12th Commerce Study Material English Medium PDF Download

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C. SivaKumar. M.Com,M.Phil,B.Ed.
PG. Assistant In Commerce
Cell No: 63853 81246
Student Name:..............................
Class / Section:............................
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Unit Chapter Contents No.
Unit – I 1 Principles of Management 01

Management Process 2 Functions of Management 04
3 Management By Objectives (MBO)
Management By Exception (MBE) 06
Unit – II 4 Introduction to Financial Markets 08
Financial Market – 1 5 Capital Market 11
6 Money Market 15
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Unit – III 7 Stock Exchange 19
Financial Market – II 8 Securities Exchange Board of India (SEBI) 23
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Unit – IV 9 Fundamentals of HRM 28
Human 10 Recruitment Methods 29
Resource 11 Employee Selection Process 32
Management
Unit – V
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12
13
Employee Training Method
Concept of Market and Marketer
36
40
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Elements of 14 Marketing and Marketing Mix 44
Marketing 15 Recent Trends in Marketing 47
Unit - VI 16 Consumerism 50
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Consumer 17 Rights, Duties and Responsibilities of

Protection Consumers 54
18 Grievance Redressal Mechanism 56
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Unit – VII
Business 19 Environmental Factors 59
Environment 20 Liberalization, Privatization and
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Globalization 63
Unit – VIII
The Sale of Goods 21 The Sale of Goods Act 1930 66
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Act, 1930
and the
Negotiable
Instruments Act 22 The Negotiable Instruments Act1881 69
1881
Unit – IX 23 Elements of Entrepreneurship 72
Entrepreneurship 24 Types of Entrepreneurs 76
Development 25 Government Schemes for Entrepreneurial 79
Development
Unit – X 26 Companies Act 2013 82
Company Law and 27 Company Management 87
Secretarial Practice 28 Company Secretary 88

SK Commerce Guide Class-12th Std.
UNIT 1 MANAGEMENT PROCESS

CHAPTER 1 PRINCIPLES OF MANAGEMENT
I. Choose The Correct Answers
1) Management is what a............................does?
a) Manager b) Subordinate c) Supervisor d) Superior
2) Management is an........................
a) Art b) Science c) Art and Science d) Art or Science
3) Scientific management is developed by....................
a) Fayol b) Taylor c) Mayo d) Jacob
4) Dividing the work into small tasks is known as...................
a) Discipline b) Unity c) Division of work d) Equity
5) With a wider span, there will be................hierarchical levels.
a) More b) Less c) Multiple d) Additional
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II. Very Short Answer Questions
1. What is Management?
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 Management is part and parcel of our day to day life.
 Management is goal oriented and it is an art of getting things done with and
through others.
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2. List Out The Management Tools
 Accounting  Statistics
 Business Law  Econometrics
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 Psychology  Data Processing
3. State The Meaning of Authority
 Authority means the right of a superior to give the order to his subordinates.
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 This is the issue of commands followed responsibility for their consequences.

4. What Do You Mean By Span of Management?
 The Span of Management refers to the number of subordinates who can be
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managed efficiently by a superior.

 Simply, the manager having the group of subordinates who report him directly
is called as the span of management.
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III. Short Answer Questions

1. Define the Term Management
 “To Manage Is To Forecast, To Plan, To Organise, To Command, To Co-
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Ordinate and To Control.” - Henry Fayol (Or)

 “Management is a multipurpose organ that manages a business and manages
manager, and manages worker and work”. - Peter F. Drucker
2. Differentiate Management From Administration (Any 3)
Basis for
Comparison Management Administration
Authority Middle and Lower Level Top Level
Role Executive Decisive
Focus on Managing Work Making best possible allocation
of limited resources
Key person Manager Administrator
Concerned with Policy implementation Policy formulation
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3. What Are The Principles Of Taylor?

1) Science, Not Rule of Thumb
2) Harmony, Not Discord
3) Mental Revolution
4) Cooperation, Not individualism
5) Development of each and every person to his or her greatest efficiency and
prosperity
4. What Determines The Span Of Management?
 The span of Management refers to the number of subordinates who can be
managed efficiently by a superior.
The Span of Management has two implications:
1) Influences the complexities of the individual managers job
2) Determine the shape or configuration of the organization
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IV. Long Answer Questions
1) Explain The Concept Of Management. (Any 5)
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1) Body of Knowledge
2) Management Tools
3) Separate Discipline
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4) Specialisation
5) Code of Conduct
6) Professional Association
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 Body of Knowledge
o Management has now developed in to a specialised body of management
theory and philosophy. Management literature is growing in all countries.
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 Management Tools
o Accounting, Business Law, Psychology, Statistics, Econometrics, Data
Processing, etc.
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 Separate Discipline
o Management studies in many universities and institutions of higher learning
are recognised as a separate discipline.
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o Seminars, special courses, training programmes are becoming fashionable

and popular for orientation and retraining in management areas, e.g.,
 Specialisation
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o There is a growing tendency to select and appoint highly qualified, trained

and experienced persons to manage the business in each functional areas of
management.
 Professional Association
o The Business Management Associations in many countries to promote the
spread of knowledge in all management areas and to build up the bright
public image of managerial profession.
 Code of Conduct
o Enlightened businessmen have recognised that business management is a
social institution and it has social responsibilities to be fulfilled towards
customers, employees, and the public or community.
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2) Explain The Principles Of Modern Management. (Any 5)

“The Father of Modern Management is Mr. Henry Fayol”
1) Division of Work
2) Authority and Responsibility
3) Discipline
4) Unity of Command
5) Unity of Direction
6) Subordination of Individual Interest to Mutual Interest
7) Remuneration
8) The Degree of Centralization
9) Line of Authority/Scalar Chain
10) Order
11) Equity
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12) Stability of Tenure of Personnel
13) Initiative
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14) Esprit de Corps/Team Spirit
1. Division of Work
o According to this principle the whole work is divided into small tasks.
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o This leads to specialization which increases the efficiency of labour.
2. Authority and Responsibility
o This is the issue of commands followed by responsibility for their
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consequences.
o Authority means the right of a superior to give the order to his subordinates
whereas responsibility means obligation for performance.
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3. Discipline
o It is obedience, proper conduct in relation to others, respect of authority,
etc.
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o It is essential for the smooth functioning of all organizations.

4. Unity of Command
o This principle states that each subordinate should receive orders and be
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accountable to one and only one superior.

o If an employee receives orders from more than one superior, it is likely to
create confusion and conflict.
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5. Unity of Direction
o All related activities should be put under one group, there should be one
plan of action for them, and they should be under the control of one
manager.
6. Remuneration
o Workers must be paid sufficiently as this is a chief motivation of employees
and therefore greatly influences productivity.
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CHAPTER 2 FUNCTIONS OF MANAGEMENT

1) Which is the primary function of management?
(a) Innovating (b) Controlling (c) Planning (d) Decision-making
2) Which of the following is not a main function?
(A) Decision-Making (b) Planning (c) Organising (d) Staffing
3) Distribution of work in group wise or section wise is called as...................
(a) Co-Ordinating (b) Controlling (c) Staffing (d) Organising
4) Which of the following is verification function?
(a) Planning (b) Organising (c) Staffing (d) Controlling
5) The goals are achieved with the help of...................
(a) Motivation (b) Controlling (c) Planning (d) Staffing
6) ................... is included in every managerial function.
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(a) Co-Ordinating (b) Controlling (c) Staffing (d) Organising
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1. Write A Short Note About Planning.
 Planning is the primary function of management.
 Nothing can be performed without planning.
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 Planning is a constructive reviewing of future needs so that present actions can
be adjusted in view of the established goal.
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2. What Is Meant By Motivation?
 The goals are achieved with the help of motivation.
 Motivation includes increasing the speed of performance of a work and
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developing willingness on the part of workers.

3. List the Subsidiary Functions Of Management
1. Innovation
2. Representation
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3. Decision Making
4. Communication
4. What is the Traditional Proverb Used in Planning?
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 “Think Before you Act”

 “Look Before you Leap”
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1. List Out The Main Functions Of Management

1) Planning
2) Organizing
3) Staffing
4) Directing
5) Motivating
6) Controlling and
7) Co-ordination
2. State the Importance of Staffing
 Staffing refers to placement of right persons in the right jobs.
 Since the right person is recruited for the right jobs, it leads for maximum
productivity and higher performance.
 It promotes optimum utilization of human resources.
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3. How The Employees Are Informed About Important Matters In A Company?

 Communication is the transmission of human thoughts and opinions from one
person to another person.
 Employees are kept informed of all necessary matters by circulars, instructions
manuals, newsletters, notice boards, meetings, participative mechanisms, etc.
1. Explain the Various Functions of Management (Any 5)
Main (Or) Primary Function Subsidiary (Or) Secondary Function
 Planning  Innovation
 Organising  Representation
 Staffing  Decision Making
 Directing  Communication
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 Motivation
 Controlling
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 Co-ordination
Main Functions:
1) Planning
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 Planning is the primary function of management.
 Planning is a constructive reviewing of future needs so that present actions
can be adjusted in view of the established goal.
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2) Organizing
 Organizing is the process of establishing harmonious relationship among
the members of an organization and the creation of network of relationship
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among them.
3) Staffing
 Staffing function comprises the activities of selection and placement of
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competent personnel.
4) Directing
 Directing denotes motivating, leading, guiding and communicating with
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subordinates on an ongoing basis in order to accomplish pre-set goals.

5) Controlling
 Controlling is performed to evaluate the performance of employees and
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deciding increments and promotion decisions.

Subsidiary Functions:
1) Innovation
 Innovation includes developing new material, new products, new techniques
in production, new package, and new design of a product and cost
reduction.
2) Representation
 A manager has to act as representative of a company.
 It is the duty of every manager to have good relation with others.
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CHAPTER 3 MANAGEMENT BY OBJECTIVES (MBO) MANAGEMENT BY EXCEPTION

(MBE)
1) ...........System gives full Scope to the Individual Strength and Responsibility.
(a) MBO (b) MBE (c) MBM (d) MBA
2) Which is the First step in Process of MBO?
(a) Fixing Key Result Area (b) Appraisal of Activities
(c) Matching Resources with Activities (d) Defining Organisational Objectives
3) ...........................keeps Management Alert to Opportunities and Threats by
Identifying Critical Problems.
(a) MBA (b) MBE (c) MBM (d) MBO
4) Delegation of Authority is easily done with the Help of...........................
(a) MBM (b) MBE (c) MBO (d) MBA
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5) MBO is popularised in the USA by...........................
(a) Prof. Reddin (b) George Odiorne (c) Henry Fayol (d) F.W Taylor
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1. What Are The Objectives Of MBO?
1) To measure and judge performance.
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2) To relate individual performance to organizational goals.
3) To clarify both the job to be done and the expectations of accomplishment.
4) To foster the increasing competence and growth of the subordinates.
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2. Bring Out the Meaning of MBE
 Management by exception is a style of business management that focuses on
identifying and handling cases that deviate from the norm.
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3. Mention Any Two Advantages of MBO

1) Systematic evaluation of performance is made with the help of MBO.
2) Delegation of authority is easily done with the help of MBO.
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3) The responsibility of a worker is fixed through MBO.

4. What Is Known As KRA?
 Key Result Areas (KRA) is fixed on the basis of organisational objectives
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premises. KRA are arranged on a priority basis.

 KRA indicates the strength of an organisation.
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1. Write The Features Of MBO (Any 3)

1) MBO tries to combine the long run goals of organisation with short run goals.
2) Management tries to relate the organisation goals with society goals.
3) MBO’s emphasis is not only on goals but also on effective performance.
4) It increases the organisational capability of achieving goals at all levels.
5) Recognises the participation of employees in goal setting process.
6) Aims at replacing the exercise of authority with consultations.
2. What Are the Process of MBE?
 Primarily, it is necessary to set objectives or norms with predictable or
estimated results.
 These performances are assessed and get equated to the actual performance.
 Next, the deviation gets analysed.
 Finally, the aim is to solve this “exception” immediately.
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3. List out Any Three Process of MBO

1) Defining Organisational Objectives
2) Goals of Each Section
3) Fixing Key Result Areas
4) Setting Subordinates Objectives or Targets
5) Matching Resources With Objectives
6) Periodical Review Meeting Activities
7) Appraisal of Activities
8) Reappraisal of Objectives
1. What Are The Major Advantages Of MBO? (Any 5)
1) Manager recognises the need for planning and appreciates the planning.
2) Systematic evaluation of performance is made with the help of MBO.
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3) MBO gives the criteria of performance. It helps to take corrective action.
4) Delegation of authority is easily done with the help of MBO.
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5) MBO motivates the workers by job enrichment and makes the jobs meaningful.
6) The responsibility of a worker is fixed through MBO.
2. What Are The Advantages Of MBE? (Any 5)
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1) It saves the time of managers because they deal only with exceptional matters.
Routine problems are left to subordinates.
2) It focuses managerial attention on major problems. As a result, there is better
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utilisation of managerial talents and energy.
3) MBE keeps management alert to opportunities and threats by identifying
critical problems. It can avoid uninformed and impulsive action.
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4) Management by exception provides better yardsticks for judging results. It is

helpful in objective performance appraisal.
5) It facilitates delegation of authority. Top management concentrates on strategic
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decisions and operational decisions are left to the lower levels.

3. Discuss The Disadvantages Of MBE.
1) The main disadvantage of MBE is, only managers have the power over really
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important decisions, which can be demotivating for employees at a lower level.

2) Furthermore, it takes time to pass the issues to managers. Managing
employees who deviate from the normal procedures. Because of compliance
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failures are considered difficult to manage and typically find themselves with
limited job duties and ultimately dismissed/terminated.
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UNIT 2 FINANCIAL MARKETS – I

CHAPTER 4 INTRODUCTION TO FINANCIAL MARKETS
1) Financial market facilitates business firms.................
a) To Rise Funds b) To Recruit Workers
c) To Make More Sales d) To Minimize Fund Requirement
2) Capital market is a market for..................
a) Short Term Finance b) Medium Term Finance
c) Long Term Finance d) Both Short Term and Medium Term Finance
3) Primary market is also called as.....................
a) Secondary Market b) Money Market c) New Issue Market d) Indirect Market
4) Spot Market is a market where the delivery of the financial instrument and
payment of cash occurs..............................
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a) Immediately b) In the Future c) Uncertain d) After One Month
5) How many times a security can be sold in a secondary market?
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a) Only One Time b) Two time c) Three times d) Multiple Times
1. What Are The Components Of Organized Sectors?
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1) Regulators
2) Financial Institutions
3) Financial Markets
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4) Financial Services
2. What is Cash/Spot Market?
 Cash/Spot Market is a market where the delivery of the financial instrument
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and payment of cash occurs immediately.

 Settlement is completed immediately.
3. What is Debt Market?
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 Debt Market is the financial market for trading in Debt Instrument

 Example: Government Bonds or Securities, Corporate Debentures or Bonds
4. How is Price Decided in a Secondary Market?
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 “Fluctuates, depends on the demand and supply force”

 Financial Markets allow for the determination of the price of the traded
financial asset through the interaction of buyers and sellers.
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1. Give the Meaning of Financial Market
 A market wherein financial instruments such as financial claims, assets and
securities are traded is known as a ‘financial market’.
 A financial market like equity shares, preference shares, debentures, deposits
and loans, bonds, government bonds.
2. Write a Note on Secondary Market
 Secondary market is the market for securities that are already issued.
 Stock exchange is an important institution in the secondary market.
 It is the market for old securities. Example: Stock Exchange
3. Bring Out the Scope of Financial Market in India
 The financial market provides financial assistance to individuals, agricultural
sectors, industrial sectors, service sectors.
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 Financial institutions like banks, insurance sectors, provident funds and the
government as a whole.
 With the help of the financial market all the above stated individuals,
institutions and the Government can get their required funds in time.
 Through the financial market the institutions get their short term as well as
long term financial assistance. It leads to the overall economic development.
1. Distinguish between New issue market and Secondary Market. (Any 5)
Basis For
New Issue Market Secondary Market
Comparison
Meaning The market place for new The place where formerly
shares is called primary issued securities are traded is
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market. (Initial Issues known as secondary market.
Market) (Resale Market)
Buying Direct Indirect
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How can securities Only once Multiple times
be sold
Buying and selling Company and investors Investors
between
Gained person
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Company Investors
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Intermediary Underwriters Brokers
Price Fixed price Fluctuates, depends on the
demand and supply force.
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2. Enumerate the Different Types of Financial Markets. (Any 5)

1) On the Basis of Type of Financial Claim
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i) Debt Market
ii) Equity Market
2) On the Basis of Maturity of Financial Claim
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i) Money Market
ii) Capital Market
3) On the Basis of Time of Issue of Financial Claim
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i) Primary Market
ii) Secondary Market
4) On the Basis of Timing of Delivery of Financial Claim
i) Cash/Spot Market
ii) Forward or Futures Market
5) On the Basis of the Organizational Structure of the Financial Market
i) Exchange Traded Market
ii) Over the Counter Market
1. Debt Market
 Financial market for trading in Debt Instrument (i.e. Government Bonds or
Securities, Corporate Debentures or Bonds)
2. Equity Market
 Financial market for trading in Equity Shares of Companies.
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3. Cash/Spot Market
 Market where the delivery of the financial instrument and payment of cash
occurs immediately. i.e. settlement is completed immediately.
4. Secondary Market
 Market for securities that are already issued. Stock Exchange is an important
institution in the secondary market.
5. Forward or Futures Market
 Market where the delivery of asset and payment of cash takes place at a pre-
determined time frame in future.
6. Capital Market
 Market for long term financial claim more than a year E.g. Shares, Debentures.
7. Money Market
 Market for short term financial claim (usually one year or less) E.g. Treasury
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Bills, Commercial Paper, Certificates of Deposit.
3. Discuss the Role of Financial Market.
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1) Savings Mobilization
2) Investment
3) National Growth
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4) Entrepreneurship Growth
5) Industrial Development
1. Savings Mobilization
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 Obtaining funds from the savers or ‘surplus’ units such as household
individuals, business firms, public sector units, Government is an important
role played by financial markets.
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2. Investment
 Financial market plays a key role in arranging the investment of funds thus
collected, in those units which are in need of the same.
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3. National Growth
 Financial markets contribute to a nation’s growth by ensuring an unfettered
flow of surplus funds to deficit units.
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4. Entrepreneurship Growth
 Financial markets contribute to the development of the entrepreneurial class by
making available the necessary financial resources.
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5. Industrial Development
 The different components of financial markets help an accelerated growth of
industrial and economic development of a country and thus contributing to
raising the standard of living and the society’s well-being.
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CHAPTER 5 CAPITAL MARKET

1) Capital market do not provide..................................
a) Short term Funds b) Debenture Funds
c) Equity Funds d) Long term Funds
2) When the NSEI was established......... a) 1990 b) 1992 c) 1998 d) 1997
3) Primary market is a Market where securities are traded in the................
a) First Time b) Second Time c) Three Time d) Several Times
4) Participants in the capital market includes....................
a) Individuals b) Corporate c) Financial Institutions d) All of the above
5) The.................... Was set up by a premier financial institution to allow the
trading of securities across the electronic counters throughout the country.
a) OTCEI b) Factoring c) Mutual Funds d) Venture Funds Institutions
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1. What is Capital Market?
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 Capital market is a market where buyers and sellers engage in trade of
financial securities like Bonds, and Stocks.
 “Long term capital funds required by business enterprises”.
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2. Write a Note on OTCEI
 The OTCEI was set up by a premier financial institution to allow the trading of
securities across the electronic counters throughout the country.
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 It addresses some specific problems of both investors and medium size
companies.
 Some of the greatest strengths of OTCEI are transparency of transactions,
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quick deals, faster settlements and better liquidity.

