Transportation
ii)Storage and Warehousing
8.List out the facilitating functions in Marketing Functions. Page No. 112
Ans. : i)Financing iv)Standardisation vii)Packing
ii)Risk Bearing v)Grading viii)Pricing
iii)Market Information vi)Branding
9.State the various risks involved in marketing. Page No.112
Ans.: a) Time risk e) Risk arising from natural calamities
b) Place risk f) Human risks
c) Competition risk g) Political risks
 d) Risk of change in demand
10.According to Clark and Clark, what is the meaning of Market Information ? P. No. 112
Ans. : Market information means all the facts, estimates, opinions and other information
used in marketing of goods.
11.What is Standardisation ? P. No. 112
Ans. : Standardisation means establishment of certain standards based on intrinsic qualities
of a commodity. The quality may be determined on the basis of various factors like size,
colours, taste, appearance, etc.
12.What is Branding ? P. No. 112
Ans. : Branding means giving a name or symbol to a product in order to differentiate it from
competitive products.
13.What is Packing ? P. No. 112
Ans. : Packing means wrapping or crating of goods before distribution. Goods are packed in
packages or containers in order to protect them against breakage, leakage, spoilage and
damage of any kind.
14.What are the elements of modern marketing mix ? P. No. 114
Ans. : Performance, People, Process, Program.
15.Where is the weekly market for firewood in Tamil Nadu ? P. No. 114
Ans. : In Karaikudi
16.Where is the animal market for Horse in Tamil Nadu ? P. No. 114
Ans. : In Andhiyur

Chapter 15 Recent Trends in Marketing

1.What is Electronic Commerce? P.No.117
Ans.: If all activities , which directly or indirectly facilitate that exchange of goods done
through internet and other online environments is known as Electronic Commerce.
2.What is E- Business? P. No. 117
Ans.: If all the business transactions carried out through internet and other online tools is
called E- business.
3. Differentiate E- Commerce and E- Business. P. No. 117
Ans.:

S. No E- Commerce E- Business
1. E- commerce simply refers to the buying E- business goes a way beyond the
and selling of products and services simple buying and selling , of goods
through online. and services and much wider range of
business processes , such as supply
chain management , electronic order
processing and customer relationship
management.

4.What is E- Marketing? P.No.117

Ans.: E- marketing is the process of marketing of products and services over internet and
telecommunication networks.
5. What is E- tailing? P. No. 119
Ans.: E- tailing refers to selling of goods and services through a shopping website (internet)
or through virtual store to the ultimate consumer.
6.What is rural marketing? P. No. 120
Ans.: Rural marketing is a process of developing pricing, promoting and distributing rural
specific goods and services leading to derived exchange with rural customers to satisfy their
needs and wants.
7.What is viral marketing? P.No.121
Ans.: Viral marketing is marketing technique that impels the users to pass on a marketing
message to other users, creating a potentially exponential growth in the message’s visibility
and effect.
8.How is viral marketing effective ? P. No. 121
Ans. : It is able to generate interest and the potential sale of a brand or product through
messages that spread quickly like a virus from person to person.
9.What are the Service Companies that promote viral marketing ? P . No. 121
Ans. : Messenger, Hotmail company that owned by Microsoft
10. State few examples of viral marketing platforms P. No. 121
Ans. : Creation of moving, surprising or spectacular videos created through YouTube, and
shared on Facebook, Twitter and other channels.
11. What is Guerrilla Marketing ? Page No. 122
Ans. : This type of Marketing represents an advertisement strategy to promote
products/services on streets or other public places with monkey like shopping malls, parks
beach, etc. Consumers/ Customers are taken by surprise to make a big impression about the
brand which in turn creates an excitement about the brand through printing their brand on
shirts, creating a memorable experience in the mind of target audience, which results in
improvement of sales. It is suited to small companies which cannot set apart big
advertisement budget.
12. What is Multi-Level Marketing ? Page No. 122
Ans. : Multilevel Marketing is the marketing strategy wherein the direct sales companies
encourage the existing distributors to recruit new distributors to facilitate the sale of goods
and services. They are also known as Network Marketing, Referral Marketing or Pyramid
Selling.
13. Give few examples of Multi-Level Marketing companies. Page No. 122
Ans. : Tupperware and Amway are the direct sales companies that use the multilevel
marketing.
14. What is Referral Marketing ? Page No. 123
Ans. : Referral Marketing is referred to spreading the word about the product or service
through existing customers of business enterprises rather than through traditional
advertising.
Word of Mouth Marketing which occurs when others tell each other about the business is
also considered to be a form of Referral Marketing.
15. Identify the type of Marketing. A sells to B a product. In these sales A gets commission
on sale to B who in turn sells to C, D and E. A gets certain percentage commission on B’s
Sales to C, D and E. Page No. 122
Ans. : Multi-Level Marketing
16. What is Content Marketing ? Page No. 123
Ans. : Under this concept, products/services are presented impressively to target market,
which respond to the content delivered in the form of goods sales response and create a
loyalty.
17. State a few ways to reduce water usage in schools / home Page No. 124
Ans. : Fixing dripping taps, plumbing leaks and installing low flow toilets and low flow faucet
aerators in wash rooms. Use a sprinkling system converting to a drip system, will
dramatically reduce water usage.
18.Give examples for “Earth Friendly” vehicles. Page No. 124
Ans. : Toyota’s marketing of the Prius hybrid.
Volkswagen/ Mercedes Benz marketing of its vehicles as ‘clean diesel’ earth friendly
vehicles.

