Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics

Balbharti Maharashtra State Board 12th Physics Important Questions Chapter 1 Rotational Dynamics Important Questions and Answers.

Maharashtra State Board 12th Physics Important Questions Chapter 1 Rotational Dynamics

Question 1.
What is circular motion?
Answer:
The motion of a particle along a complete circle or a part of it is called circular motion.

Question 2.
What is a radius vector in circular motion?
Answer:
For a particle performing circular motion, its position vector with respect to the centre of the circle is called the radius vector.
[Note : The radius vector has a constant magnitude, equal to the radius of the circle. However, its direction changes as the position of the particle changes along the circumference.]

Question 3.
What is the difference between rotation and revolution?
Answer:
There is no physical difference between them. It is just a question of usage. Circular motion of a body about an axis passing through the body is called rotation. Circular motion of a body around an axis outside the body is called revolution.

Question 4.
State the characteristics of circular motion.
Answer:

  1. It is an accelerated motion : As the direction of velocity changes at every instant, it is an accelerated motion.
  2. It is a periodic motion : During the motion, the particle repeats its path along the same trajectory. Thus, the motion is periodic.

Question 5.
Explain angular displacement in circular motion.
Answer:
The change in the angular position of a particle performing circular motion with respect to a reference line in the plane of motion of the particle and passing through the centre of the circle is called the angular displacement.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 1
As the particle moves in its circular path, its angular position changes, say from θ1 at time t to θ2 at a short time δt later. In the interval δt, the position vector \(\vec{r}\) sweeps out an angle δθ = θ2 – θ1. δθ is the magnitude of the change in the angular position of the particle.

Infinitesimal angular displacement \(\overrightarrow{\delta \theta}\) in an infinitesimal time interval δt → 0, is given a direction perpendicular to the plane of revolution by the right hand thumb rule.

Question 6.
Explain angular velocity. State the right hand thumb rule for the direction of angular velocity.
Answer:
Angular velocity : The time rate of angular displacement of a particle performing circular motion is called the angular velocity.

  1. If the particle has an angular displacement \(\delta \vec{\theta}\) in a short time interval δt, its angular velocity
    Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 2
  2. \(\vec{\omega}\) is a vector along the axis of rotation, in the direction of \(d \vec{\theta}\), given by the right hand thumb rule.

Right hand thumb rule : If the fingers of the right hand are curled in the sense of revolution of the particle, then the outstretched thumb gives the direction of the angular displacement.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 3
[Note : Angular speed, ω = |\(\vec{\omega}\)| = \(\frac{d \theta}{d t}\) is also called angular frequency. ]

Question 7.
Explain the linear velocity of a particle performing circular motion.
OR
Derive the relation between the linear velocity and the angular velocity of a particle performing circular motion.
Answer:
Consider a particle performing circular motion in an anticlockwise sense, along a circle of radius r. In a very small time interval δt, the particle moves from point A to point B through a distance δs and its angular position changes by δθ.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 4
Since Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 5 is tangential, the instantaneous linear velocity \(\vec{v}\) of a particle performing circular motion is along the tangent to the path, in the sense of motion of the particle.

\(\vec{v}\), \(\vec{\omega}\) and \(\vec{r}\) are mutually perpendicular, so that in magnitude, v = ωr.

Question 8.
State the relation between the linear velocity and the angular velocity of a particle in circular motion.
Answer:
Linear velocity, \(\vec{v}\) = \(\vec{\omega}\) × \(\vec{r}\) where ω is the angular velocity and r is the radius vector.

At every instant, \(\vec{v}\), \(\vec{\omega}\) and \(\vec{r}\) are mutually perpendicular, so that in magnitude v = ωr.

Question 9.
Define uniform circular motion (UCM).
Answer:
A particle is said to perform uniform circular motion if it moves in a circle or a circular arc at constant linear speed or constant angular velocity.

Question 10.
A stone tied to a string is rotated in a horizontal circle (nearly). If the string suddenly breaks, in which direction will the stone fly off ?
Answer:
In a circular motion, the instantaneous velocity \(\vec{v}\) is always tangential, in the sense of the motion. Hence, an inertial observer will see the stone fly off tangentially, in the direction of \(\vec{v}\) at the instant the string breaks.

Question 11.
What is the angular speed of a particle moving in a circle of radius r centimetres with a constant speed of v cm/s ?
Answer:
Angular speed, ω = \(\frac{v \mathrm{~cm} / \mathrm{s}}{r \mathrm{~cm}}\) = \(\frac{v}{r}\) rad/s.

Question 12.
Define the period and frequency of revolution of a particle performing uniform circular motion (UCM) and state expressions for them. Also state their SI units.
Answer:
(1) Period of revolution : The time taken by a particle performing UCM to complete one revolution is called the period of revolution or the period (T) of UCM.
T = \(\frac{2 \pi r}{v}\) = \(\frac{2 \pi}{\omega}\)
where v and ω are the linear and angular speeds, respectively.
SI unit: the second (s)
Dimensions : [M°L°T1].

(2) Frequency of revolution : The number of revolutions per unit time made by a particle in UCM is called the frequency of revolution (f).

The particle completes 1 revolution in periodic time T. Therefore, it completes 1/T revolutions per unit time.
∴ Frequency f = \(\frac{1}{T}\) = \(\frac{v}{2 \pi r}\) = \(\frac{\omega}{2 \pi}\)
SI unit : the hertz (Hz), 1 Hz = 1 s-1
Dimensions : [M°L°T-1]

Question 13.
If the angular speed of a particle in UCM is 20π rad/s, what is the period of UCM of the particle?
Answer:
The period of UCM of the particle,
T = \(\frac{2 \pi}{\omega}\) = \(\frac{2 \pi}{20 \pi}\) = 0.1 s

Question 14.
Why is UCM called a periodic motion?
Answer:
In a uniform motion, a particle covers equal distances in equal intervals of time. Any motion which repeats itself in equal intervals of time is called a periodic motion. In a uniform circular motion (UCM), the particle takes the same time to complete each revolution, a distance equal to the circumference of the circle. Therefore, it is a periodic motion.

Question 15.
Give one example of uniform circular motion.
Answer:

  1. Circular motion of every particle of the blades of a fan or the dryer drum of a washing machine when the fan or the drum is rotating with a constant angular speed.
  2. Motion of the hands of a clock.
  3. Motion of an Earth-satellite in a circular orbit.

Question 16.
What can you say about the angular speed of an hour hand as compared to that of the Earth’s rotation about its axis ?
Answer:
The periods of rotation of an hour hand and the Earth are Th = 12 h and TE = 24 h, respectively, so that their angular speeds are ωh = \(\frac{2 \pi}{12}\) rad/h and ωE = \(\frac{2 \pi}{24}\) rad/h.
∴ ωh = 2ωE

Question 17.
Explain the acceleration of a particle in UCM. State an expression for the acceleration.
Answer:
A particle in uniform circular motion (UCM) moves in a circle or circular arc at constant linear speed v. The instantaneous linear velocity \(\vec{v}\) of the particle is along the tangent to the path in the sense of motion of the particle. Since \(\vec{v}\) changes in direction, without change in its magnitude, there must be an acceleration that must be

  1. perpendicular to \(\vec{v}\)
  2. constant in magnitude
  3. at every instant directed radially inward, i.e., towards the centre of the circular path.

Such a radially inward acceleration is called a centripetal acceleration.
∴ \(\vec{a}\) = \(\frac{d \vec{v}}{d t}\) = \(\overrightarrow{a_{\mathrm{r}}}\)

If \(\vec{\omega}\) is the constant angular velocity of the particle and r is the radius of the circle,
\(\overrightarrow{a_{\mathrm{r}}}\) = –\(\omega^{2} \vec{r}\)
where ω = |\(\vec{\omega}\)| and the minus sign shows that the direction of \(\vec{a}_{\mathrm{r}}\) is at every instant opposite to that of the radius vector \(\vec{r}\). In magnitude,
ar = ω2r = \(\frac{v^{2}}{r}\) = ωv

[Note : The word centripetal comes from Latin for ‘centre-seeking’.]

Question 18.
Draw a diagram showing the linear velocity, angular velocity and radial acceleration of a particle performing circular motion with radius r.
Answer:
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 6

Question 19.
If a particle in UCM has linear speed 2 m/s and angular speed 5 rad/s, what is the magnitude of the centripetal acceleration of the particle ?
Answer:
The magnitude of the centripetal acceleration of the particle is ar = ωv = (5)(2) = 10 m/s2

Question 20.
State any two quantities that are uniform in UCM.
Answer:
Linear speed and angular speed. (Also, kinetic energy, angular speed and angular momentum.)

Question 21.
State any two quantities that are nonuniform in UCM.
Answer:
Velocity and acceleration are nonuniform in UCM.
(Also, centripetal force.)

Question 22.
What is a nonuniform circular motion?
Answer:
Consider a particle moving in a plane along a circular path of constant radius. If the particle is speeding up or slowing down, its angular speed ω and linear speed v both change with time. Then, the particle is said to be in a non uniform circular motion.

Question 23.
Explain angular acceleration.
Answer:
Angular acceleration : The time rate of change of angular velocity of a particle performing circular motion is called the angular acceleration.

(i) If \(\delta \vec{\omega}\) is the change in angular Velocity in a short time interval St, the angular acceleration
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 7

(ii) The direction of \(\vec{\alpha}\) is the same as that of \(d \vec{\omega}\). We consider the case where a change in \(\vec{\omega}\) arises due to a change in its magnitude only. If the particle is speeding up, i.e., ω is increasing with time, then \(\vec{\alpha}\) is in the direction of \(\vec{\omega}\). If the particle is slowing down, i.e., ω is decreasing with time, then \(\vec{\alpha}\) is directed opposite to \(\vec{\omega}\).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 8

(iii) If the angular speed changes from ω1 to ω2 in time f, the magnitude (α) of the average angular acceleration is
α = \(\frac{\omega_{2}-\omega_{1}}{t}\)

Question 24.
Explain the tangential acceleration of a particle in non uniform circular motion.
Answer:
Tangential acceleration : For a particle performing circular motion, the linear acceleration tangential to the path that produces a change in the linear speed of the particle is called the tangential acceleration.
Explanation :
(i) If a particle performing circular motion is speeding up or slowing down, its angular speed co and linear speed v both change with time.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 9
The linear acceleration that produces a change only in the linear speed must be along \(\vec{v}\). Hence, it is called the tangential acceleration, \(\overrightarrow{a_{\mathrm{t}}}\). In magnitude, at = dv/dt

(ii) If the linear speed v of the particle is increasing, \(\overrightarrow{a_{\mathrm{t}}}\) is in the direction of \(\vec{v}\). If v is decreasing, \(\overrightarrow{a_{\mathrm{t}}}\) is directed opposite to \(\vec{v}\).

Question 25.
Obtain the relation between the magnitudes of the linear (tangential) acceleration and angular acceleration in non uniform circular motion.
Answer:
Consider a particle moving along a circular path of constant radius r. If the particle is speeding up or slowing down, its motion is nonuniform, and its angular speed ω and linear speed v both change with time. At any instant, v, ω and r are related by v = ωr
The angular acceleration of the particle is
α = \(\frac{d \omega}{d t}\)

The tangential acceleration \(\overrightarrow{a_{\mathrm{t}}}\) is the linear acceleration that produces a change in the linear speed of the particle and is tangent to the circle. In magnitude,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 10
This is the required relation.

Question 26.
Obtain an expression for the acceleration of a particle performing circular motion. Explain its two components.
OR
For a particle performing uniform circular motion, \(\vec{v}\) = \(\vec{\omega}\) × \(\vec{r}\). Obtain an expression for the linear acceleration of a particle performing non-uniform circular motion.
OR
In circular motion, assuming \(\vec{v}\) = \(\vec{\omega}\) × \(\vec{r}\), obtain an expression for the resultant acceleration of a particle in terms of tangential and radial components.
Answer:
Consider a particle moving along a circular path of constant radius r. If its motion is nonuniform, then its angular speed ω and linear speed v both change with time.

Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 11
acceleration is called the radial or centripetal acceleration \(\overrightarrow{a_{\mathrm{r}}}\).
\(\overrightarrow{a_{\mathrm{r}}}\) = \(\vec{\omega}\) × \(\vec{v}\) … (5)
In magnitude, ar = ωv
since \(\vec{\omega}\) is perpendicular to \(\vec{v}\).
∴ \(\vec{a}\) = \(\overrightarrow{a_{\mathrm{t}}}\) + \(\overrightarrow{a_{\mathrm{r}}}\) …. (6)
This is the required expression.

Question 27.
What is the angle between linear acceleration and angular acceleration of a particle in nonuniform circular motion ?
Answer:
In a nonu niform circular motion, the angular acceleration is an axial vector, perpendicular to the plane of the motion. The linear acceleration is in the plane of the motion. Hence, the angle between them is 90°.

Question 28.
What are the differences between a nonuniform circular motion and a uniform circular motion? (Two points of distinction) Give examples.
Answer:
(i) Nonuniform circular motion :

  1. The angular and tangential accelerations are non-zero, so that linear and angular speeds both change with time.
    Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 12
  2. The net linear acceleration, being the resultant of the radial and tangential accelerations, is not radial, \(\vec{a}\) = \(\overrightarrow{a_{\mathrm{c}}}\) + \(\overrightarrow{a_{t}}\),
  3. The magnitudes of the centripetal acceleration and the centripetal force are not constant.
  4. Example : Motion of the tip of a fan blade when the fan is speeding up or slowing down.

(ii) Uniform circular motion :

  1. The angular and tangential accelerations are zero, so that linear speed and angular velocity are constant.
  2. The net linear acceleration is radially inward, i.e., centripetal.
  3. The magnitudes of the centripetal acceleration and the centripetal force are also constant.
  4. Example : Motion of the tips of the hands of a mechanical clock.

Question 29.
Write the kinematical equations for circular motion in analogy with linear motion.
Answer:
For circular motion of a particle with constant angular acceleration α,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 13
where ω0 and ω are the initial and final angular speeds, t is the time, ωav the average angular speed and θo and θ the initial and final angular positions of the particle.

Then, the angular kinematical equations for the circular motion are (in analogy with linear kinematical equations for constant linear acceleration)
ω = ω0 + αt
θ – θ0 = ω0t + \(\frac{1}{2} \alpha t^{2}\)
ω2 = \(\omega_{0}^{2}\) + 2α (θ – θ0)

Question 30.
Solve the following :

Question 1.
Certain stars are believed to be rotating at about 1 rot/s. If such a star has a diameter of 40 km, what is the linear speed of a point on the equator of the star?
Solution :
Data : d = 40 km, /= 1 rot/s
∴ r = \(\frac{d}{2}\) = \(\frac{40 \mathrm{~km}}{2}\) = 20 km = 2 × 104 m
Linear speed, v = ωr = (2πf)r
= (2 × 3.142 × 1)(2 × 104)
= 6.284 × 2 × 104
= 1.257 × 105 m/s (or 125.6 km/s)

Question 2.
A body of mass 100 grams is tied to one end of a string and revolved along a circular path in the horizontal plane. The radius of the circle is 50 cm. If the body revolves with a constant angular speed of 20 rad/s, find the

  1. period of revolution
  2. linear speed
  3. centripetal acceleration of the body.

Solution :
Data : m = 100 g = 0.1 kg, r = 50 cm = 0.5 m, ω = 20 rad/s

  1. The period of revolution of the body,
    Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 14
  2. Linear speed, v = ωr = 20 × 0.5 = 10 m/s
  3. Centripetal acceleration,
    ac = w2r = (20)2 × 0.5 = 200 m/s2

Question 3.
Calculate the angular speed of the Earth due to its spin (rotational motion).
Solution :
Data : T = 24 hours = 24 × 60 × 60 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 15
The angular speed of the Earth due to its spin (rotational motion) is 7.273 × 10-5 rad/s.

Question 4.
Find the angular speed of rotation of the Earth so that bodies on the equator would feel no weight. [Radius of the Earth = 6400 km, g = 9.8 m/s2]
Solution :
Data : Radius of the Earth = r = 6400 km = 6.4 × 106 m, g = 9.8 m/s2

As the Earth rotates, the bodies on the equator revolve in circles of radius r.

Question 31.
Write the kinematical equations for circular motion in analogy with linear motion.
Answer:
For circular motion of a particle with constant angular acceleration α,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 16
where ω0 and ω are the initial and final angular speeds, t is the time, ωav the average angular speed and 0o and 0 the initial and final angular positions of the particle.

Then, the angular kinematical equations for the circular motion are (in analogy with linear kinematical equations for constant linear acceleration)
ω = ω0 + αt
θ – θo = ω0t + \(\frac{1}{2} \alpha t^{2}\)
ω2 = \(\omega_{0}^{2}\) + 2α (θ – θo)

Question 32.
Solve the following :

Question 1.
Certain stars are believed to be rotating at about 1 rot/s. If such a star has a diameter of 40 km, what is the linear speed of a point on the equator of the star?
Solution :
Data : d = 40 km, f= 1 rot/s
∴ r = \(\frac{d}{2}\) = \(\frac{40 \mathrm{~km}}{2}\) = 20 km = 2 × 104 m
Linear speed, v = ωr = (2πf)r
= (2 × 3.142 × 1)(2 × 104)
= 6.284 × 2 × 104
= 1.257 × 105 m/s (or 125.6 km/s)

Question 2.
A body of mass 100 grams is tied to one end of a string and revolved along a circular path in the horizontal plane. The radius of the circle is 50 cm. If the body revolves with a constant angular speed of 20 rad/s, find the

  1. period of revolution
  2. linear speed
  3. centripetal acceleration of the body.

Solution :
Data : m = 100 g = 0.1 kg, r = 50 cm = 0.5 m, ω = 20 rad/s

  1. The period of revolution of the body,
    Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 17
  2. Linear speed, v = ωr = 20 × 0.5 = 10 m/s
  3. Centripetal acceleration,
    ac = ω2 = (20)2 × 0.5 = 200 m/s2

Question 3.
Calculate the angular speed of the Earth due to its spin (rotational motion).
Solution :
Data : T = 24 hours = 24 × 60 × 60 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 18
The angular speed of the Earth due to its spin (rotational motion) is 7.273 × 10-5 rad/s.

Question 4.
Find the angular speed of rotation of the Earth so that bodies on the equator would feel no weight. (Radius of the Earth = 6400 km, g = 9.8 m/s2]
Solution :
Data : Radius of the Earth = r = 6400 km
= 6.4 × 106 m, g = 9.8 m/s2
As the Earth rotates, the bodies on the equator revolve in circles of radius r.
These bodies would not feel any weight if their centripetal acceleration (ωr) is equal to the acceleration due to gravity (g).
∴ ω2r = g
The angular speed of the Earth’s rotation,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 19

Question 5.
To simulate the acceleration of large rockets, astronauts are seated in a chamber and revolved in a circle of radius 9.8 m. What angular speed is required to generate a centripetal acceleration 8 times the acceleration due to gravity? [g = 9.8 m/s2]
Solution :
Data : r = 9.8 m, g = 9.8 m/s2, a = 8g
Centripetal acceleration = ω2r
∴ ω2r = 8g
∴ 9.8 ω2 = 8(9.8)
∴ ω2 = 8
The required angular speed, ω = \(\sqrt{8}\) = 2\(\sqrt{2}\) = 2.828 rad/s

Question 6.
The angular position of a rotating object is given by θ(t) = (1.55t2 – 7.75 t + 2.87) rad, where t is measured in second.
(i) When is the object momentarily at rest ?
(ii) What is the magnitude of its angular acceleration at that time ?
Solution :
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 20

Question 7.
A motor part at a distance of 1.5 m from the motor’s axis of rotation has a constant angular acceleration of 0.25 rad/s2. Find the magnitude of its linear acceleration at the instant when its angular speed is 0.5 rad/s.
Solution :
Data : r = 1.5 m, α = 0.25 rad/s2, ω = 0.5 rad/s2 ar = ω2r = (0.5)2(1.5) = 0.25 × 1.5 = 0.375 m/s2 at = αr = 0.25 × 1.5 = 0.375 m/s2
The linear acceleration,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 21

Question 8.
A coin is placed on a stationary disc at a distance of 1 m from the disc’s centre. At time t = 0 s, the disc begins to rotate with a constant angular acceleration of 2 rad/s2 around a fixed vertical axis through its centre and perpendicular to its plane.
Find the magnitude of the linear acceleration of the coin at t = 1.5 s. Assume the coin does not slip.
Solution :
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 22

Question 9.
A railway locomotive enters a stretch of track, which is in the form of a circular arc of radius 280 m, at 10 m/s and with its speed increasing uniformly. Ten seconds into the stretch its speed is 14m/s and at 18s its speed is 19 m/s. Find
(i) the magnitude of the locomotive’s linear acceleration when its speed is 14 m/s
(ii) the direction of this acceleration at that point with respect to the locomotive’s radial acceleration
(iii) the angular acceleration of the locomotive.
Answer:
Data : r = 280 m, v1 = 10 m/s at t1 = 0, v2 = 14 m/s at t2 = 10 s, v3 = 19 m/s at t3 = 18 s
(i) At t = t2, the radial acceleration is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 23
Since the tangential acceleration is constant, it may be found from the data for any two times.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 24

(ii) If θ is the angle between the resultant linear acceleration and the radial acceleration,
tan θ = \(\frac{a_{\mathrm{t}}}{a_{\mathrm{r}}}\) = \(\frac{0.5}{0.7}\) = 0.7142
∴ θ = tan-1 0.7142 = 35°32′

(iii) at = αr
The angular acceleration,
α = \(\frac{a_{\mathrm{t}}}{r}\) = \(\frac{0.5}{280}\)
= 1.785 × 10-3 rad/s2
= 1.785 mrad/s2

Question 10.
The frequency of revolution of a particle performing circular motion changes from 60 rpm to 180 rpm in 20 seconds. Calculate the angular acceleration of the particle.
Solution :
Data : f1 =60 rpm = \(\frac{60}{60}\) rev/s = 1 rev/s, f2 = 180 rpm = \(\frac{180}{60}\) rev/s = 3 rev/s, t = 20 s
The angular acceleration in SI units,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 25
OR
Using non SI units, the angular frequencies are ω1 = 60 rpm = 1 rps and ω2 = 180 rpm = 3 rps. Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 26

Question 11.
The frequency of rotation of a spinning top is 10 Hz. If it is brought to rest in 6.28 s, find the angular acceleration of a particle on its surface.
Solution:
Data: f1 = 10Hz, f2 = 0 Hz, t = 6.28s
The angular acceleration,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 27

Question 12.
A wheel of diameter 40 cm starts from rest and attains a speed of 240 rpm in 4 minutes. Calculate its angular displacement in this time interval.
Solution:
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 28

Question 13.
A flywheel slows down uniformly from 1200 rpm to 600 rpm in 5 s. Find the number of revolutions made by the wheel in 5 s.
Solution :
Data : ω0 = 1200 rpm, ω = 600 rpm, f = 5 s
Since the flywheel slows down uniformly, its angular acceleration is constant. Then, its average angular speed,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 29
Its angular displacement in time t,
θ = ωav.t = 15 × 5 = 75 revolutions

Question 33.
Define and explain centripetal force.
Answer:
Definition : In the uniform circular motion of a particle, the centripetal force is the force on the particle which at every instant points radially towards the centre of the circle and produces the centripetal acceleration to move the particle in its circular path.

Explanation : A uniform circular motion is an accelerated motion, with a radially inward (i.e., centripetal) acceleration –\(\frac{v^{2}}{r} \hat{\mathrm{r}}\) or \(-\frac{v^{2}}{r} \hat{\mathrm{r}}\), where \(\vec{r}\) is the radius vector and \(\hat{\mathbf{r}}\) is a unit vector in the direction of \(\vec{r}\). Hence, a net real force must act on the particle to produce this acceleration. This force, which at every instant must point radially towards the centre of the circle, is called the centripetal force. If m is the mass of the particle, the centripetal force is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 30

Notes :

  1. As viewed from an inertial frame of reference, the centripetal force is necessary and sufficient for the particle to perform UCM. At any instant, if the centripetal force suddenly vanishes, the particle would fly off in the direction of its linear velocity at that instant.
  2. In case the angular or linear speed changes with time, as in nonuniform circular motion, the force is not purely centripetal but has a tangential component which accounts for the tangential acceleration.

Question 34.
Give any two examples of centripetal force.
Answer:
Examples of centripetal force :

  1. For an Earth-satellite in a circular orbit, the centripetal force is the gravitational force exerted by the Earth on the satellite.
  2. In the Bohr atom, the centripetal force on an electron in circular orbit around the nucleus is the attractive Coulomb force of the nucleus.
  3. When an object tied at the end of a string is revolved in a horizontal circle, the centripetal force is the tension in the string.
  4. When a car takes a turn in a circular arc on a horizontal road with constant speed, the force of static friction between the car tyres and road surfaces is the centripetal force.

Note : The tension in a string or the force of friction is electromagnetic in origin.

Question 35.
Define and explain centrifugal force.
Answer:
Definition : In the reference frame of a particle performing circular motion, centrifugal force is defined as a fictitious, radially outward force on the particle and is equal in magnitude to the particle’s mass times the centripetal acceleration of the reference frame, as measured from an inertial frame of reference.

Explanation : A uniform circular motion is an accelerated motion, with a centripetal acceleration of magnitude v2/r or ω2r. A frame of reference attached to the particle also has this acceleration and, therefore, is an accelerated or noninertial reference frame. The changing direction of the linear velocity appears in this reference frame as a tendency to move radially outward. This is explained by assuming a fictitious centrifugal, i.e., radially outward, force acting on the particle. Since the particle is stationary in its reference frame, the magnitude of the centrifugal force is mv2/r or mω2r, the same as that of the centripetal force on the particle.

Note : The word ‘centrifugal’ comes from the Latin for ‘fleeing from the centre’. The word has the same root fuge from the Latin ‘to flee’ as does refugee.

Question 36.
Give any two examples of centrifugal force.
Answer:
Examples of centrifugal force :

  1. A person in a merry-go-round experiences a radially outward force.
  2. Passengers of a car taking a turn on a level road experience a force radially away from the centre of the circular road.
  3. A coin on a rotating turntable flies off for some high enough angular speed of the turntable.
  4. As the Earth rotates about its axis, the centrifugal force on its particles is directed away from the axis. The force increases as one goes from the poles towards the equator. This leads to the bulging of the Earth at the equator.

Question 37.
Explain why centrifugal force is called a pseudo force.
Answer:
A force which arises from gravitational, electromagnetic or nuclear interaction between matter is called a real force. The centrifugal force does not arise due to any of these interactions. Therefore, it is not a real force.

The centrifugal force in the noninertial frame of reference of a particle in circular motion is the effect of the acceleration of the frame of reference. Therefore, it is called a pseudo or fictitious force.

Question 38.
Distinguish between centripetal force and centrifugal force. State any two points of distinction.
Answer:

Centripetal force Centrifugal force
1. Centripetal force is the force required to provide centri­petal acceleration to a par­ticle to move it in a circular path. 1. The centrifugal tendency of the particle, in its acceler­ated, i.e., non-inertial, frame of reference, is explained by assuming a centrifugal force acting on it.
2. At every instant, it is directed radially towards the centre of the circular path. 2. At every instant, it is directed radially away from the centre of the circular path.
3. It is a real force arising from gravitational or electromag­netic interaction between matter. 3. It is a pseudo force since it is the effect of the acceleration of the reference frame of the revolving particle.

Question 39.
Solve the following :

Question 1.
An object of mass 0.5 kg is tied to a string and revolved in a horizontal circle of radius 1 m. If the breaking tension of the string is 50 N, what is the maximum speed the object can have?
Solution :
Data : m = 0.5 kg, r = 1 m, F = 50 N
The maximum centripetal force that can be applied is equal to the breaking tension.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 31
This is the maximum speed the object can have.

Question 2.
A certain string 500 cm long breaks under a tension of 45 kg wt. An object of mass 100 g is attached to this string and whirled in a horizontal circle. Find the maximum number of revolutions that the object can make per second without breaking the string, [g = 9.8 m/s2]
Solution :
Data : m = 100 g = 0.1 kg, r = 500 cm = 5 m, g = 9.8 m/s2, F = 45 kg wt = 45 × 9.8 N
The breaking tension is equal to the maximum centripetal force that can be applied.
∴ F = mω2r ,
But ω = 2πf, where/is the corresponding frequency of revolution.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 32
The maximum number of revolutions per second, f = 4.726 Hz

Question 3.
A disc of radius 15 cm rotates with a speed of 33\(\frac{1}{3}\) rpm. Two coins are placed on it at 4 cm and 14 cm from its centre. If the coefficient of friction between the coins and the disc is 0.15, which of the two coins will revolve with the disc ?
Solution :
Data : r = 15 cm = 0.15 m,
f = 33\(\frac{1}{3}\) rpm = \(\frac{100}{3 \times 60}\)rev/s = \(\frac{5}{9}\) Hz, µs = 0.15, r1 = 4 cm = 0.04 m, r2 = 14 cm = 0.14 m
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 33

To revolve with the disc without slipping, the necessary centripetal force must be less than or equal to the limiting force of static friction.

Limiting force of static friction, fs = µs N = µs (mg) where m is the mass of the coin and N = mg is the normal force on the coin.
∴ mω2r ≤ µs(mg) or ω2r ≤ µsg
µsg = 0.15 × 9.8 = 1.47 m/s2
For the first coin, r1 = 0.04 m.
∴ ω2r1 = (3.491)2 × 0.04 = 12.19 × 0.04 = 0.4876 m/s2
Since, ω2r1 < µsg, this coin will revolve with the disc. For the second coin, r2 = 0.14 m.
∴ ω2r2 = (3.491)2 × 0.14 = 12.19 × 0.14 = 1.707 m/s2
Since, ω2r2 > µsg, this coin will not revolve with the disc.
Thus, only the coin placed at 4 cm from the centre will revolve with the disc.

Question 40.
Derive an expression for the maximum safe speed for a vehicle on a horizontal circular road without skidding off. State its significance.
Answer:
Consider a car of mass m taking a turn of radius r along a level road. If µs is the coefficient of static friction between the car tyres and the road surface, the limiting force of friction is fs = µsN = µsmg where N = mg is the normal reaction. The forces on the car, as seen from an inertial frame of reference are shown in below figure.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 34
Then, the maximum safe speed vmax with which the car can take the turn without skidding off is set by maximum centripetal force = limiting force of static friction
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 35
This is the required expression.
Significance : The above expression shows that the maximum safe speed depends critically upon friction which changes with circumstances, e.g., the nature of the surfaces and presence of oil or water on the road. If the friction is not sufficient to provide the necessary centripetal force, the vehicle is likely to skid off the road.

[Note : At a circular bend on a level railway track, the centrifugal tendency of the railway carriages causes the flange of the outer wheels to brush against the outer rail and exert an outward thrust on the rail. Then, the reaction of the outer rail on the wheel flange provides the necessary centripetal force.]

Question 41.
Derive an expression for the maximum safe speed for a vehicle on a circular horizontal road without toppling/overturning/rollover.
Answer:
Consider a car of mass m taking a turn of radius r along a level road. As seen from an inertial frame of reference, the forces acting on the car are :

  1. the lateral limiting force of static friction \(\overrightarrow{f_{\mathrm{s}}}\) on the wheels-acting along the axis of the wheels and towards the centre of the circular path which provides the necessary centripetal force.
  2. the weight \(m \vec{g}\) acting vertically downwards at the centre of gravity (C.G.)
  3. the normal reaction \(\vec{N}\) of the road on the wheels, acting vertically upwards effectively at the C.G. Since maximum centripetal force = limiting force of static friction,
    Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 36

In a simplified rigid-body vehicle model, we consider only two parameters-the height h of the C.G. above the ground and the average distance b between the left and right wheels called the track width.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 37
The friction force \(\overrightarrow{f_{\mathrm{s}}}\) on the wheels produces a torque T, that tends to overturn/rollover the car about the outer wheel. Rotation about the front-to-back axis is called roll
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 38
When the inner wheel just gets lifted above the ground, the normal reaction \(\vec{N}\) of the road acts on the outer wheels but the weight continues to act at the C.G. Then, the couple formed by the normal reaction and the weight produces a opposite torque \(\tau_{\mathrm{r}}\) which tends to restore the car back on all four wheels
\(\tau_{\mathrm{r}}\) = mg.\(\frac{b}{2}\) … (3)

The car does not topple as long as the restoring torque \(\tau_{\mathrm{r}}\) counterbalances the toppling torque \(\tau_{\mathrm{t}}\). Thus, to avoid the risk of rollover, the maximum speed that the car can have is given by
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 39

Thus, vehicle tends to roll when the radial acceleration reaches a point where inner wheels of the four-wheeler are lifted off of the ground and the vehicle is rotated outward. A rollover occurs when the gravitational force \(m \vec{g}\) passes through the pivot point of the outer wheels, i.e., the C.G. is above the line of contact of the outer wheels. Equation (3) shows that this maximum speed is high for a car with larger track width and lower centre of gravity.

Question 42.
A carnival event known as a “well of death” consists of a large vertical cylinder inside which usually a stunt motorcyclist rides in horizontal circles. Show that the minimum speed necessary to keep the rider from falling is given by v = \(\sqrt{r g / \mu_{s}}\), in usual notations.
Answer:
The forces exerted on the rider are

  1. the normal force \(\vec{N}\) exerted by the wall, directed radially inward, is the centripetal force,
  2. the upward frictional force \(\overrightarrow{f_{\mathrm{s}}}\) exerted by the wall, since the motorcycle has a tendency to slide down,
  3. the downward gravitational force \(m \vec{g}\).

Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 40
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 41
which is the required expression.

Question 43.
A road at a bend should be banked for an optimum or most safe speed v0. Derive an expression for the required angle of banking.
OR
Obtain an expression for the optimum or most safe speed with which a vehicle can be driven along a curved banked road. Hence show that the angle of banking is independent of the mass of a vehicle.
Answer:
Consider a car taking a left turn along a road of radius r banked at an angle θ for a designed optimum or most safe speed v0. Let m be the mass of the car. In general, the forces acting on the car are
(a) its weight \(m \vec{g}\), acting vertically down
(b) the normal reaction of the road \(\vec{N}\), perpendicular to the road surface
(c) the frictional force \(\overrightarrow{f_{s}}\) along the inclined surface of the road.

At the optimum speed, frictional force is not relied upon to contribute to the necessary lateral centripetal force. Thus, ignoring \(\overrightarrow{f_{\mathrm{s}}}\), resolve \(\vec{N}\) into two perpendicular components : N cos θ vertically up and N sin θ horizontally towards the centre of the circular path. Since there is no acceleration in the vertical direction, N cos θ balances mg and N sin θ provides the necessary centripetal force.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 42
Equation (3) gives the expression for the required angle of banking. From EQ. (3), we can see that θ depends upon v0, r and g. The angle of banking is independent of the mass of a vehicle negotiating the curve. Also, for a given r and θ, the recommended optimum speed is
v0 = \(\sqrt{r g \tan \theta}\) … (4)

Question 44.
State any two factors on which the most safe speed of a car in motion along a banked road depends.
Answer:
The angle of banking of the road and the radius of the curved path.

Question 45.
A curved horizontal road must be banked at an angle θ’ for an optimum speed v. What will happen to a vehicle moving with a speed v along this road if the road is banked at an angle θ such that
(i) θ < θ’
(ii) θ > θ’?
Answer:
(i) For θ < θ’, the horizontal component of the normal reaction would be less than the optimum value and will not be able to provide the necessary centripetal force. Then, the vehicle will tend to skid outward, up the inclined road surface.

(ii) For θ > θ’, the horizontal component of the normal reaction would be more than the necessary centripetal force. Then, the vehicle will tend to skid down the banked road.

Question 46.
A banked circular road is designed for traffic moving at an optimum or most safe speed v0. Obtain an expression for
(a) the minimum safe speed
(b) the maximum safe speed with which a vehicle can negotiate the curve without skidding.
Answer:
Consider a car taking a left turn along a road of radius r banked at an angle θ for a designed optimum speed v. Let m be the mass of the car. In general, the forces acting on the car are
(a) its weight \(m \vec{g}\), acting vertically down
(b) the normal reaction of the road \(\vec{N}\), perpendicular to the road surface
(c) the frictional force \(\overrightarrow{f_{\mathrm{s}}}\) along the inclined surface of the road.
If µs is the coefficient of static friction between the tyres and road, fs = µsN.

(a) For minimum safe speed : If the car is driven at a speed less than the optimum speed v0, it may tend to slide down the inclined surface of the road so that \(\overrightarrow{f_{\mathrm{s}}}\) is up the incline.

Resolve \(\vec{N}\) and \(\overrightarrow{f_{\mathrm{s}}}\) into two perpendicular components : Ncos θ and fs sin θ vertically up; N sin θ horizontally towards centre of the circular path. So long as the car takes the turn without skidding off, the horizontal components N sin θ and fs cos θ together provide the necessary centripetal force, and N cos θ balances the sum mg + fs sin θ. If vmax is the maximum safe speed without skidding,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 350
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 351

(b) For maximum safe speed : If the car is driven fast enough, at a speed greater than the optimum speed v, it may skid off up the incline so that \(\overrightarrow{f_{\mathrm{s}}}\) is down the incline.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 356
Resolve \(\vec{N}\) and \(\overrightarrow{f_{\mathrm{s}}}\) into two perpendicular components : N cos θ vertically up and f<sub>s</sub> sin θ vertically down; N sin θ and f<sub>s</sub> cos θ horizontally towards the centre of the circular path. So long as the car takes the turn without skidding off, the horizontal components N sin θ and f cos θ together provide the necessary centripetal force, and N cos θ balances the sum mg + f sin θ. If v is the maximum safe
speed without skidding,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 43

Ignoring few special cases, the maximum value of µs = 1. Thus, for θ ≥ 45°, vmax = ∞, i.e., on a heavily banked road a car is unlikely to skid up the incline and the minimun limit is more important.

Question 47.
Solve the following :

Question 1.
Find the maximum speed with which a car can be safely driven along a curve of radius 100 m, if the coefficient of friction between its tyres and the road is 0.2 [g = 9.8 m/s2].
Solution :
Data : r = 100 m, µs = 0.2, g = 9.8 m/s2
The maximum speed, v = \(\sqrt{r \mu_{s} g}\)
= \(\sqrt{100 \times 0.2 \times 9.8}\) = 14 m/s

Question 2.
A flat curve on a highway has a radius of curvature 400 m. A car goes around the curve at a speed of 32 m/s. What is the minimum value of the coefficient of friction that will prevent the car from sliding?
Solution:
Data : r = 400 m, v = 32 m/s, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 44

Question 3.
A car can be driven on a flat circular road of radius r at a maximum speed v without skidding. The same car is now driven on another flat circular road of radius 2r on which the coefficient of friction between its tyres and the road is the same as on the first road. What is the maximum speed of the car on the second road such that it does not skid?
Solution:
Data: v1 = v, r1 = r, r2 = 2r
On a flat circular road, the maximum safe speed is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 45

Question 4.
On a dry day, the maximum safe speed at which a car can be driven on a curved horizontal road without skidding is 7 m/s. When the road is wet, the frictional force between the tyres and road reduces by 25%. How fast can the car safely take the turn on the wet road ?
Solution:
Let subscripts 1 and 2 denote the values of a quantity under dry and wet conditions, respectively.
Data : v1 = 7 m/s, f2 = f1, – 0.25f1 = 0.75f1

On a dry horizontal curved road, the frictional force between the tyres and road is f1 = µ1mg, where m is the mass of the car and g is the gravitational acceleration.

The maximum safe speed for taking a turn of radius r on a dry horizontal curved road is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 46

Question 5.
A coin kept at a distance of 5 cm from the centre of a turntable of radius 1.5 m just begins to slip when the turntable rotates at a speed of 90 rpm. Calculate the coefficient of static friction between the coin and the turntable. [g = π2 m/s2]
Solution:
Data: r = 5 cm = 0.05 m, f = 90 rpm = \(\frac{90}{60}\) rps = 1.5 rps, g = π2 m/s2

The centripetal force for the circular motion of the coin is provided by the friction between the coin and the turntable. The coin is just about to slip off the turntable when the limiting force of friction is equal to the centripetal force.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 47

Question 6.
A thin cylindrical shell of inner radius 1.5 m rotates horizontally, about a vertical axis, at an angular speed ω. A wooden block rests against the inner surface and rotates with it. If the coefficient of static friction between block and surface is 0.3, how fast must the shell be rotating if the block is not to slip and fall ?
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 48
Solution :
Data : r = 1.5 m, µs = 0.3
The normal force \(\vec{N}\) of the shell on the block is the centripetal force which holds the block in place. \(\vec{N}\) determines the friction on the block, which in turn keeps it from sliding downward. If the block is not to slip, the friction force \(\overrightarrow{f_{\mathrm{s}}}\) must balance the weight \(m \vec{g}\) of the block.
∴ N = mω2r and fs = μsN = mg
∴ μs2r) = mg
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 49
This gives the required angular speed.

Question 7.
A motorcyclist rounds a curve of radius 25 m at 36 km/h. The combined mass of the motorcycle and the man is 150 kg.

  1. What is the centripetal force exerted on the motorcyclist ?
  2. What is the upward force exerted on the motorcyclist?

Solution :
Data : r = 25m, v = 36 km/h = 36 × \(\frac{5}{18}\)m/s = 10 m/s, m = 150 kg, g = 10 m/s2

  1. Centripetal force, F = \(\frac{m v^{2}}{r}\) = \(\frac{150 \times(10)^{2}}{25}\) = 600 N
  2. Upward force = normal reaction of the road surface = mg = 150 × 10 = 1500 N

Question 8.
A motorcyclist is describing a circle of radius 25 m at a speed of 5 m/s. Find his inclination with the vertical. What is the value of the coefficient of friction between the tyres and ground ?
Solution :
Data : v = 5 m/s, r = 25 m, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 50

Question 9.
A motor van weighing 4400 kg (i.e., a motor van of mass 4400 kg) rounds a level curve of radius 200 m on an unbanked road at 60 km/h. What should be the minimum value of the coefficient of friction to prevent skidding ? At what angle should the road be banked for this velocity?
Solution :
Data : m = 4400 kg, r = 200 m,
v = 60 km/h = 60 × \(\frac{5}{18}\)m/s = \(\frac{50}{3}\) m/s, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 51
[Note : In part (ii), v is to be taken as the optimum speed.]

Question 10.
An amusement park ride (known variously as the Rotor, the Turkish Twist and the Gravitron) consists of a large vertical cylinder that is spun about it axis fast enough such that the riders remain pinned against its inner wall. The floor drops away once the cylinder has attained its full rotational speed. The radius of the cylinder is R and the coefficient of static friction between a rider and the wall is μs.
(i) Show that the minimum angular speed necessary to keep a rider from falling is given by ω = \(\sqrt{g / \mu_{s} R} \text {. }\).
(ii) Obtain a numerical value for the frequency of rotation of the cylinder in rotations per minute if R =4 m and
µs = 0.4.
Solution:
Data: R = 4 m, µs = 0.4, g = 10 m/s2
The forces exerted on the rider, when the floor
drops away, are

  1. the normal force \(\vec{N}\) exerted by the wall, directed radially inward, is the centripetal force
  2. the upward frictional force \(\overrightarrow{f_{\mathrm{s}}}\) exerted by the wall
  3. the downward gravitational force mg .

∴ N = mω2R and fs = µsN = µs (mω2R) where m is the mass of the rider and ω is the angular speed of the Rotor cylinder. For the rider not to fall, \(\overrightarrow{f_{\mathrm{s}}}\) must balances \(m \vec{g}\).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 52
This is the minimum angular speed necessary. Since ω = 2πf, the corresponding frequency of rotation of the cylinder is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 53

Question 11.
The two rails of a broad-gauge railway track are 1.68 m apart. At a circular curve of radius 1.6 km, the outer rail is raised relative to the inner rail by 8.4 cm. Find the angle of banking of the track and the optimum speed of a train rounding the curve.
Solution :
Data : l = 1.68 m = 168 cm, r = 1.6 km = 1600 m, h = 8.4 cm, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 54

Question 12.
A metre gauge train is moving at 72 kmph along a curved railway track of radius of curvature 500 m. Find the elevation of the outer rail above the inner rail so that there is no side thrust on the outer rail.
Solution :
Data : r = 500 m, v = 72 kmph = 72 × \(\frac{5}{18}\) m/s = 20 m/s, g = 10 m/s2, l = 1 m
tan θ = \(\frac{v^{2}}{r g}\)
= \(\frac{(20)^{2}}{500 \times 10}\) = 0.08
The required angle of banking,
θ = tan-1 (0.08) = 4°4′
The elevation of the outer rail relative to the inner rail,
h = l sin θ
= (1)(sin 4°4′) = 0.0709 m = 7.09 cm

Question 13.
A circular race course track has a radius of 500 m and is banked at 10°. The coefficient of static friction between the tyres of a vehicle and the road surface is 0.25. Compute
(i) the maximum speed to avoid slipping
(ii) the optimum speed to avoid wear and tear of the tyres.
Solution :
Data : r = 500 m, θ = 10°, µs = 0.25, g = 9.8 m/s2, tan 10° = 0.1763

(i) On the banked track, the maximum speed of the vehicle without slipping (skidding) is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 55

(ii) The optimum speed of the vehicle on the track is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 56

Question 48.
Define a conical pendulum.
Answer:
A conical pendulum is a small bob suspended from a string and set in UCM in a horizontal plane with the centre of its circular path below the point of suspension such that the string makes a constant angle θ with the vertical.
OR
A conical pendulum is a simple pendulum whose bob revolves in a horizontal circle with constant speed such that the string describes the surface of an imaginary right circular cone.

Question 49.
Derive an expression for the angular speed of the bob of a conical pendulum.
OR
Derive an expression for the frequency of revolution of the bob of a corical pendulum.
Answer:
Consider a conical pendulum of string length L with its bob of mass m performing UCM along a circular path of radius r.
At every instant of its motion, the bob is acted upon by its weight \(m \vec{g}\) and the tension \(\vec{F}\) in the string. If the constant angular speed of the bob is ω, the necessary horizontal centripetal force is Fc = mω2r

Fc is the resultant of the tension in the string and the weight. Resolve \(\vec{F}\) into components F cos θ vertically opposite to the weight of the bob and F sin θ horizontal. F cos θ balances the weight. F sin θ is the necessary centripetal force.
∴ F sin θ = mω2r … (1)
and F cos θ = mg … (2)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 57
is the required expression for ω.
[Note : From Eq. (4), cos θ = g/ω2L. Therefore, as ω increases, cos θ decreases and θ increases.
If n is the frequency of revolution of the bob,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 58
is the required expression for the frequency.

Question 50.
What will happen to the angular speed of a conical pendulum if its length is increased from 0.5 m to 2 m, keeping other conditions the same?
Answer:
The angular speed of the conical pendulum will become half the original angular speed.

Question 51.
Write an expression for the time period of a conical pendulum. State how the period depends on the various factors.
Answer:
If T is the time period of a conical pendulum of string length L which makes a constant angle θ with the vertical,
T = 2π\(\sqrt{\frac{L \cos \theta}{g}}\)
is the required expression
(Note: L cos θ = OC = h, where h is the axial height of the cone.
∴ T = 2π\(\sqrt{\frac{h}{g}}\)

where g is the acceleration due to gravity at the place.

From the above expression, we can see that

  1. T ∝ \(\sqrt{L}\)
  2. T ∝ \(\sqrt{\cos \theta}\) if θ increases, cos θ and T decrease
  3. T ∝ \(\frac{1}{\sqrt{g}}/latex]
  4. The period is independent of the mass of the bob.

Question 52.
Solve the following :

Question 1.
A stone of mass 2 kg is whirled in a horizontal circle attached at the end of a 1.5 m long string. If the string makes an angle of 30° with the vertical, compute its period.
Solution :
Data : L = 1.5 m, θ = 30°, g = 10 m/s2
The period of the conical pendulum,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 59

Question 2.
A string of length 0.5 m carries a bob of mass 0. 1 kg at its end. If this is to be used as a conical pendulum of period 0.4πs, calculate the angle of inclination of the string with the vertical and the tension in the string.
Solution :
Data : L = 0.5m, m = 0.1 kg, T = 0.4πs, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 60

Question 3.
In a conical pendulum, a string of length 120 cm is fixed at a rigid support and carries a bob of mass 150 g at its free end. If the bob is revolved in a horizontal circle of radius 0.2m around a vertical axis, calculate the tension in the string. [g = 9.8 m/s2]
Solution:
Data : L = 120 cm = 1.2 m, m = 150 g = 0.15 kg,
r = 0.2 m, g = 9.8 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 71

Question 4.
A stone of mass 1 kg, attached at the end of a 1 m long string, is whirled in a horizontal circle. If the string makes an angle of 30° with the vertical, calculate the centripetal force acting on the stone.
Solution :
Data : m = 1 kg, L = 1 m, θ = 30°, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 72
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 73

Question 53.
What is vertical circular motion? Comment on its two types.
Answer:
A body revolving in a vertical circle in the gravitational field of the Earth is said to perform vertical circular motion.

A vertical circular motion controlled only by gravity is a nonuniform circular motion because the linear speed of the body does not remain constant although the motion can be periodic.

In a controlled vertical circular motion, such as that a body attached to a rod, the linear speed of the body can be constant (including zero) so that such a motion can be uniform and periodic.

Question 54.
A body, tied to a string, performs circular motion in a vertical plane such that the tension in the string is zero at the highest point. What is the linear speed of the body at the

  1. lowest position
  2. highest position ?

Answer:

  1. [latex]\sqrt{5 r g}\)
  2. \(\sqrt{r g}\) in the usual notation.

Question 55.
A body, tied to a string, performs circular motion in a vertical plane such that the tension in the string is zero at the highest point. What is the angular speed of the body at the

  1. highest position
  2. lowest position ?

Answer:

  1. \(\sqrt{g / r}\)
  2. \(\sqrt{5 g / r}\) in the usual notation.

Question 56.
In a vertical circular motion controlled by gravity, derive an expression for the speed at an arbitrary position. Hence, show that the speed decreases while going up and increases while coming down.
OR
In a nonuniform vertical circular motion, derive expressions for the speed and tension/normal force at an arbitrary position.
OR
Show that a vertical circular motion controlled by gravity is a non uniform circular motion.
Answer:
Consider a small body of mass m tied to a string and revolved in a vertical circle of radius r. At every instant of its motion, the body is acted upon by its weight \(m \vec{g}\) and the tension \(\vec{T}\) in the string. At any instant, when the body is at the position P, let the string make an angle θ with the vertical, \(m \vec{g}\) is resolved into components, mg cos θ (radial) and mg sin θ (tangential).

At point P shown, the net force on the body towards the centre, T-mg cos θ, is the necessary centripetal force on the body. If v is its speed at P,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 74
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 75
Let v2 be the speed of the body at the lowest point B, which is the reference level for zero potential energy. Then, the body has only kinetic energy
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 76
As the body goes from B to P, it rises through a height h = r – r cos θ = r(1 – cos θ).
Total energy at P = KE + PE
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 77
Assuming that the total energy of the body is conserved, total energy at any point = total energy at the bottom.
Then, from Eqs. (2) and (3),
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 78
From the above expression, it can be seen that the linear speed v changes with θ. Thus, as θ increases, (while going up) cos θ decreases, 1 – cos θ increases, and v decreases. While coming down, θ decreases and v increases. Hence, a vertical circular motion controlled by gravity is a nonuniform circular motion.

Substituting for v2 from Eq. (4) in Eq. (1),
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 79
Equation (6) is the expression for the tension in the string at any instant in terms of the speed at the lowest point.

Question 57.
A body at the end of a rod is revolved in a non-uniform vertical circular motion. Show that
(i) it must have a minimum speed 2\(\sqrt{g r}\) at the bottom
(ii) the difference in tensions in the rod at the highest and lowest positions is 6 mg.
Answer:
Consider a body of mass m attached to a rod and revolved in a vertical circle of radius r at a place where the acceleration due to gravity is g. We shall assume that the rod is not rigid so that the tension in the rod changes. As the rod is rotated in a nonuniform circular motion, the tension in the rod changes from a minimum value T1 when the body is at the highest point to a maximum value T2 when the body is at the bottom of the circle. At every instant, the body is acted upon by two forces, namely/its weight \(m \vec{g}\) and the tension \(\vec{T}\) in the string.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 81
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 82

Question 58.
You may have seen in a circus a motorcyclist driving in vertical loops inside a hollow globe (sphere of death). Explain clearly why the motor-cyclist does not fall down when at the highest point of the chamber.
Answer:
A motorcyclist driving in vertical loops inside a hollow globe performs vertical circular motion. Suppose the mass of the motorcycle and motorcyclist is m and the radius of the chamber is r. At every instant of the motion, the motorcyclist is acted upon by the weight \(m \vec{g}\) and the normal reaction \(\vec{N}\).

At the highest point, let v1 be the speed and \(\vec{N}_{1}\) the normal reaction. Here, both \(\vec{N}_{1}\) and \(m \vec{g}\) are parallel, vertically downward. Hence, the net force on the motorcyclist towards the centre O is N1 + mg. If this force is able to provide the necessary centripetal force at the highest point, the motorcycle does not lose contact with the globe and fall down.

The minimum value of this force is found from the limiting case when N, just becomes zero and the weight alone provides the necessary centripetal force :
\(\frac{m v_{1}^{2}}{r}\) = mg
This requires that the motorcycle has a minimum speed at the highest point given by \(v_{1}^{2}\) = gr or v1 = \(\sqrt{g r}\)

[Note : The ‘globe of death’ is a circus stunt in which stunt drivers ride motorcycles inside a mesh globe. Starting from small horizontal circles, they eventually perform revolutions along vertical circles. The linear speed is more for larger circles but angular speed is more for smaller circles as in conical pendulum.]

Question 59.
A car crosses over a bridge which is in the form of a convex arc with a uniform speed,
(i) State the expression for the normal reaction on the car.
OR
How does the normal reaction on the car vary with speed?
(ii) Hence show that the maximum speed with which the car can cross the bridge without losing contact with the road is equal to \(\sqrt{r g}\).
Answer:
Suppose a car of mass m, travelling with a uniform speed v, crosses over a bridge which is in the form of a convex arc of radius r.
(i) The forces acting on it at the highest point are as shown in below figure. Their resultant mg-N provides the centripetal force.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 83
is the required expression. It shows that as v increases, N decreases.

(ii) Equation (1) shows that for g – \(\frac{v^{2}}{r}\) = 0, i.e., for centripetal acceleration equalling the gravitational acceleration, N = 0. That is, for \(\frac{v^{2}}{r}\) = g or v = \(\sqrt{r g}\), the
car just loses contact with the road. Therefore, this is the maximum speed with which a car can cross the bridge, irrespective of its mass.

[Data : Take g = 10 m/s2 unless specified otherwise]

Question 60.
Solve the following :

Question 1.
An object of mass 1 kg tied to one end of a string of length 9 m is whirled in a vertical circle. What is the minimum speed required at the lowest position to complete the circle ? [g = 9.8 m/s2]
Solution :
Data : m = 1 kg, r = 9 m, g = 9.8 m/s2
The minimum speed of the object at the lowest position is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 84

Question 2.
A stone of mass 5 kg, tied at one end of a rope of length 0.8 m, is whirled in a vertical circle. Find the minimum velocity at the highest point and at the midway point, [g = 9.8 m/s2]
Solution:
Data : m = 5 kg, r = l = 0.8 m, g = 9.8 m/s2

  1. The minimum velocity of the stone at the highest point in its path,
    v = \(\sqrt{r g}\) = \(\sqrt{0.8 \times 9.8}\) = 2.8 m/s
  2. The minimum velocity of the stone at the midway point in its path,
    v = \(\sqrt{3 r g}\) = \(\sqrt{3 \times 0.8 \times 9.8}\) = 4.85 m/s

Question 3.
A small body of mass 0.3 kg oscillates in a vertical plane with the help of a string 0.5 m long with a constant speed of 2 m/s. It makes an angle of 60° with the vertical. Calculate the tension in the string.
Solution :
Data : m = 0.3 kg, r = 0.5 m, v = 2 m/s, θ = 60°, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 85

Question 4.
A bucket of water is whirled in a vertical circle at an arm’s length. Find the minimum speed at the top so that no water spills out. Also find the corresponding angular speed. [Assume r = 0.75 m]
Solution :
Data : r = 0.75 m, g = 10 m/s2
At the highest point the minimum speed required is v = \(\sqrt{r g}\) = \(\sqrt{0.75 \times 10}\) = 2.738 m/s
The corresponding angular speed is 2.738
ω = \(\frac{v}{r}\) = \(\frac{2.738}{0.75}\) = 3.651 rad/s

Question 5.
A pendulum, with a bob of mass m and string length l, is held in the horizontal position and then released into a vertical circle. Show that at the lowest position the velocity of the bob is \(\sqrt{2 g l}\) and the tension in the string is 3 mg.
Solution :
Taking the reference level for zero potential energy to be the bottom of the vertical circle, the initial potential energy of the bob at the horizontal position = mgh = mgl.

