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Balbharti Yuvakbharati English 11th Digest Chapter 1.2 On To The Summit: We Reach The Top Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 11 English Yuvakbharati Solutions Chapter 1.2 On To The Summit: We Reach The Top

11th English Digest Chapter 1.2 On To The Summit: We Reach The Top Textbook Questions and Answers

Question 1.
Complete the web of different activities related to climbing.

Answer:

Question 2.
There are certain prerequisites for Mountaineering. With reference to the following points develop a short dialogue between you and your friend about mountaineering.

Answer:

• Ashish: Hey Mayank ! when is your next plan for mountaineering?
• Mayank: Yes, I am planning for some days in September – October. Are you interested in joining?
• Ashish: Yes, I am. But I’m not very confident.
• Mayank: Then we will go to Mount Kilimanjaro to start with. But before that you must begin with small practices like walking, stair climbing and may be uphill hiking a bit.
• Ashish: What are the usual equipments that we need? You must be having most of them?
• Mayank: Honestly speaking, we need a lot of equipments and yes, I have some. But let’s visit a mountaineering equipment shop one day to get an idea of the latest ones, convenient as well as inexpensive. I have the basic ones like tent, headlight, map, compass, cap, jackets, gloves, sunscreen, lip balm, etc.
• Ashish: Oh ! You have quite a lot. Let’s visit the shop tomorrow.
• Mayank: But you need to talk to a fitness expert to get the guidance because a fit climber spends less energy. He will suggest what type of fitness regime we should follow as well as can recommend a good trainer.
• Ashish: Yes, I know. Mental and physical fitness are the main ingredients for the success of a mountaineer. Tomorrow, I’ll come to your place and we’ll plan everything. We have to start as soon as possible.
• Mayank: You are most welcome. See you tomorrow.

Question 3.
Discuss various hazards and risks that a mountaineer/ trekker has to face in an expedition.
Answer:
The hazards and risks for a mountaineer/trekker may be:

1. Bad visibility caused by bad weather (mist, rain, snow) or darkness is a major hazard.
2. Snow and ice can make a simple path a very dangerous one, especially if there is a steep drop off near by.
3. Rock fall is a common mishap during heavy snow and rain.
4. Lightning can cause a major problem at some places.
5. Flash floods due to storm might be risky.
6. A mountaineer cannot ignore rain and wind. Rain makes the path towards upward climbing slippery and a strong wind can cause loss of balance of a mountaineer, making climbing impossible.
7. Hypothermia, that is, lowering of the body’s natural temperature to 32° C due to wet clothing and heat loss because of strong wind, can be a big hindrance. If it is not treated immediately, severe hypothermia may occur leading to fatalities.
8. Heat exhaustion and dehydration are very common problems because of difficult physical work.
9. Timely care should be taken by pouring water on the victim to avoid heatstroke. The patient should be urgently given cold water mixed with a small amount of salt and sugar to refresh him.

(A1)

Question 1.
Summarize, in your own words, the highly risky and dangerous journey of Tenzing and Hillary from the base to the top of Mount Everest.
Answer:
Tenzing and Hillary were well-informed about the flat side of the summit, its steep rise, rocky and snowy sides too. It was decided that Tenzing would lead the mission followed by Hillary in the beginning and this position would be alternated. They would be tied together by a rope. They started early from camp nine. Tenzing carried the flags of Britain, the United Nations, Nepal and India to be put on the top of Mount Everest.

They steadily climbed for an hour and faced the difficulties of steep rocks on the west side. The last fifty feet to the top was made easier by their togetherness and they officially announced that without making any attempts to take the credit for conquering Mt. Everest first. Four flags were put by Tenzing wearing the red scarf gifted by his friend. Both of them stayed safely at the top for fifteen minutes.

(A2)

Question (i)
Complete the web highlighting the feelings/emotions of Tenzing after reaching the summit.

Answer:

Question (ii)
Explain the qualities of Tenzing Norgay. Pick lines that show his unique qualities.
Answer:

Qualities	Lines
1. Patriotic	I told Colonel Hunt that I was carrying the Indian flag with me and I would like it to be on the top with other flags.
2. Unselfish	Our main thought was that both of us reached the top.
3. Non-controversial	We will not take part in any controversy.
4. ratitude	My first thought on reaching the top was a sense of gratitude to God.

