Namma Kalvi 11th Commerce MLM Dhosth Guide em 219811

Namma Kalvi
DHOSTH
XI STANDARD
COMMERCE
MINIMUM LEARNING MATERIAL
SCAN ME
TAMILNADU TECHNICAL & DIGITAL SCHOLARS

ASSOCIATION
COMMERCE
FOR VIDEO FOR AUDIO ONLINE

EXAM
RSN English (Ashwin)

INDEX
S.NO TOPICS Page No.
1 D IGITA L BO OK (SCA N Q R CO DE)
2 BOO K BA CK 1 M A RKS 1
3 BOO K BA CK 2 M A RKS, 3 M A RKS, 5 M A RKS 7
4 BOO K BA CK 5 M A RKS 65
5 D O YO U KN OW (Q -A ) 67
6 Q R CO D E Q U ESTION S 70
7 IM PO RTA N TS EVEN TS A N D YEA R 81
8 IM PO RTA N T SECTIO N S 84
9 EXPA N SIO N S 87
10 PU BLIC EXA M Q U ESTIO N PA PER 90
11 D HO STH M O D EL Q U ESTION PA PERS 95

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BOOK BACK ONE WORD
CHOOSE THE CORRECT ANSWERS
UNIT 1
FUNDAMENTALS OF BUSINESS
CHAPTER -1
HISTORICAL BACKGROUND OF COMMERCE IN SUB-CONTINENTS
1. The place where the goods are sold is ______ Ans: Angadi
2. Hindrances of place is removed by _____ Ans: Transport
3. Who wrote “Arthasasthra” Ans: Kautilya
4. Trade and Commerce was common to ______ Dynasty. Ans: Pandiya
5. ________ was first sultan who paved way in the dense forest and helped traders to move place from one market
place to other place for their commercial caravans. Ans: Balban
CHAPTER 2
OBJECTIVES OF BUSINESS
1. The Primary objective of a business is Ans: Making profit
2. Occupation of a Doctor is Ans: Profession
3. The following does not characterize business activity? Ans: Salary or wages
4. Activities undertaken out of love and affection or with social service motive are termed as:
Ans: Non Economic Activities
CHAPTER 3
CLASSIFICATION OF BUSINESS ACTIVITIES
1. The industries engaged in extraction of iron ore are known as Ans: Extraction Industries
2. Auxiliaries to trade is also called as Ans: Aids to Trade
3. Production which involves several stages for manufacturing finished products is known as
Ans: Processing Industry
4. Normally high level risk involved in Ans: Industry
5. Commerce is mainly concerned with Ans: Connecting producer and consumer
UNIT II
FROMS OF BUSINESS ORGANISATION

CHAPTER 4
SOLE PROPRIETORSHIP
1. Which is the oldest form of Business organisation? Ans: Sole Proprietorship
2. In which form the owner, establisher and manager is only one? Ans: Sole Proprietor
3. A major disadvantage of sole proprietorship is ______ Ans: Unlimited liability
4. From the following which one is Non-corporate form of business? Ans: Sole trading business
CHAPTER 5
HINDU UNDIVIDED FAMILY AND PARTNERSHIP
1. The firm of Hindu Undivided Family is managed by whom? Ans: Karta
2. In the firm of Hindu Undivided Family, how one gets the membership? Ans: By Birth
3. The members in the joint hindu family are called ______ Ans: coparceners
4. ‘Only the male members in the family get the right of inheritance by birth’ as Ans: Mitakshara Law
5. A partnership is formed by _______ Ans: agreement
6. Registration of partnership is ______ Ans: optional
7. A temporary partnership which is formed to complete a specific job doing a specified period of time is called
Ans: Partnership-at-will
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8. The partnership deed also called ______ Ans: Articles of Partnership
9. A partnership is registered with _______ Ans: Registrar of Firms
CHAPTER 6
JOINT STOCK COMPANY
1. The relationship between outsiders and the company is defined in ___ Ans: Memorendum of Association
2. Table A of the Companies Act is a ______ Ans: Model of AOA
3. Which of the following is created by a Special Act of Parliament or in State Assemblies?
Ans: Statutory company
4. The Board of directors of a company is elected by _____ Ans: Share holders(members)
5. Companies established as a result of a charter granted by the King or Queen of a country is called _________
Ans: Chartered companies
CHAPTER 7
COOPERATIVE ORGANISATIONS
1. Membership in a cooperative organization is: Ans: open to all
2. Cooperative fails because of Ans: Mismanagement
3. All cooperatives are established with Ans: Service motive
4. Consumers Co-operation was first successful in _____ Ans: England
5. Rochdale society of equitable pioneers was started by ____ Ans: Robert Owen
Chapter 8
Multi National Corporations (MNCs)
1. A Multinational Corporation can be defined as a firm which
Ans: owns companies in more than one country
2. Centralized control in MNC’s implies control exercised by Ans: Headquarters
3. Enterprises operating in several countries but managed from one country is termed as _____
Ans: Multinational Company
4. Dispersal of decision making power to branches/affiliates/subsidiaries by head office represents ______
Ans: Decentralization
5. Coca-Cola company is an example of ______ Ans: MNC
CHAPTER 9
GOVERNMENT ORGANISATION
1. The share capital of the government company must not be less than Ans: 51%
2. Airport Authority of India is a public enterprise. Identify the form of organisation
Ans: Departmental Undertakings
3. The oldest form of organisation in public sector Ans: Departmental Undertaking
4. A Government company purchases shares in the name of Ans: President
5. The primary objective of the state enterprises is to ______ Ans: Serve the people
UNIT III
SERVICE BUSINESS – I
CHAPTER- 10 RESERVE BANK OF INDIA
1. Which bank has the power to issue bank notes? Ans: Central bank
2. The Central bank of India is Ans: RBI
3. The Reserve Bank of India commenced its operations from April 1, Ans: 1935
4. Bankers are not only dealers of money but alsoleaders in Ans: Economic development
5. Which of the following is not a function of a central bank? Ans: Deal with the general public
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CHAPTER 11
TYPES OF BANKS
1. Which bank is not a Industrial Bank? Ans: HSBC
2. The Local Area Banks are promoting Ans: Rural savings
3. Foreign banks are begun their operation since Ans: 1980
Chapter 12
Functions of commercial banks.
1. Electronic banking can be done through Ans: All the above
2. Minimum how much amount can be transferred through RTGS? Ans: 2 lakh
3. The largest commercial bank of India Ans: SBI
4. In which kind of account, it is compulsory to deposit certain amount at certain time? Ans: Recurring deposit
5. Which of the following is not a type of advance provided by commercial bank?
Ans: Collecting and supplying business information.
CHAPTER 13
WAREHOUSING
1. Warehouses remove the hindrance of ________ Ans: Time
2. A warehouse holds goods as a __________ centre. Ans: distribution
3. _____can be given as a collateral security for getting financial assistance from bank. Ans: Warehouse warrant
4. ____ warehouses are licensed by the government and are permitted to accept the goods on bond. Ans: Bonded
5. _____ warehouses are used for storing perishable goods like fruits, vegetables etc. Ans: Cold storage
6. The document which authorizes to deliver the goods either in part or full is called Ans: Dock warrant
7. The Institutional warehouse started with the support of the government is _______
Ans: Food Corporation of India
CHAPTER 14
TRANSPORTATION
1. Transport removes the hindrance of Ans: Place
2. Air consignment note is prepared in _____ forms Ans: Three
3. ____ is a document acknowledging the receipt of goods by a carrier Ans: Waybill
4. Which is the fastest means of transport? Ans: Air
CHAPTER 15
INSURANCE
1. The basic principle of insurance is________ Ans: Insurable Interest
2. ______ is not a type of general insurance Ans: Life Insurance
3. Which of the following is not a functionof insurance? Ans: Protection of life
4. Which of the following in not applicablein insurance contract? Ans: Indemnity contract
5. Which one of the following is a type ofmarine insurance? Ans: Cargo insurance
UNIT – IV
SERVICE BUSINESS – II
CHAPTER 16
EMERGING SERVICE BUSINESSES IN INDIA
1. A continuing relationship which provides a licence privileges to do business and provides training, merchandising
for a consideration is called ______ Ans: Franchising
2. A condition where a factor agrees to provide complete set of services like financing, debt collection, consultancy
is called ______ Ans: Full service Factoring
3. Buying and selling of goods through electronic network is known as ____ Ans: E - Commerce
4. An organization carrying out activities to move goods from producer to consumer is Ans: Transport
5. The role of government in logistics management is through Ans: Distribution
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6. The main benefit of Logistics is Ans: Cost Minimisation
7. What aims for an effective management response over the longer run Ans: Logistics
8. The model that identifies alternatives, criteria for decision making and analyse alternatives to arrive at the
best choice is Ans: Scheduling Model
9. A company under outsourcing transfers activities which are … Ans: Non - Core
10. Business units can reduce expenditure by outsourcing front office work like Ans: File work
11. The main benefit of outsourcing is Ans: Cost reduction
12. Outsourcing job is given to developing countries specifically for Ans: Cheap Labour
13. Outsourcing is carried out for the benefit of Ans: Time and money
UNIT V
SOCIAL RESPONSIBILITY ON BUSINESS AND BUSINESS ETHICS
CHAPTER 17
SOCIAL RESPONSIBILITY OF BUSINESS.
1. Which type of Responsibility gives the benefit to the Society out of its profits earned? Ans: Moral
2. The Stakeholders of Socially Responsible business units are except Ans: Company
3. Assuming Social Responsibility of business helps the enterprise in Ans: Sustainability
4. Socially Responsible business provides goods at Ans: Reasonable price
5. Social Responsibility towards employees represents the following except Ans: Exploitation
CHAPTER 18
BUSINESS ETHICS AND CORPORATE GOVERNANCE
1. Which of the following helps in maximising sale of goods to society? Ans: Ethics
2. Ethics is important for Ans: All of them
3. Which of the following does not ensure effective ethical practices in a business enterprise
Ans: Publication of a code
4. The role of top management is to guide the entire organisation towards Ans: Ethically upright behavior
5. The ethical conduct of employees leading to standard practices results in Ans: correct decision making
UNIT VI
BUSINESS FINANCE
CHAPTER-19
SOURCES OF BUSINESS FINANCE
1. What is defined as the provision of money at the time when it is required? Ans: finance
2. Internal sources of capital are those that are ____ Ans: generated within the business
3. Debenture holders are entitled to a fixed rate of _________ Ans: Interest
4. Public deposits are the deposits which are raised directly from ______ Ans: The public
5. Equity shareholders are the __________ of a company Ans: Owners
6. Funds required for purchasing current assets is an example for Ans: Working Capital Requirement
7. Which of the following holder is given voting right? Ans: Equity shares
8. It may be wise to finance fixed assets through ____________ Ans: Long term debts
CHAPTER-20
INTERNATIONAL FINANCE
1. An instrument representing ownership interest in securities of a foreign issuer is called ___________
Ans: a depositary receipt
2. Issuance of DRs is based on the increase of demand in the_____________ Ans: International market
3. ADRs are issued in__________ Ans: The USA
4. Depositary receipts that are traded in an international market other than the United States are called____________
Ans: Global Depositary Receipts
5. __________ bond is a special type of bond issued in the currency other than the home currency.
Ans: Foreign Currency Convertible Bond
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CHAPTER 21
MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) AND SELF HELP GROUPS (SHGs)
1. MSMED Act was enacted in the year Ans: 2006
2. MSMEs are important for the nation’s economy because they significantly contribute to Ans: all the above
3. Self help groups convert the savings into a common fund known as Ans: Group corpus fund
4. There are ______ distinct modes of credit to Self Help Groups. Ans: 3
5. Investment limit of a micro enterprise under manufacturing sector does not exceed____lakhs Ans: 25
UNIT VII
TRADE
CHAPTER 22
TYPES OF TRADE
1. The purchase of goods from a foreign country is called ____________. Ans: Import
2. When goods are imported for the purpose of export it is called as________. Ans: Entrepot
3. ___________ acts as a connective link between the producer and the consumer. Ans: Trade
4. The aim of home trade is ___________ Ans: To provide the essential goods and services economically
5. Internal trade can be classified into __________ categories Ans: Two
CHAPTER 23
CHANNELS OF DISTRIBUTION
1. Trade middleman who acts as a link between wholesaler and customers refers to a _______. Ans: Retailer
2. Who is the first middleman in the channel of distribution? Ans: Wholesaler
3. _______ buy the goods from the producer and sell it to the retailers. Ans: Wholesaler
4. ————— are agents who merely bring the buyer and the seller into contact. Ans: Broker
5. Merchant middlemen can be classified into ————— categories. Ans: Two
6. Wholesalers deal in ——————— quantity of goods. Ans: Large
7. A —————— is a mercantile agent to whom goods are entrusted for sale by a principal and takes physical
possession of the goods, but does not obtain ownership. Ans: Factor
CHAPTER 24
RETAILING
1. Retailers deal in ____________ quantity of goods Ans: Small
2. Small scale Fixed retailers include __________ Ans: General stores
3. Small shops which deal in a particular line of products are called as _______ Ans: Single line stores
4. _____are mobile traders who deal in low priced articles with no fixed place of business. Ans: Itinerant traders
UNIT VIII
INTERNATION BUSINESS
CHAPTER 25
INTERNATINAL BUSINESS
1. Movement of goods, services, intellectual property, human assets, technology and so on among the countries.
Ans: International Trade
2. Goods are Imported for purpose of re-export to another country is termed as_________. Ans: Entre-pot Trade
3. Movement of goods, services among the countries. Ans: International business
4. Selling of goods from home country to foreign country is called Ans: Foreign trade
CHAPTER 26
EXPORT AND IMPORT PROCEDURES
1. EPC stands for Ans: Export Promotion Council
2. STC is expansion for Ans: State Trading Corporation
RSN
3. An English
—————— (Ashwin)
is document prepared by importer an sent to the exporter to buy the goods Ans: Indent
4. The ————————— receipt is an acknowledgement of receipt of goods on the ship issued by the Captain
Ans: Bill of Lading
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5. The Exporters appoint the —————— agent to fulfil the customs formalities Ans: Forwarding Agent
Chapter 27
Facilitators of International Business
1. General Agreement on Tariff and Trade was signed on Ans: 30-October-1947
2. WTO was estabilished on Ans: 1-1-1995
3. The headquarter of WTO is located at Ans: Geneva
4. The day to day administration of WTOis entrusted with Ans: General Council
5. World bank is located at Ans: Washington DC
CHAPTER 28
BALANCE OF TRADE AND BALANCE OF PAYMENTS.
1. The Statement which discloses a record of transactions between the residents of one country and residents
of foreign country. Ans: Balance of Payment
2. The Balance of Payments councils consists of Ans: Both Current Account and Capital Account
3. Foreign capital long- term loan and foreign currency reserve are recorded under Ans: Private Capital
4. The term official capital includes Ans: Both A and B
5. Balance of payments surplus indicates Ans: Exports are more than the Imports
UNIT IX
THE INDIAN CONTRACT ACT
CHAPTER 29
ELEMENTS OF CONTRACT
1. An agreement enforceable by law is a Ans: contract
2. Every promise and every set of promises, forming the consideration for each other, is an Ans: Agreement
3. Void agreement signifies Ans: Agreement not enforceable by law
4. Acceptance to be valid must Ans: Both be absolute & unqualified
5. A contract with or by a minor is a Ans: Void contract
CHAPTER 30
PERFORMANCE OF CONTRACT
1. On the valid performance of the contractual obligations by the parties, the contract Ans: Is discharged
2. Which of the following persons can perform the contract? Ans: All the above
3. A, B, C jointly promised to pay Rs.50000 to D. Before performance of the contract, C dies. Here, the contract
Ans: Should be performed by A and B along with C’s legal representatives.
4. Which of these parties cannot demand performance of promise? Ans: Stranger to the contract
5. A person is said to be a third person if he is not a Ans: agent
CHAPTER 31
DISCHARGE AND BREACH OF CONTRACT
1. On the valid performance of the contractual obligation by the parties, the contract Ans: Is discharged
2. An agreement to do an act impossible in itself under Section.56 is Ans: Void
3. Any agreement which becomes impossible to perform under various circumstances Ans: Void
4. Discharge by mutual agreement may involve Ans: All the above
5. The compensation given for breach of contract is Ans: Damage
Unit X
Direct tax and indirect tax
Chapter 32
Direct tax
1. Income Tax is Ans: a direct tax
2. Period of assessment year is Ans: 1st April to 31st March
3. The year in which income is earned is known as Ans: Previous Year
4. The aggregate income under five heads is termed as Ans: Total Income
5. Agricultural income earned in India is Ans: Fully Exempted
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Chapter 33
Indirect tax
1. Who is the chairman of the GST council? Ans: Finance Minister
2. GST Stands for ______ Ans: Goods and Services Tax
3. What kind of Tax the GST is? Ans: Indirect Tax
4. What is IGST? Ans: Integrated Goods and Service Tax
5. In India GST became effective from? Ans: 1st July, 2017
UNIT I
Chapter – 1
Historical background of commerce in the sub – continent
II .Very Short Answer Questions
1. What is meant by Barter system?
 Before invention of money goods were exchanged for goods is known as barter system.
 Each party who have surplus stock can take place in barter system.
2. What is meant by Nallangadi?
 The place where the goods were sold was called Angadi.
 The day market was called as Naalangadi
3. What is meant by Allangadi?
 The place where the goods were sold was called Angadi.
 The night market was called as Allangadi .
III. Short Answer Questions

1. Explain the meaning of the term “Vanigam”.
 The word vaniyam or vanipam would have had a Dravidian origin.
 In early Tamils produced their products and goods in their lands and bartered their surplus and that is how
trade came into existence.
 The word ‘Vanigam’ has been widely used in sangam literature like Purananuru and Thirukkural.
2. What is the role of Sangam in trade development of ancient Tamilnadu?
 In sangam period both internal and external trade was conducted by means of barter (pandamattru)
 The trade is the one of the major link of variour religion in the medieval period.
 Sangam work refers to great traders, their caravans, security force, markets, marts and guilds of such great
traders.
3. State the meaning of Maruvurapakkam and Pattinapakkam.
 Big cities like Poompuhar had two town
 Maruvurappakam’ (inland town)
 Pattinapakkam’ (coastal Town)
 The town had market and bazaars - where many merchants met one another for the purpose of selling or
buying different kinds of commodities and food stuff.
 The people in the coastal region, were engaged in different kinds of –Fishing, pearl, produce salt - Built
ship, boat like - oadagu, thimil, thoni, ambu were used to for crossing the river
4. What are the ports developed by Pandiya kingdom?
 Trade and commerce was so common to Pandiya Dynasty.
 Trade in copper, cloth, salt, flower, sandal wood, fish, paddy, cereals, pearls, etc.
 The port which are developed during the pandiyas period such as Shipping , Light house etc.
 Pandiyas developed korkai, Saliyur, Kayal, Marungaur , pattinam and Kumari for foreign trade.
5. What was focused in Arthasasthra about creation of wealth?
 “Kautilya’s Arthasastra” describes economy in Mauriyan time. According to Kautilya,trade in Medieval India
was centralized.
 The commodities produced could not be sold in the location of production, so the state designated certain
places for selling the commodities.
 Kautilya gave importance for the state treasury , taxation, industry, commerce , agriculture and conservation
of natural resources on the creation and promote wealth .
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IV. Long Answer Questions
1. What are the hindrances of business?
The various hindrances removed by business are as follows
1. Hindrance of person
 Manufacturers do not know the place and face of the consumers.
 The retailer who knows the taste, preference of the consumers.
 The chain of middlemen consisting of wholesalers, agents and retailers establish the link between
 the producers and consumers.
2. Hindrance of place
 Production takes place in one centre and consumers are spread throughout the country and world.
 Rail, air, sea and land transports bring the products to the place of consumer.
3. Hindrance of time
 Goods are produced and stored in warehouses in different regional .
 The goods distributed at the right time to the consumers on their demand.
4. Hindrance of risk of loss
 Fire, theft, floods and accidents may bring huge loss to the business.
 Insurance companies serve to cover the risk of such losses.
5. Hindrance of knowledge
 Advertising and communication help in announcing the –
 arrival of new products and
 their uses to the people.
6. Hindrance of finance
 If the Producers and traders may not have the required funds.
 Banks and other financial institutions provide funds
2. Briefly explain the coastal trade in ancient Tamilnadu.
South coromandel coast within the territory of tamilnadu state .It is the sea side town Internal trade
with both eastern and western people.
1. Big cities like Poompuhar had two town:
‘Maruvurappakam’ (inland town), ‘Pattinapakkam’ (coastal Town).
2. The town had market and bazaars:
Where many merchants met one another for the purpose of selling or buying different kinds of
commodities and food stuff.
3. Port towns like Tondi, Korkai, Puhar and Muziri were always seen as busy with marts and markets with
activities related to imports and exports.
4. The people in the coastal region, were engaged in different kinds of Fishing, pearl and produce salt and built
ship, boat like oadagu, thimil, thoni, ambu .It was used to for crossing the river and oceans for domestic
trade and foreign trade
3. Explain the development of Commerce and Trade in North India.
 India was prosperous even during themedieval period from 12th to 16th centuries despite political upheavals.
 Balban was the first sultan who paved the way in the dense forest and helped traders to move from one
market place to others. Alauddin Khilji encouraged import of foreign goods
 India’s handicraft commanded a good foreign market.
 Indian products were exported to East Africa, Malaya, China and Far East.
 India imported horses, dry fruits, precious stones, glassware, high grade textiles, raw silk, corals, scented
oil, velvets, etc. From Kabul, Arabia, Europe, West Asia and China.
 The traders of Malabar, Gujarat and foreign settlers in the ports of Calicut, Khumbat and Mangalore controlled
a major business sector in port cities.
4. What do you know about the overseas trading partners of ancient Tamilnadu?
 Roman and Greek forged trade relationship with ancient Kings of –
 Pandiya,
 Chola and
 Chera dynasties.
 Cholas had a strong trading relationship with Chinese, secure a sea trading route to China.
 During the 16th and 18th centuries, India’s overseas trade expanded European companies.
 The European merchants who came to India were not only individual merchants but also
 represented their respective governments.
 They gained a strong foothold in India’s maritime trade
 The discovery of new all sea routes from Europe to India -via Cape of Good Hope by Vascoda Gama
 In the 17th and 18th centuries East India Company which became the British Empire in Textiles and ship
building and fame.
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5. State the constraints ( Limitation) in barter system.
The barter system envisages mutual exchange of one’s goods to other without the intervention of
money as a medium of exchange. It imposes certain constraints.
1. Lack of double coincidence of Wants
 Unless two persons who have surplus have the demand for the goods possessed by each other, barter could
not materialize.
 If this “coincidence of wants” does not exist, Barter cannot take place.
2. Non – existence of common measure of value
 Barter system could not determine the value of commodities to be exchanged
 It was difficult to compare the values of all articles in the absence of an acceptable medium Of exchange.
3. Lack of direct contact between producer and consumers
 It was not possible for buyers and sellers to meet face to face in many contexts for exchanging the commodities
for commodities.
 This hindered the process of barter in all practical sense.
4. Lack of surplus stock
 Absence of surplus stock was one of the impediments in barter system.
 If the buyers and sellers do not have surplus then no barter was possible.
Chapter 2
Objective of Business
II.Very Short Answer Questions
1. Define Economic Activities.
Activities undertaken with the object of earning money are called economic activities.
 Production of goods by manufactures  Distribution of goods by wholesalers
 Selling by retailers
2. What do you mean by Business?
Business refers to those economic activities which are concerned with the production or purchase
and sale of goods or supply of services with the main object of earning profits. Ex: farming , fishing etc.
3. Define Profession.
Professions are those occupations which involve rendering of personal services of a special and expert
nature.’ Ex: lawyers, doctors, engineers, charted accountants.
4. What do you mean by Employment?
Employment refers to the occupation in which people work for others and get remunerated in return.-
Employed by other are called Employee. one who employs other is called Employers
III. Short answers

1. What do you mean by human activities? Explain
Human Activities
Human activity is an activity performed by a human being to meet his/her needs and wants or may be
for personal satisfaction. It can be categorised into – 1. economic 2. non-economic activities
Economic Activities
Activities undertaken with the object of earning money are called economic activities. Ex: Production
of goods by manufacturers, Selling by retailers.
Non-Economic Activities
Activities undertaken to satisfy social and psychological needs are called non economic activities.
Ex: Cooking food for family ,Celebrating festivals
2. Write short notes on: a) Business b) Profession
1. Business
 Business refers to any human activity undertaken on regular basis.
 The business activities which are concerned with the production, purchase and sale of goods, supply of
services with the main object of earning profits. Ex: farming , manufacturing , fishing , etc.
2. Professions
 Profession are those occupations which involve rendering of personal services of a special and expert
nature.
 Profession is a career for someone who is competent in their respective areas.
 Ex: lawyers, doctors, engineers, charted accountants
3. Explain the classificationof ‘Business’.
Definition
According to James Stephenson business refers to “Economic activities performed for earning profits.”
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1. All business activities are mainly concerned with Production, Distribution, Purchase and sale of goods and
services.
2. Profit earning is the main with the main object of the business.
3. Business activities are classified on the basis of Size, Ownership, Function.
4. Briefly state the human objectives of a business
Human Objectives of the business -
 Human objectives aimed at the well-being as well as fulfillment of expectations of employees.
 And also people who are disabled, handicapped and deprived( lost ) of proper education and training.
 The human objective of business may include Economic well being of the employees Social and psychological
satisfaction of employees and Development of human resources.
IV. Long answer
1. Explain the characteristics of business.
1. An economic activity:
All business activities are economic activities and are done for the purpose of earning money.
2. Production and procurement of goods and services:
 A business activity involves production or procurement of goods and services.
 A manufacturer is involved in production, and a shopkeeper is involved in procurement.
3. Sale , transfer and exchange :
Sale and exchange of goods and services is done to satisfy human needs.
4. Regularity of dealing:
 One time dealing in goods or services cannot be termed as a business.
 The business should happen on a regular basis.
5. Profit earning:
 Profit earning is the fundamental motive of doing a business.
 Other objectives cannot be attained without it.
6. Element of risk: An element of risk is always present in business activity.
2. Compare business with profession and employment.

Basis Business Profession Employment
1. Mode of Promoter’s Membership of Appointment letterand
establishment (Entrepreneur’s)decision aprofessional body service agreement.
registration andother legal andcertificate of practice.
formalities
2. Nature of Work Goods and servicesprovided Rendering ofpersonalized, Performing work assignedby
to the public. expertservices. the employer.
3. Qualification No qualification isrequired. Education andtraining in a Qualification andtraining as
specificfield is must. prescribedby the employer.
4. Basic motive Earning profit bysatisfying Rendering service. Earning wages orsalary by
needs of society serving theemployer.
5. Reward orReturn Profit earned. Professional fee. Salary or wages.
6. Capitalinvestment Capital required is based on Limited capital isrequired. No capital required.
thesize and nature of
business.
3. Discuss any five objective of business

1. Economic Objectives
Economic objectives of business refer to Earn profit, Creation of customers, Regular innovations and,
best possible use of available resources.
2. Social Objectives
 Social objectives of the business, which are desired to be achieved for the benefit of the society.
 By utilizing the scarce resources, the society expects something in return for its welfare
3. Organizational Objectives
The organizational objectives denote intends to accomplish during the course of its existence in the
economy like expansion and modernization, supply of quality goods to consumers, customers’ satisfaction,
etc.
4. Human Objectives
Human objectives aimed at the well-being as well as fulfillment of expectations of employees. people
who are disabled, handicapped and deprived( lost ) of proper education and training.
5. National Objectives
 The national objective of the business is to fulfilling national goals and aspirations.
 The goal of the country to provide Employment opportunity to its citizen, - Become self-sufficient in production
of goods and services, promote social justice, etc.
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4. Distinguish between economic and non – economic activity
Basic Economic activities Non – economic activities
1. Definition Those activities which Those activities which are undertakenfor

areundertaken to earn money the sake of pleasure, performed outof
orfinancial gain. Ex – fruit love, sympathy. Ex – mother cooksfor her
sellerselling fruit family
Motive is to earn money Motive is to satisfies
2. Motive andfinancial again. Ex– working social,psychological, emotional
aslawyer needs.Ex– visit to a temple
All economic activities can It cannot be measure valued inmonetary
3. MoneyMeasurement bevalued in monetary terms.Ex – term . These are expressedas feeling,
doctor charges a fee though , gesture.Ex – An NGO
forconsultation. distributes freeclothes to poor children.
It is related to the creation It is related to not creation of wealthe.g.,
4. Relationship ofwealth . e.g., Ram saved part of Money received as donation isspent on
hissalary to purchase a house of charity work.
hisown.
Result in production, Result in mental, emotional
5. Outcome orpsychological satisfaction .e.g., Sona
procurement,distribution and
consumption ofgoods and services. enjoys teaching orphans inan or
e.g., Nokia produces cell phanage.
phonesand sells across India
through itsdistributors.
Chapter 3
Classification of business activities
II. Very Short answer
1. Define commerce
According to Evelyn Thomas, “Commercial operations deal with the buying and selling of goods, the
exchange of commodities and the contribution of finished products”.
2. What do you mean by industry
Industry refers to economic activities, which are connected with conversion of resources into useful
goods. The production side of business activity is referred as industry
3. What is trade ?
 Trade is an essential part of commerce. The term ‘trade’ is used to denote buying and selling of goods
 Trade may be classified into -
1. internal trade and external trade, 2. wholesale trade and retail trade.
4. Write a short note on transportation.
Transportation means the medium of transport through which men and material are moves from one
place to another.
III. Short answer
1. Distinguish between Extractive industries and genetic industries.
Extractive industry Genetic industries.
These industries extract product from These industries remain engaged in breedingplants
naturalsources like - soil, air or water.- and animals for their use in furtherreproduction.-
farming, mining, oil drilling, hunting and seeds, nursery companies,- poultry, diary, piggery,
fishing.Etc fisheries, apiary etc
2. What do you mean by tertiary industries?( service industry)

1. They do not produce goods.
2. These industries produce utility services and sell them at a profit.
3. It includes banking, finance, insurance, warehouse, advertisement, communication, transportation etc.
3. Write any three characteristics of commerce.
1. Commerce is an economic activity because it is undertake to earn profit.
2. Commerce involves the exchange of goods and services for profit.
3. The primary objective of Commerce is to earn profit
4. Narrate commerce with an example
 Commerce refers to all those activities which bringing goods from the place of production to the place of
their consumption.
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 Commerce deal with – buying and selling of goods, Exchange of commodities
 Commerce includes not only trade but also services – transport, warehousing, banking, insurance,
IV. Long answer

1. Distinguish between industry, trade and commerce.
Basic Industry Commerce Trade
1. Meaning Extraction, reproduction, It inv olv es distribution of Pur chase a nd sa le of g oo d
conver sion, pr oce ssing goods and services. andservices.
andconstruction of useful
products.
2. Capital Lar ge a mount of Comparatively lessercapital Small capital is neededdepends
capitalinvested is required. investment isrequired on the nature ofbusiness
3. Scope It Consists of all I t Comprise s tra de and It Comprises exchange ofgoods
activitiesinvolving conversion auxiliaries to trade. and services.
ofmater ials into finis hed
goods.
4. Risk It involves maximum risk Less risk a s compa re d Less risk involved .
toindustry
5. utility I t Cr eate f orm utility Create time, place utility by I t Cr eate pos sessionutility
bychanging the form or shape moving goods fromproducers through exchange.
of materials. to consumers.
2. Explain the various kinds of industry?