Hence, at the bottom where the speed of the bob is v, it has only kinetic energy = \(\frac{1}{2}\)mv2.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 86
This gives the required velocity at the lowest position.
Also, at the bottom, the tension (T) and the centripetal acceleration are upward while the force of gravity is downward.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 87
Equations (1) and (2) give the required expressions for the velocity and tension at the lowest position.

Question 6.
A stone of mass 100 g attached to a string of length 50 cm is whirled in a vertical circle by giving it a velocity of 7 m/s at the lowest point. Find the velocity at the highest point.
Solution :
Data : m = 0.1 kg, r = l = 0.5 m, v2 = 7 m/s, g = 10 m/s2
The total energy at the bottom, Ebot
= KE + PE = \(\frac{1}{2} m v_{2}^{2}\) + 0 = \(\frac{1}{2}\)(0.1) (7)2 = 2.45 J
The total energy at the top, Etop = KE + PE = \(\frac{1}{2} m v_{1}^{2}\) + mg (2r)
= \(\frac{1}{2}\)(0.1)\(v_{1}^{2}\) + (0.1) (10) (2 × 0.5)
= 0.05\(v_{1}^{2}\) + 1
By the principle of conservation of energy,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 88

Question 7.
A pilot of mass 50 kg in a jet aircraft executes a “loop-the-loop” manoeuvre at a constant speed of 250 m/s. If the radius of the vertical circle is 5 km, compute the force exerted by the seat on the pilot at
(i) the top of the loop
(ii) the bottom of the loop.
Solution :
Data: m = 50 kg, v = 250m/s, r = 5 km = 5 × 103 m, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 89

(i) At the top of the loop : The forces on the pilot are the gravitational force \(m \vec{g}\) and the normal force \(\vec{N}_{1}\), exerted by the seat, both acting downward. So the net force downward that causes the centripetal acceleration has a magnitude
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 90

(ii) At the bottom of the loop : The forces on the pilot are the downward gravitational force \(m \vec{g}\) and the upward normal force \(\vec{N}_{2}\) exerted by the seat. So the net upward force that causes the centripetal acceleration has a magnitude N2 – mg.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 91
The forces exerted by the seat on the pilot at the top and bottom of the loop are 125 N and 1125 N, respectively.

Question 8.
A ball released from a height h along an incline, slides along a circular track of radius R (at the end of the incline) without falling vertically downwards. Show that hmin = \(\frac{5}{2}\) R.
Solution:
To just loop-the-loop, the ball must have a speed v2 = \(\sqrt{5 R g}\) at the bottom of the circular track.

If hmin is the minimum height above the bottom of the circular track from which the ball must be released, by the principle of conservation of energy, we have,
mghmin = \(\frac{1}{2} m v_{2}^{2}\) = \(\frac{1}{2} m(5 R g)\)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 92

Note : 1f the ball rolls all along the track without slipping, its total energy at the top of the circular track should take into account the rotational kinetic energy of the ball.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 93

Question 9.
A block of mass 1 kg is released from P on a frictionless track which ends with a vertical quarter circular turn.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 94
What are the magnitudes of the radial acceleration and total acceleration of the block when it arrives at Q ?
Solution :
Data : m = 1 kg, h = 6 m, r = 2 m, g = 10 m/s2
Let v be the speed of the block at Question Then, the total energy of the block at Q is
E = KE + PE = \(\frac{1}{2} m v^{2}\) + mgr
By the principle of conservation of energy,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 95
The radial acceleration has a magnitude 40 m/s2. The total acceleration has a magnitude 41.23 m/s2 and makes an angle of 14°2′ with the radial acceleration.

Question 10.
A loop-the-loop cart runs down an incline into a vertical circular track of radius 3 m and then describes a complete circle. Find the minimum height above the top of the circular track from which the cart must be released.
Solution :
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 96
Data : r = 3 m
To just loop-the-loop, the cart must have a speed V1 = \(\sqrt{r g}\) at the top of the loop.

If h is the minimum height above the top of the loop from which the cart must be released, by the principle of conservation of energy, we have, mgh = \(\frac{1}{2} m v_{1}^{2}\) = \(\frac{1}{2} m g r\)
∴ h = \(\frac{r}{2}\) = \(\frac{3}{2}\) = 1.5 m

Question 11.
A motorcyclist rides in vertical circles in a hollow sphere of radius 5 m. Find the required minimum speed and minimum angular speed, so that he does not lose contact with the sphere at the highest point. [g = 9.8 m/s2]
Solution :
Data : r = 5 m, g = 9.8 m/s2
Let v and ω be respectively the required minimum speed and angular speed at the highest point.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 97

Question 12.
The vertical section of a road over a bridge in the direction of its length is in the form of an arc of a circle of radius 4.4 m. Find the maximum speed with which a vehicle can cross the bridge without losing contact with the road at the highest point, if the centre of gravity of the vehicle is 0.5 m from the ground.
Solution :
Data: While travelling along the bridge, the vehicle moves along a vertical circle of radius r = 4.4 + 0.5 = 4.9 m, g = 10 m/s2.
If m is the mass and v is the maximum speed of the vehicle, then at the highest point,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 98

Question 13.
A small body tied to a string is revolved in a vertical circle of radius r such that its speed at the top of the circle is \(\sqrt{2 g r}\). Find
(i) the angular position of the string when the tension in the string is numerically equal to 5 times the weight of the body.
(ii) the KE of the body at this position
(iii) the minimum and maximum KEs of the body.
[Take m = 0.1 kg, r = 1.2 m, g = 10 m/s2]
Solution :
Data : vtop = \(\sqrt{2 g r}\), T = 5 mg, m = 0.1 kg, r = 1.2 m, g = 10 m/s2

Let the angular position of the string, θ = 0° when the body is at the bottom of the circle.

We assume total energy to be conserved and take the reference level for zero potential energy to be the bottom of the circle.

Total energy at the top, E
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 99
At P, the vertical displacement of the body from the bottom is r(1 – cos θ). Its total energy there is also E.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 100

Question 14.
An object of mass 0.5 kg attached to a rod of length 0.5 m is whirled in a vertical circle at a constant angular speed. If the maximum tension in the rod is 5 kg wt, calculate the linear speed of the object and the maximum number of revolutions it can complete in a minute.
Solution :
Data : m = 0.5 kg, r = l = 0.5 m, g = 10 m/s2,
T2 = 5 kg wt = 5 × 10 N

As the rod is rotated in a vertical circle at a constant angular speed, the linear speed of the object at the end of the rod is constant, say v. However, the tension in the rod changes from a minimum value T1 when the object is at the highest point to a maximum value T2 when the object is at the bottom of the circle.

At the bottom of the circle, the tension and acceleration are upward while the force of gravity is downward.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 101
∴ The maximum number of revolutions the object can complete in a minute is 127.98.

Question 15.
A small body of mass m = 0.1 kg at the end of a cord 1 m long swings in a vertical circle. Its speed is 2 mIs when the cord makes an angle θ = 30° with the vertical. Find the tension in the cord.
Solution:
Data: m = 0.1 kg, r = 1 m, y = 2 m/s, θ = 30°,
g = 9.8 m/s2
When the cord makes an angle θ with the vertical, the centripetal force on the body is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 102

Question 16.
A bucket of water is tied to one end of a rope 8 m long and rotated about the other end in a vertical circle. Find the number of revolutions per minute such that water does not spill.
Solution:
[Important note : The circular motion of the bucket in a vertical plane under gravity is not a uniform circular motion. Assuming the critical case of the motion such that the bucket has the minimum speed at the highest point required for the water to stay put in the bucket, we can find the minimum frequency of revolution. ]
Data :r = 8m, g = 9.8 m/s2, π = 3.142
Assuming the bucket has a minimum speed v = \(\sqrt{r g}\) at the highest point, the corresponding angular speed is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 103

Question 61.
Derive an expression for the kinetic energy of a body rotating with constant angular velocity.
Answer:
Consider a rigid body rotating with a constant angular velocity \(\vec{\omega}\) about an axis passing through the point O and perpendicular to the plane of the figure. Suppose that the body is made up of N particles of masses m1, m2, …, mN situated at perpendicular distances r1, r2, , rN, respectively, from the axis of rotation as shown in below figure.

As the body rotates, all the particles perform uniform circular motion with the same angular velocity \(\vec{\omega}\). However, they have different linear speeds depending upon their distances from the axis of rotation.

The linear speed of the particle with mass ml is v1 = r1ω. Therefore, its kinetic energy is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 1040
where I = \(\sum_{i=1}^{N} m_{i} r_{i}^{2}\) is the moment of inertia of the body about the axis of rotation.
Equation (2) gives the required expression.

Question 62.
Define moment of inertia. State the factors which it depends on. Obtain its dimensions and state its SI unit.
OR
Define moment of inertia. State its dimensions and SI units.
Answer:
(1) Moment of inertia : The moment of inertia of a body about a given axis of rotation is defined as the sum of the products of the masses of the particles of the body and the squares of their respective distances from the axis of rotation.

If the body is made up of N discrete particles of masses m1, m2, …,mN situated at respective distances r1, r2, …, rN from the axis of rotation, the moment of inertia of the body is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 105
For a rigid body, having a continuous and uniform distribution of mass, the moment of inertia is
I = \(\int r^{2} d m\) …(2)
where dm is the mass of an infinitesimal element, situated at distance r from the axis of rotation.

(2) The moment of inertia of a rigid body depends on

  1. the mass and shape of the body
  2. orientation and position of the rotation axis
  3. distribution of the mass about the rotation axis.

(3) Dimensions :
[Moment of inertia] = [mass] [distance]2
= [M] [L2] = [M1L2T0]

(4) SI unit : The kilogram-metre2 (kg.m2).

Question 63.
Explain the physical significance of moment of inertia.
Answer:
(1) The physical significance of moment of inertia can be understood by comparing the formulae in the following table.

Linear motion Rotational motion
1. Momentum = mass × velocity 1. Angular momentum = moment of inertia × angular velocity
2. Force = mass × acceleration 2. Torque = moment of inertia × angular acceleration
3. Kinetic energy = \(\frac{1}{2} M v^{2}\) 3. Kinetic energy = \(\frac{1}{2} I \omega^{2}\)

(2) Force produces acceleration, while torque produces angular acceleration. Force and torque are analogous quantities. Also, momentum and angular momentum are analogous quantities.
(3) By comparing the above formulae, we find that moment of inertia plays the same role in rotational motion as that played by mass in linear motion. The moment of inertia of a body is its rotational inertia, that which opposes any tendency to change its angular velocity. In the absence of a net torque, the body continues to rotate with a uniform angular velocity.

Question 64.
Three point masses M1, M2 and M3 are located at the vertices of an equilateral triangle of side a. What is the moment of inertia of the system about an axis along the altitude of the triangle passing through M1 ?
Answer:
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 106
The moment of inertia of the system about the altitude passing through M1 is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 107

Question 65.
Find the moment of inertia of a hydrogen molecule about its centre of mass if the mass of each hydrogen atom is m and the distance between them is R.
Answer:
We assume the rotation axis to be a transverse axis through the centre of mass of the linear molecule H2. Then, each of the hydrogen atom is a distance \(\frac{1}{2}\)R from the CM. Therefore, the MI of the molecule about this axis,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 108

Notes :

  1. For a H2 molecule, mH = 1.674 × 10-27 kg and bond length = 7.774 × 10-11 m, so that I = 5.065 × 10-48 kg.m2.
  2. As atoms are treated as particles, we do not consider rotation about the line passing through the atoms.

Question 66.
Solve the following :

Question 1.
Four particles of masses 0.2 kg, 0.3 kg, 0.4 kg and 0.5 kg respectively are kept at comers A, B, C and D of a square ABCD of side 1 m. Find the moment of inertia of the system about an axis passing through point A and perpendicular to the plane of the square.
Solution :
Data : m1 = 0.2 kg, m2 = 0.3 kg, m3 = 0.4 kg, m4 = 0.5 kg
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 109

The axis of rotation passes through point A and is perpendicular to the plane of the square. Hence the distance (r1) of mass ml from the axis is r1 =0, that of mass m2 is r2 = AB = 1 m, that of mass m3 is r3 = \(\sqrt{2}\)AC m and that of mass m4 is r4 = AD = 1 m.
The moment of inertia,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 110

Question 2.
The moment of inertia of the Earth about its axis of rotation is 9.83 × 10 kg.m2 and its angular speed is 7.27 × 10-5 rad/s. Calculate its
(i) kinetic energy of rotation
(ii) radius of gyration. [ Mass of the Earth = 6 × 1024 kg]
Solution :
Data : I = 9.83 × 1037 kg.m2, ω = 7.27 × 10-5 rad/s, M = 6 × 1024 kg

(i) The kinetic energy of rotation of the Earth,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 111

Question 67.
State an expression for the moment of inertia of a thin ring about its transverse symmetry axis.
Answer:
A thin uniform ring (or hoop) has all its mass uniformly distributed along the circumference of a circle. It is taken to be a two-dimensional body. It is also assumed that the radial thickness of the ring is so small as to be completely negligible in comparison to its radius.

Consider a thin ring (or hoop) of radius R and mass M. The axis of rotation through its centre C is perpendicular to its plane. C is also its centre of mass (CM).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 112
The MI of the ring about the transverse symmetry axis is
ICM = MR2

Question 68.
Derive an expression for the moment of inertia of a thin uniform disc about its transverse symmetry axis.
Answer:
A thin uniform disc has all its mass homogeneously distributed over its circular surface area. It is taken to be a two-dimensional body, i.e., its axial thickness is small as to be completely negligible in comparison to its radius. Consider a thin disc of radius R and mass M. Its mass per unit area is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 113
The axis of rotation is the transverse symmetry axis, through its centre of mass (CM) and perpendicular to its plane. For rotation about this axis, we consider the disc to consist of a large number of thin concentric rings, having the same rotation axis as the transverse symmetry axis of the disc. One such elemental ring at a distance r from the rotation axis shown in below figure, has mass dm and radial width dr.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 114
Since the disc is uniform, the area and mass of this elemental ring are
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 115
and its moment of inertia (MI) about the given axis is dm.r2.
Therefore, the MI of the disc is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 116
This gives the required expression.

Question 69.
Is radius of gyration of a rigid body a constant quantity?
Answer:
Radius of gyration of a rigid body depends on the distribution of mass of the body about a rotation axis and, therefore, changes with the choice of the rotation axis. Hence, unlike the mass of the body which is constant, radius of gyration and moment of inertia of the body are not constant.

Question 70.
State an expression for the radius of gyration of
(i) a thin ring
(ii) a thin disc, about respective transverse symmetry axis.
OR
Show that for rotation about respective transverse symmetry axis, the radius of gyration of a thin disc is less than that of a thin ring.
Answer:
(i) The MI of the ring about the transverse symmetry axis is
ICM = MR2 … (1)
Radius of gyration : The radius of gyration of the ring about the transverse symmetry axis is
K = \(\sqrt{I_{\mathrm{CM}} / M}\) = \(\sqrt{R^{2}}\) = R …… (2)

(ii) The MI of the disc about the transverse symmetry axis is
ICM = \(\frac{1}{2}\)MR<2 … (3)
Radius of gyration : The radius of gyration of the disc for the given rotation axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 117

Question 71.
State and prove the theorem of parallel axis.
Answer:
Theorem of parallel axis : The moment of inertia of a body about an axis is equal to the sum of

  1. its moment of inertia about a parallel axis through its centre of mass and
  2. the product of the mass of the body and the square of the distance between the two axes.

Proof : Let ICM be the moment of inertia (MI) of a body of mass M about an axis through its centre of mass C, and I be its MI about a parallel axis through any point O. Let h be the distance between the two axes.

Consider an infinitesimal mass element dm of the body at a point P. It is at a perpendicular distance CP from the rotation axis through C and a perpendicular distance OP from the parallel axis through O. The MI of the element about the axis through C is CP2dm. Therefore, the MI of the body about the axis through the CM is ICM = \(\int \mathrm{CP}^{2} d m\). Similarly, the MI of the body about the parallel axis through O is I = \(\int \mathrm{OP}^{2} d m\).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 118
∴ I = ICM + Mh2
This proves the theorem of parallel axis.

Question 72.
State and prove the theorem of perpendicular axes about moment of inertia.
Answer:
Theorem of perpendicular axes : The moment of inertia of a plane lamina about an axis perpendicular to its plane is equal to the sum of its moments of inertia about two mutually perpendicular axes in its plane and through the point of intersection of the perpendicular axis and the lamina.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 119
Proof : Let Ox and Oy be two perpendicular axes in the plane of the lamina and Oz, an axis perpendicular to its plane. Consider an infinitesimal mass element dm of the lamina at the point P(Y, y). MI of the lamina about the z-axis, Iz = \(\int \mathrm{OP}^{2} d m\)

The element is at perpendicular distance y and x from the x- and y- axes respectively. Hence, the moments of inertia of the lamina about the x- and y-axes are, respectively,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 120
This proves the theorem of perpendicular axes.

Question 73.
About which axis of rotation is the radius of gyration of a body the least ?
Answer:
The radius of gyration of a body is the least about an axis through the centre of mass (CM) of the body.

From the parallel axis theorem, we know that a given body has the smallest possible moment of inertia about an axis through its CM. The radius of gyration of a body about a given axis is directly proportional to the square root of its moment of inertia about that axis. Hence, the conclusion.
{OR I = ICM + Mh2. ∴ Mk2 = \([/latexM k_{\mathrm{CM}}^{2}] + Mh2.
∴ k2 = [latex]k_{\mathrm{CM}}^{2}\) + h2, which shows that k is minimum, equal to kCM when h = 0.}

Question 74.
State an expression for the moment of inertia of a thin uniform rod about an axis through its centre and perpendicular to its length. Hence deduce the expression for its moment of inertia about an axis through its one end and perpendicular to its length.
OR
State an expression for the moment of inertia of a thin uniform rod about its transverse symmetry axis. Hence, deduce the expression for its moment of inertia about a parallel axis through one end. Also deduce the expressions for the corresponding radii of gyration.
Answer:
(1) MI about a transverse axis through centre : Consider a thin uniform rod AB of mass M and length L, rotating about a transverse axis through its centre C. C is also its centre of mass (CM).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 300

(2) MI about a transverse axis through one end : Let I be its MI about a transverse axis through its end A. By the theorem of parallel axis,
I = ICM + Mh2 … (2)
In this case,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 301
(3) Radii of gyration : The radius of gyration of the rod about its transverse symmetry axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 302
The radius of gyration of the rod about the transverse axis through an end is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 303

Question 75.
State the expression for the MI of a thin spherical shell (i.e., a thin-walled hollow sphere) about its diameter. Hence obtain the expression for its MI about a tangent.
Answer:
Consider a uniform, thin-walled hollow sphere radius R and mass M. An axis along its diameter is an axis of spherical symmetry through its centre of mass. The MI of the thin spherical shell about its diameter is
ICM = \(\frac{2}{3}\)MR2

Let I be its MI about a tangent parallel to the diameter. Here, h = R = distance between the two axes. Then, according to the theorem of parallel axis,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 121

Question 76.
Calculate the moment of inertia by direct integration of a thin uniform rod of mass M and length L about an axis perpendicular to the rod and passing through the ród at L/3, as shown below.
Check your answer with the parallel-axis theorem.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 122
Answer:
Method of direct integration : Consider a thin uniform rod of mass M and length L. The axis of rotation is perpendicular to the rod and passing through the rod at L/3. We consider the origin of coordinates to be at this point and the x-axis to be along the rod,

Since the mass density is constant, the linear mass density is
λ = M/L
An element of the rod has mass dm and length dl = dx.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 123
If the distance of each mass element from the axis is given by the variable x, the moment of inertia of an element about the axis of rotation is dI = x2dm
Since the rod extends from x= – L/3 to x = 2L/3, the MI of the rod about the axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 124
Method of parallel-axis : The MI of the thin rod about a transverse axis through its CM is
ICM = \(\frac{1}{12} M L^{2}\)
The given axis of rotation is at a distance h = \(\frac{L}{2}\) – \(\frac{L}{3}\) = \(\frac{L}{6}\) from the transverse symmetry axis.
Therefore, the MI of the rod about the given axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 125
the same as arrived at by direct integration method.

Question 77.
State an expression for the moment of inertia of a thin ring about its transverse symmetry axis. Hence deduce the expression for its moment of inertia about a tangential axis perpendicular to its plane. Also deduce the expressions for the corresponding radius of gyration.
Answer:
(1) MI about the transverse symmetry axis : Consider a thin ring (or hoop) of radius R and mass M. The axis of rotation through its centre C is perpendicular to its plane. C is also its centre of mass (CM). It is assumed that the radial thickness of the ring is so small as to be completely negligible in comparison to radius R.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 126
The MI of the ring about the transverse symmetry axis is
ICM = MR2 …(1)
Radius of gyration : The radius of gyration of the ring about the transverse symmetry axis is
k = \(\sqrt{I_{\mathrm{CM}} / M}\) = \(\sqrt{R^{2}}\) = R …(2)

(2) MI about a tangent perpendicular to its plane : Let I be its MI about a parallel axis, tangent to the ring. Here, h = R = distance between the two axes.
By the theorem of parallel axis,
I = ICM + Mh2 … (3)
= MR2 + MR2 = 2MR2 …(4)
Radius of gyration : The radius of gyration of the ring about a transverse tangent is
k = \(\sqrt{I / M}\) = \(\sqrt{2 R^{2}}\) = \(\sqrt{2} R\) …(5)

Question 78.
Assuming the expression for the moment of inertia of a ring about its transverse symmetry axis, obtain the expression for its moment of inertia about
(1) a diameter
(2) a tangential axis in its plane. Also deduce the expressions for the corresponding radii of gyration.
Answer:
Let M be the mass of a thin ring of radius R. Let /CM be the moment of inertia (MI) of the ring about its transverse symmetry axis. Then,
ICM = MR … (1)

(1) MI about a diameter : Let x- and y-axes be along two perpendicular diameters of the ring as shown in below figure. Let Ix, Iy and Iz be the moments of inertia of the ring about the x, y and z axes, respectively.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 127
Both Ix and Iy represent the moment of inertia of the ring about its diameter and, by symmetry, the MI of the ring about any diameter is the same.
∴ Ix = Iy ….. (2)
Also, Iz being the MI of the ring about its transverse symmetry axis,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 128

(2) MI about a tangent in its plane: Let I be its MI about an axis in plane of the ring, i.e., parallel to a diameter, and tangent to it. Here, h = R and
ICM = Ix = \(\frac{1}{2}\)MR2.
By the theorem of parallel axis,
= \(\frac{1}{2} M R^{2}\) + MR2 = \(\frac{3}{2} M R^{2}\) … (7)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 129

Question 79.
State an expression for the MI of a thin uniform disc about a transverse axis through its centre. Hence, derive an expression for the MI of the disc about its tangent perpendicular to the plane. Deduce the expressions for the corresponding radii of gyration.
Answer:
(1) MI about the transverse symmetry axis : Consider a thin uniform disc of radius R and mass M. The axis of rotation through its centre C is perpendicular to its plane. C is also its centre of mass (CM).

Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 130

Radius of gyration : The radius of gyration of the disc for the given rotation axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 131

(2) MI about a tangent perpendicular to its plane : Let I be the MI of the disc about a tangent perpendicular to its plane.

According to the theorem of parallel axis,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 132

Question 80.
Assuming the expression for the moment of inertia of a thin uniform disc about a transverse axis through its centre, obtain an expression for its moment of inertia about any diameter. Hence, write the expression for the corresponding radius of gyration.
Answer:
Consider a thin uniform disc of mass M and radius R in the xy plane, as shown in below figure. Let Ix, Iy and Iz be the moments of inertia of the disc about the x, y and z axes respectively. But, Ix = Iy, since each
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 133
represents the moment of inertia (MI) of the disc about its diameter and, by symmetry, the MI of the disc about any diameter is the same.
As Iz is the MI of the disc about the z-axis through its centre and perpendicular to its plane,
Iz = \(\frac{1}{2}\)MR2 … (1)

According to the theorem of perpendicular axes,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 134

Question 81.
Given the moment of inertia of a thin uniform disc about its diameter to be \(\frac{1}{4}\)MR2, where M and R are respectively the mass and radius of the disc, find its moment of inertia about an axis normal to the disc and passing through a point on its edge.
Answer:
Consider a thin uniform disc of mass M and radius R in the xy plane. Let Ix, ly and Iz be the moments of inertia of the disc about the x, y and z axes respectively.
Now, Ix = Iy
since each represents the moment of inertia (MI) of the disc about its diameter and, by symmetry, the MI of the disc about any diameter is the same.
∴ Ix = Iy = \(\frac{1}{4}\)MR2 (Given)
According to the theorem of perpendicular axes,
Iz = Ix + Iy = 2(\(\frac{1}{4}\)MR2) = \(\frac{1}{2}\)MR2
Let I be the MI of the disc about a tangent normal to the disc and passing through a point on its edge (i.e., a tangent perpendicular to its plane). According to the theorem of parallel axis,
I = ICM + Mh2
Here, ICM = Iz = \(\frac{1}{2}\)MR2 and h = R.
∴ I = \(\frac{1}{2}\)MR2 + MR2 = \(\frac{3}{2}\)MR2
which is the required expression.

Question 82.
Assuming the expression for the moment of inertia of a thin uniform disc about its diameter, show that the moment of inertia of the disc about a tangent in its plane is \(\frac{5}{4}\)MR2. Write the expression for the corresponding radius of gyration.
Answer:
Let M be the mass and R be the radius of a thin uniform disc. Let ICM be the moment of inertia (MI) of the disc about a diameter. Then,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 135

Question 83.
State the expressions for the moment of inertia of a solid cylinder of uniform cross section about
(1) an axis through its centre and perpendicular to its length
(2) its own axis of symmetry.
OR
State the expressions for the MI of a solid cylinder about
(1) a transverse symmetry axis
(2) its cylindrical symmetry axis. Also deduce the expressions for the corresponding radii of gyration.
Answer:
Consider a solid cylinder of uniform density, length L, radius R and total mass M.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 136
Notes :

  1. For R « L, a solid cylinder can be approximated as a thin rod, and the expression for the MI about its transverse symmetry axis reduces to the corresponding expression for a thin rod, viz., ML2/12.
  2. The MI of a solid cylinder about its cylindrical symmetry axis is the same as that of a disc about its transverse symmetry axis and having the same mass and radius.

Question 84.
Assuming the expression for the moment of inertia of a uniform solid cylinder about a transverse symmetry axis, obtain the expression for its moment of inertia about a transverse axis through its one end.
Answer:
Let M be the mass, L the length and R the radius of a uniform solid cylinder. Let ICM be the moment of inertia (MI) of the cylinder about a transverse symmetry axis. Then,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 137

Question 85.
State an expression for the moment of inertia of a solid sphere about its diameter. Write the expression for the corresponding radius of gyration.
Answer:
Consider a solid sphere of uniform density, radius R and mass M. An axis along its diameter is an axis of spherical symmetry through its centre of mass.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 138
The MI of the solid sphere about its diameter is
ICM = \(\frac{2}{5}\)MR2
The corresponding radius of gyration is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 139

Question 86.
A uniform solid sphere of mass 15 kg has radius 0.1 m. What is its moment of inertia about a diameter?
Answer:
Moment of inertia of the sphere about a diameter
= \(\frac{2}{5}\)MR2 = \(\frac{2}{5}\) × 15 × (0.1)2 = 6 × 10-2 kg.m2

Question 87.
Assuming the expression for the MI of a uniform solid sphere about its diameter, obtain the expression for its moment of inertia about a tangent.
Answer:
Let M be the mass of a uniform solid sphere of radius R. Let ICM be its MI about any diameter.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 140

Let I be its MI about a parallel axis, tangent to the sphere. Here, h = R = distance between the two axis.
By the theorem of parallel axis, I = ICM + Mh2
= \(\frac{2}{5}\)MR2 + MR2 = \(\frac{7}{5}\)MR2

Question 88.
The moment of inertia of a uniform solid sphere about a diameter is 2 kg m2. What is its moment of inertia about a tangent ?
Answer:
Moment of inertia of a solid sphere about its 2
diameter, ICM = \(\frac{2}{5}\)MR2.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 141

Question 89.
The radius of gyration of a uniform solid sphere of radius R is \(\sqrt{\frac{2}{5}}\)R for rotation about its diameter. Show that its radius of gyration for rotation about a tangential axis of rotation is \(\sqrt{\frac{7}{5}}\)R.
Answer:
Let the mass of the uniform solid sphere of radius R be M. Let ICM and kd be its MI about any diameter and the corresponding radius of gyration, respectively. Then,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 142
Let I and kt be its MI about a parallel tangential axis and the corresponding radius of gyration, respectively. Here, h = R = distance between the two axis.
∴ I = \(M k_{\mathrm{t}}^{2}\)
By the theorem of parallel axis,
I = ICM + Mh2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 143

Question 90.
State the expression for the MI of a thin spherical shell (i.e., a thin-walled hollow sphere) about its diameter. Hence obtain the expression for its MI about a tangent.
Answer:
Consider a uniform, thin-walled hollow sphere radius R and mass M. An axis along its diameter is an axis of spherical symmetry through its centre of mass. The MI of the thin spherical shell about its diameter is
ICM = \(\frac{2}{3} M R^{2}\)

Let I be its MI about a tangent parallel to the diameter. Here, h = R = distance between the two axes. Then, according to the theorem of parallel axis,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 144

Question 91.
Find the ratio of the radius of gyration of a solid sphere about its diameter to the radius of gyration of a hollow sphere about its tangent, given that both the spheres have the same radius.
Answer:
The radius of gyration of a body about a given axis, k = \(\sqrt{I / M}\), where M and I are respectively the mass of the body and its moment of inertia (MI) about the axis.

For a solid sphere rotating about its diameter,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 145

Question 92.
Calculate the moment of inertia by direct integration of a thin uniform rectangular plate of mass M, length l and breadth b about an axis passing through its centre and parallel to its breadth.
Answer:
Consider a thin uniform rectangular plate of mass M, length l and breadth b. The axis of rotation passes through its centre and is parallel to its breadth. We consider the origin of coordinates to be at the centre of the plate and orient the axes as shown in below figure. Since the plate is thin, we can take the mass as distributed entirely in the xy-plane. Then, the surface mass density is constant and equal to
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 146

A rectangular element of the plate, shown shaded, has mass dm, length b and breadth dy.
∴ dm = σdA = σ(b dy)

If the distance of each element from the rotation axis is given by the variable y, the moment of inertia of :
an element about the axis of rotation is
dIx = y2dm
Since the rod extends from y = -1/2 to y = 1/2, the MI of the thin plate about the axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 147

Notes:

(1) The MI of a thin rectangular plate about an axis passing through its centre and parallel to its length (i.e., about the y-axis) is Iy = \(\frac{1}{12}\)Mb2. Then, by the theorem of perpendicular axes, the MI of a thin plate about its transverse symmetry axis (i.e., about the z-axis) is Iz = Ix + Iy = \(\frac{1}{12} M\left(l^{2}+b^{2}\right)\)

(2) Suppose, for a rectangular bar of sides l, b and w, we take the origin of coordinates at the centre of mass of the bar and the x, y and z axes parallel to the respective sides. Then, Ix = \(\frac{1}{12}\)M(b2 + w2), Iy = \(\frac{1}{12}\)M(w2 + l2) and Iz = \(\frac{1}{2} M\left(l^{2}+b^{2}\right)\)

Question 93.
State the MI of a thin rectangular plate-of mass M, length l and breadth b- about an axis passing through its centre and parallel to its length. Hence find its MI about a parallel axis along one edge.
Answer:
Consider a thin rectangular plate of mass M, length l and breadth b. The MI of the plate about an axis passing through its centre and parallel to its edge of length l is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 148
For a parallel axis along its one edge, h = \(\frac{1}{2} b\).
Therefore, by the theorem of parallel axis, the MI about this axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 149

Question 94.
State the MI of a thin rectangular plate-of mass M, length l and breadth b about its transverse axis passing through its centre. Hence find its MI about a parallel axis through the midpoint of edge of length b.
Answer:
Consider a thin rectangular plate of mass M, length l and breadth b. The MI of the plate about its transverse axis passing through its centre is
ICM = M(l2 + b2)
For a parallel axis through the midpoint of its breadth, h = \(\frac{1}{2} l\). Therefore, by the theorem of parallel axis, the MI about this axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 150

Question 95.
A uniform solid right circular cone of base radius R has mass M. Prove that the moment of inertia of the cone about its central symmetry axis is \(\frac{3}{10} M R^{2}\).
Answer:
Consider a uniform solid right circular cone of mass M, base radius R and height h. The axis of rotation passes through its centre and the vertex, Its constant mass density is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 151
We consider an elemental disc of mass dm, radius r and thickness dz. If the distance of each mass element from the axis is given by the variable z,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 152

Question 96.
Solve the following :

Question 1.
Calculate the moment of inertia of a ring of mass 500 g and radius 0.5 m about an axis of rotation passing through
(i) its diameter
(ii) a tangent perpendicular to its plane.
Solution :
Data : M = 500 g 0.5 kg, R = 0.5 m

(i) The moment of inertia of the ring about its
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 153

(ii) The moment of inertia of the ring about a tangent perpendicular to its plane
= 2MR2 = 2 × 0.5 × (0.5)2 = 0.25 kg.m2

Question 2.
A thin uniform rod 1 m long has mass 1 kg. Find its moment of inertia and radius of gyration for rotation about a transverse axis through a point midway between its centre and one end.
Solution :
Data : M = 1 kg, L = 1 m
Let ICM and I be the moments of inertia of the rod about a transverse axis through its centre, and a parallel axis midway between its centre and one end.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 154

Question 3.
The moment of inertia of a disc about an axis through its centre and perpendicular to its plane is 10 kg.m2. Find its MI about a diameter.
Solution :
Data : Iz = 10 kg.m2
If the disc lies in the xy plane with its centre at the origin then, according to the theorem of perpendicular axes,
Ix + Iy = Iz
Since, Ix = Iy, 2Ix = Iz
∴ Its MI about a diameter,
Ix = \(\frac{I_{z}}{2}\) = \(\frac{10}{2}\) = 5 kg.m2

Question 4.
A solid cylinder of uniform density and radius 2 cm has a mass of 50 g. If its length is 12 cm, calculate its moment of inertia about an axis passing through its centre and perpendicular to its length.
Solution :
Data : M = 50 g, R = 2 cm, L = 12 cm
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 155

Question 5.
A compound object is formed of a thin rod and a disc attached at the end of the rod. The rod is 0.5 m long and has mass 2 kg. The disc has mass of 1 kg and its radius is 20 cm. Find the moment of inertia of the compound object about an axis passing through the free end of the rod and perpendicular to its length.
Solution :
Data : L = 0.5 m, R = 0.2 m, Mrod = 2 kg, Mdisk = 1 kg About a transverse axis through CM,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 156

Question 6.
The radius of gyration of a body about an axis at 6 cm from its centre of mass is 10 cm. Find its radius of gyration about a parallel axis through its centre of mass.
Solution :
Let O be a point at 6 cm from the centre of mass of the body.
Let I = MI about an axis through O,
k = radius of gyration about the axis through O,
ICM = MI about a parallel axis through the centre of mass of the body,
kCM = radius of gyration about a parallel axis through the centre of mass,
M = mass of the body,
h = distance between the two axes.
Data : h = 6 cm, k = 10 cm
By the theorem of parallel axis,
I = ICM + Mh2
Also, I = Mk2 and ICM = \(M k_{\mathrm{CM}}^{2}\)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 157
The radius of gyration about a parallel axis through its centre of mass is 8 cm.

Question 7.
The radius of gyration of a disc about its transverse symmetry axis is 2 cm. Determine its radius of gyration about a diameter.
Solution :
Data : kCM = 2 cm
Let M and R be the mass and radius of the disc. Let ICM and kCM be the MI and radius of gyration of the disc about its transverse symmetry axis. Let I and k be the MI and radius of gyration of the disc about its diameter. Then
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 158

Question 8.
Calculate the MI and rotational kinetic energy of a thin uniform rod of mass 10 g and length 60 cm when it rotates about a transverse axis through its centre at 90 rpm.
Solution :
Data : M = 10 g = 10-2 kg, L = 60 cm = 0.6 m,
f = 90 rpm = 90/60 Hz = 1.5 Hz
The MI of the rod about a transverse axis through its centre is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 159
Angular speed, ω = 2πf = 2 × 3.142 × 1.5 = 9.426 rad/s
Rotational KE = \(\frac{1}{2}\)Iω2 = \(\frac{1}{2}\left(3 \times 10^{-4}\right)(9.426)^{2}\)
= 0.01333 J

Question 9.
A thin rod of uniform cross section is made up of two sections made of wood and steel. The wooden section has length 50 cm and mass 0.6 kg. The steel section has length 30 cm and mass 3 kg. Find the moment of inertia of the rod about a transverse axis passing through the junction of the two sections.
Solution:
Data : L1 =0.5m, M1 =0.6 kg, L2 = 0.3m,
The moment of inertia of a thin rod about a transverse axis through its end is \(\frac{M L^{2}}{3}\).
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 160

Question 10.
The mass and the radius of the Moon are, respectively, about \(\frac{1}{81}\) time and about \(\frac{1}{3.7}\) time those of the Earth. Given that the rotational period of the Moon is 27.3 days, compare the rotational kinetic energy of the Earth with that of the Moon.
Solution :
Data : MM = \(\frac{1}{81}\)ME, RM = \(\frac{1}{3.7}\)RE, TM = 27.3 days, TE = 1 day

Let IE and IM be the moments of inertia of the Earth and the Moon about their respective axes of rotation, and ωE and ωM be their respective rotational angular speeds. Assuming the Earth and the Moon to be solid spheres of uniform densities,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 161

Question 11.
A solid sphere of radius R, rotating with an angular velocity ω about its diameter, suddenly stops rotating and 75% of its KE is converted into heat. If c is the specific heat capacity of the material in SI units, show that the temperature of 3R2CO2
the sphere rises by \(\frac{3 R^{2} \omega^{2}}{20 c}\).
Answer:
The MI of a solid sphere about its diameters, I = \(\frac{2}{5}\)MR2
where M is its mass.
The rotational KE of the sphere,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 162
If ∆θ is the rise in temperature,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 163

Question 97.
Define the angular momentum of a particle.
Answer:
Definition : The angular momentum of a particle is defined as the moment of the linear momentum of the particle. If a particle of mass m has linear momentum \(\vec{p}(=m \vec{v})\)), then the angular momentum of this particle with respect to a point O is a vector quantity defined as \(\vec{l}=\vec{r} \times \vec{p}=m(\vec{r} \times \vec{v})\)), where \(\vec{r}\) is the position vector of the particle with respect to O.

It is the angular analogue of linear momentum.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 164

[Note : As the particle moves relative to O in the direction of its momentum \(\vec{p}(=m \vec{v})\), position vector \(\vec{r}\) rotates around O. However, to have angular momentum about O, the particle does not itself have to rotate around O.]

Question 98.
State the dimensions and SI unit of angular momentum.
Answer:

  1. Dimensions : [Angular momentum] = [M1L2T-1]
  2. SI unit: The kilogram.metre2/second (kg.m2/s).

Question 99.
Express the kinetic energy of a rotating body in terms of its angular momentum.
Answer:
The kinetic energy of a body of moment of inertia I and rotating with a constant angular velocity ω is
E = \(\frac{1}{2} I \omega^{2}\)
The angular momentum of the body, L = Iω.
∴E = \(\frac{1}{2}(I \omega) \omega=\frac{1}{2} L \omega\)
This is the required relation.

Question 100.
Why do grinding wheels have large mass and moderate diameter?
Answer:
A grinding wheel, used for abrasive machining operations (e.g., sharpening), is typically in the form of a heavy disc of moderate diameter. A grinding machine needs to have a high frequency of revolution but the machining operations exert braking torques on its wheel.

Angular momentum is directly proportional to mass. Hence, heavier the wheel, the greater is its angular momentum and lesser is the decelerating effect of the braking torques. Also, angular acceleration is inversely proportional to the moment of inertia. Since the wheel is made heavy, its diameter is kept moderate so that a large angular acceleration and high angular velocity can be achieved with a motor of given power.

Question 101.
Solve the following :

Question 1.
The angular momentum of a body changes by 80 kg.m2/s when its angular velocity changes from 20 rad/s to 40 rad/s. Find the change in its kinetic energy of rotation.
Solution :
Data : ω1 = 20 rad/s, ω2 = 40 rad/s
If I is the MI of the body, its initial angular momentum is Iω1, and final angular momentum is Iω2.
Change in angular momentum
= Iω2 – Iω12 – ω1)
∴ 80 = I(40 – 20)
∴ I = 4 kg.m2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 165

Question 2.
A wheel of moment of inertia 1 kg.m2 is rotating at a speed of 40 rad/s. Due to the friction on the axis, the wheel comes to rest in 10 minutes. Calculate the angular momentum of the wheel, two minutes before it comes to rest.
Solution :
Data : I = 1 kg.m2, ω1 = 40 rad/s, ω2 = 0 at
t = 10 minutes = 60 × 10 s = 600 s,
t’ = 8 minutes = 60 × 8 s = 480 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 166
This is the required angular momentum of the wheel.

Question 3.
A flywheel rotating about an axis through its centre and perpendicular to its plane loses 100 J of energy on slowing down from 60 rpm to 30 rpm. Find its moment of inertia about the given axis and the change in its angular momentum.
Solution :
Data : f1 = 60 rpm = 60/60 rot/s = 1 rot/s, f2 = 30 rpm = 30/60 rot/s = \(\frac{1}{2}\) rot/s, ∆E = – 100 J
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 167
This gives the MI of the flywheel about the given axis.

(ii) Angular momentum, L = Iω = I(2πf) 2πIf
The change in angular momentum, ∆L
= L2 – L1 = 2πI(f2 – f1)
= 2 × 3.142 × 6.753\(\left(\frac{1}{2}-1\right)\)
= -3.142 × 6.753= -21.22 kg.m2/s

Question 102.
A torque of 4 N-m acting on a body of mass 1 kg produces an angular acceleration of 2 rad/s2. What is the moment of inertia of the body?
Answer:
The moment of inertia of the body.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 168

Question 103.
Two identical rings are to be rotated about different axes of rotation as shown by applying torques so as to produce the same angular acceleration in both. How is it possible ?
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 169
Answer:
The MI of ring 1 about a transverse tangent is I1 = 2MR2
The MI of ring 2 about its diameter is
I2 = \(\frac{1}{2}\)MR2
Since, torque T = \(\tau=I \alpha\), to produce the same angular acceleration in both,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 170
∴ It will be possible to produce the same angular acceleration in both the rings only if \(\tau_{1}=4 \tau_{2}\).

Question 104.
Two wheels have the same mass. First wheel is in the form of a solid disc of radius R while the second is a disc with inner radius r and outer radius R. Both are rotating with same angular velocity ω0 about transverse axes through their centres. If the first wheel comes to rest in time t1 while the second comes to rest in time t2, are t1 and t2 different? Why?
Answer:
The moments of inertia of the two wheels about transverse axes through their centres are
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 171

Question 105.
Solve the following :

Question 1.
A torque of magnitude 400 N-m, acting on a body of mass 40 kg, produces an angular acceleration of 20 rad/s2. Calculate the moment of inertia and radius of gyration of the body.
Solution :
Data : T = 400 N.m, M = 40 kg, α = 20 rad/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 172

Question 2.
A body starts rotating from rest. Due to a couple of 20 N.m, it completes 60 revolutions in one minute. Find the moment of inertia of the body.
Solution :
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 173

Question 3.
A wheel of moment of inertia 2 kg-m2 rotates at 50 rpm about its transverse axis. Find the torque that can stop the wheel in one minute.
Solution :
Data : I = 2 kg.m2, f0 = 50 rpm = \(\frac{50}{60}\) = \(\frac{5}{6}\) rev/s, t = 60 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 174

Question 4.
A circular disc of moment of inertia 10 kg.m2 is rotated about its transverse symmetry axis at a constant frequency of 60 rpm by an electric motor of power 31.42 watts. When the motor is switched off, how many rotations does it complete before coming to rest?
Solution :
Data : I = 10 kg.m2, P = 31.42 watts,
f = 60 rpm = 60/60 Hz = 1 Hz
In rotational motion,
power = torque × angular velocity
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 175
This torque provided by the motor overcomes the torque of the frictional forces and maintains a constant frequency of rotation.

When the motor is switched off, the disc slows down due to the retarding torque of the frictional forces.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 176

Question 5.
A flywheel of mass 4 kg and radius 10 cm, rotating with a uniform angular velocity of 5 rad/s, is subjected to a torque of 0.01 N.m for 10 seconds.
If the torque increases the speed of rotation, find
(i) the final angular velocity of the flywheel
(ii) the change in its angular velocity
(iii) the change in its angular momentum
(iv) the change in its kinetic energy.
Solution :
Data : M = 4 kg, R = 10 cm = 0.1 m, ω1 = 5 rad/s, \(\tau\) = 0.01 N.m, t = 10 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 177

(i) The final angular velocity of the flywheel,
ω2 = ω1 + αt
= 5 + 0.5 × 10 = 10 rad/s

(ii) The change in its angular velocity
= ω2 – ω1 = 5 rad/s

(iii) The change in its angular momentum
= Iω2 – Iω1 = I (ω2 – ω1)
= 0.02 × 5 = 0.1 kg.m2/s

(iv) The change in its kinetic energy
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 178

Question 6.
A torque of 20 N.m sets a stationary circular disc into rotation about a transverse axis through its centre and acts for 2π seconds. If the disc has a mass 10 kg and radius 0.2 m, what is its frequency of rotation after 2π seconds ?
Solution :
Data : \(\tau\) = 20 N.m, t = 2π s, M = 10 kg, R = 0.1 m Let f1 and f2 be the initial and final frequencies of rotation of the disc, and ω1 and ω2 be its initial and final angular speeds. Since the disc was initially stationary, f1 = ω1, = 0 and ω2 = 2πf2.
The MI of the disc about the given axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 179
Now, ω2 = ω1 + αt = 0 + α t
∴ 2πf2 = αt
∴ f2 = \(\frac{\alpha t}{2 \pi}\) = \(\frac{100(2 \pi)}{2 \pi}\) = 100 Hz

Question 7.
A rope is wound around a hollow cylinder of mass 3 kg and radius 40 cm. If the rope is pulled downwards with a force of 30 N, find
(i) the angular acceleration of the cylinder
(ii) the linear acceleration of the rope.
Solution :
Data : M = 3 kg, R = 0.4 m, F = 30 N
(i) The MI of a hollow cylinder about its cylinder axis, I = MR2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 180

(ii) The linear acceleration of the rope = the tangential acceleration at = αR = 25 × 0.4 = 10 m/s2

Question 106.
State and prove the principle (or law) of conservation of angular momentum.
Answer:
Principle (or law) of conservation of angular momentum : The angular momentum of a body is conserved if the resultant external torque on the body is zero.
Proof : Consider a moving particle of mass m whose position vector with respect to the origin at any instant is \(\vec{r}\).
Then, at this instant, the linear velocity of this particle is \(\vec{v}=\frac{\overrightarrow{d r}}{d t}\), its linear momentum is \(\vec{p}=m \vec{v}\) and its angular momentum about an axis through the origin is \(\vec{l}=\vec{r} \times \vec{p}\).

Suppose its angular momentum \(\vec{l}\) changes with time due to a torque \(\vec{\tau}\) exerted on the particle.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 181
∴ \(\vec{l}\) = constant, i.e., \(\vec{l}\) is conserved. This proves the principle (or law) of conservation of angular momentum.

Alternate Proof : Consider a rigid body rotating with angular acceleration \(\vec{\alpha}\) about the axis of rotation. If I is the moment of inertia of the body about the axis of rotation, \(\vec{\omega}\) the angular velocity of the body at time t and \(\vec{L}\) the corresponding angular momentum of the body, then
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 182
∴ \(\vec{L}\) = constant, i.e., \(\vec{L}\) is conserved. This proves the principle (or law) of conservation of angular momentum.

Question 107.
What happens when a ballet dancer stretches her arms while taking turns?
Answer:
When a ballet dancer stretches her arms while pirouetting, her moment of inertia increases, and consequently her angular speed decreases to conserve angular momentum.

Question 108.
If the Earth suddenly shrinks so as to reduce its volume, mass remaining unchanged, what will be the effect on the duration of the day?
Answer:
If the Earth suddenly shrinks, mass remaining constant, the moment of inertia of the Earth will decrease, and consequently the angular velocity of rotation ω about its axis will increase. Since period \(T \propto \frac{1}{\omega}\), the duration of the day T will decrease.

Question 109.
Two discs of moments of inertia I1 and I2 about their transverse symmetry axes, respectively rotating with angular velocities to ω1 and ω2, are brought into contact with their rotation axes coincident. Find the angular velocity of the composite disc.
Answer:
We assume that the initial angular momenta (\(\vec{L}_{1}\) and \(\vec{L}_{2}\)) of the discs are either in the same direction or in opposite directions. Then,
the total initial angular momentum = \(\vec{L}_{1}+\vec{L}_{2}=I_{1} \overrightarrow{\omega_{1}}+I_{2} \overrightarrow{\omega_{2}}\)

After they are coupled, the total moment of inertia, i.e., the moment of inertia of the composite disc is I = I1 + I2 and the common angular velocity is \(\vec{\omega}\). Assuming conservation of angular momentum,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 183

Question 110.
A boy standing at the centre of a turntable with his arms outstretched is set into rotation with angular speed ω rev/min. When the boy folds his arms back, his moment of inertia reduces to \(\frac{2}{5}\)th its initial value. Find the ratio of his final kinetic energy of rotation to his initial kinetic energy.
Answer:
Data : I2 = \(\frac{2}{5}\)I1
L = Iω
Assuming the angular momentum \(\vec{L}\) is conserved, in magnitude,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 184
This gives the required ratio.

Question 111.
Name the quantity that is conserved when

  1. \(\vec{F}_{\text {external }}\) is zero
  2. \(\vec{\tau}_{\text {external }}\) is zero.

Answer:

  1. Total linear momentum is conserved when \(\vec{F}_{\text {external }}\) is Zer0
  2. Angular momentum is conserved when \(\vec{\tau}_{\text {external }}\) is zero.

Question 112.
What is the rotational analogue of the equation \(\vec{F}_{\text {external }}\) = \(\frac{d \vec{p}}{d t}\)?
Answer:
\(\vec{F}_{\text {external }}\) = \(\frac{d \vec{L}}{d t}\)

Question 113.
Fly wheels used in automobiles and steam engines producing rotational motion have discs with a large moment of inertia. Explain why?
Answer:
A flywheel is used as

(i) a mechanical energy storage, the energy being stored in the form of rotational kinetic energy

(ii) a direction and speed stabilizer. A flywheel rotor is typically in the form
of a disc. Rotational kinetic energy, \(E_{\mathrm{rot}}=\frac{1}{2} I \omega^{2}\), where I is the moment of inertia and ω is the angular speed. That is, Erot ∝ I. Therefore, higher the moment of inertia, the higher is the rotational kinetic energy that can be stored or recovered.

Also, angular momentum, \(\vec{L}=I \vec{\omega}\), i.e., \(|\vec{L}| \propto I\). A torque aligned with the symmetry axis of a flywheel can change its angular velocity and thereby its angular momentum. A flywheel with a large angular momentum will require a greater torque to change its angular velocity. Thus, a flywheel can be used to stabilize direction and magnitude of its angular velocity by undesired torques.

Question 114.
Solve the following :

Question 1.
A uniform horizontal disc is freely rotating about a vertical axis passing through its centre at the rate of 180 rpm. A blob of wax of mass 1.9 g falls on it and sticks to it at 25 cm from the axis. If the frequency of rotation is reduced by 60 rpm, calculate the moment of inertia of the disc.
Solution :
Data : f1 = 180 rpm = 180/60 rot/s = 3 rot/s, f2 = (180 – 60) rpm = 120/60 rot/s = 2 rot/s, m = 1.9 g = 1.9 × 10-3 kg, r = 25 cm = 0.25 m
Let I1 be the MI of the disc. Let I2 be the MI of the disc and the blob.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 185

Question 2.
A horizontal disc is rotating about a transverse axis through its centre at 100 rpm. A 20 gram blob of wax falls on the disc and sticks to it at 5 cm from its axis. The moment of inertia of the disc about its axis passing through its centre is 2 × 10-4 kg.m2. Calculate the new frequency of rotation of the disc.
Solution :
Data : f1 = 100 rpm, m = 20 g = 20 × 10-3 kg, r = 5 cm = 5 × 10-2 m, I1 = Idisc = 2 × 10-4 kg.m2
The MI of the disc and blob of wax is
I2 = I1 + mr2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 186
This is the new frequency of rotation.

Question 3.
A ballet dancer spins about a vertical axis at 2.5 π rad/s with his arms outstretched. With the arms folded, the MI about the same axis of rotation changes by 25%. Calculate the new speed of rotation in rpm.
Solution:
Let I1, ω1, and f1, be the moment of inertia, angular velocity and frequency of rotation of the ballet dancer with arms outstretched, and I2, ω2 and f2 be the corresponding quantities with arms folded.
Data : ω1 = 2.5 π rad /s
Since moment of inertia with arms folded is less than that with arms outstretched,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 187

Question 4.
Two wheels, each of moment of inertia 4 kg.m2, rotate side by side at the rate of 120 rpm and 240 rpm in opposite directions. If both the wheels are coupled by a weightless shaft so that they now rotate with a common angular speed, find this new rate of rotation.
Solution :
Data : I = 4 kg.m2, f1 = 120 rpm, f2 240 rpm
Initially, the angular velocities of the two wheels \(\overrightarrow{\omega_{1}}\), and \(\overrightarrow{\omega_{2}}\)) and, therefore, their angular momenta (\(\vec{L}_{1}\) and \(\vec{L}_{2}\)) are in opposite directions.

The magnitude of the total initial angular momentum
= – L1 + L2 = -Iω1 + Iω2 (∵ I1 = I2 = I)
= 2πl(f2 – f1) … (1)

After coupling onto the same shaft, the total moment of inertia is 21. Let ω = 2πf be the common angular speed.

The magnitude of the total final angular momentum = 2I.ω = 4πl.f … (2)

From Eqs. (1) and (2), by the principle of conservation of angular momentum,
4πf = 2πl(f2 – f1)
∴ f = \(\frac{f_{2}-f_{1}}{2}\) = \(\frac{240-120}{2}\) = 60 rpm
This gives their new rate of rotation.

Question 5.
A homogeneous (uniform) rod XY of length L and mass M is pivoted at the centre C such that it can rotate freely in a vertical plane. Initially, the rod is horizontal. A blob of wax of the same mass M as that of the rod falls vertically with speed V and sticks to the rod midway between points C and Y. As a result, the rod rotates with angular speed ω. What will be the angular speed in terms of V and L?
Solution :
The initial angular momentum of the rod is zero.
The initial angular momentum of the falling blob of wax about the point C is (in magnitude)
= mass × speed × perpendicular distance between its direction of motion and point C
= MV.\(\frac{L}{4}\)
The total initial angular momentum of the rod and blob of wax = \(\frac{M V L}{4}\) … (1)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 188

After the blob of wax sticks to the rod, and the system rotates with an angular speed ω about the horizontal axis through point C perpendicular to the plane of the figure, the total final angular momentum of the system about this axis
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 189
This gives the required angular speed.

Question 6.
A satellite moves around the Earth in an elliptical orbit such that at perigee (closest approach) it is two Earth radii above the Earth’s surface. At apogee (farthest position), it travels with one-fourth the speed it has at perigee. In terms of the Earth’s radius R, what is the maximum distance of the satellite from the Earth’s surface ?
Solution:
Let rp and ra be the distances of the satellite from the centre of the Earth at perigee and apogee, respectively. Let vp and va be its linear (tangential) velocities at perigee and apogee.
Data : rp = 2R + R = 3R, va = \(\frac{1}{4}\)vp

Let Lp and La be the angular momenta of the satellite about the Earth’s centre. Because the gravitational force (\(\vec{F}\)) on the satellite due to the Earth is always radially towards the centre of the Earth, its direction is opposite to that of the position vector (\(\vec{r}\)) of the satellite relative to the centre of the Earth, so that the torque \(\vec{\tau}=\vec{r} \times \vec{F}=0\). Hence, the angular momentum of the satellite about the Earth’s centre is constant in time.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 190
At apogee, the distance of the satellite from the Earth’s surface is 12R – R = 11R.