Chapter 16. Consumerism

1.Who is considered to be Father of Consumer Movement ? Page No. 130
Ans. : Mr. Ralph Nader
2.What are the functions of the Consumer clubs in Schools ? Page No. 136
Ans. : i)Monthly meetings and demonstrations for 1 hour after school hours on the first
Thursday of each month. Each month a topic / activity may be scheduled as in the model
calendar.
ii)Days of National and International importance to consumers may be celebrated in the
school / college. Poster/Speech / Essay Competitions can be organised at school level by the
Consumer Club to sensitise the students on the importance of the day.
iii)Field visits to local markets / Consumer Courts and door to door campaign in the local
community, etc. may be organized for at least 4 days in a year. It can be done on Saturdays
with prior arrangement.
iv)Minutes of each activity have to be recorded by the Student and Teacher Coordinator
jointly as properly document.
3. State Mahatma Gandhi’s quote about Consumerism. P. No 136
Ans.: “What is a man if he is not a thief who openly charges as much as he can for the goods
he sells ?”

Chapter 17 Rights, Duties & Responsibilities Of Consumers

1.Write about Consumers Rights in India. P. No. 140
Ans.: On 24th December 1986, Government of India enacted the Consumer Protection Act
1986 to
a)Ensure Rights of Consumers
b)Provide Remedies for deceived consumers
c)Check Unfair Business Practices & Restrictive Trade Practices
2.Which is a unique law in the world? P. No. 140
Ans.: Consumer Protection Act 1986

Chapter 18 Grievance Redressal Mechanism

1.Write Mahatma Gandhi’s saying about Consumer.
Ans.: “A customer is the most important visitor on our premises. He is not dependent on us.
We are dependent on him. He is not an interruption of our work. He is the purpose of it. He
is not an outsider of our business. He is part of it. We are not doing him a favour by serving
him. He is doing us a favour by giving us the opportunity to do so”
2.As per the Consumer Protection of Act 1986 and section_____ the establishment of a
District Forum by the State Government in each district is necessary today to protect the
interest of aggrieved consumers in that district. P. No.146
Ans.: Section 9
3.Every proceedings before the District Forum shall be deemed to be judicial proceedings
within the meaning of sections ____ and ____ of the Indian Penal Code and the Forum
shall be deemed to be Civil Court. P. No 146
Ans.: Sections 193 and 228
4.At present, there are more than ____ District Forums and more than ____ State
Commissions.
Ans.: 620, 30 P. No. 147
5.The National Consumer Disputes redressal Commission(NCDRC) at the apex is situated at
_____ P. No. 147
Ans.: New Delhi.
6.According to Section 21 of the Consumer Protection Act, 1986, What Jurisdiction shall the
National Commission have ? P. No. 148
Ans. : (i)To entertain a complaint valued more than 1 Crore
(ii)Revised the orders of State Commission
(iii)To call for the records and pass appropriate orders from the State Commission and
District Forum.
7.What Provision is given in Section 23 of Consumer Protection Act, 1986 ? P. No. 148
Ans. : Any person aggrieved by an order of National Commission may prefer an appeal
against such order to Supreme Court of India within a period of 30 days.
8.Which Department operates the Consumer Welfare Fund (CWF) and what is it’s objective
? P. No. 148
Ans. : The Department of Consumer Affairs (DCA)
The Primary Objective of Consumer Welfare Fund is to strengthen the Consumer
Advocacy Movement In India.
9.What are the steps involved in filing Complaint in Consumer Court? P. No 149
Ans.: The First step in filing a consumer complaint is to send a legal notice to the seller or
company. A legal notice must be drafted with the help of a consumer court lawyer and
include the following:
a)Details of the consumer like name, address, product or services purchase details of the
company, etc.
b)Necessary details of the problem faced and describe the deficiency in service.
c)Action taken by the company in response to the customer complaint.
d)Action expected from the company
e)Time period given to the company to take action
f)The legal action that will be taken upon failure by the company in sending a reply to the
legal notice.
10.Who can make a complaint? P. No. 150
Ans.: a) A consumer as defined under Consumer Protection Act 1986
b)A registered Voluntary Consumer Association
c)Central Government
d)State Government/ Union Territory
e)One or more consumer representing numerous consumers having the same interest.
11.When the complaints can be made? P. No. 150
Ans.: A complaint may be made in writing under the following circumstances:
a)Loss or damage is caused to the consumer due to the unfair trade practice of a trader.
b)If the article purchased by a consumer is defective.
c)If the services availed of by a consumer suffer from any deficiency.
d)When the price paid by a consumer is in excess of the price displayed on the goods or
when the price is in excess of the price fixed under any law in force.
e)Goods, which will be hazardous to life and safety, when used are being offered for sale to
the public in contravention of the provisions of any law.
12.How to register the complaints ? Page No. 150
Ans. : The complaint should be registered by the following ways :
(i)Complaint can be registered within 2 years from the date on which the cause of action
has arisen, to the date on which the completion from the deficiency in services.
(ii)Stamp Paper is not required for declaration.
(iii)Complaint can be registered, in person, by the Complainant or through his authorised
agent or by post addressed to the Redressal Agency.
(iv)Advocates are not necessary.
13.What are the particulars that should be furnished along with the complaint ? P.No.150
Ans. : The complaint should contain the following particulars :
(i)The name and complete address of the complainant.
(ii)The name and complete address of the opposite party / parties.
(iii)Date of Purchase of Goods or Services availed.
(iv)Amount paid for the above purpose.
(v)Particulars of goods purchased with number or details of services availed.
(vi)The details of complaint, whether it is against unfair trade practices/ supply of defective
goods/ deficiency in service provided/ collection of excess price should explicitly be
mentioned in the complaint petition.
(vii)Bills/ Receipts and copies of related correspondence, if any.
14.What relief can be ordered to the consumers ? Page No. 150
Ans. : The District forum / state commission can order the following reliefs to the consumers
(i)To remove the defects in the goods pointed out.
(ii)To replace the goods.
(iii)To return to the complainant the price of the goods.
(iv)To pay such amount of compensation for the loss or injury suffered by the consumer.
(v)To discontinue the unfair trade practice or not to repeat it.
(vi)To withdraw the hazardous goods from being offered for sale.
(vii)To provide the cost of expenditure incurred by the complainant.
15.What is the appeal provision ?
Ans. :
(i)Aggrieved by the orders, issued by the District Consumer Redressal Forum Appeal, petition
can be filed before State Commission Dispute Redressal Commission within 30 days from the
date of receipt of orders.
(ii)Aggrieved by the orders, issued by the State Consumer Dispute Redressal Commission
appeal petition can be filed before National Consumer Dispute Redressal Commission within
30 days from the date of receipt of orders.
(iii)Aggrieved by the orders, issued by the National Consumer Dispute Redressal Commission
appeal petition can be filed before Supreme Court of India within 30 days from the date of
receipt of orders.
(iv)No Fees charged for registering an appeal petition before State / National Consumer
Dispute Redressal Commissions.
(v)The Appeal Petition has to be filed with the grounds for appeal with copies of orders of
the lower redressal agencies and registering procedures are same, as is being done in the
case of registering complaint.
16.When was the International Organisation of Consumers Unions (IOCU) was first
established in? Why? How many members are there? Where is its head office and regional
offices? Page No. 151 (Do you Know ?)
Ans. : 1960, to create cross-border campaigns and share knowledge; it has over 250
member organisations in 120 countries , its head office is based in London, England, with
regional offices in Latin America, Asia, Pacific, Middle East and Africa.
17.What does the Students Consumer Club do? P. No.151
Ans.: They may create awareness about the products and services. They can motivate the
parents about the consumer awareness of the following:
i)MRP of the Product.
ii)Expiry of the Product.
iii)Quality of the Product (ISI, ISO, and Agmark etc.)