On the basis if activities
I. Primary industry:
Primary industry is concerned with production of goods with the help of nature.
E.g. Agriculture, farming, forestry, fishing, horticulture, etc.
Primary industries are of two types.
1. Extractive industry
These industries extract product from natural sources like - soil, air or water Extractive industries
include — farming, mining, oil drilling,. etc
2. Genetic industry
These industries engaged in breeding plants and animals for their use in further reproduction. Genetic
industries includes - seeds , nursery companies, poultry, diary, etc.
II. Secondary Industry:
These industry concerned with manufacturing of new product by using the materials which have
already been extracted at the primary stage. ex: Mining of an iron ore is a primary industry, manufacturing
of steel from raw irons is a secondary industry.
1. Manufacturing Industries
Manufacturing industries are engaged in transforming raw material into finished product with the help of
machines and manpower . e.g., paper from bamboo, sugar from sugar cane.
Analytical industry : which analyses and separates different elements from the same materials. e.g.,
petrol, diesel, gasoline out of crude oil.
Processing: which involves successive stages for manufacturing finished products, as in the case of
sugar, paper and steel from iron ores.
Synthetic: Many raw materials are mixed to produce more useful product e.g., paints, cosmetics etc.
Assembling: The parts manufactured by different industries are assembled to produce new and useful
product e.g., computers, watches etc.
2. Construction Industry:
These types of industries involved in constructions of roads, bridges, buildings as well as
tunnel and canals.
III. Tertiary or Service Industry:
These industry does not produce goods but provide utility services and sell them at a profit. - banking,
insurance, warehouse, advertisement etc.
On the basis of Size
On the basis of size or scale of operations industries may be classified as follows
1. Micro Industries 2. Small Industries 3. Medium Industries and 4. Large Industries
3. Briefly explain the auxiliaries to trade.
Auxiliaries to Trade:
All those activities which help in removing various hindrances in production and distribution of goods
are called auxiliaries to trade.
1. Trade
 The term ‘trade’ is used to denote buying and selling of goods
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 Trade classified into - 1.internal trade and external trade, 2. wholesale trade and retail trade.
2. Transportation
 Transportation means the medium of transport through which men and material are moves from one place
to another. Goods are send to different places where they are demanded.
3. Banking and Finance:
 To start the business or to run it smoothly we require money.
 Business needs funds for acquiring assets, purchasing raw materials and meeting other expenses.
4. Insurance:
 Business involves various types of risks.
 Factory building, machinery, furniture are protected against fire, theft and other risks.
 Employees are protected against the risks of accident and occupational hazards.
 Insurance provides a cover against all such cases.
5. Warehousing:
 Usually, goods are not sold or consumed immediately after production. This problem can be solved by
storing the goods in warehouses.
 Special arrangement must be made for storage of goods to prevent loss or damage.
4. What are Characteristic Of Commerce ?
Economic activity –
 Commerce is an economic activity.
 A trader buys and sells the goods to earn profit and wealth..
Exchange of goods and services –
 Commerce involves an exchange of goods and services for profit.
 Goods may be produced for the purpose of resale to the consumers.
Profit (earning motive)
 The motive of the commerce is to earn profit.
Creation of utility
 Commerce create place and time utilities to satisfy customer needs.
 It (commerce)transport goods from place of production to place of consumption to create place utility.
Regularity of transport
 Transaction should be done regular.
 Commerce involves exchange , distribution and promotion of products, It is done a regular basis.
5. Write short note on :
1. analytical industry 2. genetic industry 3. construction industry
1. Analytical industry :
Analytical industries refer to those manufacturing industries which produce many types of products
by analyses and separates different elements from the same materials. petrol, diesel, gasoline out of crude
oil.
2. Genetic industry
These industries engaged in breeding plants and animals for their use in further reproduction. Ex:
seeds, nursery companies, poultry, diary, etc
3. Construction Industry:
These types of industries involved in constructions of – roads, bridges, buildings, tunnel and
canals.
Unit II
FORMS OF BUSINESS ORGANIZATION
Chapter 4
SOLE PROPRIETORSHIP
II. Very Short Answer Questions
1. Who is called a Sole Trader?
The person who invests his own capital, use his own skill and intelligence in the management of it
affair of the business and is solely responsible for the result of its business is called sole trader or sole
proprietor.
2. What are the Non-corporate enterprises?
Non – corporate business, the ownership and business are not separated. Owner can have direct
control over the business. 1. sole proprietorship 2. Partnership 3. joint Hindu family business
3. What are the Corporate enterprises?
Corporate enterprises, the ownership is separated from its management . the owner cannot take
direct control over the business. 1. Government companies 2. Joint stock companies 3. Co-operatives.
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4. For which of the following types of business do you think a sole proprietorship form of organization
would be more suitable, and why?
Sole proprietorship organization is most suitable, because low capital investment, less risk involved
and quick decision making. a. Grocery store b. Medical store c. Craft centre d. Legal consultancy
III. Short answer
1. How is it possible to maintain secrecy in sole proprietorship?
 A sole trader can maintain business secrets.
 He alone control over all affairs of the business.
 The sole proprietor is not expected to share his trade secrets with anybody else.
2. What is unlimited liability?
 The liability of the proprietor for the debts of the business is unlimited.
 The creditors have the right to recover their dues even from the personal property of the Proprietor.
 The unlimited liability of a sole proprietor may affect his Enthusiasm and novel ideas in business.
3. Write any three characteristics of Sole Proprietorship.
1. Ownership by one man
 A sole trading concern is owned by single person.
 The sole trader contributes the required capital.
2. Unlimited Liability
 When his business assets are not sufficient to pay off the business debts he has to pay from his personal
property.
 The creditors have the right to recover their dues even from the personal property of the Proprietor.
3. Maintenance of Secrecy
 Sole trader manages all the affairs of the business,
 Hence he can maintain the business secrecy easily.
4. Give some examples of Sole trading business.
1. Handicrafts 2. Tailoring shops 3. Retails trade
4. Filigree work 5. Petty shop 6. Beauty parlour 7. Fruit seller
5. Define Sole trading business.
According to Wheeler, “ the sole proprietorship is that form of business organisation which is owned
and controlled by a single individual. He receives all the profits and risks all of his property in the success or
failure of the enterprise”.

1. Explain the characteristics of Sole trading business.
1. Ownership by one man
 A sole trading concern is owned by single person.
 The sole trader contributes the required capital.
2. Freedom of work and Quick Decisions
 Since the sole trader is himself as a owner, he need not consult anybody else.
 Hence he can take quick decisions.
3. Enjoying entire profit
 He strives tirelessly for the improvement and expansion of his business.
 He enjoys all the benefits and profit of the business .
4. Absence of Government Regulation
 A sole proprietor concern is free from Government regulations.
 No legal formalities are required in its formation, management the business .
5. No Separate Entity
 The sole trader and the business are one and the same.
 The sole trading concern comes to an end with death, disability, and insolvency of the individual.
6. Maintenance of Secrecy
 Sole trader manages all the affairs of the business,
 Hence he can maintain the business secrecy easily.
2. What are the advantages of Sole trading business?
1. Easy Formation
 No legal formalities are required to initiate a sole trading concern.
 Any person capable of entering into a contract can start witt necessary resources for it.
2. Incentive to Work hard
 There is a direct relationship between effort and reward.
 The entire profit can be taken by sole trader without sharing with anybody else .
3. Small Capital
 Small capital is the specific advantage of sole proprietorship.
 Sole proprietor can start business with small amount of capital.
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4. Credit Standing
 Since his private properties are held liable for the business debts
 He can get more financial assistance from others.
5. Personal Contact with the Customers
 sole proprietor knows taste and preferences of the customer.
 He can supply goods according to their preference of the consumer .
6. Flexibility
 It is a highly flexible type of organization.
 The sole trader can easily adjust and change the requirements of his business
3. What are the disadvantages of Sole trading business?
1. Limited Capital
 The resources of a sole proprietor are limited
 the capital is contributed by one single individual have
2. Limited Managerial Skill
 Single person’s intelligence and experience may not help him beyond a certain stage.
 Since he has to focus on each and every activity,his managerial ability is bound to be limited.
3. Unlimited Liability
 The creditors have the right to recover their dues even from the personal property of the proprietor
 In case the business assets are not sufficient to pay their debts.
4. Lack of Specialisation
 Since the business unit is small and the financial resources are limited,
 Experts in different fields cannot be employed to secure maximum advantages
5. Hasty Decisions
 Sole proprietor is more likely to take hasty decision as he need not consult anybody else.
 The hasty decisions may result in loss and affect the sole trader business.
Chapter 5
Hindu Undivided Family And Partnership
1. Who is called KARTA?
All the affairs of a Joint Hindu Family business are controlled and managed by the head of the family,
is known as ‘Karta’ .
2. What are the two schools of Hindu law?
Dayabhaga Law (The right of property devolves on the coparceners by succession and not by birth.)
Mitakshara law- (There is a son’s right by birth in the property of joint family.)
3. Who is a called a Partner?
The person one who enter into partnership are individually called partners and collectively known as
firm.
4. Who is a Sleeping partner?
The partners who merely contribute capital and does not take active interest in the conduct of the
business is called sleeping or dormant partners.
5. Who is a Minor?
Under the Indian Majority Act, person who has not completed 18 years of age is a minor.
6. How many types of Dissolution?
 Dissolution of partnership firm means putting end to the relationship among the partners.
 They are two of dissolution 1. Dissolution of firm 2. Dissolution of partnership
1. What is the meaning of Joint Hindu Family Business?
“When two or more families agree to live and work together, invest their resources and labour jointly
and share profits or losses together this family is known as HUF”
1. A Joint Hindu Family comprises of - Father, mother, sons, daughters, grandsons and granddaughters.
2. They hold the property jointly.
3. They do the business under the control of the head of the family.
2. Write any 3 features of HUF.
Governed by Hindu Law
The business of the Joint Hindu Family is controlled and managed under the Hindu law.
Management
All the affairs of a Joint Hindu Family business are controlled and managed by the head of the family,
is known as ‘Karta’ or ‘Manager’.
Membership by Birth
The membership of the family can be acquired only by birth. that child becomes a member.
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3. Explain the nature of liability of karta.
 The head of the family is known as Karta
 All properties of the business maintained by the Karta
 He pay taxes on the behalf of the family
4. What is the meaning of Coparceners?
 The word coparcener has been used very widely in relation to the Hindu law and the HUF.
 In relation to HUF property, a coparcener is a person who acquires a right in the property by birth.
 only male members of a family called coparceners.
5. Define Partnership.
According to Prof.Haney, “The relations which exist between persons, competent to make contracts,
who agree to carry on a lawful business in common with a view to private gain”.
6. What is the minimum and maximum number of members in the partnership concern?
 Partnership is the outcome of an agreement between two or more persons.
 The minimum number of member is 2 and maximum to 10 in the case of banking business 20 in the case of
all other business.
7. What is the meaning of Partnership Deed?
 A partnership Deed is a written agreement containing all the terms and conditions of partnership.
 It is important to have a written agreement in order to avoid misunderstandings;
 Drafted partnership deed helps in ironing out the develop among partners and ensuring smooth running of
the partnership business.
8. What is meant by Joint and Several Liability?
 Every partner is jointly and severally liable for all acts of the firm.
 It means that in case the assets are inadequate for meeting the claims of creditors,.
 The creditors can recover their claims from all the partners.
9. Who is called a Secret partner?
 A partner who merely contributes capital and shares in the profits or losses of the firm
 But does not take active part in the management of the business.
 He may not be known as a partner to the outsiders;

1. What is the implied authority of Karta?
Implied Authority of Karta:
In a joint family firm Karta has the implied authority to enter into a contract for debts and pledge the
property of the firm for the ordinary purpose of the businesses of the firm.
1. Power to manage: karta has the power to manage property , business affairs and family the way he like.
2. Power to represent: karta represent the family in all matters - legal, social, religious.
3. Power to get income: karta has power to get income arising from joint family business.
4. Power to compromise: kara has power to compromise all disputes relating to family property , debts, other
transaction.
5. Power to contract debts: the creditor can make the entire joint family liable for such debts karta can execute
a promissory note on behalf of the family.
6. Power of alienation: karta has no power to dispose the joint family property without the consent of all other
members.
2. What are the contents of Partnership Deed?
A partnership Deed is a written agreement containing all the terms and conditions of partnership.
Content of partnership deed
1. Name of the firm
2. Names and addresses of all partners.
3. Nature of business proposed to be carried on by the firm
4. Arbitration of duties
5. Account keeping
6. capital contributed by each partner.
7. Withdrawal from firm.
8. Date of agreement and principal place of business.
9. Duration of partnership.
10. Interest on capital and interest on drawings.
11. Loan from partners
12. Profit / loss sharing ratio.
13. Procedure for admission or retirement of partner
14. Salary and commission to partner
15. Retirement
16. Goodwill valuation
17. Dissolution procedure
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3. Explain the types of dissolution of partnership firm.
Dissolution of a partnership firm taken place in two ways.
I. without the order of the court II. By order of the court.
I. Without the order of the court
1. By agreement or mutual consent
A firm may be dissolved when all the partners agree to close the affairs of the firm by Contract or by
agreement.
2. By insolvency of all the partners but one
 If any of the partners adjudged (become) an insolvent or
 If all the partners become insolvent
3. When the objective becomes illegal
 If the partnership carried any illegal business,
 The partnership firm is automatically dissolved.
4. By notice of dissolution
 In case of partnership-at-will.
 Any partner by giving a notice in writing to all the other partners of his intention to dissolve the firm.
5. On certain contingencies:
 Death of a partner.
 Expiry of the duration of partnership.
 Completion of the specific venture
 Retirement of a partner
II. Dissolution through court
The court may order for dissolution of a firm at a suit of a partner in any of the following circumstances.
(On the filing of suit by a partner, the court may dissolve the firm on the following grounds)
1. When a partner becomes insane
2. Permanent incapacity of any partner
3. Misconduct of any partner
4. Breach of agreement which makes the business impracticable
5. Transfer of interest to third person
4. Write any three differences between Dissolution of Partnership and Dissolution of Firm.
S.No Dissolution of Partnership Dissolution of Firm
1. Dissolution of partnership means thetermination Dissolution of firm means dissolution
of the original partnershipagreement. ofpartnership. On dissolution of firm,
partnershipbusiness comes to an end.
2. A par tne rship is dissolve d by ins olvency , A firm is dissolved by partners mutually
retirement, expiry or completion or byorder of the court.
In the event of dissolution of partnership,asset In the event of dissolution of firm,
3. and liabilities are revalued and balancesheet is asset andliabilities are realized and
drawn. liabilities are paidoff.
4. The business will continue after dissolution The business cannot be continued
ofpartnership. afterdissolution of partnership firm.
5. Revaluation account is prepared to ascertainprofit Realization account is prepared to
and loss. ascertainprofit and loss.
5. Write the procedure for Registration of a Firm.

Under partnership Act, 1932. Registration of a partnership firm in India is not compulsory, It is only
optional. But the disabilities of non-registration virtually make it compulsory.
Procedure for Registration:(The statement should contain the particulars).
1. Name of the firm
2. Principal place of its business
3. Name and address of each partner
4. Date of admission of each partner
5. Date of commencement of business of the firm
6. Duration of the firm
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Chapter 6
Joint Stock Company
1. What are the different types of companies?
1. Charted companies 2. Statutory companies 3. Association not for profit
2. Define a Company.
“A company is an artificial person created by law having a separate entity with a perpetual succession
and a common seal”. - Sec 2 of Companies Act 2013
3. What is meant by Limited liability?
 The liability of the members of the company is limited.
 A member is liable only to the uncalled money due on shares held by him.
4. Explain any two characteristics of a company.
1. Separate legal entity
 Under Incorporation a company becomes a separate
 It has its own seal and its own name,
2. Perpetual succession
 The continuation of company does not affected by death, disability of members or the transfer of shares.
 A company is created by law and it can be windup only through legal process.
5. What is meant by Chartered Company?
Chartered companies are established by the King or Queen of a country. Examples: - East Indian
Company, Bank of England,
1. What are the advantages of Companies?
1. Large Capital
A join stock company secure( requires) a Large amount of capital is necessary for conducting business
on a large scale.
2. Limited Liability
 The liability of a shareholder is limited,
 In the case of a company limited by guarantee.
3. Transferability of Shares
 Transaction of Shares between two individuals is easy.
 Any shareholder can easily convert his shares into money by selling his shares.
2. What is meant by Private Company?
Private Company
 Private limited company is formed with minimum - two shareholders and two directors,
 It requirement authorised or paid up capital minimum of Rs.1,00,000
 The name of private company should be suffixed with pvt ltd or (p) ltd.
3. What is meant by Government Company?
Government Companies
According to Indian Companies Act 1956, “Government company means any company in which not less
than 51% of the paid-up share capital is held by –
1. The Central Government.
2. State Government .
3. Both Central Government and State Governments. Ex: Steel Authority of India, Indian Oil Corporation,
4. What is meant by Foreign Company?
Foreign Companies
 A foreign company means a company which is incorporated in a country outside
 After the establishment of business in India
 The Registrar of Companies within 30 days from the date of establishment.
1. What are the contents of Memorandum of Association?
1. Name Clause
 It requires to state the legal and recognized name of the company
 The name of the company which is allow to be registered does not similarities with the name of an existing
Company.
2. Situation Clause
 It requires to show the physical location of the registered office of the company.
 The registered office should be established prior to commencing business activities.
3. Objective Clause
 It requires to summarize the main objectives of the company
 The objectives should be free of any provisions or contravene laws or public good.
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4. liability Clause
 It state the extent to which shareholders of the company are liable to the debt obligations of the company
 In the event of the company dissolving.
5. Capital Clause
 It state the company’s authorized share capital.
 The different categories of shares
2. What are the contents of Articles of Association?
Articles of Association is an important document as it contains the rules and regulations for its internal
management of the company.
Contents:
1. Amount of shares, capital, value and type of shares
2. Borrowing powers of the company
3. Declaration of dividends
4. Manner of transfer of shares
5. Procedures of making calls on shares.
6. Procedure for conducting proxy, quorum, meetings etc.
7. Procedures concerning keeping of books and audits
8. Rights of shareholders regarding voting, dividend, return of capital
9. Rules regarding issue of shares and debentures
10. Rules regarding the appointment, remuneration, removal of directors
11. Seal of the company
12. Procedures regarding the winding up of the company.
3. What is meant by Prospectus?
According to Section 2(36) of the Companies Act any document inviting the public to buy its shares or
debentures comes under the definition of prospectus.
Content:
1. prospectus contains the main objectives of the company
2. the name and addresses of the signatories of the Memorandum of Association
3. The number of shares held by shareholder .
4. The name, addresses and occupation of directors and managing directors.
5. The number and classes of shares and debentures issued.
6. The qualification share of directors and
7. The name and addresses of the vendors of any property acquired by the company and the amount paid or to
be paid.
8. Particulars about the directors, secretaries and the treasures and their remuneration.
9. The amount for the minimum subscription.
10. The estimated amount of preliminary expenses.
11. Time and place where copies of balance sheets, profits and loss account and the
12. auditor’s report may be inspected.
4. what is meant by Multi National Company?
A Multi National Company (MNC) is a huge industrial organisation which,
1. Operates in more than one country
2. Carries out production, marketing and research activities on international Scale in those countries.
3. Seeks to maximise profits world over.
4. A domestic company or a foreign company can be a MNC.
5. Such a company has factories, branches and in more than one country.
6. It is also known as- Transnational corporation, Global giant, World enterprise, International enterprise
Examples: Microsoft Corporation, Nokia Corporation, Nestle, Coca-Cola, International Business
Machine, Pepsico, Sony Corporation.
5. What is meant by Holding and Subsidiary company?
Holding and Subsidiary company
As per Section 2(87) “subsidiary company” or “subsidiary”, in relation to any other Company, means a
company in which the holding company.
1. Controls the composition of the Board of Directors; or
2. Exercises or controls more than one half of the total share capital either at its own or together with one or
more of its subsidiary companies:
RSN English (Ashwin)holds more than 51% of share capital of another company is called Holding company and
Where a company
the latter company is called Subsidiary company.
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Chapter 7
Co- operative
1. What do you mean by cooperative organization?
Co- operative is a private business organization that is owed and controlled by the people who use its
products, suppliers or services.
2. Define Co-operation?
“ A co-operative society is a form of organization wherein persons voluntarily associate together as
human beings on the basis of equality for the promotion of economic interests of themselves”.
3. Who are Rochdale pioneers?
ROBERT OWEN started the first ever co-operative movement in the year 1844 with 28 members called
as ROCH DALE society of Equitable pioneers.
4. What is Credit cooperatives?
 credit co-operative society are formed with the object of providing short-term finance to members.
 Agriculturist , artisans, industrial workers, salaried employees, ect., form these credit societies.
5. Is low taxes possible in Cooperative society?
Yes , Co operative society is a non profit enterprise and government provides various exemption on tax.

1. What are the disadvantages of Co-operatives ?
Limited funds
a) Co-operative societies are promoted by the weaker Sections with limited membership .
b) Therefore the funds available with the co-operatives are limited.
Over reliance on Government funds
a) Co-operative societies are not able to raise their own resources.
b) they are depend on government funds for funds ( finance)
Government intervention
a) Co-operative societies are subject to excessive government rules and regulation
b) This will affects the management of the co –operative .
2. write a note on Housing cooperatives.
a) These cooperative housing societies are meant to provide residential accommodation to their members on
ownership basis or on rent.
b) People who intend to build houses of their own .
c) These societies advance loans to members, repayable over a period of 15 to20 years.
3. What is meant by Producers cooperative society?
Producers Cooperatives
a) Producer cooperatives are established and operated by producers.
b) Producers can decide to work together it help increase marketing possibilities and production efficiency.
c) They are organized to process, market, and distribute their own products.
Ex: Cooperative weavers’ societies, Cooperative carpenting units, Cooperative match factories.
4. Write a note on cooperative farming societies.
Cooperative Farming Societies is formed by -
a) The various farmers in a village pool their land together for the purpose of cultivation, purchase the necessary
inputs for the cultivation, market the crops.
b) Such a society, elect office bearers on the bases of one member one vote.
c) Besides the farmers also contribute various productive assets as well as their labour for the purpose of
cultivations.
5. Write a note on industrial cooperatives.
Industrial co-operatives
a) An industrial co-operative is organised by small scale producers.
b) Cooperative undertakings are a useful means of developing small scale and cottage industries.
c) Industrial co operatives are very useful in obtaining raw materials, in improving the quality of products.

1. What are the principles of cooperatives?
Voluntary and Open Membership
a) Cooperatives are - voluntary organizations, b) It is open for all people.
Democratic Member Control
a) Cooperatives are - democratic organizations b) It is controlled by their member.
Autonomy and Independence
a) Cooperatives are - autonomous, self-help organizations controlled by their members.
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b) If the co-operative enters into agreements with other organizations (from external sources,)
Education, Training, and Information
a) Cooperatives provide education and training for members,
b) Elected representatives, managers and employees for the development of their cooperative.
Cooperation among Cooperatives
a) Cooperatives serve their members and strengthen the cooperative movement – by working together .
b) Through local, national, regional and international structures.
2. What are the advantages of cooperative society?
1. Voluntary organization
a) cooperative society is the voluntary association person.
b) The membership fees is kept low so any can join and get benefit
2. Easy formation
a) Cooperatives can be formed much easily b) With minimum 25 members
3. Democracy
a) A co-operative society is run on the principle of ‘one man one vote‘.
b) It implies that all members have equal rights in managing.
4. Limited liability
a) The liability of the members is limited to the extent of their capital contribution.
b) They cannot be personally held liable for the debts of the society.
5. Separate legal entity
a) A cooperative society enjoys separate legal entity
b) Therefore its continuance - not affected by the death, insanity or insolvency of members.
3. What are the types of Cooperative society?
1. Consumer’s Co-operatives
a) Consumer co-operative are organized by consumers
b) To achieve better prices or quality in the goods and services they purchase.
Ex: students cooperative , cooperative provision store .
2. Producers Cooperatives
a) Producer cooperatives are - established and operated - by producers.
b) It help in increase – 1). marketing possibilities and 2). production efficiency.
3. Marketing Cooperatives
a) Marketing cooperative are associations of small producers formed for the purpose of marketing their produced
product.
b) It perform certain marketing function such as – grading, warehousing, advertising etc.,
4. Credit Cooperatives
a) Cooperative credit societies are formed for the purpose of providing short term Finance to their members.
b) Credit societies may be - Agricultural credit societies or non-agricultural credit societies.
5. Housing cooperative
a) Housing cooperative are meant to provide residential accommodation to their members on ownership basis
or on rent.
b) These societies advance loans to members, repayable over a period of 15 to20 years.
4. Write a note on Consumer cooperative society.
Consumers Cooperatives
1. Consumer cooperatives are organized by consumers
2. to achieve better prices or quality in the goods or services they purchase.
3. Consumer cooperative exists - to deliver goods or services - rather than to maximize profit from selling
those goods or services.
4. They also supply essential commodities through Public Distribution System (PDS).
5. Credit unions are essential for cooperatives people for banking services.
Ex: students cooperative , cooperative provision store .
5. Whether misuse of funds is possible in co-operatives.
 Yes, their is a possible of misuse of funds in co-operatives
 If the members of the managing committee are corrupt
 They can swindle the funds of the co-operative society.
 Many cooperative societies have faced financial troubles and
 Also closed down because of corruption and misuse of funds.
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Chapter 8
Multi National Corporation
1. Define Multinational Company.
“A multinational corporation owns and manages business in two or more countries.” - Neil
H.Jacoby
2. Write any two advantages of MNC.
 Low cost labour
 Quality product
 Proper use of idle resources
3. Give two examples of MNC.
1. Bata India 2. Colgate India 3. Maruthi Suzuki
4. Name the type of business enterprise which operates in more than one country.
1. Microsoft corporation 2. Nokia corporation 3. Coca – cola 4. Sony corporation
1. What are the advantages of MNC’s?
1. Low Cost Labour
a) MNC set up to facilitate to produce goods/service at lower cost.
b) It gains cost advantage and sells its products at low cost.
2. Quality Products
a) The resource, experience and expertise of MNCs in the sphere of research and development
b) enables the host country to establish its research and development system
3. Proper Use of Idle Resources
a) Because of their advanced technical knowledge,
b) MNCs utilise the physical and human resources of the host country.
2. What are the disadvantages of MNC’s?
1. Danger for Domestic Industries
a) MNCs, because of their vast economic power, pose a danger to domestic industries
b) Domestic industries cannot face challenges posed by MNCs.
2. Transfer of Outdated Technology
Where MNCs transfer outdated technology to host nation, it serves no purpose.
3. Economic Growth of Home Country
MNCs may neglect home countries industrial and economic development.
Chapter 9
Government organization
1. State the different types of public sectors enterprises.
1. Departmental undertaking 2. Statutory corporation 3. Government company
2. What is the basic feature of a Departmental undertaking?
1. ultimate responsibility 2. governmental financing
3. accounting and audit 4. managed by civil servants
3. Give two examples for each of the following:
(i) Private sector enterprises (ii) Global enterprises (iii) Public enterprises
1. Private sector enterprises: a) Reliance industries Ltd b) Wipro Ltd
2. Global enterprises: a) Unilever limited b) Coca – cola corporation
3. Public enterprises: a) Air India b) Indian Railways
4. State the form of public enterprises which is most suitable for projects related to National Security.
1. Departmental undertaking 2. Statutory corporation 3. Government company
5. The Industrial Policy Resolution 2001 exclusively reserved for few industries for the public sector.
name these industries.
1. Mineral based industries 2. Craft based industries 3. Tourism
4. Marine aquaculture and agro – based medicinal herbs and minor forest produce.
III. Short answer questions
1. List the areas where the state or central ownership is a preferred form of business organisation.
Justify your choice of areas.
 Most of the industrial progress was limited in during the period of pre independence.
 Public sector industries were deliberately set up in these backward regions.
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 The government located new enterprise in backward areas.
 Example: Bhilai Steel Plant in Madhya Pradesh
2. What are the different kinds of organisations that come under the public sector?
1. Departmental undertaking
a) These enterprises are established as departments of the ministry of a government.
b) Thse undertaking may be under the central government or the state government. Ex: -Railways, B.S.N.L.
2. Government Companies
 A public enterprise incorporated under the Indian Companies Act, 1956 is called a government company.
 These companies are owned and managed by the central or the state government .
 Examples: Steel Authority of India, Indian Oil Corporation.
3. Statutory corporation
 Companies are established by a Special Act made in Parliament/State Assembly.
 Ex: Food Corporation of India, LIC, GIC, RBI, SBI, IDBI.
3. List the names of some enterprises under the public sector and classify them.
The following are the some enterprise with public sector -
1. Departmental undertaking
a) Indian railway b) Indian post and telegraph c) B.S.N.L.
2. Government company
a) Hindutan Steel Ltd, b) Bharath Heavy Electricals Ltd
3. Statutory corporation
a) Reserve Bank of India, b) Life Insurance Corporation and Unit Trust of India
4. Define Departmental undertaking.
 It is the oldest form of organization.
 No distinction was made between the routine functions of the Government.
 A public enterprise is run as a separate full-fledged ministry.
 Ex: Indian Railways, Post and Telegraph services, All India Radio, Doordarshan.
“Any company in which not less than 51% of the paid-up share capital is held by the Central Government
or State Government or partly by the Central Government and partly by State Governments” - Section 2(45)
of the Companies Act, 2013 Ex: Food Corporation of India, ONGC.