Question 7.
A torque of 100 N.m is applied to a body capable of rotating about a given axis. If the body starts from rest and acquires kinetic energy of 10000 J in 10 seconds, find
(i) its moment of inertia about the given axis
(ii) its angular momentum at the end of 10 seconds.
Solution :
Data : \(\tau\) = 100 N.m, ωi = 0, Ei = 0, Ef = 104J, t = 10 s
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 191
Since the body starts from rest, its initial angular momentum, Li = 0.
The final angular momentum,
Lf = τ∆t = (100)(10) = 103 kg.m2/s
The final rotational kinetic energy, Ef = \(\frac{1}{2} L_{\mathrm{f}} \omega_{\mathrm{f}}\)
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 192

Question 8.
Two identical metal beads, each of mass M but negligible width, can slide along a thin smooth uniform horizontal rod of mass M and length L. The rod is capable of rotating about a vertical axis passing through its centre. Initially, the beads are almost touching the axis of rotation and the rod is rotating at speed of 14 rad/s. Find the angular speed of the system when the beads have moved up to the ends of the rod. (Assume that no external torque acts on the system.)
Solution :
Data : ω1 = 14 rad/s
The MI of the rod about a transverse axis through its CM,
Irod = \(\frac{M L^{2}}{12}\)
Since the beads are almost particle-like, and initially touching the rotation axis, their MI about the vertical axis is taken to be zero.
When the beads move upto the ends of the rod, r = L/2, their MI about the vertical axis is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 193

Question 115.
Discuss how pure rolling (i.e., rolling without slipping) on a plane surface is a combined translational and rotational motion.
Answer:
Rolling motion (without slipping) is an important case of combined translation and rotation. Consider a circularly symmetric rigid body, like a wheel or a disc, rolling on a plane surface with friction along a straight path.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 194

The centre of mass of the wheel is at its geometric centre O. For purely translational motion (the wheel sliding smoothly along the surface without rotating at all), every point on the wheel has the same linear velocity \(\vec{v}_{\mathrm{CM}}\) = \(\vec{v}_{\mathrm{O}}\) as the centre O. For purely rotational motion (as if the horizontal rotation axis through O were stationary), every point on the wheel rotates about the axis with angular velocity \(\vec{\omega}\); in this case, every point on the rim has the same linear speed ωR.

We view the combined motion in the inertial frame of reference in which the surface is at rest. In this frame, since there is no slipping, the point of contact of the wheel with the surface is instantaneously stationary, vA = 0, so that the wheel is turning about an instantaneous axis through the point of contact A. The instantaneous linear speed of point C (at the top) is VC = ω(2R) – faster than any other point of the wheel.

Question 116.
Deduce an expression for the kinetic energy of a body rolling on a plane surface without slipping.
OR
Obtain an expression for the total kinetic energy of a rolling body in the form \(\frac{1}{2} M v^{2}\left[1+\frac{k^{2}}{R^{2}}\right]\)
OR
Derive an expression for the kinetic energy when a rigid body is rolling on a horizontal surface without slipping. Hence, find the kinetic energy of a solid sphere.
Answer:
Consider a symmetric rigid body, like a sphere or a wheel or a disc, rolling on a plane surface with friction along a straight path. Its centre of mass (CM) moves in a straight line and, if the frictional force on the body is large enough, the body rolls without slipping. Thus, the rolling motion of the body can be treated as translation of the CM and rotation about an axis through the CM. Hence, the kinetic energy of a rolling body is
E = Etran + Erot ….. (1)
where Etran and Erot are the kinetic energies associated with translation of the CM and rotation about an axis through the CM, respectively.

Let M and R be the mass and radius of the body. Let ω, k and I be the angular speed, radius of gyration and moment of inertia for rotation about an axis through its centre, and v be the translational speed of the centre of mass.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 195
Equation (4) or (5) or (6) gives the required expression.
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 196

Question 117.
A uniform solid sphere of mass 10 kg rolls on a horizontal surface. If its linear speed is 2 m/s, what is its total kinetic energy?
Answer:
Total kinetic energy of the sphere
= \(\frac{7}{10}\)Mv2 = \(\frac{7}{10}\) × 10 × (2)2 = 28 J

Question 118.
A disc of mass 4 kg rolls on a horizontal surface. If its linear speed is 3 m/s, what is its total kinetic energy?
Answer:
Total kinetic energy of the disc
= \(\frac{3}{4}\)Mv2 = \(\frac{3}{4}\) × 4 × (3)2 = 27 J

Question 119.
Assuming the expression for the kinetic energy of a body rolling on a plane surface without slipping, deduce the expression for the total kinetic energy of rolling motion for
(i) a ring
(ii) a disk
(iii) a hollow sphere. Also, find the ratio of rotational kinetic energy to total kinetic energy for each body.
Answer:
For a body of mass M and radius of gyration k, rolling on a plane surface without slipping with speed v, its total KE and rotational KE are respectively
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 197
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 198

[Note : The moment of inertia of all the round bodies above can be expressed as I = βMR2, where β is a pure number less than or equal to 1. β is equal to 1 for a ring or a thin-walled hollow cylinder, \(\frac{1}{2}\) for a disc or solid cylinder, \(\frac{2}{3}\) for a hollow sphere and \(\frac{2}{5}\) for a solid sphere.
All uniform rings or hollow cylinders of the same mass and moving with the same speed have the same total kinetic energy, even if their radii are different. All discs or solid cylinders of the same mass and moving with the same speed have the same total kinetic energy; all solid spheres of the same mass and moving with the same speed have the same total kinetic energy. Also, for the same mass and speed, bodies with small c have less total kinetic energy.

Question 120.
State the expression for the speed of a circularly symmetric body rolling without slipping down an inclined plane. Hence deduce the expressions for the speed of
(i) a ring
(ii) a solid cylinder
(iii) a hollow sphere
(iv) a solid sphere, having the same radii.
Answer:
Consider a circularly symmetric body, of mass M and radius of gyration k, starting from rest on an inclined plane and rolling down without slipping. Its speed after rolling down through a height h is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 199

[Note : If the inclined plane is ‘smooth’, i.e., there is no friction, the bodies will slide along the plane without any rotation. They will then have only translational kinetic energy, undergo equal acceleration and all three would arrive at the bottom at the same time with the same speed.]

Question 121.
State with reason if the statement is true or false : A wheel moving down a perfectly frictionless inclined plane will undergo slipping (not rolling) motion.
Answer:
The statement is true.
Explanation : Rolling on a surface (horizontal or inclined) without slipping may be viewed as pure rotation about an horizontal axis through the point of contact, when viewed in the inertial frame of reference in which the surface is at rest. The point of contact of the wheel with the surface will be instantaneously at rest, resulting in a rolling motion, provided the wheel is able to ‘grip’ the surface, i.e., friction is necessary. With little or no friction, the wheel will slip at the point of contact. On an inclined plane, this will result in pure translation along the plane. On a horizontal surface, the wheel will simply rotate about its axis through the centre without translation.

Question 122.
A ring and a disc roll down an inclined plane through the same height. Compare their speeds at the bottom of the plane.
Answer:
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 200

Question 123.
State the expression for the acceleration of a circularly symmetric rigid body rolling without slipping down an inclined plane. Hence, deduce the acceleration of
(i) a ring
(ii) a solid cylinder
(iii) a hollow cylinder
(iv) a solid sphere, rolling without slipping down an inclined plane.
Answer:
A circularly symmetric rigid body, of radius R and radius of gyration k, on rolling down an inclined plane of inclination θ has an acceleration
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 201
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 202

Question 124.
A spherical shell rolls down a plane inclined at 30° to the horizontal. What is its acceleration ?
Answer:
The acceleration of the spherical shell,
a = \(\frac{3}{5} g \sin \theta\) = 0.6g sin 30° = 0.6g × \(\frac{1}{2}\) = 0.3g m

Question 125.
A spherical shell and a uniform solid sphere roll down the same inclined plane. Compare their accelerations.
Answer:
The ratio of the accelerations, in the usual notation,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 203

Question 126.
A solid sphere, starting from rest, rolls down two different inclined planes from the same height but with different angles of inclination θ1 > θ2. On which plane will the sphere take longer time to roll down?
Answer:
Let L1 and L2 be the distances rolled down by the sphere along the corresponding inclines from the same height h.
∴ L1 sin θ1 = L2 sin θ2 = h
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 204
The sphere will take longer time to roll down from the same height on the plane with smaller inclination.

Question 127.
Two circular discs A and B, having the same mass, have four identical small circular discs placed on them, as shown in the diagram. They are simultaneously released from rest at the top of an inclined plane. If the discs roll down without slipping, which disc will reach the bottom first?
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 205
Answer:
The disc A has the smaller discs closer to the centre than disc B. Hence, the moment of inertia of disc A (IA) is less than that of disc B (IB).

[Suppose the larger discs have radius R, the smaller discs have mass m and radius r, and the centre of each smaller disc on disc A is at a distance x from the centre. Then, x = \(\sqrt{2} r\)r and, it can be shown that, IB – IA = 4m[R2 – (x – r)2] > 0.]

Each composite disc is equivalent to a disc of the same radius R and mass M’ = M + 4m, where m is the mass of each smaller disc, but of different thicknesses.

Suppose, starting from rest, the composite discs roll down the same distance L along a plane inclined at an angle θ, their respective accelerations will be
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 206
i.e., the disc A will reach the bottom first.

Question 128.
Solve the following :

Question 1.
A lawn roller of mass 80 kg, radius 0.3 m and moment of inertia 3.6 kg.m2, is drawn along a level surface at a constant speed of 1.8 m/s. Find
(i) the translational kinetic energy
(ii) the rotational kinetic energy
(iii) the total kinetic energy of the roller.
Answer:
Data : M = 80 kg, R = 0.3 m, I = 3.6 kg.m2, v = 1.8 m/s
(i) The translational kinetic energy of the centre of mass of the roller,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 207

Question 2.
A solid sphere of mass 1 kg rolls on a table with linear speed 2 m/s, find its total kinetic energy.
Solution :
Data : M = 1 kg, v = 2 m/s
The total kinetic energy of a rolling body,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 208

Question 3.
A ring and a disc having the same mass roll on a horizontal surface without slipping with the same linear velocity. If the total KE of the ring is 8 J, what is the total KE of the disc?
Solution :
Data : Mring = Mdisc = M, vring = vdisc = v, Ering = 8J
The total kinetic energies of rolling without slipping on a horizontal surface,
Ering = Mv2 and Edisc = \(\frac{3}{4} M v^{2}\)
since they have the same mass and linear velocity.
∴ Edisc = \(\frac{3}{4}\)Ering = \(\frac{3}{4}\) × 8 = 6J

Question 4.
A solid cylinder, of mass 2 kg and radius 0.1 m, rolls down an inclined plane of height 3 m. Calculate its rotational energy when it reaches the foot of the plane.
Solution :
Data : M = 2 kg, R = 0.1 m, h = 3 m, g = 10 m/s2
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 209

Question 5.
A solid sphere rolls up a plane inclined at 45° to the horizontal. If the speed of its centre of mass at the bottom of the plane is 5 m/s, find how far the sphere travels up the plane.
Solution :
Data : v = 5 m/s, θ = 45°, g = 9.8 m/s2
The total energy of the sphere at the bottom of the plane is
E = \(\frac{7}{10} M v^{2}\)
where M is the mass of the sphere.
In rolling up the incline through a vertical height h, it travels a distance L along the plane. Then,
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 210
The sphere travels 2.526 m up the plane.

Question 129.
Choose the correct option:

Question 1.
The bulging of the Earth at the equator and flattening at the poles is due to
(A) centripetal force
(B) centrifugal force
(C) gravitational force
(D) electrostatic force.
Answer:
(B) centrifugal force

Question 2.
A body of mass 0.4 kg is revolved in a horizontal circle of radius 5 m. If it performs 120 rpm, the centripetal force acting on it is
(A) 4π2 N
(B) 8π2 N
(C) 16π2 N
(D) 32π2 N.
Answer:
(D) 32π2 N.

Question 3.
Two particles with their masses in the ratio 2 : 3 perform uniform circular motion with orbital radii in the ratio 3 : 2. If the centripetal force acting on them is the same, the ratio of their speeds is
(A) 4 : 9
(B) 1 : 1
(C) 3 : 2
(D) 9 : 4.
Answer:
(C) 3 : 2

Question 4.
When a motorcyclist takes a circular turn on a level race track, the centripetal force is
(A) the resultant of the normal reaction and frictional force
(B) the horizontal component of the normal reaction
(C) the frictional force between the tyres and road
(D) the vertical component of the normal reaction.
Answer:
(C) the frictional force between the tyres and road

Question 5.
The maximum speed with which a car can be driven safely along a curved road of radius 17.32 m and banked at 30° with the horizontal is [g = 10 m/s2]
(A) 5 m/s
(B) 10 m/s
(C) 15 m/s
(D) 20 m/s.
Answer:
(B) 10 m/s

Question 6.
A track for a certain motor sport event is in the form of a circle and banked at an angle 6. For a car driven in a circle of radius r along the track at the optimum speed, the periodic time is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 211
Answer:
(C) \(2 \pi \sqrt{\frac{r}{g \tan \theta}}\)

Question 7.
The period of a conical pendulum in terms of its length (l), semivertical angle (θ) and acceleration due to gravity (g), is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 212
Answer:
(C) \(4 \pi \sqrt{\frac{l \cos \theta}{4 g}}\)

Question 8.
A conical pendulum of string length L and bob of mass m performs UCM along a circular path of radius r. The tension in the string is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 213
Answer:
(A) \(\frac{m g L}{\sqrt{L^{2}-r^{2}}}\)

Question 9.
The centripetal acceleration of the bob of a conical pendulum is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 214
Answer:
(D) \(\frac{r g}{L \cos \theta}\)

Question 10.
A small object tied at the end of a string is to be whirled in a vertical circle of radius r. If its speed at the lowest point is \(2 \sqrt{g r}\), then
(A) the string will be slack at the lowest point
(B) it will not reach the midway point
(C) its speed at the highest point will be \(\sqrt{g r}\)
(D) it will just reach the highest point with zero speed.
Answer:
(D) it will just reach the highest point with zero speed.

Question 11.
A small bob of mass m is tied to a string and revolved in a vertical circle of radius r. If its speed at the highest point is \(\sqrt{3 r g}\), the tension in the string at the lowest point is
(A) 5 mg
(B) 6 mg
(C) 7 mg
(D) 8 mg.
Answer:
(D) 8 mg.

Question 12.
A small object, tied at the end of a string of length r, is launched into a vertical circle with a speed \(2 \sqrt{g r}\) at the lowest point. Its speed when the string is horizontal is
(A) > \(3 \sqrt{g r}\)
(B) = \(3 \sqrt{g r}\)
(C) = \(2 \sqrt{g r}\)
(D) 0.
Answer:
(C) = \(2 \sqrt{g r}\)

Question 13.
Two bodies with moments of inertia I1 and I2 (I1 > I2) rotate with the same angular momentum. If E1 and E2 are their rotational kinetic energies, then
(A) E2 > E1
(B) E2 = E1
(C) E2 < E1
(D) E2 ≤ E1
Answer:
(A) E2 > E1

Question 14.
The radius of gyration k for a rigid body about a given rotation axis is given by
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 215
Answer:
(B) \(k^{2}=\frac{1}{M} \int r^{2} d m\)

Question 15.
Three point masses m, 2m and 3m are located at the three vertices of an equilateral triangle of side l. The moment of inertia of the system of particles about an axis perpendicular to their plane and equidistant from the vertices is
(A) 2ml2
(B) 3ml2
(C) \(2 \sqrt{3}\) ml2
(D) 6ml2
Answer:
(A) 2ml2

Question 16.
The moment of inertia of a thin uniform rod of mass M and length L, about an axis passing through a point midway between the centre and one end, and perpendicular to its length, is
(A) \(\frac{48}{7}\)ML2
(B) \(\frac{7}{48}\)ML2
(C) \(\frac{1}{48}\)ML2
(D) \(\frac{1}{16}\)ML2
Answer:
(B) \(\frac{7}{48}\)ML2

Question 17.
A thin uniform rod of mass M and length L has a small block of mass M attached at one end. The moment of inertia of the system about an axis through its CM and perpendicular to the length of the rod is
(A) \(\frac{13}{12}\) ML2
(B) \(\frac{1}{3}\) ML2
(C) \(\frac{5}{24}\) ML2
(D) \(\frac{7}{48}\) ML2
Answer:
(C) \(\frac{5}{24}\) ML2

Question 18.
A thin wire of length L and uniform linear mass density λ is bent into a circular ring. The MI of the ring about a tangential axis in its plane is
Maharashtra Board Class 12 Physics Important Questions Chapter 1 Rotational Dynamics 216
Answer:
(C) \(\frac{3 \lambda L^{3}}{8 \pi^{2}}\)

Question 19.
When a planet in its orbit changes its distance from the Sun, which of the following remains constant ?
(A) The moment of inertia of the planet about the Sun
(B) The gravitational force exerted by the Sun on the planet
(C) The planet’s speed
(D) The planet’s angular momentum about the Sun
Answer:
(D) The planet’s angular momentum about the Sun

Question 20.
If L is the angular momentum and I is the moment of inertia of a rotating body, then \(\frac{L^{2}}{2 I}\) represents its
(A) rotational PE
(B) total energy
(C) rotational KE
(D) translational KE.
Answer:
(C) rotational KE

Question 21.
A thin uniform rod of mass 3 kg and length 2 m rotates about an axis through its CM and perpendicular to its length. An external torque changes its frequency by 15 Hz in 10 s. The magnitude of the torque is
(A) 3.14 N.m
(B) 6.28 N.m
(C) 9.42 N.m
(D) 12.56 N.m.
Answer:
(C) 9.42 N.m

Question 22.
The flywheel of a motor has mass 300 kg and radius of gyration 1.5 m. The motor develops a constant torque of 2000 N.m and the flywheel starts from rest. The work done by the motor during the first 4 revolutions is
(A) 2 kJ
(B) 8 kJ
(C) 8n kJ
(D) 16π kJ.
Answer:
(D) 16π kJ.

Question 23.
Two uniform solid spheres, of the same mass but radii in the ratio R1 : R2 = 1 : 2, roll without slipping on a plane surface with the same total kinetic energy. The ratio ω1 : ω2 of their angular speed is
(A) 2 : 1
(B) \(\sqrt{2}\) : 1
(C) 1 : 1
(D) 1 : 2.
Answer:
(A) 2 : 1

Question 24.
A circularly symmetric body of radius R and radius of gyration k rolls without slipping along a flat surface. Then, the fraction of its total energy associated with rotation is [c = k2/R2]
(A) c
(B) \(\frac{c}{1+c}\)
(C) \(\frac{1}{c}\)
(D) \(\frac{1}{1+c}\)
Answer:
(B) \(\frac{c}{1+c}\)

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 8 Marketing Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 8 Marketing

1. (A) Select the correct options and rewrite the sentence

Question 1.
The term market is derived from the ………………. word ‘mercatus’.
(a) French
(b) Latin
(c) Italian
Answer:
Latin

Question 2.
In the ………………. concept of market, emphasis is given on ‘buying and selling of goods or services’.
[a) Place
(b) Exchange
(c) Customer
Answer:
Exchange

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
Perishable goods such as vegetables, fruits, milk products, etc. are sold in ………………. Market
(a) Very Short Period
(b) Short Period
(c) Long Period
Answer:
Very Short Period

Question 4.
Retail market is the market where retailer sells goods directly to the ……………… in small quantities.
(a) producer
(b) wholesaler
(c) consumer
Answer:
consumer

1. (B) Match the pairs

Question 1.

Group A Group B
(A) Market (1) Single Seller
(B) Registered brands (2) Stock Market
(C) Monopoly (3) Distinct Name
(D) Branding (4) Mercatus
(E) Digital (5) Single Buyer
(6) ISI
(7) Trademark
(8) Use of traditional media Marketing
(9) Multiple seller
(10) Use of digital media

Answer:

Group A Group B
(A) Market (4) Mercatus
(B) Registered brands (7) Trademark
(C) Monopoly (1) Single Seller
(D) Branding (3) Distinct Name
(E) Digital (10) Use of digital media

1. (C) Give one word/phrase/term for the following statements

Question 1.
The market for the commodities which Eire produced in one country and sold in other countries.
Answer:
International market

Question 2.
Type of market where durable commodities which are generally non-perishable in nature are sold.
Answer:
Long period Market

Question 3.
The market where goods Eire sold to the ultimate consumers or the users of the product.
Answer:
Retail Market

Question 4.
Two sellers, selling either a homogeneous product or a differentiated product.
Answer:
Duopoly

Question 5.
Giving of distinct name to one’s product.
Answer:
Branding

1. (D) State whether following the statements are True or False

Question 1.
The term market is derived from the Latin word ‘mercatus’.
Answer:
True

Question 2.
Market may be defined as aggregate demand by potential buyers for a product or service.
Answer:
True

Question 3.
The market for the commodities which are produced in one country and sold in another countries is known as national market.
Answer:
False

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 4.
In wholesale market sellers are known as retailers and buyers are known as wholesaler.
Answer:
False

Question 5.
Regulated Market operates according to forces of demand and supply.
Answer:
False

1. (E) Find the odd one

Question 1.
Primary Market, Secondary Market, Retail Market, Terminal Market
Answer:
Retail Market

Question 2.
Stock Exchange, Foreign Exchange, Bullion Market, Manufactured Goods Market
Answer:
Manufactured Goods Market

Question 3.
Price, People, Promotion, Product
Answer:
People

Question 4.
People, Promotion, Physical Environment, Process
Answer:
Promotion

1. (F) Complete the sentences

Question 1.
……………. is the place where transaction of buying and selling of goods and services take place in exchange of money or money’s worth.
Answer:
Market

Question 2.
…………… refers to a market situation when there is a single buyer of a commodity or service.
Answer:
Monopsony

Question 3.
…………….. is a slip which is found on the product and provides all the information regarding the product and its producer.
Answer:
Label

1. (G) Select the correct option and complete the following table

(Mercatus, Industrial goods, Oligopoly, E. Jerome McCarthy, Booms & Bitner)

Group A Group B
1. Commodity Market ————–
2. ————– A few sellers
3. —————— To trade merchandise
4. 4 Ps ————–
5. ————– 3 Ps

Answer:

Group A Group B
1. Commodity Market Industrial goods
2. Oligopoly A few sellers
3. Mercatus To trade merchandise
4. 4 Ps E Jerome McCarthy
5. Booms & Bitner 3 Ps

1. (H) Answer in one sentence

Question 1.
What do you mean by ‘Local Market’?
Answer:
Local Market refers to local geographical area in the region within which goods and services are bought and sold, e.g. purchase of grocery from the grocery shop located near to residential area.

Question 2.
What do you mean by ‘Regulated Market’ ?
Answer:
Market which is governed (regulated) by the statutory or legal provisions of the country is called regulated market, e.g. Stock exchange, Foreign exchange, etc.

Question 3.
Define Market.
Answer:
Market is the place where two or more parties, i.e buyer and seller are involved in buying and selling of goods and services for money or money’s worth.

Question 4.
What do you mean by Standardisation?
Answer:
Standardisation means setting up of standards or fixing certain norms in relation to design, quality, size, process, weight, colour, etc. of the product.

Question 5.
What do you mean by Branding?
Answer:
Branding refers to a process in which separate identity to a product is given through unique brand name to differentiate it from other products.

1. (I) Correct the underlined word and rewrite the sentence

Question 1.
Commodity Market refers to the market for borrowing and lending long term capital required by business.
Answer:
Capital Market refers to the market for borrowing and lending long term capital required by business.

Question 2.
In duopoly there is a single seller.
Answer:
In monopoly there is a single seller.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
Pricing bridges the time gap between production and sale of goods.
Answer:
Warehousing bridges the time gap between production and sale of goods.

Question 4.
Branding is the process of classification of products according to similar characteristics and/or quality.
Answer:
Grading is the process of classification of products according to similar characteristics and/or quality.

Question 5.
Grading helps in avoiding breakage, damage and destruction of the product.
Answer:
Packaging helps in avoiding breakage, damage and destruction of the product.

1. (J) Arrange in proper order

Question 1.
Local market, International market, National market.
Answer:
Local market, National market, International market.

Question 2.
Grading, Market Planning, Distribution.
Answer:
Market Planning, Grading, Distribution.

2. Explain the following terms/concepts

Question 1.
Market.
Answer:
(1) The word ‘market’ has originated from the Latin word ‘mercatus’ which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted’. Thus, market refers to the specific place where buyers, sellers and other middlemen gather and buy and sell commodities for certain price which is predetermined or bargained.

(2) In earlier days, place played a significant role in defining the term ‘market’. However, in modern days of information technology it has got wider meaning. Now the term ‘market’ is no more restricted to specific place or area, but it implies a complex network of dealers linked physically by telephone, computer, internet and many other arrangements and facilities which effect transfer of goods and services at a place.

Question 2.
Place Concept of Market.
Answer:
Place concept of market : The place concept of market is usually taken to mean the place where the goods and services are bought and sold for money or money’s worth. In the place concept of market, emphasis is given on the place where trading takes place. It is referred to a place where buyers, sellers and other intermediaries meet and buy and sell goods and services. In ancient days the term market was defined on the basis of place only. However in recent era of information and technology market has wider meaning and not just a place.

Question 3.
Commodity Concept of Market.
Answer:
Commodity concept of market : In this concept of market more stress (significance) is given on exchange of goods and services. In this concept the process of exchange of goods and services is more important and not the place of exchange. The buyer and seller and commodity bought and sold among them play significant role in this process. Accordingly, commodity concept of market means ‘buying and selling of goods and services’.

Question 4.
Digital Concept of Market.
Answer:
Space or Digital concept of market : Growth and development of information technology gave rise to the new concept of the market known as space or digital concept. Now people can buy and sell any commodity easily and conveniently with the help of new and sophisticated E-commerce portals and mobile applications. The direct contact between buyer (customer) and seller is now possible through the communication media such as telephone, mobile, computer, internet, etc.

Question 5.
Product.
Answer:
Product : An article, goods, commodity, or service that is manufactured and offered to the customers for sale is called product. It has capacity to satisfy desire or need of the customers. The products may be either tangible or intangible. It can be in the form of goods or services. By undertaking extensive market research the business enterprises are required to decide the right type of products to be produced and sold. The product creates impact on the mind of the customers on which success or failure of business firm depends.

Question 6.
Price.
Answer:
Price : The amount of money given or required to buy a product is called price. It is essentially the amount that customer ready to pay for a product. The cost of the product, willingness of the customers to pay for the product, value and utility of the product are the main factors that businessmen have to considered while (determining) deciding the price of a product. Price of the product should be neither too high which affects the demand adversely nor too low which reduces the profitability of the business.

Question 7.
Promotion.
Answer:
Promotion : Promotion is one of the basic elements of marketing because it makes the customers aware of its product, creates brand recognition and sales. Promotion refers to any type of marketing communication used to inform and persuade potential buyers or consumers to buy the products by explaining them the regular merits of products, service, brand, etc. Promotion mix comprises of different tools such as advertising, sales promotion, direct marketing, personal selling, etc. promotional strategies to be used in the business depends on various factors such as budget, target market and the message wants to communicate.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 8.
Marketing Mix.
Answer:
(1) The term ‘marketing mix’ is of recent origin and it is often used in modern marketing. Marketing mix refers to the mixture or combination of various marketing variables that the business enterprises intermix and control to get expected result from the target market. In other words, marketing mix means placing the right product, at right price, in right place and at right time. It is considered as one of the important tools of marketing. Every business enterprise must develop appropriate marketing mix to expand turnover and achieve its objectives.

(2) The 4 Ps of marketing mix viz. product, price, place and promotion were introduced by E. Jerome McCarthy in 1960. Then in 1981, 4 Ps were further extended by Booms and Bitner by adding 3 new elements viz. People, Process and Physical Environment. The marketing mix is broadly categorised into two types, viz. Product Marketing Mix (first 4 Ps) and Service Marketing Mix (newly added 3 Ps). In brief, marketing mix implies taking appropriate decisions in the above stated 7 broad areas which are supplementary to one another by the business enterprise.

Question 9.
Packaging.
Answer:
Packaging : The term ‘Pack’ means a collected amount of anything wrapped up or tied together for carrying. Package is a parcel, box or container in which things are packed accordingly, packaging means a process by which a finished product is made ready for storage, delivery or transportation, usually by placing the product in container or providing it with a wrapping. It implies designing the package for the product. The aim of packaging is to protect the goods during transport and storage and to preserve the contents and the quality of the product. It facilitates easy handling of goods in transit and helps to avoid breakage, leakage, damage, spoilage, pilferage and destruction of the product.

Question 10.
Labelling.
Answer:
Labelling : The term, ‘label’ means a piece of paper, card or other material attached to an object. It is a slip affixed on the product which provides all detail information in respect to product and its producers. It also gives details of ingredients and their quantity used in the product. Labelling also gives information about the product i.e. its weight, size, price, date of manufacture and expiry name and address of manufacturer, etc. The slip on which all these information are printed is called label and its process is called labelling. A label may be part of the package or it may be attached as a tag on the product. Labelling serves as an effective tool of marketing the product. Label is used to indicate the brand, grade, quality, etc. of the product. Good labelling adds to products overall attractiveness.

3. Study the following case/situation and express your opinion

Question 1.
Mr X purchases goods from nearest shop. Mr Y purchases mobiles from Tokyo. Mr Z of Nandurbar purchases electronic goods from Delhi.

(i) From which type of market does Mr. X purchase?
(ii) Name the type of market from where Mr. Y deals.
(iii) State the type of market from where Mr. Z purchases goods.
Answer:
(i) Mr. X purchases goods from Local market.
(ii) Mr. Y purchase mobiles from Tokyo (foreign market) and hence he deals in International market.
(iii) Mr. Z of Nandurbar purchases electronic goods from Delhi, i.e. from National market.

Question 2.
Mr. X deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from bank. He invests his funds in the equity shares.

(i) Name the market from where Mr. X borrows money.
(ii) Name the market where Mr. X invests his funds.
(iii) Which type of currency is required for international market?
Answer:
(i) Mr. X borrows money from capital market.
(ii) Mr. X invests his funds in the regulated market.
(iii) The different foreign currency is required by Mr. X for international market.

4. Answer in brief

Question 1.
Explain in detail the significance of marketing to the society.
Answer:
(1) Increase in standard of living : The main aim of marketing is to supply goods and services to fulfil the customers’ requirements. Marketing finds out the requirements of the customers and accordingly make efforts to supply quality products at cheaper prices. This in turn helps to maintain and raise the standard of living of the customers. In recent era, large scale production of products and services have considerably reduced their prices due to which poor people also attain reasonable level of living.

(2) Provide employment : Modern marketing i undertakes almost all functions of organisation such as buying, selling, financing, transport, warehousing, risk bearing, research and development, etc. which generate and create more job opportunities in different capacities and help to solve the problem of unemployment.

(3) Decreases distribution coats : Effective and proper utilisation of channel of distribution reduces overall cost of the products and services, Thus, marketing activities make the goods and services available to the society at cheaper prices. Due to reduction in the cost, number of potential consumers will also increase. It also gives guarantee of timely availability of the product.

(4) Consumer awareness : Marketing helps the society by educating consumers and by giving information of new products and services available in the requirements of consumers by providing relevant information, goods and services to the people as per their demand and taste. Marketing also includes information to help in making a purchase.

(5) Increase in National income : The scientifically well organised marketing activities facilitates rapid economic development of the nation. Well organised and effective marketing of products and services facilitates industrialisation, increases job opportunities and develop the economy. Effective marketing integrates agriculture and industry which in turn bring rapid development in the country.

(6) Managing consumer expectations : Marketing research enables the business organisations to understand the requirements of the consumers which helps in development of products to satisfy the customers expectation. The business organisations make certain changes in the product by considering customers’ review. Through marketing, business enterprises inform consumers about the major changes such as mergers, transfer in ownership which affect product offerings. Government regulations stop marketers to make false and misleading claims.

Question 2.
Explain 4Ps of product marketing mix.
Answer:
7 Ps of marketing are explained as follows:
(1) Product : An article, goods, commodity, or service that is manufactured and offered to the customers for sale is called product. It has capacity to satisfy desire or need of the customers. The products may be either tangible or intangible. It can be in the form of goods or services. By undertaking extensive market research the business enterprises are required to decide the right type of products to be produced and sold. The product creates impact on the mind of the customers on which success or failure of business firm depends.

(2) Price : The amount of money given or required to buy a product is called price. It is essentially the amount that customer ready to pay for a product. The cost of the product, willingness of the customers to pay for the product, value and utility of the product are the main factors that businessmen have to considered while (determining) deciding the price of a product. Price of the product should be neither too high which affects the demand adversely nor too low which reduces the profitability of the business.

(3) Place : The distribution or placement of product is a significant aspect of the marketing, Place is the element of marketing mix that ensures that right product is distribute and made conveniently available to the potential consumers or buyers at right price, at right location and at right time too. The business enterprises are required to distribute the products at a place easily approachable to the potential consumers or buyers. Place in this respect covers location, distribution and the ways of giving the products in the hand of the customers. The system of distribution decides the coverage of the product in the market.

(4) Promotion : Promotion is one of the basic elements of marketing because it makes the customers aware of its product, creates brand recognition and sales. Promotion refers to any type of marketing communication used to inform and persuade potential buyers or consumers to buy the products by explaining them the regular merits of products, service, brand, etc. Promotion mix comprises of different tools such as advertising, sales promotion, direct marketing, personal selling, etc. promotional strategies to be used in the business depends on various factors such as budget, target market and the message wants to communicate.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
Explain 3Ps in marketing of services.
Answer:
1. People : The employees, i.e. people inside the business and consumers/customers, i.e. people outside of the business create direct or indirect impact (influence) on the business. People include all individuals that play key role in offering the product or service to the buyer or customer. People inside the business comprise employees who assist to deliver services to the customers. Right people appointed to work at right place definitely add value to the business. The management or employer of the business enterprises are required to recruit right people, train them, develop their skill and retain them for their success.

2. Process : The steps taken by the business organisation in carrying the products and services from the place of business to the doorsteps of customer are called process. Processes are significant to provide a quality service. Good process ensures same standard of service to the customers, save time and cost by enhancing efficiency. The growth and development of technology enable the business organisations in effective monitoring of the process of business and help to take corrective action if necessary.

3. Physical environment : Marketing environment in which the interaction between customer and firm takes place is called physical environment. While providing (offering) intangible services, the service providers always try to incorporate certain tangible elements into their offering to increase experience of customers. In the service market, physical or tangible evidence is essential to ensure that the service is successfully provided. Physical evidence enables the customers to trace conveniently the brand leaders in the market. The physical evidence comprises of location, layout, packaging, branding, interior design, dress of the employees, their action, waiting area, etc.

Question 4.
Explain types of market on the basis of area covered.
Answer:
On the basis of area covered:
(i) Local market: Local market refers to local geographical area in the region within which goods and services are bought and sold, e.g. purchase of grocery from grocery shop located in a market near to residential place.

(ii) National market : National market refers to the area of a country within which goods and services are bought and sold, e.g. purchase of apples on wholesale from the state of Haryana by a customer staying in Mumbai.

(iii) International market : The market where the goods and services which are manufactured in one country and sold in many other countries is called international market, e.g. purchase of petrol by Government of India from Saudi Arabia.

Question 5.
Explain types of market on the basis of time.
Answer:
On the Basis of time:
(i) Very short period market : The market which is organised and carried on for very short period of time is called very short period market. This market has existence for very short period say few hours or for a day at a particular time and place, e.g. market for perishable goods such as vegetables, milk, fish, milk products, meat, fruits, etc.

(ii) Short period market : The market which is organised and carried out its functions for short period of time is called short period market. This market has existence for a short period, weekly market, festival market, market during fairs, etc. are known as short period market. In this market mostly perishable goods and semi-durable goods are bought and sold.

(iii) Long period market : The market which is organised and continued its functions for long period of time is called long period market. This market has existence for long period of time. In this market usually durable commodities are bought and sold.

5. Justify the following statements

Question 1.
Marketing is significant to the consumers.
Answer:
Importance of marketing to the consumers:
(1) Promotes product awareness : Many companies undertake different marketing activities to promote their products and services. Marketing makes consumers aware about the different products, various brands and features of products and services available in the market. Marketing facilitates the consumers to take right decision on purchases of products. On the basis of marketing information consumers can compare product features, availability, price and other essentials. Marketing also improves the quality of life of the consumers.

(2) Provides quality products : On account of increasing competition in the market, consumers easily get information about the product and services available in the market. Marketing creates moral pressure on the business enterprises to sell quality products and services to the consumers. If business enterprises supply defective products to the consumers, sooner or later, it will create negative image of the business and adversely affect customers’ loyalty towards business and products.

(3) Provides variety of products : Marketing provides information to the consumers about the product and attracts them to purchase the same market segment or marketing plan becoming critical in any business on account of increase in customer population their preferences and availability of competitive options. The business organisation are required to launch product by considering market segment. Business organisations are required to make available variety of goods to fulfil the requirements of different market segments of the consumers. According to price, size and quality of products, variety’ may change.

(4) Helps in selection : In the competitive markets, different variety of products with different brands are available. Marketing enables the consumers to select the best products and services from the different options available.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 2.
Promotion plays an important role in marketing.
Answer:
(1) Promotion means any type of marketing communication used by the business enterprises to inform and persuade potential buyers to buy the products or services. In promotion merits of products, services, brand benefits, etc. are explained to the potential buyers to attract them towards the products. Promotion mix comprises of different tools such as advertising, sale, promotion, direct marketing, personal selling, publicity, etc.

(2) Business enterprises make use of combination of all or some of these five methods for promotion of their products and services as per the need of the business. Promotional activities help the organisation to increase brand awareness in the market. In brief promotion is concerned with informing the customers about the products of the firm and persuading them to buy the products.

(3) Promotional strategy to be used in the organisation depends on the various factors such as budget, the message it wants to communicate and target market. Promotion is an important element of marketing that creates brand recognition and ultimately increase sales.

(4) Business enterprises through promotion attract consumers to buy and taste the products. Promotion mix to be used will depend upon the nature of the product, type of customers, stage of demand, degree of competition, etc. Promotion helps business organisations to enhance the sales. Increase in sales, increases profit for the organisation. If the increased profit and income is reinvested in the business, it will earn more and more profits in the future. Promotion helps the organisation to create awareness about existing products, new arrivals and the company selling certain products in the market. It creates brand image among the buyers. Business organisations also use promotion to build customers’ layout base. This in turn expands sales and profits.

Question 3.
Market can be classified on the basis of competition.
Answer:
On the basis of competition:
(i) Perfect market : A type of market in which large numbers of buyers and large numbers of sellers exist to buy and sell homogeneous product at prevailing market price is called perfect market. In this market, all buyers and all sellers have equal access to all information and have perfect knowledge about the market conditions. Neither single buyer nor a single seller can influence price. One uniform single price prevails in the market, This model of perfect market is frequently used in economic analysis.

(ii) Imperfect market : A type of market which has distinct features of market imperfection such as single seller, imperfect knowledge of market conditions on the part of buyers or sellers, failure to make adjustment in demand and supply, etc. is called imperfect market, e.g. monopoly market. Imperfect market is further sub-divided into the following categories:

(a) Monopoly : The word monopoly is the combination of two words, viz. ‘mono’ means one and ‘poly’ means seller. Accordingly, a market structure which is characterised by a single seller selling unique product in the market is called monopoly. In monopoly, seller faces no competition as he is the sole seller of goods with no close substitute. He controls the entire supply and enjoys the power of setting the price for his goods. He is price maker.

(b) Duopoly : A market situation in which two suppliers dominate the entire market for a commodity or service. In this market, there are two sellers, who either sell a homogeneous product or differentiated product. They enjoy a monopoly in the product produced and sold by them.

(c) Oligopoly : Oligopoly is a state of limited competition in which market is shared by a limited number (few) of producers or sellers producing and selling either a homogeneous product or a differentiated product.

(d) Monopsony : Market situation in which there is only one buyer substantially controls the market as major and single purchaser of goods and services offered by many producers or sellers, is called monopsony market, e.g. labour market, a firm is the sole purchaser of a certain kind of labour.

Question 4.
Marketing helps in increasing consumer awareness.
Answer:
(1) Many companies undertake different marketing activities to promote their products and services. Marketing makes consumers aware about the different products, brands, features and usefulness of the products and services available in the market. Marketing facilitates the consumers to take right decisions on the purchases of right products and services.

(2) Marketing helps the society by educating consumers and through giving information of new products and services available in the market and their usefulness. Marketing identifies and satisfies the requirements of consumers by providing relevant information, goods and services to the people as per their demand and preferences. Marketing provides information to consumers to take right decisions.

(3) On the basis of marketing information, consumers can compare products features, availability, price and other essentials and chooses right products at right prices. Marketing also helps to improve the quality of life of the consumers. Marketing helps to create awareness about the existing products, new products entering into the market and the company selling specific products in the market. This in turn helps to raise awareness among the potential and prospective consumers. Marketing also creates brand image among the consumers.

(4) The business organisations use marketing to create awareness among the consumers regarding major changes such as mergers and transfer of ownership that influence products offerings or way to improve quality. Thus, marketing creates awareness among the consumers about the products available in the market and attracts the customers to buy the same.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 5.
There is a need of branding to get’ recognition among the consumers.
Answer:
(1) A name, design, term, symbol, sign, numeral or combination of them given to the product to identify the goods or services of the one manufacturer and to differentiate them from those of competitors, is called a brand. Branding, therefore means, giving a distinctive identity to a product. Bata, Surf, Coca-Cola, 501 soap, 50-50, etc. are some of the well-known brands. Registered brand is called trade mark. Trade mark cannot be copied by other firms. Branding is done mostly for manufactured goods.

(2) Brands are very effective for wide publicity. It helps sampling. Effectively established brands increases value of business in the industry. Good brand expands the business and create a positive impact on the business and the customers. The customers attracted towards the products are assured dependability and loyalty by using branded products. Strong branding helps to generate new customers and maintain the existing and regular customers.

(3) Branding helps the products and producers to get recognition among the consumers. Branding facilitates advertising and price control. Branded goods enjoy a wider market as the necessity or personal inspection or sample is avoided. By registering his brand, a businessman can protect his products from imitation.

(4) Branding helps to get new business and increase brand awareness in the market. It creates trust in the mind of consumers, potential consumers and people. The consumers prefer to do business with a company that has professional brand name in the market.

6. Attempt the following

Question 1.
Give classification of market in detail on the basis of ‘Volume of Transaction
Answer:
On the basis of volume of transaction:
(i) Wholesale market : Wholesale market refers to market in which goods purchased and sold in bulk (large) quantity at lower (cheaper) prices. In this market goods are purchased by the wholesalers in large quantity from manufacturers. He then sells these goods in moderate quantity to retailers who then sell these goods to consumers in small quantity. In brief, it is a market for bulk purchases and sales of goods. In this type of market, wholesalers are know as sellers and retailers are known as buyers.

(ii) Retail market : Retail market refers to market in which retailers sell goods directly to the ultimate consumers in small quantity or one to one basis, e.g. General provisional goods shop localised in market.

Question 2.
Give classification of market on the basis of ‘Time’.
Answer:
On the Basis of time:
(i) Very short period market : The market which is organised and carried on for very short period of time is called very short period market. This market has existence for very short period say few hours or for a day at a particular time and place, e.g. market for perishable goods such as vegetables, milk, fish, milk products, meat, fruits, etc.

(ii) Short period market : The market which is organised and carried out its functions for short period of time is called short period market. This market has existence for a short period, weekly market, festival market, market during fairs, etc. are known as short period market. In this market mostly perishable goods and semi-durable goods are bought and sold.

(iii) Long period market : The market which is organised and continued its functions for long period of time is called long period market. This market has existence for long period of time. In this market usually durable commodities are bought and sold.

Question 3.
Explain packaging and labelling.
Answer:
(1) Packaging : The term ‘Pack’ means a collected amount of anything wrapped up or tied together for carrying. Package is a parcel, box or container in which things are packed accordingly, packaging means a process by which a finished product is made ready for storage, delivery or transportation, usually by placing the product in container or providing it with a wrapping. It implies designing the package for the product. The aim of packaging is to protect the goods during transport and storage and to preserve the contents and the quality of the product. It facilitates easy handling of goods in transit and helps to avoid breakage, leakage, damage, spoilage, pilferage and destruction of the product.

Sealed packaging reduces the chances of adulteration or duplication of the products. Materials like bottles, containers, plastic bags, bubble bags, tin, jute bags, wooden boxes, packing foam, etc. are used for packing the product. Packaging decorates and beautifies a product and thereby creates a desire in the minds of the customers to buy the product even through they have no immediate need for it. Good packing increases durability of the product. In brief, packaging is an indispensable technique by which the goods are protected, handled, identified, advertised and sold on large scale. Thus, modern packaging promotes sales.

(2) Labelling : The term, ‘label’ means a piece of paper, card or other material attached to an object. It is a slip affixed on the product which provides all detail information in respect to product and its producers. It also gives details of ingredients and their quantity used in the product. Labelling also gives information about the product i.e. its weight, size, price, date of manufacture and expiry name and address of manufacturer, etc. The slip on which all these information are printed is called label and its process is called labelling. A label may be part of the package or it may be attached as a tag on the product. Labelling serves as an effective tool of marketing the product. Label is used to indicate the brand, grade, quality, etc. of the product. Good labelling adds to products overall attractiveness.

Question 4.
Explain standardisation and grading.
Answer:
(1) Standardisation : The term standard means an object, quality or measure serving as a basis or example to which others should confirm. It is a criterion, rule norm or measurement used for distinguishing one product from another so far its quality is concerned. Accordingly standardisation means fixing or determining certain norms or criteria with regard to the quality of a product. It may be related to process, size, quality, design, weight, colour, etc. of the product. It is a mental process of establishing standard as indicator of certain quality. It facilitates grading. Standardised commodities are easily and quickly sold even at high price in the market due to uniformity in their quality. Standardisation helps to achieve customers’ loyalty towards the product.

(2) Grading : The term ‘grade’ means a class or a category. Accordingly grading means physical sorting or classifying of products into different categories of similar characteristics or quality or set standards. Grading is done on the basis of certain features like size, shape, quality, etc. On the basis of grading, the goods are described as superior, good, better, best, inferior, medium, etc. It is necessary in agriculture, dairy, forest and mineral products. Standardisation and grading are interrelated process because without standardisation grading cannot take place and standardisation has no scope without grading.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 5.
Explain importance of marketing to the firm.
Answer:
The importance of marketing to the firm is explained as follows:
(1) Increases awareness : Marketing provides information and creates understanding among the consumers about the existing products, new arrivals and the company selling a particular product in the market. This in turn increases awareness among the potential consumers and creates brand image among the consumers.

(2) Increases sales : After providing information successfully about the products or services among the consumers, marketing attracts them to buy the products or services. Successful marketing campaign enables the business organisations to enhance the sales of the organisation. Expansion in sales increases profit for the organisation which is in turn reinvested in the business to earn more and more profits in the future. In recent era, survival of the business organisations depends on the effective and efficient marketing function.

(3) Create trust : The consumers usually prefer to buy required goods and services from those business enterprises which have trustworthy reputation in the market. To create trust among the customers longer time is required. Trustworthy business enterprises earn loyal customers. This trust worthiness creates customers loyalty. Satisfied customers enhance the brand image of the organisation in the market. Efficient and effective marketing plays significant role in creating good relationship between the customers and the organisation. Efficient pricing policy and appropriate after sales service improve image of the business enterprises. Majority of marketing activities move towards building brand equity of the business.

(4) Basis of making decisions : Every business organisation is required to take several decisions before delivering the final products or services to the consumers. The business organisation is required to considered or face many problems such as what to produce, how to produce, when to produce, and for whom to produce? When business expands, the decision making process becomes more complex. Effective marketing facilitates organisation to take right decisions at right time.

(5) Source of new ideas : Marketing enables the business organisations to know the requirements of the consumers. Feedbacks received from the consumers helps the manufacturers or producers to make improvement or desired changes in the existing products. Tastes and preferences of the consumers change rapidly. Due to marketing, business enterprises understand these changes and new demand pattern emerges in the market. Accordingly, Research and Development department develops the products. In the field of product development 4 Ps of marketing mix viz. product, price, place and promotion play major role. Inventions and innovations are made by the Research and Development team of the business when the need arises.

(6) Tackling the competition : On account of ; increasing competition among all the sectors of the economy, it is now difficult for any business enterprise to create monopoly for its products or services. Marketing creates brand loyalty in the mind of potential buyers. Marketing facilitates organisations to communicate the salient features and advantages of products and services to consumers and induce them to buy the same. Efficient marketing strategies depict better image of the business than competitors. The efficient management always uses modern technology for effective marketing.

7. Answer the following

Question 1.
Define Marketing and explain in detail the concepts of marketing.
Answer:
[A] Definition : The concept of ‘marketing’ has originated from the term ‘market’. The term ‘market’ implies any arrangement by which the buyers and sellers come into contact directly or indirectly to exchange goods and services at a price. Accordingly, marketing means an action or business of promoting and selling products including market research and advertising. It includes all the activities responsible for the flow of goods and services from the centre of production to ultimate consumers.

In brief, the sum total of all the activities involved in the promotion, distribution and selling of product or service from the producer or seller to the consumer or buyer is called marketing. According to Philip Kotler, “Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others’’. Marketing is consumer-oriented. It creates customers for the goods produced in advance.

[B] Concept of marketing : The different concepts of marketing are explained below:
(1) Place concept of market : The place concept of market is usually taken to mean the place where the goods and services are bought and sold for money or money’s worth. In the place concept of market, emphasis is given on the place where trading takes place. It is referred to a place where buyers, sellers and other intermediaries meet and buy and sell goods and services. In ancient days the term market was defined on the basis of place only. However in recent era of information and technology market has wider meaning and not just a place.

(2) Commodity concept of market : In this concept of market more stress (significance) is given on exchange of goods and services. In this concept the process of exchange of goods and services is more important and not the place of exchange. The buyer and seller and commodity bought and sold among them play significant role in this process. Accordingly, commodity concept of market means ‘buying and selling of goods and services’.

(3) Exchange concept of market : Exchange concept of market has given stress on the selling and buying of goods and services between buyers and seller with free consent and mutual trust. During the buying and selling any coercion, undue influence or fraud should not be applied by either party to the transaction. The process between buyer and seller should be voluntary.

(4) Area concept of market: Area concept of market associated with exchange concept. This concept gives more stress on free association between buyers and seller to determine the price of goods to be bought and sold. To fix price it is not essential for buyer and seller to meet each other personally. With the help of different modern communication media, buyers and sellers can fix the price and complete the transaction of exchange of goods or services.

(5) Demand or customer concept of market : According to this concept, customer being the king of the market, so important side of the market is to assess (measure) then needs or demand of the customers. As per this concept market can be studied from the total size of demand or customers. This concept states that the aggregate (total) demand of prospective (potential) buyers for any product is a market.

(6) Space or Digital concept of market : Growth and development of information technology gave rise to the new concept of the market known as space or digital concept. Now people can buy and sell any commodity easily and conveniently with the help of new and sophisticated E-commerce portals and mobile applications. The direct contact between buyer (customer) and seller is now possible through the communication media such as telephone, mobile, computer, internet, etc.

Now it is easy for the customers to get information of quality, features, price, terms and conditions etc. of any products of any company. In brief, Digital market may be defined as, “market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price, terms of exchange among them.

Question 2.
Explain different types of market in detail.
Answer:
Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing 1
(1) On the basis of area covered:
(i) Local market: Local market refers to local geographical area in the region within which goods and services are bought and sold, e.g. purchase of grocery from grocery shop located in a market near to residential place.

(ii) National market : National market refers to the area of a country within which goods and services are bought and sold, e.g. purchase of apples on wholesale from the state of Haryana by a customer staying in Mumbai.

(iii) International market : The market where the goods and services which are manufactured in one country and sold in many other countries is called international market, e.g. purchase of petrol by Government of India from Saudi Arabia.

(2) On the Basis of time:
(i) Very short period market : The market which is organised and carried on for very short period of time is called very short period market. This market has existence for very short period say few hours or for a day at a particular time and place, e.g. market for perishable goods such as vegetables, milk, fish, milk products, meat, fruits, etc.

(ii) Short period market : The market which is organised and carried out its functions for short period of time is called short period market. This market has existence for a short period, weekly market, festival market, market during fairs, etc. are known as short period market. In this market mostly perishable goods and semi-durable goods are bought and sold.

(iii) Long period market : The market which is organised and continued its functions for long period of time is called long period market. This market has existence for long period of time. In this market usually durable commodities are bought and sold.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

(3) On the basis of volume of transaction:
(i) Wholesale market : Wholesale market refers to market in which goods purchased and sold in bulk (large) quantity at lower (cheaper) prices. In this market goods are purchased by the wholesalers in large quantity from manufacturers. He then sells these goods in moderate quantity to retailers who then sell these goods to consumers in small quantity. In brief, it is a market for bulk purchases and sales of goods. In this type of market, wholesalers are know as sellers and retailers are known as buyers.

(ii) Retail market : Retail market refers to market in which retailers sell goods directly to the ultimate consumers in small quantity or one to one basis, e.g. General provisional goods shop localised in market.

(4) On the basis of importance:
(i) Primary market : The market for primary products like agricultural and forest products are called primary market, e.g. market for food grains, vegetables, fruits, etc.

(ii) Secondary market : The market for semi-manufactured goods and semi-processed goods is called secondary market, e.g. iron ore market, yarn market.

(iii) Terminal market : The market where finished goods are bought and then sold to the ultimate consumers or the users of the product.

(5) On the basis of nature of goods:
(i) Commodity market : The market for goods, material or produce is called commodity market, e.g. market for consumer goods, industrial goods, etc.

(ii) Capital market : A market place where long term funds required by business enterprises are borrowed and lent is called capital market, The financial assets which are bought and sold in the capital market have long or indefinite maturity period. It deals in both debt and equity with maturity ranging from 1 year to 10 years.

(6) On the basis of regulation:
(i) Regulated market : Markets which are governed (regulated) and controlled by the statutory or legal provisions of the country are called regulated market, e.g. stock exchanges, foreign exchanges, commodity exchanges, etc.

(ii) Unregulated or free market : The markets which are usually regulated and operated according to the forces of demand and supply and not controlled by any statutory provisions are called unregulated or free market, e.g. market for various S commodities and services.

(7) On the basis of competition:
(i) Perfect market : A type of market in which large numbers of buyers and large numbers of sellers exist to buy and sell homogeneous product at prevailing market price is called perfect market. In this market, all buyers and all sellers have equal access to all information and have perfect knowledge about the market conditions. Neither single buyer nor a single seller can influence price. One uniform single price prevails in the market, This model of perfect market is frequently used in economic analysis.

(ii) Imperfect market : A type of market which has distinct features of market imperfection such as single seller, imperfect knowledge of market conditions on the part of buyers or sellers, failure to make adjustment in demand and supply, etc. is called imperfect market, e.g. monopoly market. Imperfect market is further sub-divided into the following categories:

(a) Monopoly : The word monopoly is the combination of two words, viz. ‘mono’ means one and ‘poly’ means seller. Accordingly, a market structure which is characterised by a single seller selling unique product in the market is called monopoly. In monopoly, seller faces no competition as he is the sole seller of goods with no close substitute. He controls the entire supply and enjoys the power of setting the price for his goods. He is price maker.

(b) Duopoly : A market situation in which two suppliers dominate the entire market for a commodity or service. In this market, there are two sellers, who either sell a homogeneous product or differentiated product. They enjoy a monopoly in the product produced and sold by them.

(c) Oligopoly : Oligopoly is a state of limited competition in which market is shared by a limited number (few) of producers or sellers producing and selling either a homogeneous product or a differentiated product.

(d) Monopsony : Market situation in which there is only one buyer substantially controls the market as major and single purchaser of goods and services offered by many producers or sellers, is called monopsony market, e.g. labour market, a firm is the sole purchaser of a certain kind of labour.

Question 3.
Explain in detail 7Ps of Marketing.
Answer:
7 Ps of marketing are explained as follows:
(1) Product : An article, goods, commodity, or service that is manufactured and offered to the customers for sale is called product. It has capacity to satisfy desire or need of the customers. The products may be either tangible or intangible. It can be in the form of goods or services. By undertaking extensive market research the business enterprises are required to decide the right type of products to be produced and sold. The product creates impact on the mind of the customers on which success or failure of business firm depends.

(2) Price : The amount of money given or required to buy a product is called price. It is essentially the amount that customer ready to pay for a product. The cost of the product, willingness of the customers to pay for the product, value and utility of the product are the main factors that businessmen have to considered while (determining) deciding the price of a product. Price of the product should be neither too high which affects the demand adversely nor too low which reduces the profitability of the business.

(3) Place : The distribution or placement of product is a significant aspect of the marketing, Place is the element of marketing mix that ensures that right product is distribute and made conveniently available to the potential consumers or buyers at right price, at right location and at right time too. The business enterprises are required to distribute the products at a place easily approachable to the potential consumers or buyers. Place in this respect covers location, distribution and the ways of giving the products in the hand of the customers. The system of distribution decides the coverage of the product in the market.

(4) Promotion : Promotion is one of the basic elements of marketing because it makes the customers aware of its product, creates brand recognition and sales. Promotion refers to any type of marketing communication used to inform and persuade potential buyers or consumers to buy the products by explaining them the regular merits of products, service, brand, etc. Promotion mix comprises of different tools such as advertising, sales promotion, direct marketing, personal selling, etc. promotional strategies to be used in the business depends on various factors such as budget, target market and the message wants to communicate.