3. Who are the Participants in a Capital Market?
 The participants of the capital market include individuals, corporate sectors,
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Govt., banks and other financial institutions.

4. How is Price Determined in a Capital Market?
 The price of the securities is determined based on the demand and supply
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prevailing in the capital market for securities.

1. What are the Various Kinds of Capital Market? Explain (Any 3)
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 Primary Market
o Primary market is a market for new issues or new financial claims.
Hence, it is also called New Issue Market.
o The Primary market deals with those securities which are issued to the
public for the first time.
1. Public Issue: The most common method of raising capital by new
companies is through sale of securities to the public. It is called public
issue.
2. Rights Issue: When an existing company wants to raise additional capital,
securities are first offered to the existing shareholders on a pre-emptive
basis. It is called rights issue.
3. Private Placement: Private placement is a way of selling securities privately
to a small group of investors.
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 Secondary Market
o The market for old securities, in the sense that securities which are
previously issued in the primary market.
o It covers both stock exchange and over-the counter market.
2. Explain Any Two Functions of Capital Market
1) Savings and Capital Formation
2) Industrial Growth
3) Ready and Continuous Market
4) Easy Liquidity
5) Reliable Guide to Performance
 Savings and Capital Formation
o In capital market, various types of securities help to mobilize savings
from various sectors of population (Individuals, Corporate, Govt., etc.)
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 Reliable Guide to Performance
o The capital market serves as a reliable guide to the performance and
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financial position of corporate, and thereby promotes efficiency.
 Ready and Continuous Market
o The stock exchange provides a central convenient place where buyers
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and sellers can easily purchase and sell securities.
o Easy marketability makes investment in securities more liquid as
compared to other assets.
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3. Explain about Factoring and Venture Capital Institutions
 Factoring
 The factoring institutions collect the book debts for and on behalf of its
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clients.
 Some the factoring institutions operating in India are SBI factors and
commercial service private limited.
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 Venture capital
 Venture capital funds bring into force the hi-technology projects which are
converted into commercial production.
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 They include Risk Capital Foundation of IFCI, Venture Fund of IDBI, SIDBI.
1. Discuss the Characters of a Capital Market
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1) Securities Market
2) Price
3) Participants
4) Location
5) Market for Financial Assets
1. Securities Market
 The dealings in a capital market are done through the securities like shares,
debentures, etc. The capital market is thus called securities market.
2. Price
 The price of the securities is determined based on the demand and supply
3. Participants
 There are many players in the capital market.
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 The participants of the capital market include individuals, corporate sectors,

Govt., banks and other financial institutions.
4. Location
 Capital market is not confined to certain specific locations, although it is
true that parts of the market are concentrated in certain well known centers
known as Stock Exchanges.
5. Market for Financial Assets
 Capital market provides a transaction platform for long term financial
assets.
2. Briefly Explain the Functions of Capital Market. (Any 5)
1) Savings and Capital Formation
2) Permanent Capital
3) Industrial Growth
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5) Reliable Guide to Performance
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6) Proper Channelization of Funds
7) Provision of Variety of Services
8) Foreign Capital
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9) Easy Liquidity
1. Savings and Capital Formation
 In capital market, various types of securities help to mobilize savings from
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various sectors of population (Individuals, Corporate, Govt., etc.).
2. Permanent Capital
 The existence of a capital market/stock exchange enables companies to
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raise permanent capital.

 The investors cannot commit their funds for a permanent period but
companies require funds permanently.
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3. Industrial Growth
 The stock exchange is a central market through which resources are
transferred to the industrial sector of the economy.
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4. Ready and Continuous Market

 The stock exchange provides a central convenient place where buyers and
sellers can easily purchase and sell securities.
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5. Reliable Guide to Performance

 The capital market serves as a reliable guide to the performance and
financial position of corporate, and thereby promotes efficiency.
6. Proper Channelization of Funds
 The prevailing market price of a security and relative yield are the guiding
factors for the people to channelize their funds in a particular company.
7. Easy Liquidity
 With the help of secondary market investors can sell off their holdings and
convert them into liquid cash.
3. Explain the Various Types Of New Financial Institutions. (Any 5)
1) Venture Fund Institutions
2) Mutual Funds
3) Factoring Institutions
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4) Over the Counter Exchange of India (OTCEI)

5) National Stock Exchange of India Limited (NSEI)
6) National Clearance and Depository System (NCDS)
7) National Securities Depositories Limited (NSDL)
8) Stock Holding Corporation of India Limited (SHCIL)
1. Venture Fund Institutions
 Venture capital financing is a form of equity financing designed especially
for funding new and innovative project ideas.
 Venture capital funds bring into force the hi-technology projects which are
converted into commercial production.
2. Mutual Funds
 Financial institutions that provide facilities for channelling savings of
small investors into avenues of productive investments are called ‘Mutual
et
Funds’.
3. Factoring Institutions
i.N
 “Factoring” is an arrangement whereby a financial institution provides
financial accommodation on the basis of assignment/sale of account
receivables.
la
4. Over the Counter Exchange of India (OTCEI)
 The OTCEI was set up by a premier financial institution to allow the
trading of securities across the electronic counters throughout the
sa
country.
5. National Stock Exchange of India Limited (NSEI)
 NSEI was established in 1992 to function as a model stock exchange. The
da
Exchange aims at providing the advantage of nation-wide electronic

screen based “scripless” and “floorless” trading system in securities.
6. National Clearance and Depository System (NCDS)
Pa
 Under the scripless trading system, settlement of transactions relating to

securities takes place through a book entry.
7. National Securities Depositories Limited
w.
 The NSDL was set up in the year 1996 for achieving a time bound
dematerialization as well as rematerialization of shares.
8. Stock Holding Corporation of India Limited (SHCIL)
ww
 Stock Holding Corporation of India Limited (SHCIL) aims at serving as a

central securities depository in respect of transactions on stock
exchanges.
Success is when your Signature Changes to

Autograph....................
C. SivaKumar PG
Kindly Asst.
Send Me In Commerce
CHAPTER 6 MONEY MARKET

1) The money invested in the call money market provides high liquidity with.....
a) Low Profitability b) High Profitability
c) Limited Profitability d) Medium Profitability
2) A major player in the money market is the .........................
a) Commercial Bank b) Reserve Bank of India
c) State Bank of India d) Central Bank
3) Money Market provides............................
a) Medium-term Funds b) Short-term Funds
c) Long-term Funds d) Shares
4) Money Market Institutions are.............................
a) Investment Houses b) Mortgage Banks
et
c) Reserve Bank of India d) Commercial Banks and Discount Houses
5) Risk in the Money Market is...................................
i.N
a) High b) Market Risk
c) Low Credit and Market Risk d) Medium Risk
6) Debts Instruments are issued by Corporate Houses are raising short-term
la
financial resources from the money market are called......................
a) Treasury Bills b) Commercial Paper
c) Certificate of Deposit d) Government Securities
sa
7) The market for buying and selling of Commercial Bills of Exchange is known
as a...................
a) Commercial Paper Market b) Treasury Bill Market
da
c) Commercial Bill Market d) Capital Market

8) A marketable document of title to a time deposit for a specified period may
be referred to as a .......................
Pa
a) Treasury Bill b) Certificate of Deposit

c) Commercial Bill d) Government Securities
9) Treasury Bills commands....................
w.
a) High Liquidity b) Low Liquidity

c) Medium Liquidity d) Limited Liquidity
10) Government Securities are issued by agencies such as.......................
ww
a) Central Government b) State Governments

c) Semi-Government Authorities d) All of the above
1. What is a CD (or) Certificate of Deposits Market?
 Certificate of Deposits are short-term deposit instruments issued by banks and
financial institutions to raise large sums of money.
 The Certificate of Deposit is transferable from one party to another.
2. What is Government Securities Market?
 A market whereby the Government or gilt-edged securities can be bought
and sold is called ‘Government Securities Market’.
3. What do you meant by Auctioning?
 A method of trading whereby merchants bid against one another and where the
securities are sold to the highest bidder is known as ‘auctioning’.
C. SivaKumar PG
Kindly Asst.
Send Me In Commerce
4. What do you meant by Switching?

 The purchase of one security against the sale of another security carried out by
the RBI in the secondary market as part of its open market operations is
described as ‘Switching’.
1. What are the Features of Treasury Bills? (Any 3)
1) Issuer
2) Finance Bills
3) Liquidity
4) Vital Source
5) Monetary Management
2. Who are the Participants of Money Market? (Any 3)
1) Government of different countries
et
2) Central Banks of different countries
3) Private and Public Banks
i.N
4) Mutual Funds Institutions
5) Insurance Companies
6) Non-Banking Financial Institutions
la
7) RBI and SBI
8) Commercial Banks
9) State Governments
sa
10) Public
3. Explain the Types of Treasury Bills? (Any 3)
1) 91 days Treasury Bills
da

1. 91 days Treasury Bills
Pa
 Ninety one days Treasury Bills are issued at a fixed discount rate of 4 per cent
as well as through auctions.
w.
 The RBI holds 91 days and 182 Treasury Bills and they are issued on tap
basis throughout the week.
ww
 364 days Treasury Bills do not carry any fixed rate.

4. What are the Types of Commercial Bill? (Any 3)
1) Demand Bills
2) Clean bills and documentary Bills
3) Inland bills and Foreign Bills
4) Indigeneous Bills
5) Accommodation Bills
1. Differentiate between the Money Market and Capital Market. (Any 5)
Features Money Market Capital Market
Duration of It is a market for short-term loan It is a market for long-term
Funds funds for less than one year. fund More than one year.
C. SivaKumar PG
Kindly Asst.
Send Me In Commerce
Risk Low credit and market risk. High credit and market risk
Liquidity High Low
Underwriting Underwriting is not a primary It is a primary function.
Function.
Price No price discovery mechanism and Price discovery mechanism
Discovery exists in this Market. exists in Capital Market
Claims Financial claims, assets and Bonds and shares are dealt in
securities are dealt in the Money the Capital Market.
Market.
Regulator Central Bank is the Regulator of Besides Central Bank, Special
Money Market. regulatory authority like SEBI,
et
etc.,
2. Explain the Characteristics of Money Market? (Any 5)
1) Short-term Funds
i.N
2) Maturity Period
3) Conversion of Cash
4) No Formal Place
5) Sub-markets
la
6) Existence of Secondary Market
sa
7) Demand and Supply of Funds
8) Wholesale Market
1. Short-term Funds
da
 It is a market purely for short-term funds or financial assets called near money.
2. Maturity Period
 It deals with financial assets having a maturity period upto one year only.
3. Conversion of Cash
Pa
 It deals with only those assets which can be converted into cash readily without
loss and with minimum transaction cost.
4. Sub-markets
w.
 It is not a single homogeneous market. It comprises of several sub-markets

each specialising in a particular type of financing.
5. Existence of Secondary Market
ww
 There should be an active secondary market for these instruments.

6. Demand and Supply of Funds
 There should be a large demand and supply of short-term funds.
7. Wholesale Market
 It is a wholesale market and the volume of funds or financial assets traded in
the market is very large.
3. What are the Characteristics of Government Securities? (Any 5)
1) Agencies
2) RBI Special Role
3) Nature of Securities
4) Liquidity Profile
5) Market
6) Forms

7) Issue Mechanism
8) Issue opening
1. Agencies:
 Government securities are issued by agencies such as Central Government
State Governments, semi-government authorities like local Government
authorities.
2. RBI Special Role
 RBI takes a special and an active role in the purchase and sale of these
securities as part of its monetary management exercise.
3. Nature of Securities
 Securities offer a safe avenue of investment through guaranteed payment of
interest and repayment of principal by the Government.
4. Liquidity Profile
et
 The liquidity profile of gilt-edged securities varies. Accordingly liquidity profile
of securities issued by Central Government is high.
i.N
5. Market
 As each sale and purchase has to be negotiated separately, the Gilt-Edged
Market is an Over-The-Counter Market.
la
6. Forms
 The securities of Central and State Government take such forms as inscribed
stock or stock certificate, promissory note and bearer bond.
sa
7. Issue Mechanism
 The Public Debt Office (PDO) of the RBI undertakes to issue government
securities.
da
8. Issue opening
 A notification for the issue of the securities is made a few days before the public
subscription is open.
Pa
w.
ww

UNIT 3 FINANCIAL MARKETS – II

CHAPTER 7 STOCK EXCHANGE
1) ...........................is the oldest stock exchange in the world.
a) London Stock Exchange b) Bombay Stock Exchange
c) National Stock Exchange d) Amsterdam Stock Exchange
2) There are..................stock exchange in the country.
a) 21 b) 24 c) 20 d) 25
3) Stock exchanges deal in...................
a) Goods b) Services c) Financial Securities d) Country’s Currency
4) Stock exchange allow trading in..........................
a) All types of Shares of any Company b) Bonds issued by the Govt
c) Listed Securities d) Unlisted Securities
et
5) Jobbers transact in a stock exchange.............................
a) For their Clients b) For their Own Transactions
i.N
c) For other Brokers d) For other Members
6) A pessimistic speculator is.....................
a) Stag b) Bear c) Bull d) Lame Duck
la
7) An optimistic speculator is.....................
a) Bull b) Bear c) Stag d) Lame duck
8) A bull operator believes in.........................
sa
a) Increase in Prices b) Decrease in Prices
c) Stability in Prices d) No change in Prices
9) ...................means the price at which securities are bought and sold are
da
recorded and made public.

a) Market Quotations b) Trade Quotations
c) Business Quotations d) Buyers Quotations
Pa
10) The rules and regulations of Stock exchange is framed by.............guide lines.
a) RBI b) Central Government c) SEBI d) BSE
w.
1. Define Stock Exchange

 "Stock exchange or securities market comprises all the places where buyers
and sellers of stocks and bonds or their representatives undertake transactions
ww
involving the sale of securities.” - “Hastings”

2. What is meant Stock Exchange?
 Stock Exchange is an organized market for the purchase and sale of industrial
and financial security. It is also called stock market or share market. (Or)
 Stock exchange is an organized market for buying and selling corporate and
other securities.
3. Write any 5 Stock Exchanges in India
1) The Bombay Stock Exchange
2) Bangalore Stock Exchange Ltd
3) The Madras Stock Exchange Ltd
4) The Hydrabad Stock Exchange Ltd
5) The Cochin Stock Exchange Ltd
6) The Jaipur Stock Exchange Ltd
7) The Kanara Stock Exchange Ltd

4. What is meant by Remisier?

 He acts as an agent of a member of a stock exchange.
 He obtains business for his principal.
 The member and gets a commission for that service.
4. Who is called a Broker?
 Broker is a commission agent.
 He acts as an intermediary between buyers and sellers of securities.
 He charges a commission for his services from both the parties.
5. What are the Types of Speculator?
1) Bull
2) Bear
3) Stag
4) Lame duck
et
1. What are the Limitations of Stock Exchange? (Any 3)
i.N
1) Lack of uniformity and control of stock exchanges.
2) Absence of restriction on the membership of stock exchanges.
3) Failure to control unhealthy speculation.
la
4) Allowing more than one charge in the place.
5) No proper regulation of listing of securities on the stock exchange.
2. Explain Bull and Bear
sa
1. Bull
 A Bull or Tejiwala is an operator who expects a rise in prices of securities in
the future.
da
 He is called bull because just like a bull tends to throw his victim up in the air,
the bull speculator stimulates the price to rise.
 He is an optimistic speculator.
Pa
2. Bear
 A bear or Mandiwala
 Expects prices to fall in future and sells securities at present with view to
w.
purchases them at lower prices in future.

 A bear is a pessimistic speculator.
3. Explain Stag and Lame Duck
ww
1. Stag
 A stag is a cautious speculator in the stock exchange.
 He applies for shares in new companies and expects to sell them at a
premium, if he gets an allotment.
 He is also called a premium hunter.
2. Lame Duck
 When a bear finds it difficult to fulfil his commitment, he is said to be
struggling like a lame duck.
 A bear speculator contracts to sell securities at a later date.
 Moreover, the buyer is not willing to carry over the transactions.


1. Explain the Functions of Stock Exchange. (Any 5)
2) Correct Evaluation of Securities
3) Protection to Investors
4) Proper Chanalisation of Capital
5) Aid to Capital Formation
6) Facilities for Speculation
7) Seasoning of Securities
8) Clearing House of Business Information
1. Ready and Continuous Market
 Stock Exchange is, in fact, a market for existing securities.
 If an investor wants to sell his securities, he can easily and quickly dispose
et
them off on a stock exchange.
2. Correct Evaluation of Securities
i.N
 The prices at which securities are bought and sold are recorded and
informed to the public. These prices are called “market quotations”
 The lender can easily assess the worth of security offered for loan.
la
3. Protection to Investors
 All dealings in a stock exchange are in accordance with well- defined rules
and regulations. Any malpractice will be severely punished.
sa
4. Proper Chanalisation of Capital
 People like to invest in the shares of companies which yield good profits.
Also people invest in the companies which are giving good dividends.
da
5. Facilities for Speculation

 Speculation is an integral part of stock exchange operations.
 As a result of speculation, demand for and supply of securities are
Pa
equalized.
 Price movements are rendered smoothly.
6. Seasoning of Securities
w.
 Speculators and underwriters hold for a temporary period, securities issued

by new companies.
 They unlock them when the market is prepared to absorb the new issues.
ww
2. Explain the Features of Stock Exchange. (Any 5)

1) Market for Securities
2) Deals in Second Hand Securities
3) Regulates Trade in Securities
4) Allows Dealings only in Listed Securities
5) Transactions Effected only through Members
6) Association of Persons
7) Recognition from Central Government
8) Working as per Rules
9) Specific Location
10) Financial Barometers

1. Market for Securities

 Stock exchange is a market, where securities of corporate bodies, government
companies are bought and sold.
2. Deals in Second Hand Securities
 It deals with shares, debentures bonds and securities already issued by the
companies.
3. Regulates Trade in Securities
 Stock exchange does not buy or sell any securities on its own account.
 It regulates the trade activities so as to ensure free and fair trade.
4. Allows Dealings only in Listed Securities
 In the stock exchange only listed securities are purchased and sold. Unlisted
securities cannot be traded in the stock exchange.
5. Association of Persons
et
 A stock exchange is an association of persons or body of individuals which may
be registered or unregistered.
i.N
6. Recognition from Central Government
 Stock exchange is an organised market. It requires recognition from the Central
Government.
la
3. Distinguish between Stock Exchange and Commodity Exchange (Any 5)
Feature Stock Exchange Commodity Exchange
sa
Function Providing easy marketability Offering hedging or price insurance
services and liquidity to securities
Object Object is facilitating capital Object is facilitating goods flow
da
formation and making best through risk reduction

use of capital resources
Participants Investors and Speculators Producers, dealers, traders and a
Pa
body of speculators
Cornering As seller has to deliver the Cornering is difficult as the seller
agreed securities, cornering has option to deliver standard or
w.
is easy other deliverable goods.