1. What are the advantages and disadvantages of Departmental undertaking?
Advantages
1. Easy Formation
a) It is easy to set up a departmental undertaking.
b) It is created by an administrative of the Government,
2. Direct and Control of Parliament or State Legislature
The departmental undertaking is directly responsible to the Parliament or the State legislature
3. Secrecy Maintained
a) Strategic industries like defence and atomic power cannot be better managed other than govt. depts.
b) Department undertakings can maintain secrecy in their working.
Disadvantages
1. Red – tapism
a) There is too much of procedures which results in delay.
b) Commercial organization cannot afford delay in taking decisions.
2. Incidence of Additional Taxation
a) Losses incurred by a departmental enterprise are met out of the treasury.
b) The additional taxation burden which falls on the common man.
3. Lack of Competition
a) The control of these undertakings are given to the civil servants who may not have business outlook or
commercial experience.
b) So, they run the undertaking in their own fashion without considering the sovereignty of the consumers.
2. What are the features of Public corporation?
1. Special Statute
 A public corporation is created by a special Act of the Parliament or the State Legislature.
 The Act defines its powers, objectives, function in relation with the ministry & Parliament.
2. Separate Legal Entity
RSN
 English
A public (Ashwin)
corporation is a separate legal entity with perpetual succession and common seal.
 It can own properly make contracts and file suits, in its own name.
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3. Capital Provided by the Government
 The capital of a public corporation is provided by the Government
 public corporations have also begun to raise money from the capital market.
4. Financial Autonomy
 A public corporation enjoys financial autonomy.
 It prepares its own budget.
5. Management by Board of Directors
 Its management is vested in a Board of Directors, appointed or nominated by the Government.
 No Governmental interference in the day-to-day working of the corporation.
3. What are the Features of Government company?
Features of Government Company
1. Registration Under the Companies Act
a) A Government company is formed and registration under the Companies Act, 1956.
b) It is subject to the provision of this act, like any other company.
2. Executive Decision of Government
a) A Government company is created by an executive decision of the Government,
b) without seeking the approval of the Parliament or the State Legislature.
3. Separate Legal Entity
a) A Government company is a legal entity separate from the Government.
b) It can acquire property; make contracts and can file suits, in its own name.
4. Whole or Majority Capital Provided by Government
a) The whole or majority (at least 51%) of the capital is provided by the Government;
b) The revenues of the company are not deposited into the treasury.
5. Majority of Government Directors
a) Being in possession of a majority of share capital,
b) The Government has authority to appoint majority of directors,of a government company.
4. What are the advantages and disadvant ages of Public corporation?
Advantages
1. Bold Management due to Operational Autonomy
a) A public corporation is free from Governmental control.
b) Management can take bold decisions involving experimentation of business activities .
2. Legislative Control
a) Affairs of a public corporation are subject to Committees of Parliament or State Legislature.
b) It keeps check on management of the public corporation.
3. Tailor-Made Statute
a) The special Act, by which a public corporation is created, to meet the specific needs of the public corporation;
b) The corporation can function in the best manner to achieve its objectives.
Disadvantages
1. Autonomy and Flexibility, Only in Theory
There is a lot of interference in the working of a public corporation by Ministers, government officers.
2. Rigid Constitution
a) The constitution of a public corporation is very rigid.
b) It cannot be changed, without amending the Statute of its formation.
3. Low managerial efficiency
Quite often civil servants, who do not possess management knowledge and skills, are appointed by
the government on the Board of Directors.
5. What are the features of Departmental organisation?
1. Ultimate Responsibility
 The ultimate responsibility of the departmental undertaking lies with the minister of the Parliament or
State Legislature.
 The minister, delegates his authority downwards to various other management levels, in the departmental
undertaking.
2. Governmental Financing
 The departmental undertaking is financed through annual budget
 Appropriations by the Parliament or the State Legislature.
3. Accounting and Audit
 The departmental undertaking is subject to the normal budgeting, accounting and audit procedures, which
are applicable to all Government departments.
4. Managed by Civil Servants
 The departmental undertaking is managed by civil servants,
 The service conditions as applicable to civil servants of the Government.
5. Sovereign Immunity
 A departmental undertaking cannot be sued anybody, without the consent of the Government.
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Chapter 10
Reserve Bank of India
II. Very Short Answer
1. What are the services included in Service businesses?
1. Banking service 2. Insurance service 3. Transportation services
4. Communication service 5. Warehousing service 6. Advertising service
2. Write the meaning of ‘Bank.’
Banking means the accepting for the purpose of lending or investment of deposits of money from the
public, repayable on demand and withdrawable by cheque, draft, pay order .
3. Briefly explain about Central Bank.
a) central bank is owned by the Government of the country.
b) The control over the entire banking system of a country is vested with this apex bank .
III. Short Answer

1. Mention the importance of banking services.
a) Banking service is the nerve center of industry and commerce .
b) By providing the money required for their regular functioning and development.
c) Central Bank also plays a most important role , which are owned by the Government of the country.
2. Explain the origin of RBI.
a) The RBI Act 1934 was passed
b) RBI was established with a share capital of Rs.5cores divided into shares of Rs.100 each fully paid up.
c) After independence, the Government of India passed Reserve Bank Act, 1948 and took over RBI after paying
appropriate compensation to the private shareholders.
3. Who are the persons involved in RBI administration?
i. The RBI is governed by a Central Board of Directors.
ii. The 21 member board is appointed by the Government of India.
It consists of -a) One governor and four deputy governors b) Two government officials
c) Four directors - one each from local boards. d) Ten directors from various fields
IV. Long Answer

1. Classify the various functions of Reserve Bank of India.
I. Leadership and Supervisory Functions
1. India’s Representative in World Financial Institutions
2. Regulator and Supervisor of Indian Banking System
3. Monetary Authority
4. Closely Monitoring Economic Parameters
II. Traditional Functions
1. Banker and Financial Advisor to the Government
2. Monopoly of Note Issue
3. Banker’s Bank
4. Controller of Credit and Liquidity
5. Quantitative Methods of Credit Control
a) Bank rate policy b) Cash reserve ratio ( CRR) c) Statutory liquidity ratio ( SLR)
III. Promotional Functions.
1. Nurturing Banking Habits among the Public
2. Grievance Settlement Measures
3. Agricultural Development
4. Promotion of Small Scale Industries
5. Facilitates Foreign Trade
2. Explain the organizational structure of RBI.
1. The head office of the RBI is situated in Mumbai.
2. This central office has 33 departments in 2017.
3. It has four zonal offices in Mumbai, Delhi, Calcutta and Chennai
4. It also has 19 regional offices and 11 sub-offices.
5. The RBI is governed by a Central Board of Directors.
6. The 21 member board is appointed by the Government of India.
It consists of -
One governor and four deputy governors
Two government officials
Four directors - one each from local boards.
Ten directors from various fields.
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Chapter 11
Types of Banks
1. Give the meaning of Commercial Banks
Banks which accept deposits from the public and grant loans to traders, individuals, agriculture,
industries, transport, etc. Ex: a. State Bank of India b. Karur Vysa Bank c. Standard Chartered Bank
2. What do you mean by Industrial Banks?
Huge finance required for investment, expansion and modernisation of big industries are granted by a
separate type of banks called development Banks. They are also called industrial banks. Ex: IFCI,SIDBI
3. Briefly explain about Correspondent Banks?
a. Banking Correspondents (BCs) are retail agents
b. It is engaged by banks for providing banking services at low cost in locations other than a bank /ATM.
4. What are Foreign Banks?
a. Banks which have registered office in a foreign country and branches in India are called foreign banks.
b. These banks open their offices in big cities and port towns only.
Ex: i. Bank of America - The USA, ii. Barclays Bank - The UK, iii. Deutsche Bank - Germany
III. Short Answer
1. Write a short note on Local Area Banks, Give two examples.
a) Local Area Bank (LAB) scheme was introduced by the RBI in August 1996.
b) LABs are small private sector banks established in rural and semi-urban areas.
Ex: Coastal Local Area Bank, Vijayawada, Andhra Pradesh.
2. What are the objectives involved in Regional Rural Banks?
a) The RRBs were formed under the Regional Rural Bank Act 1976
b) jointly by the Central Government, State Government, and a sponsor bank.
c) Their objective is to – 1). develop rural economy 2). mobilize deposits from the rural public
Ex: 1) Pallavan Grama Bank, Salem, 2) Pandian Grama Bank.
3. Mention the purposes of Agricultural and Co-operative banks.
a) All cooperative banks in India are owned by its members , farmers, small traders and others.
b) Cooperative banks are either urban based or rural based.
c) All cooperative banks in Tamil Nadu are registered under Tamil Nadu Cooperative Societies Act 1983.
Ex:1) National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED)
2) Tamil Nadu State Apex Cooperative Bank
IV. Long Answer
1. Explain the various types of banks based on organization with examples
1. Unit banking
a) UNIT BANK operates with only one office, usually small bank.
b) That provides financial services to its local community.
Ex. USA is the home of unit banking system.
2. Branch banking.
a) It is refers to a bank that is connected to one or more other banks in an area or outside
b) This bank provides all the usual financial services
Ex: Chase in the U.S., owns Chase bank branches in over 20 states
2. Explain the types of banks based on ownership pattern.
BANKS OWNED BY GOVERNMENT
 Any bank in which not less than 51 percent ( MORE THAN 51 %) of shares are owned by the Government are
called Government banks or public sector commercial banks.
 All nationalized banks (19 banks, in 2017), SBI and IDBI Ltd. are public sector commercial banks.
 Each corporation type bank is established by a separate Act of Parliament and is fully owned by Government
of India.
BANKS OWNED BY PRIVATE PEOPLE
 IFCI, SIDBI, EXIM Bank, etc.
 All banking companies owned by private people are called private sector commercial banks.
 Their objective was to earn more profits.
 Government paid the share capital of those banks to the private owners and took over as Government
banks.
Nationalised Banks: Indian bank,Indian Overseas Bank, Oriental Bank of Commerce.
Public Sector Banks: State Bank of India, IDBI Bank Ltd. and all nationalized banks
Private Sector Banks: Lakshmi Vila Bank, Karur Vysya Bank, Kotak Mahindra bank.
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Chapter 12
Functions of Commercial banks
1. What is Mobile Banking?
a. Most of the commercial banks have designed computer programs called apps
b. With this app in the smart phone a customer can operate his account transactions from anywhere.
2. Briefly explain the need for Debit card.
 ATM card is also called debit card.
 This card is used purchase of goods and services anywhere in India,
3. Briefly explain the term - Credit card.
 Banks issue credit cards to customers
 With this card, the holder can purchase goods and services on credit at any shop in India.
4. What do you mean by ATM?
A customer can withdraw money anytime, anywhere in India from the ATM machine using the ATM card.
5. Write a note on - ECS.
 Electronic Clearing Services (ECS) - was launched by the RBI in 1995.
 It is an electronic method of fund transfer from a bank to another bank.
III. Short Answer
1. What is E-Banking?
1. Banking through internet is know as E- Banking or internet banking.
2. Transfer of fund directly from one account to another, rather than by cheque or cash. this facilitates the
customer in Transfer of funds, Online payment, Account enquiry, Request for statement, etc.,
3. E- banking comprises of - NETF, RTGS, ECS, CORE BANKING, Mobile banking
2. Write a short note on - RTGS.
a) It was launched by the RBI in 2013.
b) The transfer of money and securities between one bank and another bank on Real time and on Gross
settlement basis.
c) Minimum limit for RTGS transaction is 2 lakhs.
3. Briefly explain the Diversified banking services of commercial banks.
1. Competition in the banking industry has reduced its profit .
2. The commercial banks offers new financial services and banking services is also called universal banking.
Ex: a) bank assurance b) Merchant banking d) Housing finance
4. Explain - NEFT.
 Under this Electronic Funds Transfer system, transfer funds from any bank to any person account with
any other bank branch across (in) India.
 Individuals and institutions which maintain accounts with a NEFT
 Both NEFT and RTGS use IFSC (Indian Financial System Code) – a 11 digit alphanumeric code,
5. What do you mean by Core Banking Solutions?
CORE’ stands for ‘Centralized Online Real time Exchange’.
A customer can deposit and withdraw money through cheque at any branch of that bank throughout the world.
this facility is called core banking solutions.
IV. Long Answer
1. Discuss the various primary functions performed by the commercial banks.
The primary functions of a commercial bank are -
I. Accepting Deposits
Commercial bank accept deposit from public. The deposit are classified into
1. Demand deposits
 These deposit are repayable to the customer on their demand.
 Saving deposit ,Current deposit
2. Time deposit
 The deposit is made for fixed period or deposit made every month or the agreed period.
 Fixed deposit ,Recurring deposit
II. Granting Loans and Advances.
Advance loan and lending money is the another important function of commercial bank in order to earn money.
1. Advance
a. Overdraft b. Cash credit c. Discounting of bills
RSN2. English
Loans
(Ashwin)
a. Housing loan b. Consumer loans c. Vehicle loan d. Education loan e. Jewel loan
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III. Creation of Credit
 Apart from the issuing currency money by RBI.
 The credit money created by the commercial banks is – channelized under the guidance of the RBI.
2. Explain the various secondary functions of commercial banks.
Secondary function of commercial bank can be classified into
I. Agency function
1. Transfer Of Funds - bank issue demand drafts, cheques to transfer funds.
2. Periodic Payment Of Premiums, Rent, Etc. - bank undertakes payment of bill, premium , rent of customer
through ECS
3. Preparation Of Income Tax Return – bank prepare annual tax return and provide advice to the customer.
4. Dealing in foreign exchange – bank buy and sell foreign currencies on behalf of customer.
5. Conduct Share Market Transactions - Demat account facilitate bank to conduct online purchase and sale of
securities on behalf of customer.
II. General utility function
1. Issue of demand draft and banker’s cheque - to the customer for the payment of educational fees, ects
2. Accepting bills of exchange on behalf of customers
3. Safety lockers – valuable document, jewels can be kept under vaults room .
4. Letter of credit – this document is given by bank on behalf of importing to the exporter guaranteeing
payment for the imported goods.
5. Travelers cheque
Chapter 13
Warehousing
1. What is Warehouse?
a) Warehouse is a place where goods are stored for future use and act as distribution centres.
b) It designed depending upon the nature of the products .
2. List the various types of Warehouses.
I. On the basis of ownership
1. Private warehouses 2. Government warehouses
3. Public warehouses 4. Co-operative warehouses
II. On the basis of commodities stored
1. General warehouses 2. Special commodity warehouses
3. Give any three functions of Warehouses.
 Storage
 Price stabilization
 Business finance
4. Tabulate the three differences between warehouse warrant and warehouse receipt.
Warehouse warrant Warehouse receipt
1. It is a document of title of goods. 1. It is not a document of title of goods.
2. It can be negotiated or transferred to other. 2. It cannot be transferred to others.
5. Give a note on FCI.

 The FCI was set-up under the Food Corporation Act 1964.
 It provide storage facilities for food grains
III. Short Answer

1. Differentiate the warehouse warrant from the warehouse receipt.
Warehouse warrant Warehouse receipt
It is a document of title of goods. It is not a document of title of goods.
It can be negotiated or transferred to other. It cannot be transferred to others.
It can be given as collateral security for It cannot be given as collateral security.
getting finance.
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2. Comment on cold storage warehouse.
 Goods are transported in refrigerated containers and stored in refrigerated warehouses.
 These warehouses are used for storing perishable goods like fruits, vegetables, eggs, butter, fish, meat, etc.
 Goods stored in cold storages without deterioration in quality, can be made available throughout the year.
IV. Long Answer

1. Explain the different types of warehouses.
a. Private Warehouses
 It’s built and owned by private business enterprises in order to store the products produced by them.
 They are exclusively for their use and are not meant for other manufacturing or business units.
b. Government Warehouses
 They are created and operated by the Government to implement the programmes of the Government.
 Their services mostly available to government only.
c. Public Warehouse
 It is open for public at large.
 These warehouses operate as per the rules and regulations formed by the Government.
d. Co-operative Warehouses
 There are warehouses owned and managed by the marketing co-operative societies.
 They are set up to provide warehousing facilities to their members.
e. General Warehouses
 They are ordinary warehouses which are useful for storing most of the dry food grains, fertilizers.
 Protective measures against rat, insects, etc. are undertaken by them.
2. Explain the advantages of warehousing functions.
(i) Storage
 There is a time gap between the time of production and the time of consumption.
 And a gap between demand and supply.
(ii) Price Stabilization
 Warehousing ensures price stabilization by supplying goods as and when demanded.
 It supplies the goods at more or less uniform prices throughout the year.
(iii) Equalization of Demand and Supply
 Warehousing equalizes the demand and supply of goods by storing the goods when they are not demanded
and releasing them when there is a demand.
 Thus the consumers get the commodities regularly even during the off-season periods.
(iv) Business Finance
Based on the goods deposited in a warehouse, the depositor can get finance from banks and other
financial institutions by showing the receipt issued by the warehouse keeper.
(v) Risk bearing
 In case of damage to the goods, warehouse keeper compensates the loss.
 Thus, warehouses bear the loss of risk involved in storage of goods.
Chapter 14
Transportation
1. Define transport.
The term ‘transport’ includes all the clerical, mental and manual occupation involved in the operation
of road, rail, canal, sea and air transport
2. State any two services rendered by transport.
a) It increases the efficiency of production
b) It helps in price stability by distributing goods all over the country.
3. Write any two advantages of water transport.
a) It is cheapest mode of transport
b) It is most suitable for heavy loads.
III. Short Answer

1. What is bill of lading?
Bill of Lading
a) Bill of Lading is a document containing the terms and conditions of the contract of carriage.
b) It is issued by the shipping company and signed by the captain of the ship.
RSN English
The (Ashwin)
main contents are:
Name of Exporter, Name of the ship, Place of loading, Particulars of goods shipped, Port of destination.
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The two types of bill of lading –
1. Clean bill of lading 2. Foul or claused bill of lading
2. What is charter party?
a) When goods are to be consigned in large quantity, it is advantageous to hire the whole or substantial part
of the ship.
b) The document through which this contract is made is known as ‘Charter Party’
c) be known as ‘Voyage Charter’ or ‘Time Charter’.
IV. Long Answer

1. Explain different types of transport.
I. Surface transport
Transport of people and goods by land vehicles is known as Surface transport. It is also called as ‘Land
Transport.
The following are the transport comes under this category
1) Pack animals 2) Bullock carts 3) Road transport 4) Motor lorries and buses
5) Railway 6) Tramways 7) Metro rail 8) Bullet train
II. Water Transport
 “Water is a free gift of nature’.
 through the development science and technology and Goods can be transported throughout the country.
Water transport are two types –
1. Inland waterways
It comprises of river and canals.
2. Ocean water or sea transport
Its includes coastal shipping, liner, tramps. Its is also known as international ocean transport.
III. Air Transport
Air transport is the fastest and the costliest mode of transport
1. Domestic/national flights 2. International flights
2. Discuss the advantages of transport.
I. Advantages of Railway Transport
1. Railways are well suited for carrying heavy and bulky goods over long distances.
2. It provide better production and safety to the goods than motor transport.
3. The goods are carried in closed wagons it protect goods from exposed to sun, rain etc.
II. Advantages of Air Transport
1. It provides a regular, convenient, efficient and quick service.
2. Perishable goods like fruits, vegetables, egg, meat, etc., can be transported quickly.
3. It does not require huge investment for construction and maintenance of track like railways.
III. Advantages of inland waterways
1. It is considered as the cheapest mode of transport among the other modes of transport.
2. It is most suitable for heavy loads.
3. There is lesser pollution in water transport.
Chapter 15
INSURANCE
1. List any five important type of policies.
1. Whole Life Policy 2. Endowment Life Assurance Policy
3. Joint Life Policy (JLP) 4. Annuity Policy
2. What is health insurance?
 Health insurance policy is a contract between an insurer and an individual or group.
 Health insurance provides risk coverage against unforeseen health expenditure and safeguard against
rising medical costs.
III. Short Answer
1. Define Insurance.
“Insurance is a plan by themselves which large number of people associate and transfer to the shoulders
of all, risk that attacks to individuals” -John Merge
2. Give the meaning of crop insurance.
a) This policy is to provide financial support to farmers in case of a crop failure due to drought or flood.
b) It generally covers all risks of loss or damages relating to production of rice, wheat, millets, oil seeds and
pulses etc.
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3. Write a note on IRDAI.
IRDAI – Insurance Regulatory Development and Authority of India is the statutory, independent and
apex body that governs, regulates and supervises the Insurance Industry in India. The headquarters is in
Hyderabad.
IRDAI is a ten member body consists of
1. One Chairman
2. Five whole-time Members
3. Four part-time Members
IV. Long Answer
1. Explain the various types of Insurance
i) Life Insurance
Life Insurance may be defined as a contract in which the insurance company called insurer undertakes
to insure the life of a person called assured in exchange of a sum of money called premium which may be paid
in one lump sum or monthly, quarterly, half yearly or yearly.
 Whole Life Policy
 Joint Life Policy (JLP)
 Annuity Policy
ii) Non – Life Insurance
It refers as the insurance not related to human but related to properties.
iii) Fire Insurance
Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to
make good any loss or damage caused by a fire during a specified period.
iv) Marine Insurance
 It is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner
and to the extent thereby agreed against marine losses.
 The insured pays the premium in consideration of the insurer’s guarantee to make good the losses arising
from marine perils or perils of the sea.
v) Health Insurance
 In mid 80’s, most of the hospitals in India were government owned and treatment was free of cost.
 Presently the health insurance exists primarily in the form of ‘Mediclaim policy’.
2. Explain the principles of insurance.
i) Utmost Good Faith
 According to this principle, both insurer and insured should enter into contract in good faith.
 Insured should provide all the information that impacts the subject matter.
ii) Insurable Interest
 The insured must have an insurable interest in the subject matter of insurance.
 Insurable interest means some pecuniary interest in the subject matter of the insurance contract.
iii) Indemnity
 Indemnity means security or compensation against loss or damages.
 This principle ensures that the insured does not make any profit out of the insurance.
iv) Causa Proxima
 The word ‘Causa proxima’ means ‘nearest cause’.
 The direct, the most dominant and most effective cause of loss should be taken into consideration.
v) Contribution
 The same subject matter may be insured with more than one insurer then it is known as ‘Double Insurance’.
 In such a case, the insurance claim to be paid to the insured must be shared on contributed by all insurers
in proportion to the sum assured by each one of them.
3. Discuss the causes of risk.
(i) Natural Causes
 Human beings have little control over natural calamities like flood, earthquake, lightning etc..
 These result in heavy loss of life, property, and income in business.
(ii) Human Causes
Human causes include such unexpected events like dishonesty, carelessness or negligence of
employees, stoppage of work due to power failure, strikes, riots, management inefficiency, etc.
(iii) Economic Causes
Financial problems like rise in interest rate for borrowing, levy of higher taxes, etc., also come under
this type of causes as they result in higher unexpected cost of operation of business.
(iv) Other Causes
These are unforeseen events like political disturbances, mechanical failures such as the bursting of
RSN English
boiler, (Ashwin)
fluctuations in exchange rates, etc. which lead to the possibility of business risks.
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Chapter 16
Emerging Service Business In India
II. Very short answer
1. Who is a franchisee?
The individual who acquires the right to operate the business or use the trademark of the seller is
known as the franchisee.
2. State two disadvantages of franchising?
Franchising fees: initial franchising fee and renewal fees will be the great deterrent to the franchisee.
Fixed royalty payment: On a regular basis the payment should be made to the franchiser, it will reduce the
income of the franchisee.
3. Who is a factor?
The factor is an agent who buys the accounts receivables (Debtors and Bills Receivables) of a firm and
provides finance to a firm to meet its working capital requirements.
4. Define outsourcing.
a) Recently a new type of business in service sector has become popular in the world.
b) It is called the Business Process Outsourcing (BPO) - the work which is routine in nature, to an outside
agency.
5. What is need for outsourcing?
1. To focus on key function 2. Benefit of specialization / efficiency
3. Cost cutting 4. Economic growth and development
6. State the importance of BPO.
1. Transferring Non Core Activities to Outsiders 2. Outsourcing Involves Contracting
3. Operational Efficiency through Outsourcing 4. Improved Customers Satisfaction
7. Write about the importance of Logistics.
a) Logistic creates visibility in a company’s supply chain
b) It can also use this information for process optimization and avoiding potential distributions.
8. What are the benefits of KPO?
1. Usage of best skills 2. Ultimate use of knowledge
3. Finding solution to complex problem 4. Reduction of expenditure
9. Define Logistics.
Logistics Management defined - ‘Design and operation of the physical, managerial, and informational
systems needed to allow goods to overcome time and space.
10. What is the need for Logistics?
a) This implies that an integrated view of a number of different activities and functions may be required.
b) These activities are represented as part of the value chain, called the generic value chain by Porter.
11. What are the types of Logistics Applications?
1. Decision-wise 2. Actor-wise
3. Inbound logistics and 4. Outbound logistics
12. What do you mean by e-commerce?
E - Commerce or Electronic Commerce is the buying and selling of goods and services through electronic
networks like internet.
III. Short answer
1. What are the types of franchising?
Product/ trade name franchising:
 In this type, the franchisee exclusively deals with a manufacture’s product.
 Examples include Kidzee, French Loaf outlets, Bharat Petroleum bunks, Patanjali products, etc.
Business format franchising:
 In this type of franchising, the franchisor awards rights covering all business aspects as a complete business
package to the franchisee.
 Examples: McDonald’s, Pizza Hut. KFC, Hot breads, Titan,
2. List the steps in factoring process.
a) Goods are sold on credit basis, an invoice is raised and a copy of the same is sent to the factor.
b) The debt amount due to the firm is transferred to the factor through assignment.
c) On the due date, the amount is collected by the factor from the customer.
3. Describe the benefits of Logistics.
1. Decrease in Costly Errors 2. Inventory Management
3. Increased Customer Service 4. Access to ream time freight data and analysis
5. Organizational control 6. Scalability and speed.
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4. Explain the points of differences between Logistics and Supply Chain Management.
Supply Chain Management Logistics Management
It deals with the identifying dynamic nature of the value It deals with the efficient management of
creation such as responsiveness, quality and design. a static gap between Demand
It focus on profit maximization. It focus on cost minimization
It is demand driven. It is supply driven
5. What is the impact of e-commerce on buyers?

 It enable the Buyers to access global information about variety of products in the market
 The price of product bought through e- commerce is lower than the conventional shop
 Individuals could sell their used products through e – commerce mode with relative ease.
IV. Long answer

1. Enumerate the characteristics of franchising.
1. Franchise means selling the same product and maintaining a similar type of shop decor , style of interior
decoration, organising, merchandising and management
2. Franchise relationship is based on an - agreement which lays down - terms and conditions of this relationship.
3. The agreement term of franchise may be for 5 years or more.
4. The franchisee should not undertake to carry any other competing business during the term of the franchise
5. The franchisee agrees to pay specified royalty to the franchiser, as per terms of the franchise agreement.
2. Elucidate the features of factoring.
1. Maintenance of book-debts
A factor is an agent - takes the responsibility of - maintaining the accounts of debtors ( debtor and bill
receivable)- of a business institution.
2. Credit coverage
a) The factor accepts the risk of burden of loss arises due to bad debts and
b) leaving the seller to concentrate on his core business.
3. Cash advances
The factor pays - around eighty percent - of the total amount of accounts receivables – as advance
cash - to the business institution..
4. Collection service
The factor provide factoring service such as -
a) Issuing reminders, b) receiving part payments, c) collection of cheques
5. Advice to clients
The factor provide advice to the business (client) - regarding the credit worthiness - of the customer
- From the past history of debtors.
3. Describe the benefits of Outsourcing.
1. Focusing on Core Activities
a) Companies can focus on their core competence activities of the business
b) The rest activities are non core activities can be outsource to outside agencies.( outsourcing BPO)
2. To Fill up Economic Development
Outsourcing stimulates –
a) Entrepreneurship, b) Encourages employment opportunities,
c) Expands exports, d) Enables tremendous growth of the economy.
3. Encourages Employment Opportunities
a) Outsourcing take up the non core activities of small business unit
b) It also provide more job opportunities and new employment avenues.
4. Reduction in Investment
a) Through outsourcing Companies avails the services of outsiders
b) It also reduces the investment requirements.
5. Quest for Excellence
Outsourcing enables the firms to pursue excellence by extending their capabilities through contracting out.
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4. Explain the points of differences between BPO and KPO.
BASIS BPO KPO
Acronym Business Process Outsourcing Knowledge Process Outsourcing
Meaning BPO re fer s to the o utsourcing of KPO is another kind of outsourcing

nonprimary activities of the organization where by, func tions rela ted to
to an external organization to minimize knowledg e a nd infor ma tion are
cost and increase efficiency. outsourced to third party service
providers.
Based on Rules Judgement
Degree of complexity Less complex High complex
Requirement Process Expertise Knowledge Expertise
Driving force Volume driven Insights driven
5. Write a note on e-commerce models.

1. Business to Business (B 2 B)
a) business concerns transact with one another through internet.
b) For instance, Snapdeal, Filipkart, Alibaba, Indamart, Trade India. Com etc.
2. Business to Customers (B 2 C)
Under this model, business concern sells directly to consumers.
3. Consumer to Consumer ( C 2 C)
a) Under this model, customers sell directly to other customers through online. Example - Kraftly App, Other
players are quirkr, Olx, ebay etc..
4. Customer to Business ( C 2 B)
Products like automobile, electronic items furniture and similar product are traded by customer through
websites. Example - Naukri.com, and Monster.com
5. Business to Government ( B 2 G)
a) This model envisages selling products and services by business consumer to Government organization.
b) For instance TCS operates the passport application process for the Government of India as part off - line
process.
CHAPTER 17
SOCIAL RESPONSIBILITY OF BUSINESS
II. VERY SHORT ANSWER QUESTIONS:
1. What do you mean by Social Responsibility?
 Every businessman earns prosperity from business and should give back the benefit of this prosperity to
society.
 It can be said to be social responsibility of business.
2. Give the meaning of Social Power?
 Businessmen have considerable social power.
 Their decisions and actions affect the lives and fortunes of the society.
 Businessmen should assume social obligations commensurate with their social power.
3. What is a free enterprise?
 A business enterprise which accepts and discharges social obligations enjoys greater freedom.
 Social responsibilities are essential for avoiding governmental action against business.
4. Who are called Stakeholders?
A business organisation is a coalition of several interest groups or stakeholders. Example – shareholders,
customers, employees, suppliers, etc.
5. What is ethical Responsibility?
 This includes the behavior of the firm that is expected by society but not codified in law.
 There is an element of voluntary action in performing this responsibility.
III. SHORT ANSWER QUESTIONS:

1. Define the Concept of Social Responsibility?
“Social Responsibility requires managers to consider whether their action is likely to promote the
public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony”.
- Peter F. Drucker
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2. Why you do think Social Responsibility of business is needed?
i) Creation of Society
 Business is a creation of society and uses the resources of society.
 It should fulfill its obligations to society.
ii) Social Power:
 Businessmen have considerable social power.
 Their decisions and actions affect the lives and fortunes of the society.
iii) Free Enterprise:
 A business enterprise which accepts and discharges social obligations enjoys greater freedom.
 Social responsibilities are essential for avoiding governmental action against business.
3. What are the benefits derived by employees of a Socially Responsible business enterprise?
 Timely and regular payment of wages and salaries.
 Proper working conditions and welfare amenities.
 Opportunity for better career prospects.
 Better living conditions like housing, transport, canteen, crèches etc.
 Timely training and development.
4. Enumerate the points relating to why business units are Socially Responsible?
 Business  Investors
 Employees  Government
 Competitors  Society
 Customers  Suppliers
5. List the kinds of Social Responsibility.
 Economic Responsibility  Legal Responsibility
 Ethical Responsibility  Discretionary Responsibility
IV. LONG ANSWER QUESTIONS

1. Explain in detail the concept and need for Social Responsibility?
Meaning:
Every businessman earns prosperity from business and should give back the benefit of this prosperity
to society.
Need for Social Responsibility:
i). Creation of Society
 Business is a creation of society and uses the resources of society.
 Therefore, it should fulfill its obligations to society.
ii). Social Power:
 Businessmen have considerable social power.
 Their decisions and actions affect the lives and fortunes of the society.
iii). Free Enterprise:
 A business enterprise which accepts and discharges social obligations enjoys greater freedom.
 Social responsibilities are essential for avoiding governmental action against business.
iv). Image in the Society
 A business can improve its image in public by assuming social obligations.
 Good relations with workers, consumers and suppliers help in the success of business.
v). Law and Order
 Any business unit can survive and grow only when there is law and order in society.
 If business exploits the weaker sections of society for too long, these sections will take the law in their
own hands.
2. Illustrate with examples the arguments for Social Responsibility?
i) Protection of Stakeholders Interest
A business organisation is a coalition of several interest groups or stakeholders. Ex – shareholders,
customers, employees, suppliers, etc.
ii) Promotion of Society
 Business is a sub-system of society.
 It draws support and sustenance from society in the form of inputs.
 Socially responsible behavior is essential to sustain this relationship between business and society.
iii) Assessment of Social Impact
 During the course of its functioning, a business enterprise makes several decisions and actions.
 Its activities exercise a strong influence on the interests and values of society.
iv) Organized Social Power
 Large corporations have acquired tremendous social power through their multifarious operations.
 Social power may be misused in the absence of social responsibility.
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v) Public Opinion
 Adoption of social responsibility as an objective will help to improve the public opinion of business.
 A good public image is a valuable asset for business. For example maintaining parks, traffic islands and
organizing awareness camps etc.,
3. What are the arguments against Social Responsibility?
i) Dilution of Economic Goals
By accepting social responsibility, business will compromise with economic goals.
Business is an economic institution and its only responsibility is to make maximum possible profits for its
owners.
ii) Lack of Social Skill
Business organizations and their managers are not familiar with social affairs.
There are special social service organizations such as Government and Non-Governmental
iii) Burden on Consumers
If business deals with social problems, cost of doing business would increase.
These costs will be passed on to consumers in the form of higher prices.
iv) Responsibility without Power
Business organizations possess only economic power and not social power.
If business is allowed to intervene in social affairs it may perpetuate its own value system.
v) Misuse of Responsibilities
Acceptance of social responsibilities will involve diversion of precious managerial time and talent on social
action programmes.
It may result in dilution of valuable corporate resources.
4. Discuss the different groups benefited out of Social Responsibility of business?
i) Responsibility towards Owners
 Run the business efficiently.
 Growth and appreciation of capital.
 Regular and fair return on capital invested.
ii) Responsibility towards Investors
 Ensuring safety of their investment,
 Regular payment of interest,
 Timely repayment of principal amount.
iii) Responsibility towards Employees
 Timely and regular payment of wages and salaries.
 Opportunity for better career prospects.
 Timely training and development.
iv) Responsibility towards Suppliers
 Availing reasonable credit period.
 Timely payment of dues.
v) Responsibility towards Customers
 Products and services must be able to take care of the needs of the customers.
 Products and services must be qualitative
 There must be regularity in supply of goods and services
5. How do you classify Social Responsibility?
i) Economic Responsibility
 A business enterprise is basically an economic entity.
 Its primary social responsibility is economic produce goods and services.
 There is little discretion in performing this responsibility.
ii) Legal Responsibility
 Every business has a responsibility to operate within the laws of the land.
 Since these laws are meant for the good of the society, a law abiding enterprise is a socially responsible
enterprise as well.
iii) Ethical Responsibility
 This includes the behavior of the firm that is expected by society but not codified in law.
 There is an element of voluntary action in performing this responsibility.
iv) Discretionary Responsibility
 This refers to purely voluntary obligation that an enterprise assumes, for instance, providing charitable
contributions to educational institutions.
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CHAPTER 18
BUSINESS ETHICS AND CORPORATE GOVERNANCE
II. VERY SHORT ANSNWER QUESTIONS:
1. What is ethics?
 Business ethics may be defined as a set of moral standards to be followed by owners, managers and
business people.
 These standards determine the conduct and behavior of business people.
2. What do you mean by code?

The organisation principles are defined in the written document called code.
3. State two ways by which ethics influences behavior?
 To offer goods at fair prices.
 To pay taxes regularly.
4. What is need for Corporate Governance?

 Balanced economic development is made possible through transparent management under corporate
governance.
 All Stakeholders interests are protected and promoted through corporate governance.
5. What are MNCs?

 A Multinational corporation is an organization doing business in more than one country.
 It engages in various activities like exporting, manufacturing in different countries.
III. SHORT ANSWER QUESTIONS

1. Define business ethics.
 ‘A business that is in the making of only money is a poor kind of business.’ - Hendry Ford,
 According to Andrew Crane, “Business ethics is the study of business situations, activities, and decisions
where issues of right and wrong are addressed.”
2. What do you mean by the concept of business ethics?
 It is a set of moral standards to be followed by owners, managers and business people.
 These standards determine the conduct and behavior of business people.
 Business ethics reflects the conduct in the context of business.
3. Why is ethics necessary in business?

 Ethical standards are often enacted into laws.
 Ethics and profits go together in the long run.
 It enhances the quality of life, standard of living and business.
4. What are the benefits of Corporate Governance to Share Holders?