Question (iii)
Write down the significance of the following in the context of‘On to the Summit*.
(a) Red Scarf
(b) Husiar
(c) Kerosene Flavoured Tea
(d) Ice Axe
(e) Anchor
Answer:
(a) Red Scarf: The red scarf was given to Tenzing by his good friend Lambert who was the leader of the Swiss Expedition of 1952. This scarf reminded Tenzing of their successful mission, a year ago and rejuvenated him to feel fit, energetic, and excited for the completion of another mission.

(b) Husiar: This code-mixing makes Tenzing’s knowledge about mountaineering clearer to the readers. Both Tenzing and Hillary did not take it easy while climbing down. After successful completion, they were not over-confident and were fully aware of the technique and caution needed for the downward journey.

(c) Kerosene Flavored Tea: This tea was brought by C.W.F. Noyce for Tenzing and Hillary from camp eight and he had to do a lot of climbing up and down for that. Some amount of Kerosene got mixed with the tea as it was made in a hurry. Tenzing did not make Mr. Noyce feel guilty as both the mountaineers were grateful for getting hot tea at a time when they needed it the most. The gentleman had taken so much trouble to serve them tea and they were not bothered about its flavour.

(d) Ice Axe: Tenzing used his ice-axe to tie one end of the four flags of Britain, the United Nations and Nepal and the other end was held up by him. Hillary took his pictures holding all the flags up. But he needed his ice-axe for climbing down. So he had to remove his ice-axe and buried one end of the flags in the snow on the slope down below and other end in the ice on the top. Obviously, they fell down but Tenzing had no choice but to remove his ice-axe.

(e) Anchor: An anchor is a person who is strong and reliable. He makes people feel safe and confident. In mountaineering, the man who follows while climbing has a difficult job both in climbing up and climbing down. Tenzing and Hillary decided to alternate this job of anchoring so that the person leading feel safer. This proved that their expedition was a team-work where both shared the responsibility of being the anchor in order to have a successful mission.

(A3)

Question (i)
Add suitable suffixes (- tion, ly, – ment, – ous) and prefixes (un, il, im) to the words given below. Answer:

Word	Prefix	Suffix
absolute	–	absolutely
fulfill	unfulfill	fulfillment
determine	–	determination
danger	–	dangerous
tight	untight	tightly
clear	unclear	clearly
sure	unsure	surely
legal	illegal	legally
legitimate	illegitimate	legitimately
possible	impossible	possibly

(ii) Fill appropriate letters in the blank space to get a past participle form of a word. Use the word as adjective in your own sentence.

Question (a)
s _ g n _ d
Answer:
signed – The advocate took all the signed documents to the court.

Question (b)
p _ _ z _ d
Answer:
prized – My grandmother’s diary is a prized possession for me.

Question (c)
f _ _t_ene_
Answer:
flattened – On the highway we were in great trouble due to the flattened tyre.

Question (d)
b _ i _ e _
Answer:
boiled – My sister loves to eat boiled egg.

(iii) Spot the error in the following sentences.

Question (i)
I was not afraid for die that day.
Answer:
I was not afraid to die that day.

Question (ii)
Tenzing and Hillary made on pact at the office of PM of Nepal.
Answer:
Tenzing and Hillary made a pact in the office of PM of Nepal.

Question (iii)
I has to bring my ice axe down with me.
Answer:
I had to bring my ice axe down with me.

Question (iv)
Tenzing have spent a night with Camp Eight.
Answer:
Tenzing had spent a night at Camp Eight.

Question (v)
Pact was signed from Tenzing and Hillary.
Answer:
A pact was signed between Tenzing and Hillary.

Question (vi)
I and Hillary were in no mood of talking.
Answer:
Hillarv and I were in no mood for any talking.

(A4)

Question 1.
In passive voice the doer is the objeet and the job accomplished is the subject. The verb of passive voice is formed by using the correct form of verb ‘to be’ or verb ‘to have’ + past participle of the main verb. Construct the passive voice of the following sentences accordingly.
Answer:

Active Voice	Passive Voice
(i) We have done it.	(i) It has been done by us.
(ii) We made a pact.	(ii) A pact was made by us.
(iii) I offered silent prayer in my heart.	(iii) Silent prayer in my heart was offered by me.
(iv) Colonel Hunt gave me three flags.	(iv) Three flags were given to me by Colonel Hunt.
(v) I was carrying the Indian flag.	(v) The Indian flag was being carried by me.
(vi) I took photographs of Tenzing holding aloft the flags.	(vi) Photographs of Tenzing holding aloft the flags were taken by me.
(vii) I remembered him.	(vii) He was remembered by me.
(viii) We spent the night at Camp Eight.	(viii) The night was spent at Camp Eight by us.