Price Quotation As regards forward For future dealings, multiple
ww
dealings, only one quotation quotations are possible

is possible

CHAPTER 8 SECURITIES EXCHANGE BOARD OF INDIA (SEBI)

1) Securities Exchange Board of India was first established in the year..........
a) 1988 b) 1992 c) 1995 d) 1998
2) The headquarters of SEBI is.......................
a) Calcutta b) Bombay c) Chennai d) Delhi
3) In which year SEBI was constituted as the regulator of capital markets in
India?
a) 1988 b) 1992 c) 2014 d) 2013
4) Registering and controlling the functioning of collective investment schemes
as.......................
a) Mutual Funds b) Listing c) Rematerialisation d) Dematerialization
5) SEBI is empowered by the Finance ministry to nominate..................members
et
on the Governing body of every stock exchange.
a) 5 b) 3 c) 6 d) 7
i.N
6) The process of converting physical shares into electronic form is called.........
a) Dematerialisation c) Delisting c) Materialisation d) Debarring
7) Trading is dematerialized shares commenced on the NSE is........................
la
a) January 1996 b) June 1998 c) December 1996 d) December 1998
8) .........................was the first company to trade its shares in Demat form.
a) Tata Industries b) Reliance Industries
sa
c) Infosys d) Birla Industries
9) ...........................enables small investors to participate in the investment on
share capital of large companies.
da
a) Mutual Funds b) Shares c) Debentures d) Fixed deposits

10) PAN stands for.............................
a) Permanent Amount Number b) Primary Account Number
Pa
c) Permanent Account Number d) Permanent Account Nominee

1. Write Short Notes on SEBI
w.
 Securities and exchange board of India (SEBI) is an apex body that maintains
and regulates our capital market.
 It was established in 1988 by Indian government but got the statutory powers
ww
in 1992. Well it plays a great role in Indian economy such as it.

2. Write Any Two Objectives of SEBI
 Regulation of Stock Exchanges
 Protection to the Investors
 Checking the Insider Trading
 Control over Brokers
3. Mention the Headquarters of SEBI
 SEBI has its headquarters at the business district of BandraKurla Complex in
Mumbai
 North - New Delhi, East - Kolkata, South – Chennai and West - Ahmedabad
4. What are the Various ID Proofs?
 PAN Card
 Voter's ID

 Passport
 Driver's License
 Bank Attestation
 IT Returns
 Electricity Bill
 Telephone Bill
 ID Cards
1. What is Meant by Dematerialization?
 Dematerialization is the process by which physical share certificates of an
investor are taken back by the company/registrar and destroyed.
 Then an equivalent number of securities in the electronic form are credited to
the investors account with his Depository Participant.
et
2. What are the Documents Required For a Demat account?
 For opening a demat account, we submit proof of identity and address along
i.N
with a passport size photo and the account opening form.
 Documents for Identity: Pan Card, Voters ID, Passport, Driver’s License, IT
Returns, Electricity and Telephone Bills are the Identity documents.
la
 Documents for Address: Ration card, Passport, Voter’s ID card, Driving
License, Telephone Bills, Electricity bills are the address documents.
3. Draw the Organization Structure of SEBI
sa
Director
da
Additional Director
Pa
Additional Director Technical Director /

(Adminstration)
/ Joint Director Joint Directors
(System)
w.
Deputy Director
Deputy Director / (Administration)
ww
Assistant Directors
Deputy Directors
(System)
Assistant Director
(Administration)
Assistant Director
(System)
Section Officers
(Administration)
Technical
Assistants


1. What are the Functions of SEBI? (Any 5)
1) Safeguarding the interests of investors by means of adequate education and
guidance.
2) Regulating and controlling the business on stock markets.
3) Conduct inspection and inquiries of stock exchanges, intermediaries and self-
regulating organizations.
4) Barring insider trading in securities.
5) Prohibiting deceptive and unfair methods used by financial intermediaries
operating in securities market.
6) Registering and controlling the functioning of stock brokers, sub-brokers, share
transfer agents, bankers, trustees, underwriters who are linked to securities
market.
et
7) SEBI issues Guidelines and Instructions to businesses orgnisations for issue of
shares,
i.N
8) Registering and controlling the functioning of collective investment schemes
such as mutual funds.
2. Explain the Powers of SEBI. (Any 5)
la
1) Powers Relating to Stock Exchanges & Intermediaries
2) Power to Impose Monetary Penalties
3) Power to Initiate Actions in Functions Assigned
sa
4) Power to Regulate Insider Trading
5) Powers Under Securities Contracts Act
6) Power to Regulate Business of Stock Exchanges
da
1. Powers Relating to Stock Exchanges & Intermediaries

 SEBI has wide powers to get the information from the stock exchange and
intermediaries regarding their business transactions for inspection.
Pa
2. Power to Impose Monetary Penalties

 SEBI has power to impose monetary penalties on capital market
intermediaries for violations.
w.
3. Power to Initiate Actions in Functions Assigned

 SEBI has a power to initiate actions in regard to functions assigned.
 For example, it can issue guidelines to different intermediaries
ww
4. Power to Regulate Insider Trading

 SEBI has power to regulate insider trading or can regulate the functions of
merchant bankers.
5. Powers under Securities Contracts Act
 For effective regulation of stock exchange, the Ministry of Finance issued a
Notification on 13 September, 1994 delegating several of its powers under
the Securities Contracts (Regulations) Act to SEBI.

UNIT 4 HUMAN RESOURCE MANAGEMENT

CHAPTER 9 FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT
1) Human resource is a....................asset.
a) Tangible b) Intangible c) Fixed d) Current
2) Human Resource management is both.....................and......................
a) Science and art b) Theory and practice
c) History and Geography d) None of the above
3) Planning is a...........................function.
a) Selective b) Pervasive c) Both a and b d) None of the above
4) Human resource management determines the ...........................relationship.
a) Internal, External b) Employer, Employee
c) Owner, Servant d) Principle, Agent
et
5) Labour turnover is the rate at which employees...................the organisation.
a) Enter b) Leave c) Salary d) None of the above
i.N
1. What is Human Resource Management?
 The branch of management that deals with managing human resource is
la
known as Human Resource Management.
 Human Resource Management is a function of management concerned with
hiring, motivating and maintaining people in an organisation. It focuses on
sa
people in an organisation.
2. State Two Features of HRM
 Universally relevant
da
 Goal oriented
 A systematic approach
 It is intangible
Pa
1. Goal oriented: Goals is made possible through best utilisation of human resource
in an organisation.
2. It is intangible: Human resource management is a intangible function which can
w.
be measured only by results.

3. Mention Two Characteristics of Human Resource
 Human resource is the only factor of production that lives
ww
 Human resource created all other resources

 Human resources are movable
 Human resource can work as a team
4. What are the Managerial Functions of HRM
 Planning
 Organising
 Directing
 Controlling
1. Define the Term Human Resource Management
 “HRM as that part of management process which is primarily concerned with
the human constituents of an organisation”. - E. F. L. Brech

2. What are the Characteristics of Human Resources? (Any 3)

 Human resource exhibits innovation and creativity
 Human resource alone can think, act, analyse and interpret
 Human resources are emotional beings
3. What is the Significance of Human resource? (Any 3)
 It is only through human resource all other resources are effectively used
 Industrial relations depend on human resource
 Human relations is possible only through human resource
et
 Human resource manages all other factors of production
 Human resource can be utilised at all levels of management
i.N
 Human resources are well protected by legislative frameworks
1. Explain the Characteristics of Human Resource (Any 5)
la
 Human resource exhibits innovation and creativity
sa
 Human resource alone can think, act, analyse and interpret
 Human resources are emotional beings
da

2. Describe the Significance of Human Resource Management (Any 5)
1) To identify manpower needs
Pa
2) To incorporate change
3) To ensure the correct requirement of manpower
4) To select right man for right job
w.
5) To update the skill and knowledge

6) To appraise the performance of employees
7) To improve competitive advantage
ww
8) To provide incentives and bonus to best performers

9) To determine employee commitment
10) To emphasise socialisation
11) To promote favourable employee attitude
12) To provide scope for collective bargaining
1. To identify manpower needs
 Determination of manpower needs in an organisation is very important as it is
a form of investment.
 The number of men required is to be identified accurately to optimize the cost.
2. To incorporate change
 Change is constant in any organisation and this change has to be introduced in
such a way that the human resource management acts as an agent to make
the change effective.

3. To ensure the correct requirement of manpower

 At any time the organisation should not suffer from shortage or surplus
manpower which is made possible through human resource management.
4. To select right man for right job
 Human resource management ensures the right talent available for the right
job, so that no employee is either under qualified or over qualified.
5. To update the skill and knowledge
 Human resource management enables employees to remain up-to-date through
training and development programmes.
6. To appraise the performance of employees
 Periodical appraisal of performance of employees through human resource
management activities boosts up good performers and motivates slow
et
performers.
3. Discuss the Operative Functions HRM
1) Procurement
i.N
2) Development
3) Compensation
4) Retention
5) Integration
6) Maintenance
la
sa
1. Procurement
 Acquisition deals with job analysis, human resource planning, recruitment,
selection, placement and promotion.
da
2. Development
 It includes performance appraisal, training, executive development, and
organisational development.
Pa
3. Compensation
 It deals with job evaluation, wage and salary administration, incentives, bonus
schemes.
4. Retention
w.
 This is made possible through health and safety, social security, job
satisfaction and quality of work life.
5. Maintenance
ww
 This encourages employees to work with job satisfaction, reducing labour

turnover, for human resource.
6. Integration
 It is concerned with those activities that aim to bring about reconciliation
between personal interest and organizational interest.

CHAPTER 10 RECRUITMENT METHODS

1) Recruitment is the process of identifying................
a) Right Man for Right Job b) Good Performer
c) Right job d) All of the above
2) Recruitment bridges gap between .....................and...........................
a) Job seeker and job provider b) Job seeker and agent
c) Job provider and owner d) Owner and servant
3) Advertisement is a....................source of recruitment.
a) Internal b) External c) Agent d) Outsourcing
4) Transfer is an .........................source of recruitment.
a) Internal b) External c) Outsourcing d) None of the above
5) E - Recruitment is possible only through.................facility.
et
a) Computer b) Internet c) Broadband d) 4G
i.N
1. Give the Meaning of Recruitment
 Recruitment is the process of finding suitable candidates for the various posts
in an organisation.
la
2. What Is Promotion?
 Based on seniority and merits of the employees they are given opportunity to
move up in the organisational hierarchy.
sa
3. Write Any Two Internal Source of Recruitment
1) Transfer
2) Upgrading
da
3) Promotion
4) Demotion
5) Job rotation
Pa
6) Retention
7) Retired employees
8) Dependants
w.
9) Previous applicants
4. What is Meant by Poaching?
 Organisations instead of training and developing their own employees hire
ww
employees of other competitive companies by paying them more both financial

and non financial benefits.
 It is also called raiding.
1. What is Meant By Unsolicited Applicants?
 These are the applications of job seekers who voluntarily apply for the
vacancies not yet notified by the organisations.
2. What is Meant By Job Portals?
 Using internet job portals organisations can screen for the prospective
candidates and fill up their vacancies.
3. State the Steps in Recruitment Process Outsourcing
1) Requirement understanding
2) Advertise and source

3) Screening
4) Validation
5) Profile submission
6) Interview process and feedback
7) Selection and follow up
1. Explain the Internal Sources of Recruitment (Any 5)
1) Transfer
2) Upgrading
3) Promotion
4) Demotion
5) Job rotation
6) Retention
et
7) Retired employees
8) Dependants
i.N
9) Previous applicants
1. Transfer
 The simplest way by which an employee requirement can be filled is through
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transfer of employee from one department with surplus staff to that of
another with deficit staff.
2. Upgrading
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 Performance appraisal helps in the process of moving employees from a
lower position to a higher position.
3. Promotion
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 Based on seniority and merits of the employees they are given opportunity to
move up in the organisational hierarchy
4. Demotion
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 Movement of employee from a higher position to a lower position because of

poor performance continuously to make him realise the significance of
performance.
w.
5. Job rotation
 One single employee managing to learn how to perform in more than one job
on rotation.
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6. Retention
 The retiring employees can be used to meet the requirement after
superannuation as per management discretion
7. Dependants
 The legal heir or the dependent employee may be given a chance to replace
the deceased.
2. Explain the External Sources of Recruitment (Any 5)
Direct Indirect
1. Advertisements 1. Employee Referral
2. Unsolicited Applicants 2. Government Employment Exchanges
3. Walkins 3. Private Employment Agencies
4. Campus Recruitment 4. Employment Consultancies
5. Recruitment At Factory Gate 5. Professional Associations

6. Rival Firms 6. Deputation

7. E-Recruitment 7. Word Of Mouth
8. Labour Contractors
9. Job Portals
1. Advertisements
 The employer can advertise in dailies, journals, magazines etc. about the
vacancies in the organisation.
2. Unsolicited Applicants
 These are the applications of job seekers who voluntarily apply for the
vacancies not yet notified by the organisations.
3. Job Portals
 Using internet job portals organisations can screen for the prospective
et
candidates and fill up their vacancies.
4. Walkins
 Walk-in applicants with suitable qualification and requirement can be
i.N
another source of requirement.
5. Campus Recruitment
 Te organisations visit the educational institutions to identify and recruit
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suitable candidates.
6. Labour Contractors
sa
 Organisations recruit unskilled and manual labourers through these
contractors.
3. What is the Recent Trends in Recruitment?
da
1. Outsourcing
 There are outsourcing firms that help in the process of recruiting through
screening of applications and finding the right person for the job for which
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job they are paid service charges.

Recruitment Process Outsourcing
1) Requirement understanding
2) Advertise and source
w.
3) Screening
4) Validation
5) Profile submission
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6) Interview process and feedback

7) Selection and follow up
2. Poaching
 Organisations instead of training and developing their own employees hire
employees of other competitive companies by paying them more both
financial and non financial benefits.
 It is also called raiding.

CHAPTER 11 EMPLOYEE SELECTION PROCESS

1) The recruitment and Selection Process aimed at right kind of people.
a) At right people b) At right time c) To do right things d) All of the above
2) The poor quality of selection will mean extra cost on ..................... and
supervision.
a) Training b) Recruitment c) work quality d) None of these
3) ..................refers to the process of identifying and attracting job seekers so
as to build a pool of qualified job applicants.
a) Selection b) Training c) Recruitment d) Induction
4) Selection is usually considered as a.......................process.
a) Positive b) Negative c) Natural d) None of these
5) Which of the following test is used to measure the various characteristics of
et
the candidate?
a) Physical Test b) Psychological Test c) Attitude Test d) Proficiency tests
i.N
6) Which of the following orders is followed in a typical selection process.
a) application form test and or interview, reference check and physical
examination
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b) Application form test and or interview, reference check and physical
examination
c) Reference check, application form, test and interview and physical examination
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d) Physical examination test and on interview application term and reference
check
7) The purpose of an application blank is to gather information about the.......
da
a) Company b) Candidate
c) Questionnaire or Interview Schedule d) Competitors
8) Identify the test that acts as an instrument to discover the inherent ability
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of a candidate.
a) Aptitude Test b) Attitude Test c) Proficiency Test d) Physical Test
9) The process of eliminating unsuitable candidate is called..................
w.
a) Selection b) Recruitment c) Interview d) Induction

10) Scrutiny of application process is the..................
a) Last step in Selection process b) First step in Selection Process
ww
c) Third step in Selection Process d) None of the above

11) Selection process helps in..........................
a) Locating candidates b) Determining the suitability of the candidates
c) Preparing employees for training d) None of these
12) The process of placing the right man on the right job is called.....................
a) Training b) Placement c) Promotion d) Transfer
13) Probation/Trial period signifies.....................
a) One Year to Two Years b) One Year to Three Years
c) Two Years to Four Years d) None of the above
14) Job first man next is one of the principles of...........................
a) Test b) Interview c) Training d) Placement


1. What is Selection?
 Selection is the process of choosing the most suitable person for the vacant
position in the organization.
2. What is An Interview?
 The interview represents a face to face interaction between the interviewer and
interviewee.
 “It is a purpose full exchange of ideas, the answering of questions, and
communication between two or more persons”.
3. What is Intelligence Test?
 Intelligence tests are of psychological tests, that is designed to measure a
variety of mental ability, the individual capacity of a candidate.
4. What Do You Mean By Placement?
et
 Placement is a process of assigning a specific job to each and every candidate
selected.
i.N
 It includes the initial assignment of new employees and promotion, transfer, or
demotion of present employees.
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1. What is Stress Interview?
 This type of interview is conducted to test the temperament and emotional
balance of the candidate interviewed.
sa
 The interviewer deliberately creates a stressful situation by directing the
candidate to do irrational and irritating activities.
 They assess the suitability of the candidate by observing the reaction and
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response of the candidate to stressful situations.

2. What is Structured Interview?
 Under this method, a series of questions to be asked by the interviewer are pre-
Pa
prepared by the interviewer and only these questions are asked in the
interview.
3. Name the Types Of Selection Test?
w.
1. Ability Tests
1. Aptitude
2. Achievement
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3. Intelligence
4. Judgement
2. Personality
1. Interest
2. Personality
3. Projective
4. Attitude
4. What Do You Mean By Achievement Test?
 This test measures a candidate’s capacity to achieve in a particular field. In
other words, this test measures a candidate’s level of skill in certain areas,
accomplishment, and knowledge in a particular subject.
 It is also called a proficiency test.


1. Briefly Explain the Various Types of Tests. (Any 5)
1. Ability Tests
1. Aptitude
2. Achievement
3. Intelligence
4. Judgement
2. Personality
1. Interest
2. Personality
3. Projective
4. Attitude
1. Aptitude
et
 Aptitude test is a test to measure suitability of the candidates for the
post/role.
i.N
 Numerical Reasoning Test, Verbal Reasoning Test, Inductive Reasoning Test,
Mechanical Reasoning Test, Spatial Reasoning Test, Vocabulary Test.
2. Achievement
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 This test measures a candidate’s capacity to achieve in a particular field. In
other words, this test measures a candidate’s level of skill in certain areas,
accomplishment, and knowledge in a particular subject.
sa
 It is also called a proficiency test.
3. Intelligence
 Intelligence tests are one of the psychological tests, that is designed to
da
measure the variety of mental ability, individual capacity of a candidate.