(5) People : The employees, i.e. people inside the business and consumers/customers, i.e. people outside of the business create direct or indirect impact (influence) on the business. People include all individuals that play key role in offering the product or service to the buyer or customer. People inside the business comprise employees who assist to deliver services to the customers. Right people appointed to work at right place definitely add value to the business. The management or employer of the business enterprises are required to recruit right people, train them, develop their skill and retain them for their success.

(6) Process : The steps taken by the business organisation in carrying the products and services from the place of business to the doorsteps of customer are called process. Processes are significant to provide a quality service. Good process ensures same standard of service to the customers, save time and cost by enhancing efficiency. The growth and development of technology enable the business organisations in effective monitoring of the process of business and help to take corrective action if necessary.

(7) Physical environment : Marketing environment in which the interaction between customer and firm takes place is called physical environment. While providing (offering) intangible services, the service providers always try to incorporate certain tangible elements into their offering to increase experience of customers. In the service market, physical or tangible evidence is essential to ensure that the service is successfully provided. Physical evidence enables the customers to trace conveniently the brand leaders in the market. The physical evidence comprises of location, layout, packaging, branding, interior design, dress of the employees, their action, waiting area, etc.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 4.
Explain the functions of marketing in detail.
Answer:
The functions of marketing are explained as follows:
(1) Marketing research : The process of identifying the need and want of the customers, gathering information from the consumers, analysing and interpreting that information is called marketing research. Marketing research helps to assess the need in the market, requirements of consumers, time of purchases, quantity of purchases and prices at which products are bought and sold, etc. Marketing Research helps the business organisations to take various decisions on the marketing of products.

(2) Buying and assembling : Buying and assembling involve buying and bringing raw materials at one place for production purpose. This marketing functions is more important because quality and price of raw materials determine (fix) cost and quality of the final product.

(3) Market planning : After estimating the need of marketing the business enterprises are required to outiine the marketing plan and strategies to accomplish the predetermined aims and objectives. Marketing planning refers to the process of defining, determining and organising the marketing aims and objectives of the business and preparing strategies to accomplish those aims and objectives. In brief, market planning is nothing but a comprehensive blueprint that outlines overall marketing efforts of the business enterprises.

(4) Product development : In recent years, product development and design become an important function of marketing. It plays significant role in marketing (selling) the products. Every business organisation is required to develop its products to suit the needs of the consumers. Product design implies decisions in the areas of quality, colour, standards, shape, design, packing, etc. of the product. Most of the consumers always buy better and attractively designed products. Good and attractive design of the product also provides competitive benefits to the business by increasing its turnover. Product development is ongoing process because the needs of the consumers change as time passes.

(5) Standardisation and grading : Standardisation means setting up of standards or fixing certain norms in relation to design, quality, size, process, weight, colour, etc. of the product. Standardisation ensures uniformity in quality of products and helps to gain customers’ loyalty towards the product. Grading means physical sorting and classifying of the products according to standards set up, i.e. similar characteristics or features. Grading is completed on the basis of some features such as size, shape, quality, etc. Usually grading is done in the case of agricultural commodities like rice, wheat, potatoes, sugar, cotton, etc.

(6) Packing and labelling : Attractive package and label make the product successful and create long lasting impression on the consumers about the product. Designing the package for the product in attractive manner is called packaging, Packaging protects the product from breakage, leakage, damage, and destruction. Botties, plastic bags, wooden boxes, bubble bags, containers, tins, jute bags, packing foams, etc. are used for packing the products. A slip providing information of product and its producer pasted or affixed on the product container is called label. It gives protection to the product and serves as an effective tool of marketing.

(7) Branding : Branding means giving a name, symbol, mark or numeral to a product for the purpose of giving a distinct identity to that product is called branding. A brand which is registered is called Trademark. No one can copy trademark in marketing field. Branding gives the product a separate identity and recognition among the consumers which helps to expand business and increase brand awareness in the market.

(8) Customer support service : As the customer is regarded as centre point or the king of the market, business organisation must take required steps to satisfy the customers. The business organisations are also required to take every possible steps to render support services to the customers. Regular support services given to the customers increase their loyalty towards the business organisation. The support services like pre-sales services, after-sales services, consumer helpline, technical assistance, product demonstration, etc. are usually provided to the customers by the businessmen. Customer support services facilitate the business organisations to get, retain and increase the customers.

(9) Pricing of product : Pricing of product is an important and challenging functions of marketing and plays significant role in the market having cut-throat competition. Many times success or failure of products depend on the price charged for the product. While fixing the price of the product the business organisation is required to considered several factor such as cost, desired profit, price of the competitions product, market condition, demand for the product, etc. As per the requirement of market, the businessmen are required to change the prices of the products. The price fixed should neither be too high which may lose customers nor too low which may compel business to incur loss. Hence for deciding the right price, extensive market research should be undertaken.

(10) Promotional channels : The process of convening the consumers information of the products, their features, prices, uses, etc. and inducing them to buy the products is called promotion. Important tools of promotion include personal selling, advertisement, publicity and sales promotion. The businessmen can use some of the tools or combination of some tools for promotion of their products. Promotional activities increase brand awareness in the market.

(11) Distribution: The activities which are related to movement of finished products from the place of business to the doorsteps of consumers are called distribution. The distribution comprises of transportation, material handling, order processing, packaging, warehousing, inventory control, market forecasting, plant and warehousing location and customer service. The business organisation is required to spend major part of marketing budget of the business or the distribution. The significance of physical distribution for business organisation mostly depends on the type of product and level of customer satisfaction.

(12) Transportation : Physical movement of finished products as well as raw material from the s place of origin or production to the doorsteps of consumers is called transportation. Transportation is necessary because production, sale and consumption cannot take place at one place. By carrying the products from the place of plenty to place of scarcity the transport creates place utility into the products. The factors such as geographical boundaries, nature of products, cost, target ; market, speed, reliability, frequency, safety, etc. help to decide the mode of transport to be used. The modes of transport used by the business are categorised as road, air, water, railways, pipeline transport.

(13) Warehousing : Warehousing means storing of goods in a godown to held them in stock from the time of production or purchase till the time of their sale. Warehousing enables the business organisation to keep and maintain a smooth flow of goods by maintaining balance between supply and demand of the products warehousing helps to stabilizes the prices in the market. This marketing function is carried out by manufacturers, wholesalers and retailers. By holding the stock of products over certain period, warehousing creates time utility in the products.

Question 5.
Explain importance of marketing to the society and consumers.
Answer:
[A] Importance of marketing to the society:
(1) Increase in standard of living : The main aim of marketing is to supply goods and services to fulfil the customers’ requirements. Marketing finds out the requirements of the customers and accordingly make efforts to supply quality products at cheaper prices. This in turn helps to maintain and raise the standard of living of the customers. In recent era, large scale production of products and services have considerably reduced their prices due to which poor people also attain reasonable level of living.

(2) Provide employment : Modern marketing i undertakes almost all functions of organisation such as buying, selling, financing, transport, warehousing, risk bearing, research and development, etc. which generate and create more job opportunities in different capacities and help to solve the problem of unemployment.

(3) Decreases distribution coats : Effective and proper utilisation of channel of distribution reduces overall cost of the products and services, Thus, marketing activities make the goods and services available to the society at cheaper prices. Due to reduction in the cost, number of potential consumers will also increase. It also gives guarantee of timely availability of the product.

(4) Consumer awareness : Marketing helps the society by educating consumers and by giving information of new products and services available in the requirements of consumers by providing relevant information, goods and services to the people as per their demand and taste. Marketing also includes information to help in making a purchase.

(5) Increase in National income : The scientifically well organised marketing activities facilitates rapid economic development of the nation. Well organised and effective marketing of products and services facilitates industrialisation, increases job opportunities and develop the economy. Effective marketing integrates agriculture and industry which in turn bring rapid development in the country.

(6) Managing consumer expectations : Marketing research enables the business organisations to understand the requirements of the consumers which helps in development of products to satisfy the customers expectation. The business organisations make certain changes in the product by considering customers’ review. Through marketing, business enterprises inform consumers about the major changes such as mergers, transfer in ownership which affect product offerings. Government regulations stop marketers to make false and misleading claims.

[B] Importance of marketing to the consumers:
(1) Promotes product awareness : Many companies undertake different marketing activities to promote their products and services. Marketing makes consumers aware about the different products, various brands and features of products and services available in the market. Marketing facilitates the consumers to take right decision on purchases of products. On the basis of marketing information consumers can compare product features, availability, price and other essentials. Marketing also improves the quality of life of the consumers.

(2) Provides quality products : On account of increasing competition in the market, consumers easily get information about the product and services available in the market. Marketing creates moral pressure on the business enterprises to sell quality products and services to the consumers. If business enterprises supply defective products to the consumers, sooner or later, it will create negative image of the business and adversely affect customers’ loyalty towards business and products.

(3) Provides variety of products : Marketing provides information to the consumers about the product and attracts them to purchase the same market segment or marketing plan becoming critical in any business on account of increase in customer population their preferences and availability of competitive options. The business organisation are required to launch product by considering market segment. The business organisations are required to make available variety of goods to fulfil the requirements of different market segments of the consumers. According to price, size and quality of products, variety’ may change.

(4) Helps in selection : In the competitive markets, different variety of products with different brands are available. Marketing enables the consumers to select the best products and services from the different options available.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

(5) Consumer satisfaction : The main and primary aim of marketing policy is to advertise and give assurance of good quality product to the consumer. When the expectations and requirements of customers are fulfilled, the customers become more comfortable and get satisfied. Marketing efforts result into customers’ satisfaction by way of honest advertising, assurance of quality products and accessibility of innovative products. In this manner, marketing makes efforts to give satisfaction to the consumers.

(6) Regular supply of goods : Regular supply of goods to the consumers is practicable through effective and efficient distribution channel of marketing. Marketing also helps to keep and maintain the balance between demand and supply. As a result, prices get stabilised.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 7 Consumer Protection Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 7 Consumer Protection

1. (A) Select the correct options and rewrite the sentence

Question 1.
In India, the Consumer Protection Act was initiated in the year ………………
(a) 1947
(b) 1989
(c) 1986
Answer:
(c) 1986

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 2.
The President of District Commission is a ………………..
(a) District Judge
(b) High Court Judge
(c) Supreme Court Judge
Answer:
(a) District Judge

Question 3.
The main objective of the consumer organization is to protect the interest of the …………………
(a) consumer
(b) trader
(c) producer
Answer:
(a) consumer

Question 4.
……………… is the highest authority to settle the consumer dispute under Act.
(a) State Commission
(b) National Commission
(c) District Commission
Answer:
(b) National Commission

Question 5.
The Government has established ……………… to settle the consumer disputes by compromise.
(a) District Commission
(b) Lok Adalat
(c) Consumer organisation
Answer:
(b) Lok Adalat

Question 6.
National Commission has ……………… members.
(a) 2
(b) 3
(c) 4
Answer:
(c) 4

Question 7.
District Commission entertains complaints of consumer for compensation which is less than ………………..
(a) one crore
(b) ten lacs
(c) ten crore
Answer:
(a) one crore

Question 8.
…………………. is celebrated as World Consumer Day.
(a) 24th December
(b) 26th January
(c) 15th March
Answer:
(c) 15th March

Question 9.
In modern competitive market, consumer is regarded as the ………………
(a) King
(b) Agency
(c) Owner
Answer:
(a) King

1. (B) Match the pairs

Question 1.

Group A Group B
(A) King of the market (1) 1930
(B) National Commission (2) Socialist
(C) Mumbai Grahak Panchayat (3) Exceeds Rs ten crore
(D) Sale of Goods Act (4) Non-Government Organisation
(E) Consumer Right (5) Consumer
(6) Legislative Measures
(7) Exceeds Rs one crore but does not exceed Rs ten crore.
(8) 1956
(9) Consumer Protection Act
(10) Right to Information

Answer:

Group A Group B
(A) King of the market (5) Consumer
(B) National Commission (3) Exceeds Rs ten crore
(C) Mumbai Grahak Panchayat (4) Non-Government Organisation
(D) Sale of Goods Act (1) 1930
(E) Consumer Right (10) Right to Information

1. (C) Give one word/phrase/term for the following statement

Question 1.
The commission which entertains case where the value of the goods or services paid as consideration does not exceed Rs one crore.
Answer:
District Commission

Question 2.
A legal action initiated in a court of law regarding a matter of general public interest.
Answer:
Public Interest Litigation

Question 3.
Organizations which aim at promoting the welfare of the people.
Answer:
Non-Government Organizations

Question 4.
The right of consumer which is about safety and protection to his life and health.
Answer:
Right to Safety

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 5.
One who consumes or uses any commodity or service.
Answer:
Consumer.

1. (D) State whether the following statements are True or False

Question 1.
The seller has to recognize the rights of Consumer.
Answer:
True

Question 2.
Consumer Protection Act provides protection to the producer.
Answer:
False

Question 3.
Consumer Protection Act is not required in India.
Answer:
False

Question 4.
Lok Adalat cam righty be described as “People’s Court”.
Answer:
True

Question 5.
Consumer, being the king of market, does not have any responsibility.
Answer:
False

1. (E) Find the odd one

Question 1.
District Commission, State Commission, NGO, National Commission.
Answer:
NGO

Question 2.
District Judge, High Court Judge, Commissioner, Supreme Court Judge.
Answer:
Commissioner

1. (F) Complete the sentences

Question 1.
National Commission is to be established by ………………. Government.
Answer:
Centred

Question 2.
Any person who does not agree with the decision of District Commission can appeal to the ……………….
Answer:
State Commission

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 3.
State commission has ……………….. members.
Answer:
four

Question 4.
The President of National Commission is ………………. judge.
Answer:
Supreme Court

Question 5.
National Commission entertains complaints of consumer for compensation that exceeds Rs ………………
Answer:
ten crore

Question 6.
The Consumer Protection Act established ………………… tier quasi judicial system for consumer protection.
Answer:
three

1. (G) Select the correct option and complete the following table

(High Court Judge, Four, Consumer Organisations, does not exceeds Rs one crore, 2019)

Group A Group B
A. Amount of compensation in District Commission —————
B. ———————- State Commission
C. Consumer Protection Act ——————
D. ——————— Non-profit and non Political organisation
E. Members of National Commission ——————-

Answer:

Group A Group B
A. Amount of compensation in District Commission Does not exceed Rs one crore
B. High Court Judge State Commission
C. Consumer Protection Act 2019
D. Consumer Organisations Non-profit and non Political organisation
E. Members of National Commission 4

1. (H) Answer in one sentence

Question 1.
When do we observe a National Consumer Day?
Answer:
On 24th December every year we observe a National Consumer Day.

Question 2.
Who is a consumer?
Answer:
A consumer means any person who buys any goods, hires any service or services for a consideration which has been paid or promised to be paid in future or under any system of deferred payment.

Question 3.
What information should one check before buying a product?
Answer:
Before buying a product the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

Question 4.
Which forum is set up at the national level for redressal of consumer complaints?
Answer:
National Consumer Disputes Redressal Commission or National Commission is set up at the national level for redressal of consumer complaints.

Question 5.
Who shall be appointed as President of National Commission?
Answer:
A person, who is or has been a Judge of the Supreme Court, shall be appointed by the Central Government as the President of National Commission in consultation with Chief Justice of India.

Question 6.
When do we observe World Consumer’s Rights Day?
Answer:
On 15th March every year we observe World Consumer’s Rights Day.

1. (I) Arrange in proper order

Question 1.
National Commission, District Commission, State Commission.
Answer:
District Commission, State Commission, National Commission.

Question 2.
District Judge, Supreme Court Judge, High Court Judge.
Answer:
District Judge, High Court Judge, Supreme Court Judge.

1. (J) Correct the underlined word and rewrite the sentence

Question 1.
An appeal can be filed against the order of the National Commission to the State forum.
Answer:
Supreme Court

Question 2.
National Commission is established by the State Government.
Answer:
Central Government

Question 3.
District Commission is also referred as People’s Court.
Answer:
Lok Adalat

Question 4.
In India, sellers are widely dispersed and are not united.
Answer:
consumers

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 5.
National Commission entertains complaints where the value of the goods or services paid as consideration does not exceed Rs one crore.
Answer:
District Commission.

2. Explain the following term/concept:

Question 1.
District Commission.
Answer:
(1) Meaning : A consumer redressal agency established by the State Government in each district to give relief or settle the disputes of consumers who complain against manufacturers or traders, is called District Commission.

(2) Territorial Jurisdiction : District Commission can exercise its jurisdiction within the limits of its district.

(3) Monetary jurisdiction : District Commission has the jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, does not exceed Rs 1 crore.

(4) Appeal : Any person not satisfied with the order of District Commission can appeal against it to the State Commission within 45 days from the date of the order in such form and manner may be prescribed.

Question 2.
National Commission.
Answer:
Meaning : A consumer disputes redressal agency at the national level established by the Central Government by notification is known as National Commission. It is also called as National Consumer Disputes Redressal Commission.

Composition : The National Commission shall consist of:
(a) President: A person who is or has been a Judge of the Supreme Court to be appointed by the Central Government as President of National Commission. Such appointment shall be made after consultation with the Chief Justice of India.

(b) Tenure : Every member of the National Commission shall hold office for a term of 5 years or up to the age prescribed whichever is earlier.

Question 3.
State Commission.
Answer:
Meaning : A consumer disputes redressal agency at state level established by each State Government is known as State Commission.

Composition : Each State Commission shall consist of:
(a) President : A person who is or has been a Judge of a High Court, shall be appointed by the State Government as the president of the State Commission in consultation with the Chief Justice of the High Court.

(b) Members : The number of other members shall not be less than 4 or not more than such number of members as may be prescribed in consultation with the Central Government.

(c) Tenure : Every member of the state commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.

Question 4.
Lok Adalat.
Answer:
Lok Adalat : Lok Adalat, i.e. People’s Court is established by the government to settle the disputes by compromise. It is the effective and economical system for quick redressal of public complaints and grievances. In this system the aggrieved party can directly approach the Lok Adalat with his complaint. In Lok Adalat, issues are discussed immediately and decisions are taken without delay.

The order passed by the Lok Adalat is given statutory recognition. In public sector, some organisations such as Railways, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL). Maharashtra State Road Transport Corporation (MSRTC), Insurance Companies, Banks, etc. regularly hold Lok Adalat to resolve consumer’s problems through compromise.

Question 5.
Janhit Yachika.
Answer:
Public Interest Litigation (Janahit Yachika) : As name indicates it is a legal action initiated in a court of law in regard to a matter of general public interest. Under this, any person can approach a court of law in the interest of the public and ask for justice. It does not involve individual interest but interest of unrepresented groups of the society. After studying and verifying the case, the court gives justice which will benefit the specific group of society or entire society. It can be filed by any party which may not be related to grievance. In some cases Janahit Yachika can be filed in the High Court as well as in Supreme Court directly.

3. Study the following case/situation and express your opinion

Question 1.
Mr. Ashok visited a shop to buy a pair of shoes for Rs 700. The salesman forced him to buy a pair of bigger size shoes of ordinary company by claiming this size would be suitable to him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite of availability of stock. In above case-
(i) Which right has been violated?
(ii) Comment on the right which has been violated.
(iii) Where can Mr. Ashok file his complaint?
Answer:
(i) In the above case, Right to Choose has been violated.

(ii) In India, the choices are available to consumers to select goods and different services like telecommunications, travel and tourism, banking, electronics, consumer goods, etc. According to right to choose, consumer should be given full liberty j to select an article as per his requirements, liking and purchasing capacity. The seller cannot force or compel the customer to buy specific product or service In this manner monopoly is avoided and j prevented.

(iii) According to the Right to be Heard, Mr. Ashok can lodge complaint to the consumer forum. Mr Ashok can also file online complaint through portal or mobile applications to the trader as well as to the appropriate consumer commission or forum.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 2.
Mrs. Meera a resident of Nagpur District bought a washing machine worth Rs 50,000 without cash memo with a warranty period of 2 years. After 1.5 years she noticed some defect and asked the company to repair or replace it. The company did not accept her complaint despite of the defective product.
In the above case,
(i) Suggest suitable redressal machinery to protect her right.
(ii) If she is not satisfied with the decision given by redressal machinery, where should she appeal?
(iii) What was the negligence of Mrs. Meera while buying the washing machine?
Answer:
(i) According to Right to Redressal, Mrs. Meera should file complaint for fair settlement of claim. This right enables Mrs. Meera to demand repair or replacement or compensation for defective product i.e., in above case washing machine supplied. Three tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claim. Mrs. Meera can file complaint in District Commission established in her district as the value of machinery does not exceed Rs 1 crore.

(ii) If Mrs. Meera is not satisfied with the order or judgement given by District Commission, then she can appeal against such order to State Commission within 45 days from the date of such order, in such form and manner as may be prescribed.

(iii) Mrs. Meera did not collect or ask for cash memo and guarantee/warranty card for a period of 2 years as soon as she purchased the washing machine worth Rs 50,000.

4. Distinguish between

Question 1.
District Commission and State Commission
Answer:

District Commission State Commission
1. Meaning A consumer disputes redressal agency at the district level established by the State Government is known as District Commission. A consumer disputes redressal agency at the state level established by the State Government is known as State Commission.
2. President A person who is or retired or qualified as a judge of a district court is appointed as president of the. District Commission. A person who is or retired as a judge of a High Court is appointed as president of State Commission
3. Membership tenure Every member of District Commission shall hold office for a term of 5 years or up to the age of 65 years whichever is earlier. Every member of State Commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.
4. Area covered It has jurisdiction over a particular District. It has jurisdiction over a particular State.
5. Monetary jurisdiction It has the jurisdiction to entertain complaints where the value of goods or services, including compensation, if any, does not exceed Rs 1 crore. It has the jurisdiction to entertain complaints where the value of goods or services, including compensation, if any, exceeds Rs 1 crore but does not exceed Rs 10 crore.
6. Appeal Any person not satisfied with the order of District Commission can appeal against such order to the State Commission within 30 days of the order. Any person not satisfied with the order of the State Commission can appeal against such order to the National Commission within 30 days of the order.

Question 2.
State Commission and National Commission
Answer:

State Commission National Commission
1. Meaning A consumer disputes redressal agency at the state level established by each State Government is known as State Commission. A consumer disputes redressal agency at the national level established by the Centred Government is known as National Commission.
2. President A person who is or retired or qualified as a judge of a High Court is appointed as president of State Commission. A person who is or retired as a judge of a Supreme Court is appointed as president of National Commission.
3. Membership Tenure Every member of District Commission shall hold office for a term of 5 years or up to the age of 65 years whichever is earlier. Every member of State Commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.
4. Area covered It has jurisdiction over a particular State. It has jurisdiction over the entire nation
5. Monetary jurisdiction It has the jurisdiction to entertain complaints where the value of goods or services, including compensation, if any, exceeds Rs 1 crore, but does not exceed Rs 10 crore It has the monetary jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, exceeds Rs 10 crore.
6. Appeal Any person not satisfied with the order of District Forum can appeal against such order to the State Commission within 30 days of the order. Any person not satisfied with the order of the National Commission may appeal against such order to the Supreme Court within a period of 30 days from the date of the order.

Question 3.
District Commission and National Commission
Answer:

District Commission National Commission
1. Meaning A consumer disputes redressal agency at the district level established by the State Government is known as District Commission. A consumer disputes redressal agency at the national level established by Central Government is known as National Commission.
2. Nature of complaint It can entertain only original cases which are within the local limits of district. It can entertain original cases as well as appeals against the order of State Commission which are within the geographical limits of the entire nation.
3. Membership Tenure Every member of District Forum shall hold office for a term of 5 years or up to the age of 65 years whichever is earlier Every member of National Commission shall hold office for a term of 5 years or up to the age prescribed whichever is earlier.
4. Area covered It has jurisdiction over a particular district. It has jurisdiction over the entire nation.
5. Monetary jurisdiction It has the jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, does not exceed Rs 1 crore. It has the jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, exceeds Rs 10 crore.
6. Appeal Any person not satisfied with the order of District Commission can appeal against such order to the State Commission within 30 days of the order. Any person not satisfied with the order of National Commission can appeal against such order to the Supreme Court within a period of 30 days from the date of the order.

5. Answer in brief

Question 1.
Explain any four needs of consumer protection.
Answer:
The need of consumer protection is explained as follows:
(1) Need of participation of consumers : It is noticed that most of the organisations or manufacturing companies take certain decisions which directly or indirectly affect the consumers’ interest without consulting them or their organisations. This leads to consumer exploitation. Only a Strong consumers’ organisation can force business organisations to allow consumers to participate in the decision-making process.

(2) Lack of information : Today consumers live in a dynamic and complex world. Due to vast distance between manufacturer and consumer, it is very difficult to establish direct contact between them. Now market is fully flooded with domestic as well as foreign products due to globalisation and liberalisation. However, it is very difficult for the consumer to get correct and reliable information about the products before they are purchased. He has to rely on trial and error method or on advertisements. In both the cases chances of consumer exploitation cannot be denied.

(3) Ignorance : One of the important causes of consumer exploitation is ignorance of consumers. In India, consumers are mostly ignorant about their rights, market conditions, price levels, product details, etc. Many a time consumers are not aware that they are being cheated by the sellers. An appropriate system is required to protect consumers from business malpractices.

(4) Unorganised consumers : The consumers are widespread and unorganised. Moreover, they are not united. Hence, they are easily exploited by the producers and sellers. Sellers are in better position as compared to unorganised consumers. An individual consumer cannot fight against the powerful manufacturers or sellers.

Question 2.
State any four rights of the consumer.
Answer:
The rights of consumers are explained as follows:
(1) Right to Safety : The right to safety means the right to be protected against products, production processes and services which are hazardous to consumer’s lives or health and property. It includes consumer’s long term interest and immediate requirements. This right demands that consumer must get full safety and protection to his/her life and health in relation to medicines, food, electrical appliances, etc. AGMARK, ISI – Indian Standard Institute, BIS – Bureau of Indian standards, Hallmark, etc. are the safety standards prescribed by the Government of India (GOI).

(2) Right to Information : The consumer has a right to get correct and adequate information of all aspects of goods and services like price, name of manufacturer, contents used, batch number, date of manufacture and expiry date, use manual and safety instructions, etc. This information helps the consumers to make right choice of goods and services. This right is applicable to medicines, food products, spare parts and other consumer products or services.

(3) Right to Choose : According to this right, the consumer has full freedom to select or choose the product or service as per his/her liking, requirement and purchasing capacity. The seller cannot force a consumer to purchase a particular product. This right aims at removing monopoly. The choices available to consumers in India include goods and different services such as telecommunications, travel and tourism, banking, electronics, Fast Moving Consumer Goods (FMCG) etc.

(4) Right to Be Heard : It is the responsibility of every business organisation to listen and solve difficulties, complaints and grievances of the consumers. This right gives an opportunity to the consumers to express and voice their complaints to the consumer forum. The consumers also have rights to give suggestions to the manufacturer as well as to the trader on the quality, quantity, price, packaging, etc. of the products they use. Nowadays consumers can file online complaints through portal or mobile applications.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 3.
Explain any four responsibilities of the consumer.
Answer:
The responsibilities of the consumer are explained as follows:
(1) Consumer should use his rights : The consumers have many rights in respect to the goods and services they purchase. They must be aware of their rights while buying the products. They can use their rights if they are misled by advertisement or get faulty or defective articles.

(2) Cautious consumer : The consumers should be alert while dealing with the trader. They should be aware of their responsibilities while buying goods and services. Before buying any product or service, the consumer should make detail enquiry about the quality, quantity available, price, date of manufacture, expiry date, utility of goods and services, etc.

(3) Filing of complaint : If consumer has complaint about the products or services he has purchased, he should immediately approach the officer concerned and lodge complaints about the products or services. A delay in making complaints loses the rights and results in expiry of guarantee or warranty. If consumers ignore the dishonest acts of the traders, it may indirectly amount to encouragement to unethical business practices.

(4) Quality conscious : It is the responsibility of the consumers to buy quality goods. They should never compromise on the quality of goods. They should never buy inferior goods out of greed at lesser prices. For such behaviour of consumers, there is no protection. It is the responsibility of the consumer to ensure about the quality symbols like, ISI, AGMARK, Hallmark, Fruit Products Order (FPO), Food Safety and Standards Authority of India (FSSAI), etc. These are indicative of the good quality of the goods.

Question 4.
State the role of NGO in consumer protection.
Answer:
The role of Non-Government Organisations (NGOs) in consumer protection is explained as follows:
(1) NGOs organise campaigns and various programmes on consumer issues to create social awareness.

(2) They initiate and organise training i programmes for the consumers and make them : aware and conscious of their rights and various modes of redressal of their grievances.

(3) They publish journals and periodicals at regular interval to make the consumers understand and keep them informed about various consumer ) related developments.

(4) They provide legal advice free of charge to the members on the matters of consumer interest and help them to put up grievances before appropriate authority.

(5) NGO’s active members interact (communicate) with the businessmen and Chambers of Commerce and Industry for ensuring better deal for the consumers.

6. Justify the following statements

Question 1.
The Consumer Protection Act was passed in the interest of consumers.
Answer:
(1) The Consumer Protection Act came into force from 1986. Thereafter the Ministry of Law and Justice proposed new act in 2019. The Act has for the first time recognised six rights of the consumer:

  • the right to be protected against marketing of hazardous goods
  • the right to be informed about the price and features of goods
  • the right to make a choice out of a variety of goods
  • the right to make a complaint against unsatisfactory goods
  • the right to seek redressal against unfair trade practices
  • the right to consumer education. All the above rights are in the interest of the consumer and not the seller.

(2) The Act has made provision for the establishment of Consumer Protection Councils at the central and state levels for promoting and protecting these rights.

(3) The Act has created a quasi-judicial machinery consisting of the District Commission, State Commission and National Commission to entertain complaints and to give fair justice to the aggrieved consumers. The Act prescribes punishment of imprisonment not less than one month which may extend to 3 years and a fine which shall not be less than ? 25,000 which may extend to Rs 1 lakh or with both for guilty person.

(4) The strict enforcement of these rights creates a competition among the sellers. Consequently, the consumers get quality goods at fair prices. The government has also adopted various measures for creating public awareness about the rights of consumers. Various programmes are shown on television channels as well as programmes are broadcasted by All India to educate consumers.

Question 2.
Consumers have many responsibilities.
Answer:
The responsibilities of the consumer are explained as follows:
(1) Consumer should use his rights : The consumers have many rights in respect to the goods and services they purchase. They must be aware of their rights while buying the products. They can use their rights if they are misled by advertisement or get faulty or defective articles.

(2) Cautious consumer : The consumers should be alert while dealing with the trader. They should be aware of their responsibilities while buying goods and services. Before buying any product or service, the consumer should make detail enquiry about the quality, quantity available, price, date of manufacture, expiry date, utility of goods and services, etc.

(3) Filing of complaint : If consumer has complaint about the products or services he has purchased, he should immediately approach the officer concerned and lodge complaints about the products or services. A delay in making complaints loses the rights and results in expiry of guarantee or warranty. If consumers ignore the dishonest acts of the traders, it may indirectly amount to encouragement to unethical business practices.

(4) Quality conscious : It is the responsibility of the consumers to buy quality goods. They should never compromise on the quality of goods. They should never buy inferior goods out of greed at lesser prices. For such behaviour of consumers, there is no protection. It is the responsibility of the consumer to ensure about the quality symbols like, ISI, AGMARK, Hallmark, Fruit Products Order (FPO), Food Safety and Standards Authority of India (FSSAI), etc. These are indicative of the good quality of the goods.

(5) Beware from exaggerated advertisement: The sellers always provide various information of the products or services through advertisements to buyers. Many a time they exaggerate the facts in their advertisements. It is the responsibility of the consumers to find out or identify the truth of advertisement and then buy the products, or services.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 3.
Aim of consumer organization is to protect the rights of the consumers.
Answer:
The role of Non-Government Organisations (NGOs) in consumer protection is explained as follows:
(1) NGOs organise campaigns and various programmes on consumer issues to create social awareness.

(2) They initiate and organise training i programmes for the consumers and make them : aware and conscious of their rights and various modes of redressal of their grievances.

(3) They publish journals and periodicals at regular interval to make the consumers understand and keep them informed about various consumer ) related developments.

(4) They provide legal advice free of charge to the members on the matters of consumer interest and help them to put up grievances before appropriate authority.

(5) NGO’s active members interact (communicate) with the businessmen and Chambers of Commerce and Industry for ensuring better deal for the consumers.

(6) They file Public Interest Litigation (Janhit Yachika) on important consumer issues like ban on a product or medicine injurious to public health. They also file cases in the court of law to safeguard the rights and protect the interest of general public.

(7) Few examples of NGOs working for the consumers are : Consumer Guidance Society of India (CGSI), Voluntary Organisation in Interest of Consumer Education (VOICE), Consumer Education and Research Centre (CERC), Consumers Association of India (CAI), Mumbai Grahak Panchayat (MGP), Grahak Shakti (GS), etc.

7. Attempt the following

Question 1.
State rights of the consumer.
Answer:
The rights of consumers are explained as follows:
(1) Right to Safety : The right to safety means the right to be protected against products, production processes and services which are hazardous to consumer’s lives or health and property. It includes consumer’s long term interest and immediate requirements. This right demands that consumer must get full safety and protection to his/her life and health in relation to medicines, food, electrical appliances, etc. AGMARK, ISI – Indian Standard Institute, BIS – Bureau of Indian standards, Hallmark, etc. are the safety standards prescribed by the Government of India (GOI).

(2) Right to Information : The consumer has a right to get correct and adequate information of all aspects of goods and services like price, name of manufacturer, contents used, batch number, date of manufacture and expiry date, use manual and safety instructions, etc. This information helps the consumers to make right choice of goods and services. This right is applicable to medicines, food products, spare parts and other consumer products or services.

(3) Right to Choose : According to this right, the consumer has full freedom to select or choose the product or service as per his/her liking, requirement and purchasing capacity. The seller cannot force a consumer to purchase a particular product. This right aims at removing monopoly. The choices available to consumers in India include goods and different services such as telecommunications, travel and tourism, banking, electronics, Fast Moving Consumer Goods (FMCG) etc.

(4) Right to Be Heard : It is the responsibility of every business organisation to listen and solve difficulties, complaints and grievances of the consumers. This right gives an opportunity to the consumers to express and voice their complaints to the consumer forum. The consumers also have rights to give suggestions to the manufacturer as well as to the trader on the quality, quantity, price, packaging, etc. of the products they use. Nowadays consumers can file online complaints through portal or mobile applications.

(5) Right to Consumer Education : The consumers have right to know about consumer rights and solutions to their problems. This is to create awareness among the consumers to make rational choice of goods and services and to protect themselves from the exploitation of unscrupulous (dishonest) businessmen. In this regard, the government, media and various Non-Government Organisations (NGOs) can play an important role to create awareness among the consumers and to educate them, e.g. Jago Grahak Jago campaign.

(6) Right to Represent : The Consumer Protection Act, 2019 gave an opportunity to individual consumer as well as to consumer groups to be represented by a person who is not professional advocate for consumer’s interest or complaint before consumer forum. This provision made in the Act in recognition of consumers’ right to represent.

Question 2.
State responsibilities of the consumer.
Answer:
The responsibilities of the consumer are explained as follows:
(1) Consumer should use his rights : The consumers have many rights in respect to the goods and services they purchase. They must be aware of their rights while buying the products. They can use their rights if they are misled by advertisement or get faulty or defective articles.

(2) Cautious consumer : The consumers should be alert while dealing with the trader. They should be aware of their responsibilities while buying goods and services. Before buying any product or service, the consumer should make detail enquiry about the quality, quantity available, price, date of manufacture, expiry date, utility of goods and services, etc.

(3) Filing of complaint : If consumer has complaint about the products or services he has purchased, he should immediately approach the officer concerned and lodge complaints about the products or services. A delay in making complaints loses the rights and results in expiry of guarantee or warranty. If consumers ignore the dishonest acts of the traders, it may indirectly amount to encouragement to unethical business practices.

(4) Quality conscious : It is the responsibility of the consumers to buy quality goods. They should never compromise on the quality of goods. They should never buy inferior goods out of greed at lesser prices. For such behaviour of consumers, there is no protection. It is the responsibility of the consumer to ensure about the quality symbols like, ISI, AGMARK, Hallmark, Fruit Products Order (FPO), Food Safety and Standards Authority of India (FSSAI), etc. These are indicative of the good quality of the goods.

(5) Beware from exaggerated advertisement: The sellers always provide various information of the products or services through advertisements to buyers. Many a time they exaggerate the facts in their advertisements. It is the responsibility of the consumers to find out or identify the truth of advertisement and then buy the products, or services.

(6) Demand of Invoice and Guarantee, Warranty Card : After purchasing the products, the consumer should ask for cash memo, guarantee or warranty card. The consumer should read and understand the contents of guarantee or warranty card. He should preserve the cash memo and guarantee or warranty card. If the products purchased are of inferior quality or become defective these cards are useful to settle the disputes and claim compensation or replacement of articles.

(7) Pre-planned buying : It is the responsibility of the consumer to make proper planning before buying any product. He should make an estimate of products they want to buy and quantity required, money to spend, etc. He should also decide in advance from which place to buy the products. He should not buy any product in a hurry or without thought.

(8) Organised efforts : The consumer is expected to shoulder the responsibility to promote and protect the interests of his own and other consumers. He should join the group or organisation which is working for the welfare of consumers. It is the responsibility of every consumer to unite for the welfare of all the consumers.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 3.
State the need of consumer protection.
Answer:
The need of consumer protection is explained as follows:
(1) Need of participation of consumers : It is noticed that most of the organisations or manufacturing companies take certain decisions which directly or indirectly affect the consumers’ interest without consulting them or their organisations. This leads to consumer exploitation. Only a Strong consumers’ organisation can force business organisations to allow consumers to participate in the decision-making process.

(2) Lack of information : Today consumers live in a dynamic and complex world. Due to vast distance between manufacturer and consumer, it is very difficult to establish direct contact between them. Now market is fully flooded with domestic as well as foreign products due to globalisation and liberalisation. However, it is very difficult for the consumer to get correct and reliable information about the products before they are purchased. He has to rely on trial and error method or on advertisements. In both the cases chances of consumer exploitation cannot be denied.

(3) Ignorance : One of the important causes of consumer exploitation is ignorance of consumers. In India, consumers are mostly ignorant about their rights, market conditions, price levels, product details, etc. Many a time consumers are not aware that they are being cheated by the sellers. An appropriate system is required to protect consumers from business malpractices.

(4) Unorganised consumers : The consumers are widespread and unorganised. Moreover, they are not united. Hence, they are easily exploited by the producers and sellers. Sellers are in better position as compared to unorganised consumers. An individual consumer cannot fight against the powerful manufacturers or sellers.

(5) Spurious Goods : The consumers also face a major problem of duplicate goods. Some traders cheat the consumers by supplying them duplicate or defective goods of the popular brands. It is not possible for the consumers to find difference between genuine and duplicate product. It is therefore necessary to protect the consumers from such exploitation by fixing prescribed norms of quality and safety standards.

(6) Misleading advertising : Sometimes the advertisements of goods and services shown on television, in newspapers and magazines are misleading. They make tall claims about the benefits of the products but do not disclose the drawbacks. Most of the consumers are misled by the misleading advertisement and do not know the real and true quality of advertised products. Appropriate system or mechanism is required to prevent misleading advertisements.

(7) Malpractices of Businessmen : Many businessmen adopt fraudulent, unethical and monopolistic trade practices to earn more money. This leads to exploitation of consumers. Some times consumers get defective, inferior and substandard goods and services. Appropriate measures are necessary to protect the consumers against such malpractices.

(8) Trusteeship : The Gandhian philosophy states that businessmen are the trustees of the society’s wealth. So they should not misuse the society’s wealth for their own benefits. They should use the wealth of the society for the benefit of the people.

Question 4.
State the role of NGOs and consumer protection.
Answer:
The role of Non-Government Organisations (NGOs) in consumer protection is explained as follows:
(1) NGOs organise campaigns and various programmes on consumer issues to create social awareness.

(2) They initiate and organise training i programmes for the consumers and make them : aware and conscious of their rights and various modes of redressal of their grievances.

(3) They publish journals and periodicals at regular interval to make the consumers understand and keep them informed about various consumer ) related developments.

(4) They provide legal advice free of charge to the members on the matters of consumer interest and help them to put up grievances before appropriate authority.

(5) NGO’s active members interact (communicate) with the businessmen and Chambers of Commerce and Industry for ensuring better deal for the consumers.

(6) They file Public Interest Litigation (Janhit Yachika) on important consumer issues like ban on a product or medicine injurious to public health. They also file cases in the court of law to safeguard the rights and protect the interest of general public.

(7) Few examples of NGOs working for the consumers are : Consumer Guidance Society of India (CGSI), Voluntary Organisation in Interest of Consumer Education (VOICE), Consumer Education and Research Centre (CERC), Consumers Association of India (CAI), Mumbai Grahak Panchayat (MGP), Grahak Shakti (GS), etc.

Question 5.
State the composition and monetary jurisdiction of district commission.
Answer:
Composition : Each District Commission shall consist of-

  • President : A person who is or has been a .judge of a district court is appointed as president
    of the District Commission.
  • Members : The number of other members shall not be less than 2 and not more than such number of members as may be prescribed in consultation with the Central Government.
  • Tenure : President and every member of the District Commission shall hold office for a term of 5 years or up to the age of 65 years whichever is earlier.

Monetary jurisdiction : District Commission has the jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, does not exceed Rs 1 crore.

Question 6.
State the composition and monetary jurisdiction of state commission.
Answer:
(2) Composition : Each State Commission shall consist of:

  • President : A person who is or has been a Judge of a High Court, shall be appointed by the State Government as the president of the State Commission in consultation with the Chief Justice of the High Court.
  • Members : The number of other members shall not be less than 4 or not more than such number of members as may be prescribed in consultation with the Central Government.
  • Tenure : Every member of the state commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.

Monetary Jurisdiction : To entertain complaints where the value of the goods or services and compensation exceeds Rs 1 crore but is not more than Rs 10 crore.

Question 7.
State the composition and monetary jurisdiction of national commission.
Answer:
Composition : The National Commission shall consist of:
(a) President: A person who is or has been a Judge of the Supreme Court to be appointed by the Central Government as President of National Commission. Such appointment shall be made after consultation with the Chief Justice of India.
(b) Tenure : Every member of the National Commission shall hold office for a term of 5 years or up to the age prescribed whichever is earlier.

Monetary Jurisdiction : To entertain the complaints where the value of the goods or services and compensation exceeds Rs 10 crore.

8. Answer the following

Question 1.
Who is Consumer? Explain the rights of the consumers.
Answer:
[A] Meaning : The word ‘consumer’ is derived from the Latin word ‘consumere’ which means ‘to eat or drink’. Accordingly consumer is one who consumes or uses any product or service available to him either from nature or through market. In other words, a consumer means any person who buys any product, hires any service or services for certain consideration in exchange of money which has been paid or promised to be paid in future for consumption or use and not for resale. For instance, if a businessman purchases furniture for selling it to the buyers, he is not a consumer. But if he buys a sofa set for his own use in his house, he becomes a consumer. We are all consumers when we use or consume foodgrains or use services like railways, hospitals, banks, etc.

[B] Rights of the Consumers : The rights of the consumers are shown:
Consumer Rights:

  1. Right to Safety
  2. Right to Information
  3. Right to Choose
  4. Right to be Heard
  5. Right to Consumers Education
  6. Right to Represent
  7. Right to Redress
  8. Right to Healthy
  9. Environment
  10. Right to Protect from Unfair Business Practices
  11. Right against Spurious Goods

The rights of consumers are explained as follows:
1. Right to Safety : The right to safety means the right to be protected against products, production processes and services which are hazardous to consumer’s lives or health and property. It includes consumer’s long term interest and immediate requirements. This right demands that consumer must get full safety and protection to his/her life and health in relation to medicines, food, electrical appliances, etc. AGMARK, ISI – Indian Standard Institute, BIS – Bureau of Indian standards, Hallmark, etc. are the safety standards prescribed by the Government of India (GOI).

2. Right to Information : The consumer has a right to get correct and adequate information of all aspects of goods and services like price, name of manufacturer, contents used, batch number, date of manufacture and expiry date, use manual and safety instructions, etc. This information helps the consumers to make right choice of goods and services. This right is applicable to medicines, food products, spare parts and other consumer products or services.

3. Right to Choose : According to this right, the consumer has full freedom to select or choose the product or service as per his/her liking, requirement and purchasing capacity. The seller cannot force a consumer to purchase a particular product. This right aims at removing monopoly. The choices available to consumers in India include goods and different services such as telecommunications, travel and tourism, banking, electronics, Fast Moving Consumer Goods (FMCG) etc.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

4. Right to Be Heard : It is the responsibility of every business organisation to listen and solve difficulties, complaints and grievances of the consumers. This right gives an opportunity to the consumers to express and voice their complaints to the consumer forum. The consumers also have rights to give suggestions to the manufacturer as well as to the trader on the quality, quantity, price, packaging, etc. of the products they use. Nowadays consumers can file online complaints through portal or mobile applications.

5. Right to Consumer Education : The consumers have right to know about consumer rights and solutions to their problems. This is to create awareness among the consumers to make rational choice of goods and services and to protect themselves from the exploitation of unscrupulous (dishonest) businessmen. In this regard, the government, media and various Non-Government Organisations (NGOs) can play an important role to create awareness among the consumers and to educate them, e.g. Jago Grahak Jago campaign.

6. Right to Represent : The Consumer Protection Act, 2019 gave an opportunity to individual consumer as well as to consumer groups to be represented by a person who is not professional advocate for consumer’s interest or complaint before consumer forum. This provision made in the Act in recognition of consumers’ right to represent.

7. Right to Redress : Right to redress implies fair settlement, just and reasonable claims of the consumers. In other words, consumer has the right to receive a fair amount of compensation or get the articles replaced or repaired free of cost for defective products and for poor services received from the manufacturer or trader. It is done through the Consumer Protection Act, 1986 under which District Commission, State Commission and National Commission are established. Thus, consumers are protected from cheating and malpractices.

8. Right to Healthy Environment: A consumer has a right to have a clean and healthy physical environment which is badly affected by pollution of noise, air and water. This is the direct effect of speedy industrialisation. Certain industries like chemicals, fertilisers, etc., add considerably to the pollution. As per this right, consumer can demand actions against such business organi¬sations. Businessmen and companies must take suitable measures to control pollution. All consumers have right to clean and healthy environment in present as well as in the future.

9. Right to Protect against Unfair Business Practices : This right protects the consumers against any kind of unfair business practices. The consumers have right to reuse the voice against the unfair business practices adopted by any trader e.g. using false measurement (weights), hoarding or stocking products to create artificial scarcity, black marketing, profiteering, adulteration, charging exorbitant high prices, selling goods after their expiry dates, etc.

10. Right against Spurious Goods : This right is against the marketing of goods which are health hazards, spurious (false or not genuine) and pose a danger to life itself. This right protects public health and life.

Question 2.
Explain the ways and means of Consumer Protection.
Answer:
The ways and means of consumer protection are stated as follows:

  1. Lok Adalat (People’s Court)
  2. Public Interest Litigation (Janhit Yachika)
  3. Redresssl Forums
  4. Awareness Programmes
  5. Consumer Organisations
  6. Consumer Welfare Fund
  7. Legislative Measures

1. Lok Adalat : Lok Adalat, i.e. People’s Court is established by the government to settle the disputes by compromise. It is the effective and economical system for quick redressal of public complaints and grievances. In this system the aggrieved party can directly approach the Lok Adalat with his complaint. In Lok Adalat, issues are discussed immediately and decisions are taken without delay. The order passed by the Lok Adalat is given statutory recognition. In public sector, some organisations such as Railways, Maharashtra State Electricity Distribution Co. Ltd (MSEDCL). Maharashtra State Road Transport Corporation (MSRTC), Insurance Companies, Banks, etc. regularly hold Lok Adalat to resolve consumer’s problems through compromise.

2. Public Interest Litigation (Janahit Yachika) : As name indicates it is a legal action initiated in a court of law in regard to a matter of general public interest. Under this, any person can approach a court of law in the interest of the public and ask for justice. It does not involve individual interest but interest of unrepresented groups of the society. After studying and verifying the case, the court gives justice which will benefit the specific group of society or entire society. It can be filed by any party which may not be related to grievance. In some cases Janahit Yachika can be filed in the High Court as well as in Supreme Court directly.

3. Redressal Forums : Under the Consumer Protection Act, 2019, Consumer Dispute Redressal agencies have been established by the Government to protect the rights of consumers and to offer speedy and inexpensive redressal for their complaints. These agencies are District Commission at district level. State Commission at state level and National Commission at national level. Any aggrieved consumer or association of consumers can file a complaint with respective commission depending on the value of goods and amount of claim for compensation.

4. Awareness Programmes : The Government of India has initiated various publicity measures such as use of journals, brochures, booklets and various posters depicting the rights and responsibilities of consumers redressal machineries, i.e. consumer courts, observation of International (World) Consumer Rights Day on 15th March and National Consumer Day on 24th December every year to create awareness among the consumers about their rights and responsi¬bilities. Various consumer related programmes are also telecast on various TV channels and broadcasted on radio, FM channels and social media to create awareness among the consumers.

5. Consumer Organisations : Many consumer organisations such as Consumer Guidance Society of India, Grahak Panchayat, Grahak Shakti, Consumers’ Association, etc., are active throughout India to fight for consumers’ rights through protest, campaigning, lobbying, etc. Consumer movement is also well active in India and helps individuals to get quick and adequate compensation and justice for their grievances. It is also necessary to strengthen consumer movement throughout India.

6. Consumer Welfare Fund (CWF) : This fund is created by the Department of Consumer Affairs for providing financial help to voluntary consumer movement specially in rural areas. This financial assistance is used for training and research in consumer education, complaint handling, counselling and guidance mechanism, product testing labs, etc.

7. Legislative Measures : The Government of India has passed several acts such as Sale of Goods Act, 1930; Essential Commodities Act, 1955; the Standards of Weights and Measures Act, 1956; Bureau of Indian Standards Act, 1969; Food Safety and Standards Act, 2006; National Food Security Act, 2013, etc. to protect the interest of consumers from unethical practices of businessmen.

However, these laws could not protect the consumers as such and therefore the Government of India has passed a powerful Act known as Consumer Protection Act, 2019 to protect the interest of consumers.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

Question 3.
Explain the three tier quasi-judicial machinery under the Act.
Answer:
The Consumer Protection Act, 2019
provides for three-tier quasi-judicial machinery as follows:

  1. District Commission
  2. State Commission
  3. National Commission

1. District Commission :
A. Meaning : A consumer redressal agency established by the State Government in each district to give relief or settle the disputes of consumers who complain against manufacturers or traders, is called District Commission.

B. Composition : Each District Commission shall consist of-

  • President : A person who is or has been a .judge of a district court is appointed as president
    of the District Commission.
  • Members : The number of other members shall not be less than 2 and not more than such number of members as may be prescribed in consultation with the Central Government.
  • Tenure : President and every member of the District Commission shall hold office for a term of 5 years or up to the age of 65 years whichever is earlier.

C. Qualifications : The members of a District Commission shall have the following qualifications :

  • Age : The age of each member should not be less than 35 years.
  • Education : They should possess a Bachelor’s Degree from a recognised University.
  • Experience : Members should have adequate knowledge and experience of at least 10 years in dealing with problems related to economics, law, commerce, accountancy, industries, public affairs or administration.

D. Territorial Jurisdiction : District Commission can exercise its jurisdiction within the limits of its district.

E. Monetary jurisdiction : District Commission has the jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, does not exceed Rs 1 crore.

F. Appeal : Any person not satisfied with the order of District Commission can appeal against it to the State Commission within 45 days from the date of the order in such form and manner may be prescribed.

2. State Commission:
A. Meaning : A consumer disputes redressal agency at state level established by each State Government is known as State Commission.

B. Composition : Each State Commission shall consist of:

  • President : A person who is or has been a Judge of a High Court, shall be appointed by the State Government as the president of the State Commission in consultation with the Chief Justice of the High Court.
  • Members : The number of other members shall not be less than 4 or not more than such number of members as may be prescribed in consultation with the Central Government.
  • Tenure : Every member of the state commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier.

C. Qualifications : The members shall have the following qualifications:

  • Age : The age of each member should not be less than 35 years.
  • Education : They should possess a Bachelor’s Degree from a recognised University.
  • Experience : Members should have adequate knowledge and experience of at least 10 years in dealing with problems related to economics, law, commerce, accountancy, industries, public affairs or administration.

D. Territorial Jurisdiction : The State Commission entertains original cases as well as appeals against the order of District Commission within the geographical limits of the state.

E. Monetary Jurisdiction : To entertain complaints where the value of the goods or services and compensation exceeds Rs 1 crore but is not more than Rs 10 crore.

(6) Appeal : Any person aggrieved by an order passed by the State Commission may make an appeal against such order to the National Commission within a period of 30 days from the date of the order in such form and manner as may be prescribed.

3. National Commission
A. Meaning : A consumer disputes redressal agency at the national level established by the Central Government by notification is known as National Commission. It is also called as National Consumer Disputes Redressal Commission.

B. Composition: The National Commission shall consist of:

  • President: A person who is or has been a Judge of the Supreme Court to be appointed by the Central Government as President of National Commission. Such appointment shall be made after consultation with the Chief Justice of India.
  • Tenure: Every member of the National Commission shall hold office for a term of 5 years or up to the age prescribed whichever is earlier.

Maharashtra Board OCM 12th Commerce Solutions Chapter 7 Consumer Protection

C. Qualifications: The members shall have the following qualifications:

  • Age: The age of each member should not be less than 35 years.
  • Education : They should possess a Bachelor’s Degree from a recognised University.
  • Experience : The members should have adequate knowledge and experience of at least 10 years in dealing with problems related to economics, law, commerce, accountancy, industries, public affairs or administration.

D. Territorial Jurisdiction : National Commission entertains original cases as well as appeals against the order passed by the State Commission which are within the geographical limits of the state.

E. Monetary Jurisdiction : To entertain the complaints where the value of the goods or services and compensation exceeds Rs 10 crore.

F. Appeal : Any person who does not agree with the order of the National Commission can appeal to the Supreme Court within 30 days from the date of such order.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 6 Social Responsibilities of Business Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 6 Social Responsibilities of Business

1. (A) Select the correct options and rewrite the sentence

Question 1.
Business is a ………………. activity.
(a) socio-economic
(b) service
(c) charitable
Answer:
socio-economic

Question 2.
Business organisation should try to make ……………… utilisation of natural resources.
(a) minimum
(b) maximum
(c) optimum
Answer:
optimum

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 3.
For economic growth and national security ………………. stability is required.
(a) political
(b) social
(c) economic
Answer:
political

Question 4.
Making timely payment of proper taxes is the responsibility of organisation towards ………………
(a) Shareholders
(b) Customers
(c) Government
Answer:
Government

Question 5.
Businessmen are ………………… of the society.
(a) Representatives
(b) Leaders
(c) Trustees
Answer:
Trustees

Question 6.
Business should provide periodic information to ………………
(a) customers
b) owners
(c) employees
Answer:
owners

Question 7.
Business should offer adequate opportunities of promotion to their ………………
(a) employees
(b) customers
(c) investors
Answer:
employees

Question 8.
The term ‘Ethics’ is derived from the ………………. word ‘Ethos’ which means character.
(a) Latin
(b) French
(c) Greek
Answer:
Greek

Question 9.
Business ethics refers to the ……………… system of principles.
(a) economic
(b) social
(c) moral
Answer:
moral

Question 10.
Business organisation should protect health and provide safety measures to ………………
(a) employees
(b) owners
(c) investors
Answer:
employees

Question 11.
At least ………………….. of the average net profit should be spent on C.S.R.
(a) 5%
(b) 2%
(c) 3%.
Answer:
2%.

1. (B) Match the pairs

Question 1.