(A5)

Question (i)
Write in short about any adventure sport that you like and the risk involved in it.
Answer:
I like Bunjee-jumping a lot and have taken part in it at Lonavala. Bungee-jumping, I am sure, many of you, know that it is an activity where the participant jumps from a tall structure but he is obviously connected to a large elastic cord. It is thrilling and one needs a lot of courage to take part in it since a number of risks are involved in it.

Most common injuries are fracture, strains, sprains, bruising, chronic stress features. But the most dangerous risk is acute head injuries. Lots of precautions are being taken by the organizers but one needs to think whether it is worth taking such risks just for the sake of adventure.

Question (ii)
Give your opinion: whether we should or should not participate in adventure sports because –
Answer:
Every coin has two sides, so do adventure sports. Adventure sports do have some benefits.
They are as follows:
1. Boost self-confidence.
2. Stay mentally sharp.
3. Help to cope with challenges in life.
4. Spark the desire to explore.

However, the negative aspects of adventure sports can be quite disturbing.
1. They can cause serious health issues.
2. They are obviously very dangerous.
3. Regular safety precautions may not be stringently followed to prevent life threatening injuries.
It depends on the individual to assess his/her own character traits as well as the pros and cons of the sport, to come to the final decision to take part in any adventure sports with proper training.

Question (iii)
Tenzing and Hillary created history by reaching the summit of Mt. Everest. There are many mountains in Maharashtra where one can fancy his or her chances of climbing them. Imagine that you have climbed a mountain and are immensely thrilled and excited. Write a letter to your friend about it.
Answer:
XYZ,
ABC Apartment,
Flat No. 4, 29th Road,
Shivaji Nagar, Pune
11th July, 2019

Dear Manav,

How are you? I am writing to you after a long time. These days I feel so lazy to write letters, thanks to modern technologies. But today, I am very excited. I went on my first trek last week and I wanted to share with you the details of my trekking experience.

You obviously know, Maharashtra lies amidst the Western Ghats and it welcomes the rains to the beautiful ranges of the Sahayadris. Last week my close friends and I decided to go to Lonavala and from there to Lohagad Fort for trekking, which is for the beginners. We were told that Lohagad Fort trek was not very difficult. We could reach up to the fort to witness some of the most spectacular views in the Lonavala trekking region.

It took us about three to four hours to reach the summit. I must admit that the initial fear was there. But after reaching the peak and seeing the magnificent view all around, we felt that it was worth going there.

Something I must tell you here before I forget. My elder brother Deepak has joined as an executive in a good company and he was my money-bag this time. I felt so, fortunate. Coming back to my expedition, the descent was easier as we were all in a jovial mood for completing the mission (to me, it was a mission only, my first trek) successfully. We have taken beautiful photographs of the surroundings which is breathtakingly beautiful. The waterfalls, lakes, streams, rock-climbing patches, hillocks all around are real wonders of Mother Earth.

When are you planning to come to Pune? I’m eagerly waiting for showing you the photographs. How are Uncle and Aunty. Give them my regards.

Yours lovingly,
XYZ

Question (iv)
You are the college representative and your Principal has assigned you the task of writing a letter to the Divisional Officer, Satpuda Mountain Ranges, Nagpur, seeking permission for the mountaineering expedition to be organized by your college.
Answer:
Harshad Kale
College Representative
XYZ College of Arts and Commerce,
Ghatkopar (East),
Mumbai – 400 077
11th July, 2019

Divisional Officer,
Satpuda Mountain Range,
Nagpur

Subject: Permission for the mountaineering expedition to be organized by our college.

Respected Sir/Madam,

I am Harshad Kale, the College Representative of XYZ College of Arts and Commerce. On behalf of my Principal Dr. Sunil Patil I would request you to grant me the permission for organizing the mountaineering expedition.

I would like to inform you that NCC Unit of our college has planned for the mountaineering expedition from 25th to 30th July. The students who are selected for taking part are all expert trekkers and they will be accompanied by experienced mountaineers as well as our Professors who go regularly for trekking. Our Principal has instructed to arrange for all precautionary measures and is personally taking care of all arrangements.

We shall be obliged if you kindly permit us to carry on the expedition. Awaiting your positive response.