4. Judgement
 This test is conducted to test the presence of mind and reasoning of the
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candidates.
5. Interest
 Interest test measures a candidate’s extent of interest in a particular area
w.
chosen by him/her so that organization can assign the job suited to

his/her in term.
2. Explain the Important Methods of Interview (Any 5)
ww
1) Screening / Telephone Interview

2) In depth Interview
3) Video Conferencing Interview
4) Group Interview
5) Panel Interview
6) Preliminary Interview
7) Stress Interview
8) Structure/Guided/Planned Interview
9) Unstructured Interview
10) Online Interview
1. Stress Interview
 This type of interview is conducted to test the temperament and emotional
balance of the candidate interviewed.

 The interviewer deliberately creates a stressful situation by directing the

candidate to do irrational and irritating activities.
 They assess the suitability of the candidate by observing the reaction and
response of the candidate to stressful situations.
2. Structure/Guided/Planned Interview
 Under this method, a series of questions to be asked by the interviewer are pre-
prepared by the interviewer and only these questions are asked in the
interview.
3. Online Interview
 These days interviews are conducted by means of internet via
 Skype, Wechat, Google duo, Viber, Whatsapp or Video chat applications.
4. Group Interview
 A group interview is a screening process where multiple candidates are
et
interviewed at the same time.
 Group interview is a good time saving type of interview.
i.N
5. Video Conferencing Interview
 Video conferences interview is similar to face to face interview.
 Video conferencing interview is a kind of conference call that connects the
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candidate with companies located across various geographies.
3. Differentiate Recruitment and Selection. (Any 5)
Basis of Recruitment Selection
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Comparison
Approach Positive One Negative One
da
Sequence First Second

Method It Is An Economical Method It Is An Expensive Method
Process Very Simple Very Complex And Complicated
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Contractual No Contractual Relation It Creates Contractual Relation

Relation
Time Hence Less time is required Hence more time is required
w.
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CHAPTER 12 EMPLOYEE TRAINING METHOD

1) Off the Job training is given..................
a) In the Class Room b) On Off Days
c) Outside the Factory d) In the Playground
2) Vestibule training is provided.....................
a) On the job b) In the Class Room
c) In a Situation Similar to Actual Working Environment d) By the committee
3) Improves Skill Levels of employees to ensure better job performance.............
a) Training b) Selection c) Recruitment d) Performance appraisal
4) When trainees are trained by supervisor or by superior at the job is called......
a) Vestibule Training b) Refresher Training
c) Role Play d) Apprenticeship Training
et
5) .............................is useful to prevent skill obsolescence of employees.
a) Training b) Job analysis c) Selection d) Recruitment
i.N
6) Training methods can be classified into..............and..................training.
a) Job rotation and Job enrichment b) On the Job and Off the Job
c) Job analysis and Job design d) Physical and mental
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7) Case study method is ...........................type of trainee.
a) Only theoretical training b) Both Theory and Practical Training
c) Hands on training d) Abservation Training
sa
8) Elaborate discussion on specific topic comes under ...................method of
training.
a) Under study b) Coaching c) Conferences d) Counselling
da

1. What Is Meant By Training?
 “Training is the act of increasing the Knowledge and skills of an employee for
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doing particular jobs”. (OR)

 Training is the act of increasing/enhancing the new skill of problem-solving
activity and technical knowledge of an employee for doing the jobs themselves.
w.
2. What Is Mentoring Training Method?

 Mentoring is the process of sharing knowledge and experience of an employee.
 The focus in this training is on the development of attitude of trainees.
ww
 It is always done by senior person; it is also one-to-one interaction like

coaching.
 The mentor is responsible for the providing necessary support to trainees, and
feedback
3. What is Role Play?
 Under this method, trainees have explained the situation and assigned roles.
 They have to act out the roles assigned to them without any rehearsal.
 There are no pre-prepared dialogues.
4. State E-Learning Method?
 E-learning is the use to technological process of a traditional classroom or
office. It refers to online learning or web-based training.
 Web-based training is anywhere and anytime information can pass over the
internet.


1. What Is Vestibule Training?
 Vestibule training is the training of employees in an environment similar to the
actual work environment. Artificially created for training purpose.
 This type of training is given to avoid any damage or loss to machinery in the
actual place by trainees.
2. What do you mean by on the Job Training?
 On the job training refers to the training which is given to the employee at the
workplace by his immediate supervisor.
 It is based on the principle of “Learning by Doing and Learning While Earning”.
 It is suitable for imparting skills that can be learnt in a relatively short period of
time.
3. Write Down Various Steps in a Training Programme
et
1) Whom to Train?
2) Who is the Trainee?
i.N
3) Who are Trainers?
4) What Method will be used for Training?
5) What should be Level the Training?
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6) Where to Conduct the Training Programme?
4. Write Short Note on Trainer and Trainee
1) Trainee
sa
 A person who is learning and practicing the skills of a particular job is
called a trainee.
 Trainees should be selected on the basis of self-interest and
da
recommendation by the supervisor.

2) Trainer
 A trainer is a person who teaches skills to the employee and prepares
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them for job activity.

 Trainers may be supervisor, co-workers, HR staffs, specialists in the
other parts of the company, outside consultants.
w.
 The trainers is otherwise called Instructor, Coach, Teacher, Mentor,

Adviser, Counsellor, Guide, Guru, Manager, Handler, Tutor And
Educator etc.
ww

1. Discuss Various Types Of Training. (Any 5)
On The Job Training Off The Job Training
 Coaching Method  Lecture Method
 Mentoring Method  Group Discussion Method
 Job Rotation Method  Case Study Method
 Job Instruction Technique Method  Role Play Method
 Apprenticeship Training Method  Seminar / Conference Method
 Committee Assignment Method  Field Trip Method
 Understudy / Internship Training  Vestibule Training Method
Method
 E-Learning Method

1. Coaching Method
 In this method of training, the superior teaches or guides the new employee
about the knowledge and skills relevant to a given job.
 In this method superior plays the role of coach or guide and an instructor.
2. Mentoring Method
 Mentoring is the process of sharing the knowledge and experience of an
employee.
 The focus in this training is on the development of attitude of trainees.
 It is mostly used for managerial employees.
3. Internship Training Method
 A superior gives training to subordinates or understudy like an assistant to
a manager.
4. Lecture Method
et
 Under this method, trainees are educated about concepts, theories, and
principles in any particular area.
i.N
5. E-learning Method
 E-learning is the use of technological processes to access a traditional
classroom or office.
la
6. Job Rotation Method
 Under this method a trainee is periodically shifted from one work to another
work and from one department to another department for a particular period
sa
of time.
7. Role play
 Under this method, trainees have explained the situation and assigned roles.
da
 They have to act out the roles assigned to them without any rehearsal.
 There are no pre-prepared dialogues.
2. What Is The Difference Between On The Job Training And Off The Job Training?
Pa
(Any 5)
Basis for
comparison On the Job Training Of the Job Training
w.
Cost It Is Cheapest To Carry Out It Requires Expenses Like

Separate Training Rooms,
Specialist, And Resources Like
ww
Projectors.
Location At The Work Place Away From The Work Place
Approach Practical Approach Theoretical Approach
Principle Learning By Performing Learning By Acquiring Knowledge
Carried Out It Is Carried Out By The Training Which Is Provided By The
Experienced Employee Experts.
Methods Coaching, Job Rotation, Role Plays, Seminar, Lectures,
Apprenticeship, Mentoring, Case Studies, Field Trip,
Under Study, Job Programmed Instruction,
Instruction. Demonstration, E-Learning.

3. Explain The Benefits Of Training. (2 Points From Each Headings)

1. Benefits to the Organization
 It improves the skill of employees and increases productivity.
 It reduces wastages of materials and idle time.
 It minimizes the time for supervision.
 It exposes employees to latest trends.
 It reduces labour turnover of employee
2. Benefits to the Employees
 It increases the knowledge, skill of the employees.
 It enables him to gain promotion in a shorter time.
 It improves the employee’s productivity.
 Employees get higher earnings through incentives and rewards.
3. Benefits of Customer
et
 Customers get better quality of product and service.
 Customers get innovative products or value-added or feature-rich products.
i.N
la
sa
da
Pa
w.
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UNIT 5 ELEMENTS OF MARKETING

CHAPTER 13 CONCEPT OF MARKET AND MARKETER
1) One who promotes (or) Exchange of goods or services for money is called as...
a) Seller b) Marketer c) Customer d) Manager
2) The marketer initially wants to know in the marketing is......................
a) Qualification of the customer b) Quality of the product
c) Background of the customers d) Needs of the customers
3) The Spot market is classified on the basis of...................
a) Commodity b) Transaction c) Regulation d) Time
4) Which one of the market deals in the purchase and sale of shares and
debentures?
a) Stock Exchange Market b) Manufactured Goods Market
et
c) Local Market d) Family Market
5) Stock Exchange Market is also called…………………..
i.N
a) Spot Market b) Local Market c) Security Market d) National Market
1. What is Market?
la
 The word market is derived from the Latin word ‘Marcatus’
 “Market means a place where goods are bought (or) sold”. (Or)
 “The meeting place of buyers and sellers in an area is called Market”.
sa
2. Define Marketer
 “A person whose duties include the identification of the goods and services
desired by a set of consumers, as well as the marketing of those goods and
da
services on behalf of a company”.

3. What is mean by Regulated Market?
 These are types of markets which are organised, controlled and regulated by
Pa
statutory measures.
 Example: Stock Exchanges of Mumbai, Chennai, Kolkata etc.
4. What is meant by Spot Market?
 In such markets, goods are exchanged and the physical delivery of goods takes
w.
place immediately.
5. What is meant by Commodity Market?
 A commodity market is a place where produced goods or consumer goods are
ww
bought and sold.

6. What is meant by Future Market?
 Contracts are made over the price for future delivery. The dealing and
settlement take place on different dates.
1. What can be Marketed in the Market? (Any 3)
1) Goods
2) Services
3) Experiences
4) Events
5) Persons
6) Places
7) Properties

8) Organisations
9) Information
10) Ideas
1. Goods
 Market goods like consumer durables, electronic products, machineries,
Computers and its software and hardware etc.,
2. Services
 Not only physical goods can be marketed.
 Even the services of many organisations can be marketed to the
consumers namely banking, insurance, finance, hospitality, tourism.
3. Information
 Information is the most valuable product that can be marketed today.
 The data collected by an organisation can be used as a product for this
et
purpose.
4. Events
i.N
 The event marketing aims at promoting and marketing of special events,
shows, exhibitions, fairs, performances, sports events like World Cup,
Olympics, T20 etc.,
la
2. Mention Any Three Role of Marketer?
1) Instigator
2) Innovator
sa
3) Integrator
4) Implementer
1. Instigator
da
 Marketer keenly watches the developments taking place in the market

and identifies marketing opportunities emerging in the ever changing
market.
Pa
2. Innovator
 Marketer seeks to differentiate his products/services by adding
additional features or functionalities to the existing product, modifying
w.
the pricing structure.

3. Integrator
 Marketer plays a role of integrator in the sense that he collects feedback
ww
or vital inputs from channel members and consumers

4. Implementer
 He/she actually converts marketing opportunities into marketable
product with the help of several functional teams put in place in the
organisation.
3. Explain the Types of Market on the Basis of Time
1) Very Short Period Market
2) Short Period Market
3) Long Period Market
1. Very Short Period Market
 Markets which deal in perishable goods like milk, Fish, Fruits,
Vegetables, etc.

2. Short Period Market

 In certain goods, supply is adjusted to meet the demand.
 The demand is greater than supply. Like Rice, wheat, etc
3. Long Period Market
 This type of market deals in durable goods.
 [TV – Fridge – computer etc] where the goods and services are dealt for
longer period usages.
1. How the Market can be Classified? (Any 5)
1) On the Basis of Geographical Area
1. Family Market
2. Local Market
3. National Market
et
4. International Market or World Market
2) On the Basis of Commodities/Goods
i.N
1. Commodity Market
i. Produce Exchange Market
ii. Manufactured Goods Market
la
iii. Bullion Market
2. Capital Markets
i. Money Market
sa
ii. Foreign Exchange Market
iii. The Stock Market
3) On the Basis of Economics
da
1. Perfect Market
2. Imperfect Market
4) On the Basis of Transaction
Pa
1. Spot Market
2. Future Market
5) On the Basis of Regulation
w.
1. Regulated Market
2. Unregulated Market
6) On the Basis of Time
ww
1. Very Short Period Market

2. Short Period Market
3. Long Period Market
7) On the Basis of Volume of Business
1. Wholesale Market
2. Retail Market
8) On the Basis of Importance
1. Primary Market
2. Secondary Market
3. Terminal Market
1. Family Market
 When exchange of goods or services are confined within a family or close
members of the family, such a market can be called as family market.

2. Bullion Market
 This type of market deals with the purchase or sale of gold and silver.
 Bullion markets of Mumbai, Kolkata, Kanpur etc., are examples of such
markets.
3. Perfect Market
 Large number of buyers and sellers are there.
 Prices should be uniform throughout the market.
4. Regulated Market
 These are types of markets which are organised, controlled and regulated
by statutory measures.
 Example: Stock Exchanges of Mumbai, Chennai, Kolkata etc.
5. Spot Market
 In such markets, goods are exchanged and the physical delivery of goods
et
takes place immediately.
2. How the Market can be Classified on the Basis Of Economics?
i.N
1) Perfect Market
1. Large number of buyers and sellers are there.
2. Prices should be uniform throughout the market.
la
3. Buyers and sellers have a perfect knowledge of market.
4. Goods can be moved from one place to another without restrictions.
5. The goods are identical or homogenous.
sa
2) Imperfect Market
1. Products are similar but not identical.
2. Prices are not uniform.
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3. There is lack of communication.

4. There are restrictions on the movement of goods.
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w.
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CHAPTER 14 MARKETING AND MARKETING MIX

1) The initial stage of Marketing system is…………………….
a) Monopoly system b) Exchange to Money
c) Barter system d) Self producing
2) Who is supreme in the Market?
a) Customer b) Seller c) Wholesaler d) Retailer
3) In the following variables which one is not the variable of marketing mix?
a) Place Variable b) Product Variable
c) Program Variable d) Price Variable
4) Marketing mix means a marketing program that is offered by a firm to its
target……………………. to earn profits through satisfaction of their wants.
a) Wholesaler b) Retailer c) Consumer d) Seller
et
5) Which one is the example of Intangible product?
a) Education b) Mobiles c) Garments d) Vehicles
i.N
1. What is Marketing?
 Marketing is one of the business functions that all activities that take place in
la
relation to markets for actualise potential exchanges for the purpose of
satisfying human needs and wants.
2. Define Marketing Mix
sa
Marketing mix is a pack of Four
 Product Variable
 Price Variable
da
 Promotion Variable
 Place Variable
 Mr. Jerome McCarthy
Pa
3. What is Meant by Grading?

 Grading means the classification of standardized products into certain well-
defined classes.
w.

1. What are the Objectives of Marketing?
 Intelligent and capable application of modern marketing policies.
ww
 To develop the marketing field.

 To develop guiding policies and their implementation for a good result.
 To suggest solutions by studying the problems relating to marketing.
 To find sources for further information concerning the market problems.
2. What are the Concept of marketing?
1) What I can sell?
 Make what you can sell, but do not try to sell what you can make.
2) Shall I first create products?
 No, first create a customer, and then create products.
3) Shall I love my products?
 No love your customers and not the products.
4) Who is supreme in markets? - Customer is supreme or king
5) Who will shape my decisions? – Customer’s preferences shape you decision.

3. What do you mean By Marketing Mix? Write Any Two Elements.

 A list of important elements or ingredients that make up the marketing
programme and the list of forces having bearing on marketing operations.
1. Product Variable
 Product is the main element of marketing. Without a product, there can be no
marketing.
2. Price Variable
 Price is the value of a product expressed in monetary terms. It is the amount
charged for the product.
3. Promotion Variable
 Advertisement, promotion, sales force, packaging.
4. Place Variable
 Channel, Inventory, Distribution, Logistics.
et
1. Discuss about the Evolution Of Marketing. (Any 5)
i.N
1) Barter System
2) Production Orientation
3) Sales Orientation
la
4) Marketing Orientation
5) Consumer Orientation
6) Management Orientation
sa
1. Barter System
 The goods are exchanged against goods, without any other medium of
exchange, like money.
da
2. Production Orientation
 This was a stage where producers, instead of being concerned with the
consumer preferences, concentrated on the mass production of goods for the
Pa
purpose of profit.
 They cared very little about the customers.
3. Sales Orientation
w.
 The stage witnessed major changes in all the spheres of economic life.
 The selling became the dominant factor, without any efforts for the
satisfaction of the consumer needs.
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4. Marketing Orientation
 Customers’ importance was realised but only as a means of disposing of
goods produced. Competition became more stiff.
5. Consumer Orientation
 Under this stage only such products are brought forward to the markets
which are capable of satisfying the tastes, preferences and expectations of
the consumers-consumer satisfaction.
6. Management Orientation
 Business activities with the objective of planning, promoting and
distributing want-satisfying products and services to the present and
potential customers.

2. Narrate the Elements of Marketing mix

1) Product
2) Price
3) Place (Physical Distribution)
4) Promotion
1. Product
 Product is the main element of marketing.
 Without a product, there can be no marketing.
 “A product is anything that can be offered to a market for attention,
acquisition, consumption that might satisfy a want or a need”
2. Price
 Price is the value of a product expressed in monetary terms.
 It is the amount charged for the product.
et
 “Price is the amount of money charged for a product or service”.
3. Place (Physical Distribution)
i.N
 The fourth element of product mix, namely place or physical distribution
facilitates the movement of products from the place of manufacture to the
place of consumption at the right time.
la
 The qualified product will be wasted if it is not transferred to the consumers.
4. Promotion
 An excellent product with competitive price cannot achieve a desired success
sa
and acceptance in market.
 Special features and benefits are conveyed effectively to the potential
consumers.
da
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w.
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CHAPTER 15 RECENT TRENDS IN MARKETING

1) Selling goods/ services through internet is......................
a. Green Marketing b. E- Business
c. Social Marketing d. Meta Marketing
2) Which is gateway to internet?
a. Portal b. CPU c. Modem d. Webnaire
3) Which one represents a cluster of manufacturers, content providers and
online retailers organised around an activity?
a. Virtual mall b. Association c. Metomediary d. Portal
4) Social marketing deals with...................
a. Society b. Social Class c. Social Change d. Social Evil
5) Effective use of Social media marketing increase conversion rates of............
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a. Customer to Buyers b. Retailer to Customers
c. One Buyer to Another Buyer’s d. Direct Contact of Marketer
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6) A company’s products and prices is visually represented by....................
a. Shopping Cart b. Web Portal
c. Electronic Catalogue d. Revenue Model
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7) Green Shelter concept was introduced by group.........................
a. ACME b. Tata c. Reliance d. ICI
8) Pure play retailers are called.................
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a. Market Creators b. Transaction Brokers c. Merchants d. Agents
1. What is Service Marketing?
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 Service marketing is a specialized branch of marketing.

 Service marketing denotes the processing of selling service goods like
telecommunication, banking, insurance, car rentals, healthcare, tourism,
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professional services, repairs etc.