Group A Group B
(A) Employees (1) Good quality product
(B) Responsibility to investors (2) To maintain solvency and prestige
(C) Responsibility towards government (3) To serve society
(D) Economic objective (4) Voluntary
(E) Business ethics (5) Job security
(6) Compulsory
(7) Respecting rules and regulations
(8) To earn profit
(9) Branch of Social Science
(10) Protection and environment

Answer:

Group A Group B
(A) E-business (5) Job security
(B) B2C (2) To maintain solvency and prestige
(C) Outsourcing (7) Respecting rules and regulations
(D) Digital cash (8) To earn profit
(E) Registration (9) Branch of Social Science

1. (C) Give one word/phrase/term for the following statement

Question 1.
Name the philosophy related to social responsibility propounded by Mahatma Gandhi.
Answer:
Trusteeship

Question 2.
Duties, obligations of business directed towards welfare of society.
Answer:
Social Responsibility

Question 3.
Getting good quality products is the basic right of this group of society.
Answer:
Consumers

Question 4.
Providing fair returns on investment is the responsibility of organisation towards this group.
Answer:
Investors

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 5.
Rules of standard dealing with morality in business environment.
Answer:
Business Ethics

Question 6.
An activity motivated by profit.
Answer:
Business

Question 7.
Earning foreign exchange is the responsibility of the organisation towards this group.
Answer:
Government

Question 8.
Employment generation is the responsibility of the organisation towards this group.
Answer:
Society

1. (D) State whether following statement are true or false

Question 1.
Businessmen are trustees of the society.
Answer:
True

Question 2.
Business ethics is a code of conduct.
Answer:
True

Question 3.
The commercial organisation are expected to uplift the weaker section of the society.
Answer:
True

Question 4.
It is the responsibility of commercial organisation to maintain industrial peace.
Answer:
True

Question 5.
Owners should not get complete and accurate information about the financial position.
Answer:
False

Question 6.
Media does not play important role in public life.
Answer:
False

Question 7.
Social responsibility is broader than legal responsibility of business.
Answer:
True

1. (E) Find the odd one

Question 1.
Job security, health and safety measures, good working condition, reasonable profit.
Answer:
reasonable profit

Question 2.
Good quality products, fair prices, honest advertising, prevent congestion in cities.
Answer:
prevent congestion in cities

Question 3.
Timely payment of taxes, earning foreign exchange, creating goodwill, political stability.
Answer:
creating goodwill

Question 4.
Protection of environment, maintain transparency, employment generation, development of backward region.
Answer:
maintain transparency

Question 5.
Proper conduct of meeting, careful use of capital, fair prices of products, maintain solvency and prestige.
Answer:
fair prices of products.

1. (F) Complete the sentences

Question 1.
Business organisation can maximise profitability by …………….. wastage.
Answer:
minimising

Question 2.
Social responsibility is broader than …………….. responsibility.
Answer:
legal

Question 3.
The concept of trusteeship was propounded by ……………….
Answer:
Mahatma Gandhi

Question 4.
Business should earn ………………. profit.
Answer:
reasonable

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 5.
……………….. should be fixed according to the nature and importance of work.
Answer:
Remuneration

Question 6.
The word ‘Ethics’ is derived from the Greek word ………………..
Answer:
Ethos

1. (g) Select the correct option

(Responsibilities towards shareholders, Responsibilities towards consumers, Responsibilities towards government. Responsibilities towards society)

Group A Group B
1. (1) After sales service ————–
2. (2) Timely payment of proper taxes ————–
3. —————— Protest Anti-Social activities
4. —————– Fair practices on Stock Exchange

Answer:

Group A Group B
1. After sales service Responsibilities towards consumers
2. Timely payment of proper taxes Responsibilities towards Government
3. Responsibilities towards Society Protest Anti-Social activities
4. Responsibilities towards shareholders Fair practices on Stock Exchange

1. (H) Answer in one sentence

Question 1.
Who can raise voice against business malpractices?
Answer:
Media can raise voice against business malpractices.

Question 2.
What should be done by management to keep workers updated?
Answer:
Guidance methods like ‘Introduction Training’, Refresher Training should be conducted to keep employees updated on the latest development to increase their efficiency and confidence.

Question 3.
What type of advertising should be avoided?
Answer:
False, misleading and vulgar advertisement should be avoided by the organisations.

Question 4.
What organisation should do to improve quality of goods and to reduce cost of production?
Answer:
Organisation should conduct research and development to improve the quality of goods and to reduce the cost of production which in turn will minimise the final prices charged to consumers.

1. (I) Correct the underlined word and rewrite the sentence

Question 1.
Social responsibility is narrower term than legal responsibility of business.
Answer:
Social responsibility is broader term than legal responsibility of business.

Question 2.
All sorts of fair practices related to stock exchange should be avoided.
Answer:
All sorts of unfair practices related to stock exchange should be avoided.

Question 3.
Management and union should agree strikes and lockouts to protect the interest of both the parties.
Answer:
Management and union should ban strikes and lockouts to protect the interest of both the parties.

Question 4.
MRP (Maximum Retail Price) should not be printed on every packet.
Answer:
MRP (Maximum Retail Price) should be printed on every packet.

Question 5.
Dishonest advertising can be appreciated by customers in the long run.
Answer:
Honest advertising can be appreciated by customers in the long run.

Question 6.
Financial help should be provided by business organisation for anti-social activities.
Answer:
Financial help should not be provided by business organisation for anti-social activities.

Question 7.
Business ethics is a compulsory term.
Answer:
Business ethics is a voluntary term.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 8.
Business ethics is not a relative term.
Answer:
Business ethics is a relative term.

Question 9.
Social values are based on perceptions of right or wrong.
Answer:
Moral values are based on perceptions of right or wrong.

Question 10.
Moral values provide general guidelines for social conduct.
Answer:
Social values provide general guidelines for social conduct.

2. Explain the following term/concept

Question 1.
Social Responsibility.
Answer:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

Question 2.
Concept of Trusteeship.
Answer:
(1) Trusteeship is a socio-economic philosophy that was propounded by Mahatma Gandhi. According to the principle of trusteeship, “A business must be carried out in trust, legally and morally for the benefit and welfare of the people.” Businessmen are treated to be trustees of society.

(2) Trusteeship provides a means through which rich or wealthy people become trustees of different trusts that take care or look after the welfare (well-being) of the people in the society. Business organisations function and operate within society. They are the part and parcel of the society to which they belong. Therefore, it is now realised that the activity which is harmful to the society is not good (suitable) for the business organisations.

Question 3.
Business Ethics.
Answer:
Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business

Question 4.
Moral Values.
Answer:
(1) Moral values are the standards of right and wrong which govern an individual’s behaviour and choices. Moral values may be derived from society, government, religion or self. Moral values are based on the understanding of right and wrong. Business ethics deals with morality in the business environment.

(2) Business may be guided by some moral principles such as not to get involved in unfair trade practices, to be honest and truthful about quality, not to sell adulterated products as pure product, not to give false and misleading advertisements, charging fair prices, paying taxes, duties and fees to the government honestly, and in schedule time, etc.

Question 5.
Social Values.
Answer:
(1) Social values are set of moral principles that provide the general guidelines for our social conduct. Social values constitute an important aspect of the culture of the society. They are based on tradition, ego, honesty, integrity, fairness, hard work, co-operation, forgiveness, etc.

(2) Social values are the values (standards) concerned with the social aspects of human life, e.g. truth, justice, kindness, generosity, tolerance, patriotism, respect for seniors, excellence, etc. The business organisations should develop social, values through educative advertising, cultural programmes, national integration programmes, assistance to the educational institutes, etc.

3. Study the following case/situation and express your opinion

Question 1.
Yashwant Co. Ltd. is providing facilities for their female staff like day care centre for kids and work from home facility. Even management takes their suggestions while taking the decisions though they are members of trade union.

(i) By doing this they are following social responsibilities towards which interest groups?
(ii) What values are they presenting?
(iii) What kind of responsibilities employer follows in above case?
Answer:
(i) By treating the staff with dignity and respect the company follows the social responsibilities towards the employees.
(ii) Yashwant Co. Ltd. are presenting social values by showing co-operation to their female staff.
(iii) Management takes the employees’ suggestions while taking the decisions even though they are members of trade union. By doing this, management recognizes the right of employees to join, Trade Unions. The company also does not restrict employees from forming Trade Union. Thus they follow social responsibility towards employees.

Question 2.
An organisation manufacturing paints has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank: which has created many health problems for the nearby villages.

(i) Which responsibility is neglected by manufacturing organisation?
(ii) What kind of pollution are they doing?
(iii) What precautionary measures they need to take?
Answer:
(i) Responsibility towards protection of environment is regulated by manufacturing industries.
(ii) They are creating water pollution by dumping its untreated poisonous waste on the river bank.
(iii) Proper waste management techniques should be adopted by the organisation under which waste should be reduced, effort should be made to reuse the waste. Waste that cannot be reduced or reused should be recycled.

Question 3.
A vehicle manufacturing company has adopted the following practices:
(A) Only those components will be used by the company which are environment-friendly.
(B) There will be discharge of harmful wastes only after their proper treatment.
(C) Pollution level of every vehicle will be maintained as per international standards.

(i) By doing this, business organisation follows social responsibility towards which interest group?
(ii) What kind of pollution do they want to avoid ?
(iii) What kind of message do they want to convey ?
Answer:
(i) Business organisation follows social responsibility towards society for protection of environment.
(ii) They want to avoid air pollution.
(iii) They want to convey the message that business should be committed to protect the environment and should not create imbalance in nature.

4. Answer in brief

Question 1.
Give any four types of social responsibilities towards consumers.
Answer:
The social responsibilities of commercial organisation towards consumers are explained as follows:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

(4) Honest Advertising : The advertisement conveys varied information of the products like the facts, features, side effects, advantages, uses, etc. to the customers. The commercial organisations must see to it that their advertisement should not mislead the consumers by exaggerating the actual facts. The commercial organisations must not indulge in vulgar, false and misleading advertisement. Honest advertisements are always appreciated by the consumers and become beneficial in the long run.

(5) After Sales Service: The commercial organisation should offer quick, satisfactory and efficient after sales service specially in the case of consumer durable products for their maintenance during the period of warranty. Effective and efficient after sales services enable them to establish and maintain good relation with the consumers.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 2.
What is Business Ethics ? What are elements of business ethics ?
Answer:
[A] Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business.

[B] Elements of business ethics : The elements of business ethics are explained as follows:
(1) Trustworthiness : Every business unit or organisation must work in all areas to maintain trustworthiness. This increases the confidence of clients or customers in the organisation. The clients usually believe in organisations for reliability and quality performance. Company or organisation functions and prospers on character, i fairness, truth, honour and ability.

(2) Honest service delivery : It is much better to be honest about what one can do rather than making empty promises. Empty or false promises ruin the reputation of the business organisation. Business organisation should fulfil or complete all its commitments and obligations and leave every customer feeling well served and satisfied.

(3) Confidentiality : The company or business organisation should strictly obey and follow its i internal confidential policy. It is utmost important for every business organisation to keep in secret the confidential details of its own clients. For private gain it should not disclose such information to any one. Similarly, it should not use any means to get information from competitors about certain formulae or methods of production.

(4) Openness : Good business ethics and continuous improvement also come from keeping an open mind. Business unit should follow the principle of openness. It should regularly demand opinions and feedback from both clients and team members. Even in times of business disagreement, business unit should welcome other’s opinions and ideas with respect and courtesy.

(5) Other common business ethics : (1) A large portion of our society is composed of common people with low purchasing power. Business enterprises should consider likes, dislikes and financial position of these people and accordingly manufacture and provide goods and services. (2) The guaranties and warranties given by the manufacturer should be proper and acceptable by the customers. (3) Advertisements given by the businessmen should not cross limit of decency.

Question 3.
State responsibilities of business towards government.
Answer:
Responsibilities of business towards government:
(1) Timely payment of taxes : Business organisations are expected to pay various taxes such as sales tax, income tax, corporate tax, excise duty, wealth tax, etc. levied by the government from time to time. These funds enable the government to undertake various development projects.

(2) Observing rules and regulations : The business organisations are expected to comply with the various laws, rules and regulations enacted by the government. The company should follow the laws regarding obtaining license of business operation, price determination and production, etc. They should conduct business in lawful manner.

(3) Earning foreign exchange : The business organisations Eire expected to export their products to foreign countries to earn foreign exchange. Foreign exchange is required by the government to import various goods, valuable and important products.

(4) Economic development : The government sets the targets for balanced growth and rapid economic development of the country. The business organisation is expected to provide necessary support to the government.

(5) Implementing socio-economic policies : The business organisations are expected to provide co-operation and required funds to the government in implementing various socio-economic programmes and policies.

Question 4.
State any four CSR activities.
Answer:
CSR, supports the following activities:

  1. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water.
  2. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently abled & livelihood enhancement projects.
  3. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines.
  4. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water.
  5. Employment enhancing vocational skills, etc.

5. Justify the following statements.

Question 1.
Role of media has major influence on business organisation.
Answer:
(1) Media refers to the various means used by advertisers to inform the public about the products or services. The mass media include the press, social media, radio and television. Active media plays crucial role in the life of the people. Through internet, reach of social media to common people has become very easy.

(2) Media has efficiency to disburse any information, wrong policy, unfair trade practice adopted by any business organisation at a very fast pace to public at large that too at every corner of the world. Media is very vibrant and active.

(3) Media connects the people and creates influence on masses. It can make propaganda (or raise voice) against business malpractices and exploitation of consumers. It can do publicity through repetition of messages by different means.

(4) Newspapers, radio, television, internet, social media, etc. can easily give publicity to unfair practices of business organisations. So, media makes business organisations understand social values and exerts major influence.

Question 2.
Business should allow workers participation in management.
Answer:
(1) Workers are the real architects of success in any business unit. Investments in human resources (capital) gives rich rewards in the long run.

(2) The success and failure of the business organisations to greater extent depend on the support and participation of employees. Therefore, business organisations should encourage workers to participate in management through various schemes like giving suggestions, saving costs, quality circles, profit sharing co-ownership, etc.

(3) When workers are given opportunity to participate in the management, it will raise their morale. This in turn will give the workers a sense of belongingness. They will take an active part in completion of the work assigned to them.

(4) Workers’ participation in the management r enables the organisation to win the confidence of employees. It creates and maintains good, healthy and improved relationship between labour and management which is necessary for the success of any organisation.

Question 3.
Expectations of society towards business are changing.
Answer:
(1) Today the world is changing and expanding very fast. Social demands have changed gradually over the years. The business has to respond them positively.

(2) Now the people all over the globe are well aware of their rights. Overall knowledge level has also increased. In order to fulfil the growing needs of the people, the business firms must operate as per the expectations of society. Business units must give society what it actually wants.

(3) Consumer satisfaction is the ultimate purpose of business activities. A business organisation must give priority to consumer satisfaction over profit motive. Its survival, progress and reputation depend upon the consumer satisfaction. It must win the confidence of its customers by giving them useful services.

(4) Business organisations are expected to act in broad public interest and serve the objectives of mankind and society at large along with the objectives of earning profit. It must provide quality products to society at reasonable prices and above all contribute to the social welfare.

Question 4.
Business organisations should avoid environmental pollution and ecological imbalance.
Answer:
(1) Functioning of business units and industrialisation create air, water and sound pollution. The carbon particles, dust, harmful gases, chemicals, etc. create air pollution.

(2) Harmful chemicals, untreated sewage, industrial waste, fertilizers, pesticides, refuse, e-waste, etc. when get mixed with water, creates water pollution. Aeroplanes, motor vehicles, construction machines and industrial equipment create sound pollution.

(3) The business organisations are expected to take all possible measures to prevent air, water and sound pollution and to maintain the ecological balance. For the well-being of society every organisation should assist the concerned organisations engaged in pollution control programmes such as plantation of trees, preservation of wildlife and natural resources.

(4) Protecting the environment and maintaining ecological balance in the following manner:

  1. Business organisations save cost and money through minimising waste
  2. Business organi¬sations which follow green practices (plantation of more and more trees) get support from customers
  3. Business organisations which take precautions to protect environment create awareness among employees
  4. Protection of environment process cut carbon emission and create conditions for green growth which is beneficial to society
  5. Business organisations showing awareness towards environment protection get support and encouragement from the government.
    Thus, business organisation should avoid environmental pollution and ecological imbalance.

Question 5.
All sorts of unfair practices related to stock exchange should be avoided.
Answer:
(1) The persons who provide finance for short term as well as for long term to the company are called owners or investors. They invest their money and accept risk factor. Management is expected to provide full and factual information about the financial performance of the company to the owners and investors.

(2) Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating and maintaining the interests of investors in the securities market. Law prohibits any sort of activity that are manipulative or unfair in the securities market. Thus, business organisations must avoid unfair practices related to stock exchange like insider trading, providing wrong and secret information about buying/selling or dealing with securities, etc. Any breach in the above mentioned practices may be considered unlawful and be made accountable by SEBI.

(3) Therefore, business organisation should consider responsibilities toward the owners and should avoid all sorts of unfair practices related to stock exchange.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 6.
Business ethics contains moral and social values for doing business.
Answer:
(1) Business Ethics refer to code of conduct that a business organisation are expected to follow while doing a business. According to ‘Wheeler’, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as recognizing the moral responsibility for right or wrong conduct of business. ”

(2) Moral values are based on perceptions of right and wrong. They provide the general guidelines for distinguishing between wrong and right path of business, between good and bad, fair and unfair, just and unjust, legal and illegal, proper and improper in respect to human actions. Ethics contain moral values for doing business, Honesty, transparency, fairness, integrity, etc. are moral values that create goodwill and gives economic gain in the long run.

(3) Social values form an important part of the culture of the society. They provide general guidelines for social conduct. Values such as fundamental rights, patriotism, respect for human dignity, rationality, sacrifice, equality, democracy, etc. influence our behaviour in many ways. These social values made the business socially acceptable. As business is a part of society, it can be successful in the long run by adopting social values.

Question 7.
Business ethics can be considered as a tool for social development.
Answer:
(1) Business ethics is a code of conduct evolved for regulating the activities of business towards the society and others.

(2) It calls for the importance of fair treatment to be given to the consumers, workers, suppliers, shareholders, competitors, government and the community at large. Business ethics promote the principles of honesty, sincerity, fairness, justice in business dealings.

(3) It protects the interests of all the constituents of the society. It creates healthy and competitive business atmosphere. It induces businessmen to introduce social security and welfare measures.

(4) The businessmen promote activities enhancing the cultural values of the society. Thus, business ethics, if practised by businessmen in the right spirit, can be considered as a tool for social development.

6. Attempt the following

Question 1.
What is social responsibility of commercial organisation towards consumers ?
Answer:
The social responsibilities of commercial organisation towards consumers are explained as follows:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

(4) Honest Advertising : The advertisement conveys varied information of the products like the facts, features, side effects, advantages, uses, etc. to the customers. The commercial organisations must see to it that their advertisement should not mislead the consumers by exaggerating the actual facts. The commercial organisations must not indulge in vulgar, false and misleading advertisement. Honest advertisements are always appreciated by the consumers and become beneficial in the long run.

(5) After Sales Service: The commercial organisation should offer quick, satisfactory and efficient after sales service specially in the case of consumer durable products for their maintenance during the period of warranty. Effective and efficient after sales services enable them to establish and maintain good relation with the consumers.

(6) Research and Development: The commercial organisation is expected to conduct research and development for the purpose of improving the quality of the product and reducing the cost of production. The commercial organisations must provide quality and branded products such as BIS – Bureau of Indian Standards, AGMARK – Agricultural Marketing, ISI – Indian Standards Institute, etc.

(7) Regular Supply: The commercial organisations are expected to provide goods and services to the consumers regularly as and when needed by them. The commercial organisations are not supposed to create artificial scarcity of goods by hoarding. They should not indulge in black marketing.

(8) Attend Complaints : The commercial organisations must attend to the complaints of consumers without any delay. For this, every organisation should implement quick, effective and suitable grievances redressal system. Suggestions of the customers for the improvement of products should be welcomed and gratefully acknowledged. Required modification in the products should be carried out.

(9) Training: The commercial organisation should organise training to their regular and potential consumers, from time to time, either free of cost or by charging nominal fees.

(10) Avoid Customer Exploitation : In order to avoid exploitation of consumers, the commercial organisations should not indulge in unfair trade practices. To protect the interest of consumers, organisations should avoid monopolistic competition in the market.

Question 2.
State different types of responsibilities towards society.
Answer:
The following are the social responsibilities of a business unit towards society community/ public in general:
(1) Protection of environment : In recent years, pollution becomes one of the major problems. Industries, chemical plants, cement plants, etc. create air pollution and water pollution. The business organisations must take all possible measures to prevent or minimise air and water pollution and maintain ecological balance.

(2) Better and maximum use of resources : The business firms must make proper and optimum use of available resources in the larger interest of the society. The resources such as water, land, fuel, raw materials, etc. should be used fairly and efficiently. However, care should be taken not to misuse or waste such resources.

(3) Reservation for weaker section : For upliftment of economically weaker section of society, the business organisations are expected to reserve certain positions in their organisations. They should also provide financial and other necessary help to them wherever expected.

(4) Development of backward regions : The society expects that the business firms should start their industries in less developed (backward) areas to create employment opportunities. It will increase purchasing power among these people. In this manner, business organisations should make development in backward regions.

(5) Protect against anti-social activities : The business organisations should neither undertake nor participate in anti-social activities. They should not provide any financial assistance to anti-social elements. The business firms should avoid anti-social activities such as smuggling, association with underworld (criminal) people, bribing government officials, etc.

Question 3.
Describe the responsibilities of commercial organisation towards investors.
Answer:
Responsibilities of business towards investors:
(1) Proper conduct of meetings : Whenever need arises, a company should call and organise meetings of investors to provide information about the business. Prior to meeting, proper notice and agenda should be sent well in advance. During the period of financial crisis, investors should be convinced and taken into confidence. Reasons for failure should be explained to the investors to gain their confidence.

(2) Return on Investment : Investors invest their money in the company by accepting risk. They are entitled by get fair returns on their investment at regular interval in the form of interest. Investors expect the following from the business organisations : (a) fair returns on their investment, (b) safety of their investment and (c) steady and gradual appreciation of the business.

(3) Handling grievances : A company is required to pay attention and handle the grievances and complaints of the investors amicably. There should be orderly procedure to solve and deal with grievances without any delay. The business management should answer all the queries of investors regarding any issue in satisfactory manner.

(4) Maintain transparency : Investors supply funds for long term and for working capital to carry on business more efficiently. Investors expect that business firms should maintain high degree of transparency in their operations.

(5) Proper disclosure of information : A company is expected to disclose full and factual information through regular reports, circulars and statement of profit. The company must provide its financial performance more correctly so that prospective investors are able to take right decisions to invest their money in future.

(6) Maintain solvency and prestige : Business organisation or a company is expected to maintain sound financial position, prestige, solvency and goodwill to gain confidence of investors. For this, company should undertake innovation, research and expansion programme on the continuous basis.

Question 4.
Describe the features of Business Ethics.
Answer:
The features of Business Ethics are explained as below:
(1) Code of conduct : Business ethics is a code of conduct developed and evolved for regulating business activities toward welfare of society. It explains what activities one is suppose to do and not do for the welfare of the society. All business units must follows this code of conduct.

(2) Based on moral and social values : Business ethics comprises social and moral principles i.e. rules for carrying out business activities smoothly. This contains self control, consumer protection and welfare, fair treatment to social group, service to society, not to harm (exploit) others, etc.

(3) Gives protection to social groups : Business ethics protects the interests of all the constituents (groups) of the society which include consumers, creditors, employees, small businessmen, shareholders, government, etc.

(4) Provides basic framework : Business ethics specifies the social, cultural, legal, economic and other limits of business within which business units are expected to plan, work out and conduct their functions and activities.

(5) Voluntary : The businessmen must follow (accept) business ethics voluntarily, i.e. on their own. Business ethics must be similar to self¬discipline. It should not be made compulsory by law.

(6) Requires education and guidance : Prior to introduction of business ethics in the organisation, businessmen must be properly educated, trained and given guidance. The businessmen must be convinced and motivated to implement business ethics.

(7) Relative term : Business ethics is a relative term. It differs or changes from one business to another business and from one country to another.
In one country whatever is considered good may be banned or bad for other country.

(8) New concept : Business ethics is considered as newer concept. It is strictly followed and applied in developed, i.e. advanced countries. It is not accepted and followed in developing and poor (backward) countries.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 5.
What is Corporate Social Responsibility?
Answer:
(1) Corporate Social Responsibility (CSR) is the recent and newest management strategy which creates positive impact on society while doing business. It is a global concept. It is self regulating business model which aims at contributing towards social welfare and support ethically oriented practices. CSR makes a company socially accountable and responsible. CSR makes a company accountable towards itself, its stakeholders, public in general, etc. By undertaking and practising social responsibility company can be alert and awake about social, economic and environmental aspects of the society.

(2) According to UNIDO (United Nations Industrial Development Organization), “Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders”.

According to Section 135 of the Companies Act, 2013 and Companies (CSR Policy) Rules 2014, the companies having net worth of 1500 Cr. or more or turnover of 1000 Cr. or more; or net profit of 15 Cr. or more during any financial year have to form a Corporate Social Responsibility Committee of the Board. The Board’s report will give information about the compositions of CSR committee with effect from 1st April, 2014.

(3) In every financial year, all companies should spend at least 2% of average net profits of last 3 years on their CSR policy. The CSR committee consists of 4 directors who meet at least 2 times in a year to discuss and review the CSR policy and CSR activities, prepare budget, explain the way to implement projects and to establish a transparent means to check progress.

(4) CSR, supports the following activities:

  1. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water.
  2. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently abled & livelihood enhancement projects.
  3. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines.
  4. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water.
  5. Employment enhancing vocational skills, etc.

(5) Penalties for non-compliance of CSR activities (duties) would attract a fine of not less than Rs 50,000 which may increase to Rs 25,00,000 and every officer of the company in default is given punishment of imprisonment for 3 years or with fine of Rs 50,000 which may increase to Rs 5,00,000 or with both.

7. Answer the following

Question 1.
Explain the responsibilities of business towards employees.
Answer:
The responsibilities of business towards employees are explained as follows:
(1) Job security: Job security (guarantee) gives mental peace to the employees. In order to encourage employees to work with full concentration, dedication and commitment, the business organisation must give job security and frame rules for confirmation of their service and strictly adhere to them. This will in turn raise their morale, interest and loyalty towards the organisation.

(2) Fair remuneration : The business organisation should pay adequate and attractive salaries along with incentives like overtime allowance, bonus, etc. to all employees. Wages or salaries payable to employees should be fixed by considering nature of work. The business organisations should frame suitable wage plans for increments and timely revision of wages.

(3) Health and safety measures : The business organisations is expected to take necessary steps for protecting the health and hygiene of the employees. Proper sanitation, canteen, medical facilities, hygienic conditions, etc. must be provided to them. Proper maintenance of machines and premises must be done to prevent accidents and control pollution. Business organisation should provide safety equipment such as helmets, safety goggles, gloves, shoes, masks, etc. to the employees.

(4) Good working condition : The business organisations must provide good working conditions to their employees such as adequate lighting, ventilation, safe drinking water, etc. The business organisations are expected to take necessary steps to avoid and minimise air, sound and water pollution. The business organisation must fix proper working hours and norms (shiftwise, if any) with due provisions for lunch break, tea intervals, restrooms, etc.

(5) Recognition of Trade Unions : The business organisation must recognise the right of a worker to join a recognised trade union. The management or employer should not prevent workers from forming a trade union. The management should not follow the policy of “Divide and Rule”. Further, the management should solve the problems of the workers amicably by holding face to face interactions, talks, meetings and negotiations with unions. The management and union should agree to ban lockouts and strikes to protect the interest of both the parties. A business organisation is expected to maintain industrial harmony and peace.

(6) Education and training : The business organisations are expected to take efforts to educate and train the employees. Depending on the nature of job, the business organisation should offer education, training and guidance to their employees free of cost. To update their knowledge, on the latest development and to increase the S efficiency of the employees, the organisation should arrange ‘Refresher in service training’ and ‘Introduction Training’ at regular intervals.

(7) Workers participation in management : The business organisations are expected to encourage workers to participant in the management by forming workers’ committee. The management should encourage the workers ; through different schemes like suggestion schemes, profit sharing, etc. These schemes enable the management to raise employees’ morale and help the management to give them a sense of belonging.

(8) Promotion and career opportunities : Business organisations should offer enough opportunities of promotion to their qualified and talented employees. They should give detailed information about qualification, skills and I experience required to get promotions. This will increase awareness and motivate the workers to work hard.

(9) Proper grievance procedure : The organi-sation must introduce a suitable grievance (redressal) procedure to deal with the employees’ complaints. All their queries or problems should be sorted out and solved quickly and amicably.

The employees must feel satisfied that their complaints are attended properly. Management or employer must investigate and take necessary actions to settle the grievances and complaints.

(10) Miscellaneous : Management or employer should-

  1. give fair treatment to all employees.
  2. recognise, appreciate and encourage special skills and talents of the employees.
  3. introduce code of conduct for the employees.
  4. protect religious, social, political rights of the employees.
  5. allow employees to form informal groups.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 2.
Define the concept of Social Responsibility and what is the need for social responsibility.
Answer:
[A] Meaning and Definition : Social responsibility is an obligation of the business organisation to take those decisions and perform those actions which are desirable to fulfil the objectives and add values to our society. The business organisations are expected to perform all the activities of their business in such a manner that such activities will not cause any harm to any part of the society.

In other words, the business enterprises should undertake such activities which will protect and contribute to the interest of society and fulfil their expectations. According to Howard D. Bowen “Social Responsibility is to pursue those policies to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.” In brief, social responsibility comprises of an element of voluntary action taken by the business people for the benefit of the society.

[B] Need for social responsibility:
(1) Concept of Trusteeship : Trusteeship is a socio-economic philosophy that was advocated by Mahatma Gandhi. According to it, rich (wealthy) people would be trustees of the trusts that take care of the welfare of the people in general. Businessmen are treated as trustees of society.

(2) Changing expectations of society : Over the years, society’s expectations from the business organisation have undergone severe change. In earlier days, business firms were recognised as the providers of goods and services. However in recent years society expects that every business organisation as a responsible citizen should contribute towards social welfare of the people in the society.

(3) Reputation : Business organisations spend large amount of money in brand building and in creating and strengthening their favourable image. The business organisations which care for every organ of the society and contribute to social well¬being enjoy a good reputation in the society. Such organisations always get good support from the public which in turn increases sales, profitability, attraction of talent and sustained growth.

(4) Protection of environment : It is the social responsibility of the business organisations to make proper and careful use of country’s natural resources. They should not cause environmental pollution (degradation) like contamination pollution of water resources, depletion of ozone layer, etc. Such type of pollutions result in poor health of the community and put a question mark on the survival of human species/race.

(5) Optimum utilisation of resources : Usually, large business organisations have huge amount of resources such as manpower, talent, finance and expert at their disposal to use. It is the social responsibility of business organisations to make optimum use of available resources to protect society’s interests. The organisation should always avoid wastage of resources.

(6) Pressure of trade union : The workers have now become more conscious of their rights and privileges. In recent years, trade unions play significant role in business environment. The workers have realised that their efforts contribute to the profits of the business organisation and expect management to pay them fair wages, bonus, etc. to minimise or avoid conflicts between trade unions and management. The business organisations should understand the responsibility towards employees to avoid conflicts and act accordingly.

(7) Growth of consumer movement : Advancement and growth in education, development of mass media and growing competition in the market create awareness among the consumers about their rights and powers. Hence, business organisation are required to follow consumer-oriented policies.

(8) Government control : From the side of business organisation, government rules and regulations are not desirable. This is because government put certain restrictions and limit the freedom of business organisations. In order to put moral and legal pressure on business, the government has enacted several laws such as Consumer Protection Act, 1986, Air Pollution Act, Food Adulteration Act, etc.

(9) Long term self interest : A business organisation and its image stand to earn handsome profit in the long run if its motive is providing services to the society. When the workers, consumers, shareholders, government officials and members of the public feel that a business organisation is indifferent to the social interests, they may withdraw their support to end co¬operation. Therefore, it is in the long-term interest of the business organisation to be socially useful and fulfil its social responsibility.

(10) Complexities of social problems : Many a time some business organisations themselves create social problems such as discrimination in treatment, unsafe workplaces, different types of pollutions, etc. It is the moral and social obligation of the business organisation to solve these social problems.

(11) Globalisation : In globalisation, business activities are conducted throughout the world. In recent years, the entire globe (world) has becomes the market place for buying and selling goods and services produced in any part of the world. Globalisation creates and provides more opportunities, threats and challenges to the business organisations. Those countries in the world which have followed good and fair trade practices capture and influence the entire world trade.

(12) Role of media : By using internet, it is easier to approach the common people. Media is dynamic and active which can influence large number of people in the society. Media is useful to raise voice against malpractice and exploitation of the consumers. Media plays important and active role in public life. Thus, Business organisation should not neglect the social values.

Question 3.
Explain the responsibilities of a business unit towards society at a large.
Answer:
The following are the social responsibilities of a business unit towards society community/ public in general:
(1) Protection of environment : In recent years, pollution becomes one of the major problems. Industries, chemical plants, cement plants, etc. create air pollution and water pollution. The business organisations must take all possible measures to prevent or minimise air and water pollution and maintain ecological balance.

(2) Better and maximum use of resources : The business firms must make proper and optimum use of available resources in the larger interest of the society. The resources such as water, land, fuel, raw materials, etc. should be used fairly and efficiently. However, care should be taken not to misuse or waste such resources.

(3) Reservation for weaker section : For upliftment of economically weaker section of society, the business organisations are expected to reserve certain positions in their organisations. They should also provide financial and other necessary help to them wherever expected.

(4) Development of backward regions : The society expects that the business firms should start their industries in less developed (backward) areas to create employment opportunities. It will increase purchasing power among these people. In this manner, business organisations should make development in backward regions.

(5) Protect against anti-social activities : The business organisations should neither undertake nor participate in anti-social activities. They should not provide any financial assistance to anti-social elements. The business firms should avoid anti-social activities such as smuggling, association with underworld (criminal) people, bribing government officials, etc.

(6) Financial assistance : The society expects financial helps and donations from the business organisations for various social welfare activities such as eradication of poverty, illiteracy, etc. The society also expects financial assistance from them to organise various awareness programmes like anti-drug campaigns, antinoise pollution campaigns, etc.

(7) Prevent congestions : The society expects that the business firms start industries in industrial zones and at different locations. It will minimise the adverse effects like pollution and overcrowded cities in residential areas. This facilitates business firms to provide jobs to local people. This in turn avoids congestion in big cities.

(8) Employment generation : The business units should generate and provide better job opportunities to young and well qualified people in all sections of the society. It should make maximum efforts to generate employment through expansion and diversification of its business. This will avoid unemployment and poverty in the society.

Maharashtra Board OCM 12th Commerce Solutions Chapter 6 Social Responsibilities of Business

Question 4.
What are the responsibilities of business towards investors and government?
Answer:
[A] Responsibilities of business towards investors:
(1) Proper conduct of meetings : Whenever need arises, a company should call and organise meetings of investors to provide information about the business. Prior to meeting, proper notice and agenda should be sent well in advance. During the period of financial crisis, investors should be convinced and taken into confidence. Reasons for failure should be explained to the investors to gain their confidence.

(2) Return on Investment : Investors invest their money in the company by accepting risk. They are entitled by get fair returns on their investment at regular interval in the form of interest. Investors expect the following from the business organisations : (a) fair returns on their investment, (b) safety of their investment and (c) steady and gradual appreciation of the business.

(3) Handling grievances : A company is required to pay attention and handle the grievances and complaints of the investors amicably. There should be orderly procedure to solve and deal with grievances without any delay. The business management should answer all the queries of investors regarding any issue in satisfactory manner.

(4) Maintain transparency : Investors supply funds for long term and for working capital to carry on business more efficiently. Investors expect that business firms should maintain high degree of transparency in their operations.

(5) Proper disclosure of information : A company is expected to disclose full and factual information through regular reports, circulars and statement of profit. The company must provide its financial performance more correctly so that prospective investors are able to take right decisions to invest their money in future.

(6) Maintain solvency and prestige : Business organisation or a company is expected to maintain sound financial position, prestige, solvency and goodwill to gain confidence of investors. For this, company should undertake innovation, research and expansion programme on the continuous basis.

[B] Responsibilities of business towards government:
(1) Timely payment of taxes : Business organisations are expected to pay various taxes such as sales tax, income tax, corporate tax, excise duty, wealth tax, etc. levied by the government from time to time. These funds enable the government to undertake various development projects.

(2) Observing rules and regulations : The business organisations are expected to comply with the various laws, rules and regulations enacted by the government. The company should follow the laws regarding obtaining license of business operation, price determination and production, etc. They should conduct business in lawful manner.

(3) Earning foreign exchange : The business organisations Eire expected to export their products to foreign countries to earn foreign exchange. Foreign exchange is required by the government to import various goods, valuable and important products.

(4) Economic development : The government sets the targets for balanced growth and rapid economic development of the country. The business organisation is expected to provide necessary support to the government.

(5) Implementing socio-economic policies : The business organisations are expected to provide co-operation and required funds to the government in implementing various socio-economic programmes and policies.

(6) Suggestions to the Government: The business organisations are expected to give suggestions to the government in framing important policies such as Industrial Policy, Import-Export Policy, Licensing Policy, etc. They are helpful to government in framing organisation friendly policies.

(7) No favours : The business organisation should not take any favour from the government officials by giving bribes or influencing them in any matter.

(8) Contributing to government treasury: The business organisation must contribute by extending financial aid to the government during emergencies and natural calamities like floods.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 5 Emerging Modes of Business Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 5 Emerging Modes of Business

1. (A) Select the correct options and rewrite the sentence

Question 1.
For online transactions ……………… is required.
(a) registration
(b) trading
(c) business
Answer:
(a) registration

Question 2.
The term ‘e-business’ is derived from the term ……………….. and e-commerce.
(a) Cash
(b) e-pay
(c) e-mail
Answer:
(c) e-mail

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 3.
The transactions under ………………. are between consumers and consumers.
(a) B2B
(b) C2C
(c) B2C
Answer:
(b) C2C

Question 4.
The process of contracting a business function to someone else is called as …………….
(a) Outsourcing
(b) Trading
(c) e-business
Answer:
(a) Outsourcing

Question 5.
In online shopping customers put the product in the ……………..
(a) shopping mall
(b) shopping cart
(c) shopping bag
Answer:
(b) shopping cart

1. (B) Match the pairs

Question 1.

Group A Group B
(A) E-business (1) Consumer to consumer
(B) B2C (2) Exist everywhere
(C) Outsourcing (3) First step
(D) Digital cash (4) Business to Consumer
(E) Registration (5) Electronic business
(6) BPO
(7) RTO
(8) Efficient business
(9) Exist only in cyberspace
(10) Last step

Answer:

Group A Group B
(A) E-business (5) Electronic business
(B) B2C (4) Business to Consumer
(C) Outsourcing (6) BPO
(D) Digital cash (9) Exist only in cyberspace
(E) Registration (3) First step

1. (C) Give one word/phrase/term for the following statement

Question 1.
The stage where the goods bought are delivered to the customer.
Answer:
delivery stage

Question 2.
The term derived from the terms e-mail and e-commerce.
Answer:
e-business

Question 3.
The transaction which is done with the help of the internet.
Answer:
online transactions

Question 4.
The first step in online transaction.
Answer:
Registration

Question 5.
The process of contracting a business function to specialized agencies.
Answer:
outsourcing

Question 6.
Subset of outsourcing.
Answer:
BPO

Question 7.
Sub segment of BPO.
Answer:
KPO

Question 8.
One of the value added BPO service which involves legal work.
Answer:
LPO.

1. (D) State whether following statement are true or false

Question 1.
It is easy to set up e-business as compared to traditional business.
Answer:
True

Question 2.
The term e-business is derived from the term e-mail and e-commerce.
Answer:
True

Question 3.
e-business allows you to work across the globe in any field.
Answer:
True

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 4.
LPO stands for legal product outsourcing.
Answer:
False

Question 5.
KPO requires advanced analytical and technical skills.
Answer:
True

Question 6.
With the help of outsourcing, company cannot focus on the core areas.
Answer:
False

1. (E) Find the odd one

Question 1.
BPO, RTO, LPO, KPO
Answer:
RTO

Question 2.
B2B, B2C, A2Z, C2C.
Answer:
A2Z

Question 3.
Debit card, Credit card, Aadhar card, ATM card.
Answer:
Aadhaar card

1. (F) Complete the sentences

Question 1.
E-business is an abbreviation for ………………….
Answer:
Electronic business

Question 2.
The term e-business came into existence in the year ………………..
Answer:
1997

Question 3.
E-business means using the …………….. to connect people and process.
Answer:
Internet

Question 4.
E-business is …………….. of e-commerce.
Answer:
superset

Question 5.
E-commerce is …………….. of e-business.
Answer:
subset

Question 6.
The process of contracting a business function to specialized agencies is known as ……………….
Answer:
Outsourcing

1. (G) Select the correct option and complete the following table

(Business to Business, First step, e-commerce, Payment mechanism, e-business)

Group A Group B
A. Registration —————
B. Superset of e-commerce ————–
C. —————— Last step
D. Subset of e-business ————-
E. —————– B2B

Answer:

Group A Group B
A. Registration First step
B. Superset of e-commerce e-business
C. Payment mechanism Last step
D. Subset of e-business e-commerce
E. Business to Business. B2B

1. (H) Answer in one sentence

Question 1.
What is E-business?
Answer:
E-business i.e. electronic business means and includes buying and selling of goods and services along with providing technical or consumer support through internet.

Question 2.
What is outsourcing?
Answer:
Outsourcing is the process of contracting (transferring) any specific business activity, the non-core functions, of the business to specialised agencies to carry out for some money consideration.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 3.
What is online transaction?
Answer:
Online transaction refers to a process of buying and selling of goods and services with the help of internet.

Question 4.
What is Shopping cart?
Answer:
Shopping cart is an online record of what buyer has picked up while browsing the online store, i.e. number of units, quantity, price, etc.

Question 5.
What is digital cash?
Answer:
A form of electronic currency that exists only in cyberspace and has no real physical properties but offers the ability to use as real currency in am electronic format.

Question 6.
What is BPO?
Answer:
Business Process Outsourcing (BPO) refers to the outsourcing (transferring to perform) of peripheral (not important) activities (functions) of the organisation to am external organisation or a service provider to minimise cost and increase efficiency.

Question 7.
What is KPO?
Answer:
KPO i.e. Knowledge Process Outsourcing ; described as the functions related to knowledge and information outsourced (transferred to perform) to third party which may be in the same country or in an off shore location.

Question 8.
What is LPO?
Answer:
Legal Process Outsourcing (LPO) is a form of outsourcing in which legal services, ranging from drafting legal documents, performing legal research to offering legal advice are hired or obtained from outside law firm or legal support services company for money consideration.

1. (I) Correct the underlined word and rewrite the sentence:

Question 1.
E-business is hard to start.
Answer:
easy

Question 2.
There are five stages of online transactions.
Answer:
three

Question 3.
Registration is the Last step in online transaction.
Answer:
First

Question 4.
Digital cash is form of plastic currency.
Answer:
electronic currency

Question 5.
KPO includes less knowledge based and specialized work.
Answer:
more

1. (J) Arrange in proper order

Question 1.
Purchase or sale, Delivery stage, Pre purchase or sale.
Answer:
Pre purchase or sale, Purchase or sale, Delivery stage.

Question 2.
Placing an order, Cash on delivery, Registration
Answer:
Registration, Placing an order, cash on delivery

2. Explain the following term/concept:

Question 1.
E-business.
Answer:
(1) E-business is abbreviated form of electronic business which implies application and use of information and communication technologies (ICT) to conduct and complete all business activities. In 1997, International Business Machines (IBM) used this term. It refers to the use of the web, internet, intranets, extranets, etc. to connect people, process and to conduct business.

(2) The entire process of settling up a website, helping the customers navigate through the website, offering available products, discounts, to attract the prospective buyers, e-business establishes more closer relationship between partners, employees, suppliers and helps companies to manage their business efficiently.

In India, till today most of the business firms are managed as per traditional methods. Now most of the businesses are well aware of benefits of e-business and hence they started incorporating e-business in their business policy and strategy. Google pay, swiggy, ola, ebay are the examples of e-business. Various types of ’e’ business transactions are B2B, B2C, C2B, C2C, B2A, and C2A.

Question 2.
B2B.
Answer:
Business to Business (B2B) : The transactions under B2B include the transactions between one business firm with other business firms. In this type of transactions individual consumers are not involved. In order to get raw materials, catering services, manpower, components of machinery, etc., business firms interact with each other. B2B transactions include supplying ancillary parts/components to manufacturers, providing value added services like catering, providing man power, etc. The business must depend upon one another in order to survive.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 3.
B2C.
Answer:
Business to Consumer (B2C) : The transactions under B2C include transactions between business firms and consumers. When consumer identifies a need or requirement, he searches for the product or services to fulfil his need. He then selects a vendor, negotiates the price, receives product or services, makes payment and gets service and warranty claims. The business firms use their website for different range of marketing activities such as sales or product promotion, product information, reviews about the product or service and delivery of the products at doorstep. In order to get more response from the customers, the cost of products and services is kept low through this method and the speed of transaction is faster, e.g. www.flipkart.com, www.yebhi.com, etc.

Question 4.
C2C.
Answer:
Consumer to Consumer (C2C) : The transactions under Consumer to Consumer are between two people. Using e-business facility on internet, the consumers can buy and sell goods and services to other consumers, through some third party. A common consumer posts the product or services for sale with the price and other details online and other consumers tries to buy them. The sites are performing the role of intermediaries, just to match the consumers. For buying and selling, internet allows a lot of space for consumers group to be formed. The consumer forums interact with each other for best variety of goods and services. Through such groups redressal of complaints is also possible. One may sell his products through an online retail space operated by eBay or Yahoo! shopping, etc.

Question 5.
Outsourcing.
Answer:
(1) Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

(2) When services such as security, canteen, sanitation, etc. are outsourced by a company, then the security guards, waiters, cooks, sanitation scavangers, etc. are not the employees of the company although they work inside the company premises. They directly work under the control of service provider or contractor. Many organisations, companies, corporate houses, establishments, hospitals, shops, malls, housing societies, offices, etc. outsource their non-core (less important) areas of business such as canteen, sanitation, security services, etc. to outside agencies.

Question 6.
BPO.
Answer:
(1) BPO stands for Business Process Outsourcing. BPO basically refers to the outsourcing of some work or functions of the organisation to third party or service provider to save overall cost of the organisation. In other words, BPO is a business system in which one company hires another company or service provider to do certain process of work (or task) for certain money consideration.

(2) In brief, BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities to a third party to minimise cost and increase efficiency.

Question 7.
LPO.
Answer:
(1) LPO stands for Legal Process Outsourcing. LPO is a type of KPO that renders legal services ranging from drafting legal documents, performing legal research to offering legal advice. LPO implies practice of law firm. It refers to obtaining legal services from outside legal support service company or law firm for certain consideration.

(2) In some industry or organisation in house legal department or a company outsourced legal work to such law firms where it can be done or performed at less cost. For instance, many companies in Europe or US outsource their legal work to Indian law firms where it can be done at considerably lower cost.

Question 8.
KPO.
Answer:
(1) KPO stands for Knowledge Process Outsourcing. In KPO, the important functions related to knowledge and information are outsourced (assigned to perform) to third party service providers. KPO is the sub-part (Section) of BPO in which services of outside or third party service provider are hired not only for its ability to do particular business process or function but also to provide expertise it has.

(2) KPO is nothing but the allotment of more important or relatively high level tasks or functions to an outside organisation or to a different group specially in a different geographic location. KPO is a subset of Business Process Outsourcing (BPO). KPO implies outsource of more important or core functions or business process to third party service provider or organisation to perform which may or may not reduce its cost of the parent company but surely assists in value addition.

3. Study the following case/situation and express your opinion

Question 1.
Abhay purchases some gift articles online from www.flipkart.com. At the same time Sheetal purchased gift from e-bay.com.

(i) Which website is related to C2C?
(ii) Which website is related to B2C?
(iii) What first step does Abhay need to follow?
Answer:
(i) eBay.com website is related to Consumer to Consumer (C2C).
(ii) www.flipkart.com website is related to Business to Consumer (B2C).
(iii) Before online shopping, Abhay has to register with the www.flipkart.com by filling up a registration form. Registration is the first step in online transaction. Abhay needs to login a particular website to buy particular gift articles.

Question 2.
Satvik purchases watch from Titan shop and his friend Shambhavi purchases watch from online shopping site.

(i) Which shopping is from traditional business?
(ii) Which shopping is from e-business?
(iii) Which business involved high risk ?
Answer:
(i) Purchase of watch by Satvik from Titan shop is an example of traditional business.
(ii) Purchase of watch by Shambhavi from online shopping site is an example of e-business.
(iii) e-business i.e. purchase of watch from online shopping site involves high risk as there is no direct contact between Shambhavi and e-business owner.

Question 3.
Mr. Ved made his payment by cheque at the same time Mr. Shlok made his payment by fund transfer.

(i) Whose payment is faster?
(ii) Whose payment is related to traditional business?
(iii) Whose payment is related to e-business?
Answer:
(i) The payment made by Mr. Shlok by fund transfer is faster than payment made by Mr. Ved through cheque.
(ii) The payment made by Mr. Ved by cheque is related to traditional business.
(iii) The payment made by Mr. Shlok by fund transfer is related to e-business.

4. Distinguish between

Question 1.
Traditional business and E-business
Answer:

Traditional business E-business
1. Meaning Business which is managed and carried out in accordance with specific custom or a trading practice for long time is called traditional business. Business which is managed and carried out by using information technology i.e. the internet is called e-business.
2. Formation Traditional business is comparatively difficult to form as it requires lengthy and complicated procedure to start. E-business is comparatively easy to form.
3. Setting up cost To start, establish and manage traditional business large amount of capital is required. To start, establish and manage e-business very less amount of capital is required.
4. Risk involved In traditional business, less risk is involved as interaction between parties is possible due to personal contact. In e-business, high risk is involved as there is no direct contract between the parties.
5. Scope of business Traditional business is limited to specific area so its scope is limited. E-business covers the entire world so its scope is vast and unlimited.
6. Physical inspection and delivery of goods In traditional business, goods can be inspected physically before they are purchased and their delivery is instant. In e-business, goods cannot be inspected physically before they are purchased and their delivery takes time.

Question 2.
E-business and E-commerce
Answer:

E-business E-commerce
1. Meaning E-business means buying and selling of goods or services along with providing technical or customer support through the internet. E-commerce is the trading aspect of e-business where commercial transaction are done over internet.
2. What is it? E-business is superset of E-commerce. E-commerce is subset of E-business
3. Features E-business involves all types of re-sale and post¬sale efforts. E-commerce just involves buying and selling of products and services.
4. Concept E-business is broader concept. This is because it involves market surveying, supply chain, logistic management and using determining. E-commerce has narrow scope. This is because it is restricted to buying and selling of product and services.
5. Transaction E-business is used in the context of Business to Business (B2B) transactions. E-commerce is more suitable in Business to Consumer (B2C) transactions.
6. Which network is used? E-business includes the use of internet, intranet or extranet. E-commerce involves the compulsory use of internet.

Question 3.
BPO and KPO
Answer:

BPO KPO
1. Meaning BPO implies the outsourcing of non-primary peripheral activities of the organisation to an external organisation to decrease cost and increase efficiency of parent organisation. KPO is a form of outsourcing in which knowledge related and information related work are outsourced to third party service providers to help in value addition and to get cost benefits.
2. Degree of complexity BPO is comparatively less complex. KPO is relatively more complex.
3. Requirement BPO requires process expertise. KPO requires knowledge expertise.
4. Talent required in employees BPO requires personnel having good communication skills. KPO requires professional qualified personnel.
5. Focus on BPO focus on low level process. KPO focus on high level process.

5. Answer in brief

Question 1.
What is Outsourcing? Illustrate with suitable example.
Answer:
(1) Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

(2) When services such as security, canteen, sanitation, etc. are outsourced by a company, then the security guards, waiters, cooks, sanitation scavangers, etc. are not the employees of the company although they work inside the company premises. They directly work under the control of service provider or contractor. Many organisations, companies, corporate houses, establishments, hospitals, shops, malls, housing societies, offices, etc. outsource their non-core (less important) areas of business such as canteen, sanitation, security services, etc. to outside agencies.

(3) Similarly arrangements for wedding, anniversary, birthday celebration, etc. can also be outsourced to such agencies. This is because many a time an organisation cannot handle all the functions or aspects of business process internally. Some processes are temporarily required to be performed. In such cases, organisation does not want to recruit and appoint professionals to perform such tasks. Most of the services require finely tuned skills which organisation cannot provide. With increasing global competition, most of the companies are focussing their attention on the improvement of quality of their products. Hence, they outsource their non-core business areas so that they can concentrate fully on their core business activities.

(4) Outsourcing benefits the organisation in two ways, viz. (i) It helps to reduce overall costs and (ii) It can use the expertise of the specialised agencies to perform certain tasks more efficiently.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 2.
What is BPO? Explain in detail.
Answer:
(1) BPO stands for Business Process Outsourcing. BPO basically refers to the outsourcing of some work or functions of the organisation to third party or service provider to save overall cost of the organisation. In other words, BPO is a business system in which one company hires another company or service provider to do certain process of work (or task) for certain money consideration.

(2) In brief, BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities to a third party to minimise cost and increase efficiency.

(3) It refers to the outsourcing of less important (non-core) or non-primary activities of the organisation to an external organisation or service provider to minimise the cost and increase efficiency of the organisation.

(4) For instance, customer care centres for various banks, service providers, etc. BPO is less complex and requires process expertise. It also requires good communication skills. It focuses on low level process.

Question 3.
What is KPO? Explain in detail.
Answer:
(1) KPO stands for Knowledge Process Outsourcing. In KPO, the important functions related to knowledge and information are outsourced (assigned to perform) to third party service providers. KPO is the sub-part (Section) of BPO in which services of outside or third party service provider are hired not only for its ability to do particular business process or function but also to provide expertise it has.

(2) KPO is nothing but the allotment of more important or relatively high level tasks or functions to an outside organisation or to a different group specially in a different geographic location. KPO is a subset of Business Process Outsourcing (BPO). KPO implies outsource of more important or core functions or business process to third party service provider or organisation to perform which may or may not reduce its cost of the parent company but surely assists in value addition.

(3) Thus, in KPO the business processes which are outsourced are exceptionally more specialised and knowledge based in comparison to Business Process Outsourcings. In brief, KPO is a form of outsourcing in which knowledge related and information related work is done or carried out by the workers working in different company or by a subsidiary of the some organisation which may be in the same country or on off shore location to save cost.

(4) In KPO, both core as well as non-core activities are performed. It requires advanced analytical and technical skills and high degree of specialist expertise. Margarent Rouse defines KPO as, “KPO is the allocation of relatively high- level tasks to an outside organisation or a different group within the same organisation’’

Question 4.
What is LPO? Explain in detail.
Answer:
(1) LPO stands for Legal Process Outsourcing. LPO is a type of KPO that renders legal services ranging from drafting legal documents, performing legal research to offering legal advice. LPO implies practice of law firm. It refers to obtaining legal services from outside legal support service company or law firm for certain consideration.

(2) In some industry or organisation in house legal department or a company outsourced legal work to such law firms where it can be done or performed at less cost. For instance, many companies in Europe or US outsource their legal work to Indian law firms where it can be done at considerably lower cost.

(3) In recent years, LPO an high end industry has been growing rapidly in India. LPO is superficially a media invention which is derived from BPO. LPO has made tremendous progress in India in past few years.

(4) LPO gained success by producing and rendering services such as document review, legal research and writing, drafting of briefings, etc. Important benefits of outsourcing legal functions is cost savings and to access high level talent and niche expertise that may not exist within the firm or company.

6. Justify the following statements

Question 1.
It is easy to set up e-business as compared to traditional business,
Answer:
(1) e-business is run, managed and carried out with the help of information technology, i.e. web (internet). However, traditional business is run, managed and carried out in accordance with specific old custom or a trading practices of long lasting.

(2) In traditional business large, physical space is needed, to arrange and display the variety of goods. It needs large amount of capital to have infrastructure, staff and other required facilities, e-business can be started, managed and operated with the help of the internet from any place or even from one’s own home. Naturally, it requires very less capital. It is also easy to set up.

(3) In traditional business, time is required to travel, to convince, to negotiate and to interact with the customers. In such process lot of time, energy and money are wasted. While in e-business required information is provided and accepted with terms and conditions more instantly.

(4) e-business is also free from most of the problems as faced by the traditional business. Thus, it is easy to set up e-business.

Question 2.
E-business allows user to work across the globe in any field.
Answer:
(1) e-business i.e. electronic business may be defined as the application of information and technologies to support all the activities of business. It involves electronic buying and supply, chain management, processing orders electronically, online payments via debit or credit cards, handling customer service, etc.

(2) In order to begin with e-business, a business owner must have an internet presence. He has to obtain an e-mail address for communicating the same to the customers and other business associates. This helps speedy communication between business firms and customers. Communication is easy as there is no face to face interaction.

(3) Once the owner of e-business has acquired an electronic means of contact, he may sell goods to the customers residing in any part of the world. There is no need of any wholesalers, retailers, etc. This reduces costs and increases profit. In e-business, goods can be purchased on internet from any place across the globe, payments can be made with the help of debit, credit card, internet banking and the goods are physically delivered at the doorstep of the buyer.

(4) Similarly, he can do trading in any field, e-business uses internet to connect people and processes. The World Wide Web (WWW) offers lot of exposure to e-business on a global platform. International relationship is very strong in e-business. The Government also offers lot of support to e-business. Thus, it allows one to work across the globe in any field he likes.

Question 3.
Online transaction is done with the help of the internet.
Answer:
(1) Online transactions take place when a process of buying and selling are completed through the internet. For online transaction, registration is required. The consumer needs to login a particular website to buy a particular article or service. The customer’s email ID, name, address and other details are saved and safe with the website for further contact.