Thanking you,
Yours Sincerely Harshad Kale

Enclosed:
(a) Copy of the expedition programme.
(b) Letter of permission from Principal Dr. Sunil Patil

Question (v)
Convert the above letter into an e-mail format.
Answer:
To: abc@gmail.com
Cc: qrs@gmail.com
Bcc: (non-visible email ids)
Subject: Permission for organising mountaineering expedition

Respected Sir/Madam,

This is Harshad Kale, the representative of XYZ college of Arts and Commerce. On behalf of my teachers and Principal, I request you to grant me the permission for organising a mountaineering expedition planned by our college NCC unit from 25th to 30th July, 2019.

We shall be obliged if you permit us to organize the above mentioned expedition. I have attached the expedition programme for your kind perusal.

Awaiting your positive reply.
Thanks and regards,
Harshad Kale
XYZ College of Arts and Commerce,
Expedition programme [×]
Permission letter (Principal) [×]

Comparisons:

1. Look at the sentences given below. Find out which one is correct. If the sentence is wrong give reasons.

Question (i)
Sunita is the quieter of four sisters.
Answer:
The above sentence is wrong.
Reason: When more than two nouns are compared superlative adjective should be used, i.e., quitest

Question (ii)
Sunita is the quietest of the four sisters.
(iii) Anil’s computer is more new than mine.
Answer:
The above sentence is wrong.
Reason: ‘More new’ is the wrong form of comparative degree of the adjective ‘new’.

Question (iv)
Anil’s computer is newer than mine.
(v) I have the wonderfullest mother in the world
Answer:
The above sentence is wrong.
Reason: ‘wonderfullest’ is the wrong form of superlative degree of the adjective ‘wonderful’.

Question (vi)
I have the most wonderful mother in the world.
(vii) Aditi is more carefuller than Mary.
Answer:
The above sentence is wrong.
Reason: ‘More carefuller’ is the wrong form of comparative degree of ‘careful’.
(viii) Aditi is more careful than Mary.

Look at the following sentences and observe the changes in the three sentences. Note your responses.

Question (a)
Atul is not as bright as Milind in studies.
Answer:
Positive

Question (b)
The dining room is brighter than the kitchen.
Answer:
Comparitive

Question (c)
Anne is the brightest girl in class.
Answer:
Superlative

(A7)

Project:

Go to your college library or surf the internet for names of various mountaineers who have successfully climbed Mt. Everest. Write in your notebook about their struggles, the interesting anecdotes they have shared, their failures and the message that we get from their lives. Submit them to your teacher.

Yuvakbharati English 11th Digest Chapter 1.2 On To The Summit Additional Important Questions and Answers

Question 1.
Give reasons for the ‘rope’ being called a symbol.
Answer:
The rope that tied the two mountaineers, Hillary and Tenzing, together,was referred to as a ‘symbol’ by Tenzing because he always felt that climbing was a teamwork for them. Success, risks, hard work and failure be shared by both as two of them were tied together to fulfill an ambition which was full of hazards. They were aware of the risks involved in their mission and in all those situations, the rope would be between them as a symbol of their togetherness.

Question 2.
Discuss in pairs about any controversy in which you haive got embroiled. Also speak of your experience to the class.
Answer:
Controversies are parts and parcels of our lives and most of the times they are man-made. It happened with me also when I made an innocent comment about one of my classmates. There was a lot of hue and cry about these comments as it was reported by adding fuel to it. But I decided to talk to my classmate and the matter was resolved amicably.

Question 3.
List the ways in which Tenzing Norgay celebrates on reaching the top.
Answer:
1. Tenzing and Hillary embraced each other saying “We have done it.”
2. Tenzing showed his gratitude to God by praying silently for the fulfillment of his desire of climbing the Everest after having failed six times. His offerings were biscuits, candy and a little blue pencil which his daughter Nima had requested him to put on the top of the mountain.
3. Hillary took the photograph of Tenzing holding aloft the flags of Great Britain, Nepal, the United Nations and India.

Comprehension:

Read the extract and complete the activities given below.

Global Understanding:

Question 1.
Complete the web on climbing the summit by Tenzing and Hillary.
Answer:

Question 2.
Rewrite the given sentences in their order of occurrence.
1. I ate some biscuits and offered some to Hillary.
2. I wore the red scarf given to me by my friend, all the way up the mountain from Darjeeling.
3. I offered a silent prayer to God in my heart.
4. At the summit I felt absolutely fit.
5. My daughter Nima gave me a blue pencil, one of her prized possessions, to put at the summit as her offering to God.
Answer:
3. I offered a silent prayer to God in my heart.
5. My daughter Nima gave me a blue pencil, one of her prized possessions, to put at the summit as her offering to God.
1. I ate some biscuits and offered some to Hillary.
2. I wore the red scarf given to me by my friend, ah the way up the mountain from Darjeeling.
4. At the summit I felt absolutely fit.