2. What is Green Marketing?
 Green marketing implies marketing Environmentally Friendly products.
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 Green marketing involves developing and promoting products and services

which satisfy customers’ wants and needs for quality, performance, affordable
pricing and convenience – all without causing a detrimental impact on the
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environment.
 Green marketing is also known as environmental marketing, ecological
marketing eco-friendly marketing and sustainable marketing.
3. What is Ambush Marketing?
 It is a new technique where by a particular advertiser seeks to connect his
product to the event in the mind of potential customers without paying
sponsoring expenses to the event.
4. What is Social Marketing?
 Social marketing is a new marketing tool
 It is the systematic application of marketing philosophy and techniques to
achieve specific behavioural goals that ensure social good
 [Eg] Asking people- Not to smoke in a public place.


1. What are the Advantages of E-Marketing?
 Any Time market E - Marketing provides 24 hours and 7 days “24/7” service to
its users.
 Thus products bought through e-marketing become cheaper.
 Customer can buy whatever they want/need just by browsing the various sites.
2. Discuss the Objectives E-Marketing. (Any 3)
 Expansion of market share
 Reduction of distribution and promotional expenses.
 Achieving higher brand awareness.
 Strengthening database.
3. Explain in Detail About Niche marketing
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 “Niche marketing “denotes a strategy of directing all marketing efforts
towards one well defined segment of the population.
 Actually, there is no market in a niche market.
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 It is found by the company, by identifying the need of customers who are not
served or underserved by the competitors.
 It involves a specific target audience with a specialized offering.
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 It aimed at being a big fish in a small pond instead of being a small fish in a big
pond.
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 The sports channels like START sports, ESPN, START Cricket and FOX Sports
target the niche market of sports enthusiasts.
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1. Explain in Detail How Traditional Marketing Differ From E-Marketing.

E-Marketing Traditional Marketing
It Is Very Economical And Faster Way To It Is Very Expensive And Takes More Time
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Promote The Products. To Promote Product.

It Is Quiet Easier For Promoting Product It Is Very Expensive And Time Consuming
Globally In The Short Time. To Promote Product/ Service
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E-Business Enterprises Can Expand It Needs More Man Power.

Their Operation With Minimum
Manpower.
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In This Marketing Product Can Be Sold That Is Not Possible In Traditional

Or Bought 24 X 7, Round The Year With Marketing.
Minimum Manpower
2. Discuss Any Two New Methods Of Marketing

1) E-Marketing
2) E-Tailing
3) Green Marketing
4) Social Marketing
5) Rural Marketing
6) Service Marketing
7) Commodity Exchanges

8) Niche Marketing
9) Viral Marketing
10) Ambush Marketing
11) Multilevel Marketing
12) Guerrilla Marketing
13) Referral Marketing
1. Guerrilla Marketing
 “Guerrilla marketing “represents an advertisement strategy to promote or
services on streets or other public places with monkey like malls, parks,
beach etc.
2. Referral Marketing
 “Referral marketing is the method of promoting products or services to
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new customers through existing customers”.
3. Ambush Marketing
 It is a new technique where by a particular advertiser seeks to connect
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his product to the event in the mind of potential customers without
paying sponsoring expenses to the event.
4. E-Tailing
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 E-Tailing or electronic retailing refers to selling of goods and services
through a shopping website or internet and online through virtual store
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to the ultimate consumer
 E-Tailing is a business to consumer (B2C) Transaction model.
5. Service marketing
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 Service marketing is a specialized branch of marketing.

 Service marketing denotes the processing of selling service goods like
telecommunication, banking, insurance, car rentals, healthcare, tourism,
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professional services, repairs etc.

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UNIT 6 CONSUMER PROTECTION

CHAPTER 16 CONSUMERISM
1) The term ‘consumerism’ came into existence in the year................
a) 1960 b) 1957 c) 1954 d) 1958
2) Who is the father of Consumer Movement?
a) Mahatma Gandhi b) Mr. Jhon F. Kennedy
c) Ralph Nader d) Jawaharlal Nehru
3) Sale of Goods Act was passed in the year?
a) 1962 b) 1972 c) 1930 d) 1985
4) The main objective of all business enterprises is.............................
a) Providing service b) Providing better standard of life
c) Providing necessities to the society d) Earn profit
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5) The Consumer Protection Act came into force with effect from.......................
a) 1.1.1986 b) 1.4.1986 c) 15.4.1987 d) 15.4.1990
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6) .......................of every year is declared as a Consumer Protection Day to
educate the public about their rights and responsibilities.
a) August 15 b) April 15 c) March 15 d) September 15
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7) Any person who buys any goods or avails services for personal use, for a
consideration is called as..........................
a) Customer b) Consumer c) Buyer d) User
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8) The General Assembly of United Nations passed resolution of consumer
protection guidelines on......................
a)1985 b)1958 c)1986 d)1988
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1. Who is a Consumer?
 A consumer is one who consumes goods or services for a consideration.
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 One, who avails services such as banking, transport, insurance, etc.,

2. Give Two Examples of Adulteration
 Powdered rice/wheat is adulterated with starch.
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 Coffee powder is adulterated with tamarind seed.

 Mixing of stones with grains
 Mixing of coconut oil with palmolein
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 Papayas seed is added to black pepper

 Chilli powder is adulterated with brick powder
3. What is Caveat Emptor?
 ‘Caveat emptor’ is a Latin term that means "let the buyer beware."
 The principle of caveat emptor serves as a warning to the buyers that they have
no recourse with the seller if the product does not meet their expectations.
4. What is Caveat Venditor?
 The principle of caveat venditor, which means "let the seller beware," by which
goods are covered by an implied warranty of merchantability.
5. Write Short Notes on Consumer Protection Act, 1986
 The Act is referred in short as “COPRA”.
 The Consumer Protection Act 1986 seeks to protect and promote the interests
of consumers.


1. What are the Important Legislations Related To Consumerism in India? (Any 3)
1) The Indian Contract Act, 1872
a. Was passed to bind the people on the promise made in the contract.
2) The Sale of Goods Act, 1930
3) The Trademark Act, 1999
a. Prevents the use of fraudulent marks on the product.
4) The Competition Act, 2002
a. Protects the consumers against unhealthy competition.
5) The Essential Commodities Act, 1955
6) The Public Liability Insurance act, 1991
7) The prevention of food adulteration Act 1954
8) Weight and measures Act 1976
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9) The competition Act 2002
2. What is meant by Artificial Scarcity?
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 There are certain situations where the shop-keepers put up the board ‘No
Stock” in front of their shops, even though there is plenty of stock in the
store. (Or)
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 Even though there is plenty of stock in the store, the Shopkeepers put the
board ‘No Stock’ in front of their store and try to raise the price of goods.
Example: Hoarding of onion, petrol, black market of cinema ticket.
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3. Write the Importance of Consumerism. (Any 3)
1) Awakening and uniting consumers.
2) Discouraging unfair trade practices.
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3) Protecting against exploitation.

4) Awakening the government.
5) Providing complete and latest information.
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6) Discouraging anti-social activities

1. How Consumers are Exploited? (Any 5)
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1) Selling at Higher Price

2) Adulteration
3) Duplicate or Spurious goods
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4) Artificial Scarcity
5) Sub-standard
6) Warranty and Services
7) Unsuitability of Products
8) False Advertisements
1. Selling at Higher Price
 The price charged by the seller for a product service may not be
commensurate with the quality but at times it is more than the fair price.
2. Adulteration
 Mixing of stones with grains
 Mixing of coconut oil with palmolein
 Papayas seed is added to black pepper
 Chilli powder is adulterated with brick powder

3. Sub-standard
 On opening a packet or sealed container one may find the content to be of
poor quality.
4. Artificial Scarcity
 There are certain situations where the shop-keepers put up the board ‘No
Stock” in front of their shops, even though there is plenty of stock in the
store.
5. Warranty and Services
 In case of consumer durable goods like televisions, washing machines,
refrigerators, cars, two wheelers and air conditioners etc.
6. False Advertisements
 The main purpose of advertisement is to educate the consuming public and
customers of various aspects of the products/service. In reality,
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advertisements convey very little information about the product.
2. Explain the Role of Business in Consumer Protection. (Any 5)
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1) Avoidance of Price Hike
2) Avoidance of Hoarding
3) Guarantees for Good Quality
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4) Product Information
5) Truth in advertising
6) Protection from the Hazard
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7) Money Refund Guarantee
8) Consumer Grievances
1. Avoidance of Price Hike
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 Business enterprises should desist from hiking the price in the context of
acute shortage of goods /articles.
2. Avoidance of Hoarding
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 Business enterprises should allow the business to flow normally.

 It should not indulge in hoarding and black marketing to earn maximum
possible profit in the short term at the cost of consumers.
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3. Guarantees for Good Quality

 Business enterprises should not give false warranty for the products. It
should ensure supply of good quality.
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4. Product Information
 Business enterprises should disclose correct, complete and accurate
information about the product viz. size, quality, quantity, substances, use,
side effects, precautions, weight, exchange, mode of application etc.
5. Truth in advertising
 Business enterprises should not convey false, untrue, bogus information
relating to the product through the advertisements in media and thus
mislead the consumers.
6. Consumer Grievances
 Where the business enterprises have customer care department, it should
handle the grievances’ of consumer immediately or within a definite time
frame.

3. What are the Objectives of Consumer Protection Act, 1986? (Any 5)

1) Protecting consumers from unfair trade practices of traders.
2) Empowering consumers to seek redressal against exploitation.
3) Educating the consumer of their rights and duties.
4) Protection of consumers against marketing of goods which are hazardous and
dangerous to life and property of consumers.
5) Providing correct and complete information about quality, quantity, purity,
price and standard of goods purchased by consumers.
6) Ensuring better standard of living for consumers by providing them with
quality products at fair price.
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CHAPTER 17 RIGHTS, DUTIES & RESPONSIBILITIES OF CONSUMERS

1) The final aim of modern marketing is................................
a. Maximum Profit b. Minimum Profit
c. Consumer Satisfaction d. Service to the Society
2) .............................is the king of modern marketing.
a. Consumer b. Wholesaler c. Producer d. Retailer
3) As the consumer is having the rights, they are also having..................
a. Measures b. Promotion c. Responsibilities d. Duties
4) Which of the following is not a consumer right summed up by John F.
Kennedy.
a. Right to Safety b. Right to Choose
c. Right to Consume d. Right to be Informed
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5) It is the responsibility of a consumer that he must obtain..........................as
a proof for the purchase of goods.
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a. Cash Receipt b. Warranty Card c. Invoice d. All of these
1. Write Short Notes on: “Right to be informed.”
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 Consumers should be given all the relevant facts about the product.
 This implies that the manufacturer and the dealer are expected to disclose all
the material facts relevant and relating to the product.
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2. What are the Rights of Consumer According to John F. Kennedy?
 “The Right of Safety,
 The Right to be informed,
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 The Right to choose

 The Right to be heard.” “Mr. John F. Kennedy”
3. Which is the Supreme Objective of Business?
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 Satisfaction of consumers wants and needs is stated to be the prime and

supreme objective of a business.
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1. What do you understand by “Right to Redressal”

 Compensation within a reasonable time
 Prompt settlement of complaints and claims
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 Boost consumer confidence

 Fair and just settlement of deserving claims in a definite time frame
2. What do you understand About” Right To Protection of Health and Safety”
 There may be few products that are more likely to cause physical danger to
consumers’ health, lives and property.
 They may contain potentially harmful substances which are dangerous from
the consumer welfare point of view.
 The best examples of this kind are Food additives, colours, emulsifiers,
preservatives.
1. Explain the Duties of Consumers. (Any 5)
1) Buying Quality Products at Reasonable Price
2) Ensure the Weights and Measurement before Making Purchases

3) Reading the Label Carefully

4) Beware of False and Attractive Advertisements
5) Misleading Schemes
6) Ensuring the Receipt of Cash Bill
7) Buying from Reputed Shops
1. Buying Quality Products at Reasonable Price
 It is the responsibility of a consumer to purchase a product after gaining a
thorough knowledge of its price, quality and other terms and conditions.
2. Ensure the Weights and Measurement before Making Purchases
 The sellers often cheat consumer by using unfair weights and measures.
 The consumer should ensure that he/she is getting the product of exact weight
and measure.
3. Reading the Label Carefully
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 It is the duty of the consumer to thoroughly read the label of the product.
 It should have correct, complete and true information about the product.
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4. Beware of False and Attractive Advertisements
 Often the products are not as attractive as shown in the advertisement by the
sellers.
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 Hence, it is the prime duty of consumer not to get misled by such fraudulent
advertisements.
5. Ensuring the Receipt of Cash Bill
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 It is a legitimate duty of consumers to collect cash receipt and warranty card
supplied along with bills.
 This will help them in seeking redressal for their grievances.
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6. Buying from Reputed Shops

 It is advisable for the consumer to make purchase from the reputed shops or
government shops like super bazaar, cooperative stores, and the like
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2. What are the Responsibilities of Consumers? (Any 5)

1) The consumer must pay the price of the goods according to the terms and
conditions of the sale contract.
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2) The duty of the consumer to apply to the seller for the delivery of goods.
Otherwise, goods will not be delivered
3) He is responsible to take delivery of goods on the due date and time.
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4) The consumer is bound to pay any interest or special damages caused to the
seller in case if there is a delay in the payment.
5) The consumer must ask and collect the invoice, cash receipt, delivery note,
guarantee card.
6) The consumer has to follow and observe strictly the instruction and
precautions while using the products.
7) He has a responsibility to tell the seller of his requirements and expectations
from the product.
8) He must file a complaint with the seller concerned about defects or
shortcoming noticed in their products and services.

CHAPTER 18 GRIEVANCE REDRESSAL MECHANISM

1) The Chairman of the National Consumer Disputes Redressal Council is...........
a) Serving or Retired Judge of the Supreme Court of India
b) Prime Minister c) President of India d) None of the above
2) The Chairman of the State Consumer Protection Council is...........................
a) Judge of a High Court b) Chief Minister
c) Finance Minister d) None of the above
3) The Chairman of the District Forum is..................
a) District Judge b) High Court Judge
c) Supreme Court Judge d) None of the above
4) The State Commission can entertain complaints where the value of the goods
or services and the compensation, if any claimed exceed.................
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a) Rs. 2 lakhs but does not exceed Rs. 5 lakhs
b) Rs. 20 lakhs but does not exceed Rs. 1 crore
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c) Rs. 3 lakhs but does not exceed Rs. 5 lakhs
d) Rs. 4 lakhs but does not exceed Rs. 20 lakhs
5) The National Consumer Disputes Redressal Commission has jurisdiction to
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entertain complaints where the value of goods/services complained against
and the compensation, if any, claimed is...............
a) Exceeding Rs. 1 crore b) Exceeding Rs. 10 lakhs
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c) Exceeding Rs. 5 lakhs d) Exceeding Rs. 12 lakhs
6) The District Forum can entertain complaints where the value of goods or
services and the compensation if any claimed is less than.................
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a) Below Rs. 10,00,000 b) Below Rs. 20,00,000

c) Below Rs. 40,00,000 d )Below Rs. 50,00,000
7) The International Organisation of Consumers Unions (IOCU) was first
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established in....................
a) 1960 b) 1965 c) 1967 d) 1987
8) Consumer awareness covers the following:
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a) Consumer Awareness About Maximum Retail Price (MRP)

b) Consumer Awareness About Fair Price Shop
c) Consumer Awareness About Price, Quality, And Expiry Date Of The Product
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d) All of the Above

9) Complaints can also be filed by the.....................
a) Central Government b) State Government
c) A group of consumers d) All of the above
10) A consumer has to be protected against......................
a) Defects of product b) Deficiencies of product
c) Unfair and restrictive trade practices d) All of the above
1. What do you meant by Redressal Mechanism?
 It is a management and governance related process used commonly in India.
 It covers the receipt and processing of complaints from citizens and consumers.
 It also includes the action taken on any issue raised by them to avail services
more effectively.

2. What do you know about National Commission?

 It is a quasi-judicial commission in India which was set up in the year 1988.
 Its head office is in New Delhi
 It is headed by a serving or retired judge of the supreme court of India
 It is also called as National commission. (more than 1 Crore)
3. State the Meaning of the Term State Commission
 A consumer has to be protected against defects, deficiencies and unfair and
restrictive trade practices.( More than 20 lakhs Less than 1 crore)
 The State Consumer Protection council is also called State Commission.
4. What is an Term District Forum?
 As per the Consumer Protection Act of 1986 the establishment of a District
Form by the State Government in each District is necessary today to protect the
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interest of aggrieved consumers in that district.
 (Exceeds the limit of Rs. 20 lakhs)
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1. Who are the Members of the National Commission?
 The National Commission should have five members.
 One should be from judiciary.
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 Four other members of ability, knowledge and experience from any other fields.
 It should include a woman.
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2. Who are the Members of the State Commission?
 A person who is or has been a Judge of a High Court appointed by the State
Government as its President.
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 Two other members who shall be persons of ability, integrity and standing and
have adequate knowledge or experience relating to Economics, Law, Commerce,
Industry, Public affairs or Administration.
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 One shall be a woman.

3. Write a Note on the Voluntary Consumer Organisation
 Consumer is a broad label for any individuals or households that use goods
and services produced within the economy.
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 Voluntary consumer organisations refer to the organisation formed voluntarily

by the consumers to protect their rights and interests.
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1. Explain the Overall Performance of National Commission
 National Commission
 It is a quasi-judicial commission in India which was set up in the year
1988.
 Its head office is in New Delhi.
 It is headed by a serving or retired judge of the supreme court of India
 It is also called as National commission.
 Members
 The National Commission should have five members.
 One should be from judiciary.
 Four other members of ability, knowledge and experience from any other
fields. It should include a woman.

 Jurisdiction
 To entertain a complaint valued more than 1 Crore.
 Revised the orders of State Commissions.
 To call for the records and pass appropriate orders from the State
Commission and District Forum.
 Powers
 Adoption of uniform procedure in the hearing of the matters is followed in
the National Commission.
 Prior service of copies of documents produced by one party to the opposite
parties.
 Appellate Forum
 Appeal against such order to Supreme Court of India within a period of 30
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days.
2. Explain the overall performance of State Commission
 State Commission
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 A consumer has to be protected against defects, deficiencies and unfair and
restrictive trade practices.
 The State Consumer Protection council is also called State Commission.
 Members
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 A person who is or has been a Judge of a High Court appointed by the State
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Government as its President.
 Two other members who shall be persons of ability, integrity and standing
and have adequate knowledge.
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 One shall be a woman.

 Jurisdiction
 Compensation – claims More than 20 lakhs Less than 1 crore.
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 To entertain Appeal from District forum.

 Powers
 The State Commission also has the power to call for the records and pass
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appropriate orders in any consumer dispute which is pending before or has

been decided by any District Forum within the State.
 To produce before and allow to be examined by an officer of any of these
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agencies, such books of accounts, documents or commodities as may be

required and to keep such books, documents, etc.
 To furnish such information that may be required for the purposes of the
Act to any officer so specified.
 Appellate Forum
 Any person aggrieved by an order of the State Commission may prefer an
appeal to the National Commission within 30 days from the date of such
order.