Chapter 19 Environmental Factors

1.Understanding the business environment enables to identify the opportunities
available- Give example. P. No.154
Ans.: For example in the 80’s Dr. Reddy identified the need for quality service in
healthcare and started Apollo Hospitals. He was a pioneer in corporate hospital care and
thus enjoys the first ever advantage in offering world class medical facilities in India.
2.Understanding the business environment helps the firms to identify threats which
may affect the business – Give example. P. No. 154
Ans.: For example Japanese camera film making company Fuji Films which had global
presence for over 50 years was affected with the advent digital camera.
3.The vision and objectives of a business guides its operations and strategic decisions-
Give example. P. No. 155
Ans.: Example ‘Amul taste of India’ Gujarat Co-operative Milk Marketing Federation
GCMMF Vision: Liberate our farmers from economic oppression and lead them to
prosperity.
4.Which two Indian companies are named as the world’s most ethical companies by
American Think Tank Ethisphere Institute? P. No. 155
Ans.: TATA Steel and WIPRO
5.The public group has the ability to make or mar a business. Many companies had to
face closure due to actions by public- Give example P. No.156,157
Ans.: For example the closure of Sterlite Copper factory in Thoothukudi due to protests
by environment protection group in 2018.
6.Name the committees which were constituted to give a comprehensive framework
for Corporate Governance in India? P. No. 159
Ans.: Kumara Mangalam Birla Committee, 2000
Narayana Murthy Committee 2003
Adi Godrej Committee 2008
And presently Uday Kotak Committee
7.What are the outcome of discussion by these committees ? P. No. 159
Ans. : The present corporate governance norms, included in the companies Act 2013,
SEBI Listing Regulations and Clause 49 of the Listing Agreement are the outcome of
discussion by these committees.
8.According to Indian Corporate Governance framework, what are the requirements
for listed companies ? P. No. 160
Ans. : The Indian Corporate Governance framework requires listed companies :
(i)to have independent directors on the board; at least one-third of the directors have to
be independent directors.
(ii) to have at least one independent women director,
(iii) to disclose all deals and payments to related parties,
(iv)to disclose managerial compensation,
(v)CEO and CFO to sign stating that the governance norms have been complied within
the financial statements.
9.What are the benefits of presence of active governance norms in a company ? P.No. 160
Ans. : Enhances the image of the company, increases investor confidence and safeguards
the interests of the shareholders and the society.
10.What does the new norms laid down in Companies Act 2013 bring out ? P.No. 160
Ans. : It brings in transparency in corporates have raised the governing standards of
Indian Companies as per International Standards.
11.What are the five core TATA values underpinning the way to do business ? P.No. 161
Ans. : (i)Integrity (ii)Excellence (iii)Unity (iv)Responsibility (v)Pioneering

Chapter 20. Liberalisation, Privatisation and Globalisation

1.Which is the base for New Economic Policies in various countries of the world ? and
what was it about ? P. No. 164
Ans. : It is Dunkel Draft, which was about the General Agreements on Trade and Tariff.
Mr. Arthur Dunkel (1932-2005) submitted a 22,000 page document for the World Trade
Organisation and followed by many Nations to adopt their respective new economic
policies. India is one among such nations to commit itself to the New Economic Policy in
1991.
2.What are the non-liberalised Industries ? P. No. 164
Ans. : Drugs & Pharmaceuticals, Hazardous Chemicals, Explosives, Tobacco Products,
Alcoholic Drinks, and Electronic and Aerospace and Defence Equipment.
3. Currently How many Industries are under compulsory licensing ? P. No. 164
Ans. : Five Industries
4.Currently which industry has been liberalised ? P. No. 164
Ans. : Drugs and Pharmaceuticals Industry
5.Under Liberalisation, investment limit of the small scale industries has been raised to
Rs. ______ P. No. 164
Ans. : 1 Crore
6.Fill up P. No. 165
The impact of Liberalisation on Indian Economy was well afforeciable with the
phenomenal growth by contributing $ ______ to the World GDP so also all the Indian
Economy become the ______ largest amongst world leading economies.
Ans.: 7 Trillion, Seventh
7.Give some examples of Public Sector Enterprises, recently privatised P. No. 166
Ans. : (i) Bharat Aluminium Co. Ltd. (BALCO)
(ii) Hindustan Zinc Ltd. (HZL)
(iii) Indian Petrochemicals Corporation Ltd. (IPCL)
(iv) Maruthi Udyog Ltd. (MUL)
(v) Modern Food Industries Ltd. (MFIL)
8.Which was the first ever company privatised in India ? P. No. 166
Ans. : India Scooters Ltd.
9.In the contraction of public sectors, How many Industries were reduced ? P. No. 166
Ans. : From 17 to only 8 Industries and currently only Atomic Energy, Defence And
Railways are Government Monopoly Industries i.e. Public Sector Industries in the
Country.
10.In Sales of Shares of Public Sectors to the Private Sectors, has increased from ____
to _____ in the year 2011 and after. P. No. 166
Ans. : 45 % to 55 %
11.Who introduced the policy of liberalisation in India in 1991? P. No.169
Ans.: The former Prime Minister of India, Dr Manmohan Singh.
12. Who is considered as the architect of Indian economic reforms ? P. No.169
Ans.: The former Prime Minister of India, Dr Manmohan Singh.