Complex Factual:

Question 1.
Why didn’t it matter for Tenzing to be the first one to reach the summit?
Answer:
Both Tenzing and Hillary were not thinking of being the first to reach the summit since climbing took all their attention. Their main thought was that one could not do that job alone and only a difference of one thousand feet could decide the position which could be found by the person coming behind.

Question 2.
Why didn’t Tenzing feel tired after reaching the summit?
Answer:
After reaching the summit Tenzing felt exhilarated. He forget about the tiredness. His first thought was a sense of gratitude to god who had blessed him with the fulfillment of his desire after having failed six time.

Inference / Interpretation / Analysis

Question 1.
Explain.
“The rope was a symbol”
Answer:
The rope was a symbol of togetherness of Hillary and Tenzing as it was used to tie them, one following the other. It was also the proof that climbing the summit of Mt. Everest needed a teamwork and the two members of their team respected and considered each other important.

Question 2.
Explain.
“He gave me a big smile, showing that he understood.”
Answer:
Hillary smiled because he understood the emotion of Tenzing. The blue pencil was given to Tenzing by his youngest daughter, Nima, and it was one of her prized possessions. She parted with it with the expectation that her father would conquer the summit and the offering of the blue pencil was her way of showing gratefulness to God. Her father would fulfill her wish.

Personal Response

Question 1.
Pick up one sentence to show one quality of Tenzing that you have appreciated the most in his story. Explain your answer.
Answer:
The sentence “What does it matter whether I reached the top first or Hillary?” shows the unselfish character of Tenzing. He had the opportunity to claim that he reached the summit first as he was walking first and Hillary was behind him. But he did not take the credit as he knew it was a team work. Accomplishing the job was more important than taking credit for it.

Question 2.
Mention some of the benefits of trekking trips organized by colleges for the students.
Answer:

1. The students get more exposure and experience.
2. They get close to nature.
3. They learn to handle adverse situations.

Language Study

Question (i)
You have many more important worries. (Change the degree)
Answer:
This worry is not as important as many other worries you have.

Question (ii)
Most of the time the rope was loose. (Make negative)
Answer:
Most of the time the rope was not tight.

Question (iii)
My mind was absolutely clear. (Use past perfect tense and rewrite)
Answer:
My mind had been absolutely clear.

Question (iv)
My first thought on reaching the top was a sense of gratitude to God. (Use ‘When’ and rewrite)
Answer:
When I reached the top, my first thought was a sense of gratitude to God.

Vocabulary:

Question 1.
Add suffixes to convert the following verbs into nouns.

1. confirm
2. know
3. near
4. move

Answer:

1. confirmation
2. knowledge
3. nearness
4. movement

Question 2.
Give one word for:
1. satisfy one’s thirst
2. very happy and excited
Answer:
1. quench
2. exhilaration

Glossary:

1. anchor – support / production
2. steep – high / sharp
3. expedition – mission
4. incline – slope
5. taut – tightly
6. bulky – large
7. descent – going down / coming down
8. spared – saved
9. flushed – glowed
10. alternated – changing places
11. sloping – slanting up or down
12. summit – the highest point of a hill or mountain
13. controversy – prolonged public disagreement or heated discussion
14. pact – a formal agreement between individuals or parties
15. ridge – a long narrow piece of raised land
16. embrace – hug, hold (someone) closely in one’s arms
17. accord – agreement, be harmonious or consistent with
18. quench – satisfy one’s thirst
19. exhilarated – very happy and excited
20. gale – strong wind
21. apparently – as far as one knows or one can see.

Balbharti Yuvakbharati English 11th Digest Chapter 1.1 Being Neighborly Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 11 English Yuvakbharati Solutions Chapter 1.1 Being Neighborly

11th English Digest Chapter 1.1 Being Neighborly Textbook Questions and Answers

Read the following statements and mark those that apply to you.

Question 1.
(i) I make friends easily.
(ii) I wish to be friends with someone but my friendship is rejected.
(iii) Someone has extended a hand of friendship towards me and I have not accepted it.
(iv) I have a large group of friends but no best buddy.
(v) I have a small group of close friends and have no wish to interact with anyone else.
(vi) I have cordial relationships with all but I cannot connect with anyone.
Answer:
(i) I make friends easily.
(iv) I have a large group of friends but no best buddy.