UNIT 7 BUSINESS ENVIRONMENT

CHAPTER 19 ENVIRONMENTAL FACTORS
1) VUCA stands for.............,..................,...................,...................
(a) Volatility, Uncertainty, Complexity and Ambiguity
(b) Value, Unavoidable, Company and Authority
(c) Volatility, Uncontrollable, Company and Auction (d) All of the above
2) GST stands for ...............,...............,................
(a) Goods and Social Tax (b) Goods and Service Tax
(c) Goods and Sales Tax (d) Goods and Salary Tax
3) Factors within an organisation constitutes................. Environment.
(a) Internal Thinker (b) External Thinker
(c) Fellow human beings (d) All of the above
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4) Macro Environment of business is an.............................factor.
(a) Uncontrollable (b) Controllable
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(c) Manageable (d) Immanageable
5) The two major types of business environment are................and....................
(a) Positive and Negative (b) Internal and External
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(c) Good and Bad (d) Allowable and Unallowable
6) .......................Environment includes weather and climatic conditions.
(a) Micro (b) Macro (c) Minimum (d) Maximum
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1. What Is Internal Environment?
 Internal environment refers to those factors within an organisation.
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 e.g Policies and programmes, organisational structure, employees, financial and

physical resources.
 These factors can be changed or altered and hence are known as controllable
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factors.
2. Give the Meaning of Corporate Governance
 Corporate governance is a set of rules and policies which governs a company.
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 It provides a frame work for managing a company and achieving its objectives.
3. What is GST?
 Goods and services tax [GST] is an indirect tax levied on goods and services
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across the country.

 Types of taxes: CGST, SGST, IGST.
4. Expand VUCA
1) V - Volatility
2) U - Uncertainty
3) C - Complexity
4) A – Ambiguity
1. What Are The Political Environment Factors? (Any 3)
 The framework for running a business is given by the political and legal
environment.
 The success of a business lies in its ability to adapt and sustain to political and
legal changes.

 The image of the leader and the country in the inter-national arena.
 Legal framework of business and their degree of flexibility.
 The constitution of the nation.
2. Write About Any Three Internal Environmental Factors Of Business
1) Values system
2) Vision and objectives
3) Management structure and nature
4) Internal power relations
5) Human resources
6) Company image
1. Values system
 The values of the founder/owner of the business, percolates down to the
entire organisation and has a profound effect on the organisation.
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2. Vision and objectives
 The vision and objectives of a business guides its operations and strategic
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decisions.
3. Management structure and nature
 The structure of management/board and their style of functioning, the level
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of professionalism of management, and the composition of the board are the
various factors which affects the decision making.
4. Company image
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 The image of an organisation plays an important role in introducing new
products, selecting agents and dealers for distribution.
5. Human resources
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 The success of an enterprise is solely dependent on the quality, skill

competency, right attitude and commitment of its human resources.
3. What Do You Know About Technological Environment?
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 The development in IT and telecommunications has created a global market.

 Technology is widely used in conducting market research for understanding the
special needs of the customer.
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 Digital and social media are used as a platform for advertising and promoting
the products/services.
 Data-mining and data analytics are used to know the customer better.
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1. Discuss The Role Of Macro Environment Of Business. (Any 5)
1) Economic Environment
2) Socio-Cultural Environment
3) Political and Legal Environment
4) Geo-physical Environment
5) Technological Environment
6) Global Environment
1. Economic Environment
 The business is an integral part of the economic system prevalent in a nation.
 The nature of economy based on the stage of development.
 The economic policies of a nation.
 Development of financial market.

2. Socio-Cultural Environment
 Business is a part of the society.
 Social environment refers to the sum total of factors of the society in which
the business is located.
 Social and cultural environment of society affects the business.
 The social institutions and groups
 Family structure prevalent in the society
3. Political and Legal Environment
 The framework for running a business is given by the political and legal
environment.
 The success of a business lies in its ability to adapt and sustain to political
and legal changes.
 The image of the leader and the country in the inter-national arena.
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 Legal framework of business and their degree of flexibility.
 The constitution of the nation.
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4. Geo-physical Environment
 The natural, geographical and ecological factors have a bearing on the
business.
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 Availability of natural harbours and port facilities for transporting goods.
5. Technological Environment
 The development in IT and telecommunications has created a global market.
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 Technology is widely used in conducting market research for understanding
the special needs of the customer.
 Digital and social media are used as a platform for advertising and
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promoting the products/services.

 Data-mining and data analytics are used to know the customer better.
 Rate of change in technology.
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 Technology adopted by competitors.

6. Global Environment
 With the rapid growth of technology the physical boundaries are fast
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disappearing and the new global market is emerging.

 Differences in language and culture
 Differences in currencies
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 Differences in norms and practices

 The tax structure relating to import and export.
2. Explain The Micro Environmental Factors Of Business. (Any 5)
1) Financiers
2) Suppliers
3) Marketing Channel members
4) Public
5) Customers
6) Competitors
1. Financiers
 The financiers of a business which includes the debenture holders and
financial institutions play a significant part in the running of a business.

2. Suppliers
 In any organisation the suppliers of raw materials and other inputs play
a very vital role.
 Organisations generally obtain supplies from a panel of suppliers instead
of relying on a single source.
3. Marketing Channel members
 The marketing Inter-Mediaries serve as a connecting link between the
business and its customers.
 The middlemen like dealers, wholesalers and retailers ensure transfer of
product to customers.
4. Public
 This refers to any group like media group, citizen action group and local
public which has an impact on the business.
et
 The public group has the ability to make or mar a business. Many
companies had to face closure due to actions by local public.
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5. Customers
 The aim of any business is to satisfy the needs of its customers. The
customer is the king.
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6. Competitors
 All organisations face competition at all levels local, national and global.
Competitors may be for the same product or for similar products.
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da
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w.
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CHAPTER 20 LIBERALIZATION, PRIVATIZATION AND GLOBALIZATION

1) ...................is the result of New Industrial Policy which abolished the
‘License System’.
(a) Globalisation (b) Privatisation (c) Liberalisation (d) None of these
2) ...................means permitting the private sector to setup industries which
were previously reserved for public sector.
(a) Liberalisation (b) Privatisation (c) Globalisation (d) Public Enterprise
3) ...................Ownership makes bold management decisions due to their strong
foundation in the international level.
(a) Private (b) Public (c) Corporate (d) MNC’s
4) ....................results from the removal of barriers between national economies
to encourage the flow of goods, services, capital and labour.
et
(a) Privatisation (b) Liberalisation (c) Globalisation (d) Foreign Trade
5) New Economic Policy was introduced in the year...................
i.N
(a) 1980 (b) 1991 (c) 2013 (d) 2015
1. State the Branches of New Economic Policy
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1. Liberalization
2. Privatization
3. Globalization
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2. What is Privatisation?
 Privatization is the incidence or process of transferring ownership of business
enterprise, agency or public service from the government to the private sector.
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(Or)
 Privatisation means permitting the private sector to set up industries which were
previously reserved for the public sector.
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3. Mention Any Two Disadvantages of Liberalisation.

1) Increase in unemployment
2) Loss to domestic units
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3) Increased dependence on foreign nations

4) Unbalanced development
4. Give Any Two Advantages of Globalisation
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1) Increase in foreign collaboration

2) Expansion of market
3) Technological development
4) Reduction in brain drain
1. What Do You Mean by Liberalisation?
 Liberalisation means the laws and rules liberalized or relaxed by the
Government
 It means relaxation of various Government restrictions in the areas of social
and economic policies in order to make the economics free to enter the market
and establish their venture [Business] in the country.

2. State Any Three Impacts on Globalisation

 Corporations got a competitive advantage from lower operating costs and
access to new raw materials and additional markets.
 MNCs can manufacture, buy and sell goods worldwide.
 Globalisation has led to a boom in the consumer products market.
 The advent of foreign companies and growth in economy has led to job creation.
3. Write a Short Note on New Economic Policy
 India agreed to the conditions of World Bank and IMF and announced New
Economic Policy (NEP) which consists of wide range of economic reforms.
 This new set of economic reforms is commonly known as the LPG
 Liberalisation
 Privatisation
et
 Globalisation
1. Explain the Advantages and Disadvantages of Liberalisation. (Any 5)
i.N
1) Advantages of Liberalisation
1. Increase in foreign investment
2. Increase the foreign exchange reserve
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3. Increase in consumption
4. Control over price
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5. Reduction in external borrowings
2) Disadvantages of Liberalisation
1. Increase in unemployment
da
2. Loss to domestic units

3. Increased dependence on foreign nations
4. Unbalanced development
Pa
Advantages of Liberalisation
1. Increase in foreign investment
 If a country liberalises its trade, it will make the country more attractive
for inward investment.
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2. Increase the foreign exchange reserve

 Relaxation in the regulations covering foreign investment and foreign
exchange has paved way for easy access to foreign capital.
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3. Increase in consumption
 Liberalization increases the number of goods available for consumption
within a country due to increase in production.
Disadvantages of Liberalisation
1. Increase in unemployment
 Trade liberalisation often leads to a shift in the balance of an economy.
 Some industries grow, some decline.
2. Loss to domestic units
 With fewer entry restrictions, it has been possible for many entrants to
make inroads into the country, which poses a threat and competition to
the existing domestic units.

3. Increased dependence on foreign nations

 Trade liberalisation means firms will face greater competition from
abroad.
4. Unbalanced development
 Trade liberalisation may be damaging for developing economies which
cannot compete against free trade.
 The trade liberalisation often benefits developed countries rather than
developing economies.
2. What are the Highlights of the LPG policy? (Any 5)
1) Introduction of new Foreign Trade Agreements
2) Foreign Investment (FDI & FII)
3) MRTP Act, 1969 (Amended)
et
4) Deregulation
5) Opportunities for overseas trade
6) Steps to regulate inflation
i.N
7) Tax reforms
8) Abolition of License
3. Explain the Impact of LPG on Indian Economy
la
1. Impact of Liberalization
 New market for various goods came into existence and resulted not only in
urban but also in rural development.
sa
 It became very easy to obtain loans from banks for business expansion.
 "Foreign Collaboration" is the latest outcome of liberalization.
 A number of multinational companies started operating world-wide including
da
India.
 Liberalization has opened up new business opportunities abroad and increased
foreign direct investment.
Pa
2. Impact of Privatization
 Privatization has a positive impact on the financial growth by decreasing the
deficits and debts.
 Increase in the efficiency of government undertakings.
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 Provide better goods and services to the consumers.

 Making way for Foreign Direct Investment (FDI).
3. Impact of Globalization
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 Corporations got a competitive advantage from lower operating costs and

access to new raw materials and additional markets.
 MNCs can manufacture, buy and sell goods worldwide.
 Globalisation has led to a boom in the consumer products market.
 The advent of foreign companies and growth in economy has led to job creation.

UNIT 8 THE SALE OF GOODS ACT 1930 AND THE NEGOTIABLE INSTRUMENTS
ACT 1881
CHAPTER 21 THE SALE OF GOODS ACT 1930
1) Sale of Goods Act was passed in the year................
a)1940 b)1997 c)1930 d)1960
2) Which of the below constitutes the essential element of contract of sale?
a) Two Parties b) Transfer of Property c) Price d) All of the above
3) Which of the below is not a good?
a) Stocks b) Dividend Due c) Crops d) Water
4) In case of the sale, the.......................... has the right to sell.
a) Buyer b) Seller c) Hirer d) Consignee
5) The property in the goods means the.....................
et
a) Possession of Goods b) Custody of Goods
c) Ownership of Goods d) Both (a) and (b)
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6) Specific goods denote goods identified upon the time of ...................of sale.
a) Agreement b) Contract c) Order d) Obligation
7) In which of the following types, the ownership is immediately transferred to
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buyer?
a) When Goods are Ascertained b) When Goods are Appropriate
c) Delivery to the Carrier d) Sale or Return Basis
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8) .....................is a stipulation which is collateral to main purpose of contract:
a) Warranty b) Condition c) Right d) Agreement
9) Unpaid seller can exercise his right of lien over the goods, where he is in
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possession of the goods as..................

a) Owner of Goods b) Agent of Buyer
c) Bailee for Buyer d) All of these
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10) The unpaid seller can exercise his right of stoppage of goods in transit where
the buyer..................
a) Becomes Insolvent b) Refuses to Pay Price
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c) Payment of Price d) Both (b) and (c)

1. What is a Contract of Sale of Goods?
ww
 Contract of sale of goods is a contract whereby the seller transfers or agrees to

transfer the property (ownership) of the goods to the buyer for a price.
2. List Down the Essential Elements of A Contract of Sale
1) Two Parties
2) Transfer of Property
3) Goods
4) Price
5) Includes both ‘Sale’ and ‘Agreement to Sell’
3. What is Meant by Goods?
 The term ‘goods’ includes every kind of movable property, stocks and shares,
growing crops etc.
 Goodwill, trademarks, copy rights, patent rights etc., are all also regarded as
goods.

4. What is a Contingent Goods?

 Contingent goods are the goods, the acquisition of which by the seller depends
upon a contingency (an event which may or may not happen).
 Contingent goods are a part of future goods.
1. Discuss in Detail About Existing Goods
 Existing goods are those owned or possessed by the seller at the time of
contract of sale.
 Goods possessed even refer to sale by agents or by pledges.
 Existing goods may be either
o Specific Goods
o Ascertained Goods
o Generic or Unascertained Goods
et
2. Discuss the Implied Conditions and Warranties in Sale of Goods Contract
 Following are the implied conditions
i.N
o Conditions as to Title
o Conditions as to Description
o Sale by Sample
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o Conditions as to Quality or Fitness
o Conditions as to Merchantability
o Condition as to Wholesomeness
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o Condition Implied by Trade Usage
 Following are the implied warranties
 Quiet Possession
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 Free from Any Encumbrances

 Warranty in the case of Dangerous Goods
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1. Explain in Detail the Elements of Contract of Sale

1) Two Parties
2) Transfer of Property
w.
3) Goods
4) Price
5) Includes both ‘Sale’ and ‘Agreement to Sell’
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1. Two Parties
 A contract of sale involves two parties – the seller and the buyer.
 The buyer and the seller should be two different persons.
2. Transfer of Property
 To constitute a sale, the seller must transfer or agree to transfer the
ownership of the goods to the buyer.
 A simple transfer of possession does not amount to sale.
3. Goods
 The subject matter of the contract of sale must be goods. It excludes
money, actionable claims, and immovable property.
 The term ‘goods’ includes every kind of movable property, stocks and
shares, growing crops etc.

 Goodwill, trademarks, copy rights, patent rights etc., are all also regarded
as goods.
4. Price
 The monetary consideration for the goods sold is called price.
 If goods are exchanged for goods, it is only barter and not a sale.
5. Includes both ‘Sale’ and ‘Agreement to Sell’
 If the property in goods is transferred immediately to the buyer it is called
a sale.
 If the transfer of property takes place at a future date or on fulfilment of
certain conditions, it is called ‘an agreement to sell’.
2. Distinguish between Conditions and Warranty.
et
Basic of
Difference Condition Warranty
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Meaning It is a stipulation which is It is a stipulation which is
essential to the main purpose collateral to the main purpose
Of the contract of sale. of contract.
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Significance Condition is so essential to It is of subsidiary or inferior
the contract that the breaking Character. The violation of
of which cancels out the warranty will not revoke the
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Contract. Contract.
Transfer of Ownership on goods cannot Ownership on goods can be
Ownership be transferred without transferred on the buyer without
da
Fulfilling the conditions. Fulfilling the warranty.

Remedy In case of breach of contract, In the case of breach of
the affected party can cancel warranty,
Pa
the contract and claim the affected party cannot cancel

Damages. the contract but can claim
Damages only.
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Treatment Breach of condition may be Breach of warranty cannot be

treated as breach of warranty treated as breach of condition.
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CHAPTER 22 THE NEGOTIABLE INSTRUMENTS ACT 1881

1) Negotiable Instrument Act was passed in the year...........................
a. 1981 b. 1881 c. 1994 d. 1818
2) Negotiable Instrument is freely transferable by delivery if it is a.......instrument.
a. Order b. Bearer c. Both a & b d. None of the above
3) The transferee of a Negotiable Instrument is the one.................................
a. Who Transfer the Instrument b. On Whose Name it is Transferred
c. Who Enchases it d. None of the above
4) Number of parties in a bill of exchange is.......................
a. 2 b. 6 c. 3 d. 4
5) Section 6 of Negotiable Instruments Act 1881 deals with................
a. Promissory Note b. Bills of Exchange c. Cheque d. None of the above
et
6) .........................cannot be a bearer instrument.
a. Cheque b. Promissory Note
i.N
c. Bills of exchange d. None of the above
7) When crossing restrict further negotiation..................
a. Not negotiable crossing b. General Crossing
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c. A/c payee crossing d. Special crossing
8) Which endorsement relieves the endorser from incurring liability in the event of
dishonour......................
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a. Restrictive b. Faculative c. Sans recourse d. Conditional
9) A cheque will become stale after..........................months of its date:
a. 3 b. 4 c. 5 d. 1
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10) Document of title to the goods exclude....................

a. Lorry receipt b. Railway receipt c. Airway bill d. Invoice
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1. What is meant by Negotiable Instrument?

o Thus, a negotiable instrument is a document which entitles a person to a
certain sum of money and which is transferable from one person to another by
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mere delivery or by endorsement and delivery.