Chapter 21 The Sale Of Goods Act 1930

1.Prior to the Sale of Goods Act, Contract of sale was governed by which Act? P. No 171
Ans.: Chapter 7 of the Indian Contract Act 1872.
2.Why the general provisions of Indian Contract Act is continue to apply to the
Contract of Sale of Goods? P. No 171
Ans.: Contracts for the Sale of Goods are subjected to general legal principles applicable
to all contracts, hence Indian Contract Act continue to apply.
3.Sale means selling the_____ of the goods to the buyer for a price besides transferring
the physical possession of goods. P. No 172
Ans.: Ownership.
4.Similarly Purchase means buying the_____ of goods from a seller for a price. P. No 172
Ans.: Ownership.
5.In a Contract of sale, the buyer and seller should be of two ____ persons. P. No 172
Ans.: Different
6.If a person buys his own goods there is no ____ P. No. 172
Ans. : Sale
7.On the dissolution of partnership when the surplus assets including goods were
distributed among the partners the court held that it was not a sale attracting sales
tax. Why ? P. No. 172
Ans. : The Partners themselves were joint owners of the goods and they could not be
both sellers and buyers
8.When the goods of a person are sold in execution of a decree, he himself may buy
the goods to ________ P.No. 172
Ans. : Retain their Ownership
9.A mere transfer of possession does not amount to _____ P.No. 172
Ans. : Sale
10. What is called Price in contract of sale of goods ? P.No. 172
Ans. : The Monetary consideration for the goods sold.
11. If the property in goods is transferred immediately to the buyer it is called a _____
P.No. 172
Ans. : Sale
12.If the transfer of property takes place at a future date or in fulfilment of certain
condition it is called an ______ P. No. 172
Ans. : Agreement to Sell
13.Where the goods sold under the contract of Sale are destroyed the loss falls
squarely on the ____ as the ownership in the goods has already passed on to the latter
even though the goods are in the possession of seller. P. No. 173
Ans. : Buyer
14.Where the goods under the agreement to sell are destroyed, the loss falls squarely
on the _____ as the ownership is still vested with the seller even though the
possession of the goods is with the buyer. P. No. 173
Ans. : Seller
15.When the buyer fails to pay the price under the contract of Sale of goods What can
the seller do ? P. No. 173
Ans. : The seller cannot seize the goods, but the seller can only file a case against the
buyer for violating the contract.
16.When the buyer violates the contract, under the agreement to sell What can the
seller do ? P. No. 173
Ans. : The seller can re-posses the goods from the buyer. He can sue for damages for
violation of the contract.
17.What is an executed Contract ? P. No. 173
Ans. : A completed contract
18.What is an executory Contract ? P.No. 173
Ans. : A Contract yet to be performed by the party to the contract.
19.Under the Contract of Sale, if a buyer becomes insolvent before he pays for the
goods even though the goods sold are under the possession of the seller. What should
the seller do ? P. No. 173
Ans. : The Seller has to return the goods to the Official Receiver or Assignee as the
ownership of goods has already been transferred to the buyer. The Seller can claim only
rateable dividend. The Seller have to inevitably part with the possession of the goods
under his custody.
20.Under the Agreement to Sell, if the Buyer becomes insolvent, before the payment
of the Price, What the Seller can do ? P. No. 173
Ans. : The Seller can retain the goods if they are under his possession or even He can
repossess the goods even if the possession of goods is transferred to the buyer. In other
words, the Seller is not bound to loose possession of the goods.
21.If the seller becomes insolvent before delivering the goods to the buyer, how can a
buyer claim the delivery of goods? P. No.173
Ans.: The buyer can claim the delivery of the goods from the Official Receiver or
Assignee as the ownership is already passed on to the buyer.
22.Under the agreement to sell, if the buyer has already paid the price of goods or
made any advance, how can the buyer claim his due from the seller? P. No. 173
Ans.: The buyer can claim only rateable dividend and not the goods because the
ownership in the goods is not yet passed to him.
23.What does the term actionable claim mean? P. No. 173
Ans.: The term actionable claim means debt secured by a mortgage of immovable
property, Fixed Deposit receipt, Dividend Due on Shares, Amount due under LIC policy,
Claim for rent which falls due in future etc.
24. Things attached to the land or forming part of the land agreed to be cut off from
the land before sale(eg. Trees grown on the land agreed to be sold after harvest)- How
these items treated under the contract of sale? P. No.173
Ans.: Thes items treated as goods.
25.Identify the type of goods. P. No. 174,175
a) Those goods which are owned or possessed by the seller at the time of contract of
sale.
Ans.: Existing goods.
b) Those goods which are identified and agreed upon at the time of contract of sale.
Ans.: Specific goods.
c) If a buyer selects a particular variety of saree after examining several other sarees,
the one denotes ___ goods.
Ans.: Specific goods
d)These goods which are not identified and agreed upon at the time of contract of
sale.
Ans.: Unascertained goods.
e) A wants to buy a car from a showroom where different models at different prices
have been displayed. All these displayed models represent_____ goods.
Ans.: Unascertained goods.
f) Goods which become ascertained subsequent to the formation of the contract.
Ans.: Ascertained goods.
g) A contractor agrees to supply 100 bags of rice to B for giving marriage feast. It is a
___ goods.
Ans.: Future goods.
h)Where the bus company agrees to buy spare parts from a particular supplier, it is an
example of _____ contract.
Ans.: Future.
i)Future goods represents ____ goods.
Ans.: Ascertained goods.
j)A agrees to sell a particular painting work, provided he gets from C. In this case, the
painting work represents _____ goods.
Ans.: Contingent goods.
k)A rice merchant agrees to supply 10 bags of Basmati rice from Pakistan if he get
supplies. In this case, Basmati rice representing ____ goods may or may not be
available to the rice merchant.
Ans. : Contingent goods.