 Ensures stable growth of organizations.
 Reduces the cost of capital for companies.
 Improves the image of the company.
5. Illustrate with example the working of a MNC

A India ranks 10th in the world in factory output
A The manufacturing sector accounts for 27.6% GDP.
A Ex: IBM, Microsoft, Pepsi Co, Sony, Vodafone, Reebok, Nokia.
IV. LONG ANSWER QUESTIONS:

1. Explain the different key elements of business ethics.
i) Top Management Commitment
 It has a very important role to guide the entire organization towards ethical behavior.
 The top level personnel in any organisation should work openly and strongly.
ii) Publication of a “Code”
 Generally organisations formulate their own ethical codes for the conduct of the enterprise;
 The organisation principles are defined in the written document called code.
iii) Establishment of Compliance Mechanism
 To make sure that actual decisions match with a firm’s ethical standards, suitable mechanism should be
established.
iv) Involving Employees at All Levels
 It is the employees at different levels who implement ethics policies to make ethical business a reality.
 Their involvement in ethics programmes becomes a must.
v) Measuring Results
 The organizations from time to time keep a check on ethical practice followed.
RSN
 English
Although(Ashwin)
it is difficult to accurately measure the end results of ethics programmes.
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2. Describe the code of business ethics.
Meaning:
Code of ethics documents the generally accepted principles of ethical conduct.
 It gives a clear picture of the standards that employees should follow.
 It guides them in decision making.
The code of business ethics can include the following:
 To offer goods at fair prices.
 To pay fair wages to its employees and not to exploit them.
 To provide congenial work atmosphere.
 To keep proper books of accounts and records.
 To pay taxes regularly.
3. Explain the significance of Corporate Governance from the point of Stakeholders
 Good corporate governance enables corporate success and economic development.
 Ensures stable growth of organizations.
 Aligns the interests of various stakeholders.
 Improves investors’ confidence and enables raising of capital.
 Reduces the cost of capital for companies.
 Improves the image of the company.
 Has a positive impact on the share price
 Provides incentive to managers to achieve organizational objectives.
4. Discuss the role of International Benchmarking on the working of Companies in India
i) ASIA:
 Independent Directors are a requirement for listed companies in all Asian economies.
 The 2012 Singapore corporate governance code recommends a majority of Independent Directors.
 In China, the Audit Committee is to be composed of Independent Directors only.
ii) USA
 The Council of Institutional Investors, Corporate Governance Policies state that at least 2/3rd of the
directors should be independent.
 The Nominating and Corporate Governance Committee is one of the three standing committees, along with
Audit Committee and Compensation Committee,.
 Audit Committee,
 Advisory Committee,
 Nomination and Remuneration Committee,
 Stakeholder Relationship Committee
iii) JAPAN
In early 2014, Japanese Prime Minister announced the goal of increasing the percentage of women in
executive positions at Japanese companies to 30% by 2020.
iv) The UK
UK businesses had voluntary targets first set in 2011(i.e) to have 25% women on FTSE100 Boards by 2015
5. Describe the benefits of increasing the number of MNCs.HICS AND
I. Low Cost Labour
 MNC set up their facilities in low cost countries and produce goods/service at lower cost.
 It gains cost advantage and sells its products and services of good quality at low cost.
II. Quality Products
 MNCs establish its research and development system which helps it in producing quality goods and services
at least possible cost.
III. Proper Use of Idle Resources
 MNCs are in a position to properly utilise idle physical and human resources of the host country.
 This results in an increase in the National Income of the host country.
IV. Improvement in Balance of Payment Position
 MNCs help the host countries to increase their exports. As such, they help the host country to improve
upon its Balance of Payment position
V. Technical Development
 MNCs carry the advantages of technical development to host countries.
 Transference of technical development MNCs poor host countries also begin to develop technically.
CHAPTER 19
SOURCES OF BUSINESS FINANCE
1. Write a short note on debentures.
 Debentures are an important instrument for raising long term debt capital.
 The individual or person subscribing to debentures is called debenture holder.
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2. What do you mean by public deposits?
 The companies invite public deposits by giving advertisement in the media.
 It offers deposit schemes for a longer tenure.
3. Name any two sources of funds classified under borrowed funds.
 Borrowed Funds  Debentures
 Loan from Banks and Financial Institutions  Public Deposits  Lease Financing
4. Name any two internal sources of business finance.
 Retained earnings,  Trade Debtors
 Bills Receivable,  Surplus from disposal of old assets
5. State any two factors that affect the choice of source of finance.
Cost, Risk Factor, Control, Storage of Development
1. Define Business finance.
“The finance function is the process of acquiring and utilizing funds by a business.” – R.C. Osborn
2. What is pledge?
 A customer transfers the possession of an article with the creditor (banker) and receives loan.
 Till the repayment of loan, the article is under the custody of the borrower.
 If the debtor fails to refund the loan, creditor (banker) will auction the article pawned and adjust the
outstanding loan from the sale proceeds.
3. List sources of raising long-term and short-term finance.
Long Term Finance Short Term Finance
i) Shares i) Loans and Advances
ii) Debentures ii) Bank Overdraft
iii) Public Deposits iii) Trade Credit
iv) Long term loan from commercial banks iv) Pledge
4. For which purpose fixed capital is needed in business?
 For the acquisition of fixed assets such as land, building, plant and machinery , motor vehicles, furniture
and fixtures, etc.
 For the acquisition of intangible assets such as goodwill, patents, trademarks, and copy rights.
 For meeting promotion or preliminary expenses.
5. What do you mean by working capital requirement of business?
 Short term finance usually refers to finance required by a firm for a period of one year.
 It is also called as working capital finance.
 It is required for investments in working capital or current assets like cash and bank balance, accounts
receivables and etc.
1. List out the various sources of financing.
The various sources of business finance can be classified into three categories on the basis of
i) Period Basis ii) Ownership Basis iii) Source of Generation Basis
A) On the basis of Period:
i) Short term finance ii) Medium term finance iii) Long term finance
i) Short Term Finance:
i) Loans and Advances ii) Bank Overdraft iii) Trade Credit iv) Pledge
v) Discounting Bills of Exchange vi) Hypothecation vii) Commercial Paper
ii) Medium Term Finance:
i) Loan from Banks ii) Loan from Financial institutions iii) Lease Financing
iii) Long Term Finance:
i) Shares ii) Debentures iii) Retained Earnings
iv) Public Deposits v) Long term loan from commercial banks
B) On the Basis of Ownership
i) Owners Fund ii) Borrower Funds
i) Owners Fund
i) Equity Shares ii) Retained Earnings
ii) Borrower Funds:
i) Loan from banks ii) Loan from financial institution iii) Debentures
iv) Public Deposits v) Lease Financing
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C) On the Basis of Generation of Funds
i) Internal Source ii) External Source
2. What are the different types of short term finances given by commercial banks?
i) Bank Overdraft
 It refers to an arrangement whereby the bank allows the customers.
 To overdraw the required amount from its current deposit account within a specified limit.
 Interest is charged only on the amount actually overdrawn.
ii) Trade Credit
 Purchaser need not pay money immediately after the purchase.
 Such credit appears in balance sheet as Trade Creditors, or Accounts Payable.
iii) Mortgage
 This is a type of loan taken from the bank by lodging with the banker title deeds of immovable assets like
land and building.
 Business people raise loans by depositing the title deeds of the properties with the bank.
iv) Loans against the Securities
 Banks accept various types of securities like fixed deposit receipt, book debts, insurance policies, supply
bills, shares, debentures, bonds of company, document of title to the goods and so on.
 It provides loan on the basis of the aforesaid securities.
v) Clean Loan
 Banks provide clean loan is loan given without any security or with personal security.
 It simply grants loan without any physical security.
3. Write short notes on a).Retained Earnings b). Lease financing
a) Retained Earnings:
Retained earnings refer to the process of retaining a part of net profit year after year and reinvesting them in the
business.
It is described to be the most convenient and economical method of finance.
b) Lease Financing:
Lease financing denotes procurement of assets through lease.
Leasing here refers to the owning of an asset by any individual which will be given for use to another needy
business enterprise on a rental basis.
4. Write short notes on a) owner’s funds b) borrowed funds
a) owner’s funds
 The profits reinvested in the business come under owner’s funds.
 Owner’s funds mean funds which are provided by the owner of the enterprises who may be an individual, or
partners or shareholders of a company.
 These funds are not required to be refunded during the life time of business enterprise.
b) borrowed funds
 The term ‘borrowed funds’ denotes the funds raised through loans or borrowings.
 These borrowed sources of funds provide specific period before which the fund is to be returned.
 Borrower is under legal obligation to pay interest at given rate at regular intervals to the lender.
5. Explain any four personal investment avenues.
i) Public Provident Fund (PPF)
 It is the safest long-term investment option for the investors in India.
 It is totally tax free.
 PPF account can be opened in bank or post office.
ii) Mutual Funds
 An individual investor who wants to invest in equities and bond.
 Nowadays people invest in stock markets through a mutual fund.
 Systematic investment plan is one of the best investment options in India.
iii) Real Estate Investment
 Real estate is one of the fastest growing sectors in India.
 Buying a flat or plot is supposed to be the best decision amongst the investment options.
iv). Unit Linked Insurance Plans (ULIP)
 ULIP is a life insurance linked product, which provides risk cover for the policy holder along with investment
options.
 To invest in any number of qualified investments such as stocks, bonds or mutual funds.
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CHAPTER 20
INTERNATIONAL FINANCE
1) Who are Foreign Institutional Investors?
FDI is an investment made by a company or an individual in one country with business interests in
another country.
2) What is a Depository Receipt?
A depository receipt is a negotiable financial instrument issued by a bank to represent a foreign
company’s equity shares or securities.
3) What is a GDR (Global Depository Receipt)?
GDR is an instrument issued abroad by a company to raise funds in some foreign currencies and is
listed and traded on a foreign stock exchange.
4) What is an American Depositary Receipt (ADR)?
ADR is a dollar denominated negotiable certificate representing a non-US company in US market
which allows the US citizens to invest in overseas securities.
5) What is a Foreign Currency Convertible Bond?
Foreign currency convertible bond is a special type of bond issued in the currency other than the home
currency.
1. Explain the importance of international finance.
 It helps in comparing the inflation rates and getting an idea about investing in international debt
securities.
 It helps in ascertaining the economic status of the various countries and in judging the foreign market.
 It helps in understanding the basics of international organisations and maintaining the balance among
them.
2. What are Foreign Currency Convertible Bonds?
 Foreign currency convertible bond is a special type of bond issued in the currency other than the home
currency.
 Companies issue foreign currency convertible bonds to raise money in foreign currency.
3. Explain any three disadvantages of FDI
i) Exploiting Natural Resources:
 The FDI Companies deplete natural resources like water, forest, mines etc.
 As a result such resources are not available for the usage of common man in the host country.
ii) Heavy Outflow of capital
 Foreign companies are said to take away huge funds in the form of dividend, royalty fees etc.
 This causes a huge outflow of capital from the host country.
iii) Exploiting Cheap Labour
 Foreign enterprises employ cheap labour force at a lower pay in developing countries.
 They do not employ local people for higher posts in the management.
4. State any three features of ADR.
 ADRs are denominated only in US dollars.
 They are issued only to investors who are American residents.
 The depository bank should be located in US.
5. State any three features of GDR.
 It is a negotiable instrument and can be traded freely like any other security.
 GDRs are issued to investors across the country.
 It is denominated in any acceptable freely convertible currency.
1. Describe the importance of international finance?
 It helps in comparing the inflation rates and getting an idea about investing in international debt securities.
 It helps in ascertaining the economic status of the various countries and in judging the foreign market.
 International Financial Reporting System facilitates comparison of financial statements made by various
countries.
 It helps in understanding the basics of international organisations and maintaining the balance among
them.
 International finance organisations such as IMF, World Bank etc. mediate and resolve financial disputes
among member nations.
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2. Distinguish between GDR and ADR.
Basis Global Depositary Receipts American Depositary Receipts
Denomination It is denominated in terms of any It is denominated only in US dollars.
freely convertible currency.
To whom it is It is issued to investors in one or It is issued only to investors, who are
Issued across more markets simultaneously residents of the United States of
America.
Listed in Non-US Stock Exchange American stock exchange
Approval Issue of GDR does not require Issue of ADR requires approval from
foreign regulatory clearances. the Securities Exchange Commission
of United States of America.
Negotiation It is negotiable all over the World. It is negotiable only in America
3. State any five features of FCCB.

 FCCB is issued by an Indian company in foreign currency.
 These are listed and traded in foreign stock exchange and similar to the debenture.
 It is a convertible debt instrument. It carries interest coupon. It is unsecured.
 It gives its holders the right to convert for a fixed numbers of shares at a predetermined price.
 It can be converted into equity or depository receipt after a certain period.
 The amount received from the issue of FCCB should be utilised as per the guidelines of External Commercial
Borrowing (ECB)
4. Explain any five advantages of FDI.
i) Achieving Higher Growth in National Income:
Developing countries get much needed capital through FDI to achieve higher rate of growth in national
income.
ii) Help in Addressing BOP Crisis:
 FDI provides inflow of foreign exchange resources into a country.
 This helps the country to solve adverse balance of payment position.
iii) Faster Economic Development
 FDI brings technology, management and marketing skills along with it.
 These are crucial for achieving faster economic development of developing countries.
iv) Generating Employment Opportunities
 FDI generates a lot of employment opportunities in developing countries, especially in high skill areas.
v) Encouraging Competition in Host Countries
 Entry of FDI into developing country promotes healthy competition therein.
 This leads to enterprise in developing countries operating efficiently and effectively in the market.
CHAPTER- 21
MICRO, SMALL AND MEDIUM ENTERPRISES AND SELF HELP GROUPS
1. What do you understand by the manufacturing enterprises?
They refer to the enterprises engaged in the manufacturing or production of goods pertaining to any
industry specified in the first schedule to the Industries Development and Regulation Act, 1951.
2. Give some examples for micro enterprises.
Clay Pot Making, Fruits and Vegetable Vendors, Repair Shops, Cottage Industries and Small Industries.
3. What is the aim of NEEDS?
 To providing entrepreneurship development training to educated young entrepreneurs.
 Helping them to tie up with financial institutions to set up new business ventures,
4. What is a Self Help Group?
 Self Help Group is a small informal voluntary association.
 It’s created for the purpose of enabling members to reap economic benefit out of mutual help, solidarity,
and joint responsibility.
5. State the investment limit for small enterprise in manufacturing and service sector.
 Manufacturing sector - More than Rs.25 lakhs but not exceeding Rs.5 Crores in small enterprises
 Servicing Sector - More than Rs.10 lakhs but not exceeding Rs.2 Crores in small enterprises.

1. State the investment limit for medium enterprise engaged in Manufacturing and service sector.
 Manufacturing sector - More than Rs.5 Crores but not exceeding Rs.10 Crores in medium enterprises.
 Servicing Sector - More than Rs.2 Crores but not exceeding Rs.5 Crores in medium enterprises
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2. List out the products produced by MSME in Tamil Nadu?
Textiles, Leather Products, Chemicals, Plastics, Garments and Jewellery
3. What is the role and significance of MSMEs in Indian Economy?
 Employment Potential  Low Production Cost  Low Investment
 Quick Decision Making  Supplementary Role
4. Explain any three features of Self Help Group.
 The motto of every group members should be “saving first – credit latter”
 The groups need not be registered.
 Each group should have only one member from one single family.
 A group is to be formed with only men or only with women.
5. What are the different ways in which banks fund Self Help Groups?
 Banks lend directly to the SHGs.
 Banks provide loans to the NGOs for onward lending to the SHGs and ultimately to micro entrepreneurs.
 Banks extend credit to the SHGs with the NGOs serving as facilitators

1. What is the definition of MSME?
In India MSMED Act 2006 was established for developing and enhancing the competitiveness of Micro,
Small and Medium enterprises in India, small business is defined on the basis of investments in plant and
machinery.
a) Classification of Manufacturing Enterprises:
i) Micro Enterprises:
If the investment in plant and machinery does not Rs. 25 lakhs.
ii) Small Enterprises
If investment in Plant and Machinery is more than Rs. 25 lakhs but not exceed Rs. 5 crores.
iii) Medium Enterprises:
If investment in Plant and Machinery is more than Rs. 5 crores but not exceed Rs. 10 crores.
b) Classification of Service Enterprises:
i) Micro Enterprises: If the investment in equipment does not Rs. 10 lakhs.
ii) Small Enterprises: If investment in equipment is more than Rs. 10 lakhs but not exceed Rs. 2 crores.
iii) Medium Enterprises: If investment in equipment is more than Rs.2 crores but not exceed Rs. 5 crores.
2. Explain the advantages of MSMEs?
i) Employment Potential
 MSMEs generate more employment opportunities than large business concerns.
 They are mostly labour intensive, thus they provide more employment opportunities to a larger number of
people in India.
ii) Low Production Cost
 MSMEs do not require skilled labourers or professionals to run the organisation.
 These units are more cost efficient than large scale units, thus facilitates production of goods at low cost.
iii) Low Investment
 MSMEs do not require a huge capital to start the unit.
 It can employ locally available resources within the reach of the owner.
iv) Quick Decision Making
 MSMEs need not hire professional managers to run the management on a day to day basis.
 In most cases, owner himself manages the enterprises.
 Hence, timely decision making becomes easy and effective.
v) Supplementary Role
 MSMEs play a complementary role to serve as a feeder to large scale industries.
 They supply accessories, spare parts and components to large scale industries.
3. What are the objectives of SHGs?
 Focusing on empowerment of women.
 Saving people from the clutches of money lenders
 Building capacity of women and to enable them to participate in generating activities.
 Promoting entrepreneurship skills among women.
 Elevating the economic standard of the member’s families.
 Creating the habit of saving in the minds of the people who are economically backward.
 Creating awareness about the importance of credit circle and the payment of the circle.
 Developing skills and facilitating credit linkages for eventual economic empowerment.
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CHAPTER 22
TYPES OF TRADE
1. Give the meaning of Trade?
 The buying and selling of goods and services consists of trade.
 Trade acts as an intermediary in the exchange of commodities between the producer and consumer.
2. What is Internal Trade?
Buying and selling of goods and services within the boundaries of a nation are called internal trade.
3. Mr. Vikram who runs a textile industry regularly procures cotton from Germany. Name the type of
trade he is engaged in.
This is example for Import Trade.
4. When Vikram of India sells cotton shirts to Amal of England, what type of Trade he is engaged in?
This is example for Export Trade
5. How do you classify Trade?
 Internal trade  External trade
6. What are the classifications of internal trade?
 Wholesale Trade  Retail Trade
7. What is import trade?
Import trade means buying goods from a foreign country for domestic use. Example: India imports
petroleum products from Gulf Countries.
8. Explain the meaning of Entrepot trade.
 Export trade means the sale of domestic goods to foreign countries.
 Examples: i). Export of Iron ore from India to Japan ii). Selling of Tea from India to England.
9. TVS is selling motor bikes in Europe. Under which type of trade can this be classified?
This is a Multinational Trade
10. What is the currency used in India in internal trade?
In India the currency used for Indian Rupees.

1. What is the classification of foreign trade?
i) Import Trade: Import trade means buying goods from a foreign country for domestic use.
ii) Export Trade: Export trade means the sale of domestic goods to foreign countries.
iii) Entrepot Trade:
Entrepot trade means importing of goods from one country and exporting the same to foreign countries.
It is also known as ‘Re-export trade’.
2. Give two examples of Entrepot trade.
 Indian diamond merchants in Surat import uncut raw diamonds from South Africa. They cut and polish the
diamonds in their units in India and re-export them to the International Diamond Market in Amsterdam.
 Singapore, Dubai, Hongkong are the largest Entrepot trade centers in the world.
3. What do you mean by Export trade?
 Export trade means the sale of domestic goods to foreign countries.
 Examples: Export of Iron ore from India to Japan, Selling of Tea from India to England.
 Export trade is necessary to sell domestic surplus goods, to make better utilization of resources.
 To earn foreign exchange, to increase national income.
4. What is Wholesale trade?
“Purchase of goods in bulk from the manufacturers and selling them in smaller quantities to other
intermediaries” is known wholesale trade.
5. State the meaning of Retail trade?
Retail trade deals with the distribution of goods in small quantities to the consumers.
6. Name any three retail traders in your locality?
 Saravana medical Centers, Dindigul
 Udhayam Super Market, Dindigul
 Sangeetha Mobile Store, Dinndigul
7. State the main aim of trade?
 The buying and selling of goods and services consists of trade.
 The essence of trade is to make goods and services available to those persons who need them and are able
and willing to pay for them.
 Trade acts as an intermediary in the exchange of commodities between the producer and consumer.
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1. What are the features of Internal trade?
 The buying and selling of goods takes place within the boundaries of the same country.
 Payment for goods and services is made in the currency of the home country.
 It involves transactions between the producers, consumers and the middlemen.
 In home trade the laws prevailing in that country only have to be followed.
 The goods must be a part of domestic production.
 In home trade the risk of transportation is very less when compared to the foreign trade.
 The aim of home trade is to provide the goods and services economically.
 It does not involve any custom/import duty, but buyers need to pay the taxes to the Government.
2. Explain briefly the different types of Foreign trade?
i) Import Trade:
Import trade means buying goods from a foreign country for domestic use. Ex. India imports petroleum products
from Gulf Countries.
ii) Export Trade:
Export trade means the sale of domestic goods to foreign countries.
Ex: i) Export of Iron ore from India to Japan
ii) Selling of Tea from India to England. iii) Entrepot Trade:
Entrepot trade means importing of goods from one country and exporting the same to foreign countries. It is
also known as ‘Re-export trade’. Ex. Indian diamond merchants in Surat import uncut raw diamonds from
South Africa.
CHAPTER 23
CHANNELS OF DISTRIBUTION
1. Who is a middleman?
The term ‘Middlemen’ refers to all those who are in the link between the primary producer and the
ultimate consumer in the exchange of goods or service.
2. Define Wholesaler.
“A true wholesaler is himself neither a manufacturer nor a retailer but act as a link between the
two”. – Evelyn Thomas
3. Define Retailer.
The retailer is the last of the many links in the economic chain whereby the consumer’s wants are
satisfied smoothly and efficiently by retailers. - S. Evelyn Thomas
4. Who is a brok er?
 A Broker is one who bargains for another and receives commission for his service.
 He is paid ‘brokerage’ for his services.
5. What are the classifications of the merchant middlemen?
Brokers, Factors, Commission Agents, Del- Credere Agents, Auctioneers, Warehouse keepers.
6. Who are the mercantile agents?
Mercantile Agents are also called functional middlemen.
A businessman appoints a person to buy and sell goods on his behalf and gives him the right to borrow money on
the security of goods. He is known as mercantile agent.

1. What do you understand by channels of distribution?
 A channel is the route through which the goods are passed on to the ultimate consumer.
 There are direct channels of distribution without middlemen.
 Middlemen help in the flow of goods towards the crores of consumers.
2. Who is a factor?
 A factor is a mercantile agent to whom goods are entrusted for sale by a principal.
 He takes physical possession of the goods, though he does not obtain ownership of the goods.
 A factor sells goods in his own name without revealing the name of his principal.
 He is liable for his action.
3. Explain the types of mercantile agents.
i) Broker:
A Broker is one who bargains for another and receives commission for his service. He is paid ‘brokerage’
for his services.
ii) Factor:
A factor is a mercantile agent to whom goods are entrusted for sale by a principal.
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iii) Commission Agents:
A commission agent buys and sells goods on behalf of the principal for a fixed rate of commission for
all his transactions.
4. Explain any three characteristics of wholesalers.
 Wholesalers buy goods directly from producers or manufacturers,
 Wholesalers buy goods in large quantities and sell in relatively smaller quantities,
 They need large amount of capital to be invested in his business,
 They generally provide credit facility to retailers,
5. What are the services rendered by the wholesalers to the manufacturers?
i) Economies in Large Scale:
 A wholesaler buys goods in bulk and, thereby, enables the producers to produce goods on a large scale
 Large scale production helps to reduce the cost of production per unit.
ii) Assistance in Distribution:
 Wholesalers collect orders from a large number of retailers scattered over a wide area and buy goods in bulk
from producers.
 He enables producers to reach customers scattered over different parts of the country by distributing goods
through retailers located in different areas.
iii) Warehousing Facility:
 A wholesaler holds large stock of goods in his private warehouse or in a rented warehouse.
 In this way he relieves the manufacturer from the function of warehousing.
1. What are the characteristics of retailers?
 A retailer has indirect relation with the manufacturer but a direct link with the consumers.
 A retailer is the link between a wholesaler and the ultimate consumer and he is the last intermediary in
distribution.
 A retailer buys goods from wholesaler in bulk and resells them to consumers in small quantities.
 A retailer maintains a personal contact with his customers.
 Retailer generally involves dealing in a variety of items.
 Generally, retailers involve buying on credit from wholesalers and selling for cash to consumers.
 A retailer makes sufficient shop display of his wares to attract customers.
 Retailers aim at providing maximum satisfaction to their customers in limited area.
2. What are the functions of Wholesalers?
a. Collection of Goods:
 Wholesaler collects the goods from manufacturers or producers in bulk.
b. Storage of Goods:
 Wholesaler collects and stores them safely in warehouses, till they are sold out.
 Perishable goods like fruits, vegetables, etc. are stored in cold storage facility.
c. Distribution:
 Wholesaler sells goods to different retailers. Thus he performs the function of distribution.
d. Financing:
 Wholesalers provide financial support to producers and manufacturers by providing money in advance to
them.
 He also sells goods to retailer on credit.
e. Risk Taking:
 Wholesaler buys finished goods from the producer and keeps them in the warehouses till the time.
 They are sold and assumes the risk arising from price, spoilage of goods, and changes in demand.
3. What are functions of Retailers?
i) Buying:
 A retailer buys a wide variety of goods from different wholesalers after estimating customer’s demand.
 He selects the best merchandise from each wholesaler and brings all the goods under one roof.
ii) Storage:
 A retailer maintains a ready stock of goods and displays them in the shop.
iii) Selling:
 The retailer sells the goods in small quantities according to the demand taste and preference of consumers.
 He employs efficient methods of selling to increase his sales turnover.
iv) Grading and Packing:
 The retailer grades the goods which are not graded by manufacturers and wholesalers.
 He packs goods in small lots for the convenience of consumers
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v) Risk-bearing:
A retailer always keeps stock of goods in anticipation of demand and bears the risk of loss due to fire,
theft, spoilage, price fluctuations, etc.
4. Explain the services rendered by wholesalers to retailers.
i) Financial Assistance:
 Wholesalers provide financial assistance to retailers by selling goods on credit.
 This is done by allowing credit to retailers purchasing goods from them
ii) Meeting the Requirements:
 Due to limited capital and lack of space in his facility a retailer cannot hold large variety of products.
 The wholesaler removes this difficulty by selling goods as and when the retailer requires.
iii) Introduction of New Products:
 Wholesalers bring new products and their uses to the notice of retailers.
 Thus retailers get knowledge about innovated products and innovated features.
iv) Price Stability:
Wholesalers reduce price fluctuations by adjusting supply and demand and save the retailers from
loss arising from price fluctuations.
v) Economy in Transport:
Wholesaler often delivers goods at the door steps of retailers and save their time and cost of
transport.
5. What are the services rendered by retailers to wholesalers?
i) Help in Distribution:
Retailers relieve the manufacturers and wholesalers of the burden of collecting and executing a large
number of small orders from various consumers.
ii) Market Information:
Retailer supply valuable information to wholesalers about changes in tastes, preferences, fashion
etc. of consumers.
iii) Large Scale Operation
The manufacturers and wholesalers are freed from the trouble of making individual sales to consumers
in small quantities.
iv) Help in Promotion
Retailers participate in the promotional activities carried by manufacturers and wholesalers such as
short time offers, coupons, free gifts, sales contests, etc.
v) Personal Attention:
The retailer is able to provide more personal attention to his customers than the wholesaler is, He
gives special services on the spot when the articles require minor repairs.
6. Explain the services rendered to consumers by Retailers.
i) Regular Supply of Goods:
 Retailers maintain a ready stock of various products of different manufacturers for sale to consumers.
 This enables the buyers to buy products as and when needed.
ii) New Products Information:
 The retailers provide important information about the new arrival of products through their personal.
 Selling efforts and effective display of products.
iii) Credit Facilities:
 Sometimes retailers provide credit facilities to their customers.
 It enable them to increase their level of consumption.
iv) Wide Selection:
 Retailers generally keep stock of a variety of products of different manufacturers.
 This enables the consumers to make their choice out of a wide selection of goods.
v) Miscellaneous Services
 Retailers provide free door delivery services to the customers.
 They allow cash discounts on their sales.
7. What are the factors affecting a channel of distribution?
i) Market Characteristics
The size of the market for the goods is a major factor while selecting the route for distribution of
products.
ii) Number of Consumers
 Large purchases made by few consumers require centralized distribution.
 Large number of consumers making purchases in small quantities requires more middlemen.
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iii) Cost and Time Involved in the Channel of Distribution
 The channel cost should go along with the quality of service provided by middlemen.
 Ordinary goods are routed through economical channel even though the time taken by the channel for
delivery is more.
iv) Services Required along with the Product
 Machinery or equipment which need to be installed and demonstrated should be sold with shorter
channel.
 Technical services can be provided by manufacturers or by their trained technicians.
v) Life Cycle of the Product
 An established product can select an ordinary channel.
 But a new product entering into the market should be carefully promoted by experience middlemen.
CHAPTER 24
RETAILING
II. VERY SHORT ANSWER QUESTIONS
1. What is Retailing?
Retailing is the process of selling the goods and services directly to the ultimate consumers in small
quantities.
2. State the meaning of multiple shops.
A number of identical retail shops with similar appearance normally deal in standardized and branded
consumer products established in different localities owned and operated by manufacturers are called as
Multiple Shops.
3. Mention any two benefits of Vending Machines.
 Automatic vending machine is a new form of direct selling. It is a machine operated by coins or tokens
 Its are placed at a convenient location such as railway stations, airports, petrol pumps, etc.
4. What are specialty stores?
Speciality Stores deal in a particular type of product under one product line only.

1. Explain the features of general stores.
 General Stores sell a wide variety of products under one roof, most commonly found in a local market.
 Residential areas to satisfy the day-to-day needs of the customers residing in nearby localities.
 Its provide credit facilities to their regular customers.
 For example, a provision store deals in grocery, bread, butter, toothpaste, soaps, washing powder, soft
drinks, confectionery, stationery, cosmetics, etc.
2. Give any four points of distinction between Hire Purchase System and Installment System of selling.
Sl.No Basis Hire Purchase System Installment System
1 Contract of Sale It is not a contract of sale It is a contract of sale
2 Transfer of Ownership passes to the buyer only after Ownership passes o the buyer as
ownership the final installment has been paid. soon as he has paid the first
installment.
3 Rights of buyer The buyer cannot hire, sell or pledge the The buyer can do anything with
articles bought. the article.
3. Explain the characteristics of super markets.