(2) When a customer likes a product or service, he/she selects, pick ups and drops the items or things in the shopping cart. The shopping cart keeps the systematic and detail record of what items have been picked up while browsing the online store.

(3) The buyer then proceeds to the payment option after selecting all the products. Payment can be made by accepting cash on delivery mode of payment, after receiving physical delivery of goods. The customer may pay in cash or by debit or credit card. The buyer also sends a cheque to the seller and the seller sends the products after the realisation of the cheque.

(4) If the payment is transferred by the buyer from his account to the seller’s account electronically, then after the payment is received by the seller, he sends the goods to buyer. The credit card or debit card is also used by the card holder for. making payment of purchases. The amount gets immediately transferred to vendor’s bank account. After the successful transfer of funds, goods are delivered by the vendor to buyer. Thus, all the aspects of online transaction are completed with the help of the internet.

7. Attempt the following

Question 1.
What are the advantages and disadvantages of e-business?
Answer:
[A] Advantages of e-business : The advantages of e-business are explained as follows:
(1) Ease of formation : In comparison to the traditional method of business, e-business is very easy to set up. The advent of internet has afforded entrepreneurs the ability to open small businesses with a minimal overhead.

(2) Lower investment requirements : As compared to traditional business, the investment requirements of e-business are very low. This is because for conducting e-business, the entrepreneurs do not need a large store or professional space, e-business can be managed with minimum manpower. If entrepreneurs have good contact (network), they can do extremely good business with less investments.

(3) Convenience : In e-business, seller and buyer get advantages of internet platform. Internet offers the convenience of 24 × 7 × 365 days a year to both buyer and seller. Business can be done any time with great flexibility. Truly speaking, e-business has enabled and enhanced by electronics. It offers benefits of accessing anything, anytime and from anywhere.

(4) Speed : Web facilitates direct communication between the seller and buyer. It helps the customer to direct or point out his needs and expectation. Similarly, using website seller can show the available products, offer discount and do everything 1 possible to sell his products. Thus, much of buying or selling involves exchange of information through internet at the click of mouse.

(5) Global access : Truly speaking, internet is boundaryless. Internet facilitates and allows the seller an access to the national as well as global market. Internet also offers freedom to buyer to select products from any part of world. There is no need of face to face interaction between buyer and seller. All the things are completed by using internet.

(6) Movement towards a paperless society : Use of internet has considerably reduced its dependence on the paperwork. Due to use of internet, recording and referencing of information are very easy and less time consuming.

(7) Government support : In e-business transactions, cost reduction and availability of products at relatively low prices are possible. This is beneficial to society at large. Hence, government always supports or favours e-business by providing favourable environment for establishing e-business. This support facilitates maximum transparency in the business.

(8) Easy payment : The payment in e-business can be done by credit card, debit card, fund transfer, etc. These facilities are available round the clock.

[B] Disadvantages of e-business : The disadvantages of e-business are explained as follows:
(1) Lack of personal touch : Before buying the products most of the customers want to see, handle, touch, inspect or test the products which is not possible in e-business system. Because of this reasons, most of the customers do not look for online purchase of products on the internet.

(2) Delivery time : In e-business, the delivery of products takes considerable time. In traditional business, immediate delivery of products is given to buyer after he buys the products. The considerable time lag discourages the customer to buy products from e-business. Now a days most of the e-business assures one day delivery. This improvement does not solve the issue completely.

(3) Security issues : The scam through online business by many people cannot be denied. It is also easier for hackers to obtain one’s financial details which can be misused for their personal gain. Thus, online business has less security and integrity issues. Because of these reasons the potential buyers are also discouraged to buy anything from e-business.

(4) Government interference : Many a time, the government monitors, interferes and controls the e-business system. This may put a great hurdle on its growth and prosperity.

(5) High risk : In e-business system, transaction risks such as supply of inferior quality of goods, supplied products do not match with the sample shown, high prices, defects in products, cheating, etc. cannot be denied. In case of any fraud, it becomes very difficult to take legal action due to lack of direct contact between the parties.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

Question 2.
What are the types of e-buslness? Explain.
Answer:
The types of e-business is shown in the following:
e-business-

  1. Business to Business (B2B)
  2. Business to Consumer (B2C)
  3. Consumer to Business (C2B)
  4. Consumer to Consumer (C2C)
  5. Business to Administration (B2A)
  6. Consumer to Administration (C2A)

The type of e-business are explained as follows:
(1) Business to Business (B2B) : The transactions under B2B include the transactions between one business firm with other business firms. In this type of transactions individual consumers are not involved. In order to get raw materials, catering services, manpower, components of machinery, etc., business firms interact with each other. B2B transactions include supplying ancillary parts/components to manufacturers, providing value added services like catering, providing man power, etc. The business must depend upon one another in order to survive.

(2) Business to Consumer (B2C) : The transactions under B2C include transactions between business firms and consumers. When consumer identifies a need or requirement, he searches for the product or services to fulfil his need. He then selects a vendor, negotiates the price, receives product or services, makes payment and gets service and warranty claims.

The business firms use their website for different range of marketing activities such as sales or product promotion, product information, reviews about the product or service and delivery of the products at doorstep. In order to get more response from the customers, the cost of products and services is kept low through this method and the speed of transaction is faster, e.g. www.flipkart.com, www.yebhi.com, etc.

(3) Consumer to Business (C2B) : Consumer to Business is rapidly growing where the consumer demands or requests a specific service from the business lender. In this transaction, buyers quote their own price for specific product or services. A consumer who is in need of product or services posts his request with a specific budget. The companies interested in providing services or products review the customer’s requirement, negotiate price and finalise the deal. Pest control service, doorstep food delivery, taxi services, etc. are the examples of Consumer to Business transaction.

(4) Consumer to Consumer (C2C) : The transactions under Consumer to Consumer are between two people. Using e-business facility on internet, the consumers can buy and sell goods and services to other consumers, through some third party. A common consumer posts the product or services for sale with the price and other details online and other consumers tries to buy them. The sites are performing the role of intermediaries, just to match the consumers.

For buying and selling, internet allows a lot of space for consumers group to be formed. The consumer forums interact with each other for best variety of goods and services. Through such groups redressal of complaints is also possible. One may sell his products through an online retail space operated by eBay or Yahoo! shopping, etc.

(5) Business to Administration (B2A) : The transactions under Business to Administration are between the business and public administration. This part of e-commerce entirely includes all transactions conducted online between firm at one end and public administration on the other end. For instance, registration of companies, filing returns, payment of taxes, getting permits, etc.

(6) Consumer to Administration (C2A) : The transactions under Consumer to Administration are between the Consumer and Public Administration. This part of e-commerce includes entirely all transactions conducted online between consumer at one end and public administration on the other end. For instance, obtaining passport, aadhaar card, licenses, etc.

Question 3.
What are the advantages of outsourcing?
Answer:
Advantages : The advantages of outsourcing are explained as follows:
(1) Overall cost advantages : Outsourcing reduces cost. Outsourcing avoids the need to hire employees in houses. Hence, recruitment and training costs can be eliminated or minimised. It S also saves time and efforts on training the employees. Similarly, cost of outsourcing services is much less than recruiting work force for the company.

(2) Stimulates entrepreneurship, employment and experts : Outsourcing encourages and stimulates entrepreneurship, employment and expertness in the country from where outsourcing is done.

(3) Low manpower cost : In every organisation manpower is required to operate machineries, to do routine work, to perform jobs, to administer and manage business affairs. Recruitment and appointment of personnel on permanent basis are costly. Manpower through outsourcing is available at a lower cost. Outsourcing is beneficial in some portions of business process.

(4) Access to professional, expert and high quality services : Usually the non-core areas or tasks are given to the people who are expert, specialised and skilled in that particular field. These people provide better level of services. They commit less errors and avoid wastage and misuse.

(5) Emphasis on core process rather than the supporting ones : Outsourcing supporting the business processes, facilitates the organisation to concentration on its core (more important) areas to improve the quality of its products and services. This in turn leads to better profits and increase output and turnover.

(6) Investment requirements are reduced : By outsourcing the non-core areas, the organisation can easily save on investing in the latest technology. These organisation allow the outsourcing partners to handle the entire infrastructure. Thus, the organisation itself is required to manage only remaining portion of business process. Hence, investment requirements of the organisation are very less.

(7) Increased efficiency and productivity : Many a time tasks are outsourced to the vendors who are specialised in their fields. Outsourced vendors have deep knowledge, experience, specific equipment and technical expertise. They give performance or do assigned task much better than the ones at the outsourcing organisation. As a result the tasks can be completed faster, with greater efficiency and with better quality output.

(8) Knowledge sharing : Most of the times tasks are outsourced to the vendors who are specialised and expert in their fields. While working together outsourced partners (vendors) share their knowledge, experience, technical expertise, etc. with the employees of the organisation. This is one of the prime advantages of outsourcing. Organisation also uses and shares particular kind of service. Thus, outsourcing helps to develop both the companies and also boosts goodwill in the industry.

Question 4.
What are the disadvantages of outsourcing ?
Answer:
Disadvantages of outsourcing : The disadvantages of outsourcing are explained as follows:
(1) Lack of customer focus : An outsourced vendor may be catering to the expertise needs of several companies at a time. In such cases, the vendors may lack complete focus on outsourcing company’s needs or tasks. As a result, the quality of the outsourced service may not be up to the mark.

(2) A threat to security and confidentiality : When an organisation outsources some portions of business process, it involves a risk of exposing its confidential information to a third party. Similarly, there is danger of the misuse of company’s confidential information by the contractors. So outsourcing involves security issues.
(3) Dissatisfactory services : In case the organisation does not select right partner for outsourcing, it has to face several problems such as substandard quality output, delayed delivery, inappropriate categorisation of responsibilities, etc. It has to compromise on the quality of outsourcing.

(4) Ethical issues : In some cases, the company outsourcing its non-core areas, ignores ethical issues related to outsourcing. When the functions of the organisation are outsourced to a company from another country, the employment opportunities from one’s own country get reduced, which in turn aggravates the unemployment problem.

(5) Other disadvantages :

  1. Misunderstanding of contracts ultimately creates many problems for the organisations.
  2. Lack of effective communication also creates many problems to the organisations outsourcing their functions.
  3. Some times the quality of the outsourced service is not up to the mark, poor and delayed services. In such cases company has to suffer heavy loss on account of wastage.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

8. Answer the following

Question 1.
Explain the steps involved in online transaction.
Answer:
In online transaction there are three stages, viz. pre-purchase/sale, actual purchase/ sale and delivery stage. Online transaction involves the following steps:
(1) Registration : Registration is compulsory for online transactions. One who wants to do online shopping is required to register his name with online vendor by filling up a registration form. The consumer is required to login a particular website. The customer’s details such as email ID, name, address and other information are saved and are safe with the website along with a ‘Password’ relating to the registered ‘account’ and ‘Shopping cart’. To avoid misuse by anyone ‘Account’ and ‘Shopping Cart’ are password protected.

(2) Placing an order : The online shopper can select, pick up and drop the items or things in the shopping cart. The shopping cart keeps the systematic and detail record of what items or things have been picked up, quantity to be bought, the price of each product while browsing the online store. After confirmation, the customer or shopper has to choose a payment option.

(3) Payment : Making payment is the last step in online transaction. The buyer is required to select the payment option. The payment systems in online transactions are secured with very high level encryption. Because of these arrangements, the personal financial information gets completely secured. Payment can be made in one of the following ways:
(i) Cash on Delivery (COD) : According to Cash on Delivery mode of payment, after receiving physical delivery of goods, payments is effected at the doorstep of the customer. The customer can make payment in cash or through debit or credit card.

(ii) Cheque : Under this mode of payment, the S vendor collects the cheque from the customer and j after realisation of the cheque, delivery of the goods is given to the buyer.

(iii) Net banking transfer : Under this mode, the payment is made by buyer to vendor by transfer of funds through the internet. The buyer transfers the agreed purchase amount to the online vendor’s account. It is an electronic facility i of transferring funds though the internet. After receiving the amount, the vendor delivers the goods to the buyer.

(iv) Credit or Debit Cards : Credit card and Debit card are also called Plastic Money. The vendor gets the amount from the buyer through credit or debit card. The amount gets immediately transferred to vendor’s bank account. After the successful transfer of funds, goods are delivered by the vendor to buyer.

(v) Digital Cash : Digital cash is a form of electronic currency which has no reed physical properties. However, digital cash offers the ability to use real currency in an electronic format.

Question 2.
What is Outsourcing? Explain the advantages and disadvantages of outsourcing.
Answer:
[A] Meaning : Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

[B] Advantages : The advantages of outsourcing are explained as follows:
(1) Overall cost advantages : Outsourcing reduces cost. Outsourcing avoids the need to hire employees in houses. Hence, recruitment and training costs can be eliminated or minimised. It is also saves time and efforts on training the employees. Similarly, cost of outsourcing services is much less than recruiting work force for the company.

(2) Stimulates entrepreneurship, employment and experts : Outsourcing encourages and stimulates entrepreneurship, employment and expertness in the country from where outsourcing is done.

(3) Low manpower cost : In every organisation manpower is required to operate machineries, to do routine work, to perform jobs, to administer and manage business affairs. Recruitment and appointment of personnel on permanent basis are costly. Manpower through outsourcing is available at a lower cost. Outsourcing is beneficial in some portions of business process.

(4) Access to professional, expert and high quality services : Usually the non-core areas or tasks are given to the people who are expert, specialised and skilled in that particular field. These people provide better level of services. They commit less errors and avoid wastage and misuse.

(5) Emphasis on core process rather than the supporting ones : Outsourcing supporting the business processes, facilitates the organisation to concentration on its core (more important) areas to improve the quality of its products and services. This in turn leads to better profits and increase output and turnover.

(6) Investment requirements are reduced : By outsourcing the non-core areas, the organisation can easily save on investing in the latest technology. These organisation allow the outsourcing partners to handle the entire infrastructure. Thus, the organisation itself is required to manage only remaining portion of business process. Hence, investment requirements of the organisation are very less.

(7) Increased efficiency and productivity : Many a time tasks are outsourced to the vendors who are specialised in their fields. Outsourced vendors have deep knowledge, experience, specific equipment and technical expertise. They give performance or do assigned task much better than the ones at the outsourcing organisation. As a result the tasks can be completed faster, with greater efficiency and with better quality output.

(8) Knowledge sharing : Most of the times tasks are outsourced to the vendors who are specialised and expert in their fields. While working together outsourced partners (vendors) share their knowledge, experience, technical expertise, etc. with the employees of the organisation. This is one of the prime advantages of outsourcing. Organisation also uses and shares particular kind of service. Thus, outsourcing helps to develop both the companies and also boosts goodwill in the industry.

Maharashtra Board OCM 12th Commerce Solutions Chapter 5 Emerging Modes of Business

[C] Disadvantages of outsourcing : The disadvantages of outsourcing are explained as follows:
(1) Lack of customer focus : An outsourced vendor may be catering to the expertise needs of several companies at a time. In such cases, the vendors may lack complete focus on outsourcing company’s needs or tasks. As a result, the quality of the outsourced service may not be up to the mark.

(2) A threat to security and confidentiality : When an organisation outsources some portions of business process, it involves a risk of exposing its confidential information to a third party. Similarly, there is danger of the misuse of company’s confidential information by the contractors. So outsourcing involves security issues.
(3) Dissatisfactory services : In case the organisation does not select right partner for outsourcing, it has to face several problems such as substandard quality output, delayed delivery, inappropriate categorisation of responsibilities, etc. It has to compromise on the quality of outsourcing.

(4) Ethical issues : In some cases, the company outsourcing its non-core areas, ignores ethical issues related to outsourcing. When the functions of the organisation are outsourced to a company from another country, the employment opportunities from one’s own country get reduced, which in turn aggravates the unemployment problem.

(5) Other disadvantages :

  1. Misunderstanding of contracts ultimately creates many problems for the organisations.
  2. Lack of effective communication also creates many problems to the organisations outsourcing their functions.
  3. Some times the quality of the outsourced service is not up to the mark, poor and delayed services. In such cases company has to suffer heavy loss on account of wastage.

Maharashtra Board OCM 12th Commerce Solutions Chapter 4 Business Services

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 4 Business Services Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 4 Business Services

1. (A) Select the correct option and rewrite the sentence.

Question 1.
Door to door service is provided by …………….. transport.
(a) railway
(b) road
(c) air
Answer:
(b) road

Question 2.
…………….. creates time utility.
(a) Warehouse
(b) Transport
(c) Communication
Answer:
(a) Warehouse

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
…………….. warehouses provide facilities for perishable commodities.
(a) Bonded
(b) Cold storage
(c) Government
Answer:
(b) Cold storage

Question 4.
……………. policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time.
(a) Port risk
(b) Voyage
(c) Floating
Answer:
(a) Port risk

Question 5.
Principle of …………….. is not applicable to life insurance.
(a) insurable interest
(b) utmost good faith
(c) indemnity
Answer:
(c) indemnity

1. (B) Match the pairs.

Question 1.

Group A Group B
(A) Air Transport (1) Time utility
(B) Warehousing (2) Intangible in nature
(C) Money remittance (3) Fastest mode of transport
(D)  Pipeline Transport (4) April,2019
(E) Business Service (5) Western Union Money Transfer
(6) Fixed deposit account
(7) Petroleum and gas
(8) Tangible
(9) Place utility
(10)  Savings account

Answer:

Group A Group B
(A) Air Transport (3) Fastest mode of transport
(B) Warehousing (1) Time utility
(C) Money remittance (5) Western Union Money Transfer
(D)  Pipeline Transport (7) Petroleum and gas
(E) Business Service (2) Intangible in nature

1. (C) Give one word/phrase/term for the following sentence.

Question 1.
These warehouses are owned, managed and controlled by central and state governments or public authorities.
Answer:
government warehouse

Question 2.
An art of exchanging ideas, facts, information etc. from one person or entity to another.
Answer:
Communication

Question 3.
A rail system in which the track consists of a single rail or a beam.
Answer:
monorail

Question 4.
A transport system used to carry petroleum and gases.
Answer:
pipeline transport

Question 5.
A ministry who looks after development of surface transport throughout country.
Answer:
Ministry of Road Transport and Highways

1. (D) State whether following statements are true or false.

Question 1.
Business services are important for the growth of business.
Answer:
True

Question 2.
Current Account is opened by salaried persons.
Answer:
False

Question 3.
NEFT stands for National Electric Fund Transfer.
Answer:
False

Question 4.
Air transport is cheapest mode of transport.
Answer:
False

Question 5.
The Internet is the global system of interconnected computer networks that use the internet protocol suite to link devices worldwide.
Answer:
True

1. (E) Find the odd one.

Question 1.
Primary credit co-operative society, state co-operative bank, district co-operative bank, exchange bank.
Answer:
exchange bank

Question 2.
NABARD, RBI, SIDBI, EXIM.
Answer:
RBI

Question 3.
Direct mail, Logistics post, Business post, Parcel
Answer:
Parcel

Question 4.
Endowment policy, Whole life policy, Money back policy, Blanket policy.
Answer:
Blanket policy.

1. (F) Complete the sentence.

Question 1.
The term bank comes from the French word …………….. .
Answer:
Banco

Question 2.
…………….. warehouses provide facilities for perishable commodities
Answer:
Cold storage

Question 3.
In ……………… policy, several ships belonging to one owner are insured under the same policy.
Answer:
fleet

Question 4.
…………….. banking refers to the use of banking services with the help of mobile phones.
Answer:
Mobile

1. (G) Select the correct option and complete the following table.

(RTGS, SIDBI, apex financial institution in banking industry of country, recurring deposit, long term loans)

Group A Group B
A. …………… fund transfer on real time and gross basis
B. loans to meet long term capital requirements ……………
C. …………… Account  operated  by  salaried  and businessmen both.
D. Central bank ……………
E. …………… Principal financial institution for MSMEs

Answer:

Group A Group B
A. RTGS fund transfer on real time and gross basis
B. loans to meet long term capital requirements long term loans
C. Recurring Deposit Account  operated  by  salaried  and businessmen both.
D. Central bank apex financial institution in banking industry of country
E. SIDBI Principal financial institution for MSMEs

1. (H) Answer in one sentence

Question 1.
What is debit card?
Answer:
A debit card is a card which is used by the cardholders to make purchases and avail of services at different places without making cash payment but payment is deducted from or debited to the account of the debit cardholders immediately.

Question 2.
What is ‘subject matter’ In insurance?
Answer:
‘Subject matter’ In Insurance refers to life, property, cargo or ship, etc. which is Insured against whose insurance policy Is taken.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
What is government warehouse?
Answer:
The warehouses which are owned. managed and controlled by the Central and State Governments or public authorities to assist small farmers, businessmen, traders in storing goods at nominal charges are called government Warehouses.

Question 4.
What is air transport?
Answer:
The mode of transport which is operated above the surface of the earth and carries goods and passengers through airways by using different aircrafts Is called air transport.

Question 5.
What is communication?
Answer:
The term ‘communication’ means any exchange of Ideas, facts, information, messages. feelings and emotions among two or more persons in a way that they share common understanding about it.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
Overdraft facility is available for savings bank account holder.
Answer:
Current

Question 2.
Services are tangible in nature.
Answer:
Intangible

Question 3.
Insurance helps to maximize the risks in the business.
Answer:
Minimise

Question 4.
The foreign bank is the apex financial institution in banking industry in the country.
Answer:
Centrals

Question 5.
RTGS stands for Reasonable Time Gross Settlement.
Answer:
real

1. (J) Arrange in proper order.

Question 1.
Claim, Accident, Taking the policy, Compensation.
Answer:
Taking the policy, Accident, Claim, Compensation

Question 2.
Email, Inland letter, Courier
Answer:
Inland letter, Courier, E-mail

2. Explain the following terms/concepts.

Question 1.
Transport
Answer:
(1) Service or facility which creates physical movement of men, materials, goods. animals. etc. from one place (location) to another is called transport. Transportation can be defined as a means of carrying or transferring goods. people, animals, material. etc. from one place to another.

(2) Usually transportation is carried through various modes like land transport (i.e Railways and Roadways), water transport and air transport. It brings mobility both to human resources and physical resources. Transport plays key role in nations economy and economic development. After 1991, in India. development of infrastructure within the country has made progress at rapid rate and today there are different modes of transport operated in India. Transport helps in production. expands market, create place utility in goods and services, brings stability to prices, creates employment opportunities, improves standard of living of the people, provides help during emergency and facilitates economic development.

Question 2.
Communication
Answer:
(1) The term ‘communication’ means any interchange of ideas, messages, facts, information, feelings and emotions among two or more persons In a way that they share common understanding about it. It Is a process of giving away or passing on any information by any person to some other person with the help of some medium. Thus, receiver after receiving the message understands it in the desired form and acts accordingly.

(2) Means of communication consist of magazines, newspaper, post and telegraphs. telephone. Internet, e-mail, television, etc. Communication facilitates transmit business Information more quickly among the businessmen. The difficulty of distance is effectively solved by various means of communication. Effective communication facilitates the development and growth of domestic and international markets which bring prosperity to the country.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
Banking
Answer:
(1) The term ‘Bank’ Is derived from the French word ‘Banco’ which means a ‘bench’. In olden days, moneylenders used to display coins and currencies on the tables or benches for the purpose of lending or exchanging. An organisation which is dealing with money is called bank. An institution offering certain financial services such as the safe keeping of money and lending money to needy people is called Bank.

(2) According to the Indian Banking Regulation Act, 1949, bankIng company means “any company which transacts the business of banking in India.” The word banking has defined further as “acceptingfor the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawable by cheques. drafts, order or otherwise.” Bank accepts deposits repayable on demand by cheques or drafts and lends or invests the surplus money as a part of normal business. It makes a profit by accepting deposits at a lower rate of Interest and lending money at a higher rate of Interest.

Question 4.
Insurance
Answer:
(1) Business involves various risks like accident, fire, theft, flood, cyclone, etc. It is very difficult for a trader to bear risks of loss. Similarly, human life is subject to various risks such as death by accident, premature death, etc. The specialised agency called insurance company has emerged to provide financial protection against the possible loss due to the happening of such events. Insurance company gives financial protection by charging certain amount as a premium. It. is a risk management, primarily meant to hedge or for compensating against the risk of a contingent or uncertain loss.

(2) Insurance is a contract between two parties whereby one of them (the insurer) agrees in return for a premium to indemnify the other (the insured) against a monetary loss that may be suffered by the other on the happening of some specified event. According to Insurance Act of 1938, “Insurance Is defined as, “A provision which a prudent man makes against inevitable contingencies”.

Question 5.
Warehousing
Answer:
(1) Warehousing means storing of goods in a godown to hold them in stock from the time of production or purchase till the time of their sale. It is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. One of the marketing processes or a group activity is to hold the goods in stock from the time of production till the time of consumption. When storage of goods is required to be arranged on a large scale In a specified manner, it is called warchousing’. Warehouse means a building in which especially retail goods are stored.

(2) Warehousing is defined as “an establishment for the storage of or accumulation of goocis.’ Warehousing gives protection to goods and helps businessmen to raise finance. It facilitates and provides space for grading. branding and processing. It creates time utility and help in price stabilisation of goods. Thus, warehousing implies a group of activities connected with the storing and preserving of stored goods from the time of their production or purchase till the Urne of their sale or consumption.

3. Study the following case/situation and express your opinion.

Question 1.
Ms. Harshali has started new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amount in her business account. At the same time she used to pay various payments from this account only.

(i) Identify Type of account maintained by Ms. Harshali.
(ii) Suggest any one modern way of money transfer to Ms.Harshali.
(iii) State any one facility she gets on her bank account?
Answer:
(i) Ms. Harshali is a businesswoman and hence she has maintained current account to suit the needs of her business.

(ii) NEFT which stands for National Electronic Funds Transfer is the one of the modern ways of transferring fund (money) from one branch to another branch or from one bank to another bank safely can be suggested to Ms. Harshall to transfer money.

(iii) Ms. Harshali gets overdraft facility on her current account.

Question 2.
Mr. Jagan is a salaried person. He wants to take policy for his two children which assures them protection as well as completes their financial needs once they become major by age.

(i) Suggest him a policy which can satisfy requirements of his children.
(ii) Who are beneficiaries of policy?
(iii) In above case which principle is involved?
Answer:
(i) Mr. Jagan. a salaried person should take “Child Insurance Policy” to satisfy the financial requirements of his children.
(ii) In child insurance policy, children of the insured person are the beneficiaries.
(iii) In the above case, principle of Insurable interest is involved.

Question 3.
Mr. Sharan is successful manufacturer. He is having production units at various locations. He is having multiple production units, he has large stock of raw material and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He also requires to transfer raw material and finished goods from one unit to other but does not have any facility for that. He also requires funds for expansion.

(i) Name the service which will help him to safeguard goods from any damage?
(ii) Which service will help him to remove difficulty of place?
(iii) From which service sector will he get financial support?
Answer:
(i) Warehousing’ is the service that helps Mr. Sharan to safeguard his goods from any damage.
(ii) Transport service will help Mr. Sharan to remove the difficulty of place.
(iii) Mr. Sharan will get financial support from Banking sector.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 4.
Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.

(i) Can Mr. Amit take a life insurance policy for his wife and 2 children?
(ii) Can Mr. Amit take a marine insurance policy for his factories?
(iii) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?
Answer:
(i) Mr. Amit can take whole life policy or term insurance policy for his wife and child insurance policy or money back policy for his daughters.
(ii) Mr. Amit cannot take marine insurance policy for his factories.
(iii) Mr. Amit can take Floating Fire Insurance Policy for protecting his factories at Pune and Nashik.

4. Distinguish between.

Question 1.
Duty Paid Warehouse and Bonded Warehouse
Answer:

Duty Paid Warehouse Bonded Warehouse
1. Meaning Duty-paid warehouse is a warehouse which stocks on which duty is already paid. Bonded warehouse is the warehouse which stocks goods the goods on which duty is yet to be paid.
2. Location These warehouses are situated near dock area or port. These warehouses are situated within the dock area.
3. Markets Goods stored in duty-paid warehouses are meant mostly for the domestic markets. Goods stored in bonded warehouses are meant mostly for re-export.
4. Supervision These warehouses are free from the supervision of customs authority. However, they are controlled by port authority These warehouses are under the close supervision of customs authority.
5. Delivery Delivery of goods is given only after the payment of rent and service charges of the warehouse. Goods are held in bond and its delivery is given only after the payment of import duty.
6. Ownership This warehouse is owned and managed by the dock (public) authorities. This warehouse is owned by the dock or private authorities.

Question 2.
Central Bank and Commercial Bank
Answer:

Central Bank Commercial Bank
1. Meaning The central bank regulates money supply in the country by exercising control over the commercial banks. A commercial bank accepts deposits from the public, grant loans to businessmen and public.
2. PrInting and Currency The central bank is authorised to print currency notes. The commercial bank is not authorlsed to print currency notes.
3. Acceptance of deposits The central bank does not accept deposit from the public. The commercial bank accepts deposit from general public.
4. Loans The central bank provides loans and advances to banks and other financial institutions. The commercial bank grants loans and advances to businessmen, industry and people.
5. Ownership The central bank is owned and controlled by the Central government of the concerned country. The commercial banks can be owned and controlled by the government as well as private sector organisations.
6. Number There can be only one central bank for the whole country. There is a large network of different commercial banks in the country.

Question 3.
Road Transport and Air Transport
Answer:

Road Transport Air Transport
1. Speed Road Transport vehicles have limited speed particularly over long distances due to rough roads, hilly areas, traffic jams, observation of signaling system, road accidents, etc. Air transport has very high speed. It is fastest mode of transport. It is due to aerial route, no signaling system to observe, straight route, no disturbance in speed, etc.
2. Suitability It is suitable for short distances and for carrying perishable goods such as fruits, fish, vegetables, foodgrains and other consumer goods. Air transport is suitable to carry light, perishable and valuable goods to any part of the world.
3. Door-to-door service It provides door-to-door service. It reaches the goods at the doorsteps of the buyer. It cannot provide door to door services. It carries goods and passengers from one airport to other air port.
4. Cost It requires limited capital investment for construction of roads and their maintenance. It requires relatively huge capital investment in terms of construction of airport, aircraft, runways, air control towers and their maintenance.
5. Means of transport Road transport uses bullock carts, cycles, motor- cycles, autorickshaws, cars, tempos, trucks, buses, etc. Air transport uses aircraft, cargo planes, jets, helicopters, etc.
6. Accidents Chances of accidents are more due to poor road conditions and negligent drivers. Changes of accident are very less because maintenance and appointment of expert and trained pilots.

Question 4.
Life Insurance and Marine Insurance
Answer:

Life Insurance Marine Insurance
1. Meaning Life insurance is a contract whereby the insurance company in consideration of a premium, undertakes to pay a certain sum of money either on death of assured person or on maturity of policy whichever is earlier. Marine insurance is a contract of indemnity against loss or damage to cargo (goods) or ships arising due to perils of sea.
2. Who takes it? Life insurance policy is usually taken by an individual for his own life or for the benefit of his family members. Marine insurance policy is taken by importers, exporters and shipping companies.
3. Subject-matter In life insurance, the life of the insured person is a subject-matter. In marine insurance, goods lying in the ship, cargo and freight are the subject-matter.
4. Period Life insurance is usually a long term contract, usually more than ten years or even death. Marine insurance is usually for a short period which may range from one month to a year.
5. Principle of Indemnity The principle of indemnity is not applicable to life insurance contract because life of human being cannot be valued in terms of money for calculating actual loss. The principle of indemnity is applicable to marine insurance as insurance company indemnifies the financial loss to bring back insured in the same financial condition that he was before the event.
6. Insurable Interest In life insurance contract, insurable interest must exist at the time of contract. The insurable interest must exist at the time of the contract and also at the time of happening of the event.

Question 5.
Savings Account and Current Account
Answer:

Savings Account Current Account
1. Meaning A savings account is a type of bank account meant for any individual for safe keeping of his money and for making savings. A current account is a type of bank account meant for a businessman or a firm or commercial organisations for facilitating regular trading operations.
2. Facilities The facilities of overdraft and cash credit Eire not given to the saving accountholders. Overdraft and cash credit facilities are given to the current accountholders only.
3. Suitability Saving account is suitable for regular income earners and salaried or wage earners. Current account is suitable for traders, businessmen, commercial organisations and institutions.
4. Restrictions on withdrawal There are certain restrictions on the number of withdrawals and the amount to be withdrawn at a time. There are no restrictions on withdrawal of money from this account as long as there is balance in the account.
5. Interest Interest at low rate is credited monthly, quarterly, half-yearly and yearly basis in this account. No interest is paid in this account.
6. Documents The documents like passbook, balance on SMS, account statement, etc. are provide in this account. Banks provide monthly statement of account every month in this account.

Question 6.
Life Insurance and Fire Insurance
Answer:

Life Insurance Fire Insurance
1. Meaning Life insurance is a contract whereby the insurance company in consideration of a premium, undertakes to pay a certain sum of money either on death of assured person or on maturity of policy whichever is earlier. Fire insurance is a contract of indemnity against loss or damage to goods or property arising from fire or related events.
2. Who takes it? Life insurance policy is usually taken by an individual for his own life or for the benefit of his family members. Fire insurance policy is taken by individuals, property owners or businessmen for their goods and business properties.
3. Subject-matter In life insurance, the life of the insured person is a subject-matter. In fire insurance, the property, assets or goods of the insured is the subject-matter.
4. Period Life insurance is usually a long term contract, usually more than ten years or even death. Fire insurance contract is generally for one year or even for a lesser period.
5. Principle of indemnity The principle of indemnity is not applicable to life insurance contract because life of human being cannot be valued in terms of money for calculating actual loss. The principle of indemnity is applicable to fire insurance contract because the amount of loss of property can be calculated easily. The-amount of loss or the policy amount whichever is less is paid to the insured.
6. Insurable interest In life insurance contract, insurable interest must exist at the time of contract. In fire insurance contract, insurable interest must exist both at the time of taking policy and also at the time of event.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 7.
Road Transport and Rail Transport
Answer:

Road Transport Rail Transport
1. Meaning Road Transport vehicles have limited speed particularly over long distances due to rough roads, hilly areas, traffic jams, observation of signaling system, road accidents, etc. Rail transport operates at a high speed due to mechanical devices, straight railway tracks and absence of obstructions on the railway tracks.
2. Suitability It is suitable for short distances and for carrying perishable goods such as fruits, fish, vegetables, foodgrains and other consumer goods. It is suitable for carrying heavy and bulky goods such as machinery, cotton, coal, etc. for long distances.
3. Door to Door services It provides door-to-door services. It reaches the goods at the doorsteps of the buyer. It cannot provide door-to-door services. It carries goods and passengers from one railway station to another.
4. Carrying Capacity It has limited carrying capacity. It has large carrying capacity.
5. Cost of construction and maintenance It requires relatively less capital investment in terms of construction of roads and their maintenance. The cost of construction and maintenance of trains, railway tracks and stations is very high.
6. Transport charges Transport charges are not fixed but they are usually high due to increase in fuel charges. Transport charges are fixed according to the distance and they are relatively low.

Question 8.
Rail Transport and Air Transport
Answer:

Rail Transport Air Transport
1. Speed Railway transport has comparatively low speed. Air transport has very high speed. It is the fastest mode of transport.
2. Carrying capacity Its carrying capacity is very high. Its carrying capacity is comparatively limited.
3. Suitability It is more suitable to carry bulky and heavy goods over long distance. It is suitable to carry light, perishable and valuable goods to any part of the world.
4. Transport charges Transport charges are relatively low. Transport charges are very high.
5. Ownership It is owned only by public sector i.e. the government. It is owned by both public sector as well as private sector.
6. Means of transport It uses passenger trains and goods trains. It uses aircraft, jets, cargo planes, helicopters, etc.

Question 9.
Current Account and Fixed Deposit Account
Answer:

Current Account Fixed Deposit Account
1. Meaning A Current Account is a type of bank account under which there are no restrictions on depositing and withdrawing money. A Fixed Deposit Account is a type of bank account under which fixed amount is deposited for a fixed period of time.
2. Withdrawals There are no restrictions on withdrawal of money from this account as long as there is balance in the account. No withdrawal is permitted before the date of maturity. However, a certain amount by way of loan can be granted against the FDR.
3. Facilities Overdraft and cash credit facilities are given to the current account holders only. Overdraft and Cash credit facilities are not given to the fixed deposit account holders.
4. Rate of interest Generally no interest is paid on the balance standing in this account. Banks offer higher rates of interest. Longer the period, higher will be the rate of interest and vice versa.
5. Duration This account has no fixed duration. It may run as long as the accountholder desires. This account is run for a fixed period after which the amount is repaid along with interest thereon.
6. Receipt Bank provide statement of account at the end of every month to the current accountholders. A Fixed Deposit Receipt (FDR) is issued by the bank to the accountholder.

5. Answer in brief.

Question 1.
State four types of deposits.
Answer:
The different types of deposits are explained below:
(1) Fixed Deposits : Fixed deposit is a type bank account in which certain fixed amount is deposited and kept in the bank for certain fixed period of time bearing fixed interest rate. The rate of interest paid on fixed deposit is higher than the rate of interest paid on other types of deposits. This rate of interest varies with the deposit period. Interest may also be paid periodically or annually. On Premature withdrawal of deposit before maturity date lower rate of interest is given. The deposit holder gets Fixed Deposit Receipt (FDR) issued by the bank. Loan can be obtained against this FDR.

(2) Recurring deposit : Recurring deposit is an account where depositor is required to deposit certain fixed amount at regular interval say monthly for certain fixed period. On the date of maturity, depositor gets the total amount deposited and interest accrued on such deposit amount. Rate of interest paid is higher and varies according to period of time. The depositor is given pass j book to record the entries of deposits, ft is taken by salaried people and businessmen who have regular income.

(3) Demand deposit: The demand deposit is one in which deposited amount is repaid to the accountholder as and when demanded. The amount of money can be withdrawn by the accountholder from the bank by using withdrawal slips, cheques, ATM cards, online transfer, etc.

(4) Savings deposit : A bank account designed for the personal savings is called savings account. The main aim of this deposit account is to inculcate the regular habit of savings among the common people. This account is suitable for those people who have fixed and regular income like salaries, wages, etc. Although there is no restriction on the depositing of money but frequent withdrawals are not permitted by the bank. Interest on balance amount is credited in this account quarterly or half yearly. Pass book, cheque book, balance on SMS, account statement, etc. are provided to the accountholders to know the position of account.

Some banks provide to their accountholders flexi deposit facility which combines the advantages of savings account and fixed deposit account. In case of multiple option deposit account, the excess amount above certain predetermined limit gets automatically transferred from Savings Account to fixed deposit account. Under this type of account, if adequate fund is not available in savings account to honour the cheques, then the funds get transferred automatically from fixed deposit account to savings deposit account.

Question 2.
State four modes of transport.
Answer:
The four modes of transport are explained as follows:
(1) Road transport : Road transport is the oldest mode of transport. It means and includes various means of transport which move on the surface of the earth without the use of railway tracks. Roads are the means which connect people and places on the surface of the land. It provides connectivity on any terrain (land) in comparison to other modes of transport. The different types of vehicles plying on the road include bullock carts, cycles, motor-cycles, autorickshaws, cars, tempos, trucks, buses, etc. They are called means of road transport.

(2) Rail transport : The mode of transport which moves on the surface of the earth with the help of parallel railway tracks is called rail transport. In other words, transportation of goods and passengers over long distances on rail lines through trains is called rail transport. It is an important land transport system of our country. The services of railways are provided by Ministry of Railways. Indian Railways operate different types of trains such as passenger trains, mails, express and cargo or goods trains. Some popular trains run by Indian Railways are Rajdhani Express, Duronto Express, Shatabdi Express, Intercity Express, Vande Bharat Express, holiday special trains, etc. Some luxury trains like Palace on Wheels, Deccan Odyssey, Ramayana Express, Maharaja Express, etc. are run to promote domestic tourism business.

(3) Air transport: The mode of transport which is operated above the surface of the earth i.e., in the sky through airways is called air transport. It has recent origin. Air transport uses different air crafts such as passenger air crafts, cargo aircraft, helicopters, etc. to carry the goods and passengers through airways at distant places. As compared to other modes of transport, air transport has fastest speed. It does not provide door to door services. Air transport is convenient mode in hilly or mountainous areas where other modes of transport cannot reach. It is also suitable mode of transport in emergency situations like war, natural calamities, etc. Air transport is classified into domestic and international air transport. The different national and international private and public sector airways companies are giving services.

(4) Water transport: The mode of transport which is carried out on the surface of water is called water transport. It represents transport facilities in water. It is the cheapest mode of transport. Water transport carries passengers and goods to different places on water ways by using various means like boats, steamers, launches, ships, etc. Water transport can be sub-divided into two categories viz. inland water transport which carries goods and passengers within the country and ocean transport which carries goods and passengers on ocean, sea route. In India, the Ministry of Shipping takes care of development of ocean transport.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 3.
State four life insurance policies.
Answer:
The different types of life insurance policies are explained as follows:
(1) Whole Life Policy : Under this policy, whole life of a person is insured and that he is required to pay premium up to his death. The policy holder (assured) cannot get any benefits i.e. money from insurance policy till he is alive. After his death, the amount of the policy is paid to his nominee or to the legal heir. Such a policy is meant for making a provision for the dependents of the assured. The rate of premium is usually low.

(2) Endowment Insurance Policy : An endowment insurance policy is for a specific period and the amount of such a policy along with bonus is paid after the maturity to the assured himself or on the death of the assured to the nominee or his dependents whichever is earlier.

(3) Term Insurance Policy : This type of policy is issued for a specific period. Premium is very low, fixed and remains unchanged during the term of the policy. In case of untimely death of assured, the nominee or dependents are paid the benefit amount mentioned in the insurance policy.

(4) Annuity Policy : Under this policy, insured has to pay the premium in lump sum or in instalments over certain number of years. After that, a certain amount is paid to the assured ; regularly on monthly basis for fix period or up to his death. It is similar to pension payment scheme.

(5) Money back Policy : Under this policy, the policyholder is paid regular or pre-determined percentage of the sum assured after every 10 years or 5 years during life time of policy and also provided the benefit of full sum assured to the nominee or dependents in the event of untimely death of the assured. Usually money back policy is available for 12 years, 15 years, 20 years, 25 years, etc.

Question 4.
State any four features of business services.
Answer:
The features of business services are explained as follows:
(1) Intangibility : Business services are intangible in nature. This is because business services cannot be seen, touched and smelt. They are not physical or material product. For instance, the building of the insurance company can be seen but insurance services offered by such company cannot be seen. People can avail of the benefits of insurance services although they are intangible in nature. On account of intangibility, services cannot be demonstrated as like goods. Hence services providers have to provide quality services to create good impression on the customers.

(2) Inseparability: One of the important features of business service is that the service and service provider cannot be separated from each other. At the time of rendering the services to the customers, the presence of service provider is must, e.g. medical treatment given by doctor to patient. In the case of services, production and its use (consumption) take place simultaneously.

(3) Inconsistency : Business services are heterogeneous i.e. they are not identical or exactly similar in all cases. They may differ from one person to another and from one place to another although service provider remains same. In fact, business services are heterogeneous, e.g. the services of a salesman in a Mall may have good impact on one customer and may not be liked by another customer.

(4) Perishability : Business services are perishable in nature. Hence, they cannot be stocked. The production and consumption (use) of services cannot be separated because services cannot be stored for future consumption. Since business services are intangible and perishable, there can never be inventory of services. Unlike products services cannot be stored for future sale, e.g. vacant seats of a morning bus from Mumbai to Pune cannot be utilised for evening trip of the same bus.

(5) Non-transferability : Business services are non-transferable in nature. The ownership of business services cannot be exchanged. We can exchange the ownership of products but not of services. A lady goes to a beauty parlour and hires services of the beautician by paying the fees. The lady cannot buy the ownership as its ownership remains with the beautician. If she needs such services again, she has to go to the beauty parlour and pay the beautician again for her services.

(6) Consumer participation : The participation of consumer is important for services. The seller or service provider will not be able to provide its services in absence of a consumer and vice versa. So, the presence or participation of both is necessary.

Question 5.
State money remittance services of postal department.
Answer:
Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

6. Justify the following statements.

Question 1.
Air transport is fastest mode of transport.
Answer:
(1) The mode of transport which is operated above the surface of the earth i.e. in the sky through airways is called air transport. For carrying passengers and goods, air transport uses different aircrafts such as passengers aircrafts, cargo aircraft, helicopters, etc.

(2) Among the means of transport available at present, air transport is the fastest and the quickest means of transport. It uses natural ways and no separate construction of routes is required. It is also due to use of modern and advanced technology and highly qualified and professional technicians. Thick forests, high mountains, vast deserts and oceans cannot obstruct its speed and air routes.

(3) Air transport adopt shortest route to reach destination. It has faster speed without any disturbance of observing signal system speed. Air transport is useful to provide valuable services in hilly and mountainous areas, in situations like war and areas affected by natural calamities such as floods, cyclones, earthquakes, etc.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 2.
Communication is essential for growth of business.
Answer:
(1) Exchange of ideas, facts, information etc. from one person to another is called communication. It is a process of transfer of information from one place to another or from one person to another with the help of some medium. Means of communication comprise magazines, newspapers, post and telegraphs, radio and television, telephone, internet, e-mail, etc. Communication is essential for growth of business, which include industry, commerce, trade, etc.

(2) The difficulty of distance is effectively solved by various means of communication. Communication helps to transmit business information more quickly among the businessmen. Effective communication facilitates carrying required raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. The communication also helps to carry finished products from the place of production to the places of consumption as well as market.

(3) Communication helps to make goods and services available wherever they are demanded. It helps to widen the market. Effective communications facilitates the development and growth of domestic and international market and bring prosperity to the country.

(4) Effective communication facilitates the reduction in the cost of production and distribution of goods at low prices which increase their demand and widen market. Increase in demand in turn leads to large scale production and supply. Thus, communication is essential for growth of business.

Question 3.
Principle of subrogation is applicable to all contracts of indemnity.
Answer:
(1) The principle of subrogation is a colliery to the principle of indemnity. According to the principle of subrogation, after the insured is fully compensated for the total loss of the property or goods insured by him, all the rights in such property or goods pass on to the insurer.

(2) Insured person cannot claim any right in the property saved from the damage or loss, once he is fully compensated by the insurer. This is necessary because, if part of the goods or property saved from the fire, accident, damage, floods or cyclone, etc. could fetch any price, the same cannot be retained by the policyholder or insured. In that case he would realise more than the actual loss, which is against the principle of indemnity.

(3) As like the principle of indemnity, the principle of subrogation is applicable to all insurance policies except life insurance policies. In life insurance contracts, the question of indemnity and subrogation does not arise. The insurer cannot indemnify the insured because the loss due to death cannot be determined exactly in terms of money.

(4) In all insurance contracts, except life insurance contract, principle of indemnity and principle of subrogation are applicable. On indemnifying the insured, the insurer can sell the remains of the property damaged and reduce his loss. However, this principle is applicable only if the damaged property has any value after the happening of the event.

Question 4.
Warehousing is important.
Answer:
(1) The term ‘warehousing’ is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. In modern days, these is a time gap between production of goods and their distribution. Warehousing is essential to hold the stock of goods till they have suitable demand.

(2) Agricultural goods such as rice, wheat, sugar, spices, etc. are produced seasonally but consumed throughout the year. It is necessary to store them in large quantity. Some goods may be required to be stored for conditioning, canning or processing, e.g. oil seeds, fish, fruits, etc. Some perishable goods such as eggs, meat, butter, fruits, vegetables, medicines, etc. are preserved in cold storage so that their quality remains as it is.

(3) Warehousing plays an important role in price stabilisation. It helps to protect the goods from theft, deterioration, i.e. future risks. Warehouses nowadays provide facilities like packing, processing, grading, etc. Warehousing is necessary to facilitate dispersion of goods from production centres to different markets.

Question 5.
Cash can be withdrawn from ATM at any time.
Answer:
(1) ATM is the abbreviation of Automated Teller Machine. It is popularly known as All Time Money or Any Time Money. ATM is an electronic cash dispensing machine. It is free standing self service terminal. There is no specific time limit for withdrawals of cash from ATM.

(2) ATM is one of important facilities provided by the bank to its savings accountholder. To avail of this facility, bank installs ATM terminals at the places of public utility such as railway stations, shopping malls, airports, post offices, busy streets, etc.

(3) For withdrawal of cash from ATM, every accountholder is given specific code number. By operating this system, the accountholder can withdraw the cash up to a specific limit or the quantum of amount available in the account whichever is less. ATM also provides other information like cash deposits, withdrawals, balance in the account, etc.

(4) Under this system, the accountholder has cent per cent liquidity of banking funds. ATM avails twenty four hours service. Hence, the accountholder can withdraw cash any time, i.e. even after banking hours, on holidays, Sundays or in the case of emergency by operating ATM. This facility is available in different parts of the country as well as outside the country.

7. Attempt the following.

Question 1.
Explain money remittance services of post department.
Answer:
Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

Question 2.
Explain marine insurance policies.
Answer:
The different types of marine policies are:
(1) Voyage Policy : Under the Voyage Policy, the cargo is insured for a specified voyage, from one port to another, irrespective of the time taken. For instance, the voyage may be from Mumbai to Tokyo. In this type of policy, risk begins as soon as ship starts from Mumbai and ends when it reaches Tokyo.

(2) Time Policy : Under the Time Policy, the subject-matter is insured for a specific period of time. It covers risks of the voyage undertaken during the specified period. Time policy cannot be issued for a period more than 1 year but may contain continuation clause which explains that if voyage is not completed within the specified time, the risk shall be covered until voyage is completed.

(3) Mixed Policy : This policy is the combination of the two policies, viz. time policy and voyage policy. It insures the cargo (i.e. goods loaded on a ship, etc.) on a particular voyage for a specific period of time. For instance, the policy may contain the clause ‘Mumbai to Singapore, for one month starting from 25th February, 2020 to 25th March, 2020’.

(4) Valued Policy : The valued policy is a policy in which the value of the subject-matter is agreed upon between the insurer and the insured at the time of taking out the insurance policy. Agreed amount of policy becomes payable by the insurance company to the insured i.e. policyholder in the event of loss. It facilitates easy settlement of claim, where it is difficult to find out real market value S of the cargo.

(5) Blanket Policy: Under this policy, the maximum limit of the needed amount of protection is estimated and premium is paid in advance. This policy gives information of nature of goods insured, ports and places of voyages, specific route and risks covered. This policy covers multiple 1 risks on one property or it may cover different properties under one policy.

(6) Port Risk Policy : This policy is taken by the shipowner. It undertakes to indemnify the shipowner for any loss that may occur to the ship while it is anchored at a port. This policy is held applicable till the departure of the vessel from the port.

(7) Composite Policy : This policy is purchased from many insurance companies when the amount of insurance is very high. However, the liability of each insurance company to pay the amount of j claim is separate and distinct.

(8) Single vessel policy : The small shipowner having only one ship in different fleets, usually purchases single vessel policy to cover the risk of loss. This policy covers the risk of one vessel of the insured.

(9) Fleet policy and Block policy : The marine policy which insures several ships belonging to one owner is called Fleet Policy. The Block Policy is another marine policy under which the cargo owner is given protection against the loss or damage of cargo in all modes of transport i.e. rail, road and sea.

Question 3.
Explain types of warehouses.
Answer:
The different types of warehouses are:
(1) Private warehouses : The warehouses owned and operated by the big manufacturers and wholesalers for storing their own goods are called private warehouses. Big companies which need large storage capacity on a regular basis, can afford to construct and maintain their own warehouses. Many public sector organisations also have their own private warehouses, e.g. the Food Corporation of India (FCI) has constructed warehouses in different parts of the country for its own use. Usually these warehouses are constructed near to ones business factory or industry for convenience. They have network of warehouses in different parts of the country.

(2) Public warehouses : Warehouses which are established to provide storage facilities to the general public, small manufacturers and traders on rental basis are called public warehouses. These warehouses are owned and managed by an individual or co-operative societies. These warehouses are located near railway junctions, highways, waterways, airport, seaport, etc. They are well guarded and specially designed to protect goods from several types of risks. These warehouses have to obtain licence from the government. They provide warehousing facilities at low cost. Many marketing facilities such as standardisation, grading, labelling, packing, branding, etc. are provided in these warehouses.

(3) Bonded warehouses : Warehouses which are licensed by the government to accept and store imported goods till the customs duties are not paid on such goods are called bonded warehouses. These warehouses are managed and controlled by customs authorities. These warehouses are located near the ports. The importers cannot take possession of goods from such warehouses unless and until the duty on the goods is paid. The warehouse-keeper is required to give undertaking or ‘Bond’ that without the consent of the customs authorities goods will not be removed from the warehouse. Hence, such warehouses are called ‘Bonded Warehouses’. If an importer is unwilling or unable to pay customs duty immediately, he can withdraw them in instalments and pay customs duty proportionately.

(4) Duty-paid warehouses : The duty-paid warehouses provide the facility of storing the imported goods but not yet sold or transported to importers’ place or godown. These warehouses are owned and managed by the dock authorities only and hence they are also known as public warehouses. These warehouses are located near port and dock areas. They are more useful to importers who re-export the imported goods. The concerned authorities take all the due and reasonable care to ensure their safety. Processing of imported goods such as sorting, re-packing is done in these warehouses.

(5) Government warehouses : Warehouses which are owned, managed and controlled by the Central and State Governments or public authorities are called Government warehouses. These warehouses offer storage facilities to small traders, farmers, businessmen, etc. who are in need of the same on payment of reasonable rent. Central Warehousing Corporation of India (CWC), State Warehousing Corporation (SWC) and Food Corporation of India (FCI) own warehouses for keeping stock of foodgrains and other goods In different states and countries.

(6) Co-operative warehouses : These are warehouses owned, run, managed and controlled by co-operative societies to provide warehousing facilities to the members who are farmers in rural areas. These warehouses are similar to private warehouses but they run on the principle of co-operation. They are used for storing agricultural commodities, consumer goods, raw materials, etc. Farmers, small producers and traders are benefited by such warehouses as they charge at economical rates.

(7) Cold storage warehouses : Cold storage warehouses are largely used to store and preserve perishable goods such as flowers, fish, eggs, meat, vegetables, fruits, medicines, dairy products, etc. These products are kept in cold storage warehouses at very low temperature so that their quality and freshness would remain intact. These warehouses ensure continuous supply of seasonal and perishable products throughout the year. International trade for seasonal and perishable goods such as green peas, mangoes, etc., becomes possible only because of cold storage facilities.

Question 4.
Explain utility function of banks.
Answer:
The utility functions of the commercial bank are explained as follows:
(1) Issue of drafts and cheques : The Bank draft/cheque is an order issued by the bank upon the other branch of the same bank or other bank to pay money to the person whose name is specified thereon. The bank issues bank drafts to its accountholders or non-account holders. However, cheque are issued by the bank only to its account holders. For issuing the bank draft, bank charges some commission.

(2) Locker facility: The bank provides safe deposit vaults to the customers for keeping their valuables like gold ornaments, jewels, securities, valuables, documents, etc. in safe custody. Safe deposit vaults/lockers are made available to the customers on rental basis.

(3) Project reports : As per the request of the clients, bank prepare project report and feasibility study (i.e. a study designed to determine practicability of a system or plan) on their behalf. This helps the business organisation to get funds from the market and clearance from the government authorities.

(4) Gift cheques : The commercial banks also issue gift cheques and gold coins to the customers as well as to the general public by charging nominal charges. It is more popular and has wider acceptance in India. Instead of giving gifts in cash, one can give gift cheques as a present on various occasions such as birthdays, weddings, marriage anniversaries, etc.

(5) Underwriting Services : Underwriting services are given by the banks to the companies in which the bank gives guarantee to the issuing company to purchase unsubscribed portion of the shares, debentures, bonds and other securities if the public demand is not enough to fulfil the minimum subscription amount. For this services bank charges underwriting commission.

(6) Gold related services : Nowadays, many commercial banks offer gold related services to its customers. The banks on commercial basis buy and sell gold and gold ornaments to the customers on large scale basis. Some banks even gives advisory services to its customers in regard to gold funds, gold Exchange Traded Fund (ETF) etc.

Question 5.
Explain modes of traditional communication.
Answer:
(I) Postal Services : The postal services in India are provided by the Department of Post which comes under Ministry of Communication and Information Technology. India has the largest postal network in the world with 1,54,965 post offices of which 1,49,067 are in the rural areas. The different types of postal services are explained below:
(1) Mail Services : The different types of mail services are described below:
(i) Inland letters : The inland letter is one of the cheapest means of conveying written message. It contains a blank sheet of paper of prescribed size and folding for writing messages. It is folded and sealed. Only names and addresses of the receiver and sender can be seen from outside. So, it ensures complete secrecy. Inland letters are used for transmission of messages within India only.

(ii) Envelopes : A postal envelope is a small size paper cover with postage stamps affixed on it having one side open to put in papers, written messages and enclosures like cheques, photos, resumes, etc. It ensures maximum secrecy. On the front outside space name and address of receiver are written and on the backside space name and address of sender are written.