26. Distinguish the term Property in goods and Possession of goods. P. No. 176
Ans. : Property in goods means the ownership of goods while Possession of goods refers
to the custody of goods or control over the goods.
27.What is called Passing of Property ? P. No. 176
Ans. : Transfer of Title of a Property.
28.B selects certain books in a bookshop. The price is settled. B arranges to take
delivery of Books next day, through his servant and agrees to pay for the books on the
first of next month. The books were destroyed by Fire in the same evening. In this case,
who has to bear the loss and pay for the books selected ? Why ? P. No. 176
Ans. : B has to bear the loss and pay for the books selected since the ownership has
already passed on to B.
29.There was a Contract for a sale of Machine, weighing 30 tonnes and installed in a
concrete floor. Some parts of the Machine were damaged during the process of
removal. In this case, can the buyer refuse? Why? P. No. 176
Ans. : In this case, the buyer is entitled to refuse to buy the Machine, as it is not in a
deliverable condition.
30.A sold some quantity of Wheat to B at the rate of Rs. 10 per Kg. However, A had to
weigh the wheat in order to know the price of the entire quantity of wheat sold to B.
In this case, when will the ownership of the Wheat be transferred to B ? P. No. 176
Ans. : In this case, the ownership of the Wheat shall transfer to B, as soon as A weighs
the Wheat. B Comes to know about the completion of the weighing activity.
31.What is Appropriation ? Give one example. P. No. 177
Ans. : It is a bilateral act of the seller and the buyer who identify and isolate the goods. In
other words where the goods identified and isolated put into boxes or any container
with the consent of the buyer, it is called appropriation.
Example : A agrees to sell B the oil to be produced by him. The oil was filled by A into the
bottles supplied by B. It is an effective appropriation and the ownership of oil passes to
the buyer, when the oil is filled into the bottles. In this case, the buyer gave his consent
to the appropriation by supplying the bottles.
32.A offers to sell his scooter to B and delivers it to B for trial run for two days. B
communicates his acceptance after two days. In this case, Is the ownership passed on
to B ? P. No. 177
Ans. : In this case, Ownership passes right from the time of his communication of his
approval.
33. A delivers some Jewellery to B on sale or return basis. B pledged the Jewellery with
C. In this case, Can A take action against C or B? P. No. 177
Ans. : In this case, the ownership of the jewellery had transferred to B as he adopted the
transaction by pledging the jewellery with C. Therefore, A has no right against C. He can
only recover the price of jewellery from B.
34.X delivers some goods to Y on sale or return for 7 days. Y neither returns nor gives
notice of rejection of goods even after the expiry of 7 days. The goods were destroyed
by fire on the 8th day. In this case who will bear the loss? P. No.178
Ans.: In this case Y has to bear the loss as the ownership has passed on 8 th day after the
lapse of stipulated period i.e 7 days
35.S Ltd agreed to sell a tractor to Municipality on the condition that if the latter was
satisfied with the tractor, it could reject it. The municipality used the tractor for a
month and a half and then wanted to reject. In this case, was the property in the
tractor passed to the Municipality? P. No 178
Ans.: In this case, the property in the tractor is deemed to have passed to the
municipality as reasonable time elapsed.
36.A intends to buy a motor bike from B. A insists that the bike should give him a
mileage of 50 kms per litre. He prefers to have red colour. B a mechanic gets a bike
which gives him 55 kms per litre. But colour is green. Can A cancel the contract?
P.No.178
Ans.: In this case A cannot cancel the contract since A is very particular about the
mileage, it is a Condition to the contract. That part of contract is fulfilled by B. However,
A can ask the mechanic B to bear the cost of painting it with red colour.
37. R purchased a motor car from D and used it for 4 months. Later after six months,
true owner came and proved that he is a true owner. Should the car be returned to the
true owner? What R should do? P. No. 179
Ans.: In this case, R has to return the to the true owner and claim the full price paid by
him from D.
38.A has bought a machinery from B who described it to be one year old. After buying
the machinery and using it for a month, A came to know that it is very old machinery.
In this case, can A return the machinery to B? P. No. 179
Ans.: Yes. A can return the machinery to B on the ground that machinery is not as per
the description i.e not recent one.
39.A bought set of false teeth from a dentist. The set did not fit into his mouth. Can A
reject the set? P. No. 180
Ans.: A could reject the set as the purpose for which it was bought was known to the
dentist.
40.Mention some items which cannot be regarded as merchantable under such names.
P. No. 180
Ans.: A watch that will not keep time, a pen that will not write and tobacco which will
not smoke.
41.F bought milk from A a dairy owner. The milk was contaminated with germs of
typhoid fever. F’s wife on taking the milk became infected and died of it. Can A be held
liable for it? P. No. 180
Ans.: Yes A was held liable in damages.
42.X sold certain drugs by auction to Y. In the auction sale, there is a trade custom to
declare any defect in the goods. But X sold the goods without declaration. Later, such
goods were found to be defective. Can Y claim the price? P. No. 180
Ans.: In this case, Y can claim refund of the price on the ground of breach of custom.
43. When the seller will lose the right to lien on goods? P. No. 181
Ans.: a) When the seller delivers the goods to a carrier or other bailee for the purpose of
transmission to the buyer without reserving the right of disposal of the goods.
b)When the buyer took the delivery from booking office.
c)When the seller waives his right of lien.
44.When the seller has the right of stoppage in transit? P. No.181
Ans.: Where the seller has delivered the goods to a carrier or other bailee for the
purpose of transmission to the buyer, but buyer has not acquired them, then the seller
can stop the goods and regain the possession. In other words, goods must be neither
with the seller nor with the buyer but should be in the hands of a carrier. Further, the
buyer must have become an insolvent.