2. List Three Characteristics of a Promissory Note
o A promissory note must be in writing.
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o The promise to pay must be unconditional.

o It must be signed by the maker.
o A bank note or a currency note is not a promissory note.
o A promissory note must be sufficiently stamped.
3. What is a meant by Cheque?
o “A bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand”.
1. Distinguish between Negotiability and Assignability. (Any 3)
Basic of
Difference Negotiability Assignability
Transfer Not required Must be served by assignee on his
notice debtor

Title Transferee gets the right of Assignee’s title is subject to the

holder in due course. title of Assignor
Consideration It is presumed It is proved
2. What are the Characteristics of a Bill Of Exchange? (Any 3)
1) A bill of exchange is a document in writing.
2) The document must contain an order to pay.
3) The order must be unconditional.
4) The instrument must be signed by the person who draws it.
5) The name of the person on whom the bill is drawn must be specified in the bill
itself.
3. Draw the two different types of crossing
(i) General Cheque Crossing
et
o The cheque or the payee will receive the payment only through a bank
account and not over the counter.
i.N
la
sa
(ii) Special Cheque Crossing
o However in special crossing two parallel transverse lines are not essential
but the name of the banker is most important.
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Pa
w.
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1. Distinguish a Cheque and a Bill Of Exchange. (Any 5)
Basic of Cheque Promissory Note
Difference
Nature of A cheque contains an order to A promissory note contains an
order pay money Undertaking to pay money.
Creator of Te drawer of a cheque is a Te maker of a note is a debtor
the Creditor
instrument
Crossing A cheque can be crossed A pronote cannot be crossed
Stamping A cheque need not be stamped A promissory note has to be
sufficiently stamped

No. of There are three parties in a In a promissory note there are only
Parties cheque – drawer, drawee and two parties – the maker and the
payee payee.
Grace No days of grace are allowed Tree days of grace are allowed
Period for payment of a cheque for calculating the due date of
promissory note
2. Discuss in Detail the Features of A Cheque. (Any 5)
1) Instrument in Writings
2) Unconditional Orders
3) Drawn on a Specified Banker Only
4) A Certain Sum of Money Only
5) Payee to be Certain
et
6) Signed by the Drawer
7) Payable Always on Demand
1. Instrument in Writings
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o A cheque or a bill or a promissory note must be an instrument in writing.
o Though the law does not prohibit a cheque being written in pencil, bankers
never accept it because of risks involved.
2. Unconditional Orders
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o The instrument must contain an order to pay money.
o It is not necessary that the word ‘order’ or its equivalent must be used to make
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the document a cheque.
3. Drawn on a Specified Banker Only
o The cheque is always drawn on a specified banker.
da
o A cheque vitally differs from a bill in this respect as latter can be drawn on any
person including a banker.
4. A Certain Sum of Money Only
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o The order must be for payment of only money.

o If the banker is asked to deliver securities, the document cannot be called a
cheque.
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5. Payee to be Certain
o The cheque must be made payable to a certain person or to the order of a
certain person or to the bearer of the instrument.
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3. What are the requisites for a valid endorsement? (Any 5)

1) Signing in block letters does not constitute regular endorsement.
2) Endorsement must be in link.
3) The endorsement is to be made on the face of the instrument or on its back.
4) When there is no space for making further endorsements a piece of paper can
be attached
5) Endorsement for only a part of the amount of the instrument is invalid.
6) The endorsement is complete only when delivery of the instrument is made.

UNIT 9 ENTREPRENEURSHIP DEVELOPMENT

CHAPTER 23 ELEMENTS OF ENTREPRENEURSHIP
1) Which of the below is a factor of production?
(a) Land (b) Labour (c) Entrepreneurship (d) All of the above
2) Entrepreneur is not classified as........................
(a) Risk Bearer (b) Innovator (c) Employee (d) Organizer
3) What are the characteristics of an entrepreneur?
(a) Spirit of enterprise (b) Flexibility (c) Self Confidence (d) All of the above
4) Which of the below is not classified into managerial functions?
(a) Planning (b) Marketing (c) Organizing (d) Controlling
5) Which of the below is a commercial function?
(a) Accounting (b) Coordination (c) Discovery of idea (d) Planning
et
1. Mention Any Two Characteristics of Entrepreneurs
i.N
1) Spirit of Enterprise
2) Self Confidence
3) Flexibility
la
4) Innovation
1. Spirit of Enterprise
 Entrepreneur should be bold enough to encounter risk arising from the
sa
venture undertaken.
2. Self Confidence
 Entrepreneur should have a self confidence in order to achieve high goals in
da
the business.
2. List Down The Managerial Functions Of Entrepreneurs. (Any 2)
1) Planning
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2) Directing
3) Organising
4) Controlling
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5) Co-ordination
3. List Down The Promotional Functions Of Entrepreneurs. (Any 2)
1) Discovery of Idea
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2) Determining the business objectives

3) Detailed Investigation
4) Choice of form of enterprise
5) Fulfilment of the formalities
6) Preparation of Business Plan
7) Mobilisation of funds
4. List the Challenges Faced By The Women Entrepreneurs. (Any 3)
1. Problem of Finance 2. Limited Mobility

3. Lack of Education 4. Lack of Network Support
5. Stiff Competition 6. Sensitivity
7. Lack of Information 8. Dependent culture


1. Distinguish Between Entrepreneur and Manager. (Any 3)
Basis Of
Difference Entrepreneur Manager
Motive It is to start a venture by setting of The very motive of manager is
an entity. to render service in an entity.
Status Entrepreneur is owner of the Manager is a salaried employee
entity. in the entity set up for carrying
on the venture.
Risk Entrepreneur bears the eventual Manager doesn’t bear any risk
Bearing risk and uncertainty in operating in the venture where the
the enterprise. venture.
et
2. List Down The Commercial Functions Of Entrepreneur And Explain Them
Shortly. (Any 3)
i.N
1) Manufacturing or production
2) Accounting
3) Marketing
4) Financing
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5) Human Resource Management
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1. Production or Manufacturing
 Under production function, entrepreneur has to take decision relating to
selection of factory site, design and layout, type of products to be
da
manufactured, research and development, product design etc.,

2. Finance
 In the sphere of financial function, an entrepreneur has to take decisions like
choosing the right type of financing, framing the best dividend policy,
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acquiring of funds etc.,

3. Human Resource Management
 Entrepreneur has to estimate the manpower needs of the enterprise and
w.
accordingly decide the size of manpower required for various slots of

organisational structure.
3. Explain the promotional functions of entrepreneur. (Any 3)
ww
1) Discovery of Idea
2) Determining the business objectives
3) Detailed Investigation
4) Choice of form of enterprise
5) Fulfilment of the formalities
1. Discovery of Idea
 The first and foremost function of entrepreneur is idea generation.
 Ideas can be generated through several ways like own experience and,
education, training.
2. Detailed Investigation
 Entrepreneur has to analyse in detail the product proposes to produce.

3. Choice of form of enterprise

 Entrepreneur has to choose the appropriate form of organisation suited to
implement the venture.
1. What are the Characteristics of an Entrepreneur? (Any 5)
1) Spirit of Enterprise
2) Self Confidence
3) Flexibility
4) Innovation
5) Hard work
6) Leadership
7) Foresight
et
8) Analytical Ability
9) Decision Making
1. Spirit of Enterprise
i.N
 Entrepreneur should be bold enough to encounter risk arising from the
venture undertaken.
 He should not be discouraged by setbacks or frustrations emerging during
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the course of entrepreneurial journey.
2. Self Confidence
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 Entrepreneur should have a self confidence in order to achieve high goal in
the business.
3. Analytical Ability
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 Entrepreneur should be-able to objectively analyse the situation and act

accordingly.
4. Innovation
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 He should contributing something new or something unique to meet the

changing requirements of – customers [New product – New method of
production etc.]
5. Flexibility
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 He should not be rigid and flexible in decisions.

 He should change the decisions made already in the light of ever- changing
ww
business environment.
6. Foresight
 Entrepreneur should have a foresight to visualize future business
environment
2. Distinguish between an Entrepreneur and an Intrapreneur. (Any 5)
Basis Entrepreneur Intrapreneur
Thinking He is a free thinker He is forced to think
independently
Dependency He is an independent He is an employee
Person
Reward He is rewarded by profit He gets perquisites, salary,
for the risk bearing exercise incentives
etc., for the service

Operation He operates mostly He operates within the enterprise

outside the enterprise
Fund He mobilize He does not engage in fund
Mobilization funds to finance the venture Mobilization.
3. Discuss the Challenges Faced by Women Entrepreneurs. (Any 5)
1) Problem of Finance
2) Limited Mobility
3) Lack of Education
4) Lack of Network Support
5) Stiff Competition
6) Sensitivity
7) Lack of Information
et
8) Dependent culture
1. Problem of Finance
 The access of women to external sources of funds is limited as they do not
i.N
generally own properties in their own name.
 Financial institutions too do not consider women in General credit worthy as
they are doubtful of their entrepreneurial capabilities of women.
2. Lack Education
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 Illiterate and Semi-literate women entrepreneurs encounter a lot of
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challenges in their entrepreneurial journey
3. Lack Network Support
 The successful operations of any venture irrespective of size depend
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upon the network of support extended by various constituencies like family

members, relatives, friends, neighbours and so on.
4. Stiff Competition
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 They have to face acute competition for their goods from organised sector
and from their male counterparts.
5. Lack Information
 They are reported not be generally aware of subsidies and incentives
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available for them due to their poor literacy levels

 The Domestic responsibilities do not allow women entrepreneurs to freely
move out of business enterprise in connection with business activities.
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6. Limited Mobility
 Indian women cannot afford to shed their household responsibilities towards
their family even after they plunge into the venture started by them.
 This restricts the mobility of women entrepreneur significantly.

CHAPTER 24 TYPES OF ENTREPRENEURS

1) Choose the type of entrepreneur that isn’t based on function:
a. Innovative b. Classical c. Fabian d. Drone
2) Choose the type of Entrepreneur that is not based on Motivation:
a. Pure b. Corporate c. Spontaneous d. Induced
3) Which of the following is the Activity of a Business Entrepreneur?
a. Production b. Marketing c. Operation d. All of the above
4) Find the odd one out in context of Trading Entrepreneur...........
a. Selling b. Commission c. Buying d. Manufacturing
5) Corporate Entrepreneur is also called as................
a. Intrapreneur b. Promoter c. Manager d. Shareholder
6) Poultry, Flowers, Fruits etc are called allied Products of...........entrepreneur.
et
a. Corporate b. Retail c. Trading d. Agricultural
7) ........................Entrepreneur Supply Services Unlike.
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a. Hoteliers b. Banking c. Airlines d. Livestock
8) Motive of a Pure Entrepreneur is...............
a. Rendering Service b. Earning Profit c. Attaining Status d. Both b & c
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9) Which of these is based on Technology?
a. Modern b. Professional c. Corporate d. Industrial
10) Which of the below is not a Characteristic of a Fabian Entrepreneur?
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a. Conservative b. Risk Averse c. Sceptical d. Adaptive
1. What Is The Other Name Of Business Entrepreneur?
da
 Business entrepreneur is called solo entrepreneur.

 He/she is the one who conceives an idea for a new product/service and
establishes a business enterprise to translate his idea into reality.
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2. Mention the Other Name For Corporate Entrepreneur

 Corporate entrepreneur is called promoter.
 He/she takes initiative necessary to start an entity under corporate format.
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 He/she arranges to fulfil the formalities to start a corporate entity under

Company law.
3. Who are Agricultural Entrepreneur?
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 Agricultural entrepreneurs are those entrepreneurs who raise farm products

and market them.
 Those who raise allied products like poultry, meat, fish, honey, skin,
agricultural implements, flower, silk, fruits, prawn etc.,
4. Give Some Examples of Pure Entrepreneurs
o Dhirubai Ambani
o Jamshadji Tata
o T.V. Sundaram Iyengar
o Seshadriji
o Birla
o Narayanamurthi
o Aziz Premji


1. Who is a Private Entrepreneur?
 Venture started by individual either alone or collectively at their own risk after
mobilising various resources in order to earn profit are called “Private
Entrepreneur”
2. Explain About the Imitative Entrepreneur
 Imitative entrepreneur is one who simply imitative existing skill, knowledge or
technology already in place in advanced countries.
 A simply re-engineer or redesign the products developed in advanced countries
and produce a version to their local conditions.
 For Example, Many electronic products invented in advanced arteries are
simply re-engineered in developing countries.
et
3. Write About Fabian Entrepreneur
 These entrepreneurs are said to be conservatives and sceptical about
plasticising any change in their organisation.
i.N
 They are of a risk-averse type.
 They do not simply change to the changes happening in the environment.
 But they adapt themselves to the changes only as a last resort when they fear
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that non-adaptability to changes will inevitably lead to loss or collapse of the
enterprise.
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1. Explain In Detail On Classification According To The Type Of Business. (Any 5)
1) Business Entrepreneur
da
2) Trading Entrepreneur
3) Industrial Entrepreneur
4) Corporate Entrepreneur
Pa
5) Agricultural Entrepreneur
6) Retail Entrepreneurs
7) Service Entrepreneurs
1. Business Entrepreneur
w.
 Business entrepreneur is called solo entrepreneur.

 He/she is the one who conceives an idea for a new product/service and
establishes a business enterprise to translate his idea into reality.
ww
 He/she takes up production, operations and pursues marketing activities

2. Trading Entrepreneur
 Trading entrepreneurs are those who restrict themselves to buying and
selling finished goods.
 They may be engaged in domestic and international trade.
 Their core strength lies in distribution and marketing.
3. Industrial Entrepreneur
 These are entrepreneurs who manufacture products to cater to the needs of
consuming public after identifying the need left unfulfilled by the
manufacturer hitherto.
4. Corporate Entrepreneur
 He is called a promoter.
 He takes initiative necessary to start an entity under a corporate format.

 He/she arranges to fulfil the formalities to start a corporate entity under

Company law.
5. Agricultural Entrepreneur
 Agricultural entrepreneurs are those entrepreneurs who raise farm products
and market them.
 Those who raise allied products like poultry, meat, fish, honey, skin,
agricultural implements, flower, silk, fruits, prawn etc.,
6. Service Entrepreneurs
 Service entrepreneurs enter into the venture of supplying service products to
end consumers.
 Hoteliers, airlines, banking, insurance and financial service providers, repair
service organisation, bus operators, train service, advisory organisation,
et
advertising firms, manpower supplier etc.,
2. Discuss the Nature of Functional Entrepreneurs
1) Innovating Entrepreneur
i.N
2) Imitative Entrepreneur
3) Fabian Entrepreneur
4) Drone Entrepreneur
la
1. Innovating Entrepreneur
 An innovative Entrepreneur is one who is always focused on introducing a
sa
new project or introducing something new in the venture already started.
 Their innovation may take the form of Brand New product, upgraded product,
discovering untapped market, new method of production, new method of
da
distribution of product, simplification of complex process and so on.

2. Imitative Entrepreneur
 An imitative Entrepreneur is one who simply imitates existing, skill,
Pa
knowledge or Technology already in place in advanced countries.

 Example: many electronic products invented in advanced countries is simply
reengineered in developing countries.
3. Fabian Entrepreneur
w.
 These entrepreneurs are said to be conservatives and sceptical about

plasticising any change in their organisation.They are of a risk-averse type.
 They do not simply change to the changes happening in the environment.
ww
 Example: Nursus coffee

4. Drone Entrepreneur
 Drone Entrepreneurs are those who are totally opposed to changes unfolding
in the environment.They used to operate in the “Niche Market”.
 The only difference between Fabian and Drone is Fabian adapts to changes
eventually as a last resort.Drone never adapts himself to change.
 Example: Gopal Tooth powder

CHAPTER 25 GOVERNMENT SCHEMES FOR ENTREPRENEURIAL DEVELOPMENT

1) The..................initiative was launched to modernize the Indian economy to
make all governments services available electronically.
a) Standup India b) Startup India c) Digital India d) Make in India
2) ........................is designed to transform India to a global design and
manufacturing hub.
a) Digital India b) Make in India c) Startup India d) Design India
3) .......................is the Government of India’s endeavour to promote culture of
innovation and entrepreneurship.
a) AIM b) STEP c) SEED d) AIC
4) .....................should cover aspects like sources of finance, technical know-
how, source of labour and raw material, market potential and profitability.
et
a) Technical Report b) Finance Report
c) Project Report d) Progress Report
i.N
5) ..............has to include the mechanism for managing venture in the project
report.
a) Banker b) Government c) Lending Institutions d) Entrepreneur
la
1. Name any Two Governmental Entrepreneurial schemes
1) Startup India
sa
2) Make in India
3) Atal Innovation Mission (AIM)
4) Support to Training and Employment Programme for Women (STEP)
da
5) Jan Dhan-Aadhaar - Mobile (JAM)

6) Digital India
7) Stand-Up India
Pa
2. Give a note on ‘Digital India’

 The Digital India initiative has been launched to modernize the Indian economy
to make all government services available electronically.
w.
3. List down the Two Types of Finance For Entrepreneur

 Long term finance
 Short term finance
ww
 Micro, small and medium enterprises (MSMEs)

 New Entrepreneur-Cum-Enterprise Development Scheme (NEEDS)
 Self-Help Group (SHG)
1. What is ‘Startup India’?
 Through the Startup India initiative, Government of India promotes
entrepreneurship by mentoring, nurturing and facilitating startups
throughout their life cycle.
 Since its launch in January 2016.
 ‘Fund of Funds’

2. Expand the Following:

1) STEP : Support to Training and Employment Programme for Women
2) JAM : Jan Dhan - Aadhaar - Mobile
3) SEED : Science for Equity Empowerment and Development
1. Explain any five Government Entrepreneurial schemes
1) Startup India
2) Make in India
3) Atal Innovation Mission (AIM)
4) Support to Training and Employment Programme for Women (STEP)
5) Jan Dhan-Aadhaar - Mobile (JAM)
6) Digital India
7) Stand-Up India
et
1. Startup India
 Through the Startup India initiative, Government of India promotes
i.N
entrepreneurship by mentoring, nurturing and facilitating startups throughout
their life cycle.
 Since its launch in January 2016, the initiative has successfully given a head
la
start to numerous Aspiring entrepreneurs.
 A ‘Fund of Funds’ has been created to help startups gain access to funding.
sa
2. Digital India
 The Digital India initiative has been launched to modernize the Indian economy
to make all government services available electronically.
da
 The initiative aims at transforming India into a digitally-empowered society

and knowledge economy with universal access to goods and services.
3. Make in India
 The Make in India initiative was launched in September 2014.
Pa
 This has in turn helped procure investments, foster innovation, develop skills,
protect intellectual property and build best-in-class manufacturing
infrastructure.
w.
4. Stand-Up India
 It was launched in 2015, Stand-Up India seeks to leverage institutional credit
for the benefit of India’s underprivileged.
ww
 It aims at enabling economic participation of, women entrepreneurs, Scheduled

Castes and Scheduled Tribes and share the benefit of Indian growth with the
above mentioned categories.
5. Atal Innovation Mission (AIM)
 AIM is the Government of India’s endeavour to promote a culture of innovation
and entrepreneurship, and it serves as a platform for promotion of world-class
Innovation Hubs, Grand Challenges, start-up businesses and other self-
employment activities, particularly in technology driven areas.
6. Support to Training and Employment Programme for Women (STEP)
 STEP was launched by the Government of India’s Ministry of Women and Child
Development to train women who have access to formal skill training facilities,
especially in rural India.