(iii) Parcel : Parcels help to send small articles from one place to the other by post. Parcel post provides economical and reliable parcel delivery service. Parcels of specified weight and size can be sent at different places within the country as well as outside the country Anything except those items which are banned can be sent. Parcel can be insured by paying extra charges for insurance. In case of insured parcel is lost in transit post office pays insured amount.

(iv) Book post : Printed materials such as publications, newspapers, printed books, wedding, cards, greeting cards, periodicals, legal documents, etc. can be mailed as book post. The book post packets should simply be closed and should not be sealed. The words ‘Book Post’ should be written on the face of the cover.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

(2) Specialised Postal Services : The following specialised postal services are provided by the post offices:
(i) Business Post : Business post arranges complete mailing services right from preparation of mail to delivery of mail. It is most suitable for small business and large companies. As per requirement, customers can select from a range of cost effective and professional mailing services which include printing, collating (comparing or examining), inserting, sealing and addressing. Indian post has established Business Post centres in major cities to handle business post consignment.

(ii) Logistics Post : Logistics post provides its business customers a cost-effective and timely solution that manages the entire value chain from collection to storage to transmission to distribution throughout the country.

(iii) Bill Mail Service : Communications in the nature of financial statements, bills, monthly account statements or any such other items of similar nature are sent by service providers to the customers by using bill mail service of post office. This service is used at least once in 90 days. Under this service, at a time minimum 5000 articles can be posted. The bill mail service does not include communication in the nature of letter mail or having personal communication or exclusive commercial publicity material. The mail is to be received at specified location provided. Bill mail is to be sorted pin code wide and bundled delivery post office wise.

(3) Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

(4) Retail services : The retail services are explained as follows:
(i) Retail post : Under retail post service, the department of post offers services to general public by making available some products and services of third party available in their areas through selected post offices. Under this, post offices offer a range of services including the collection of electricity bills, telephone bills, insurance premia, collection of taxes and fee for the government, etc. The post office also sells application form.

(ii) e-post : Recently, the department of posts has introduced e-post services, e-post service is service under which printed messages of customers are scanned and transmissed as email through internet. At the destination place or offices, these messages are printed, enveloped and delivered at the postal address. Thus, it is the combination of electronic transmission and physical delivery. Through e-post customers can send their messages to any address in India through network of more than 1,55,000 post offices. Corporate customers get special e-post rates and value additions.

Question 6.
Explain disadvantages of air transport.
Answer:
The disadvantages of air transport are as below:

  1. Costliest mode : In comparison to all other modes of transport air transport is most expensive.
  2. Affected by adverse weather conditions : It is exposed to the vagaries of weather changes, heavy rains, snow, storm, etc.
  3. Unsuitability : Air transport is not suitable for short distances. It is also not suitable for carriage of bulky and heavy goods.
  4. Huge capital investments : As compared to other modes of transport, air transport requires huge capital investment costs like construction of airports, aircrafts, runways, air traffic control tower, etc. Huge capital investment increases freight and fare charges.
  5. International restrictions : Air transport is required to observe international restrictions such as aeroplane of some nations are not permitted to fly over other countries.
  6. Limited carrying capacity : In comparison to other means of transport, the carrying capacity of air transport is very limited. It is not suitable to carry heavy and bulky goods.

Question 7.
Describe the role of transport.
Answer:
The role of transport are explained as follows:
(1) Helps in production : Transport carries raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. It also carries labour from their residence to place of factory. It carries finished products from the place of production to the places of consumption or markets.

(2) Expanding markets : Producers and consumers are separated by geographical distance. Transport bridges this gap and facilitates distribution. It makes goods available wherever they are demanded. This helps to widen the market. With the development and growth of transport, the domestic and international markets for both agricultural and industrial products expand, bringing the prosperity to the country.

(3) Creates place utility : Transport is a public utility service which creates time and place utilities. Transport mainly creates place utility by carrying goods from the place of plenty to places where they are in more demand but not available, e.g. Apples which are produced on large quantity in Himachal Pradesh are brought over to Mumbai and other places throughout the country by transport to get high prices.

(4) Stability of prices : Transport carries goods from the areas of plenty to the areas of scarcity. It helps to regulate and balance the supply of goods and services in relation to demand and thereby helps to stabilise the prices of goods. The shortage of goods at any place can be easily removed by efficient transport system.

(5) Creates employment : Transport creates job opportunities directly for transport owners, drivers, conductors, cleaners, mechanics, helpers, etc. It helps to move labour and goods from the place of abundance to the place of scarcity. This movement of goods and labour creates indirect employment. Transport an industry by itself has provided job opportunities to millions of people all over the world.

(6) Improves standard of living : By generating employment, transport leads to increase purchasing power with people. Further, it makes products of their choice from different regions available in local markets. This results in higher standard of living.

(7) Cost reduction : Efficient, cheap and quick means of transport facilitate the reduction in the cost of production and distribution of goods. On account of low cost of production, the goods can be sold at low prices which increase their demand and widen market. Increase in demand again leads to large scale production of goods and supply.

(8) Provides help during emergency : The life of the people is badly affected during natural calamities such as floods, earthquakes, landslides, droughts, etc. and also during man-made disasters such as bomb blasts, riots, accidents, etc. In such circumstances, urgent and timely help in the form of food, water, medicines, clothes and other provisions, etc. can be provided quickly with the help of transport to save the lives of affected people. Rescue operations are possible only with the help of helicopters, fire brigades, railways, etc.

(9) Economic development : An efficient transportation system contributes to the rapid development of commerce and industry. Transport also helps to develop agriculture of a country. New industries are established and rapidly developed due to efficient network of transport. Further, a country can make progress in international trade and thereby earn foreign exchange only through efficient transport services.

Question 8.
What are the functions of warehouses?
Answer:
Functions : The functions of warehouses are explained as follows:
Function of Warehouses

  1. Storage
  2. Price Stabilisation
  3. Risk-Bearing
  4. Financing
  5. Grading and Packing
  6. Transportation
  7. Time and Place Utility
  8. Processing

1. Storage : Storage of goods is the basic function of warehousing. Warehouses provide space for storage of goods in large quantity and in good condition. The commodities which are not required immediately are stored in the warehouses. Stored goods are supplied as and when they are required by the customers.

2. Price stabilisation : Warehousing facilitates price stabilisation by maintaining proper balance between demand for and supply of commodities. It is achieved by creation of time utility by warehousing. Usually, large stock of goods is kept in the warehouse. Wherever, there is shortage of goods in the market, goods are released from the warehouse which increases supply and facilitates price stabilisation. Thus, it helps to avoid any rise in prices.

3. Risk-bearing : While the goods are stored in the warehouse, the warehouse-keeper takes reasonable care to protect the goods from risks of loss or damage due to heat, cold, moisture, dryness, insects, fire and thefts. This is because he has to return the goods in the same condition. For any loss or damage of goods during storage, warehouse-keeper will be held liable to the owner of the goods. Thus, the risk is transferred from the owner to the warehouse-keeper.

4. Financing : On the basis of goods stored in the warehouse, loans can be raised from the financial institutions or warehouse-keeper. The goods act as a security for financial institution. This loan can be used to meet other operations of business by the owners of goods.

5. Grading and Packing : Warehousing provides enough space for undertaking various marketing functions like grading, processing and packing of goods. Goods can be packed in suitable sizes as per the instructions of the owner. Thus, services of warehousing are very useful to manufacturers, wholesalers and the importers of goods.

6. Transportation : Some warehouses also provide transport facility to the traders who store large quantity of goods in the warehouse. It brings the goods from the places of production and also sends them to the places of delivery on behalf of depositors.

7. Time and Place Utility: Warehousing creates time utility by storing goods and releasing the same at the time when they are demanded. It also creates place utility by transporting goods at the far away places, where they are required.

8. Processing : For certain commodities processing is necessary to make them consumable or useable. This is because those commodities cannot be consumed in the form they are produced in the nature, e.g. paddy, raw fruits, etc. The activities such as polishing the paddy, ripening the fruits, etc. are undertaken by the warehouses on behalf of the owners.

8. Answer the following.

Question 1.
What is insurance ? Explain principles of insurance.
Answer:
[A] Meaning : The term insurance refers to the method (means) of protection from financial loss which may occur due to happening of specific uncertain events. It is a type of risk management primarily used to compensate against the risk of a contingent loss. Insurance is a contract between two parties whereby one of them (the insurer) agrees in return for a consideration (premium) to indemnify (compensate) the other (the insured) against a monetary loss that may be suffered by the other on the happening of some specified event.

According to Insurance Act of 1938, Insurance is defined as, “A provision which a prudent man makes against inevitable contingencies”.

[B] Principles of insurance : The different principles of insurance are:

  1. Principle of Utmost Good Faith
  2. Principle of Insurable Interest
  3. Principle of Indemnity
  4. Principle of Subrogation
  5. Principle of Contribution
  6. Principle of Mitigation of Loss
  7. Principle of Causa-Proxima

1. Principle of Utmost Good Faith : The principle of utmost good faith is applicable to all types of insurance. According to this principle, both the parties in an insurance contract are under am obligation to make the fullest disclosure of all material facts relating to the insurance contract clearly, correctly and completely. Insured must provide correct and complete information of the subject-matter of the insurance whereas insurer must provide correct and complete information about the terms and conditions of the insurance contract. Failure to provide correct, complete information on the part of insured may lead to non-settlement of claim by the insurer.

For example, Mr. Hari has not given information about his kidney ailment to the insurance company while taking policy. So, if the insurance company discovers it after his death, then his family will not get compensation.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

2. Principle of Insurable Interest : No person can enter into a valid insurance contract unless he has insurable interest in the object insured. Insurable interest of an insured is said to have in the subject matter if the existence of it provides financial benefit to the insured and non-existence of that subject matter put the insured to financial loss. Principle of insurable interest is applicable to all contracts of insurance. In the case of life insurance it is enough if the insurable interest s exists at the time of entering into the contract. In the case of marine and fire insurance interest the insurable must exist both at the time of the contract as well as at the time of the happening of the event.

A person has insurable interest in his own life and his property. A businessman has insurable interest in the goods he trades and in his property. Similarly, a wife has insurable interest in the life of her husband and vice versa.

3. Principle of Indemnity : Indemnity refers to a guarantee or assurance given by the insurer to place the insured in same financial position in which he was before the happening of the uncertain event. Principle of indemnity is applicable to marine, fire and general insurance as in such cases actual loss can be measured in terms of 1 money. Under this principle, the insurer undertakes to indemnify the policyholder or insured to the extent of the policy amount or the actual monetary loss suffered, whichever is lower, e.g. if a property owner has insured his property for Rs 5 lakh and it is destroyed by fire and incurred a loss of Rs 2 lakh, then the property owner will be paid only Rs 2 lakh i.e. the actual loss. This principle prevents a policyholder from making a profit out of his actual loss. However, in case of death of the insured, insurance company pays the actual sum assured to the nominee of the insured.

4. Principle of Subrogation : The principle of subrogation is a corollary to the principle of indemnity and is applicable to all contracts of j indemnity. According to it, after the insured is fully compensated for the total loss of the property or goods insured by him, all the remaining rights in such property or goods pass on to the insurer. Suppose a car owner has insured his car for Rs 2,00,000 against risk of loss due to accidents. If his car meets with an accident and is completely damaged, the insurance company pays Rs 2,00,000, the policy amount, to the car owner. On indemnifying the insured, the insurer can sell the remains of the car in scrap and reduce his loss.

5. Principle of Contribution : The principle of contribution is applicable to all contracts of indemnity. A person can insure his property with two or more insurance companies. It is done mainly to have better security, i.e. if one insurer fails to pay the claim, it can be recovered from another insurer. In the case of loss, the insured cannot recover compensation from both the insurance companies. All the insurers will jointly compensate the total amount of loss. According to the principle of contribution, each insurance company will contribute to the loss in proportion to the amount of policy undertaken from each company. If the insured chooses to collect the amount of compensation from one particular insurer, the insurer can in turn recover proportionate amount from the other insurers.

For instance, Dr, Ashok has insured his property of Rs 2,00,000 with two insurance companies viz. with X insurance company for Rs 1,20,000 (i.e. 60% of property value) and with Y insurance company for Rs 80,000 (i.e. 40% of property value).

If Dr. Ashok’s property is destroyed and he incurred a loss of Rs 1,50,000, then both the insurance companies will contribute towards actual loss of Rs 1,50,000. Here X insurance company will pay Rs 90,000 (i.e. 60% of Rs 1,50,000) and Y insurance company will pay Rs 60,000 (i.e. 40% of Rs 1,50,000).

6. Principle of Mitigation of Loss : Under this principle, the insured is required to take all possible steps to minimise the loss to the insured property on the happening of the event. He should not remain indifferent merely because the property which is getting damaged is insured. For example, Mr. Kishor’s house is on fire due to short circuit. In this case Mr. Kishor, must take necessary steps to put off the fire and to save the insured property as much as possible.

7. Principle of Causa-Proxima : The term ‘Causa-Proxima’ means a proximate, i.e. nearest or immediate cause or reason. Accordingly, when loss is occurred due to more than one cause, then proximate or nearest cause of loss is taken into consideration to fix the liability of insurer. If proximate cause is one of the causes from list of insured causes, then insurer is liable to pay compensation. In other words, the insurance company will indemnify the insured only if it is definitely established that the said loss is caused directly by the occurrence of the event covered by the policy.

Question 2.
Define bank. Explain. Different types of banks.
Answer:
[A] Definition : Bank is a dealer in money and credit. It is a financial institution whose basic activities are to accept deposits and advance, lend money and provide other related services, According to The Indian Banking Regulation Act, 1949, “any company which transacts the business of banking in India.” The term banking is further defined as, “accepting for the purpose of lending or investment of deposits from the public, repayable on demand or otherwise and withdrawable by cheque, draft and order or otherwise.”

Types of Bank:

  1. Central Bank
  2. Commercial Bank
  3. Co-operative Bank
  4. Industrial Development Bank
  5. Exchange Bank
  6. Regional Rural Bank
  7. Savings Bank
  8. Investment Bank
  9. Specialised Bank

The different types of banks are explained below:
1. Central Bank: The central bank in a country is the financial institution at the top (apex) of all the banking institutions operating in the country. In India, The Reserve Bank of India was established in 1945 under a special statute called the Reserve Bank of India Act, 1944. It performs the functions like framing monetary policy, issuing currency notes, acting as a banker to the Government and acting as the banker’s bank to commercial and other banks in India.

2. Commercial Bank : The Commercial bank plays key role in the economic, industrial and social development of a country. It performs broadly two functions such as (i) Primary functions which include accepting deposits and lending money in different forms and (ii) Secondary function which include agency functions and utility functions. The different types of commercial banks in India are as follows:
(i) Public Sector Banks : The banks in which majority of the share capital or stake (interest) is held by the Government of India are called Public Sector Bank, e.g. State Bank of India, Bank of India, etc.

(ii) Private Sector Banks : The banks in which majority of the share capital or stake is held by private individuals are called Private Sector Banks, e.g. Axis Bank, HDFC Bank, etc.

(iii) Foreign Banks : The banks which are registered and have their headquarters in foreign country but operate in different countries including India through their branches established there, are called Foreign banks e.g. Standard Chartered Bank, American Express Bank, HSBC, etc.

3. Co-operative Banks : Co-operative banks are formed, registered and organised under the Indian Co-operative Societies Act and regulated under Banking Regulation Act. These banks are more popular in rural and semi-urban areas. These banks are primarily meant for catering to the financial needs of economically backward people, farmers and small scale units. They operate at three different levels:
(a) Primary Credit Societies : The primary credit societies work at village level. These credit societies collect the savings and surplus money in the form of deposits from members and common people. They are also financed by the State Co¬operative Banks and District Co-operative Banks for the purpose of lending to needy people for productive purpose.

(b) District Central Co-operative Banks : The District Central Co-operative Banks operating at district level and financed by the State Co-operative Bank for the purpose of providing finance to primary credit societies.

(c) State Co-operative Banks : The State Co-, operative Banks Eire working at state level. These banks provide funds to District Central Co-operative Banks and Primary Credit Societies to enable them to provide finance to rural and semi urban areas. Apart from this, they also supervise the working of district banks and credit co-operative societies.

4. Industrial Development Banks : The banks which provide medium and long term equipment, latest technology, expansion and modernisation of business, etc. are called Industrial Development Banks. Industrial Finance Corporation of India (IFCI), State Financial Corporations (SFCs), Maharashtra State Finance Corporation (MSFC), etc. are the examples of Industrial Development Banks. These banks perform the following functions:

  1. Provide medium and long term finance to business organisations for expansion and modernisation.
  2. Underwriting i.e. giving guarantee to buy shares issued by public limited companies.
  3. Purchase debentures and bonds.

5. Exchange Banks : An exchange bank specialises in financing import and export trade and in foreign exchange transactions. The American Express Bank, Bank of Tokyo, Barclays Bank, etc. are the examples of Exchange Banks functioning in India. The Exchange Banks perform the following functions:

  1. Finance foreign trade transactions,
  2. Issue letter of credit on behalf of importer,
  3. Discount foreign bills of exchange,
  4. Remit dividend, interests and profits.

6. Regional Rural Banks : These banks were constituted (established) in 1975 and are sponsored by large public sector banks. 50%, 35% and 15% of the capital of these banks are provided by the Central Government, sponsored banks and State Government respectively. These banks collect (mobilise) funds in the form of deposits from rural and semi-urban areas. They provide loans and advances to small and marginal farmers, agricultural workers, rural artisans for productive purpose.

7. Savings Bank : A savings bank is one which has the main object of inculcating the habit of saving among the community. It collects scattered savings of the community especially from rural areas and invests the same in good securities. In India, Postal Savings Bank is an example of such a bank. Commercial Banks and Co-operative Banks act as savings banks as they have separate savings accounts departments.

8. Investment Bank : Investment banks offer financial and advisory assistance to their customers which usually include business firms and government organisations. These banks provide advice on investment decisions and facilitate mergers and acquisitions by undertaking research. These Banks do not directly deal with the common people.

9. Specialised Banks: The banks which make available to the requirements of the business and provide possible support to set up business activities in specific area are called Specialised Banks. The different types of specialised banks are:
(a) Export Import Bank of India (EXIM Bank) : These banks provide the needed financial assistance and support to the exporters and importers in setting up business for exporting and importing products respectively. They work to expand and promote country’s international trade.

(b) Small Industries Development Bank of India (SIDBI) : SIDBI was established on 2nd April, 1990 under the Act of Parliament of India. Its main function is to act as the main institution for financing, promoting and developing the Micro, Small and Medium Enterprises (MSMEs) as well as co-ordinator of the institutions engaged in similar activities.

(c) National Bank for Agricultural and Rural Development (NABARD) : NABARD has been established to work as an apex institution to finance agricultural and rural sector. It provides long term and short term loans through regional rural banks. It provides loans to financial institutions and not individuals. It is also concerned with the function of policy planning and operations relating to agricultural credit and credit for other activities in rural areas.

Question 3.
What is warehouse? Explain its different functions.
Answer:
[A] Meaning : A warehouse can be defined as, “an establishment for the storage or accumulation of goods.” The term ‘warehousing’ is generally used to denote storage of goods and consists of all those activities which are connected with the storage and preservation of goods in a godown or warehouse. One of the group activity or functions is to hold the goods in stock from the time of production till the time of consumption is called storage of goods. When storage of goods is required to be arranged on a large scale in a specified manner, it is called ‘warehousing’.

[B] Functions : The functions of warehouses are explained as follows :
Function of Warehouses

  1. Storage
  2. Price Stabilisation
  3. Risk-Bearing
  4. Financing
  5. Grading and Packing
  6. Transportation
  7. Time and Place Utility
  8. Processing

1. Storage : Storage of goods is the basic function of warehousing. Warehouses provide space for storage of goods in large quantity and in good condition. The commodities which are not required immediately are stored in the warehouses. Stored goods are supplied as and when they are required by the customers.

2. Price stabilisation : Warehousing facilitates price stabilisation by maintaining proper balance between demand for and supply of commodities. It is achieved by creation of time utility by warehousing. Usually, large stock of goods is kept in the warehouse. Wherever, there is shortage of goods in the market, goods are released from the warehouse which increases supply and facilitates price stabilisation. Thus, it helps to avoid any rise in prices.

3. Risk-bearing : While the goods are stored in the warehouse, the warehouse-keeper takes reasonable care to protect the goods from risks of loss or damage due to heat, cold, moisture, dryness, insects, fire and thefts. This is because he has to return the goods in the same condition. For any loss or damage of goods during storage, warehouse-keeper will be held liable to the owner of the goods. Thus, the risk is transferred from the owner to the warehouse-keeper.

4. Financing : On the basis of goods stored in the warehouse, loans can be raised from the financial institutions or warehouse-keeper. The goods act as a security for financial institution. This loan can be used to meet other operations of business by the owners of goods.

5. Grading and Packing : Warehousing provides enough space for undertaking various marketing functions like grading, processing and packing of goods. Goods can be packed in suitable sizes as per the instructions of the owner. Thus, services of warehousing are very useful to manufacturers, wholesalers and the importers of goods.

6. Transportation : Some warehouses also provide transport facility to the traders who store large quantity of goods in the warehouse. It brings the goods from the places of production and also sends them to the places of delivery on behalf of depositors.

7. Time and Place Utility: Warehousing creates time utility by storing goods and releasing the same at the time when they are demanded. It also creates place utility by transporting goods at the far away places, where they are required.

8. Processing : For certain commodities processing is necessary to make them consumable or useable. This is because those commodities cannot be consumed in the form they are produced in the nature, e.g. paddy, raw fruits, etc. The activities such as polishing the paddy, ripening the fruits, etc. are undertaken by the warehouses on behalf of the owners.

Question 4.
What is Services? Explain in detail different business services.
Answer:
[A] Meaning : A service is an act of performance that one party offer to another for certain consideration. Service is essentially intangible i.e. cannot be touched, seen and felt. Services are neither manufactured nor stocked or transported. They are produced and consumed simultaneously. So, Services are intangible, heterogeneous, inseparable, inconsistent, instantly perishable in nature, not transferable and require consumer participation. Services which help in successful running of a business are called business services.

Business cannot be run without business services. These services are provided to the customers which fulfil their needs. Banking, insurance, transport, warehousing, communication, etc. are the examples of business services. According to American Marketing Association, services implies, “Activities, benefits or satisfaction which are offered for sale or provided in connection with the sale of goods.”

[B] Types : The different types of services are shown:

  1. Banking
  2. Insurance services
  3. Transport services
  4. Warehousing
  5. Communication

The different types of business services are explained as follows:
1. Banking : As the production has to take place on a large scale, adequate finance is required. Further, there must be facilities for the exchange of goods. Banks provide necessary finance and to facilitate exchange issue different types of facilities such as cheques, drafts, debit card, credit card, net banking, mobile banking, etc. The banks also provide loans to the business and industry to buy properties and to pay for routine expenses.

2. Insurance services : There are several business risks involved during the period from the stage of production to the stage of consumption. Insurance company in consideration of a definite fees called premium, undertakes all such risks through fire, marine, life and other insurance contracts. Insurance is a service contract in which insurance company in consideration of specific premium amount promises to pay a fixed amount to insured person either on the expiry of pre-determined fixed period or in case of happening of any unlucky accident whichever is earlier. Thus, by protecting the traders against the risks, an
insurance company enables the traders to concentrate on their day-to-day business activities.

3. Transport services : Transport is a service or facility which creates place utility by carrying essential products, raw materials and human resources from one place to another. It plays an important role in the development of all sectors of the economy. Transport helps to widen the market for agriculture and manufactured goods. The efficient transport network facilitates development of commercial activities. It facilitates movement of labour and capital assets from different areas to developed areas.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

4. Warehousing : Warehouse is a place or a room or a building where goods are stored prior to their use, distribution or sale. Warehousing creates time utility. It solves the problem of holding the stock of goods during the time-gap between production and consumption. It also provides enough place to perform certain marketing services like grading, weighing, packing, branding, labelling, etc. Warehousing also equalises demand for and supply of goods in the market and helps to stabilise the prices of goods.

5. Communication : George Terry defines communication as, ‘the process of transmitting and interchanging ideas, facts and actions’. It is a main aid to trade. Communication services such as post, telegraph, telephone, cell phones, telex, fax, courier, e-mail, internet, etc. help to transmit and communicate business information quickly among the businessmen

Question 5.
What is communication? Explain in detail various types of communication.
Answer:
[A] Meaning : The term ‘communication’ means any interchange of ideas, messages, facts, information, feelings and emotions among two or more persons In a way that they share common understanding about it. It Is a process of giving away or passing on any information by any person to some other person with the help of some medium. Thus, receiver after receiving the message understands it in the desired form and acts accordingly.

[B] Types of Communication : The different types of communication are shown in the following diagram:
Maharashtra Board OCM 12th Commerce Solutions Chapter 4 Business Services 1
The different types of communication are explained below:
(I) Postal Services : The postal services in India are provided by the Department of Post which comes under Ministry of Communication and Information Technology. India has the largest postal network in the world with 1,54,965 post offices of which 1,49,067 are in the rural areas. The different types of postal services are explained below:
(1) Mail Services : The different types of mail services are described below:
(i) Inland letters : The inland letter is one of the cheapest means of conveying written message. It contains a blank sheet of paper of prescribed size and folding for writing messages. It is folded and sealed. Only names and addresses of the receiver and sender can be seen from outside. So, it ensures complete secrecy. Inland letters are used for transmission of messages within India only.

(ii) Envelopes : A postal envelope is a small size paper cover with postage stamps affixed on it having one side open to put in papers, written messages and enclosures like cheques, photos, resumes, etc. It ensures maximum secrecy. On the front outside space name and address of receiver are written and on the backside space name and address of sender are written.

(iii) Parcel : Parcels help to send small articles from one place to the other by post. Parcel post provides economical and reliable parcel delivery service. Parcels of specified weight and size can be sent at different places within the country as well as outside the country Anything except those items which are banned can be sent. Parcel can be insured by paying extra charges for insurance. In case of insured parcel is lost in transit post office pays insured amount.

(iv) Book post : Printed materials such as publications, newspapers, printed books, wedding, cards, greeting cards, periodicals, legal documents, etc. can be mailed as book post. The book post packets should simply be closed and should not be sealed. The words ‘Book Post’ should be written on the face of the cover.

(2) Specialised Postal Services : The following specialised postal services are provided by the post offices:
(i) Business Post : Business post arranges complete mailing services right from preparation of mail to delivery of mail. It is most suitable for small business and large companies. As per requirement, customers can select from a range of cost effective and professional mailing services ! which include printing, collating (comparing or examining), inserting, sealing and addressing. Indian post has established Business Post centres in major cities to handle business post consignment.

(ii) Logistics Post : Logistics post provides its business customers a cost-effective and timely solution that manages the entire value chain from collection to storage to transmission to distribution throughout the country.

(iii) Bill Mail Service : Communications in the nature of financial statements, bills, monthly account statements or any such other items of similar nature are sent by service providers to the customers by using bill mail service of post office. This service is used at least once in 90 days. Under this service, at a time minimum 5000 articles can be posted. The bill mail service does not include communication in the nature of letter mail or having personal communication or exclusive commercial publicity material. The mail is to be received at specified location provided. Bill mail is to be sorted pin code wide and bundled delivery post office wise.

(3) Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

(4) Retail services : The retail services are explained as follows:
(i) Retail post : Under retail post service, the department of post offers services to general public by making available some products and services of third party available in their areas through selected post offices. Under this, post offices offer a range of services including the collection of electricity bills, telephone bills, insurance premia, collection of taxes and fee for the government, etc. The post office also sells application form.

(ii) e-post : Recently, the department of posts has introduced e-post services, e-post service is service under which printed messages of customers are scanned and transmissed as email through internet. At the destination place or offices, these messages are printed, enveloped and delivered at the postal address. Thus, it is the combination of electronic transmission and physical delivery. Through e-post customers can send their messages to any address in India through network of more than 1,55,000 post offices. Corporate customers get special e-post rates and value additions.

(II) Modern means of communications : The modern means of communication are explained as follows:
(i) Courier Service : A courier service is a service that allows someone to send a parcel or consignment from one place to some other distant place. Usually, courier services are provided by a company and charge flat rates to the parties using the courier service regularly. Courier services differ from ordinary mail services in respect to speed, security, tracking, signature, delivery time, etc. Usually, premium courier services are more expensive as compared to ordinary mail services. DHL, DTDC, etc. are the examples of courier services.

(ii) Internet : The internet is one, in which users at one computer can, if it has permission, get information from other computer. It is a networking infrastructure. It connects millions of computers together globally, framing a network in which any computer can communicate with any other computer as long as they are both connected to internet. It is a network of networks that include of private, public, academic, business and government networks of local to global scope linked by a broad array of electronic, wireless and services such as world wide web, etc.

(iii) E-mail : E-mail stands for Electronic mail. E-mail refers to the transmission of information, from one computer terminal to another. It is a method of exchanging mail between the users of electronic devices. E-mail servers accept, forward, deliver and store messages. Users are not required to be online simultaneously. They are required to connect to a mail server briefly for as long as it takes to send or receive messages.

Question 6.
What is road transport. Explain its advantages and disadvantages.
Answer:
[A] Meaning : Road transport is the oldest mode of transport. It means and includes various means of transport which move on the surface of the earth without the use of railway tracks. Roads are the means which connect people and places on the surface of the land. It provides connectivity on any terrain (land) in comparison to other modes of transport. The different types of vehicles plying on the road include bullock carts, cycles, motor-cycles, autorickshaws, cars, tempos, trucks, buses, etc. They are called means of road transport.

[B] Advantages : The advantages of road transport are explained as follows:
(1) Cheaper mode of transport : As compared to other modes of transport, road transport is relatively cheaper mode of transport. Its operational cost is relatively low.

(2) Useful for perishable goods : Road transport is suitable and more useful to carry and deliver perishable goods such as milk, vegetable, fish, mutton, fruits, flowers, eggs, etc., over a short distance and that too at a faster speed.

(3) Flexible mode of transport : Road transport is flexible mode of transport because loading and unloading of goods are possible at any destination. Similarly, it is more flexible because of the choice of different routes, timings and types of vehicles.

(4) Door-to-Door service : Road transport facilitates door-to-door delivery of goods. It carries the goods and passengers directly to the godowns, factories and places of residence, i.e. user.

(5) Good reach : Roads constructed in plain areas and also in hilly areas can be used by different road vehicles such as trucks, tempos, motor cars and even carts driven by animals for carrying goods and passengers from one place to another. Wherever any other mode of transport cannot reach, road vehicles can easily reach and thus cover even hilly areas.

(6) Less capital investment : The cost of construction and maintenance of a road system is relatively less than that of railways.

Maharashtra Board OCM 12th Commerce Solutions Chapter 8 Marketing

[C] Disadvantages : The disadvantages of road transport are explained as follows:
(1) Not economical for long distance : In comparison to other modes of transport carrying capacity of road transport is very limited. High cost of fuel, tolls, etc. make the road transport uneconomical for long distance transportation.

(2) Not suitable for heavy and bulky goods : Road transport is not suitable for carrying heavy and bulky goods for any distance and involves high cost.

(3) Affected by adverse weather conditions : Road transport is affected more by adverse weather conditions such as fogs often greatly reducing visibility, heavy rain, floods, landslides, storm, etc.

(4) Accidents : The possibility of road accidents is frequent due to poor condition of roads and negligent drivers.

(5) Causes pollution : The vehicles plying on the road release smokes and gases. So, it creates air pollution which affect the health of the people.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 3 Entrepreneurship Development Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 3 Entrepreneurship Development

1. (A) Select the correct options and rewrite the sentences

Question 1.
The word ‘entrepreneur’ is derived from the ……………… word ‘entreprende’.
(a) Japanese
(b) English
(c) French
Answer:
(c) French

Question 2.
‘Entreprende’ means to ………………..
(a) Undertake
(b) Enterprise
(c) Businessman
Answer:
(a) Undertake

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 3.
Start Up India is an initiative of the ………………
(a) RBI
(b) Government of India
(c) World Bank
Answer:
(b) Government of India

Question 4.
………………. is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.
(a) Agro tourism
(b) Medical tourism
(c) Entertainment
Answer:
(a) Agro tourism

1. (B) Match the pairs

Group A Group B
(A) Gap filling function (1) 2016
(B) Entrepreneur (2) Employment
(C) Agro tourism (3) Old methods of production
(D) Technology  (4) 2019
(E) Start up India (5) Self motivated
(6) Rural tourism
(7) Entrepreneurship
(8) Latest knowledge
(9) Necessity Based
(10) Medical tourism

Answer:

Group A Group B
(A) Gap filling function (7) Entrepreneurship
(B) Entrepreneur (5) Self motivated
(C) Agro tourism (6) Rural tourism
(D) Technology (8) Latest knowledge
(E) Start up India (1) 2016

1. (C) Give one word/phrase/term which can substitute each one of the following

Question 1.
An undertaking or adventure involving uncertainty and risk and requiring innovation.
Answer:
Enterprise

Question 2.
A function of creating something new for an economic activity.
Answer:
Innovation

Question 3.
A person who is an innovator who introduces new combinations of means of production.
Answer:
Entrepreneur

Question 4.
The process of enhancing entrepreneurial skills and knowledge through structured training and institution building programmes.
Answer:
Entrepreneur development

Question 5.
The process that motivates a person into action and induces him to continue the course of action for the achievement of goals.
Answer:
Motivation

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 6.
An employee who has an authority and support of the organisation to implement his creative ideas.
Answer:
Intrapreneur

1. (D) State true or false

Question 1.
An entrepreneur should not be ready to work hard.
Answer:
False

Question 2.
Agritourism can support agricultural economy.
Answer:
True

Question 3.
Successful businessman takes calculated risk.
Answer:
True

Question 4.
Entrepreneurship is a full time job which requires dedication and hard work.
Answer:
True

Question 5.
Startup India is an initiative of the Government of France.
Answer:
False.

1. (E) Find the odd one

Question 1.
Communicator, Innovator, Self-starter, Inactive.
Answer:
Inactive

Question 2.
Trekking, Wildlife study, Horseback riding, Indoor games.
Answer:
Indoor games

Question 3.
Innovation, Lack of communication, Development of market, Determining the objectives.
Answer:
Lack of communication.

1. (F) Complete the sentences

Question 1.
An entrepreneur is a person who starts a …………………
Answer:
Business / Enterprise

Question 2.
‘Start-up’ India initiative was launched in ……………….
Answer:
2016.

1. (G) Select the correct option

(Innovation, Niche tourism, Agro tourism, Entrepreneurship)

Group A Group B
1. The idea of bringing Urban resident to agricultural farm —————
2. Agro tourism is a form of ————–
3. —————— To introduce new combination of products and features
4. —————– A full time job which requires, dedication and hard-work.

Answer:

Group A Group B
1. The idea of bringing Urban resident to agricultural farm Agro tourism
2. Agro tourism is a form of Niche tourism
3. Innovation To introduce new combination of products and features
4. Entrepreneurship. A full time job which requires, dedication and hard-work.

1. (H) Answer in one sentence

Question 1.
What is Agro tourism?
Answer:
Agro tourism is the idea to bring urban residents to rural areas for leisure travel and spending.

Question 2.
Who is ‘Entrepreneur’?
Answer:
Entrepreneur is a person who organises and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 3.
Who described ‘Entrepreneurship’ as the founding of a private enterprise?
Answer:
John Sturt Mill, a famous economist, described ‘Entrepreneurship’ as founding of a private enterprise in 1948.

1. (I) Correct the underlined word and rewrite the sentences

Question 1.
The word ‘Entrepreneur’ comes from the German verb entreprendre, it means ‘to undertake’.
Answer:
French

Question 2.
Entrepreneurs try to make home a better place where the needs of consumers can be satisfied.
Answer:
market

Question 3.
The loan taken under stand-up India scheme is repayable in ten years.
Answer:
seven.

2. Explain the following term/concept

Question 1.
Entrepreneur.
Answer:
An entrepreneur is a person who starts a business and is willing to risk loss in order to make money. The entrepreneurs are passionate to invent, innovate, lead or pioneers with a disruptive product or technology. Entrepreneurs try to make market a better place where the needs of consumers can be satisfied. They have the courage to offer and share an idea or a product or a service with the world. A small businessman, founder of multi-billion company, freelancing carpenter are examples of entrepreneurs.

Question 2.
Agro tourism.
Answer:
Agro tourism is the idea of bringing urban residents to rural areas for leisure travel and spending. Agro tourism is a commercial enterprise at a working farm, ranch or agricultural plant conducted for the enjoyment of visitors that generates supplement income for the owner. Agrotourism activities include picking fruits, tending bees, milking cows and other educational pursuits. In short, Agro tourism provides the tourists a chance to reconnect with the land and provides a ‘hand on experience’ with local foods. Agro tourism can support agricultural economy when local producers can no longer complete economically.

Question 3.
Start-ups.
Answer:
A start-up is defined as an entity having its headquarter in India, which was opened less than 10 years ago and has an annual turnover of less than Rs 100 crores. It is an initiative of the Government of India, launched in 2016. It aims at building an ecosystem which will nurture start¬ups in the country. So that, sustainable economic growth and large scale employment opportunities can be generated. One of the objectives of the Indian Government is to make India a nation of job creator instead of job seekers.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 4.
Stand-ups.
Answer:
Stand-up India scheme is for financing SC/ST and/or women entrepreneurs. The objective of the stand-up India scheme is to facilitate bank loans between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and at least one woman borrower per branch for setting up a greenfield enterprise. This enterprise maybe in manufacturing, services or the trading sector. In case of non-individual enterprise at least 51% of the share-holding and controlling stake should be held by either an SC/ST or woman, above 18 years of age.

Question 5.
Intrapreneur.
Answer:
Intrapreneurship is the entrepreneurship within an existing organisation. An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or products may or may not earn immediate revenue for the company. But the employee keeps receiving his salary. The company provides the infrastructure. Many large organisations have dedicated Research and Development Departments where employees are encouraged to use their creative abilities. These ideas or innovations may earn handsome profit to an organisation. So Intrapreneur is the entrepreneurship within an organisation.

3. Study the following case /situation and express your opinion

Mr. Soham is a young MBA degree holder, Mr. Navin is B.Com graduate. Mr. Soham is willing to start dairy farm at his village, Mr. Navin is willing to work as cashier in Private Company.

(i) Find out dream of Soham and Navin.
(ii) State anyone feature of Entrepreneur.
(iii) To become successful entrepreneur, which qualities Mr. Soham should have?
Answer:
(i) Dream of Soham is to become ; entrepreneur and dream of Navin is to take up job in a private company and get a fixed income as salary.
(ii) Entrepreneur is a person who is willing to take risk in order to earn money and start a business.
(iii) To become a successful entrepreneur Mr. Soham should have qualities like innovator, creator, reactive and risk bearer.

4. Answer in brief

Question 1.
Define Entrepreneur. Explain functions of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 2.
Define entrepreneur. Explain the qualities of successful entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] The qualities of a successful entrepreneur:
(1) Discipline : An entrepreneur has comprehensive strategies and tactics to accomplish the organisational goal. Successful entrepreneur is disciplined enough to take steps every day towards the attainment of his objectives. They eliminate any hindrance or distractions.

(2) Confidence : An entrepreneur is confident with the knowledge that he will make his businesses succeed. He shows the confidence in everything he does.

(3) Open-minded : An entrepreneur has the ability to look at everything around him and realises that every event and situation is a business opportunity. New ideas are constantly being generated about potential new business.

(4) Self starter : An entrepreneur is proactive, not waiting for someone to give him permission. Everything which needs to be done, he should start in himself. So, he sets parameters for the project.

(5) Competitive : An entrepreneur knows that he can do a job better than others. He needs to be competitive to win every game of the business.

(6) Creativity : An entrepreneur often comes up with solutions which are the synthesis of other item. He makes connections between two unrelated events or situations.

(7) Determination : An entrepreneur is determined to make all of their endeavours succeed, so will try again until it does. He sees opportunity for success in defeat.

(8) Strong communication skills : The entrepreneur has strong communication skill to sell the product and to motivate employees. He has to highlight benefits of situation and coach others to be successful.

(9) Strong work ethics : An entrepreneur mind is constantly on his work place to ensure that an outcome meets his expectations.

(10) Passion : Passion is the most important that of a successful entrepreneur. He genuinely loves his work because there is a joy that his business gives which goes beyond the money. He should always research and read to make his business grow and be better.

5. Justify the following statements

Question 1.
Entrepreneurship is the best source for self-employment.
Answer:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(4) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

Question 2.
Successful businessman takes calculated risk.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 3.
Entrepreneur must be a good communicator.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility, etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

(4) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(5) Managerial skill and leadership : The entrepreneur who has strong passion of doing or creating something new rather than just to earn profit will become a successful entrepreneur. Managerial skills and leadership are the most important features of successful entrepreneur. Other skills are not considered so important. Entrepreneur must be a good leader and manager of the groups working under him.

(6) Skilful management : The efficient and skilful management of the organisation is an important quality of entrepreneurship. With the help of professional management and skilled managers, entrepreneurship becomes easy and successful activity. The success of any entrepreneurship depends on its skilful management.

(7) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

(8) Gap filling function : Gap filling is considered as the most important feature of entrepreneur. It is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always exist in the knowledge about the production function. Entrepreneur must have all the solutions of the problems.

Question 4.
An entrepreneur must be an innovator.
Answer:
Innovation is a dynamic change brought by entrepreneur by bringing new combinations of factors of production. Innovation by entrepreneur is must for development of an organisation. Entrepreneur can be an innovator in many ways. They are:
(1) Introduction of a new product: Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialisation by embedding it in an environment where it did not exist previously.

(2) Introduction of a new method of production : By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. Introduction of new technology, new machinery, scientific methods of production will save money and time of the organisation.

(3) Opening of a new market : An innovative idea with new products. It opens a new market which are not existing previously.

(4) Carrying out new forms of organisation for industry : An innovative entrepreneur is the one who discovers new methods and new materials. He utilises invention and discoveries in order to make new combinations. Thus, entrepreneur must be an innovator.

Question 5.
With creativity, farmers can expand their Agro tourism Business.
Answer:
With creativity, farmers can expand their Agro tourism business through recreation, fun, entertaining activities. The valuable activities which farmer can do creatively are:
(1) Outdoor recreation : Farmer can add value and can expand their agro tourism business by outdoor recreation like trekking, fishing, hunting, wild life study, horse back riding, etc. All such activities are the point of attraction for a tourist and this can be enjoyed with family and friends too.

(2) Educational experiences : Farmers can also be more creative in farming tours, rice plantation, cooking classes on chulha. All such activities help customer to get hands on experience which they enjoy with adding educational values.

(3) Entertainment : Entertainment through harvest festivals like Hurda Party’ in Maharashtra, local dances, folk songs are recreation also main attraction for a customer for agro tourism. Entertaining activities such as contest, adult and children classes, games, etc. can be arranged. This innovative touch helps farmer to expand his business.

(4) Hospitality services : Hospitality services like farm stays, guided forms makes customer more happy. Farmer can add value to guest experience by offering them refreshment, fresh fruits, juice, fresh food, etc.

Happy customer will definitely returns and also spread good word of mouth to their family and friends. Thus, with creativity, farmers can expand their agro tourism business.

6. Attempt the following

Question 1.
Explain the characteristics Entrepreneurship Development.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility,etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

(4) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(5) Managerial skill and leadership : The entrepreneur who has strong passion of doing or creating something new rather than just to earn profit will become a successful entrepreneur. Managerial skills and leadership are the most important features of successful entrepreneur. Other skills are not considered so important. Entrepreneur must be a good leader and manager of the groups working under him.

(6) Skilful management : The efficient and skilful management of the organisation is an important quality of entrepreneurship. With the help of professional management and skilled managers, entrepreneurship becomes easy and successful activity. The success of any entrepreneurship depends on its skilful management.

(7) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

(8) Gap filling function : Gap filling is considered as the most important feature of entrepreneur. It is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always exist in the knowledge about the production function. Entrepreneur must have all the solutions of the problems.

Question 2.
What is Entrepreneurship Development Programmes (EDP)?
Answer:
An entrepreneurship development
programme has been defined as “a programme designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role efficiently”.

EDP was first introduced in Gujarat in 1970 and was sponsored by the Gujarat Industrial Investment Corporation. EDP is basically a device through which people with entrepreneurial talents are identified, motivated to take up new industrial venture and guided in all aspects of starting a venture or an enterprise.

The following are the main objectives of EDP:
(1) Paster entreprenurial growth : The main objective is to increase the rate of all round entrepreneurial growth through training and educating them to develop the capability, talent and skills of existing entrepreneur.

(2) Optimum use of available resources : Another important objective is to use available resources to optimum level which result into minimisation of wastages and reduction in the overall cost of production. It also saves the invaluable resources for the future generation.

(3) Development of backward regions and improve economic status of socially disadvantage group : Its main objective is to establish different types of industries and business enterprise in the backward regions of the country. This leads to more employment opportunities and more income and savings of the people in backward group. By providing employment and other benefits to socially disadvantaged groups, EDP helps to improve their economic status.

(4) Generation of Employment opportunities : One of the important objectives of EDP is to generate employment opportunities for jobless people in the country by developing industries and business for them.

(5) Widening base for small and medium industries : The EDP helps to create, develop and widen the base for small and medium industries by strengthening them and create more and more entrepreneurs in the country. It helps in making country a job creator and not job seeker.

7. Answer the following

Question 1.
Define entrepreneur. Explain characteristics of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Characteristics : The characteristics of entrepreneur are as follows:
(1) Intellectual capabilities : An entrepreneur is a creative thinker. He always thinks more creatively and better than others. He always give innovative ideas which is the sign of his intellectual capabilities. He has ability to analyse any situation and take proper decision.

(2) Future vision : The entrepreneurs have the ability of foreseeing the future market conditions. He can take appropriate decision by considering recent market situations and changes in market conditions. He must have knowledge of external business environment. This enables them to take timely actions.

(3) Hard work : An entrepreneur is ready to work hard. Hard work is necessary in any type of venture or business activity to make it more successful. He is required to work more tediously, sincerely and seriously for long terms.

(4) Technical knowledge : The entrepreneur should have advance technical knowledge about the products and service, plans of production, etc. Entrepreneur should also update his technical knowledge from time to time to understand latest changes take place in technology.

(5) Communication skills : An entrepreneur needs to communicate effectively with different people like customers, suppliers, creditors, employees, etc. from time to time. He should have good communication skill and command over language he speaks, to be able to express his ideas and strategies effectively. Good communication skills mean proper understanding between sender and the receiver of the message.

(6) Highly optimistic : He should have positive thinking and positive approach in all the activities he undertakes. He is always hopeful and confident about the market situations even in failure or difficult times. It helps him to take the business out of difficulties and make it successful.

(7) Risk-bearing capacity : This is one of the main characteristics of an entrepreneur. He should be calculative in taking risk. He should be prepared to face challenges and look for opportunities in every adverse situation of business.

(8) Self confidence : He should be self confident to achieve his organisational goals. He I should always keep himself confident and motivated to face various obstacles and come out victorious every time in every challenge he faces.

Maharashtra Board OCM 12th Commerce Solutions Chapter 3 Entrepreneurship Development

Question 2.
Define entrepreneur. Explain its functions.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 2 Functions of Management Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 2 Functions of Management

1. (A) Select the correct options and rewrite the sentences

Question 1.
The functions of management start with ……………… function.
(a) organising
(b) planning
(c) co-ordinating
Answer:
planning

Question 2.
The functions of management end with ………………
(a) directing
(b) staffing
(c) controlling
Answer:
controlling

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 3.
……………. sets out standards for controlling.
(a) Staffing
(b) Planning
(c) Co-ordinating
Answer:
Planning

Question 4.
Organizational function is important for execution of the plans which have been prepared by ……………. management.
(a) top level
(b) middle level
(c) lower level
Answer:
top level

Question 5.
……………… is the function which supports to activate the plans with the help of employees.
(a) Staffing
(b) Directing
(c) Co-ordinating
Answer:
Directing

Question 6.
………………. is the function of execution according to the plan and the organisational structure.
(a) Controlling
(b) Directing
(c) Staffing
Answer:
Directing

Question 7.
………………. arranges the work in such a way that minimum conflicts are raised.
(a) Co-ordinating
(b) Organizing
(c) Controlling
Answer:
Co-ordination.

1. (B) Match the pairs

Question 1.

Group A Group B
(A) Planning (1) It Is the process of instructing, guiding, communicating and motivating.
(B) Organizing (2) It is an integration and synchronization of the efforts of group.
(C) Staffing (3) Deciding In advance what to do, how to do, when to do and who Is to do it.
(D) Directing (4) Management is what manager does.
(E) Co-ordlnating (5) To focus on the role of manager.
(6) Decides the ways and means to achieve what has been planned.
(7) It Is the process of comparing the actual performance with the pre-determined standard performance.
(8) It Is a set of principles.
(9) It is the process of recruiting, selecting, placing and remunerating.
(10) To manage is to forecast and plan.

Answer:

Group A Group B
(A) Planning (3) Deciding In advance what to do, how to do, when to do and who Is to do it.
(B) Organizing (6) Decides the ways and means to achieve what has been planned.
(C) Staffing (9) It is the process of recruiting, selecting, placing and remunerating.
(D) Directing (1) It Is the process of instructing, guiding, communicating and motivating.
(E) Co-ordlnating (2) It is an integration and synchronization of the efforts of group.

1. (C) Give one word/phrase/term for the following statements

Question 1.
The right person at the job with right pay.
Answer:
Staffing

Question 2.
A person who shows the correct path as well as guides employees in solving the problems.
Answer:
Director

Question 3.
First function of management.
Answer:
Planning

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 4.
Last function of management.
Answer:
Controlling

Question 5.
It is an intellectual process of logical thinking and rational decision-making.
Answer:
Planning

Question 6.
The term that is used to denote the structure.
Answer:
Organisation

Question 7.
It is the process of attracting, recruiting, selecting, placing, appraising and remunerating the people.
Answer:
Staffing

Question 8.
The process that leads the employees towards the accomplishment of organisational goals.
Answer:
Directing

Question 9.
It increases the team spirit of work place.
Answer:
Co-ordinating

Question 10.
It is the process of comparing the actual performance with the predetermined standard performance.
Answer:
Controlling.

1. (D) State whether the following statements are True or False

Question 1.
Every function of management is not based on planning.
Answer:
False

Question 2.
Specialization in activities leads to increase in organisational efficiency.
Answer:
True

Question 3.
Qualified, efficient and skilled work force is always an asset of the organization.
Answer:
True

Question 4.
Cooperation is not necessary for smooth flow of organisational activities.
Answer:
False

Question 5.
Co-ordination motivates the employees to take initiative while completing their assigned task.
Answer:
True

Question 6.
Standards are not set for every performance in controlling function.
Answer:
False

1. (E) Find the odd one

Question 1.
Planning, Organizing, Staffing, Writing.
Answer:
Writing

Question 2.
Selecting, Training, Co-ordinating, Placing
Answer:
Co-ordinating.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

1. (F) Complete the sentences

Question 1.
The tasks of getting the things done by others is known as ……………..
Answer:
Management

Question 2.
The functions of manager start with …………………
Answer:
Planning

Question 3.
The …………….. function of management initiates action
Answer:
Directing

Question 4.
Recruitments are done under ……………….. function.
Answer:
Staffing

Question 5.
………………. is the fundamental function of management.
Answer:
Planning

Question 6.
………………. integrates departmental activities for achieving common goal of the organisation.
Answer:
Co-ordinating

Question 7.
……………… is the last function of management.
Answer:
Controlling

1. (G) Select the correct option from the bracket

Question 1.
Planning is a detailed programme of (present/ future/past) course of action.
Answer:
future

Question 2.
Directing is a responsibility of (manager/ workers/people) at all levels.
Answer:
manager

Question 3.
Qualified, efficient and skilled workforce is always an (liabilities/assets/expenses) of the organization.
Answer:
assets.

1. (H) Answer in one sentence

Question 1.
What is management?
Answer:
The tasks of getting the things done by others to achieve organisational goal is called management.

Question 2.
What is planning?
Answer:
Planning means deciding in advance what to do when to do, how to do, where to do it and who is to do it.

Question 3.
What is staffing?
Answer:
The process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce is called staffing.

Question 4.
What is directing?
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve the pre-determined goals of the organisation.

Question 5.
What is controlling ?
Answer:
Controlling is a function of comparing the actual performance with the predetermined standard performance to measure deviation if any, identifying causes of deviation and suggest corrective measures.

1. (I) Correct the underlined word and rewrite the following sentences

Question 1.
Factors of business environment are always fixed.
Answer:
Factors of business environment are always changing.

Question 2.
Staffing is concerned with machines.
Answer:
Staffing is concerned with humans.

Question 3.
Directing is a function of comparing the actual performance with the pre-determined performance.
Answer:
Controlling is a function of comparing the actual performance with the pre-determined performance.

Question 4.
Co-ordination helps to maximise the wastage of resources and controls the cost of work.
Answer:
Co-ordination helps to minimise the wastage of resources and controls the cost of work.

Question 5.
Controlling measures are rigid to some extent.
Answer:
Controlling measures are flexible to some extent.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

1. (J) Arrange in proper order

Question 1.
Controlling, Organizing, Planning.
Answer:
Planning, Organising, Controlling.

Question 2.
Directing, Co-ordinating, Staffing.
Answer:
Staffing, Directing, Co-ordinating.

2. Explain the following terms/concepts

Question 1.
Management
Answer:
The task of getting the work done by others to achieve organisational goal is called management. According to L. A. Allen, ‘Management is what manager does. Management is a set of principles which relate to the various functions such as planning, organising, staffing, directing, co-ordinating, controlling, etc. which are helpful in achieving organisational goals.

Question 2.
Planning
Answer:
Planning is the basic function of management. Planning is an intellectual process of logical thinking and rational decision-making. It includes deciding the things to be done in advance. In short, planning is a detailed programme of future course of action. Proper planning and its implementation is key to achieve the objectives of an organisation.

Question 3.
Organising
Answer:
Organising is the process of identifying, bringing the required resources together such as men, money, material, machines and method and arranging them in proper manner to achieve the goals of an organisation. It is prepared by the top level management. Organising function decides the ways and means to achieve what has been planned. Organising is more important in executing the plan.

Question 4.
Staffing
Answer:
Staffing is the function of execution according to plan and organisational structure. It is the process of attracting, recruiting, training, developing, appraising, remunerating, developing and retaining the best workforce. Right person at right job with right pay is the basic principle of staffing. This function is concerned with managing humans and not material.

Question 5.
Directing
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve pre-determined goals of an organisation. Director shows correct path as well as guides the employees in solving the problems wherever necessary. Directing is the soul of management function.

3. Study the following case/situation and express your opinion

Question 1.
Mr. Ram, an emerging entrepreneur has designed a structure of his business organization by taking into consideration the required resources such as land, money, machinery, workforce, etc. for his new business. He appointed Mr. Shyam as a manager. Mr. Ram has assigned the responsibilities such as recruitment, selection, training and development and to determine the remuneration of the employees to Mr. Shyam. Mr, Ram. has also appointed Mr. Shubham to supervise the work done by the employees according to the standards given to the employees, Mr. Shubham has also to suggest the remedies to the employees wherever necessary. On this context, find out the management functions performed by
(i) Mr. Ram
(ii) Mr. Shyam
(iii) Mr. Shubham
Answer:
(i) Mr. Ram performs the function of planning and organising. He is an emerging entrepreneur and plans the business structure and organises different resources.

(ii) Mr Shyam is performing the function of staffing as his main duty is to recruit, select, train and develop the employees and to decide their remuneration accordingly.

(iii) Mr. Subham is performing the function of controlling. He compares actual performances of employees with standard performance given. He discovers causes of deviations and suggests remedies to overcome deviations.

Question 2.
In XYZ Company, Mr. Lele gives instructions to the employees working under him, provide guidance and motivates them for their best performance. On the other hand, Mr. Sawed takes effort to harmonize the work done by the employees of different departments while achieving organisational goal. Mr. Desai is looking after the arrangement of required resources the business organization.
Mention the name of employee engaged in following functions :
(i) Organisation
(ii) Direction
(iii) Coordination
Answer:
(i) Mr Desai is engaged in the organising function as he is looking after arrangement of required resources for the business organisation.
(ii) Mr. Lele is engaged in the function of directing as he gives instructions to the employees working under him, provides guidance and motivates them for their best performance.
(iii) Mr. Sayyed is engaged in the function of co-ordination as he takes effort to harmonize the work done by the employees of different departments.