 Supermarkets are generally situated at the main shopping centers.
 The goods are sold on cash basis only. No credit facilities are made available.
 Supermarkets are organized on departmental basis.
4. What is meant by ‘Mail Order Retailing’?
 Mail order houses are the retail outlets that sell their merchandise through mail.
 There is generally no direct personal contact between the buyers and the sellers in this type of trading.
1. State the features of Departmental stores.
i) Large Size:
A department is a large scale retail showroom requiring a large capital investment by forming a joint
stock company managed by a board of directors.
ii) Wide Choice:
 It acts as a universal provider of a wide range of products from Pin to Car.
 To satisfy all the expected human needs under one roof
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iii) Departmentally organized
 Goods offered for sale are classified into various departments.
 Each department specializes in one line of product and operates as a separate unit.
iv) Facilities provided:
 It provides a number of facilities and services to the customers.
 Such as restaurant, rest rooms, recreation, packing, frees home delivery, parking, etc.
v) Centralized purchasing
 All the purchases are made centrally and directly from the manufacturers.
 It operates separate warehouses whereas sales are decentralized in different departments.
2. What is meant by Consumer Cooperative Store? Explain its merits in brief.
Meaning:
A consumer’s cooperative store is a retail organisation owned, managed and controlled by the consumers
themselves to obtain products of daily use at reasonable low prices.
Merits:
 The capital of a cooperative store is raised by issuing shares to members.
 The management of the store is democratic and entrusted to an elected managing committee, where one
man one vote is the rule.
 The cooperative stores are very famous in Tamilnadu.
For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.
3. Describe the role of chambers of commerce in promotion of internal trade.
Meaning
The Chamber of Commerce and Industry is an association of business and industrial houses like
merchants, financiers, manufacturers, etc. in a locality, region, or state.
 Association or Champers in India
 Confederation of Indian Industry (CII)
 Madras Chamber of Commerce, Chennai.
 Tamil Nadu Traders Associations.
Role of Association or Champers:
i) Transportation or inter-state movement of goods
The Chambers facilitate registration of vehicles, surface transport policies, construction of highways
and roads in promoting interstate movement of goods.
ii) Harmonization CGST and SGST structure
iii) Marketing of agro products and related issues
The associations of agriculturists and other federations interact with farming cooperatives to streamline
local subsidies and formulate marketing policies for selling agro products.
iv) Weights and measures and prevention of duplication of brands
They help the Government in formulation and implementation of uniform policies in weights and
measures and prevention of duplication of brands.
v) Promoting sound infrastructure
They interact with Government to construct roads, ports, electricity, railways, etc.
CHAPTER 25
INTERNATIONAL BUSINESS
1. What do you mean by international business?
 International business denotes all those business activities which take place beyond the geographical
limits of the country.
 It involves not only the international movements of goods and services.
2. What is meant by Export Trade?
When the firm of country sells goods and services to a firm of another country it is called export
trade.
3. What is meant by Import Trade?
When the business firm of a country purchases goods from the firm of another country it is called
import trade.
4. What is meant by Entrepot Trade?
When the firm of country imports goods for the purpose of exporting the same goods to the firms of
some other country with or without making any change in the goods meant for export it is known as Entrepot
trade.
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5. Give any two reasons for International Business.
 Due to varying climatic conditions prevailing across the world certain resources are abundantly available in
some countries.
 In such case countries with surplus resources have to exchange them with other countries for its deficit
resources.
1. Describe importance of the external trade to an economy?
i) Unequal Distribution of Natural Resources.
 Countries across the world are not endowed with the natural resources of various types equally.
 The natural resources are unevenly spread across the various nations.
ii) Specialization.
 Certain countries specialize in the production of goods and services due to some natural advantages.
 Like, favorable climatic conditions, availability of natural resources, technical know how, etc.,
iii) Cost Benefit.
Production cost varies significantly among the countries due to difference in socio economic,
geographical, demographical, technical and political environments prevailing therein.
2. What is the necessity for Entrepot trade?
 The country may not have any accessible trade routes connecting the importing country
 There may not have any bilateral trade agreement between both the country
 Importer and exporter may not share good economic relation with each other
3. What are the limitations of international business?
a) Import of Harmful Goods.
 International business may lead to import of luxurious goods, spurious goods, dangerous goods.
 It may harm the well-being of people.
b) Misuse of Natural Resources.
 Excessive export of scarce natural resources to various countries across the world may lead to faster
depletion of the resources in the exporting countries.
 This in turn may bring about ecological disaster in the country from which it is exported.
c) Rivalry among the Nations.
 Acute competition for exports may lead to rivalry among the nations.
 This may lead to conflict of interest among the countries and end up in wars among them.

1. List out the advantages of international trade
i) Geographical Specialization:
Countries across the world differ significantly in terms of natural resources, capital equipment,
manpower, technology and land and so on.
ii) Economic Development:
 International business helps the developing countries greatly in achieving rapid economic development.
 For example China, India, Brazil and South Korea
iii) Generation of Employment:
 International business generates employment opportunities by assisting the expansion.
 It provides direct employment to those people who are hired by export and import firms.
iv) Higher Standard of Living:
 The citizens of the country can buy more varieties of goods and services which cannot be produced cost
effectively within the home country.
 This exchange of goods and services among the countries enhances the standard of living of people.
v) Prospects for Higher Profit:
 International business helps the firms which produce goods in excess to sell them at relatively higher
price to various countries in the international market.
 This enables them to earn higher profit.
2. Enumerate the disadvantages of international trade
a) Inhibition of Growth of Home Industries.
 International business may discourage the growth of indigenous industry.
 Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether.
b) Import of Harmful Goods.
 International business may lead to import of luxurious goods, spurious goods, dangerous goods.
 It may harm the well-being of people.
c) Shortage of Essential Goods in Home Country.
Moreover the export of essential commodities out of the greed of earning more foreign exchange may
result in absolute shortage of these goods at home country.
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d) Misuse of Natural Resources.
Excessive export of scarce natural resources to various countries across the world may lead to faster
depletion of the resources in the exporting countries.
e) Rivalry among the Nations.
 Acute competition for exports may lead to rivalry among the nations.
 This may lead to conflict of interest among the countries and end up in wars among them.
3. Distinguish between internal and international trade.

Basis Internal Trade International Trade
1. Meaning It refers to business transactions I t re fers to th e bus ine ss transa ction s
transacted within the geographical transacted in beyond the boundaries of a
boundaries of a country. country
2. Participants in With in the country people. Outside of the country people
the business
3. Mode of It is mainly transported by roadways It is mainly transported by water and airways
transport and railways.
4. Currency used Local currency of a country. Foreign currencies.
5. Risk Exposure The risks are relatively less. This risks are high
6. Scope of market The scope of market is Limited The scope of market is unlimited
CHAPTER 26
EXPORT IMPORT PROCEDURES
1. What is meant by Indent?
 An indent actually points to an order received from abroad for export of goods. i.e. sale of goods.
 The indent contains the details in the box.
2. Write any two export promotion institutions.
 Export Promotion Council  State Trading Corporation
3. Mention the types of Indent.

 Open Indent  Closed Indent  Confirmatory Indent.
4. What is the Letter of credit?
Letter of Credit (LC) is an undertaking by its issuer that bills of exchange drawn by the foreign dealer
on the importer will be honored upon its presentation by exporter’s bank up to a specified amount.

1. What are the contents of Indents?
1) Quantity of goods sent, 2) Design of goods, 3) Price, 4) Nature of packing shipment,
5) Mode of shipment 6) Period of delivery 7) Mode of payment
2. What is meaning of consular invoice?
 Where the customs duties are charged on the basis of value of goods at import’s port.
 The customs officers are empowered to open the consignment to calculate duties.
 In order to avoid this problem exporter obtains consular invoice and sends it over to the importer.
3. What is meant Charter Party?

 A charter party is a formal agreement between ship owner and the exporter.
 The hiring of ship for specific voyage is called voyage charter.
 This hiring of entire ship for a specific time period is called time charter
4. Write a short note on Mate’s receipt?

 It is the document issued by the captain of the ship acknowledging the receipt of goods on board.
 This contains details like quantity of goods shipped, number of packages condition for packing.
 Where the Mate is satisfied with packing he/she issues clean receipt.
 If he/she is not satisfied with packing, he/she issues foul receipt.
5. What is Bill of Lading?

 It refers to a document signed by ship owner or to his agent mentioning that goods specified have been
received.
RSN English
It would (Ashwin)
be delivered to the importer or his agent at the port of destination if good condition subject to
terms and conditions mentioned therein.
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1. What are the procedures relating to Export trade?
i) Receiving Trade Enquiry
In the first place importer requests the exporter to supply the information given right below.
 Quantity of goods available.  Price per unit
 Terms and conditions of shipment and payment  Probable delivery time
ii) Receiving Indent and Sending Confirmation
 An indent actually points to an order received from abroad for export of goods. i.e. sale of goods.
 The indent contains the details in the box.
 Indent is prepared in duplicate.
iii) Arranging Letter of Credit
Letter of Credit (LC) is an undertaking by its issuer that bills of exchange drawn by the foreign dealer
on the importer will be honored upon its presentation by exporter’s bank up to a specified amount.
iv) Obtaining Importer Exporter Code and RBI code Number
 Exporter has to apply in Ayaab Niryatt Form 2A to the Regional Authority of the Director General of Foreign
Trade in the region where the registered office of the company is located.
 Exporter has to mention the number in all the shipping documents.
v) Export Inspection Certificate
 After the goods have been packed as per the specifications of importer, the exporter has to apply to the
Export Inspection Agency in this connection.
 The agency sends an inspector to inspect the consignment
2. Distinguish between Bill of Lading and Charter Party

Basis Bill of Lading Charter Party
1. Transferable It can be transferred to third party by It cannot be transferred to third
endorsement and delivery party
2. Loan Loan can be raised against it. Loan cannot be raised against it
3. Crew Master and crew remain the agent of Master and crew become the agent of
ship owner. exporter for a temporary period
4. Lease It is not a lease of ship It is a lease of ship
3. What are the documents used in Export Trade?

i) Documents Related to Goods: ii) Documents Related to Shipment iii) Documents Related to Payment
 Indent  Mate’s Receipt  Letter of Credit
 Certificate of origin  Shipping Bill  Commercial Invoice
 Certificate of Inspection  Shipping Order  Bills of Exchange
 Bill of Lading
 Marine Insurance Policy
 Consumer Invoice
4. Explain the various functions of Export Trading Houses.

 Identifying potential market for a product
 Finding buyers and their agent and eliciting their response for export proposal.
 Preparing the goods for delivery at destination
 Determining buyer’s creditworthiness
 Negotiating the transactions
 Financing the transactions and paying for goods and service received.
 Preparing document for international trade
 Settling claim.
CHAPTER 27
FACILITATORS OF INTERNATIONAL BUSINESS
1. What is WTO?
 The World Trade Organisation (WTO) was established on 1s t January 1995.
 WTO has 164 member countries as on 29th July 2016.
2. What do you mean by World Bank?

 International Bank for Reconstruction and Development is commonly known as World Bank.
 It is located at Washington DC. It has its offices all over the world.
3. What is Special Drawing Rights?

 SDR was created by the IMF in the year 1969 as supplementary international reserve asset.
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 It is described as paper gold
4. What is SAARC?
 South Asian Association for Regional Cooperation is the regional inter governmental organization and geo-
political union of nations in South Asia.
 The member countries include Bhutan, India, Nepal, Srilanka, Pakistan and Maldives.
 It was established on 8th December 1985. It was founded at Dhaka in Bangladesh.
5. What is GATT?
 International business involved complex issues among various countries way back in 1950’s.
 As a result, the General Agreement on Tariffs and Trade was signed at Geneva on 30th October 1947 by 23
countries.
1. What is the primary motive of establishment of WTO?
 Improving the standard of living of people in member countries
 Expansion of trade in goods and services
 Ensuring full employment and large steady growth volume of real income and effective demand
2. Name the affiliate of World Bank

 International Development Association (IDA)
 International Financial corporation (IFC)
 Multinational Investment Guarantee Agency(MIGA)
3. What are the criticisms of World Bank?

i) Most Favored Nation Principles
 This is the core of WTO rules.
 Under this rule member countries are advised not to discriminate among the home enterprises, multi-
nationals and foreign enterprises.
ii) Failure to Reduce Tariffs on Agriculture
 WTO failed to convince the USA and European Unions to eliminate high tariff on agriculture .
 It defends high tariff on agriculture in USA and EU.
 This would undoubtedly hurt the farmers in developing countries.
iii) Neglect of Cultural and Social Factors
 WTO is criticized for promoting the domination of multinational companies which are feared to eliminate
local enterprises from business world altogether.
 The growth of MNC’s is feared to ruin cultural diversity of many developing countries.
4. How is the value of SDR determined currently?

 It is calculated as the sum of specific amount of each basket currency value in US dollar based on the spot
exchange rates observed at noon London time.
 IMF allocates SDR to member countries in proportion to their quota.
5. Mention the functions of SAARC.

 Monitoring and co-coordinating the development programme
 Determining inter-sectoral priorities
 Mobilizing cooperation within and outside the region.
 Dealing with modalities of financing

1. Point out the objectives of WTO
 Improving the standard of living of people in member countries
 Making optimum utilization of world’s resources for sustainable development of member countries.
 Promoting an integrated more viable and durable trading system in the sphere of international business
 Expansion of trade in goods and services
 Ensuring full employment and large steady growth volume of real income and effective demand
 Protecting the environment
2. Write down the functions of WTO.

 It is a forum for negotiation and formalization of trade agreement among the member countries.
 It settles disputes and grievances relating to trade among the member countries.
 It frames commonly acceptable code of conduct in order to reduce trade barriers.
 It holds consultations with IMF and World Bank(IBRD) and its affiliates to bring about a greater
 understanding and co-operation in global economic policy making.
RSN English (Ashwin)
It supervises the operations of agreement relating to General Agreement on Tariffs and
 Trade(GATT) and Trade-Related Intellectual Properties Rights (TRIPS)
 It regulates trade between participating countries.
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3. Describe the benefits of WTO
 WTO is promoting international peace and creating a conducting international trade.
 It settles the trade disputes amicably among the member countries.
 It promotes the standard of living of people by increasing their income level from free trades
 WTO has removed quantitative restrictions and non-tariff barriers.
 It stimulates economic growth of developing countries by providing them with much needed capital and
giving related matters.
4. Highlights the functions of IBRD
 Assisting reconstruction of war-affected countries
 Promoting economic growth and balanced growth of international business
 Promoting infrastructural facilities like energy and transportation, road development, etc. in member
countries.
 Encouraging agricultural and industrial development in developing countries by providing adequate resources
 Providing resources for promoting sanitation, education, health care and small scale enterprises in member
countries
5. Write down the functions of IMF
 It acts as short term credit institution at the international level.
 It provides machinery for ordinary adjustments of exchange rates.
 It promotes economic stability and global growth by encouraging countries adopt sound economic and
financial policies.
 It offers technical assistance and training to help member countries strengthen and implement effective
policies.
 It helps member countries correct their imbalance in balance of payment.
6. Explain how far India has benefited from IMF?

i) Free Convertibility of Indian Rupee:
 Indian rupee has become independent after the establishment of IMF.
 Earlier it was linked with pound sterling.
 Its value is now determined in terms of Gold.
ii) Loan For Development Activities:
 India got several loan facilities from IMF for its several development projects.
iii) Ability To Purchase Foreign Currency
 Government of India is able to purchase foreign currencies from time to time to meet the ever growing
requirement of development activities.
iv) Expert Advice
 India used to get expert advice from IMF for solving the economic problems.
 It has given valuable advice to India with regard to financing its 5 year plan.
v) Financial Assistance during Natural Calamity
 India has got a lot of financial assistance from IMF to solve the economic crises arising from natural
calamities like, floods, famine, earthquake, aggressions of Chinese and Pakistan etc.
CHAPTER 28
BALANCE OF TRADE AND BALANCE OF PAYMENTS
1. What do you mean by Balance of payments?
Balance of payment refers to a systematic record of all economic transactions between the residents
of one country and the residents of foreign countries during a particular period of time.
2. What do you mean by Balance of trade?
 Balance of trade denotes the difference between the value of import and the value of export during a year.
 If the export of a country exceeds its imports, it shows favorable balance of trade.
3. Define Balance of payments

“The balance of payments for given period is a systematic records of all economic transactions taken
place during the period between residents of the reporting countries.” - International Monetary Fund
4. What is the composition of private capital?
Private capital consists of foreign investments, long term loan and foreign currency deposits
5. Mention the components of banking capital.
Banking capital includes movement into external financial asset and liabilities commercial and
cooperative banks authorized to dealing in foreign exchange
6. Mention the components of official capital.
It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government
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1. Why is Balance of payment prepared?
 Balance of payment is the principal tool for analyzing the monetary position of international trade of a
country.
 Balance of payments help in framing monetary, fiscal and trade policies of country.
 Government keenly observes balance of payment position of its important trade partners in making policy
decisions.
2. What does Balance of payment disclose?
 A Balance of Payment surplus indicates that country’s exports are more than its imports and its government
and residents are savers.
 They are in position to have enough capital to pay for its domestic production.
 As a result it boosts the economic growth in the short term.
3. What are the credit items shown in currents accounts?

 Goods Export(visible)  Invisible Exports
 Transport service sold abroad  Banking service sold abroad
4. State the components of capital account.

 Private Capital  Banking Capital  Official Capital

1. Write down the structure of capital account
Capital account consists of three components
 Private Capital  Banking Capital  Official Capital
i) Private Capital
Private capital consists of foreign investments, long term loan and foreign currency deposits.
ii) Banking Capital
Banking capital includes movement into external financial asset and liabilities commercial and
cooperative banks authorized to dealing in foreign exchange.
iii) Official Capital
It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.
2. Distinguish balance of payment and balance of trade
Basis Balance of Payment Balance of Trade
Meaning It is a systematic record of all Balance of trade is statement showing
economic transactions happened the net effect of export and import of
between the resident of one country a country
and resident of foreign countries
during a particular period.
Nature of It records both the transactions It records only transactions
Transactions relating to goods and services relating to merchandise , i.e. goods
recorded transactions
Capital It records capital transactions It does not record capital transactions
Transactions
Net position It always remains balanced in the It may be at favorable or unfavorable
sense that receipt side is made equal or in equilibrium state.
to payment side
Indicator It is true indicator of economic It is not true indicator of economic
Economic Status performance of an economy prosperity or economic relations of
country.
3. Highlight the features of balance of trade.

 It is a systematic record of all economic transactions between one country and certain other countries of
the world
 It is prepared for a period of three months or twelve months, i.e., usually 12 months
 It contains all receipts and payments both visible and invisible
 It includes all economic transactions both recorded on current account and capital account
 Economic transactions are recorded according to double entry principle of book keeping
 Accordingly receipts are recorded on credit side and payments are recorded on debit side
 It indicates a country’s position in foreign trade
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CHAPTER 29
ELEMENTS OF CONTRACTS
1. What is law?
 Law means a ‘set of rules’ which governs our behavior and relating in a civilized society.
 So there is no need of Law in a uncivilized society.
2. Why should one know law?

 Society requires peace, harmony, justice, social security and order which is possible only through Laws.
 Every law has a particular field of activity to regulate and govern.
3. Can a minor enter into a Contract?

No, a minor cannot enter into contract.
4. Who can enter into a Contract?
The Indian Contract Act specifies that every person is competent to contract provided he is of the age
of majority according to the law which he is subject to and who is of sound mind.
5. Define Contract?
A “contract” is an agreement enforceable by law. The agreements not enforceable by law are not
contracts. - Indian Contract Act, 1872

1. Define Offer
When one person signifies to another his willingness to do or to abstain from doing anything, with a
view to obtaining the assent of that other person either to such act or abstinence, he is said to make a
proposal.
2. What do you mean by Agreement?
Every promise and set of promises forming consideration for each other is an agreement. In short,
Agreement = Offer + Acceptance.
3. Define a Voidable Contract
 An agreement which is enforceable by law at the option of one or more parties but not at the option of the
other or others is a voidable contract.
 This is the result of coercion, undue influence, fraud and misrepresentation.
4. What do you mean by Revocation?

The revocation mean the withdraw of an offer power of attorney
5. Who is a promisor, promisee?
promisor: The person who has become obliged through a promise (usually expressed in a contract) towards
another.
Promise: the person who makes a promise or a contractual commitment

1. Explain the essentials of a Valid Contract
i) Offer and Acceptance
There must be two parties to an agreement namely one party making the offer and the other party
accepting it.
ii) Legal Relationship
 The parties must have the intention to create legal relationship between them.
 An agreement of Social or domestic nature is not at all a contract.
iii) Lawful Consideration
 As per Contract Act under Sec.2 (d) Consideration means something in return.
 A contract without consideration becomes invalid.
 It may be in cash or kind or in any form as specified in the act.
iv) Lawful Object (Section 23)
 The object of agreement should be lawful and legal.
 It must not be immoral, illegal or opposed to public policy.
v) Free Consent (Section 13 & 14)
Consent of the parties must be free and genuine. Consent means agreeing upon same thing in the
same sense at the same time.
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2. Difference between Contract and Agreement.
Basis Contracts Agreement
Definition It is an agreement enforceable by It is every promise forming
law. Consideration
Enforceability Every contract is enforceable Every promise is not enforceable.
Inter relationship It is includes an agreement. It is does not include a contract.
Validity Only legal agreements are called An agreement may be both legal and
contracts. illegal.
Legal Obligation Every contract contains a legal It is not necessary for every agreement
obligation. to have legal obligation
3. Explain the classification of Contract on the basis of the Validity.

i) Valid Contract
 An agreement which fulfils all the essentials prescribed by law on the basis of its creation.
 For ex: S offers to sell his car for Rs.2,00,000 to T. T agrees to buy it.
ii) Void Contract (2(j))
 A contract which does not satisfy any of the essential elements of a valid contract is said to be Void.
 For ex: A contract between drug dealers to buy and sell drugs is a void contract.
iii) Voidable Contract 2(i)
An agreement which is enforceable by law at the option of one or more parties but not at the option of
the other or others is a voidable contract.
iv) Illegal Contract
 It is a contract which is forbidden by law.
 All illegal agreements are Void but all void agreements or contracts are not necessarily illegal.
v) Unenforceable Contract
 Where a contract is unenforceable because of some technical defect i.e. absence in writing barred by imitation
etc.
 If the parties perform the contract it will be valid, but the court will not compel them if they donot.
4. Explain the classification of Contract on the basis of the Formation.

i) Express Contract
 A contract made by word spoken or written.
 According to Section. 9, in so for as the proposal or acceptance of any promise is made in words, the
promise is said to be express.
ii) Implied Contract
 It is one, which is not expressly written but understood by the conduct of parties.
 Where the proposal or acceptance of any promise is made otherwise than in words, the promise is said to
be implied.
iii) Quasi Contract
 It is a contract created by law. Actually, there is no contract.
 It is based on the principle that “a person shall not be allowed to enrich himself unjustly at the expense of
the other”.
iv) Tacit Contract
 A contract is said to be tacit when it has to be inferred from the conduct of the parties.
 For ex: obtaining cash through automatic teller machine, sale by fall of hammer of an auction sale.
5. Explain the classification of Contract on the basis of the Performance.

i) Executed Contract
 A contract in which both the parties have fulfilled their obligations under the contract.
 For ex: X contracts to buy a car from Y by paying cash, Y instantly delivers his car.
ii) Executory Contract
 A contract in which both the parties are yet to fulfill their obligations.
 It is said to be an executory contract.
iii) Unilateral Contract
 A unilateral contract is a one sided contract in which only one party has performed his promise or
obligation, the other party has to perform his promise or obligation.
iv) Bilateral Contract
A contract in which both the parties commit to perform their respective promises is called a bilateral contract.
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CHAPTER 30
PERFORMANCE OF CONTRACT
1. State the ways of Performing a Contract.
 Actual performance  Attempted performance
2. Who is a Legal Representative?

If the Promisor dies the legal representative of the deceased promiser is bound to perform the contract.
3. Who is an agent?
The promisor may employ a competent person such as agent to perform the promise, if the contract is
not formed on personal condition.
4. Define Reciprocal Promise.
Promises which form consideration or part of consideration for each other are called ‘Reciprocal Promise’.
5. By whom must contracts be performed?
 Promisor himself  Agent,  Representations

1. What is a valid tender?
A valid tender of performance is considered to be the performance of a promise. There are mainly two
ways of performing contracts:
i. Actual Performance
 When the party has done what he had undertaken to do, it is called actual performance.
 In actual performance, the party is to fulfill all his obligations under the contract.
ii. Attempted Performance
 When the party offers to perform his obligation, it is not accepted by the promisee.
 So, it is also called offer to performance or tender.
2. Who can execute and perform a Contract?

 Promisor himself  Agent
 Representations  Third Person  Promise
3. Who can demand performance?

 Promisee – Only a promisee can demand performance and not a stranger demand performance of the contract.
 Legal Representative – Legal representative can demand Exception performance. Contrary intention appears
from the contract. Contract is of a personal nature.
 Third party – Exception to “stranger to a contract”
4. Write a note on the benefits of Reciprocal Promise.

Promises which form consideration or part of consideration for each other are called ‘reciprocal promise’.
 Mutual and Independent  Mutual and Dependent  Mutual and Concurrent
5. Who is a Joint Promisor?

Where two or more persons have made a joint promise , a release of one of such joint promiser by the
promisee does not discharge the other joint promiser , neither does it free the joint promiser.

1. Explain rules relating to place of performance of promise
 It is only the promisee for whom the contract is performed.
 Only the promisee can demand the performance of the promise under a contract.
 Of course, there are certain special cases, where a third party can enforce a promise though he is not a
party to the contract.
 For example in respect of trust, marriage settlement etc.
 In case of death of promisee, the representative appointed by him can ask for the performance of the
promise under a contract.
2. Elucidate the provision regarding time as factor in performance.
i) Under Section 46, performance within a reasonable time:
 According to Section 46, a promisor is to perform his promise within a reasonable time.
 On the other hand, reasonable time will depend upon the circumstance of the case, the usage of trade or on
the intention of the parties entering into the contract.
ii) Under Section 47, specified time and place for performance:
According to the Section 47, In such a case the promisor may perform the promise at any time during
the usual hours of business on such day and at the place at which the promise ought to be performed.
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3. How do you think appropriation of payments takes place?
i) Appropriation of Payments
 Sometimes, a debtor owes several distinct debts to the same creditor and he makes a payment which is
insufficient to satisfy all the debts.
 In such a case, a question arises as to which particular debt the payment is to be appropriated.
ii) Application of payment where debt to be discharge is not indicated [60]
If section 60 is attracted, the creditor shall have the discretion to apply such payment for any lawful
debt which is due to him from the person making the payment.
iii) Application of payment where neither party appropriates [61]
 The payment shall be applied in discharge of the debts in order of time whether they are or are not based by
the limitation Act 1963.
 If the debts are of equal standing the payment shall be applied in discharge of each of these debts
proportionately.
CHAPTER – 31
DISCHARGE AND BREACH OF CONTRACT
1. What are the kinds of consent?
Express : Express consent may be given at the time of formation of the contract to its formation
Implied : 1) Novation, 2) Alteration, 3) Recession, 4) Remission, and etc…
2. What are the types of Impossibility of Performance?
 Impossibility existing at the time of agreement.
 Impossibility arising subsequent to the formation of contract.
3. What is Quantum merit?

 The claim for quantum merit may arise if a contract performed by one party has become discharged by
breach of the other party.
 The meaning of the phrase quantum merit is ‘as much as earned’.

1. What are the different modes of discharged by implied consent?
 Agreement between the parties comes to an end by mutually agreeing for it.
 Any contract is created by an agreement, hence in the same way. it can be discharged by an agreement.
 The consent may be of the following types (i) Express: (ii) Implied:
2. Define discharge by Performance.

 According to the Section 56 of the Act, all acts to do impossible acts are void.
 There are two types of impossibility of performance such as –
 Impossibility existing at the time of agreement.
 Impossibility arising subsequent to the formation of contract.
3. What are reasons for impossibility arising after the formation of contract?
 A contract may be discharged if its performance becomes impossible.
 The law does not recognize what is impossible and
 What is impossible does not create an obligation.
4. What are the various rules regarding damages?

 Damages are a monetary compensation awarded by the court to the injured party for the loss or injury
suffered by him.
 As per contract, one party can claim damages if other party breach the contract.
 The main purpose of awarding the damages is to make good the loss suffered by him.
 It is known as doctrine of restitution.

1. Explain the ways of discharge of Contract?
i) Discharge by Performance
 Performance implies carrying out the obligation of the contract.
 Performance must be completed according to the real intentions of the agreement.
 Performance of contract may be of two types namely:
i) Actual performance ii)Attempted performance
ii) By Agreement on Consent:
The consent may be of the following types
(i) Express: Express consent may be given at the time of formation of the contract to its formation
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(ii) Implied: The contracts are also discharged by implied consent, different modes of discharge by
implied consent are
(a) Novation, (b) Alteration, (c) Recession, (d) Remission,
(e) Accord and Satisfaction, (f) Waiver and (g) Merger
iii). By Impossibility of performance:
 A contract may be discharged if its performance becomes impossible. The rule of impossibility of performance
is based on the following maxims
 The law does not recognize what is impossible and
 What is impossible does not create an obligation.
iv) By Lapse of Time
 According to the Limitation Act, 1963 a contract must be performed within a specified time.
 If it is not performed within this specified time limit.
v) By Operation of Law:
 A contract can be discharged by the operation of law.
 The operation of law by which contract can be discharged are as follows:
 By Death  By Merger  By Insolvency
2. Write about the various remedies for breach of contract

(i) Recission of Contract
In case of breach of contract by one party, then the other parties may rescind the contract and thereby
the party is absolved from his all obligations under the contract.
(ii) Claim for Specific Performance
 In some specific cases if the damages are not the adequate remedy, then the court can direct the party in
breach for the specific performance of the contract.
 In such case, the promise is carried out as per terms and conditions of the contract.
(iii) Claim for Injunction
 Injunction is an order passed by a competent court restraining a person from doing some act.
 Injunction can be defined as a mode of securing the specific performance of the negative terms of a contract.
(iv) Claim for Quantum Merit
 The claim for quantum merit may arise if a contract performed by one party has become discharged by
breach of the other party.
 The meaning of the phrase quantum merit is ‘as much as earned’.
(v) Claim for damages:

 Damages are a monetary compensation awarded by the court to the injured party for the loss or injury
suffered by him.
 The main purpose of awarding the damages is to make good the loss suffered by him.
3. Discuss the different types of damages awarded to the injured party.

 Damages are a monetary compensation awarded by the court to the injured party for the loss or injury
suffered by him.
 As per contract, one party can claim damages if other party breach the contract.
 The main purpose of awarding the damages is to make good the loss suffered by him.
 It is known as doctrine of restitution.
 The Section 73 of the Indian Contract Act, 1872 deals with the compensation for loss or damages caused by
a party for breach of contract.
 There are mainly four types of damages, such as
 Ordinary damages  Special damages  Exemplary damages  Nominal damages.
CHAPTER 32
DIRECT TAX
1. What is Income tax?
 Indirect Tax is levied on the goods and services.
 It is collected from the buyers by the sellers and paid by the sellers to the Government.
2. What is meant by previous year?
 The year in which income is earned is called previous year.
 It is also normally consisting of a period of 12 months commencing on 1st April every year and ending on
31st March of the following year.
3. Define the term person?
 an individual,  a Hindu Undivided Family (HUF),
 a company,  a firm,
 a local authority, and  every artificial juridical person
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4. Define the term assessee?
Assessee means a person by whom any tax or any other sum of money is payable under this Act. It
includes every person in respect of whom any proceeding has been taken for the assessment of his income.
5. What is an assessment year?
 The term has been defined under section 2(9). The year in which tax is paid is called the assessment
year.
 It normally consisting of a period of 12 months commencing on 1st April every year and ending on 31st
March of the following year.
1. What is Gross Total Income?
Income from all the five heads of income shall be computed separately according to the provisions
given in the Act.
(i) Income from ‘Salaries’ *****
(ii) Income from ‘House Property’ *****
(iii) Income from ‘Business or Profession’ *****
(iv) Income from ‘Capital Gains’ *****
(v) Income from ‘Other Sources’ *****
Gross Total Income (GTI) *****
2. List out the five heads of income.
 Income from ‘Salaries’ [Sections 15- 17];
 Income from ‘House Property’ [Sections 22-27];
 Income from ‘Profits and Gains of Business or Profession’ [Sections 28- 44];
 Income from ‘Capital Gains’ [Sections 45-55]; and
 Income from ‘Other Sources’ [Sections 56-59].
3. Write a note on Agricultural Income.

 Any rent or revenue derived from land which is situated in India and is used for agriculture purposes.
 It is fully exempted from tax u/s 10(1) and as such does not form part of total income.
4. What do you mean by Total Income?

 Out of Gross Total Income, Income tax Act 1961 allows certain deductions under section 80.
 After allowing these deductions the figure which we arrive at is called ‘Total Income’ and on this figure tax
liability is computed at the prescribed rates.
Gross Total Income ****
Less: Deductions (Sec.80C to 80U) ****
Total Income (T.I.) ****
5. Write short notes on: a). Direct Tax. b). Indirect Tax
a) Direct Tax:
 Income tax is direct tax.
 It is because the liability to deposit and ultimate burden are on same person.
 The person earning income is liable to pay income tax out of his own pocket.
 It cannot pass on the burden of tax to another person.
b) Indirect Tax
 Indirect Tax is levied on the goods and services.
 It is collected from the buyers by the sellers and paid by the sellers to the Government.
 Since it is indirectly imposed on the buyers it is called indirect tax.
 Ex: GST - Goods and Services Tax, Excise duty.

1. Elucidate any five features of Income Tax.
i. Levied as Per the Constitution
Income tax is levied in India by virtue of entry No. 82 of list I (Union List) of Seventh Schedule to the
Article 246 of the Constitution of India.
ii. Levied by Central Government
 Income tax is charged by the Central Government on all incomes other than agricultural income.
 However, the power to charge income tax on agricultural income has been vested with the State Government
as per entry 46 of list II, i.e., State List.
iii. Direct Tax
 Income tax is direct tax.
 It is because the liability to deposit and ultimate burden are on same person.
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 It cannot pass on the burden of tax to another person.
iv. Annual Tax
 Income tax is an annual tax because it is the income of a particular year which is chargeable to tax.
v. Tax on Person
 It is a tax on income earned by a person.
 It includes individual, Hindu Undivided Family, Firm, Company, local authority, Association of person or
body of Individual or any other artificial juridical persons.
 The persons who are covered under Income tax Act are called ‘assessees’.
2. Define Tax. Explain the term direct tax and indirect tax with an example.
Tax:
 Tax is a compulsory contribution to state revenue by the Government.
 It is levied on the income or profits from business of individuals and institutions.
 Tax is the basic source of revenue to the Government.
Types of Taxes
a) Direct Tax:
 Income tax is direct tax.
 It is because the liability to deposit and ultimate burden are on same person.
 The person earning income is liable to pay income tax out of his own pocket.
 It cannot pass on the burden of tax to another person.
b) Indirect Tax:
 Indirect Tax is levied on the goods and services.
 It is collected from the buyers by the sellers and paid by the sellers to the Government.
 Since it is indirectly imposed on the buyers it is called indirect tax.
 Ex: GST - Goods and Services Tax, Excise duty.
3. List out any ten kinds of incomes chargeable under the head income tax.
 Profits and gains of business or profession.
 Dividend
 Voluntary contribution
 Export incentives, like duty drawback, cash compensatory support, sale of licenses, etc.,
 Interest, salary, bonus, commission or remuneration earned by a partner of a firm from such firm.
 Capital gain chargeable u/s 45.
 Deemed income u/s 41 or 59.
 Amount received under key man insurance policy including bonus thereon.
 Gift as defined u/s 56 (2)(vi), and others.
4. Discuss the various kinds of assesses.