Chapter 22 The Negotiable Instruments Act 1881

1.What does the word negotiable mean? P. No.185
Ans.: The word negotiable means transferable from one person to another in return for
consideration.
2.Define Negotiable instruments. P. No. 186
Ans. : According to Section 13 of the Negotiable Instruments Act 1881, a negotiable
instrument means a promissory note, bill of exchange or cheque payable either to order
or to bearer.
3.A sold certain goods to B. B gives the bill of exchange to A for the price. Later B
refuses to pay the bill of exchange on the ground that the goods supplied are defective.
Meantime, A endorsed the bill to C. In this case, will title of C be affected ? P.No.186
Ans. : In this case, B’s defence is of no value. C is the holder in due course. His Title is not
affected by certain defence like fraud or misrepresentation or any mistake.
4.Match the documents with the section. P. No. 186, 187, 188, 189, 192,193
(i) Negotiable Instruments Act 1881 (a) Section 6
(ii) Bill of Exchange (b) Section 13
(iii) Cheque (c) Section 123
(iv) Promissory Note (d) Section 124
 (v) General Crossing (e) Section 15
(vi) Special Crossing (f) Section 4
(vii) Endorsement (g) Section 5
Ans. : (i)-b, (ii)- g (iii)- a (iv)- f (v)- c (vi)- d (vii)- e
5. What does the word ‘Person’ include in Negotiable Instrument ? P. No. 188
Ans. : The word Person includes Bodies Corporate, Local authorities, Associations,
Holders of Office of an Institution, etc.
6. A Bank Note or a Currency Note is not a ______ P. No. 189
Ans : Promissory Note.
7. A Promissory Note originally made payable to bearer is _____ P. No. 189
Ans. : Illegal
8.The amount payable must be in ____ money of India P. No. 189
Ans. : Legal Tender money
9. A note containing a promise to pay certain amount of ____ money is not a
promissory note. P. No. 189
Ans. : Foreign money
10.Alternative promissors, in promissory note, are not permitted in law. Why ? P.N.189
Ans. : Because where Liabilities lies, no ambiguity must lie
11.The Cheque is always payable on _____ P. No. 181
Ans. : Demand
12.Foreign Bills of Exchange are drawn in sets of ____ P. No. 190
Ans. : Three
13.In Promissory Note, How many Parties are there ? P. No. 191
Ans. : Two Parties – the maker and the payee
14. In Cheque and Bill of Exchange, How many Parties are there ? P. No. 191
Ans. : Three Parties – the drawer, the drawee and the payee
15. In case of ____ bill, acceptance by the drawee is necessary before he can be made
liable on it. P. No. 190
Ans. : Time bill
16. What is ‘Allonge’ ? P. No. 193
 Ans. : When there is no space for making further endorsements, a piece of paper can
be attached to the negotiable instrument for this purpose. This piece of paper
is called Allonge.
17. If the endorsee name is wrongly spelt, What should the endorsee do ? P. No. 193
Ans. : The endorsee should sign the same as spelt in the instrument and write the
correct spelling within brackets after his endorsement.
18. What must be omitted in the endorsement ? P. No. 194
Ans. : The prefixes or suffixes added to the names of the payees or endorsees must
be omitted.
19. If the Payee is an illiterate person, How can he endorse the instrument ? P. No. 194
Ans. : He can endorse by affixing his thumb impression on the instrument. But it
must be duly attested by somebody who should give his full address there on.
20. What does not constitute a regular endorsement ? P. No. 194
Ans. : Signing in Block Letters.
21. A person duly authorised to endorse a cheque or bill, must indicate that he is
signing in it on behalf of his principal, should use which appropriate words ? P.No. 194
Ans. : Words such as ‘for’, ‘on behalf of’ , ‘per pro’
22.Why emergency holidays are declared under Negotiable Instruments Act ?
Ans. : Refer Page No. 194
23.Explain MICR
Ans. : Refer Page No. 194
24. Explain IFSC
Ans. : Refer Page No. 194