4. Distinguish between

Question 1.
Planning and Organising
Answer:

Planning Organising
1. Meaning Planning is a management function that decides in advance what to do, how to do, when to do, where to do and who is to do it. Organising refers to the process of putting together various resources and activities of the organisation into a system.
2. Objective The objective of planning is to set the goals and choose the means to achieve those goals. The main objective of organising is to identity and bring together all the resources.
3. Area of function Planning involves setting objectives, identifying alternative courses of actions and selecting the best plan for the organisation. Organising involves identifying the activities and grouping of relative activities of the organisation.
4. Order Planning is the first and foremost function of management. It precedes every other function. In organising function, internal as well as external factors are considered to make arrangement of resources.
5. Nature Planning is continuous in nature. It is related with those resources which are required for achieving the targets. Organising is related with all the available resources as they need to be properly arranged.
6. Levels of management Top management is responsible for preparing planning for the activities of the entire organisation. Usually, the function of organising is undertaken by the top level management and middle level management.

Question 2.
Organising and Staffing
Answer:

Organising Staffing
1. Meaning Organising refers to the process of putting together various resources and activities of the organisation into a system. Staffing is a process of recruitment through which competent employees are selected, properly trained, effectively developed and suitably rewarded.
2. Objective The main objective of organising is to identify and bring together all the resources. The main objective of the staffing is to obtain the most competent and efficient staff to improve the overall performance.
3. Area of function Organising involves identifying the activities and grouping of relative activities of the organisation. Staffing involves selection, recruitment, training, developing, promotion, transfer, etc. of employees.
4. Factors In organising function, internal as well as external factors are considered to make arrangement of resources. In staffing function, mostly internal factors such as human factor, finance, work load, etc. are considered.
5. Resources Organising is related with all the available resources as they need to be properly arranged. Staffing is related with human resources only.
6. Levels of management Usually, the function of organising is undertaken by the top level management and middle level management. Usually, the function of staffing is undertaken by the middle level management.

Question 3.
Staffing and Directing
Answer:

Staffing Directing
1. Meaning Staffing is a process of recruitment through which competent employees are selected, properly placed and trained, effectively developed and suitably rewarded. Directing means instructing, guiding, inspiring and motivating the subordinate employees so that their efforts result in the achievement of goals.
2. Objective The main objective of the staffing is to obtain the most competent and efficient people to improve the overall performance. The main objective of directing is to ensure that the employees at different levels accomplish their tasks according to plans.
3. Area of function Staffing involves recruitment, selection, training, promotion, development, transfer, etc. of employees. Directing involves guiding, instructing, inspiring, motivating and communicating with the subordinates.
4. Order Staffing function follows organising as human resources are required in an organisation. Directing function follows organising and staffing as direction is needed to guide and inspire the employees.
5. Targets Targets of staffing include allocation of human resources to achieve better results. Targets of direction include giving guidance and inspiration to employees to achieve better results.
6. Outcome Staffing function helps to select right persons for right jobs at right time. Directing function helps to maintain discipline among the staff.

Question 4.
Directing and Controlling

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 5.
Co-ordination and Controlling
Answer:

Co-ordination Controlling
1. Meaning Co-ordination refers to the process of developing harmony and integration of different activities to achieve common organisational goals. Controlling is a managerial function that measures deviation of actual results from the standards set and takes necessary corrective actions.
2. Objective The main objective of co-ordination is to ensure unify of efforts of the employees and smooth functioning of the organisation. The main objective of controlling is to ensure that goals or targets must be accomplished as per plan.
3. Area of function Co-ordination involves efforts of top level, middle level and lower level management. Controlling involves fixation of standard, measurement of actual performance and finding deviations taking corrective actions to improve performance.
4. Factors In co-ordinating function only internal factors are considered to create unity of action. In controlling function internal as well as external factors are taken care for taking corrective actions.
5. Resources Co-ordination is related with human resources only. Controlling is related with all the resources as it helps to achieve the given targets.
6. Levels of management All levels of management are responsible for the co-ordination function to achieve given targets. Top level management and middle level managements are responsible for controlling of organisational activities.

Question 6.
Planning and Controlling
Answer:

Planning Controlling
1. Meaning Planning is a management function that decides in advance what to do, how to do, when to do, where to do and who is to do it. Controlling is a managerial function that measures deviation of actual performance from the standards set and takes corrective actions.
2. Objective The main objective of planning is to set the goals and choose the means to achieve those goals. The main objective of controlling is to ensure that goals or targets must be accomplished as per plan.
3. Area of function Planning involves setting objectives, identifying alternative courses of actions and selecting the best plan for the organisation. Controlling involves fixation of standard, measurement of actual performance and finding deviations taking corrective actions to improve performance.
4. Order In the sequence of managerial functions, planning is the first and foremost function. In the sequence of managerial functions, controlling is the last function of the management.
5. Resources Planning is related with those resources which are required for achieving the targets. Controlling is related with all the resources as it helps to achieve the given targets.
6. Levels of management Top management is responsible for preparing planning for the activities of the entire organisation. Top level management and middle level managements are responsible for controlling of organisational activities.

Question 7.
Organising and Directing

Question 8.
Organising and Co-ordinating
Answer:

Organising Co-ordinating
1. Meaning Organising refers to the process of putting together various resources and activities of the organisation into a system. Co-ordination refers to the process of developing harmony and integration of different activities to achieve common organisational goals.
2. Objective The main aim of organising is to identify and bring together all the required resources. The main aim of co-ordination is to ensure unity of efforts of employees and smooth functioning of the organisation.
3. Area of function Organising involves identifying the activities and grouping of relative activities of the organisation. Co-ordination involves deliberate or consistent efforts by the management to create harmony and unity of action.
4. Factors In organising function, internal as well as external factors are considered to make arrangement of available resources. In co-ordinating function, only internal factors are considered to create unity of action.
5. Resources Organising is related with all the resources which are required to be arranged in proper order. Co-ordination is related with human resources only.
6. Levels of management Top level management and middle level managements are responsible for the organising of resources to achieve desired objectives. All levels of management are responsible for the co-ordination to achieve the given targets.

5. Answer in brief

Question 1.
Explain any five points of importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 2.
Explain any five points of importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

Question 3.
Describe any five points of importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

Question 4.
Explain any five points of importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

Question 5.
Describe any five points of importance of ! coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

6. Justify the following statements

Question 1.
Planning is the first function of management.
Answer:
(1) Planning is the basic function of management. Every function of management is based on planning. Planning is an intellectual process of logical thinking and rational decision i making.

(2) Designing i.e. doing a proper planning and implementing it accordingly is the key of achieving the objectives of organisation.

(3) Planning means deciding in advance what to do, when to do, how to do, where to do and who is to do it. Thus, it is a detailed programme of future courses of action.

(4) Planning involves setting objectives, identifying alternative courses of action and selecting the best plan. It focuses on organisation’s objective and develop various course of action to achieve those goals.

Question 2.
Controlling is the last function of management.
Answer:
(1) It is important for am organisation to keep a check on whether things are moving as per plan or not. So controlling function comes as the last but indispensable function of management. The effectiveness of planning can be determined with the function of controlling.

(2) Controlling function helps in comparing the actual performance with the pre-determined standard and performance. It is the process of bringing about conformity of performance with planned action.

(3) Controlling function helps in measuring deviation, if any, identifies the course of deviation and suggests corrective measures. The process of controlling helps in formulation of future plans also.

(4) Controlling helps in checking and measuring performance at all the levels of management, as it compares and finds deviation, analyses the causes of deviation and suggests corrective measures. All planning may fail in the absence of proper controlling measures.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 3.
Organizing facilitates administration as well as operation of the organization.
Answer:
(1) Organising function is also called as ‘doing function’ i.e. putting the plan into action. Administration and operation both are doing function as organising is the process of putting together various resources and activities of the organisation into a system.

(2) Organising involves identifying the activities and grouping of relative activities of administration and operational department.

(3) Organising function defines, departmentalizes and assigns activities so that they can be most effectively executed for the smooth flow of administration.

(4) Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. The duplication of work can be avoided and effective delegation becomes possible.

Question 4.
Right person at right job with right pay is the basic principle of staffing.
Answer:
(1) The main function of staffing is to select the right person for the right job with right pay. Selecting the right person for the right job brings efficiency and specialisation in the organisation.

(2) It also bring job satisfaction as adequate remuneration increases morale of the employees. Training and development programmes and job security are the factors which are important in providing job satisfaction.

(3) Proper selection of qualified, efficient and skilful work force is always an asset of the organisation. Proper selection of employees contributes in the higher efficiency and leads to long term positive effects in the organisation.

(4) With proper selection process, right persons for right jobs are placed and regularly appraised on merit basis. The criteria of appraised are duly communicated which brings peace and harmony in the organisation.

Question 5.
Co-ordination between different functions and all levels of management is the essence of organisational success,
Answer:
(1) Co-ordination is an integration of different activities which is essential for their smooth flow. It establishes harmony among all the activities of an organisation in achieving desired goals. Co-ordination will not exist unless efforts are taken at all levels of management.

(2) Co-ordination is the synchronization of the efforts of a group so as to provide unity of action for organisational goals. It is a hidden force which binds all other functions at all levels of management.

(3) In an organisation, a number of persons are working together to achieve a common goal. Their work is closely linked with each other. Co-ordination function brings all the group efforts together and harmonise them carefully.

(4) Co-ordination is orderly arrangement of group efforts to provide unity of action to achieve common goals. Co-operation, team work and higher efficiency level lead to attainment of goals and thus, it is the essence of organisational success.

7. Attempt the following

Question 1.
Explain the importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 2.
Describe the importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

Question 3.
Explain the importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

Question 4.
Explain the importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 5.
Describe the importance of coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

Question 6.
Explain the importance of controlling.
Answer:
Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(2) Making efficient utilisation of resources : By using various control techniques, managers can keep a close watch over the utilisation of human, physical and financial resources. They can prevent the misuse or wastage of resources and ensure proper utilisation of the same.

(3) Accuracy of standards : Proper and efficient control system help the management to check the standards set are accurate or not. This system also keeps check on the changes taking place in the organisation from time to time. Controlling functions are flexible to some extent. This in turn facilitates the organisation to review the standards by considering such changes.

(4) Motivates Employees : A good control system gives information in advance about the standard performance and discovers efficient and inefficient employees. Efficient employees may be given Financial rewards or incentives to motivate them further. The manager may recommend motivational measures in case it finds that deviations are due to insufficient motivation.

(5) Ensures order and discipline : An efficient and good control system ensures order and discipline in the organisation. It prevents and reduces unnecessary behaviour on the part of employees. Under this system, regular checking is done by the managers or departmental heads and preventive measures are taken against deviation or indiscipline.

8. Answer the following

Question 1.
Define the term Planning and explain the importance of planning.
Answer:
[A] Meaning : Planning is the fundamental and basic function of management. It is a process of setting goals and choosing the means to achieve these goals. Planning means deciding the future course of action which determines what is to be done, how to do it, when to do it, who is to do it and how results are to be evaluated. It is a detailed programme in which all activities to be performed in future are mentioned keeping in mind the objectives. Thus, it is an intellectual process of logical thinking and rational decision-making.

[B] Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

(6) Helps in decision-making : Planning helps the management to achieve to take a rational decision and to select best alternatives by considering all positive and negative outcomes of all the alternatives the decisions are taken after selecting the best suitable alternatives a predefined goals.

(7) Useful is setting the standards for controlling: Planning sets the standards of performance to be achieved and which can be measured with the actual performance for find out about any deviation. Such deviation can be taken care by controlling steps. Thus, planning provides basis for maintaining discipline in an organisation.

(8) Facilitates co-ordination of all activities : Proper planning reduces the overlapping among all activities of business which are closely linked with each other. Planning interrelates such activities of all department work as per overall plan and thus management co-ordination is achieved.

(9) Facilitates other functions : Planning is the primary function of all the functions of management. Every organisational function is set to achieve the organisational goals at the planning stage. Other management functions such as organising, staffing, etc. cannot be undertaken till the plan is ready.

(10) Promotes innovative ideas : Planning is the basic function. The process of decision-making involves promotion of innovative ideas after critical
thinking. It is the most challenging activity for the management as it guides all future activities and actions of an organisation. In the end, these innovative plans result in attainment of the organisation goals.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 2.
What is Organising? Explain the importance of organising.
Answer:
[A] Meaning: Organising is the process of putting together various activities, resource and people into a system so that people work together for achieving planned objectives. Organising means arranging everything in an orderly manner. It means making arrangements like money, machinery, materials, man-power and other physical resources to achieve the predefined goals. The synchronization and combination of workforce, physical, financial and information resources in the process of organising.

[B] Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

(6) Helps for effective administration : A sound organising structure facilitates in defining the right job to the right individual. Similarly, the functions, duties and role of each and every employee are well defined in the organising function. This facilitates effective administration and ultimately leads to efficient administration.

(7) Helpful for growth and diversification : Smooth and efficient functioning, clearly defined authority and responsibilities and smooth co-ordination leads to the growth of the organisation. Use of appropriate techniques of control brings efficiency and reduces wastages which ultimately leads to higher profitability of the organisation. All this is possible when the structure of the organisation is well defined.

(8) Creates sense of security: Organising function defines and clarifies the jobs, functions and roles, powers and authority assigned to every manager and employee. Clarity in job profile eliminates confusion and gives responsibility. It helps a lot in getting mental satisfaction and develops sense of security.

(9) Scope for innovation : The manager can use his talent, knowledge and experience to take decisions on various matters and problems. For instance, decision to adopt new technique of production in the organisation. Thus, his talent flourishes by adopting new changes in the methods of work.

(10) Optimum utilisation of resources : Organising function lays down the best possible uses of resources for a specific job. Thus, it is possible to use the available resources to their optimum level and thereby avoid wastage as well as their excessive use.

Question 3.
What do you mean by Staffing? Describe the importance of staffing.
Answer:
[A] Meaning : Right person at right job with right pay is the basic principle of staffing, Staffing is the process involved in attracting, identifying, assessing, recruiting, placing, evaluating and directing employees. It is recruitment, selection, development, training and compensation of employees. It is very challenging for the organisation to focus on best utilisation of workforce by using their talents and skills, retaining them and arranging training and t development programme.

[B] Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

(7) Long term effect : Sub-functions of staffing, namely, proper selection, training, development, motivation, etc. help to achieve long-term benefits such as increase in productivity and efficiency, loyalty of customers and employees, etc.

(8) Essential contribution : The selection of employees should be based on the ability of the prospective candidates to meet the future challenges. Selection is based on the ability of the prospective employee so that organisation can meet the future challenges wisely. Therefore, in staff selection, the selectors should take into account the contribution of the employees in their future roles.

(9) Provides job satisfaction : A good staffing policy creates job satisfaction in the minds of the employees. For instance, proper placement of the individuals according to their knowledge, experience and aptitude, timely promotions, training etc. give job satisfaction. Fair remuneration and job security are the factors which are important in providing job satisfaction.

(10) Maintains harmony: Proper staffing policy helps to develop good labour relations. The performances of employees are regularly appraised and promotions are made on merits. Due to this, employees develop positive attitude towards the management which, in turn, helps to bring about peace and harmony in the organisation.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

Question 4.
Give the meaning of Directing and explain the importance of directing.
Answer:
[A] Meaning : Directing is the process of instructing, guiding, inspiring, motivating and supervising the employees to achieve pre-determined organisational goals. It is a continuous function started at top level and flows through the lower level of an organisation. It is continued through out the tenure of an organisation. A few philosophers called it as ‘Life spark of an Enterprise. Director shows the correct path as well as guides the employees in solving the problems.

[B] Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

(6) Efficient utilisation of resources : Constant instructions can be given to the subordinates to make the maximum use of the available resources and to make every possible effort to minimize the wastages of resources. Thus, effective direction helps in optimum use of available resources such as men, materials, money and methods which helps to reduce cost and increase profit.

(7) Creates team spirit : The supervisors through proper direction can guide, lead and motivate their subordinates to co-ordinate the activities. Thus, team spirit is created which helps the employees to perform their activities more efficiently and on time. This results in faster achievement of organisational goals.

(9) Increases efficiency level : Effective direction and guidance results in better performance of the employees. It also enables the managers and other superiors to guide the subordinates as the leader while performing their jobs.

(8) Exploring capabilities of individuals: Every employee in the organisation has certain capabilities and potential. Through proper direction, motivation and encouragement manager can utilise them to their optimum level to achieve organisational goals and increases efficiency of organisation.

(10) Co-operation : Co-operation between different departments from top level to the bottom level and among the people within the department is must. Co-operation is essential for the success and achievement of organisational goals and for smooth flow of all organisational activities.

Question 5.
What is Coordinating? Describe the importance of coordinating.
Answer:
[A] Meaning : Co-ordination as a function of management refers to the task of developing harmony between various sections of departments and between various departments of the organisation. Thus, co-ordination is a hidden force which binds all other functions of the management integrating the group activities to accomplish the organisational goal efficiency. As the work of each one is linked in an organisation is necessary in co-ordination.

[B] Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

(6) Improve relations : Co-ordination brings develops good relations among the employees working at different levels of management. For instance, marketing department depends upon production department, production department : depends upon purchase department and so on. Proper co-ordination always helps employees to improve and build strong relations among the employees working in different departments.

(7) Leads to Higher Efficiency : Co-ordination facilitates the optimum use of physical and human resources. This leads to higher returns at lesser cost, thereby higher efficiency. Co-ordination ultimately leads to the optimum use of the resources, higher efficiency reduction in cost and reduction in wastages.

(8) Improves goodwill : Higher sales and higher profitability can be achieved due to synchronized efforts. It earns a name and goodwill in the corporate world. This leads to better value of shares in the stock exchange (market).

(9) Unity of direction : Co-ordinating function helps to bring together activities of different departments to achieve common goals and objectives of the organisation. Therefore, co¬ordination is needed to give proper direction to all the departments of the organisation.

(10) Specialisation : In every business organisation all departments are headed by qualified and specialised professionals in their respective field. The specialised knowledge of these departmental heads helps in various managerial decisions. Proper and efficient co-ordination among these professionals helps to achieve organisational goals (targets) as planned by the top management.

Question 6.
Define the term Controlling and explain the importance of controlling.
Answer:
[A] Meaning : Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes and suggest the corrective measures. It is performed by all levels of management. Controlling is an indispensable function at all levels of management.

[B] Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(2) Making efficient utilisation of resources : By using various control techniques, managers can keep a close watch over the utilisation of human, physical and financial resources. They can prevent the misuse or wastage of resources and ensure proper utilisation of the same.

(3) Accuracy of standards : Proper and efficient control system help the management to check the standards set are accurate or not. This system also keeps check on the changes taking place in the organisation from time to time. Controlling functions are flexible to some extent. This in turn facilitates the organisation to review the standards by considering such changes.

(4) Motivates Employees : A good control system gives information in advance about the standard performance and discovers efficient and inefficient employees. Efficient employees may be given Financial rewards or incentives to motivate them further. The manager may recommend motivational measures in case it finds that deviations are due to insufficient motivation.

(5) Ensures order and discipline : An efficient and good control system ensures order and discipline in the organisation. It prevents and reduces unnecessary behaviour on the part of employees. Under this system, regular checking is done by the managers or departmental heads and preventive measures are taken against deviation or indiscipline.

(6) Facilitates co-ordination : Every manager or superior co-ordinates the activities of subordinates towards the process of controlling. Controlling reveals the weak points where co¬ordination falls short, so that the management can take timely action.

Maharashtra Board OCM 12th Commerce Solutions Chapter 2 Functions of Management

(7) Psychological pressure : Efficient control system puts psychological pressure on the employees to perform better. Their performance is measured and compared with standards set from time to time. All the employees know that their performance will be evaluated and hence they put on their best to perform well.

(8) Ensures Organisational Efficiency and Effectiveness : Efficient and proper control system ensures organisational efficiency and ; effectiveness. The factors of controlling such as motivation for better performance, achievement of co-ordination in the performance and managers’ responsibility ensure that the organisation works i more efficiently.

(9) Build good Corporate image : An efficient controlling system helps to improve overall efficiency and quality of work. As a result organisation achieves its goals according set standards. This in turn helps to build a good corporate image and develops reputation of the business.

(10) Acts as a Guide : Controlling function provides set of standard performance. All levels of managers and employees work according to it. They follow these standards to achieve desired results. The steps taken for controlling an activity guide the management while planning any future activity.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 1 Principles of Management Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 1 Principles of Management

1. (A) Select the correct option and rewrite the sentence

Question 1.
………………… was regarded as the Father of Scientific Management.
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler
Answer:
(b) F. W. Taylor

Question 2.
Principle of ……………… is based on ‘A place for everything and everything in its place.
(a) Discipline
(b) Order
(c) Equity
Answer:
(b) Order

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 3.
Member of organization should receive orders from ………………..
(a) many superior
(b) one superior
(c) all superiors
Answer:
(b) one superior

Question 4.
Scalar chain means the hierarchy of …………….. from the top level to the lower level for the purpose of communication.
(a) discipline
(b) unity
(c) authority
Answer:
(c) authority

Question 5.
Taylor recommended total ……………….. foremen to control the various aspects of production.
(a) eight
(b) three
(c) two
Answer:
(a) eight

1. (B) Match the pairs

Group A Group B
A) Henry Fayol 1) Eight Foremen
B) Principle of Unity of Direction 2) F.W. Taylor
C) Principles of Management 3) Proper division of all activities
D) Scientific Management Theory 4) general guidelines
E) Functional Organization 5) A place for everything and everything in its place
6) One head-one plan
7) Low wage rate
8) Harmony between the employees and management
9) German engineer
10) Modern Management

Answer:

Group A Group B
A) Henry Fayol 1) Modern Management
B) Principle of Unity of Direction 2) One head-one plan
C) Principles of Management 3) general guidelines
D) Scientific Management Theory 4) F.W. Taylor
E) Functional Organization 5) Eight Foremen

1. (C) Give one word/phrase/term for the following statements:

Question 1.
The study of movement of an employee as well as machine while completing particular task.
Answer:
Motion Study

Question 2.
The technique of observing and recording the time required by an employee to complete a given task.
Answer:
Time Study

Question 3.
Study consists of an organised, systematic and critical assessment of various activities.
Answer:
Work Study

Question 4.
The principle which deals with ‘to do work with innovative way’.
Answer:
Principle of Initiative

Question 5.
The principle which is based on ‘a place for everything and everything in its place’.
Answer:
Principle of Order.

1. (D) State whether the following statements are True or False

Question 1.
The principles of management are universal in nature.
Answer:
True

Question 2.
Management principles are applied differently under different situations.
Answer:
True

Question 3.
Only some principles of management are important.
Answer:
False

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 4.
Henry Fayol has given different techniques of management.
Answer:
False

Question 5.
F. W. Taylor has proposed 14 principles of management.
Answer:
False

Question 6.
Each member of organisation should receive orders only from one superior.
Answer:
True

1. (E) Find the odd one.

Question 1.
Principle of Authority and Responsibility, Motion Study, Principle of Division of Work, Principle of Discipline.
Answer:
Motion Study

Question 2.
Fatigue Study, Principle of Unity of Command, Work Study, Motion Study.
Answer:
Principle of unity of Command

1. (F) Answer in one sentence

Question 1.
What is principle of unity of command?
Answer:
Principal of unity of command implies that every employee should receive orders and instructions from one boss only and he should be responsible and accountable to him only.

Question 2.
What is standardization of tools and equipment?
Answer:
Standardisation of tools and equipment refers to providing the standard tools and equipment for production and maintaining standard working conditions and environment at the place of work.

Question 3.
What is differential wage rate?
Answer:
Differential wage rate means offering higher rate of wages to those employees who complete the work more than the standard quantity and lower rate of wages to those employees who perform below the standard fixed.

Question 4.
What is Subordination of Individual Interest into Organisational Interest?
Answer:
Subordination of individual interest into organisational interest means the interest of an individual must be given less importance than the interest of the organisation.

Question 5.
What is the meaning of principle?
Answer:
Principle means a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning.

1. (G) Correct the underlined word and rewrite the following sentences.

Question 1.
Security in job always affects adversely on the efficiency of employees.
Answer:
Insecurity in job always affects adversely on the efficiency of employees.

Question 2.
Esprit de corps means ‘division is strength’.
Answer:
Esprit de corps means ‘unity is strength’.

Question 3.
Each member of organisation should receive orders from only one subordinate.
Answer:
Each member of organisation should receive orders from only one superior.

Question 4.
Decentralisation means concentration of powers and authorities at a specific position.
Answer:
Centralisation means concentration of powers and authorities at a specific position.

Question 5.
Management techniques are applied differently under different conditions.
Answer:
Management principles are applied differently under different conditions.

2. Explain the following terms/concepts

Question 1.
Motion Study
Answer:
(1) This is one of the important techniques f of scientific management developed by E W. Taylor. Motion study refers to the movements of employees, as well as movement of machine while completing . a particular task. The motion study helps the manager to know the movements required for a person to do a particular job.

(2) This study is useful to manager to eliminate the unnecessary movements or their sequence for doing the job. It also helps the manager to combine some actions or movements in the process. It increases efficiency and productivity of the employees and helps in reducing the wastage of time, raw material and improving the usefulness of resources.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 2.
Differential Piece Rate System.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(2) In differential piece wage rate plan, the. standard is determined for production by the management. The workers who produce more them the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.

(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

Question 3.
Fatigue Study
Answer:
The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

Question 4.
Time Study.
Answer:
(1) Time study is one of the important techniques of scientific management developed by E W. Taylor. Time study is useful to the manager to determine and record the time needed to complete a particular job or task. It is based on the speed of average worker.

(2) Under this technique of scientific management, every part of the entire work is considered in detail and the time required to complete each element of job or task is ascertained. On the basis of the time study, the manager determines the standard time required to complete a particular job. This also facilitates the manager to decide the remuneration to be paid and efficiency of the worker and to control the cost of work.

3. Study the following case/situation and express your opinion.

Question 1.
Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory. On this basis:
(i) Identify any one principle of management in above case.
(ii) What is the designation of Mrs. Naina in this organisations?
(iii) Who is responsible for overall planning of the organisation?
Answer:
(i) In the above case, principle of Division of work is identified.
(ii) The designation of Mrs. Naina is Human Resource Manager.
(iii) Mr. Harshad, an entrepreneur of eco-friendly utensils, is responsible for overall planning ; of the organisation.

Question 2.
In ‘Fine Diamonds Ltd.’ 200 employees are working in three shifts. In first shift 60 employees, in second shift 60 employees and in third shift 80 employees are working without sufficient breaks except lunch break and shift change break. No employee is able to complete the work in designated time due to inappropriate time management which results into delay for next shift employees.
(i) Identify which scientific principle needs to be followed by the company.
(ii) Suggest two scientific techniques which can be used for smooth flow of work in ‘Fine Diamonds Ltd.
(iii) Why the work is not being completed in time?
Answer:
(i) In the above case, Principle of scientific management called Science, Not Rule of Thumb needs to be followed.
(ii) Work study based on the technique of fatigue study and Scientific task setting can be used for smooth flow of work in ‘Fine Diamonds Ltd.’
(iii) Reasons for non-completion of work in time are:

  1. Long working hours without sufficient breaks reduces the efficiency of labour.
  2. Inappropriate time management (planning) done by the departmental head (Functional Manager) result into delay for next shift employees.
  3. Standard required time and standard output are not defined by the manager or management of “Fine Diamonds Ltd.”

4. Answer in brief

Question 1.
Explain any five principles of management of Henry Fayol.
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

(2) Principle of Authority and Responsibility:
Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.
Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management 1

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 2.
Describe any four techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level:

  1. Route clerk : Explains the movement of work from one machine to other.
  2. Instruction clerk : Gives and records instructions to complete the work.
  3. Time and cost clerk : Decides the time to complete the work and work out the cost.
  4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

  1. Gang Boss : Gets the actual work done from employees.
  2. Speed Boss : Takes care that work is done in specified time.
  3. Repair Boss : Manages security and maintenance of mechanism.
  4. Inspector : Makes sure that work is completed as per specified standards.

5. Justify the following statements

Question 1.
Principles of management are flexible in nature.
Answer:
(1) Principles of management are the statements of fundamental truth which act as guidelines for managerial decision-making and action. They establish cause and effect relationship. They are evolved through observation, analysis and experiments.

(2) Principles of management although fundamental, are not rigid. They are flexible in nature in the sense they can be changed or modified according to the situation and requirements of the organisation. Managers can change these principles to suit the requirements of the organisation.

(3) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc. For instance, in the context of present business scenario, at many places the ‘family management has been substituted by professional management’.

(4) Modern business world is dynamic. The situations in a business enterprise keep on changing continuously. No two circumstances are identical. Principles of management can be changed, adjusted or modified and used in the enterprise as per its changing needs and requirements. By identifying problems of business changes will be accepted.

Question 2.
Management principles are helpful in optimum utilization of resources.
Answer:
(1) Materials or abstract qualities that a person or organisation uses to perform the work is called resources, e.g. tools, stocks, time, employees, etc. In every organisation, two types of resources are used and they are: (i) Physical resources such as materials, machines, money, etc. and (ii) Human resources i.e. manpower.

(2) The different types of resources are used in the organisation to manufacture or produce different types of goods and services. The resources are scarce in relation to their demand and therefore resources should not be wasted and misused. They should be used carefully and up to their optimum capacity.

(3) The basic aim and function of management are to make and maintain proper balance and allocate these resources by putting them to maximum possible use and control on wastage of resources. Through the use of different techniques and management principles, management maintains discipline and healthy working environment to establish cordial relationship with the employees.

(4) It helps to increase the efficiency level of employees and to manage the administration effectively, e.g. use of modern and standard tools and machineries. It also helps to increase quality, productivity and level of efficiency of human resources.

Question 3.
Principle of equity is important.
Answer:
(1) The principle of equity suggests that employer should give kind, fair, just and equal treatment to the employees. Managers should be kind, impartial and fair to their subordinates.

(2) The principle of equity further states that there should not be any discrimination between the employees while making the payment of wages. The employees working on the same level but in different departments should be paid same wages.

(3) The wages payable to employees should not depend on the departments but the level at which they are working, e.g. Foremen should be paid higher wages than that is paid to employees working under them.

(4) The principle of equity also states that there should not be any discrimination between the employees while distributing work between them. As far as possible, there should be equal distribution of work. Thus, equality in treatment of employees boosts the morale and develops a sense of belongingness among the employees. It helps to develop loyalty of employees towards organisation and avoid conflicts.

Question 4.
Taylor emphasized on standardization of tools and equipment.
Answer:
(1) Fredrick Winslow Taylor published Principles of Scientific Management. His primary objective was to increase efficiency of employees by scientifically designing jobs. According to his views, management problems should be solved through experiments and use of scientific techniques rather than rules of thumb and triad and error approach.

(2) Taylor had conducted many experiments at workplace and as a result of those experiments, he advocated standardisation of tools and equipment. Standard here, means a level of quality or achievement, especially a level that is acceptable.

(3) According to him, standardised working environment and standardised methods of production tools and equipment help to reduce spoilage and wastage of materials. This in turn reduces the overall cost of production.

(4) Similarly use of standardised tools and equipment increases efficiency of employees and also helps to reduce fatigue among the workers. This improves the quality of work.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 5.
Differential piece wage rate plan is necessary.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(2) In differential piece wage rate plan, the. standard is determined for production by the management. The workers who produce more them the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.

(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

6. Attempt the Following

Question 1.
Explain in detail any five Principles of Management given by Henry Fayol’s?
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

(2) Principle of Authority and Responsibility:
Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.
Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management 2

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Question 2.
Describe different techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level :

  1. Route clerk : Explains the movement of work from one machine to other.
  2. Instruction clerk : Gives and records instructions to complete the work.
  3. Time and cost clerk : Decides the time to complete the work and work out the cost.
  4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

  1. Gang Boss : Gets the actual work done from employees.
  2. Speed Boss : Takes care that work is done in specified time.
  3. Repair Boss : Manages security and maintenance of mechanism.
  4. Inspector : Makes sure that work is completed as per specified standards.

Question 3.
Elaborate Principles of Scientific Management.
Answer:
The principles of scientific management are as follows:

  1. Science, Not Rule of Thumb
  2. Harmony, Not Discord
  3. Mental Revolution
  4. Co-operation, Not Individualism
  5. Division of Responsibility
  6. Development of employer and employees for greater efficiency and maximum prosperity

1. Science, Not Rule of Thumb : Rule of thumb method is based on personal judgements of the manager which should be substituted with the methods developed through scientific analysis of work. Taylor emphasised more on the use of scientific method for every small job. This principle related with selecting the best way of doing a work after scientific analysis. Under this method, standard required time and standard output are defined by the manager. This method is useful to save time and human energy, to get expected standard output and to increase organisational efficiency.

2. Harmony, Not Discord : This principle states that, in every organisation these should be proper co-ordination and harmonious relations between the management and employees. This will help in minimising conflicts between them and in achieving the goals of the organisation. The perfect understanding between employees and management is also helpful in creating healthy work environment. Organisation should also think about the maximum prosperity of the employees.

3. Mental Revolution : The concept of ‘mental revolution’ was introduced by Taylor. This principle highlights on the complete change in the attitude of the management and employees toward each other. Both should recognise their equal importance in the organisation. They should co-operate with each other to achieve goals or objectives of the organisation. This in turn will increase productivity and profits.

4. Co-operation, Not Individualism : This principle states that there should be mutual co-operation between employees and management. Co-operation, trust, team spirit, etc. are important to avoid internal competition and to create healthy working environment. Management should always appreciate and consider the suggestions given by the employees in decision-making process. The management should treat the employees as an integral part of the organisation in all respects. Employees should also resist themselves from going on strikes and making unacceptable or unnecessary demands from the management. Thus, they should see each other as two pillars of the organisation.

5. Division of Responsibility : This principle states that while dividing the work there should be’ corresponding division of responsibility between the managers and employees. Major planning should be done by the top and middle level management and employees should concentrate on its execution. The reporting of the jobs should be done by the subordinates as per the instructions given by their superiors. For the best performances, the management should always help, encourage and guide the employees.

6. Development of employer and employees for greater efficiency and maximum prosperity : Profitability and best performance of any organisation mostly depend on the skills, intelligence and capabilities of its employees. Arranging and providing training and development programmes for the employees at regular interval or whenever required are absolutely important. It helps to increase profitability of the organisation. Proper opportunity should be given to each ; employee to attain his highest efficiency and ; maximum prosperity.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

Question 4.
Explain nature (characteristics) of principles of management.
Answer:
The nature (characteristics) of principles of management is (are) explained as follows:
(1) Universal application : Management principles are universal in nature. They are applicable to all types of organisations irrespective of the type, size or nature, e.g. government, college, hospital, bank. etc. Their application may have to be modified, but they are suitable for all kinds of organisations, whether in private sector or public sector. Similarly, principles of management are applicable to all levels of management. For instance, the principle of division of labour is applicable to all types of organisations.

(2) General guidelines : Management principles give general guidelines to tackle the organisational situations wisely and to solve the problems systematically. They are not rigid. Application of management principles depend upon the situation, size and nature of organisation, e.g., when we say according to principle of remuneration, the employees must be paid fair remuneration. The term ‘fair’ may vary as per nature, size and financial ability of the organisation.

(3) Principles are formed by practice and experiments : The management principles are developed gradually with thorough research work, experiments and systematic observations. The results of such observations and experiments are developed after their practice in different organisations.

(4) Flexibility : Management principles, although fundamental are not rigid statements. They have to be applied differently under various conditions. It is possible to make suitable changes in their application according to the requirement of the organisation. Thus, Management principles are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc.

(5) Behavioural in nature : Management is a teamwork or a group activity. Management principles aim at influencing individual efforts and directing them to achieve various objectives of the organisation. They are directed towards regulating human behaviour so that people give their best to the organisation. Thus, principles of management are designed to influence human behaviour.

(6) Cause and effect relationship : Management principles indicate cause and effect relationship. Each principle has a definite effect on the efficiency or working of management. For example, payment of good remuneration and incentives increases output. Similarly, effective advertisement given by the organisation increases the sale of a product.

(7) All principles are of equal importance : All the principles of management have equal importance and they also carry equal weightage with reference to their applicability in the organisation. For example, it cannot be said that the principle of division of labour is more important than the principle of unity of command or vice versa. Management principles are not static in nature. They are not absolute like principles of pure sciences like Chemistry, Mathematics, etc. They are the principles of social science. They are to be modified and applied according to the size and nature of the organisation, keeping in mind the requirements.

7. Answer the following questions

Question 1.
What are the techniques of scientific management? Explain in detail.
Answer:
The techniques of scientific management given by F. W. Taylor are explained as follows:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.

(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level:

  1. Route clerk : Explains the movement of work from one machine to other.
  2. Instruction clerk : Gives and records instructions to complete the work.
  3. Time and cost clerk : Decides the time to complete the work and work out the cost.
  4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

  1. Gang Boss : Gets the actual work done from employees.
  2. Speed Boss : Takes care that work is done in specified time.
  3. Repair Boss : Manages security and maintenance of mechanism.
  4. Inspector : Makes sure that work is completed as per specified standards.

(6) Differential Piece – Rate Wage Plan : Taylor suggested that discrimination should be made between efficient and less efficient workers. In this technique, the standard is determined (fixed) for production. The workers who produce more than the standard output are to be paid remuneration at higher rates and those who produce less them the standard quantity are to be paid at lower rate of wages. This technique encourages the employees to attain higher standard performance to earn higher wages.

Question 2.
Explain 14 principles of Henry Fayol in detail.
Answer:
Henry Fayol, the Father of Modern Management developed the following 14 principles:
principles of management:

  1. Principle of Division of Work
  2. Principle of Authority and Responsibility
  3. Principle of Discipline
  4. Principle of Unity of Command
  5. Principle of Unity of Direction
  6. Principle of Subordination of Individual Interest to Organisational Interest
  7. Principle of Centralisation
  8. Principle of Remuneration
  9. Principle of Scalar Chain
  10. Principle of Order
  11. Principle of Equity
  12. Principle of Stability of Tenure
  13. Principle of Initiative
  14. Principle of Esprit de corpse (Team Work)

1. Principle of Division of Work: According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

2. Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task w12. Principle of Stability of Tenure:ithin a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

3. Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

4. Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.
Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management 3

5. Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

6. Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

7. Principle of Centralisation: Centralisation means concentration of authority or power in a few hands at the top level. As number of employees is less in a smaller organisation there is centralisation of authority. Decentralisation means even distribution of authority or power at every level of management. As number of employees and levels of management are more in a larger organisation, there must be decentralisation of some authorities for its smooth functioning. According to Fayol, there must be a proper balance between centralisation and decentralisation, depending upon the nature and size of an organisation.

8. Principle of Remuneration: According to this principle, the employees must be paid fair and appropriate remuneration to keep them satisfied financially and to retain them within the organisation for longer period of time. While fixing remuneration various factors such as the skill, knowledge, expertise, tenure, cost of living, market trend, profitability of organisation, etc. should be considered. It boosts the morale of employees and increases efficiency and productivity.

9. Principle of Scalar Chain: According to Fayol, in the organisation decisions, orders, instructions, messages, etc. must be passed through a chain, i.e. from the general manager to the respective functional manager, then to the supervisor, then to the foreman and then ultimately, to the workers. Similarly, suggestions, information, grievances, etc., must flow from the worker in the upward direction. This is called Scalar Chain. Sometimes, following a scalar chain becomes a lengthy process. In such cases, ‘Gang Plank’ is followed which permits speedy and direct communication between the employees working at the same level of authority. However, for this, permission of the proper authority is necessary.

10. Principle of Order: The principle of order is based on ‘a place for everything and everything in its place’. According to this principle, in every organisation there should be proper, systematic and orderly arrangement of men and materials. There should be a fixed place to keep every material and thing used in the organisation and a fixed place or a seat for every employee. The purpose of this principle is to reduce wastage of time and energy. This principle emphasises more I on the proper and optimum utilisation of physical and human resources.

11. Principle of Equity: This principle states that the management should be fair as well as friendly to the subordinate staff. There should be no discrimination of employees in regard to division of work, delegation of the authorities, deciding the monetary terms, etc. This principle also states that the remuneration should depend not on the department but at the level at which employees are working, It means the employees working on the same level but in separate departments must be paid equal wages. It will also help in avoiding conflicts in an organisation.

12. Principle of Stability of Tenure: According to this principle, at the time of recruitment of employees, the management should assure them about the stability of tenure (i.e. job security). This creates a sense of belonging among the employees. Job security increases efficiency of the employees and minimises employees turnover ratio.

13. Principle of Initiative: Initiative means to do the work in an innovative way in his or her personal capacity. According to this principle, managers should give freedom, opportunity or encourage the subordinates to take initiative while working on given job. Their suggestions and ideas should be invited before framing the plan. This can work as a morale booster for the employees and leads to timely achievement of organisational goals.

Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management

14. Principle of Esprit de corpse (Team Work): ‘Esprit de corpse’ means union is strength. This principle integrates and co-ordinates the individual and group efforts. It emphasizes the spirit of teamwork. The manager as a leader should create the feeling of team spirit and understanding among the various groups. When entire group of employees works as a team, their efforts get directed towards realising the goals of the organisation.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A stock exchange is where stock brokers and traders can buy and sell ______________
(a) Gold
(b) Securities
(c) Goods
Answer:
(b) Securities

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 2.
The ______________ is the first Stock Exchange to be recognized by the Indian Government under the Securities Contracts (Regulation) Act.
(a) BSE
(b) NSE
(c) OTCEI
Answer:
(a) BSE

Question 3.
______________ is a dealer in Stock Exchange who carries on trading of securities in his own name.
(a) Jobber
(b) Broker
(c) Bull
Answer:
(a) Jobber

Question 4.
A ______________ who expects fall in price of securities.
(a) bull
(b) bear
(c) Jobber
Answer:
(b) bear

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 5.
The practice of buying and selling within the same trading day before the close of the market on that day is called ______________
(а) insider trading
(b) day trading
(c) auction
Answer:
(b) day trading

1B. Match the pairs.

Question 1.

Group ‘A’ Group ‘B’
(a) SEBI (1) Expects the price of shares to rise in the future.
(b) Day Trading (2) Expects the price of shares to fall in the future.
(c) Bull (3) Buying and selling of securities during the same trading day.
(d) Bear (4) To protect the interest of investors in the securities market.
(e) BSE (5) Buying and selling of securities to particular investors.
(6) One of the oldest stock exchanges in India.
(7) To protect the interest of companies in the securities market.
(8) Buying and selling of securities within a week.
(9) Newest Stock Exchange in India.
(10) One who invests in new issues of securities.

Answer:

Group ‘A’ Group ‘B’
(a) SEBI (4) To protect the interest of investors in the securities market.
(b) Day Trading (3) Buying and selling of securities during the same trading day.
(c) Bull (1) Expects the price of shares to rise in the future.
(d) Bear (2) Expects the price of shares to fall in the future.
(e) BSE (6) One of the oldest stock exchanges in India.

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A specific place where the trading of securities is arranged in an organized method.
Answer:
Stock Exchange

Question 2.
The first Stock Exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.
Answer:
BSE

Question 3.
A dealer in the Stock Exchange who carries on the trading of securities in his own name.
Answer:
Jobber

Question 4.
A speculator who expects the price of shares rises in the future.
Answer:
Bull

1D. State whether the following statements are True or False.

Question 1.
A Stock Exchange is a reliable barometer to measure the economic condition of a country.
Answer:
True

Question 2.
Bombay Stock Exchange is the oldest Stock Exchange in India.
Answer:
True

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 3.
A broker is a dealer in the Stock Exchange who carries on the trading securities in his own name.
Answer:
False

Question 4.
A Bear is a speculator who expects the prices of shares to rise in the future.
Answer:
False

1E. Complete the sentences.

Question 1.
The oldest Stock Exchange in India is the ______________
Answer:
BSE

Question 2.
A speculator who expects fall in prices of share ______________
Answer:
Bear

Question 3.
A person who buys or sells shares on behalf of his clients is called as ______________
Answer:
broker

Question 4.
The largest and most modern stock exchange in India is the ______________
Answer:
National Stock Exchange

1F. Select the correct option from the bracket.

Question 1.

Group ‘A’ Group ‘B’
(a) Regulator of Capital Market (1) …………………..
(b) …………………… (2) Nifty
(c) Jobber (3) …………………..
(d) ………………….. (4) Oldest Stock Exchange in the world

(London Stock Exchange, Index of NSE, SEBI, Trades in securities in his own name)
Answer:

Group ‘A’ Group ‘B’
(a) Regulator of Capital Market (1) SEBI
(b) Index of NSE (2) Nifty
(c) Jobber (3) Trades securities in his own name
(d) London Stock Exchange (4) Oldest Stock Exchange in the world

1G. Answer in one sentence.

Question 1.
What is Stock Exchange?
Answer:
A Stock Exchange is a place or a platform where investors-individuals, institutions, or organizations meet to purchase or sell securities.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 2.
Who is a Broker?
Answer:
He is a licensed member of a stock exchange who transacts business on the behalf of his clients, being an agent between investors and jobbers.

Question 3.
Who is Jobber?
Answer:
A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his name.

Question 4.
Who is a Bull?
Answer:
Bull (Tejiwala) is an optimistic speculator who expects the price of a share to rise in the future and buys with the hope of selling at a high price to earn profit.

Question 5.
Who is Bear?
Answer:
A bear is a speculator who expects the prices of shares to fall in the future and sells his securities at the prevailing prices to avoid loss.

Question 6.
Who is Lame Duck?
Answer:
A lame-duck is a bear broker whose expectations have gone wrong and makes a loss in his dealings.

Question 7.
What is a trading ring?
Answer:
The trading of shares that takes place during trading hours on the floor of the stock exchange is called the Trade Ring.

Question 8.
What is Sensex?
Answer:
Sensex is the index of the BSE which represents the increase or decrease in prices of stocks of a selected group of companies.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 9.
What is Rally?
Answer:
If the Sensex or Nifty moves in an upward direction over a period of 14 to 20 trading sessions, it is called as a rally.

Question 10.
What is Crash?
Answer:
If the Sensex or Nifty moves in a downward direction, it is called a crash.

1H. Correct the underlined word/s and rewrite the following sentences.

Question 1.
One of the functions of SEBI is to protect the interest of issuers of securities in the securities market.
Answer:
One of the functions of SEBI is to protect the interest of investors in securities in the securities market.

Question 2.
A Broker cannot directly deal with investors.
Answer:
A Jobber cannot directly deal with investors.

Question 3.
A Bear expects prices of shares to rise in the future.
Answer:
A Bull expects prices of shares to rise in the future.

Question 4.
A Bull buys new issues of securities from the primary market.
Answer:
A stag buys new issues of securities from the primary market.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 5.
A stock market is an important constituent of the money market.
Answer:
A stock market is an important constituent of the capital market.

2. Explain the following terms/concepts.

Question 1.
Stock Exchange
Answer:
Stock Exchange is a specific place where various types of securities are purchased and sold. The term securities include equity shares, preference shares, debentures, government securities, and bonds, etc. including units of mutual funds. They act as intermediaries between investors and borrowers, to provide safety and stability to the investors, stock exchanges in India are regulated by SEBI.

Question 2.
Broker
Answer:
He is a member of the stock exchange and is licensed by the stock exchange to buy or sell shares on his client’s behalf. He is an agent between the investors and Jobber and earns his income in the form of commission or brokerage.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 3.
Jobber
Answer:
A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his own name. He buys securities as an owner and sells them at a higher price, and cannot deal with investors directly.

Question 4.
Bull
Answer:
A Bull is a speculator who is optimistic, expects the price of a share to rise in the future, and buys with the hope of selling them at higher prices to earn profit. A bull’s action leads to higher prices for securities as there is an excess purchase over sales.

Question 5.
Bear
Answer:
Bear (Mandiwala) is a pessimistic speculator who expects a fall in the price of a security, so he sells his securities at prevailing prices to avoid loss as he anticipates further fall in prices. His action leads to lowering prices as there is an excess of sales over the purchase.

Question 6.
Contract Note
Answer:
It is a note given by a broker to his client in a specific form, validating the transaction. Its copy comes immediately to both after the transaction within 24 hours.

3. Study the following case/situation and express your opinion.

1. Mr. Y is a practicing Company Secretary offering advisory services to companies, institutions, etc. on corporate laws including the Companies Act. He has received few queries from his clients, please assist Mr. Y in answering them.

Question (a).
BDI bank wants to offer DP services. Whom should they approach for registering as DP?
Answer:
If BDI bank wants to offer DP services, they should approach the concerned Depository for registering themselves.

Question (b).
KM Financial wants to offer Debenture Trustee services. Where should they apply for getting registered?
Answer:
If KM Financial wants to offer Debenture Trustee services then they should be registered with SEBI to act as Debenture Trustee.

Question (c).
TT Ltd. Co. wants to issue an IPO. Should it get itself registered with SEBI?
Answer:
The entire IPO process is regulated by SEBI, TT Ltd. Co should register with The U. S. Securities and Exchange Commission (SEC) which ensures that the company has made disclosures in detail thus TT Ltd will get the green signal to issue IPO.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

2. Mr. P has recently got his B.Sc. degree. He has enrolled in a course in the securities market. As a new student of this subject, he has few queries as follows:

Question (a).
Does a company need to be listed on a stock exchange’s ability to sell its securities through the stock exchange?
Answer:
Yes, a company needs to be listed on Stock Exchanges to sell its securities through the Stock Exchange.

Question (b).
What is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country?
Answer:
A Stock Exchange is the “Economic Barometer” and acts as an economic mirror that reflects the economic conditions of a country, eg. Boom, recession period.

Question (c).
Which term refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of security?
Answer:
The “Liquidity” function is the main function of the Stock Exchange as it provides a ready market for the sale and purchase of securities.

4. Distinguish between the following.

Question 1.
Jobber and Broker
Answer:

Points Jobber Broker
1. Meaning A Jobber is one who buys and sells securities in his own name. A broker is an agent who deals in buying and selling securities on behalf of his client.
2. Nature of Trading A jobber carries out trading activities only with the broker. A broker carries out trading activities with the jobber on behalf of his investors.
3. Restrictions on Dealings A jobber is prohibited to directly buy or sell securities in the stock exchange. Also, he cannot directly deal with the investors. A broker acts as a link between the jobber and the investors. He trades i.e. buys and sells securities on behalf of his investors.
4. Agent A jobber is a special mercantile agent. A broker is a general mercantile agent.
5. Form of Consideration A jobber gets consideration in the form of profit. The positive difference between sale and purchase of securities. A broker gets consideration in the form of commission or brokerage. The rate/amount of brokerage is fixed by stock exchanges.
6. Amount of Consideration The amount of Consideration payable to Jobber is determined by the competition of jobbers. The rate or amount of brokerage of a broker is fixed as per stock exchange provisions.

5. Answer in brief.

Question 1.
State the functions of SEBI.
Answer:
The various functions of SEBI are

  • To protect the interest of investors in the securities stock market.
  • To promote the development of securities markets.
  • To regulate the business in stock exchanges and any other securities market.
  • To register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchants bankers, underwriters, and such other intermediaries who may be associated with the securities market.
  • To register and regulate the working of the Depositories, Depository Participants, Custodians of securities, foreign institutional investors, credit rating agencies.
  • To register and regulate the working of venture capital funds and collective investment schemes including mutual funds.
    • To promote and regulate self-regulatory organizations.
    • To prohibit fraudulent and unfair trade practices relating to securities markets.
  • To promote investors’ education and training of intermediaries of the securities market.
  • To prohibit insider trading in securities.
  • To conduct research and carry out publications.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 2.
State any four features of the Stock Exchange.
OR
What are the features of the Stock Exchange?
Answer:
According to the Securities Contracts (Regulation) Act 1956, the term stock exchange is defined as, “An association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.”

Husband and Dockerary have defined stock exchange as “Stock exchanges are the privately organized market which is used to facilitate trading in securities.”

The important features of a stock exchange are as follows:
(i) Market for Securities:
The stock exchange is a place where all types of corporate securities, as well as securities of government and semi-government bodies, are traded.

(ii) Second Hand Securities:
Securities traded in the Stock exchange are those securities that are already issued by the companies. In other words, second-hand securities are bought and sold among investors in a stock exchange.

(iii) Listed Securities:
Only securities that are listed with the stock exchange can be traded on a stock exchange. Listing of securities helps in protecting the interest of investors as companies have to strictly comply with the rules laid down by the stock exchange.

(iv) Organised and Regulated Market:
All Listed Companies have to comply with the guidelines of SEBI. Companies will also have to function as per the rules and regulations laid down by the Stock exchange.

(v) Specific Location:
The stock exchange is a specific physical place where securities are traded. It is a marketplace where brokers and intermediaries meet to conduct dealings in securities. Today, all trading is done electronically on a stock exchange.

(vi) Trading only through Members:
Securities in a Stock exchange can be traded only by the members of the exchange on their own behalf or through authorized brokers.

6. Justify the following statements.

Question 1.
The Securities and Exchange Board of India SEBI is the regulator for the securities market in India.
Answer:

  • The Securities and Exchange Board of India was set up on 12th April 1988. The main purpose of setting up SEBI was to develop and regulate stock exchanges in India.
  • The objectives of SEBI are to protect the interest of the investors and regulate the securities market in India.
  • To bring professionalism in the working of intermediaries in the capital markets, i.e., brokers, mutual funds, stock exchanges, Demat- depositories, etc. is also a feature of SEBI.
  • The role of SEBI also includes creating a good financial climate, so that companies can raise long-term funds through the issue of securities – shares and debentures.
  • The main function of SEBI is to register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchant bankers, underwriters, and such other intermediaries who may be associated with securities market.
  • Thus, it is rightly said that SEBI is the regulator of the securities market in India.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

Question 2.
Stock exchanges work for the growth of the Indian economy.
Answer:

  • The stock exchange is a specific place where the trading of securities is arranged in an organized method.
  • The stock exchanges help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization in India.
  • It helps in raising medium-term capital as well as long-term capital for the development and expansion of the companies in the Indian economy.
  • New industries and commercial enterprises can easily acquire capital funds for economic growth.
  • It reflects a healthy financial and investment conducive atmosphere in the economy. It stimulates investment in the productive sector which accelerates the process of economic development of the nation.
  • Thus, it is rightly said that the stock exchanges work for the growth of the Indian economy.

7. Answer the following questions.

Question 1.
Explain the functions of the Stock Exchange.
Answer:
Definition Of Stock Exchange: According to the Securities Contracts (Regulation) Act of 1956, the term ‘stock exchange’ is defined as “An association, organization or body of individuals, whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.”

Husband and Dockerary have defined stock exchange as: “Stock exchanges are privately organized markets which are used to facilitate trading in securities.”

Stock Exchange performs various important functions discussed as follows:
(i) Mobilisation of Savings:
Stock markets are organized and regulated markets that protect the interests of the investors. It obtains surplus funds (savings) from individual households private and public sector units etc. and channelizes them in the proper direction. It thus provides a ready market for buying and selling securities.

(ii) Capital Formation:
Investors in securities are attracted due to good returns on investments and capital appreciation. The stock exchanges encourage investors to invest in the primary and secondary stock markets for investing in stock markets, investors need to save money. Savings lead to investment in shares and other securities. Such investments lead to capital formation.

(iii) Pricing of Securities:
The price of the securities are sold in the stock markets is based on demand and supply forces listed securities get prestige and reputation. When the prices of the shares go up constantly, their security value increases. The valuation of securities is useful to investors, the government, and creditors. The investors thus can gauge their investment worth and the creditors too can estimate the creditworthiness of a company.

(iv) Economic Barometer:
A stock exchange is a reliable barometer to measure the economic condition of a country. They encourage investors to invest and help companies to generate long-term funds thus promoting industrial development. The rise or fall in the share prices indicates the boom or recession cycle of the economy. The stock exchange is the pulse of the economy and the mirror that reflects the country’s economic status.

(v) Protecting Interest of Investors:
In the stock markets, only the listed securities are traded. The stock exchanges protect the interests of the investors through the strict enforcement of their rules and regulations. The securities Control (Regulation) Act 1956, provides rules for the functioning, licensing, and controlling speculations of stock exchanges. The SEBI also plays an important role in monitoring stock exchanges thus protect the interests of the investors by regulating intermediaries, monitoring speculation, and making the investors aware of their rights through IEPF, etc.

Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

(vi) Liquidity:
The stock exchange facilitates liquidity by providing a ready market for the sale and purchase of securities. It provides marketability along with liquidity to investments in corporate enterprises. Because of stock exchange investors can convert a long-term investment into short-term and medium-term as it provides a two-way outlet by transforming money into an investment and vice versa without much delay.

(vii) Better Allocation of Capital:
The stock exchange regulates and controls the flow of investment from unproductive to productive, uneconomic to economic, unprofitable to profitable enterprises. Thus, savings of the people are channelized into industry yielding good returns, and underutilization of capital is avoided.

(viii) Contributes to Economic Growth:
The stock exchange help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization. It helps in raising medium as well as long-term capital for the development and expansion of the companies. The resource of the economy flows from one company to another. This leads to capital formation as well as economic growth.

(ix) Providing Scope for Speculation:
Stock Exchanges’ like any other market provides a mechanism for evaluating the prices of securities through the basic law of demand and supply. Stock Exchange prices help to check the real worth of the securities in the market and thus permit healthy speculation of securities.

(x) Promotes the Habit of Savings and Investment: The stock market offers attractive opportunities for investment in various securities by obtaining funds from surplus units such as households, individuals, public sector units, central government, etc, and channelizing these funds for productive purposes.