 Assessee means a person by whom any tax or any other sum of money is payable under this Act.
 It includes every person in respect of whom any proceeding has been taken for the assessment of his
income or assessment of fringe benefits.
 The term ‘person’ includes the following
 an individual,
 a Hindu Undivided Family (HUF),
 a company,
 a firm,
 an Association Of Persons or a Body
 a local authority, and
 every artificial juridical person e.g., an idol or deity.
CHAPTER- 33
INDIRECT TAXATION
1. Define Indirect tax.
If tax is levied on the goods or services of a person is collected from the buyers by another person
(seller) and paid by him to the Government it is called indirect tax. E.g. GST, Excise duty.
2. List out any four types of indirect taxes levied in India.
 CGST  SGST  UGST  IGST
3. What do you mean by Goods and Services Taxes?

 Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and services.
 GST Act was passed on April 12, 2017, GST came into effect from 1st July, 2017.
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4. Write a note on SGST.
State Goods and Services Tax - imposed and collected by the State Governments under State GST Act.
(Tamil Nadu GST Act 2017 passed by Tamil Nadu Govt.)
5. What is CGST?
Central Goods and Services Tax - imposed and collected by the Central Government on all supply of
goods within a state (intra-state) under CGST Act 2017

1. Write any two differences between direct taxes and indirect taxes.
Basis Direct Tax Indirect Tax
1. Burden Tax burden is progressive on people. Tax burden is regressive.
2. Evasion Tax evasion is possible. Tax evasion is more difficult
3. Shiftability Cannot be shifted to others Can be shifted to others
2. What are the objectives of GST?

 The foremost objective of GST is to create a common market with uniform tax rate in India.
 To eliminate the cascading effect of taxes, GST allows set-off of prior taxes for the same transactions as
input tax credit.
 To boost Indian exports, the GST already collected on the inputs will be refunded and thus there will be no
tax on all exports.
3. Briefly explain the functions of GST council.
A. To the Society and country
 GST has integrated the economy of all States and Union Territories.
 It will bring more tax compliance (more tax payers) and increase revenue to the Governments.
B. To Business Community
 Simpler Tax System with fewer exemptions. 17 taxes were abolished and one tax exists today.
 Input tax credit will reduce cascading effect of taxes.
 Uniform prices throughout the country. Expansion of business to all states is made easy.
C. To Consumers
 Input tax credit allowed will lower the prices to the consumers.
 All small retailers will get exemption and purchases from them will cost less for the consumers.
4. Explain IGST with an example.

IGST – Inter-State Goods and Services Tax is imposed and collected by the Central Government and
the revenue is shared with States under IGST Act 2017.
5. Write any three demerits of UGST.
 Several Economists says that GST in India would impact negatively on the real estate market.
 It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
 CGST, SGST are nothing but new names for Central Excise/Service Tax, VAT and CST.
 Hence, there is no major reduction in the number of tax layers.
 After GST, garments and clothes could become more expensive.

1. Distinguish between direct taxes and indirect taxes.
Basis Direct Tax Indirect Tax
Burden Tax burden is progressive on people Tax burden is regressive.
Evasion Tax evasion is possible. Tax evasion is more difficult
Inflation Direct tax helps in reducing the inflation. Indirect tax contributes to inflation
Shiftability Cannot be shifted to others Can be shifted to others
Examples Income Tax, Wealth Tax, Capital Gains Tax, GST. Excise Duty
Securities Transaction Tax, Perquisites Tax.
2. Discuss the different kinds of GST.

GST is of three kinds: CGST, SGST/UGST, and IGST.
i) CGST
Central Goods and Services Tax - imposed and collected by the Central Government on all supply of
goods within a state (intra-state) under CGST Act 2017
ii) SGST
State Goods and Services Tax - imposed and collected by the State Governments under State GST Act.
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iii) UGST
 Union Territory Goods and Services Tax - imposed and collected by the five Union Territory
 Administrations in India under UGST Act 2017.
iv) IGST
Inter-State Goods and Services Tax - imposed and collected by the Central Government and the
revenue shared with States under IGST Act 2017.
v) IGST on exports
All exports are treated as Inter-State supply under GST. Since exports are zero rated, GST is not
imposed on all goods and services exported from India.
3. Elucidate the merits of GST.
A. To the Society and country
 GST has integrated the economy of all States and Union Territories.
 It will boost manufacturing, export, GDP leading to economic growth through increase in economic
activity.
 Creation of more employment opportunities which will result in poverty eradication.
 It is transparent and will improve India’s ranking in the ‘Ease of Doing Business’ in the world.
 Uniform rates of tax will reduce tax evasion and rate arbitrage between States.
B. To Business Community
 Simpler Tax System with fewer exemptions. 17 taxes were abolished and one tax exists today.
 Input tax credit will reduce cascading effect of taxes.
 Common procedures, common classification of goods and services and timelines will lend greater certainty
to taxation system.
 Uniform prices throughout the country. Expansion of business to all states is made easy.
C. To Consumers
 Input tax credit allowed will lower the prices to the consumers.
 All small retailers will get exemption and purchases from them will cost less for the consumers.
4. Compare CGST, SGST and IGST.

Basis CGST SGST IGST
Meaning CGST means Central goods SGST means State goods IGST refers to it is a combined
and service tax to replace and service tax, replace form of CGST and IGST and it
the existing tax like service the ex is ting ta x like is levied by central government.
tax, excise, etc. sales tax, luxur y tax,
entry tax, etc.
Collection of tax Central government State government Central government
Applicability Intra-state supply Intra-state supply Inter-state supply
Registration No reg istra tio n till th e No registration till the Registration is mandatory
turnover crosses 20 lakhs turnover crosses 20Lakhs
Composition The dealer ca n use th e The dealer can use the The composition scheme is
benefit up to 75 lakhs under benefit up to 75 lakhs not applicable in
the composition scheme under the composition interstate supply
scheme
Exam preparation
 Organize your study space
 Use flow charts and diagrams
 Practise on old exams
 Explain your answers to others
 Organize study groups with friends
 Take regular breaks
 Snack on brain food
 Plan your exam day
 Drink plenty of water
 Yoga for students
 Meditation
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DO YOU KNOW
1.Who was the father of co-operative society?
In 1844,in England, 28weavers (Rochdale Pioneers) started the first ever Cooperative Society.
2.How many Nationalised bank in India?
 14 Banks were nationalised in India in the year 1969
 6 Banks were subsequently nationalize in India in the year 1980
3. Demonetisation and Remonetisation
Government of India on the recommendation of the RBI carried out demonetization on November 8,
2016 in order to;
a) to crack a whip against black money,
b) drive out counterfeit currency in circulation,
c) formalization of cash dependent business, and
d) dismantling the financial strength of terrorism.
There were ‘ 17,118 billion value of ‘ 500 and ‘1000 currencynotes in circulation before demonetisation.
They consisted of around 2,203 crore piecesof notes. Of these 98.96% notes were returned to the
banks. Subsequently remonetisation was carried out by issuing new ‘ 2000 and 500 currency notes.
4. When Land Mortgage Bank started and its functions?
 In 1920, first Land Mortgage Bank (LMB) was established in India. Land Mortgage
 Act was passed in 1930. These banks provided long term loans to farmers mainly for redemption of debt.
 After 1960 LMBs started financing productive projects like digging of wells, installation of pump sets, etc.
There after they were called Land Development Banks. In view of the broader role of LDBs they are now
known as SCARDBs.
 Under the RBI control there is no land development in India today.
5. When co-operative societies act was Passed in Tamil nadu?

 First Cooperative Societies Act was passed in 1961 by Tamil NaduGovernment.
 In 1983, it was repealed and a new Act was passed.
 All Cooperative banks in Tamil Nadu arecontrolled by this Act.
6. When was Multi state co operative societies Act was passed? And its meaning?
If the area of operation of the bank extends to two or more states, they are registered under Multi
State Cooperative Societies Act, 2002.
7. Banking Correspondents
Banking Correspondents (BCs) are retailagents engaged by banks for providing banking services at low
cost in locationsother than a bank branch/ATM. They are not separate banks recognized by the RBI.BC model
was introduced by the RBI in2006 to provide services at door steps.Non-Governmental Organisations or
individuals like ex-serviceman can apply for BCs. The banks engaging BCs are responsible for their functioning.
A bank in a country can appoint another bank in a foreign country to act as correspondent bank.
8.What is the Principles of Islamic banking system?
Islamic banking is a system of banking based on Islamic principles of banking. It is based on two
principles. First no interest is charged on loans and no interest is given on deposits. The business firms
which received loans from banks will give a share of profit to the banks and banks will give a share of profit to
the depositors. It is practiced in UAE, Qatar, Pakistan, Kuwait, Bahrain, etc.
9. What are the types of banking system?
There are several types of banking systems which can be combined by any of the above banks.
They are:
Unit banking, branch banking, retail banking, merchant banking, Universal banking, relationship banking,
wholesale banking, pure banking, mixed banking, chain banking, group banking, green banking and so on.
These are not separate banks recognised as such by the RBI.
10. Crossing of Cheque:
Drawing two parallel transverse lines on the left top of the cheque. It implies that the money will not
be paid over the counter but through bank account only.
11. Village Storage or Warehouse
 Underground storage structures are used by farmers in villages to store food grains. They are safer from
threats from various external sources of damage, such as theft, rain or wind.
 Separate peripheral structures with mud are erected as surface storage structure for food grains.
 PAU bin, Pusa bin, HapurTekka, etc. are used for small scale storage of grains. Cap storage, Silos, etc, are
RSN English
used for(Ashwin)
large scale storage of food grains.
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12. Warehousing Development and Regulatory Authority(WRDA)
To develop and regulate the warehousing industry in India, Warehousing Development and Regulatory
Authority was established under the Warehousing (Development and Regulation) Act, 2007. Its objective is
to improve the storage capacity in the country and also help producers, farmers and consumers get a better
deal by cutting the intermediaries and wastages.
13. What is in Transit Mixing?
It refers to a function in which warehouse receives products from different plants and mix and
repack them as per client’s requirement.
14. Write notes about Indian Railway:
Indian Railway is the largest Railway Organization in the world. The Indian Nationwide network, the
4th longest in the world, is owned and operated by State-Owned Indian Railways and includes an operating
route length of more than 65,000 Kms. The network carried about 8 billion passengers (the highest in the
world) in 2013.
15. International shipping
International shipping can be between countries that are connected by land. For Example, Foreign
trade between India and Bangladesh.
16. Overseas shipping
 Overseas shipping means the package has to cross ocean.
 For Example, International trade between India and South Africa.
17.Write about Air Ambulance services in India?

“Air Rescuers” was established in the year 1999 for superior patient transfer through Air Ambulance
and an elevated standard of care and management through Air Ambulance India. The Air Ambulance services
are available in Delhi, Mumbai, Kolkata, Hyderabad and Chennai.
18. Material Fact
A material fact is one which goes to the root of the insurance contract i.e., a fact is material if it can
influence the insurer in accepting or declaring the risk or in fixing conditions of insurance or rate of premium.
19. CASCO INSURANCE
The motor casco is a voluntary insurance. It covers the motor vehicle against various risks such as
fire, natural disaster, theft of the motor vehicle or the equipment installed therein, a breakdown as a result
of collision with another vehicle or object on the road etc.
20. What is mean by Life Assurance.
Life Insurance should more properly be called as “Life Assurance” because the risk insured here is
certain and natural. Only the tie of occurrence is uncertain.
21. Examples of Indian Companies that have raised funds through GDR( Global Depository Receipts)
 SBI BAJAJ AUTO WIPRO ITC
 ICICI BANK GAIL Reliance infrastructure Ltd
 HDFC BANK HINDALCO
22. Write some routes of International Business.

There are some routes of International Business before 18th century
1. Salt Route-India to Egypt
2.Silk Route- China to India 3.Spice Route-India to Europe
23. Content of an Indent
a. Quantity of goods sent b. Design of goods c. Price d. Nature of packing shipmente
e. Mode of shipment f. Period of delivery g. Mode of payment
24. WTO AGREEMENTS
Agreement Forming part of GATT
GATT is an important part of WTO agreements. It includes special agreement evolved to deal with
non-tariff barriers
25. Structure of Indian Taxation System
Indian taxation system is one of the largest systems in the world. The authority to levy tax is
derived from the Indian constitution and is well-structured. The tax administration has clear demarcation
between Central Government and State Governments and then between State Governments and Local Bodies.
Article 246 (Seventh Schedule) of the Indian constitution contains the legislative powers (including taxation)
of the Union government and the State Governments.
26. White collar job.
A white collar job is a person who perform professional managerial and administrative work.
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27. Blue collar jobs.
A blue collar workers is a working class person who performed manual labor they may be skilled or
unskilled labor.
28. Pink collar jobs.
It refers to someone working in the care oriented career field or in field historically considerd to be
Womens work. For example nursing, teaching, child care.
29. Examples of Factoring companies in India
 Canbank Factors Limited ,SBI Global, IFCI Factors Limited
 Export Credit Guarantee Corporation of India Ltd
 Small Industries Development Bank of India
30. Pathways Transport

It is the oldest form of transport found in hilly areas, forest areas and in remote places. These are
used by human beings for transport.
Board Expected Questions & Answers / Highher order thinking (HOTS)