Chapter 23. Elements of Entrepreneurship

1.What does the term ‘Entrepreneurship’ denote ? P. No. 199
Ans. : The term entrepreneurship denotes the process of setting up one’s own business
venture as distinct from pursuing any other economic activity or any employment or
practicing some profession.
2.The person who establishes business is termed as ______ P. No. 199
Ans. : Entrepreneur
3.The output of an Entrepreneurial process ends up in establishing and _____ P.No.199
Ans. : Enterprise
4.List some non-financial support provided to Women Entrepreneurs. P. No. 206
Ans. :
(i)Financial Counselling and Training,
(ii)Business Advisory Service
(iii)Handling Legal Barriers
(iv)Client Research
(v)Establishing Commercial Linkages
(vi)Collateral Free Loans, etc.
5.Name some Associations which creates opportunities for Women Entrepreneurs.
P.No. 206
Ans. :
a)Self-help Groups (SHG)
b)Federation of Indian Women Entrepreneurs (FIWE)
c)Women’s India Trust ( WIT)
d)Small Industries Development Organisation (SIDO)
e)National Bank for Agriculture & Rural Development (NABARD)
6.Name some schemes created by Government for Women Entrepreneurs.
P.No.206,207
Ans. :
i)standup India scheme for women entrepreneur
ii)Mahila Coir Yojana
iii)Mahila E-Haat
iv)Magalir Udavi Scheme
v)Mudra Yojana Scheme for Women
vi)Udyogini Scheme
7.Name some training schemes implemented for promoting self employment of
Women by Government of India. P. No. 207
Ans. :
a)Support for Training and Employment Program of Women (STEP)
b)Small Industry Service Institutes
c)State Financial Corporations
 d)National Small Industries Corporations
e)District Industrial Centres
8.What is Consortium of Women Entrepreneurs of India (CWEI) ? P. No. 207
Ans. : CWEI was registered as Civil Society in the year 1996, which is a non-profit
organisation in New Delhi. It is accredited by Government of India. It is the member of
National Board, Ministry of MSME and is working closely with Ministry of Rural
Development in the public, private partnership to support below poverty line families in
India.
9.What are the functions rendered by CWEI ? P. No. 207
Ans. : i)They are acting as a spring board for enterprises started by the women.
ii)It is helping women achieve high economic empowerment.
iii)It is spreading knowledge to Women Entrepreneurs about various government
schemes.
Chapter 24. Types of Entrepreneurs
1.Identify the type of Entrepreneur. P. No. 216 - 220
(a)An Entrepreneur who is always focussed on introducing a new project or
introducing new in the venture already started.
Ans. : Innovating Entrepreneur
(b)An Entrepreneur who simply imitates existing skill, knowledge or technology
already in place, in advanced countries.
Ans. : Imitative Entrepreneur
(c)These Entrepreneurs are said to be conservatives and sceptical about plasticising
any change in their organisation. They are of risk averse type. But they adopt
themselves to the changes only at the last resort.
Ans. : Fabian Entrepreneur
(d)Entrepreneurs who are totally opposed to changes unfolding in the environment.
and they never adopt to change.
Ans. : Drone Entrepreneur
(e)Entrepreneurs who conceives an idea for a new product or service and establishes
a business enterprise and takes up production, operation, and pursues marketing
activities.
Ans. : Business Entrepreneur
(f)Entrepreneurs who restrict themselves to buying and selling finished goods.
Ans. : Trading Entrepreneur
(g)Entrepreneurs who manufacture products to cater to the needs of consuming public
after identifying the need left unfulfilled by the manufacturer hitherto.
Ans. : Industrial Entrepreneurs
(h)Entrepreneurs who assemble all the resources and put in play organisation to run
the business on a day to day basis
Ans. : Corporate Entrepreneurs
(i)Entrepreneurs who raise Farm Products and Market them.
Ans. : Agricultural Entrepreneurs
(j)Entrepreneurs who buy the goods in small quantity from numerous wholesalers and
make it available different products of different brands under one roof, to end
consumers.
Ans. : Retail Entrepreneurs
(k)Entrepreneurs who supply service products to end Consumers.
Ans. : Service Entrepreneurs
(l)Entrepreneurs such as those craftsmen like welder, fitter, moulder, carpenter, turner,
etc.
Ans. : Technical Entrepreneurs
(m)Entrepreneurs who do not possess any technical competence to produce the goods,
or service but have special talents to market the products successfully.
Ans. : Non-Technical Entrepreneurs
(n)Entrepreneur who is having rich expertise in starting a venture but lack interest in
continuing the venture as a manager or as a owner. He/ She sells out the venture
started by him/her to someone else after it’s successful take off.
Ans. : Professional Entrepreneur
(o)Entrepreneur who are propelled to enter into venture by psychological and
economic motives. Their egos do not permit them to work for somebody else.
Ans. : Pure Entrepreneur
(p)Entrepreneur who is inspired to take up entrepreneurial activity, through friendly
policies put up in place by the Government.
Ans. : Induced Entrepreneur
(q)Entrepreneur who are motivated to take up venture by the desire for self-fulfilment
and they are motivated to produce and market product or service by sheer prospect of
making huge profit.
Ans. : Motivated Entrepreneur
(r)Entrepreneurs who have natural inclination to start venture. They are supposed to
be bold, optimistic and enterprising persons. They have passion for meeting the
challenges.
Ans. : Spontaneous Entrepreneur
(s)Entrepreneurs who do not have any family background or prior exposure to the
venture initiated by them.
Ans. : First Generation Entrepreneur
(t)Entrepreneurs who keenly observe the dynamics of the market with eagle eye and
identify the unfilled gaps, if any in product or service marketed. He/ She takes
initiative in starting the venture to cater to the unmet needs of the market.
Ans. : Modern Entrepreneur
(u)Entrepreneur who starts his own venture as a family business. They engage in
business as a matter of routine. Their prior exposure to business environment impels
them to commence venture of their own.
Ans. : Classical Entrepreneur
(v)Entrepreneur who commences his entrepreneurial activities in urban areas.
Ans. : Urban Entrepreneur
(w)Entrepreneurs who start ventures in rural locations.
Ans. : Rural Entrepreneur
(x)Ventures started by individual either singly or collectively at their own risk, after
mobilising various resources in order to earn profit.
Ans. : Private Entrepreneur
(y)Trading / Industrial Ventures started by Government
Ans. : State Entrepreneurship
(z)Ventures started and owned by both Private individuals and Government.
Ans. : Joint Entrepreneurship

Chapter 25. Government Schemes for Entrepreneurial Development

1.How an Entrepreneur has to get power connection ? P. No. 229
Ans. : Entrepreneur has to make application to Asst. Divisional Engineer of State
Electricity Board for Power Connection, after paying security deposit and fulfilling the
official formalities prescribed.
 2.How an Entrepreneur obtain Statutory License ? P. No. 229
Ans. : An Entrepreneur has to obtain Municipal License from the authority concerned.
Then the Entrepreneur has to register the unit with the Central and Sales Tax
Department. If a unit comes within the provisions of Factories Act, He/ She has to
register it with Inspector of Factories or it has to register the unit under the Shops and
Establishment Act.
3.What are the aspects should Financial Viability Cover ? P. No. 229
Ans. : It should cover the aspects like :
* non-recurring cost such as land and building, plant and machinery, etc.
*recurring expenses like Wages, Salaries, and Overheads, etc.
*probable cost of production
*Profit on expected Sales
4. What information should technical feasibility mention ? P. No. 229
*Description of Product Specification
*Raw Materials Availability
* Manufacturing Process
* Quality Control Measures
*Availability of Water, Power, Transport and Communication Facility
5. How Project Reports are prepared by an Entrepreneur ? P. No. 228
Ans. : Project Reports need to be prepared according to the format, prescribed in the Loan
Application Form, of Term Lending Institution. An Entrepreneur can get the report prepared
either by technical consultancy organisation or by auditors or by consultants or by
development agencies.
6.What aspects should Project Report Cover ? P. No. 228
Ans. : This report should cover aspects like
* Sources of Finance
* Technical Know how
* Sources of Labour and Raw Materials
* Market Potential and Profitability
7.While choosing the site, What should be considered by the Entrepreneur ?
Ans. : Nearness to Native Place incentives provided by the Government, Nearness to
Market, Availability of Labour and Raw Materials in a particular area, infrastructure facility.