2. Describe the Steps Promoting Entrepreneurial Venture

1) Selection of the product
2) Selection of form of ownership
3) Selection of Site
4) Designing Capital Structure
5) Acquisition of Manufacturing know-how
6) Preparation of project report
1. Selection of the product
 An entrepreneur may select a product according to his capacity and motivation
after a thorough scrutiny of the micro and macro environment of business.
2. Selection of form of ownership
 The entrepreneur has to choose the form of organization suitable and
et
appropriate for his venture namely family ownership, partnership, and private
company.
3. Selection of site
i.N
 The entrepreneur has to choose a suitable plot for starting his venture. The plot
may be an industrial site, land by the private people, or a housing board plot
allotted.
la
4. Designing capital structure
 The entrepreneurs have to determine the source of finance for funding the
sa
venture. It may be own savings, a loan from friends, relatives, or a loan from
banks.
5. Acquisition of manufacturing know-how
da
 Entrepreneur can acquire manufacturing know-how from government research

laboratories and industrial consultants.
6. Preparation of project report
 Project reports need to be prepared according to the format prescribed in the
Pa
loan application forms.

w.
ww

UNIT 10 COMPANY LAW AND SECRETARIAL PRACTICE

CHAPTER 26 COMPANIES ACT 2013
1) The Company will have to issue the notice of situation of Registered Office to
the Registrar of Companies within........................days from the date of
incorporation.
(a) 14 days (b) 21 days (c) 30 Days (d) 60 Days
2) How does a person who envisages the idea to form a company called?
(a) Director (b) Company Secretary (c) Registrar (d) Promoter
3) For which type of capital a company pays the prescribed fees at the time of
registration?
(a) Subscribed Capital (b) Authorised Capital
(c) Paid-up Capital (d) Issued Capital
et
4) Which of the following types of shares are issued by a company to raise capital
from the existing shareholders?
i.N
(a) Equity Shares (b) Rights Shares
(c) Preference Shares (d) Bonus Shares
5) Specify the type of resolution to be passed to choose the location of
la
Registered Office of the company within the town or village or city.
(a) Ordinary (b) Special (c) Either Ordinary or Special (d) Board
6) Who can issue stock?
sa
(a) Public (b) Private (c) One Person (d) Small
7) Specify the document which comes under the Negotiable Instrument Act.
(a) Share Certificate (b) Share (c) Share Warrant (d) Stock
da
8) The shares which are offered to the existing shareholder at free of cost is
known as...........................
(a) Bonus Share (b) Equity Share (c) Right Share (d) Preference Share
Pa
9) The shares which are offered first to the existing shareholder at reduced price
is known as............................
(a) Bonus Share (b) Equity Share (c) Right Share (d) Preference Share
w.
10) The Companies Act 2013 Prohibits the issue of shares at.............to the public.
(a) Premium (b) Par (c) Discount (d) Both at par and Premium
ww
1. What are the Four Stages of Formation of a Company?

1) Promotion
2) Registration
3) Capital subscription
4) Commencement of business
2. What is Bonus Shares?
 Bonus share means to utilize the company’s reserves and surpluses.
 Issue of shares to existing shareholders without taking any consideration is
known as Bonus Shares.
3. What is Right Shares?
 Right shares are the shares which are issued by the company, with the aim of
increasing the subscribed share capital of the company by further issue, if it is
authorized by its Articles.

 The right shares are primarily issued to the existing equity shareholders
through a letter of an issue, on pro rata basis.
4. What is Debentures?
 When a company needs funds for extension and development purpose without
increasing its share capital, it can borrow from the general public by issuing
certificates for a fixed period of time and at a fixed rate Interest.
 This loan certificate is known as debenture.
1. What do you Understand by Issue of Securities at Premium?
1) When Shares are issued at a price above the face or Nominal value, they are
said to be issued at a “premium”.
2) For example, a share having the face value ₹10 Issued at ₹12 here ₹2 is the
premium.
et
3) The amount a share premium has be transferred to an account called the
‘securities Premium Account’.
2. Explain Different Kinds of Preference shares. (Any 3)
i.N
1) Cumulative Preference Shares
2) Redeemable Preference Shares
3) Convertible Preference Shares
la
4) Participating Preference Shares
1. Cumulative Preference Shares
sa
 As the word indicates all dividends [Arrears] are carried forward until
specified and paid out only at the end of the specified period.
2. Convertible Preference Shares
da
 Preference shares can be converted into Equity shares after a time of

period or as per the conditions laid down in the terms.
3. Participating Preference Shares
 Such shares have the right to participate in any additional profits, after
Pa
paying to the equity shareholders.

1. Write the Differences Between Shares and Debentures. (Any 5)
w.
S. No Debentures Shares
1. Debentures constitute a loan. Shares are part of the capital of a
ww
company.
2. Middle and Lower Level Top level
3. Debenture holder gets fixed rate of Shareholders gets dividends with a
Interest which carries a priorities over varying rate.
dividend.
4. Debentures generally have a charge on Shares do not carry any such
the assets of the company. charge.
5. Debentures can be issued at a discount Share cannot be issued at a
without restrictions. discount.
6. Debenture holders do not have any Shareholders enjoy voting right.
voting right.

2. What are the Various Kinds of Debentures? (Any 5)

1. On the basis of convertibility, Debentures may be classified into following
categories
 Non Convertible Debentures
 Partly Convertible Debentures
 Fully convertible Debentures
 Optionally Convertible Debentures
2. On the basis of Security, debentures are classified into
 Secured Debentures
 Unsecured Debentures
3. On the basis of Redeemability, debentures are classified into
 Redeemable Debentures
 Perpetual or Irredeemable Debentures
et
4. On the basis of Registration, debentures may be classified as
 A Registered Debentures
i.N
 Bearer debentures
1. Non Convertible Debentures
 These instruments retain the debt character and cannot be converted into
la
equity shares.
2. Partly Convertible Debentures
 A part of these instruments are converted into Equity shares in the future at
sa
notice of the issuer.
3. Fully convertible Debentures
 These are fully convertible into Equity shares at the issuer's notice.
da
 The ratio of conversion is decided by the issuer.

4. Secured Debentures
 These instruments are secured by a charge on the fixed assets of the issuer
Pa
company.
 So if the issuer fails on payment of interest amount, such fixed assets can
be sold to repay the liability to the invetors.
w.
5. Unsecured Debentures
 These instrument are unsecured in the sense that if the issuer defaults on
payment of the interest or principal amount, the investor has to be included
ww
as unsecured creditors of the company.

6. Redeemable Debentures
 It refers to the debentures which are issued with a condition that the
debentures will be redeemed at a fixed date or upon demand, or after notice,
or under a system of periodical drawings.
7. Perpetual or Irredeemable Debentures
 A Debenture, in which no specific time is specified by the companies to pay
back the money, is called an irredeemable debenture.
“You Have To Dream Before Your Dreams Can Come

True”…

CHAPTER 27 COMPANY MANAGEMENT

1) A person shall hold office as a director in...................................companies
as per the Companies Act, 2013.
(a) 5 companies (b) 10 companies (c) 20 companies (d) 15 companies
2) Which.....................Director is appointed by a financial institution?
(a) Nominee (b) Additional (c) Women (d) Shadow
3) A Private Company shall have a minimum of........................
(a) Seven directors (b) Five directors (c) Three directors (d) Two directors
4) A Public Company shall have a minimum of.....................Directors.
(a) Twelve (b) Seven (c) Three (d) Two
5) A Public Company having a paid up Share Capital of Rs...............or more
may have a Director, elected by such small shareholders.
et
(a) One (b) Three (c) Five (d) Seven
6) Under the companies Act, which one of the following powers can
i.N
be exercised by the Board of Directors?
a) Power To Sell The Company’s Undertakings
b) Power To Make Call
la
c) Power To Borrow Money In Excess Of The Paid Up Capital
d) Power To Reappoint An Auditor
7) Which director need not hold qualifying shares........................?
sa
(a) Directors appointed to Central Government
(b) Directors appointed to Shareholders
(c) Directors appointed to Managing Director
da
(d) Directors appointed to Board of Directors

8) What is the statue of Directors who regulate money of the company?
(a) Banker (b) Holder (c) Agent (d) Trustees
Pa
9) According to Companies Act, the Directors must be appointed by the...........

(a) Central Government (b) Company Law Tribunal
(c) Company in General Meeting (d) Board of Directors
w.
10) The Board of Directors can exercise the power to appoint directors in the
case of........
(a) Additional Directors (b) Filling up the Casual vacancy
ww
(c) Alternate Directors (d) All the above

1. Name the Companies Required to Appoint KMP
 Every Listed Company.
 Every Public Company [Paid up capital ₹ 10 crores and more]
2. Who is whole time Director?
 A whole time Director is one who devotes the whole of his time of working
hours to the company and has a significant personal interest in the company
as the source of his income.
3. Who is called as Managing Director?
 A Managing Director is one who is employed by the company.
 He has substantial powers of management over the affairs of the company
subject to superintendence, direction control of the Board.

4. Who can be Executive Director?

 An executive director is a Chief Executive Officer (CEO) or Managing Director of
an organization, company, or corporation, who is responsible for making
decisions to complete the mission and for the success of the organisation.
1. When are Alternative Directors Appointed?
 Alternate Directors are appointed by the Board of Directors, as a substitute to a
(original) Director who may be absent from India, for a period which is not less
than 3 months.
 It is authorized by AOA or by passing a resolution in the Annual General
Meeting.
 He is not a representative or agent of Original Director.
et
2. Who is a Shadow Director?
 A shadow director is a person who is not a member of the Board
 But has some power to run it
i.N
 He can be appointed as the director but according to his/her wish.
3. State the Minimum Number of Directors for a Private company
1. Minimum Number of Directors
la
 Public Company: Directors is 3.
 Private company
sa
o One Person Company: Director is 1.
o Private Companies: Directors is 2.
2. Maximum Number of Directors
da
 A company can appoint maximum 15 directors.

1. Who are the KMP?
Pa
1) The Chief Executive Officer

2) The Managing Director or the Manager
3) The Company Secretary
4) The Whole-time Director
w.
5) the Chief Financial Officer

6) Such other officer as may be prescribed
Following Companies are required to appoint KMP
ww
Requirement to Appoint “KMP”

 Every listed company
 Every public company (having paid up share capital of Rs. 10 Crore or More)
2. Brief different types of Directors. (Any 5)
1) Residential Director
2) Independent Director
3) Small Shareholders Directors
4) Nominee Director
5) Women Director
6) Additional Directors
7) Alternate Directors

1. Residential Director:
 According to Section 149 (3) of the Companies Act 2013, every company
should appoint a director who has stayed in India for a total period of 182
days.
2. Independent Director
 An independent director is an alternate director other than a Managing
Director who is known as a Whole-time director or Nominee director.
3. Small shareholder’s Director
 Small shareholders can appoint a single director in a listed company.
4. Nominee Director
 A director nominated by any financial institution in pursuance of the
provisions of law.
et
5. Additional Directors
 Any Individual can be appointed as Additional Directors by a company.
6. Alternate Directors
i.N
 Alternate director is appointed by the Board of Directors, as a substitute
who may be absent from India, for a period of 3 months.
3. State the qualification of Directors
la
1) A director must be a person of sound mind.
2) A director must hold share qualification, if the article of association provides
sa
such.
3) A director must be an individual.
4) A director should be a solvent person.
da
5) A director should not be convicted by the Court for any offence.

Pa
w.
ww

CHAPTER 28 COMPANY SECRETARY

1) Mention the status of a Company Secretary in a company...................
a) A member b) A director c) An independent d) An employee contractor
2) Who can become a secretary for a company?
a) Individual person b) Partnership firm
c) Co-operative societies d) Trade unions
3) Which meeting will be held only once in the life time of the company?
a) Statutory b) Annual General c) Extra – Ordinary d) Class General
4) Board Meetings to be conducted minimum .......................times in a year.
a) 2 b) 3 c) 4 d) 5
5) Who is not entitled to speak at the annual general meeting of the company?
a) Auditor b) Shareholder c) Proxy d) Directors
et
6) Mention the company which need not convene the Statutory Meeting.
a) Widely Held Public b) Private Limited
i.N
c) Public Limited d) Guarantee Having a Share Capital
7) From the date of its incorporation the First Annual General Meeting is to be
conducted within ..............................months.
la
(a) Twelve (b) Fifteen (c) Eighteen (d) Twenty One
8) What percentage of shareholders is needed to pass special resolution?
a) It must be unanimous b) Not less than 90%
sa
c) Not less than 75% d) More than 50%
9) A special resolution must be filed with the Registrar within................
a) 7 days b) 14 days c) 30 days d) 60 days
da
10) A special resolution is required to

a) Redeem the Debentures b) Declare Dividend
c) Appoint Directors d) Appoint Auditor
Pa

1. Who is a Secretary?
 The word secretary has originated in Latin. The Latin word ‘Secretarius’ which
w.
means secret.
 The person who steers the company holding the administrative, financial, and
overall performance of the company is called company secretary.
ww
2. What is meant by Meeting?

 A meeting is a gathering of two or more person that has been convened for the
purpose of achieving a common goal through verbal interaction such as sharing
information or reaching agreement.
3. Write short note on ‘Proxy’?
 Proxy means a person being the representative of shareholders at the meeting
of the company.
 He cannot vote.
 He cannot speak.
 He can be present at the meeting.
4. What is Voting?
 The word ‘Vote’ originated from Latin word ‘Votum’ indicating one’s wishes or
desire.

 By casting his vote one formally declares his opinion or wish in favour of or
against a proposal or a candidate to be elected for an office.
1. What is Special Resolution?
 “Special Resolution” is one which is passed by not less than 75% of majority.
[3/4th majority]
 The number of votes cast in favour of the resolution should be three times the
number of votes cast against it.
 The intention of proposing a resolution as a special resolution must be
specifically mentioned in the notice of the general meeting.
2. What do you mean by Statutory Meeting?
 The First Meeting of the Company.
 This is convened only once in the life time of the company.
et
 It should hold the meeting of shareholders within 6 months but not earlier
than one month from the date of commencement of business of the company.
i.N
 The first general meeting of the public company is called statutory meeting.
3. Give Any Three Cases in Which an Ordinary Resolution Need to be passed
1) To change or rectify the name of the company
la
2) To alter the share capital of the company
3) To redeem the debentures
4) To declare the dividends
sa
5) To appoint the directors
1. Briefly State Different Types of Company Meetings
da
1) Meetings of Shareholders
(a) Statutory Meeting
(b) Annual General Meetings (AGM)
Pa
(c) Extraordinary General Meetings (EGM)

2) Meetings of the Directors
(a) Board meetings
w.
(b) Committees meetings

3) Special Meetings
(a) Class Meetings
ww
(b) Creditors and of Debenture/bond holders meetings

1. Statutory Meeting
 Every public company.
 Should hold a meeting of the shareholders within 6 months but not earlier
than one month from the date of commencement of business of the
company.
 This is the first general meeting of the public company is called the
Statutory Meeting.
 This meeting is conducted only once in the lifetime of the company.
 A private company or a public company having no share capital need not
conduct a statutory meeting.
 The company give the circular to shareholders before 21 days of the
meeting.

2. Annual general Meetings

 Usually it is convened once in a year.
 The first AGM convened within 18 months from the date of Registration.
 The time gap between two consecutive AGM should not exceed 15 months.
 It should be convened where the Registered office situated or in any other
place.
 Every AGM shall be held during business hours, on a day which is not a
public holiday.
3. Extra-Ordinary General Meeting
 Both Statutory meeting and annual general meetings are called as ordinary
meetings of a company.
 All other general meetings other than statutory and annual general meetings
are called extraordinary general meetings.
et
4. Board Meetings
 Meetings of directors are called Board Meetings. Meetings of the directors
i.N
provide a platform to discuss the business and take formal decisions.
 First meeting of directors should be convened within 30 (Thirty) days from
the date of incorporation of the company.
la
5. Committee Meetings
 Every listed company and every other public company having paid up share
capital of Rs. 10 crore is required to have audit committee.
sa
 This committee should meet at least four times in a year.
6. Class Meeting (Meetings of Particular Share or Debenture Holders)
 Meetings, which are held by a particular class of share or debenture holders
da
e.g. preference shareholders or debenture holders is known as class meeting.

 The debenture holders of a particular class conduct these meetings.
2. Explain different types of open and secret types of voting
Pa
 Voting: The word ‘Vote’ originated in Latin word ‘Votum’ indicating one’s
wishes or desire.
Procedures of Voting
w.
 There are two distinct procedures of voting viz.,

o Open
o Secret
ww
 Open Procedure
o By Voice
o By Show of Hands
 Secret Procedure
o By Ballot
o Postal Ballot
1. Open Procedure
a) By Voice
o Voice voting in which the chairman allows the members to raise their
voice in favour or against an issue.
“Yes” for Approval
“No” for Rejection.

o The chairman announces the results of voice voting on the basis of

strength of words shouted.
b) By Show of Hands
o Under this method, the chairman requests the members to raise their
hands of those who are in favour of the proposal or candidate and then
requests those are against.
o He announces the result on the basis of hands counted.
2. Secret Procedure
a) By Ballot
o Under this method, Ballot Paper Bearing Serial Number a (Symbol) is
given to the members to record their opinion by marking with a symbol
[S], they have to cast their vote in a secret chamber and put the ballot
paper into the ballot box.
et
o The votes are counted and the results are announced.
b) By Post [Postal Ballot]
i.N
o Big Companies or Big Associations having members scattered all over the
country follow this method of voting.
o The members or voters fill in the ballot papers and return them by post
la
in sealed covers which are opened when the ballot box is opened for
counting the votes.
sa
da
Pa
w.
ww


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UNIT 1 MANAGEMENT PROCESS

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III. Short Answer Questions

Ordinate and To Control.” - Henry Fayol (Or)

C. SivaKumar PG Asst. In Commerce Tiruvannamalai, Cell No: 6385381246 Page 1

3. What Are The Principles Of Taylor?

o Seminars, special courses, training programmes are becoming fashionable

o There is a growing tendency to select and appoint highly qualified, trained

2) Explain The Principles Of Modern Management. (Any 5)

o It is essential for the smooth functioning of all organizations.

accountable to one and only one superior.

CHAPTER 2 FUNCTIONS OF MANAGEMENT

developing willingness on the part of workers.

 “Think Before you Act”

1. List Out The Main Functions Of Management

3. How The Employees Are Informed About Important Matters In A Company?

subordinates on an ongoing basis in order to accomplish pre-set goals.

deciding increments and promotion decisions.

CHAPTER 3 MANAGEMENT BY OBJECTIVES (MBO) MANAGEMENT BY EXCEPTION

3. Mention Any Two Advantages of MBO

3) The responsibility of a worker is fixed through MBO.

premises. KRA are arranged on a priority basis.

1. Write The Features Of MBO (Any 3)

3. List out Any Three Process of MBO

4) Management by exception provides better yardsticks for judging results. It is

decisions and operational decisions are left to the lower levels.

important decisions, which can be demotivating for employees at a lower level.

UNIT 2 FINANCIAL MARKETS – I

and payment of cash occurs immediately.

 Debt Market is the financial market for trading in Debt Instrument

 “Fluctuates, depends on the demand and supply force”

III. Short Answer Questions

2. Enumerate the Different Types of Financial Markets. (Any 5)

CHAPTER 5 CAPITAL MARKET

quick deals, faster settlements and better liquidity.

Govt., banks and other financial institutions.

prevailing in the capital market for securities.

 The participants of the capital market include individuals, corporate sectors,

raise permanent capital.

4. Ready and Continuous Market

5. Reliable Guide to Performance

4) Over the Counter Exchange of India (OTCEI)

Exchange aims at providing the advantage of nation-wide electronic

 Under the scripless trading system, settlement of transactions relating to

 Stock Holding Corporation of India Limited (SHCIL) aims at serving as a

Success is when your Signature Changes to

CHAPTER 6 MONEY MARKET

c) Commercial Bill Market d) Capital Market

a) Treasury Bill b) Certificate of Deposit

a) High Liquidity b) Low Liquidity

a) Central Government b) State Governments

4. What do you meant by Switching?

2) 182 days Treasury Bills