1. Barter system refers to __________ . [Ans: Exchange of goods against goods]
2. Warehouse removes the hindrance of _______. [Ans: time]
3. Which one of the following is not correctly matched? [Ans: Hindrance of knowledge - Service]
4. ______ is part and parcel of human life, whether it is a king or common man. [Ans: Commerce]
5. The word vaniyam or vanipam would have had a _______ origin. [Ans: Dravidian]
6. Day market was called as _______. [Ans: Nalangadi]
7. Foreigners who transacted business were known as _______. [Ans: Yavanars]
8. Arabs who traded with Tamil were called _______. [Ans: Jonagar]
9. _____ focused on creation of wealth as the means to promote the well being of the state.[Ans: Tholkappiam]
10. Commerce serves as a valuable link between the _______ and the _______ . [Ans. producer, consumer]
11. The barter envisages mutual exchange of goods without _______ as a medium of exchange. [Ans. Money]
12. Warehouse facilities create _______ utility. [Ans: Time]
13. The growth of civilisation and standard of living of the people ___, activities were developed. [Ans: business]
14. _________ could remove all these difficulties of barter system. [Ans: Introduction of money]
15. Geographical distance separate producers and consumers are _________. [Ans: Hindrance of place]
16. _________ is overcome by means of advertisement and salesmanship. [Ans: Hindrance of knowledge]
17. Which of the following does not characterise business activity? [Ans: Making Profit]
18. which one of the following is not an economic activity [Ans: Celebrating birthday]
19. which one of the following is an not a non economicactivity[Ans: Medical advice rendered by physicians]
20. _________ industries extract to draw out products from natural sources. [Ans: Extractive]
21. ___________ is an essential part of commerce. [Ans: Trade]
22. Warehouse facilities create __________ utility. [Ans: time]
23. Textiles and vehicles are classified under _______. [Ans: genetic industries]
24. Hunting, fishing, mining are classified under __________. [Ans: extractive industries]
25. Fishery & Piggery come under _________. [Ans. construction industries]
26. Specialised services have to be rendered by persons like lawyers, Engineers etc is called [Ans: profession]
27. Which of the following cannot be classified as an auxiliary to trade? [Ans: Mining]
28. Which of the broad categories of industries covers oil refinery and sugar mills? [Ans: Secondary]
29._________ is owned by Single person [Ans: Sole proprietorship]
30. A Sole proprietor concern is free from _________ regulation. [Ans: Government]
31.The Joint Hindu Family Business is a distinct form of organisation peculiar to _________ [Ans: India]
32. _________ is created by the operation of law. [Ans. Joint Hindu Family Firm]
33. In a Joint Hindu Family Firm even a new born baby can be a _____ . [Ans: Co-parcener]
34. The ‘Karta’ in the Hindu undivided Family Business has _____ . [Ans: Unlimited Liability]
35. The Head of the Joint Hindu Family business is called____ [Ans: Karta]
36.A __________ is a distinct legal entity. [Ans: Company]
37.Maximum of __________ persons can become shareholders in a Private Company. [Ans: 200]
38. A Private Limited Company can be formed in __________ variations. [Ans: 3]
39. The features of Joint Stock Company are [Govt. MQP-2018]
RSN(I)English (Ashwin)
No separate legal entity (II) Limited liability (III) No perpetual succession
(IV) Common seal [Ans: (II) and (IV)]
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40. Which of the following are stated in the object clause of the Memorandum of Association of a public limited
company?
(i) General objectives (ii) Main objectives (iii) Ancillary objectives
(iv) Incidental objectives (v) Other objectives [Ans: (d) (ii), (iii) and (v)]
41. A Company, in which not less than fifty are percent of paidup share capital is held by a State Government, is
known as __________ Company. [Ans: Government]
42.Co-operative Society can be started [Ans: In towns and Villages]
43. The minimum number of members required to form a Co-operative Society is [Ans: 25]
44. A Co-operative Super Market supplies [Ans: Goods]
45. Dividend is declared in a Co-operative store to its members [Ans: Amount of Patronage given]
46. In a Co-operative Society, the shares of a member [Ans: Can be repaid]
47. Maximum, Membership in a Co-operative Society is [Ans: unlimited]
48. Consumers Co-operation was first successful in [Ans: England]
49. Provision of residential accommodation to the members at reasonable rates is the objective of
[Ans: housing cooperative]
50.Minority interest can be protected in [Ans: Co-operative Societies]
51. Central Co-operative Bank is established at [Ans: Districts]
52.________ is a market condition where there are very few sellers in the same product line. [Ans: Oligopoly]
53. MNCs carry the advantages of technical development________ host countries. [Ans: 10]
54. Domestic industries cannot face challenges posted by________ . [Ans: MNCs]
55. MNCs are powerful ________ entities. [Ans: economic]
56. A multinational company is also known as ________ . [Ans. Global giant]
57. Union carbide company is an example of [QY-2018] [Ans: MNC]
58. A bank, which occupies a central position in the monetary and Banking System of the country and has a
superior financial authority, is __________. [Ans: Central Bank]
59. Custodian of foreign exchange is __________. [Ans: Reserve Bank of India]
60. Clearing house of banks is __________. [Ans: Reserve Bank of India]
61. The Apex bank of India is __________. [Ans: Reserve Bank of India]
62. __________ is the nerve center of industry and commerce. [Ans: Banking]
63. The traditional function of Reserve Bank of India does not include [Ans: Government Banker]
64. The phrase “Lender of the last resort” refers to [Ans: Reserve Bank]
65. 14 major commercial banks were nationalised by the government of India in 1969 and 6 other banks were
nationalised in __________. [Ans: 1980]
66. This is a leading development bank established to promote agriculture and rural development [Ans: NABARD]
67. When money is deposited for a Fixed period it is called [Ans: Fixed Deposit]
68. Overdraft facility is available for [Ans: Current Account]
69. Time Deposits are also called as [Ans: Term Deposits]
70. Which one of the following is not a primary function of Commercial Banks?[Ans: Safety Locker Facilities]
71. Current Account is normally opened by [Ans: Business People]
72 A Credit card is a [Ans: a credit instrument]
73. Bankers are called as manufacturers of [Ans: Money]
74.A goldsmith who makes Jewel creates _______. [Ans: form utility]
75. The warehouse which is providing storage services to retailers, wholesalers, stockists and also to general
public is called : [Ans: Public warehouses]
76. The warehousing document, which is not giving document of title to goods is____
[Ans: Warehouse keeper’s receipt]
77. Which one of the following is not correctly matched? [Ans: TNWC - Cannot be transferred to others]
78. ____are formed by the State and Central Government for their exclusive uses.
[Ans: Government warehouses]
79. _______ is a document of title to goods issued by dock authorities. [Ans: Dock warrant]
80.Tram ways belongs to [Ans: Land transport]
81. Way bill is issued by [Ans: lorry]
82. A person did not disclose the heart disease while taking a life insurance policy. Which principle of insurance
he has violated? [Ans: Utmost good faith]
83. On the basis of which principle of Insurance, insurer can take over the damaged goods after paying the
compensation? [Ans: Principle of subrogation]
84. Which of the following is covered under Life Assurance policy? [Ans: Annuity Policy]
85. From the following which one is covered under Marine Insurance? [Ans: Cargo Insurance]
86. Which policy provides financial support to farmers? [Ans: Crop Insurance]
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87. The year of Insurance Act is [Ans: 1938]
88. When more than one Insurance policy is taken to cover the same subject matter is called as
[Ans. Double Insurance]
89.Outsourcing [Ans: includes off-shoring]
90. A call centre handles [Ans: only in-bound voice based business]
91. Social Responsibility is [Ans: Broader than Legal responsibility]
92. Business people have the skill to solve [Ans: Some Social problems]
93. That an Enterprise must behave as a good citizen is an Example of its responsibility towards
[Ans: Community]
94. If business is to operate in a society which is full of diverse and complicated problems, it may have
[Ans: little chance of success]
95. Which of the following is capable of doing maximum good to society? [Ans: Ethics]
96. The maturity period of commercial paper usually ranges from _____. [Ans: 90 to 365 days]
97. Under the factoring arrangement, the factor
[Ans: Collects the client’s debts or Accounts receivables]
98. Under the lease agreement, the lessee gets the right to [Ans: Use the Asset for a specified period]
99. Disinvestments of PSEs implies [Ans: Sale of equity shares to private sector / public]
100. The capital of a company is divided into number of parts each one of which are called [Ans: Share]
100. Which of the following cannot be classified as an objective of buisness? [Ans: Investment]
101. The depositary receipt issued by a company in USA are known as __________ [Ans: American Depositary
Receipts]
102. An instrument in the form of a Depositary Receipt created by the Indian Company is known as __________
[Ans: Indian Depositary Receipt]
103. Not a profit maximizing business is _______.
[Ans: Invernational bank for Reconstruction and Development]
104. Gifts and Relief are _______. [Ans: Transfer payment]
105. Nations that have major economic expansion attract [Ans: Direct Foreign Investment]
106. Domestic Trade is otherwise called as __________ [Ans: Home Trade]
107. The person who come in between the primary producer and the final consumer is called as __________ .
[Ans: Middlemen]
108. An agent is appointed by the __________. [Ans: Principal]
109. A wholesaler deals in __________ quantity of goods. [Ans: Medium]
110. Commission agents play a vital role in __________ marketing. [Ans: Telemarketing]
111. Which one of the following is not correctly matched? [Ans: Auctioneer – Profit]
112. Match the following List A with List B
List A List B
I. Broker 1. Profit
II. Wholesaler 2. Different type of products
III. Retailer 3. Single Line of products
IV. Trader 4. Brokerage [Ans: I-4, II-3, III-2, IV-1]
113.Which one of the following is not the disadvantages ofinternational business? [Ans. International peace]
114. Which of the following documents is not required in connection with an import transactions
[Ans: Shipping bill]
115. Which of the following documents are not required for obtaining an export license?[Ans: Letter of credit]
116. Which one of the following is not a document related to fulfil the customs formalities [Ans: Export license]
117. Which one of the following is not a part of export documents? [Ans: Bill of entry]
118. Exports creat : [Ans: High wage employment]
119. WTO is the only organisations dealing with the [Ans: Global trade rules]
120. Environmental protection can best be done by the efforts of [Ans: all the people]
121. Which of the following does not belong to the world Bank Group? [Ans: IMF]
122. SMEs stands for : [Ans: Small and Medium sized Enterprises]
123. _______ is the first step in the internationalization process. [Ans: License]
124. The main promoter of trade liberalization was [Ans: GATT]
125. The WTO was established to implement the final act of uruguay round agreement of _______ [Ans: GATT]
126. _______ is only a legal agreement and it is not an institution, but _______ is a permanent institution.
[Ans: GATT, WTO]
127. Globalization refers to : [Ans: A more integrated and interdependent world]
128. _______ is application of knowledge which redefine the boundaries of global business. [Ans: Technology]
129.Which one of the following element is not necessary for a contract?
[Ans: Reasonable terms and conditions]
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130. An agreement becomes a contract if : [Ans: It is enforceable by law]
131. In a standardized contract:[Ans: The individual has no choice but to accept and sign on the dotted line]
132. The correct sequence in the formation of a contract is: [Ans: Offer, acceptance, consideration, agreement]
133.A petient in a lunatic Asylum who is at intervals of sound mind:
[Ans: May contact during those intervals when he is of sound mind]
134. Where both parties are under mistake as to matter of fact, the Agreement will be: [Ans: Not void]
135. What will be the effect of mistakes as to law in force in India on the agreement? [Ans: Not voidable]
136. Which of the following statement is not correct? [Ans: Agreement caused by mutual mistake is void]
137. A contract caused by one of the parties to it being under a mistake as to matter of fact is: [Ans: Valid]
138.Quantum Merit means [Ans: as much as earned]
139. Vindictive damage is also called as [Ans: Exemplary damage]
140.A contract discharged by rescission means _______. [Ans: cancellation of the existing contract]
141. A contract discharged by novation means [Ans: substitution of existing contract for a new one]
142.Income Tax is levied by [Ans: Local Authority]
143. In case of non-payment of excise duty, interest is to be paid @ ____________on the amount of unpaid duty, or,
_________ per day, whichever is higher. [Ans: 24%, Rs.1,000]
144. The time limit for sending back manufactured goods by job-worker to the principal manufacturer is _______
days. [Ans: 180 Days]
QR CODE QUESTIONS
UNIT 1
CHAPTER 1
1. Day market was called as ___________ Ans: c) Nalangadi
2. The __________ inscriptions from AlagarMalai, Pugalur, Maangulam and Srilanka illustrate the fact that trade
during early age. Ans: Tamil – Brahmin
3. ______ remained to be the founder of trade and commerce within and outside as evidenced in various ancient
literatures like sangam. Ans: Tamilnadu
4. ______________ were the dominant players in Indian Foreign trade. Ans: Arabs
5. ___________ has been in practice since time immemorial. Ans: Commerce
6. The ______ installs check post to collect customs along the highway and the port. Ans: State government
7. Main roads known as __________ were builds for surface transportation. Ans: Peruvadi
8. Night market was called as ______________ Ans: Allangadi
9. Foreigners who transacted business during medieval period were known as ___________ Ans: Yavanars
10. The earliest trading population of India was Indus valley people, who used the word _________ Ans: Trade
11. The discovery of new all – sea routes from Europe to India via Cape of Good hope was done by __________
Ans: Vascodagama
12. Poompuhar was the sea side town which has once lead the second capital of the _____ dynasty. Ans: Chola
13. _________ sherds with Ceylon Brahmin scripts are found in an ancient Roman port. Ans: Tamil Brahmin
14. _________had a strong trading relationship with Chinese song dynasty. Ans: Cholas
15. __________ building earned name and fame in 17th and 18th century. Ans: Textile and ship
CHAPTER 2
1. ___________ units require huge capital Ans: Large scale
2. Activities undertaken with the object of earning money are called _________ Ans: Economic activity
3. Manufacturing textiles in handloom or power looms is example of __________ Ans: Small scale
4. The one who employs other is called_________ Ans: Employer
5. Medical advice rendered by physicians is called ___________ Ans: Economic activity
6. _____ should be the uppermost motive in the midst of people rendering professional services. Ans: Service
7. Economic activity – performed for earning profit are in the words of ______ Ans: James Stephenson
8. Cooking food for family is an example of _________ Ans: Non economic activity
9. Raymonds is an example for _________ Ans: Large scale
10. Production of goods are made by ______________ Ans: Manufacturer
11. _______________ are undertaken to earn money. Ans: Economic activity
12. ________ is owned, managed and controlled by persons other than government Ans: Private enterprises
13. Doing meditation is an example of _________ Ans: Non economic activity
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14. Extraction of edible oil from oil seeds in oil mills is an example for__________ Ans: Large scale
15. Maruti Suzuki is an example for _________ Ans: Joint enterprises
CHAPTER 3
1. __________ industries concerned with production of goods with the help of nature Ans: Primary
2. The industries which provide support services to other industries are known as _________
Ans: Teritiary industry
3. ___________ refers to all manufacturing units producing textile goods from cotton.
Ans: Cotton textile industry
4. The production side of business activity is referred as ___________ Ans: Industry
5. __________ industry makes products from natural sources. Ans: Extractive
6. Banks supply money for the __________ activities Ans: Business
7. Business activities are classified into ___________ categories. Ans: 2
8. Industries which are engaged in countries of dams, bridges, roads, etc are called as ______
Ans: Construction industries
9. ___________ refers to economic activities which are connected with conversion of resources into useful goods.
Ans: Industry
10. ___________is a part of commerce. Ans: Trade
11. Specialised services have to rendered by persons like lawyers, engineers, etc is called ____Ans: Profession
12. Warehouse facility creates ________ utility Ans: Time
13. Textile and vehicle are classified under______________ Ans: Assembling industry
14. Fishery and piggery comes under ___________ Ans: Genetic industries
15. Hunting, fishing and mining are classified under ____________ Ans: Extractive industry
UNIT 2
CHAPTER 4
1. ____________ is also known as individual entrepreneurship. Ans: Sole proprietorship
2. Every business undertaking is a separate and distinct business unit it is called as ________
Ans: Sole proprietorship
3. A business organisation which runs on the principle “All is he and he is all in all” is _____
Ans: Sole trading concern
4. The individuals alone may run the business or may obtain the assistance of employees under _______ mode
of organisation. Ans: Sole trader
5. ___ represents an institutional arrangement for carrying on any kind of business activity.
6. ________ can be distinguished from other undertakings on the basis of its ownership management and control.
Ans: Sole trader
7. ____________ may be owned and controlled by a single individual or by a group of individuals who have entered
into a formal or informal agreement to jointly conduct the business. Ans: Sole proprietorship
8. Specify the type of business where in the business unit is small and the financial resources are limited.
9. __________has its own identity and separate ownership. Ans: Sole trader
10. The sole trader is entitled to enjoy all ___________ of the business. Ans: Profit
11. There is a limit to__________ ability of sole trader. Ans: Managerial
12. No ____________need to be observed in the sole proprietary or proprietorship form of organisation management
or in its closure. Ans: Legal formalities
13. There is a direct relationship between effort and reward in ___________ type of organisation.
14. A sole proprietorship concern is free from ____________ regulations. Ans: Government
15. ___________ is an important as well as specific advantage of sole proprietorship. Ans: Small capital
CHAPTER 5
RSN Englishwho
1. A partner (Ashwin)
takes an active part in the conduct of the partnership business is known as_________
Ans: Working partner
2. Breach of agreement which makes the business impracticable_____ Ans: Dissolution of firm
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3. A ____ is one whose association is not known to the general public. Ans: Secret partner
4. A ____________ has no contractual capacity Ans: Minor
5. An unregistered firm cannot file a suit to enforces its claims against third parties, if such rights arise out of
a contract, ___________ Ans: Dissolution of partnership
6. In the case of partnership at-will, a partner gives _________ notice of his intention to dissolve the partnership
Ans: 14 days
7. Joint Hindu Family system is practices only in_____ Ans: India
8. In type of organisation ________ a son inherits right by birth in the property of joint family
Ans: Joint Hindu family
9. The year of Hindu Succession Act was passed in the year Ans: 1956
10. __________ means for paying the debts of the firm only the assert of the business will be utilized and not the
personal properties Ans: Limited liability
11. According to Hindu Law, a Hindu can inherit the property from ________ Ans: three generation
12. ________ mode of organisation is very popular in the service sector. Ans: Limited liability partnership
13. A managing partner is entitled to any _______ for the work done by him, unless there is an agreement to the
contrary. Ans: Remuneration
14. The year of Hindu Succession Act is ______ Ans: Dayabhaga Law
15. A partnership is formed for a definite period of time it is known as Ans: Partnership for a fixed term
CHAPTER 6
1. A company has ____________
a) Common seal b) Separate legal entity
c) Perpetual succession d) All of these Ans:d) All of these
2. __________ was passed in Indian Parliament in the year 2013 Ans: Indian Companies act
3. The Indian Companies Act came into force on Ans: 2013 September 15
4. The liability of the shareholder in a company is __________ Ans: Limited liability
5. The State Government or Central Government should have minimum 51% of paid up share capital of _____
Ans: Government company
6. Any document which inviting the public to buy its shares and debenture are called___ Ans: Prospectus
7. According to Indian Companies Act, 2013 the maximum number of members in a private limited company was
Ans: 200
8. A company is administered and managed by its _________ Ans: Board of directors
9. The minimum number of member in a private limited company is ________ Ans: 2
10. The principle of voting practiced in a joint of companies is _________ Ans: 1 share 1 vote
CHAPTER 7
1. The business organisation which earns profit through eliminate the middlemen and share the profit among the
members is __________ Ans: Cooperative
2. The principle of ‘ One man One vote’ is followed in _______ Ans: Cooperative organisation
3. Minimum number of members in cooperative organisation is _________ Ans: 25
4. ‘ Rochdale Society of Equitable Pioneers’ was started in the year _________ Ans: 1844
5. The principle of ‘Each for all, All for each’ is followed in __________ Ans: Co operativeorganisation
6. __________ which residential accommodation to their member on ownership basis or on rent.
Ans: Housing co operative
7. According to Co operative Act, a sum not exceed _________ %of the surplus can be utilised for promoting the
welfare of the locality in which the co operative is located. Ans: 10%
8. The advantage enjoyed by co operative is more than any other business organisation.
a) Government support b) Tax concession
c) Welfare of public d) All of these Ans: All of these
9. The liability of members of co operativeorganisation is of ____________ Ans: Limited liability
10. Co operation is better forming, better business and better living according to___ Ans: Sir Horace Plunkett
CHAPTER 8
1. Transnational corporation denotes __________ Ans: Multinational company
2. _____ helps the host country to increase their exports which results in an increase in national income.
Ans: Export
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3. Which one is incorrect from the following? Ans: No danger to independence
4. _________ is a market condition where there are very few sellers in the same product line. Ans: Oligopoly
5. Which one is the demerit of the MNC of the given below? Ans: Danger of independence
6. Which is possible through MNC of the following?
a) Popular utilisation of local idle resources b) Technical development
c) Low cost of labour d) All of these Ans: d) All of these
7. A_____________ is one which is incorporated in one country, but whose operation extend beyond the whole
country and which carries on business in other countries in addition to the home country.
Ans: Multinational Company
8. In India, many Indian companies acquired _______ quality certificate, due to fear, competition posed by MNC.
Ans: ISO 9000
CHAPTER 9
1. A_____ is created by a special act of the parliament or the state legislature. Ans: Public corporation
2. The ______ has authority to appoint majority of directors, on the board of directors of the government company.
Ans: Government
3. The departmental undertaking are managed by __________ Ans: Civil servants
4. Suitable business organisation in Defence and Atomic power industries __Ans: Departmental undertaking
5. Tamilnadu Transport Corporation is an example for_____________ Ans: Government company
6. Indian Railway and Port and Telegram is an example for ________ Ans: Departmental undertaking
7. Life Insurance Corporation, Indian Airlines are the example for__________ Ans: Public corporation
8. A ____________ is created by executive decision of the government, without seeking the approval of the parliament
or the state legislature. Ans: Government company
UNIT 3
CHAPTER 10
1. ___________ is responsible authority to maintain the public confidence in the banking system.
Ans: Reserve Bank of India
2. The broad guidelines for all banking operations in the country are formulated by ______ Ans: Central bank
3. The Banking Regulation Act was established in the year _________ Ans: 1949
4. The functions of RBI are includes ___________
a) Promotion function b) Leadership and supervisory function
c) Traditional function d) All of these Ans: d) All of these
5. An act was passed in parliament to take over the imperial bank of India by the government and___________
came into being. Ans: State Bank of India
6. Bank of Hindustan was the first bank in India established in ________ Ans: 1770
7. ____________ is the nerve centre of industrial commerce in a country. Ans: Banking service
8. The head of the RBI is situated at __________ Ans: Mumbai
CHAPTER 11
1. ‘BharatiyaMahila Bank’ was merged with which bank on 31st March 2017? Ans: State Bank of India
2. Banks are classified on the basis of ____________
a) Status given by RBI b) Functions
c) Ownership d) All of these Ans: d) All of these
3. When was Land Mortgage Act was passed? Ans: 1930
4. How many commercial banks are nationalised on 19 July 1969?
th
Ans: 14
5. Indian Banking Act came into force from _________ Ans: 1949
6. What is meant by LDB’s according to co operative bank ? Ans: Land Development Bank
7. The capital of RRB’s sponsored by Central government, State government and a sponsor bank in the ratio of
Ans: 50: 15: 30
8. Which bank is not a Regional Rural Bank? Ans: National Housing Bank
9. Which of the following is not the objective of development banks? Ans: Earn profit
10. Which bank is not the Multi Lateral Development Bank? Ans: EXIM Bank
11. Which of the following is the best example of Commercial Bank? Ans: A bank that accepts and lends money
RSN
12. InEnglish (Ashwin)
which year government of India first time nationalised 14 banks? Ans: 1969
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CHAPTER 12
1. Which one of the following comes under agency function of commercial bank? Ans: Transfer of fund
2. Funds transferred through mobile phones or internet banking on real time basis is called
Ans: Immediate Payment Service (IMPS)
3. A credit facility extended widely to current account holder is _____________ Ans: Overdrafting
4. Which of the following is not true about KYC ( Know Your Customer )?
Ans: Immediate Payment Service (IMPS)
5. Which is not the characteristic feature of Fixed Deposit?
Ans: No loan facility is available on Fixed Deposit
6. A mechanism where by a centralised data base of all bank related operations is maintained for anywhere and
anytime access is known as ___________ Ans: Core banking
7. Offering of insurance policies or products by a bank is associated with another insurance company is
called____________ Ans: Bank assurance
8.The minimum money transfer limit through RTGS is ______________ Ans: Rs. 2 Lakhs
9. Rupay cards services were launched on __________ Ans: March 2012
10. When was RTGS launched? Ans: 2013
11. Which is of the following is not the functions of commercial banks? Ans: Issue of paper notes
CHAPTER 13
1. In the year __________ TNWC was established? Ans: 1959
2. To protect and preserve the goods from deterioration is the objective of __________ Ans: Warehousing
3. Warehouses used for the storage of foods grains is known as ___________ Ans: Village warehouse
4. ___________ can be negotiated or transferred to others. Ans: Warehouse warrant
5. _____ represents only an acknowledgement for the receipt of goods by warehouse. Ans: Warehouse receipt
6. Warehouse owned by the banks and railways are known as_____________ Ans: Institutional warehouse
7. Effective price support operation for safeguarding the interest of farmers in the object of ____________
Ans: Food Corporation of India (FCI)
8. Receiving products from different places, mix and repack them as per client’s requirement is known as ___________
Ans: Transit mixing
9. Delegate products preserved under Humanity controlled environment is known as _______
Ans: Climate Controlled warehouse
10. When was WDRA established? Ans: 2010
CHAPTER 14
1. In _____________ transport perishable goods like fruits, vegetables and meat can be transported.
Ans: Air transport
2. From the following which is the common carrier? Ans: City buses
3. Pathway transport is operated by using __________ Ans: Human beings
4. Documents issued for hiring the ship wholly or substantially is known as ________ Ans: Charter party
5. When the small boats and steamers are operated on rivers to transport goods is known as
Ans: Inland waterways
6. _________ is considered as the slowest means of transport. Ans: Water transport
7. Transport which can be operated in the place where road construction is impractical and costly is __________
Ans: Ropeway transport
8. Tramway is the one of the mode of ____________ Ans: Surface transport
9. __________ is the costliest goods of transport. Ans: Air transport
10. ____________ serves as an official receipt of goods in waterways. Ans: Bill of lading
CHAPTER 15
1. The insurance which covers life of animals like bulls, cows is called as __________ Ans: Cattle insurance
2. ________ is the cash value of the policy which is payable to policy holder if he/she decides to terminate the
insurance contract. Ans: Surrender value
3. Levy of higher taxes is a kind of _________ Ans: Economic causes
4. When a insurance company transfers a part of the risk to other insurance company is known as __________
Ans: Reinsurance
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5. After settling the claims, if the ownership rights of the subject matter passes onto the insurer in known as __
Ans: Subrogation
6. The risk which have the possibility of gain as well as possibility of loss are _______ Ans: Speculative risk
7. The policy which provides regular income to the insured after a certain age is known asAns:Annuity policy
8. ‘Individual Mediclaim’ comes under the __________ insurance. Ans: Health insurance
9. Insurance which insures risk like losses relating to production of rice, wheat, etc is called as ___________
Ans: Crop insurance
10. In the year ________ the IRDAI Act was passed. Ans: 1999
CHAPTER 16
1. Buying and selling of goods and services to electronic networks to Ans: E-Commerce
2. The right to use a firm’s business model and brand for a prescribed period of time is calledAns: Franchising
3. Supply Chain Management focuses on Ans: Profit maximisation
4. When the factor does not undertake credit risk, it is known as Ans: Without Resource Factoring
5. Financing the firm only after collecting amount on maturity from debtors is termed as Ans:Maturity factoring
6. A logical extension of transportation of a goods distribution system is Ans: Logistics
7. Logistics involving the forward and reverse flow of
a) Services b) Cash c) Goods d) All of these Ans:d) All of these
8. Non-recourse purchase by a financial institution of receivable arising from an export of goods and services
are termed as Ans: Forfaiting
9. Franchising by giving the rights covering all business aspects denotes Ans: Business format franchising
10. ____ refers to outsourcing the work which is routine in nature, to an outside agency Ans: BPO
11. Franchising is practised exclusively in a manufacture’s product sphere is known as
Ans: Product franchising
12. _________ refers to outsourcing of Knowledge Based Process Ans: KPO
13.The main purpose of supply chain management is Ans: Integrating Supply and demand management
14. Sale of trade debts to a financial institution for a discount is termed as Ans: Factoring
15. E-Commerce model includes
a) B2B b) B2C C) C2B d) All of these Ans:d) All of these
CHAPTER 17
1. Business is a ________ of society Ans: Sub-system
2. Which of the following is the interest group responsible towards business? Ans: All of these
3. Which one of the following is the economic responsibility of the business? Ans: Earning profit
4. Firms should discharge the following responsibility towards investors,
a) Ensuring safety of investment b) Regular payment of interest
c) Timely repayment of principle d) All of these Ans: d) All of these
5. Discretionary responsibility includes
a) Flood relief b) Charitable contribution
c) Voluntary obligation d) All of these Ans: d) All of these
6. Businessmen should assume that __________ obligations commensurate with their social power Ans: Social
7. The responsibilities of business towards its employees include
a) Carrier prospectus b) Proper working conditions
c) Welfare amenities d) All of these Ans: d) All of these
8. Social responsibility creates good relationship with ________
a) Workers b) Consumers c) All of these d) Suppliers Ans: c) All of these
9. Which one of the following is the responsibility of business towards employees? Ans: Regular payments
10. Stakeholders of a business organisation include
a) Customers b) Shareholders c) Employees d) All of these Ans: d) All of these
CHAPTER 18
1. Achieving a balance among individual goals, societal goals, economic goals and social goals is
Ans: Corporate governance
2. Comparison of business processes and performance merits to the best players in the industry as a whole is
RSN English (Ashwin) Ans: Bench marking
3. Process to process comparison within the organisation denotes Ans: Internal bench marking
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4. Ethical values should be followed by
a) Higher level management b) Middle level managers
c) Lower level management d) All of them Ans: d) All of them
5. An enterprise operating in several countries but managed from one county refers to Ans: MNC
6. Business ethics are vital and lead to
a) Great success b) Earns public confidence c) Improves public image d) All of these
Ans: All of these
7. Competitor – to- competitor comparison is termed as Ans: Competitive bench marking
8. Promotion of fairness, transparency and accountability denote Ans: Corporate governance
9. The organisation principles are defined and written in the document called Ans: Code
10. Operational branches of MNCs are situated at Ans: Host country
11. A set of moral standards to be followed by owners, managers and business people denotes
Ans: Business ethics
12. The country where the head quarters of a MNCs is located is called ____________ Ans: Home country
CHAPTER 19
1. Finance through sale or mortgage of book debts is known as Ans: Factoring
2. Commercial paper is an ___________ money market instrument. Ans: Unsecured
3. Acquisition and utilisation of funds by a business denotes Ans: Finance
4. An arrangement between the banker and the customer to overdraw the required amount from its current
deposit account Ans: Overdraft
5. Business finance comprises
a) Long term finance b) Short term finance c) Medium term finance d) All of these Ans: d) All of these
6. Act of selling a bill to obtain payment for it before its maturity is called Ans: Discounting
7. A loan given without any security or with personal security Ans: Clean loan
8. A loan taken from the bank by lodging with the banker the title deeds of immovable assets refers to
Ans: Mortgage
9. A customer transfers the possession of an article with the creditor (banker) and receives loan on the basis
of such security under __________ Ans: Pledge
10. A loan taken on the security of movable asset is called Ans: Hypothecation
CHAPTER 20
1. Where are GDRs negotiable? Ans: All over the world
2. Monetary interactions between two or more countries is known as Ans: International finance
3. Expand GDR Ans: Global Depository Receipt
4. Expand ECB Ans: External Commercial Borrowing
5. Where are ADRs negotiable? Ans: USA
6. The bonds issued by an Indian company in foreign currency are _________ Ans: FCCB
7. Policies which are made to govern the import and export trade denote ___________ Ans: EXIM policies
8. ___________ Bank etc. mediates and resolves financial disputes among different nations. Ans: World
9. A denomination of ADRs is quoted in the currency of Ans: US Dollars
10. Inssuance of deposits, receipts is based on the increase of demand in the Ans: International markets
11. Expand ADR Ans: American Depository Receipt
12. A Negotiable financial instrument issued by a bank represents a foreign’s companies publically traded securities
Ans: Depository receipt
13. ________ facilitates comparison of financial statements made by various countries Ans: IFRS
14. _____________ ascertains the economic status of the various countries Ans: International debts
15. Which is the nature of FCCB?
a) Unsecured b) Caries interest coupon c) Convertible debt instrument d) All of these
Ans: d) All of these
CHAPTER 21
1. Which one of the following gives employment opportunities to a larger number of people in India?
Ans: MSMEs
2.Investment limit of medium enterprise under service sector does not exceed_________ crores. Ans:Rs. 5
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3. Experts contribution of MSMEs to Indian economy is Ans: 40%
4. MSME supplies _______________ to large scale industries. Ans: All
5. TNCDW was established in the year________________ Ans: 1983
6. _______________ is one of the main pillars of progress of India. Ans: Rural development
7. ______________ percent of the people living in India are below the poverty line. Ans: 20.09%
8. _______________ need not require a huge amount of capital to start the unit. Ans: MSMEs
9. Abbreviation of NGO Ans: Non-Government Organization
10. The ideal size of a self help Group ranges between ______ and _____________ members. Ans: 10,20
CHAPTER 22
1. Foreign trade is classified into______
a) Import trade b) Export trade c) Entrepot trade d) All of these Ans:d) All of these
2. In Olden days goods were exchanged for goods. This method is called __________ Ans: Barter system
3. India imports Petroleum products from Gulf countries. This is one of the example of Ans: Import trade
4. Importing of goods from one country and exporting the same to foreign country it is called________ trade.
Ans: Re-export trade
5. Mostly shipping and air transports are use for carriage of good in ____trade. Ans: International trade
6. It is a retail organization owned, managed and controlled by the consumer themselves_________.
Ans: Consumer co-operative stores
7. Which of the following act as nation guardians of trade, commerce and industry?
Ans: Champers of commerce and Industry Associations
8. Buying and selling of goods and services within the boundaries of a nation are________. Ans: Internal trade
9. Export trade is necessary to sell domestic___________ goods. Ans: Surplus
10. Home trade is classified into________ Ans: Retail trade and Whole sale trade
CHAPTER 23
1. This type of channel of distribution, Need no middleman Ans: E-commerce
2. The person who guarantees the principal regarding the collection of cash from credit sales is called as _____.
Ans: Del-credere agent
3. _______ is the first link, whereas_____ is the last link in the chains of distribution of goods.
Ans: Wholesalers, Retailers
4. Retailers collect General Service Taxes and pay it to the Government which leads to ____ in national Income.
Ans: Increase
5. Mercantile Agents are also called as _________. Ans: Functional Middle men
6. Distribution of goods in small quantities to the end consumers is called____________ Ans:Retail trade
7. Who is called Retail Wholesaler? Ans: Involved in wholesale and retail trade
8. _____________ take title to the goods they don’t actually take possession of them or handle them.
Ans: Drop shippers
9. Which one of the following is a type of channel of distribution? Ans: Channels based on the middlemen
10. Who bargains for another and receives commission for his service is called Ans: Broker
CHAPTER 24
1. Federation of Indian Chambers of Commerce and Industry (FICCI) is located at Ans: New Delhi
2. Which type of traders move form one place to another place in search of customers? Ans: Mobile traders
3. Chambers of commerce and Industry Associations is one of the _____________
Ans: Non profit making organisation
4. What is called multiple shops in USA? Ans: Chain stores
5. FORUM Mall in Chennai is one of the example of _________. Ans: Shopping malls
6. All the variety of products sold under one roof is called as ________ Ans: General Stores
7. Retailing creates ___________
a) Time utility b) Place utility c) Ownership utility d) All of these Ans: d) All of these
8. If all the sales are made in the shops on cash basis only. It results in ________.
Ans: c) No bad debts and No reduction of working capital
9. How many persons are required to start the consumer Co-operative stores? Ans: 25 persons
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CHAPTER 25
1. Business transactions transacted within geographical boundaries of a country are termed as _______
Ans: Domestic business
2. International business transaction are settled by ________ Ans: Foreign currency
3. Domestic business transaction are settled by _________ Ans: Domestic currency
4. Business activities which take place beyond the geographical limits of the country is termed as
Ans: International business
5. Movement of intellectual property among the countries is termed as Ans: International business
6. A mechanism whereby countries with surplus resources have to exchange with countries with deficit resources
is known as _________ Ans: International business
7. If a firm enters into a contract with another firm in order to get certain components of goods produced is known
as _________ Ans: Outsourcing
8. Where a country purchase goods from a firm or another country. It is called_______ Ans: Import trade
9. Where the business transaction transcends beyond to the boundaries of a country. It is termed as _________
Ans: Foreign business
10. Foreign trade is to be conducted strictlu is accordance with _________ policy. Ans: Export and import
11. If a firm of country sells goods and services to a firm of another country. It is __________Ans: Export trade
12. The greed of earning foreign exchange through the export of essential commodities may result_________
Ans: Shortage in home country
13. If a firm of country imports goods for the purpose of exporting the same goods to some other, it is
called___________ Ans: Entrepot trade
14. Where countries trade with one another, it has to exchange the goods and services on _____ basis.
Ans: Foreign currency
CHAPTER 26
1. Indent are classified into ____ types Ans: Three
2. An intent which provides a complete freedom to exporters to choose the type of goods, price and quality is
known as Ans: Open indent
3. Based on different categories of goods _______ types of shipping bills are prepared. Ans: Three
4. ___________ is obtained to avoid open the consignment for the purpose of calculate custos duties.
Ans: Consular invoice
5. An guarantee given by the importers bank to the exporter regarding amount in the bill which will be duly
honoured is termed as Ans: Letter of credit
6. EXIM banks was set up in the year_______ Ans: 1982
7. Exporters engage ________ to complete all customs and shipping related formalities Ans: Forwarding agent
8. Commercial banks provide financial assistance to enable exporters to purchase raw materials in order to
create finished goods is known as Ans: Pre-shipment finance
9. An assistance granted for the purpose of paying brokerage to agent engaged in export promotion activity is
Ans: Post-shipment finance
CHAPTER 27
1. The WTO was established on_________ Ans: 1st January 1995
2. International Bank for Reconstruction and Development is commonly know as _______ Ans: World Bank
3. International financial corporation is head quartered at Ans: Washington
4. International Centre for settlement of investment disputes among the members countries was setup into
the ________ year. Ans: 1956
5. On 29th July 2016 ___________ has member in WTO Ans: 164 countries
6. International Monetary Fund (IMF) was established in Ans: 27th December 1945
CHAPTER 28
1. Where a country’s export is more than it import, it is called_________ Ans: Surplus Balance of payment
2. Capital Transactions are not recorded in ________ Ans: Balance of trade
3. The difference between to value of import and export during a year represents____ Ans: Balance of trade
4. Which of the following position provides protection to government and domestic business.
Ans: Surplus Balance of payment
5. If country’s import is more than the export it is called ___________ Ans: Deficit balance of payment
6. Commercial and Co-operatives banks External financial assets and liabilities includes
Ans: Banking capital
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CHAPTER 29
1. Agreement + Enforceability denotes Ans: Contract
2. If both the parties commit to perform their respective promise, it is called Ans: Bilateral contract
3. Offer + Acceptance represents Ans: Agreement
4. An agreement not enforceable by law does not become_______ Ans: Contract
5. If a contract is forbidden by law, it is called________ Ans: Illegal contract
6. Indian Contract Act has ________ parts Ans: Two
7. Contracts created by law refers to Ans: Quasi Contract
8. In which contract only one part of the contract has performed his promise and the other has yet to perform his
promise Ans: Unilateral contract
CHAPTER 30
1. A contract in which both the parties commit to perform their respective promises it is called
Ans: Bilateral contract
2. Where only one party has performed his promise or obligation, the other party has yet to perform his share of
promise or obligation, such contract is called Ans: Unilateral contract
3. Which of these parties cannot demand performance of promise? Ans: Stranger to a contract
4. A contract where in which both the parties have fulfilled their obligations under the contract denotes
Ans: Executed contract
5. A.B.C jointly promised to pay Rs.50,000 to D. Before performance of the contract. C dies. Here the contract
Ans: Should be performed by A and B along with C’s legal representatives
6. Which of the persons can performe the contract?
a) Agent of the promisor b) Legal representative of promisor
c) Promisor alone d) All of these Ans: d) All of these
7. A person is said to be a third person if he is not a ___________ Ans: Agent
8. An agreement which fulfil all the essential elements prescribed by the law on the basis of its creation is called
Ans: Valid contract
9. Where obligation of one to another imposed by law independent of an agreement between the parties, the
agreement emerging therefore is called Ans: Quasi contract
10. The contracts which are immoral or opposed to public policy are termed as Ans: Illegal contract
CHAPTER 31
1. An agreement which becomes impossible to perform under various circumstances become Ans: Void
2. An insolvent is discharged from __________________ incurred prior to his adjudication. Ans: All liability
3. On the valid performance of the contractual obligation by the parties, the contract Ans: is discharged
4. Discharged by mutual agreement may involves ________________
a) Novation b) Alteration c) Recission d) All of these Ans: d) All of these
5. Which one is the kind of contract? Ans: Implied contract
6. An agreement to do an act impossible in itself under Section 56 is __________ Ans: Void
7. The compensation given for breach of contract is___________ Ans: Damage
8. __ may be given at the time of formation of the contract or subsequent to its formation. Ans: Express consent
9. ____ is an order passed by a competent court restraining a person from doing some act. Ans: Injection
CHAPTER 32
1. Period of assessment year is ____________ Ans: 1st Apr to 31st Mar
2. Agricultural income in India is _________ Ans: Fully exempted
3. _______________ is one of the largest system in the world Ans: India taxation system
4. The aggregate year income under five heads is termed as ______________ Ans: Total income
5. The year in which assessment of income is done is called Ans: Assessment year
6. The term income includes
a) Income from business and income from profession b) Salary
c) Income from house property d) All of these Ans: d) All of these
RSN
7. TheEnglish (Ashwin)
year in which income is earned is called as ___________ Ans: Previous year
8. The income tax return of previous year’s income is filed in the year _______Ans: Relevant assessment year
9. The person who are covered under income tax are called Ans: Assessee
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10. Income tax is a __________ Ans: Direct tax
CHAPTER 33
1. GST stands for Ans: Goods and Services Tax
2. Which is one is Indirect Tax?
a) SGST b) IGST c) CGST d) All of these Ans: d) All of these
3. Traders having annual turnover within a state, below Rs. ___________ are exempted from GST.
Ans: Rs. 20,00,000
4. What is IGST? Ans: Integrated Goods and Services Tax
5. Who is the chairman of GST Council? Ans: Finance Minister
6. What kind of tax the GST is? Ans: Indirect Tax
7. The foremost objective of GST is to create a common market with ______ tax rate in India. Ans: Uniform
8. GST Act has proposed four tax rate i. e., _____________ Ans: 5%, 12%, 18% and 28%
9. GST is applicable to all goods and services except ________________
Ans: Alcohol and Specific petroleum products
10. In India GST came into effect from? Ans: 1st July 2017
Scan me For Audio Books
 E-guide
 Colour Books
 Audio for Poem
These are all given in the form of audio.
Benefits of Audio Books
 Audio help us to know the tone of words.
 It helps us not to carry the printed material.
Dhosth.in  At the same time, we can learn our subjects in any time.
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Sl. No. YEARS THEIR EVENTS
1 1956 Hindu law and Hindu Succession Act
2 1932 Indian Partnership Act
3 2008 Limited Liability Partnership Act
4 1956 The Companies Act
5 1844 Co-operative movement
6 1912 Co-operative Societies Act
7 1770 Bank of Hindustan (1st Bank of India)
8 1786 The General Bank of India
9 1806 Bank of Calcutta (1st Joint Stock Bank)
10 1809 Bank of Calcutta renamed as “Bank of Bengal”
11 1840 Bank of Bombay
12 1843 Bank of Madras
13 1881 Audh Bank
14 1894 Audh Bank renamed as “Punjab National Bank”
15 1949 Banking Regulation Act
16 1969 14 banks were nationalized
17 1980 6 banks were subsequently nationalised in India
18 27 Jan, 1921 The Presidential bank was amalgamated into the

Imperial Bank of India
19 1 July, 1955 Act which was passed in Parliament to take over

the Imperial Bank of India
20 1935 RBI came into effect
21 1926 Hilton Young Commission or Royal Commission
22 1937 RBI’s head office was moved from Calcutta to

Mumbai
23 1997 Basel Committee
24 1999 Foreign Exchange Management Act
25 15 July, 2010 Rupee symbol changed from Rs. to
26. 8 Nov, 2016 Demonetization
27. 1964 IDBI established as Development Bank
28. 2004 Transformed into Public Sector Commercial Bank

of IDBI
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29. 2008 Development and Commercial bank was named as

IDBI
30. 1983
TamilNadu Cooperative Societies Act
31. 1963
National Cooperative Development Corporation (NCDC)
32. Industrial Finance Corporation of India (IFCI)

1948
IFCI undertaken by Government as Industrial Public
33.
1993 Limited Company
34. Small Industries Development Bank of India
1998
35. Micro Units Development and Refinance Agency Bank

8 Apr, 2015 (MUDRA)
36. 12 July, 1982 National Bank for Agricultural and Rural Development
(NABARD)
1958 National Agricultural Cooperative Marketing

37. Federation of India Ltd (NAFED)
38. 2002 Multi State Cooperative Societies Act
39. 1976 Regional Rural Bank
40. 1981 Export Import Bank of India Act (EXIM)
41. 1987 National Housing Bank Act
42. 1996 Local Area Bank Scheme
43. 1957 TamilNadu Money Lenders Act issued by Tahsildars
44. 1943 TamilNadu Pawn Brokers Act
45. 1982 Chit Fund Act
46. 1980 Foreign Banks begun their operation

47. 19 Nov, 2013 BharatiyaMahila Bank
48. 31 Mar, 2017 BharatiyaMahila Bank merged with SBI
49. 1978 International Banking Act
50. 1881 Negotiable Instruments Act
51. 2005 National Electronic Funds Transfer (NEFT)
52. 2013 Real Time Gross Settlement Systems (RTGS)
53. 1995 Electronic Clearing Services (ECS)
54. Nov, 2010 Immediate Payment Service (IMPS) launched by the
National Payments Corporation of India
55. 2014 Funds transfer through SMS
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56. Mar, 2012 Rupay Cards Services launched by the National
Payments Corporation of India
57. 2007 Warehousing Development and Regulatory Authority

Act
58. 1964 Food Corporation of India Act
59. 1956 Agricultural Produce Corporation Act
60. 30 Oct, 1947 General Agreement on Tariffs and Trade (GATT) which
was signed on this date and came into effect on Jan 1,
1948 and ended on 1994
61. 1995 World Trade Organisation (WTO) was established which

is located in Geneva, Switzerland
62. 29 July, 2016
164 member countries joined WTO
International Bank for Reconstruction and
63. 1944
Development (World Bank) was established which is
located at Washington, DC
64. 27 Dec, 1945 International Monetary Fund (IMF) was established

with 189 member countries
65. 1960 International Development Association (IDA)
66. International Finance Corporation (IFC)

1956
67. International Centre for settlement of Investment
1966 Disputes
1969 Special Drawing Rights (SDR)

68.
1 Sept, 1872 Indian Contract Act
69.
1961 Income Tax Act
70.
1 July, 2017 GST passed on 12.4.2017, came into effect on 1.7.2017
71.
72. 1844 Rochdale Society of Equitable Pioneers
If you learn like this, it is easy to win

1. It is easy to win any action if you are interested.
2. Try to learn with curiosity rather than just studying.
3. It is important to keep your mind clear while studying.
4. When learning, mark the main points in a diary, syllabus-wise.
5. Improving memory is important in frequent practice of learning.
6. It is good to study the lessons in class on a daily basis.
7. It is better to write once than to repeat.
8. If you understand the school subjects, the college education will be like a sugar cane.
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S. NO SECTIONS EVENTS
1. Sec 2(a) Offer (Proposal)
2. Sec 2(b) Acceptance
3. Sec 2(e) Agreement
4. Sec 2(d) Consideration
5. Sec 2(h) Contract
6. Sec 23 Lawful object
7. Sec 13&14 Free consent
8. Sec 11 Capacity of parties
9. Sec 29 Certainty of terms
10. Sec 56 Possibility of Performance
11. Sec 2(j) Void contract
12. Sec 2(i) Voidable contract
13. Sec 9 Express contract
14. Sec 37 Performance of Contract
15. Sec 38 Valid Tender of Performance
16. Sec 40 Para 1 Promisor himself
17. Sec 40 Para 2 Agent
18. Sec 37 Para 2 Representations
19. Sec 41 Third persons
20. Sec 42 Devolution of Joint liabilities
21. Sec 45 Devolution of Joint rights
22. Sec 46 Performance within a reasonable time
23. Sec 47 Specified time and place for performance
24. Sec 48 Performance on a certain day
25. Sec 49 Performance of promise when no place is fixed and

without application
26. Sec 50 Performance is prescribed by the Promisee
27. Sec 2(f) Reciprocal promises

Appropriation of payments
28. Sec (59-61)
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29. Sec 60 Application of payment where debt to be discharged

is not indicated
Application of payment where neither party

30. Sec 61 appropriates
31. Sec 73, 1872 Compensation for loss or damage caused by a party
for breach of contract
32. Sec 2(7) Assessee
33. Sec 2(31) Person
34. Sec 2(9) Assessment year
35. Sec 3 Previous year
36. Sec 2(24) Income
37. Sec 17 Salary taxable
38. Sec 45 Capital gain chargeable
39. Sec 41-59 Deemed income
40. Sec 56(2)(vi) Gift and others
41. Sec 2(1A) Agricultural Income
42. Sec 14, 1961 Computation of total income of an assessee
43. Sec 15-17 Income from ‘Salaries’
44. Sec 22-27 Income from ‘House Property’
45. Sec 28-44 Income from profits and gains of Business or

Profession
Sec 45-55 Income from ‘Capital Gains’

46.
Sec 56-59 Income from ‘Other Sources’
47.
Sec 80B(5) Gross Total Income (GTI)
48.
Sec 2(45) Total Income (TI)
49.
80C to 80U Deductions from GTI
50.
Sec 80C Deductions from PF, Life Insurance Premium,
51.
Investment
Sec 80CCC Deduction for premium paid annually

52.
Sec 80CCD Deduction for employees contribution to Pension
53.
account

Sec 80TTA Deduction from GTI for interest on Savings Bank
54. Account
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55. Sec 80GG Deduction for house rent paid where HRA is not
received
56. Sec 80E Deduction for interest on education loan for higher
studies
57. Sec 80EE Deduction on Home Loan interest for 1st time home
owners
58. Sec 80CCG Rajiv Gandhi Equity Saving Scheme (RGESS)
59. Sec 80D Deduction for the premium paid for Medical
Insurance
60. Sec 80DDB Deduction for medical expenditure on self or

dependent relative
61. Sec 80U Deduction for person suffering from physical

disability
62. Sec 80G Deduction for donations towards social causes
63. Sec 80GGB Deductions on contributions given by companies to

political parties
64. Sec 80GGC Deductions on contributions given by any persons to
political parties
65. Sec 80RRB Deduction with respect to any Income by way of
Royalty of a Patent
66. Sec 80TTB
Deduction of interest on deposits for senior citizens
67. Sec 40
Dissolution by Agreement
68. Sec 41
Compulsory Dissolution
69. Sec 42
On the happening of certain contingencies
70. Sec 43
Dissolution by Notice
71. Sec 44
Dissolution by Court