Chapter 26. Companies Act 2013

1.The New 2013 Companies Act consists of _____ Chapters ____ Sections and ____
Schedules. P. No.233
Ans.: 29, 470, 7
2.The word ‘company’ is derived from the Latin word (Com- with or together; pains-
bread), and originally referred to ______ P. No.235
Ans.: To an association of persons who took their meals together.
3. Body Corporate means a _____ P. No.235
Ans.: Corporate entity which has legal existence.
4.What does body corporate or corporation include according to section 2 (11)? P.No. 235
Ans. : A Private Company, A Public Company, one person Company, small Company, Limited
Liability Partnerships, Foreign Company incorporated India.
5. According to Section 2 (11), what does not include body corporate ? P. No. 235
Ans. : A Co-operative Society, registered under any law relating to co-operative society, any
other body corporate (not being a company, as defined in this Act)
6.What are the tenure of Preference Shares? P. No.237
Ans.: Tenure of Preference Shares continued as 20 Years except for Infrastructural Projects.
Companies having Infrastructural Project can issue preference shares for more than 20 Years
upto 30 Years subject to minimum 10% Redemption of such preferential from 21 st Year
onward or earlier.
7.The Amount of Share Premium has to be transferred to an Account called the _____
P.No.237
Ans. : Securities Premium Account
8. The Securities Premium Account is ____ in nature. P. No. 237
Ans. : Capital
9.State the purposes specified by the Act under section 78 in utilising Securities Premium
Account . P. No. 237
Ans.: Issue of fully paid bonus shares to the members of the company
To write off preliminary expenses
 To write off the expenses of issue, or commission paid, or discount allowed, on issue of
shares or debentures of the company.
To provide for the payment of premium on the redemption of any redeemable preference
shares or debentures of the company.
10.The Securities Premium Account cannot be treated as____ reserve for distributing
dividends. P. No. 237
Ans.: Revenue.
11.What is Sweat Equity Shares? P. No.238
Ans.: Sweat Equity Shares means issue of shares to employees or directors at a lower price
for cash or other than cash, in lieu of providing know how or making available rights in the
nature of intellectual property rights or any value additions.
12.The share certificate is issued by the company within ____ months of the allotment of
shares to the applicants. P. No.238
Ans.: Three months.
13.What is Share Warrant? P. No.238
Ans.: It is negotiable instrument, issued by the public limited company only against fully paid
up shares. It is also termed as a document of title because the holder of the share warrant is
entitled to the number of shares mentioned in it.
14.What are the requirements to issue share warrants by a public company ? P.No.238
Ans. : If the public company wants to issue share warrant, then prior approval of the central
government is requirement. Further the issue of a share warrant must be authorised in the
articles of association of the company.
15.If the holder of the share warrant wants to take share certificate, what he has to do ?
Page No. 239
Ans. : The holder of the share warrant can take share certificate, only if holder surrenders
the share warrant and pays the required Fee for the issue of share certificate. Thereafter, the
company will cancel the warrant and issue a new share certificate to him as well as the
company will enter his name as the member of the company in the register of members,
after which he will become a member of the company.
16.Is the holder of the share warrant, a member of the Company ? P. No. 239
Ans. : Generally, the holder of the share warrant is not the member of the company, but if
the articles of association of the company provided, then the bearer is deemed to be the
member of the company.
17.How a company can convert it’s shares into Stock ? P. No. 239
Ans. : A company can convert it’s shares into Stock, by following the provisions of Table A
(Articles 36-39). Stock is created from fully paid shares by passing an ordinary resolution in
the general meeting. The Articles of Association of the company must permit this
conversion.
18.Name some Navratnas companies. P. No. 241
Ans. : Bharat Electronics Ltd. (BEL)
Oil India Ltd. (OIL)
Shipping Corporation of India. (SCI) Engineers India Ltd. (EIL)
Container Corporation of India (CONCOR) Hindustan Petroleum Corpn. Ltd. (HPCL)
19.Name some of the Maharatnas companies ? P. No. 242
Ans. : National Thermal Power Corpn. (NTPC)
OIL & Natural Gas Corporation (ONGC)
Steel Authority of India Ltd. (SAIL)
Bharat Heavy Electricals Ltd. (BHEL)
Gas Authority of India Ltd. (GAIL)
Bharat Petroleum Corpn. Ltd. (BPCL)
20. What are the changes, in existing company name, is not allowed ? P. No. 242
Ans. :
i)Plural version of any of the words appearing in the name of an existing company is not
allowed, like example Eshwar equipment private ltd. Co. then name of Eshwar equipments
private ltd. Co. will not be proposed.
ii)changes in type , letter case, spacing or punctuation marks
iii)joining words or separating words before or after the company name
iv)different tense or number of the same word
v)intentionally misspelled words, etc.
21.How many number of persons required to form public company, private company and
one person company ? P. No. 235
Ans. : Public Company – 7 or more persons
Private Company – 2 or more persons
One person company – 1 person

Prepared By Mrs. Prema Samuel

MCC Matric Hr Sec School, Chetpet, Chennai.

Victory Comes From The LORD

Proverbs 21 : 31