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EXPANSION
NGO NON GOVERNMENT ORGANISATION
HUF HINDU UNDIVIDED FAMILY
LLP LIMITED LIABILITY PARTNERSHIP
MOA MEMORANDUM OF ASSOCIATION
AOA ARTICLES OF ASSOCIATION
OPC ONE PERSON COMPANY
PDS PUBLIC DISTRIBUTION SYSTEM
MNC MULTI NATINAL COMPANY
RBI RESERVE BANK OF INDIA
IBRD INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
IMF INTERNATIONAL MONETARY FUND
CRR CASH RESERVE RATIO
SLR STATUTORY LIQUIDITY RATIO
NABARD NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
INR INDIAN RUPEE
IDBI INDUSTRIES FINANCE BANK OF INDIA
IFCI INDUSTRIES FINANCE CORPORATION OF INDIA
SIDBI SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
NCDC NATIONAL COOPERATIVE DEVELOPMENT CORPORATION
NAFED
LMB LAND MORTGAGE BANK
LDB LAND DEVELOPMENT BANK
EXIM EXPORT IMPORT TRADE
NHB NATIONAL HOUSING BANK
LAB LOCAL AREA BANK
SFBs SMALL FINANCE BANKS
NBFC NON-BANKING FINANCE COMPANIES
Bcs BANKING CORRESPONDENTs
ATM AUTOMATIC TELLER MACHINE
FD FIXED DEPOSIT
RD RECURRING DEPOSIT
EMI EQATED MONTHLY INSTALLMENT
IRDAI INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NEFT NATIONAL ELECTRONIC FUNDS TRANSFER
RTGS REAL TIME GROSS SETTLEMENT
ECS ELECTRONIC CLEARING SERVICES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD
RSN EnglishCENTRALISED
CORE (Ashwin) ONLINE REAL TIME EXCHANGE
IMPS IMMEDIATE PAYMENT SERVICE
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NACH NATIONAL AUTOMATED CLEARING HOUSE
BBPS BHARAT BILL PAYMENT SERVICE
BHIM BHARAT INTERFACE FOR MONEY
UPI UNIFIED PAYMENTS INTERFACE
VPA VIRTUAL PAYMENT ADDRESS
NCDC NATIONAL COOPERATIVE DEVELOPMENT CORPORATION
WRDA WAREHOUSING DEVELOPMENT REGULATORY AUTHORITY
FCI FOOD CORPORATION OF INDIA
CWC CENTRAL WAREHOUSING CORPORATION
SWC STATE WAREHOUSING CORPORATION
TNWC TAMILNADU WAREHOUSING CORPORATION
WM S WAREHOUSING MANAGEMENT SYSTEM
MRTS MASS RAPID TRANSPORT SYSTEM
JLP JOINT LIFE POLICY
BPO BUSINESS PROCESS OUTSOURCE
KPO KNOWLEDGE PROCES OUTSOURCE
NACD NATIONAL ASSOCIATION OF CORPORATE DIRECTORS
CP COMMERCIAL PAPER
NSIC NATIONAL SMALL INDUSTRIES CORPORATION
PPF PUBLIC PROVIDENT FUND
MIS MONTHLY INCOME ACCOUNT SCHEME
NSC NATIONAL SAVINGS CERTIFICATE
KVP KISSAN VIKAS PATRA
SSA SUKANYA SAMRIDDHI ACCOUNT
IFRS INTERNATIONAL FINCANCE REPORTING SYSTEM
FDI FOREIGN DIRECT INVESTMENT
FII FOREIGN INSTITUTIONAL INVETORS
Drs DEPOSITORY RECEIPTs
ADR AMERICAN DEPOSITORY RECEIPT
GDR GLOBAL DEPOSITORY RECEIPT
DCB DOMESTIC CUSTODIAN BANK
ODB OVERSEAS DEPOSITORY BANK
FIPB FOREIGN INVESTMENT PROMOTION BOARD
FCCB FOREIGN CURRENCY CONVERTIBLE BOND
ECB EXTERNAL COMMERCIAL BORROWING
SEC SECURITIES EXCHANGE COMMISSION
IDR INDIAN DEPOSITORY RECEIPT
MSME MICRO SMALL MEDIUM ENTERPRISE
NEEDS NEW ENTREPRENEUR CUM ENTERPRISE DEVELOPMENT SCHEME
MUDRA MICRO UNITS DEVELOPMENT REFINANCE AGENCY
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SHGs SELF HELP GROUPs
TNCDW TAMILNADU CORPORATION FOR DEVELOPMENT OF WOMEN LIMITED
IFAD INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT
VAR VALUE ADDED RESELLER
MSPs MANAGED SERVICE PROVIDERs
ISVs INDEPENDENT SOFTWARE VENDORS
FMCG FAST MOVABLE CONSUMER GOODs
MRIS MAGNETIC RESONANCE IMAGING SCANNER
AVM AUTOMATIC VENDING MACHINE
FICCI FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY
ASSOCHAM ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY
CII CONFEDERATION OF INDIAN INDUSTRY
LC LETTER OF CREDIT
DGFT DIRECTOR GENERAL OF FOREIGN TRADE
RCMC REGISTRATION CUM MEMBERSHIP CERTIFICATE
RR RAILWAY RECEIPT
LR LORRY RECEIPT
GATT GENERAL AGREEMENT ON TARIFFS AND TRADE
WTO WORLD TRADE ORGANISATIONS
TRIPS TRADE RELATED INTELLECTUAL PROPERTIES RIGHTS
AOA AGREEMENT OF AGRICULTURE
ICSID
SDR SPECIAL DRAWING RIGHTS
SAARC SOUTH ASIAN ASSOCIATION FOR REGIONAL CO-OPERATION
BOP BALANCE OF PAYMENT
BOT BALANCE OF TRADE
GST GOODS AND SERVICE TAX
CBDT CENTRAL BOARD OF DIRECT TAXES
CGST CENTRAL GOODS AND SERVICE TAXES
IGST INTER STATE GOODS AND SERVICE TAXES
SGST STATE GOODS AND SERVICE TAXES
GSN GOODS AND SERVICES NETWORK
CBEC CENTRAL BOARD OF EXCISE AND CUSTOMES
INTERNATIONAL CENTER FOR SETTLEMENT OF INVARSTMENT DISPUTES
LERMS LIBERALISED EXCHANGE RATE MANAGEMENT SYSTEM
IDA INTERNATIONAL DEVELOPMENT ASSOCIATION
IFC INTERNATIONAL FINANCE CORPORATION
MIGA MULTINATIONAL INVESTMENT GUARANTEE AGENCY
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PUBLIC EXAM QUESTION PAPER
PART III
COMMERCE 2018-2019
PART – A 20 x 1 = 20
Note: (i) Answer all the questions.
(ii) Choose the most appropriate answer from the given four alternatives and write the option
code and the corresponding answer.
1. Which one of the following comes under Non-economic Activities?

(a) Working as a lawyer (b) Doctor Charges Consultation Fees
(c) Fruit Seller Selling Fruits (d) Visit to a Temple
2. Which is the oldest form of Business organisation?

(a) Co-operative Society (b) Company
(c) Sole Proprietorship (d) Partnership
3. _________ is the partner who neither contributes any capital nor manages the affairs of the business.
(a) Sleeping partner (b) Nominal partner
(c) Partner by estoppels (d) Secret partner
4. The Board of Directors of a company is elected by _________

(a) Debenture holders (b) Shareholders
(c) Creditors (d) Debtors
5. A _________ is run on the principle of ‘one man one vote’.

(a) Partnership (b) Government Company
(c) Joint Stock Company (d) Co-operative Society
6. The largest commercial Bank of India:

(a) PNB (b) RBI (c) ICICI (d) SBI
7. Commodities like tobacco and cotton are stored in __________.

(a) Automated warehouse (b) General warehouse
(c) Cold storages (d) Special commodity warehouses
8. Which is the fastest means of transport?

(a) Sea (b) Air (c) Rail (d) Road
9. _________ is taken up jointly on the lives of two or more persons.

(a) Joint Life Policy (b) Endowment Life Assurance Policy
(c) Whole Life Policy (d) Annuity Policy
10. Buying and selling of goods through electronic network is known as _________
(a) Website (b) Trade (c) E-commerce (d) Internet
11. Ethics is important for:

(a) Non-managerial employees (b) Top management
(c) Middle level managers (d) All of them
12. Debenture holders are entitled to a fixed rate of _________

(a) Interest (b) Ratios (c) Dividends (d) Profits
13. MSMEs Act for Micro, Small and Medium Enterprises was enacted in the year:
(a) 2006 (b) 2008 (c) 2004 (d) 2007
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14. _________is a special type of bond issued in the currency other than the home currency.
(a) Corporate Bond (b) Investment Bond
(c) Government Bond (d) Foreign Currency Convertible Bond
15. Internal Trade can be classified into _____________ categories.

(a) Two (b) Five (c) Three (d) Four
16. Retailers deal in ____________ quantity of goods.

(a) Medium (b) Limited (c) Small (d) Large
17. WTO meets almost once in every ________years.

(a) Five (b) Two (c) Four (d) Three
18. Exceptions to “stranger to a contract” is _____________

(a) Third Party (b) Promisee (c) Legal Representative (d) Agent
19. Income Tax is ___________

(a) an indirect tax (b) service tax (c) a business tax (d) a direct tax
20. In India Goods and Service Tax (GST) became effective from:
(a)1st July, 2017 (b) 1st March, 2017
(c) 1 April, 2017
st
(d) 1st January, 2017
PART – B 7 x 2 = 14
Answer any seven questions. Q. No. 30 is compulsory
21. What is meant by Nalangadi?
22. What are the two schools of Hindu law?
23. What are Foreign banks?
24. Define Contract.
25. Who is a franchisee?
26. What are Multi-national Companies (MNCs)?
27. Give some examples for micro enterprises.
28. What are specialty stores?
29. What is meant by Indent?
30. Name any two suitable form of transport found in hilly areas, forest areas and in remote
places.
PART – C 7x3=21
Answer any seven questions. Q. No. 40 is compulsory.
31. Write short notes on:
(a) Extractive Industry (b) Genetic Industry
32. What is unlimited liability?
33. Give the meaning of crop insurance.
34. What is the impact of e- commerce on buyers?
35. Write the characteristics of wholesalers. (any six)
36. Explain the characteristics of super markets.
37. Distinguish between Bill of Lading and Charter Party (Any 3)
39. List out the five heads of income.
40. Govind started a business on his own. His father helped him with the accounts and his brother
looked after customers in the evening. He pays monthly to his father and his brother. Identify
RSN English
the form (Ashwin)
of business and mention any two dis-advantages of it.
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PART – D 7x5=35
Answer all the questions
41. (a) What are the hindrances of business? OR
(b) Write short notes on 1. Retained Earnings 2. Lease financing
42. (a) What are the contents of partnership Deed?

(b) Elucidate the features of factoring.
43.(a) State the features of Departmental Stores. OR

(b) Distinguish balance of payment and balance of payment.
44.(a) Explain different types of transport. (Any Five) OR

(b) Explain the classification of Contract on the basis of the Performance.
45. (a) Discuss the causes of risk. OR

(b) How do you classify social Responsibility?
46. (a) Distinguish between Internal and International trade. OR

(b) Explain briefly the different types of foreign trade.
47. (a) Classify the companies on the basis of incorporation. OR

(b) Write short notes on:
(i) Bank Overdraft
(ii) Housing Loan
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PUBLIC EXAM QUESTION PAPER
PART III
COMMERCE 2019 - 2020
PART – A 20 x 1 = 20
Note: (i) Answer all the questions.
1. The main benefit off outsourcing is:
(a) units (b) productivity (C) cost reduction (d) skill
2. Business refers to “Economic activities performed for earning profits” is said by:
(a) Wheeler (b) Spriegal (c) James Stephenson (d) H. Haney
3. Activities undertaken out of love and affection or with social service motive are termed as:
(a) Financial activities (b) Economic activities (c) Monetary activities (d) Non Economic Activities
4. Which of the following holder is given voting rights?
(a) Bonds (b) Debentures (c) Equity shares (d) Preference shares
5. Micro, Small and medium Enterprises Act was enacted in the year :
(a) 2008 (b) 2004 (c) 2007 (d) 2006
6. Goods imported for the purpose of re-export to another country is termed as______
7. Who is the Chairman of the GST council?
(a) President of India (b) RBI Governor (c) Finance Minister (d) Prime Minister
8. The year in which income is earned is known as :
(a) Calendar year (b) Assessment year (c) Previous year (d) Light year
9. In which of the following forms organisation Government provides tax concession?
(a) Multinationals (b) Partnerships (c) Co- operative society (d) Joint stock company
10. Disadvantages of sole proprietorship :
(a) Small Company (b) Easy formation (c) Flexibility (d) Unlimited liability
11. Which of the following is created by Special Act of Parliament or in State Assemblies?
(a) Statutory company (b) Chartered Company (c) Foreign Company (d) Government company
12. At first, the Co-operative Movement was started by Robert Owen in the year:
(a)1944 (b) 1804 (c) 1844 (d) 1840
13. The share capital of the Government Company must not be less than:
(a) 60% (b) 75% (c) 95% (d) 51%
14. ____ buys the goods from the producer and sells it to the retailers.
(a) Consumers (b) Manufactures (c) Wholesalers (d) Retailers
15. The Central bank of India is :
(a) ICIC (b) PNB (c) SBI (d) RBI
16. An agreement enforceable by law is a :
(a) Acceptable offer (b)Enforceable acceptance (c) Contract (d) Approved promise
17. Merchant middleman can be classified into ____ categories.
(a) Four (b) Three (c) Two (d) Five
18. Which of the following helps in maximising sale of goods to society?
(a) Professional management (b) Business success (c) Laws and regulations (d) Ethics
19. Match the following :
[1] Itinerant Traders (i) General stores
[2] Fixed shop small (ii) Micromax informatics
[3] Fixed shop large retailers (iii) Street traders
[4] Multinational Company (iv) Chain store
(a) (1)-(ii), (2)-(iii), (3)-(iv),(4)-(i)
(b) (1)-(iv), (2)-(iii), (3)- (i), (4)-(ii)
RSN (c)
English
(1)-(iii),(Ashwin)
(2)-(i), (3)-(iv), (4)-(ii)
(d) (1)-(iii), (2)-(iv), (3)-(i), (4)-(ii)
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20. The document which authorizes to deliver the goods either in part or full is called :
(a)Dock warrant (b)Warehouse warrant (c)Dock receipt (d)none of these
PART-B
Answer any seven questions. Question No. 30 is compulsory.
21. Who is called Karta?
22.What is Barter system?
23. What do you meant by e-commerce?
24. Define Transport.
25. What is Ethical Responsibility?
26. What is a Foreign Currency Convertible Bond?
28. What is warehouse?
29. Write the kind of GST.
30. What is the name of the retail shop which deals in same type of goods in different localities?Give an example.
PART-C
Answer any seven questions. Question No. 40 is compulsory.
31. Write any three characteristics of sole proprietorship.
32. Explain NEFT.
33. Explain the type of franchising.
34. Write any six benefits of Corporate Governance to shareholders.
35. Define Business finance according to R.C. Osborn. Write any two of its significance.
36. What is Wholesale Trade?
37. Mention any three services rendered by the wholesalers to the manufactures.
38. What are the limitations of International Business?
39. State any three difference between a contract and Agreement.
40. Who are the members of the apex body that supervises the Insurance Industry in India?
PART-D
Answer all the questions.
41. (a) Discuss any five objectives of business. (OR)
(b) State any five advantages of sole trading business.
42. (a) Explain Leadership and Supervisory Functions of RBI. (OR)
(b) What are the contents of Memorandum of Association?
43. (a) Explain the different key elements of business ethics. (OR)
(b) Distinguish between Direct tax and Indirect tax.
44. (a) Write the features of Balance of Payments. (OR)
(b) Explain the functions of warehouses. (any five)
45. (a) What do you know about the overseas trading partners of ancient Tamil Nadu? (OR)
(b) Explain any five Personal Investment Avenues.
46. (a) What are the advantages of Co-Operative Society? (OR)
(b) What are the features of Internal Trade?
47. (a) Explain any five kinds of Land transport. (OR)
(b) Explain the essentials of a Valid contract.
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DHOSTH MODEL QUESTION PAPER - 1
XI STANDARD
COMMERCE
PART A
(i) Answer all the questions 20 x 1=20
1. Trade and Commerce was common to ________________ Dynasty.
(a) Pallava (b) Chola (c) Pandiya (d) Chera
2. Auxiliaries to trade is also called as _______________
(a)Trade (b) Advertisement (c) Warehousing (d) Aids to Trade
3. ‘Only the male members in the family get the right of inheritance by birth’ as ____________
(a) Hindu law (b) Mitakshara Law (c) Dayabhaga law (d) None of these
4. The Board of directors of a company is elected by ________________
(a) Creditors (b) Debtors (c) Debenture holders (d) Shareholders(members)
5. Coca-Cola company is an example of ___________________
(a) MNC (b) Government company (c)Venture (d) Public company
6. Which bank has the power to issue Bank notes?
(a) Central Bank (b) Commercial Bank (c) Co-operative Bank (d) Foreign Bank
7. Minimum how much amount can be transferred through RTGS?
(a) Any Amount (b) Rs. 50,000 (c) Rs. 2 Lakhs (d) Rs. 5 Lakhs
8. The document which authorizes to deliver the goods either in part of full is called ____________
(a) warehouse warrant (b) Dock receipt (c) Dock warrant (d) None of these
9. Which of the following is a type of marine insurance?
(a) Money back (b) Mediclaim (c) Hull insurance (d) Corgo insurance
10. Socially responsible business provides goods at
(a) High price (b) Low price (c) Reasonable price (d) Moderate price
11. Internal sources of Capital are those that are _______________
(a) generated through outsiders such as suppliers (b) generated through loans from commercial banks
(c) generated through issue of shares (d) generated within the business
12. Self help groups convert the savings into a common fund known as _____________
(a) Common Fund (b) Groups corpus Fund (c) Group Fund (d) None of the above
13. Small shops which deal in a particular line of products are called as _________
(a) Market Traders (b) Single line stores (c) Sugar Market (d) Street stalls
14. WTO was established on _____________
(a) 1-1-1996 (b) 1-1-1997 (c) 1-1-1995 (d) 1-1-1994
15. Void agreement signifies _____________
(a) Agreement illegal in nature (b) Agreement not enforceable by law
(c) Agreement violating legal procedure (d) Agreement against public policy
16. The compensation given for breach of contract is ___________
(a) Damage (b) Remuneration (c) Money (d) Cheque
17. What kind of tax is GST is?
(a) Direct Tax (b) Indirect Tax
(c) Dependence on the type of goods and services (d) All business organisations
18. EXIM Bank was established in the year _______________
(a) 1952 (b) 1962 (c) 1972 (d) 1982
19. Which one of the following is not the advantages of international business?
(a) Economic development (b) Economic dependence
(c) Price equalisation (d) Higher standard of living
20. A debtor owes several distinct debts to the same creditor and he has a right to instruct his creditor to which
particular debts is to be adjusted is
RSN(a) Application of payments where the debt to be discharged is indicated
(b)English (Ashwin)
Application of payments where he debt to be discharged is not indicated
(c) Application of payment where neither party appropriates.
(d) None of these
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PART - II
Answer any 7 questions in which question No.21 is compulsory. 7 × 2 = 14
21. What do you mean by Business?
22. What are the Non-corporate enterprises?
23. What are Foreign banks?
24. What is a Charter Party?
25. Name any two internal sources of Business Finance.
26. Give some examples for Micro Enterprises.
27. Mention any two benefits of Vending Machine.
28. What is GATT?
29. Who is an Agent?
30. What is Income Tax?
PART - III
31. Explain the meaning of the term “Vanigam”.
32. Write any 3 features of HUF.
33. List the names of some enterprises under the public sector and classify them.
34. What is E-Banking?
35. What is Fire Insurance? What are its features.
36. Why is Ethics necessary in Business?
37. What is the role and significance of MSMEs in Indian Economy?
38. What are the features of Entrepot Trade?
39. What do you mean by Revocation?
40. Write any three demerits of GST.
PART - IV
Answer all the questions. 7 × 5 = 35
41. a) State the constraints in barter system. (or)
b) Explain the following types of Companies.
(i) On the basis of incorporation
(ii) On the basis Membership
42. a) Discuss the various Primary functions performed by the Commercial banks. (or)
b) Discuss the advantages of transport.
43. a) What are the Features of outsourcing? (or)
b) Explain the different key elements of business ethics.
44. a) Distinguish between GDR and VDR? (or)
b) Explain briefly the different types of Foreign trade.
45. a) Explain the types of Small Fixed Shop Retailers. (or)
b) Distinguish between Bill of Lading and Charter party?
46. a) Write down the structure of balance of payment? (or)
b) Discuss the different types of damages awarded to the injured party.
47. a) Define Tax. Explain the term direct tax and indirect tax with an example. (or)
b) What are the advantages and disadvantages of Departmental undertakings?

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DHOSTH MODEL QUESTION PAPER - 2
XI STANDARD
COMMERCE
PART A
1. Who wrote “Arthasasthra”?
(a) Kautilya (b) Chanakiya (c) Thiruvalluvar (d) Elangovadigal
2. Production which involves several stages for manufacturing finished product is known as
(a) Analytical Industry (b) Synthetic Industry
(c) Processing Industry (d) None of the above
3. A partnership is formed by __________
(a) agreement (b) relationship among persons (c) the direction of government (d) friendship
4. Table A of the Companies Act is a ______________
(a) Model minutes book (b) Model form of Balance Sheet
(c) Model of AOA (d) Model of MOA
5. Centralised control in MNC’s implies control exercised by __________________
(a) Branches (b) Subsidiaries (c) Headquarters (d) Parliament
6. The Reserve Bank of India commenced its operations from April 1,
(a) 1936 (b) 1935 (c) 1934 (d) 1933
7. In which kind of account, it is compulsory to deposit certain amount at certain time?
(a) Savings Deposit (b) Fixed Deposit (c) Current Deposit (d) Recurring Deposit
8. ____________ can be given as collateral security for getting financial assistance from bank.
(a) Dock warrant (b) Warehouse Receipt (c) Dock Receipt (d) Warehouse warrant
9. The basic principle of insurance is _____________
(a) Insurable Interest (b) Co-operation (c) Subrogation (d) Proximate cause
10. Assuming Social Responsibility of business helps the enterprise in ___________
(a) Increase Profit (b) Decrease Profit (c) Sustainability (d) Equilibrium
11. Public deposits are the deposits that are raised directly from _________
(a) The public (b) The directors (c) The auditors (d) The owners
12. MSMED Act was enacted in the year _______
(a) 2004 (b) 2007 (c) 2006 (d) 2008
13. Retailers deal in _______________ quantity of goods.
(a) Small (b) Large (c) Medium (d) Limited
14. World bank is located at _____________.
a)Washingto Dc b) New York (c) Tokyo (d) HongKong
15. Acceptance to be valid must
(a) be absolute (b) be unqualified
(c) both be absolute and unqualified (d) be conditional
16. Any agreement which becomes impossible to perform under various circumstances
a)Voidable b) Void (c) Valid (d) None of these
17) What kind of tax is GST is?
(a) Direct Tax (b) Indirect Tax
(c) Dependence on the type of goods and services (d) All business organisations
18) Which one of the following document is not required in connection with an import trade?
(a) Bill of entry (b) Bill of sight (c) Mate’s receipt (d) Letter of credit
19) The importance centre for entrepot
(a) London (b) Singapore (c) Hong Kong (d) All the above
RSN English
20) Offer (Ashwin) is also know as
to performance
a) Tender (b) Actual performance
(c) Promise (d) Agent
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PART - II
21) What is meant by Barter System?
22) Define Commerce.
23) Give two examples for each of the following:
(i) Private sector enterprises
(ii) Global enterprises
24) What do you mean by ATM?
25) What do you mean by surrender value?
26) What are MNCs?
27) What is Self Help Group?.
28) Define Wholesaler.
29) Who can enter into a contract?
30) Define the term person.
PART - III
31) What do you mean by himan activities? Explain.
32) Write about ‘flexibility’ in the business management of a sole trader.
33) What are the advantages of Companies? (Any 3)
34) What are the disadvantages of MNC’s? (Any 3)
35) Mention the importance of Banking Services.
36) Give any four points of distinction between Hire-Purchase System and Installment System of selling.
37) State the Components of capital account.
38) What are the ways in which a contract may be discharged?
39) Who can demand performance?
40) State any three features of ADR.
PART - IV
Answer all the questions. (7 × 5 = 35)
41) a) What are the Hindrances of Business? (or)
b)Briefly Explain the Features of the Company form of organisation. (Any 5)
42) a) Explain the various Secondary functions of commercial banks. (or)
b) Explain different types of transports.
43) a) Elucidate the feature of factoring. (or)
b) List out the various Sources of Financing.
44) a) What are the objectives of SHGs? (or)
b) Highlight the features of balance of payments.
45) a) Explain the types of Itinerant Traders. (or)
b) What are the features of Public corporation? (Any 5)
46) a) What are the procedures relating to Import Trade? Explain any five. (or)
b) Elucidate the any five features of Income Tax.
47) a) What is Internal Trade? What are its TypesExplain. (or)
b) Explain the ways of discharge of contract.
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DHOSTH MODEL QUESTION PAPER( 2019-20)

PART III
COMMERCE
Time allowed: 2.30 hours Maximum Mark: 90
PART A
1. Who wrote “Arthasasthra”

a. Kautilya b. Chanakiya c. Thiruvalluvar d. Elangovadigal
2. “Only the male members in the family get the right of Inheritance by birth” as
a. Hindu law b. Mitakshara law c. Dayabhaga law d. None of these
3. Activities undertaken out of love and affection or with social service motive are termed as
a. Economic activity b. Monetary activity
c. Non economic activity d. Financial activity
4. A Government company purchases shares in the name of

a) Prime Minister b) President
c) Chief Justice of India d) State Chief Minister
5. Foreign banks are begun their operation since

(a) 1978 (b) 1979 (c) 1980 (d) 1981
6. The document which authorizes to deliver the goods either in part or full is called ______
a) Warehouse warrant b) Dock Receipt
c) Dock warrant d) None of these
7. A condition where a factor agrees to provide complete set of services like financing, debt collection,
consultancy is called ______
a) Maturity Factoring b) National Factoring
c) Full service Factoring d) Recourse Factoring
8. Outsourcing is carried out for the benefit of

(a) Global village (b) Transport (c) Factory (d) Time and money
9. Assuming Social Responsibility of business helps the enterprise in

(a) Increase profit (b) Decrease profit
(c) Sustainability (d) Equilibrium
10. The ethical conduct of employees leading to standard practices results in

(a) good behaviour (b) bad behaviour
(c) ethical behaviour (d) correct decision making
11. It may be wise to finance fixed assets through ____________

a. Creditors b. Long term debts
c. Bank Overdraft d. Bills Discounting
12. Self help groups convert the savings into a common fund known as
(a) Common fund (b) Group corpus fund
(c) Group fund (d) none of the above
13. Merchant middlemen can be classified into ————— categories.

RSNa.English
Three (Ashwin)
b. Two c. Five d. Four
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14. _____are mobile traders who deal in low priced articles with no fixed place of business.
a) Shopping malls b) Super markets
c) Street stalls d) Itinerant trade
15. STC is expansion for

a) State Training Centre b) State Training Council
c) State Trading Centre d) State Trading Corporation
16. World bank is located at

a. Washington DC b. New York c. Tokyo d. Hongkong
17. A person is said to be a third person if he is not a

a. promisor b. promise c. agent d. Legal Representative
18. Discharge by mutual agreement may involve

a. Novation b. Rescission c. Alteration d. All of the above
19. Agricultural income earned in India is

a) Fully Taxable b) Fully Exempted
c) Not Considered for Income d) None of the above
20. What are the tax rates proposed by GST?

a. 4%, 5%, 12%, 18% b. 5%, 12%, 14%, 28%
c. 5%, 12%, 18%, 28% d. 4%, 18%, 20%, 28%
PART B
Answer any 7 questions. Q. No. 30 is compulsory 7 x 2 = 14
21. What is meant by Allangadi?
22. Is low taxes possible in Cooperative society?
23. Briefly explain about Correspondent banks.
24. Define Logistics.
25. State two ways by which ethics influences behavior.
26. What is a Foreign Currency Convertible Bond?
27. What is SAARC?
28. Mention any two benefits of Vending machines.
29. Define the term person.
30. What do you mean by quid pro quo?
PART C
Answer any 7 questions. Q. No . 40 is compulsory 7 x 3 = 21

31. What are the ports developed by pandiya kingdom?
33. Write a note on IRDAI.
34. Enumerate the points relating to why business units are Socially Responsible?
35. List sources of raising long-term and short-term finance.
36. What is the classification of Foreign trade?
37. What does Balance of Payment disclose?
39. Write short notes on: 1. Direct Tax 2. Indirect Tax
40. What is the best option to enter other country markets? Write any two characteristics of it.
PART D
Answer all the questions 7 x 5 = 35

41. (a) State the constraints in the barter system.
OR
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(b) Compare CGST, SGST and IGST.
42. (a) Explain the characteristics of sole trading business.

OR
(b) Write about the various remedies for breach of contract
43. (a) Explain the organizational structure of RBI.

OR
(b) Explain the various functions of Export Trading Houses
44. (a) Explain the various secondary functions of commercial banks.

OR
(b) Explain the different types of warehouses
45. (a) Write a note on e-commerce models.

OR
(b) What are the services rendered by retailers to wholesalers?
46.(a) Discuss the different groups benefited out of social Responsibility of business
OR
(b) What are the objectives of SHGs?
47. (a) Write any 5 rights and duties of partner.

OR
(b) Explain the methods of conducting international business.
ALL THE BEST
101

Namma Kalvi 11th Commerce MLM Dhosth Guide em 219811

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Namma Kalvi 11th Commerce MLM Dhosth Guide em 219811

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Namma Kalvi

TAMILNADU TECHNICAL & DIGITAL SCHOLARS

FOR VIDEO FOR AUDIO ONLINE

RSN English (Ashwin)

S.NO TOPICS Page No.

1 D IGITA L BO OK (SCA N Q R CO DE)

3 BOO K BA CK 2 M A RKS, 3 M A RKS, 5 M A RKS 7

7 IM PO RTA N TS EVEN TS A N D YEA R 81

10 PU BLIC EXA M Q U ESTIO N PA PER 90

11 D HO STH M O D EL Q U ESTION PA PERS 95

RSN English (Ashwin)

FROMS OF BUSINESS ORGANISATION

III. Short Answer Questions

III. Short answers

2. Compare business with profession and employment.

3. Discuss any five objective of business

1. Definition Those activities which Those activities which are undertakenfor

2. What do you mean by tertiary industries?( service industry)

IV. Long answer

2. Explain the various kinds of industry?

IV. Long Answer Questions

IV. Long Answer Questions

5. Write the procedure for Registration of a Firm.

RSN English (Ashwin)

III. Short Answer Questions

IV. Long Answer Questions

IV. Long Answer Questions

III. Short Answer

IV. Long Answer

5. Give a note on FCI.

III. Short Answer

IV. Long Answer

III. Short Answer

IV. Long Answer

5. What is the impact of e-commerce on buyers?

IV. Long answer

Meaning BPO re fer s to the o utsourcing of KPO is another kind of outsourcing

5. Write a note on e-commerce models.

III. SHORT ANSWER QUESTIONS:

IV. LONG ANSWER QUESTIONS

2. What do you mean by code?

4. What is need for Corporate Governance?

5. What are MNCs?

III. SHORT ANSWER QUESTIONS

3. Why is ethics necessary in business?

4. What are the benefits of Corporate Governance to Share Holders?

5. Illustrate with example the working of a MNC

IV. LONG ANSWER QUESTIONS:

3. State any five features of FCCB.

III. SHORT ANSWER QUESTIONS:

IV. LONG ANSWER QUESTIONS:

RSN English (Ashwin)

III. SHORT ANSWER QUESTIONS:

III. SHORT ANSWER QUESTIONS:

III. SHORT ANSWER QUESTIONS

3. Explain the characteristics of super markets.

IV. LONG ANSWER QUESTIONS

3. Distinguish between internal and international trade.

3. Mention the types of Indent.

III. SHORT ANSWER QUESTIONS

3. What is meant Charter Party?

4. Write a short note on Mate’s receipt?

5. What is Bill of Lading?