Complete the following web diagram.

Question (i)

Answer:

Question (ii)
If you see someone lonely or sad you will –
(a) try to cheer the person by talking something pleasant.
(b) try to distract the person’s attention by doing some activity together.
(c) discuss the problem if the person wants to, give a patient hearing and also try to suggest some possible solutions.

(A1)

Question (i)
Jo’s decision to make friends with the lonely boy next door proves to be a good one. Elaborate. You may begin with ‘Jo was a bold, friendly and warm person…”
Answer:
Jo was bold, friendly and warm person who observed the boy next door closely and came to the conclusion that he was hungry for friends and fun. She was sad for the boy and felt it her neighborly duty to help the boy come out of his loneliness in her own way. She took a quick decision to catch the boys attention by throwing snowballs towards the window from where he was peeping.

She took the initiative to start an immediate conversation which was well-received by the boy. He invited her home and Jo readily accepted. Jo’s friendliness made the boy feel comfortable and he enjoyed Jo’s way of talking, her humour and most importantly, her companionship. He showed her his library and together they had a gala time which he never had before.

Question (ii)
Complete the following statements. (Answers are given directly in bold)
Answer:

1. To Jo the fine house seemed like an enchanted house.
2. Jo swept a path around the garden for Beth to walk in when the sun came out.
3. Jo entered the old stone house carrying her broom.
4. In order to tidy the room, Jo had whisked things into place.

Question (iii)
Bring out the contrast between the two houses with the help of the following points:
Answer:

House of March	House of Laurence
1. Old, brown house 2. Rather bare and shabby 3. Children played all around 4. A lively household having four girls and a loving mother	(a) Stately stone mansion (b) Stately stone mansion (c) Well kept grounds (d) All quiet, curtain down at the lower windows No motherly face smiled at the windows

(A2)

Question 1.
The traits of the characters you meet in the extract are jumbled. Sort them out and write them in the appropriate columns.
(Shy, bold, gruff, friendly, withdrawn, perceptive, empathetic, playful, lonely, happy, gentlemanly, frank, mature, dull, sharp, adventurous.)

Jo	Laurie	Grandpa
adventurous	dull	gruff
bold	lonely	withdrawn
playful	gentlemanly	frank
happy	shy	sharp
friendly	mature
empathetic	sharp
perceptive	friendly

(A3)

Question (i)
Write down in your own words the way Laurie confirmed the names of the March sisters.
Answer:
The March family sometimes forgot to put the curtain down at the window and that helped Laurie, their neighbor, to observe minutely inside the March household. The sisters often call one another and lonely Laurie enjoys watching them having good time. That’s how he came to know that Beth is the one who is generally a home-bird but whenever she goes out, she carries a basket with her. Amy’s curly hair and Meg’s pretty face has also caught his attention.

Question (ii)
Give a brief account of the interaction between Grandpa and Jo.
Answer:
Grandpa and Jo had an interesting interaction as Jo had come out of her initial fear after having a closer look at him. Grandpa had overheard Jo’s comments on his portrait and Jo did not even try to deny any one of them. This pleased Grandpa immensely and he remembered Jo’s grandfather who was similarly brave and honest.

Jo frankly told Grandpa about the problem Laurie was facing because of his loneliness. She showed her concern and expressed the March sisters’ eagerness to help Laurie. They started talking informally about Hemmel family, Jo’s mother and he also invited Jo to join for tea which Jo courteously accepted. This interaction made Jo very satisfied as she could find out how good their neighbor was.

(A4)

Question (i)
Find proverbs, maxims and idioms related to ‘friendship’.
Answer:

1. Birds of a feather flock together.
2. A friend in need is a friend in deed.
3. Friendship is love with understanding.
4. To get on like a house on fire (idiom).
5. Like two peas in a pod (idiom).

Question (ii)
The Extract deals with the atmosphere of two homes. Collect the words associated with –

1. Home
2. Library
3. Garden

Answer:

1. Home: old, brown, bare, shabby, stately stone mansion, comfort, luxury, big coach house, lovely things, rich curtains, lifeless, lawn, enchanted, hidden glories, full of splendour.
2. Library: books, pictures, statues, little cabinets, coins, sleepy hollow chairs, queer tables, quaint tiles, open fireplace, bronzes.
3. Garden: large, low hedge, vines, flowers.

(A5)

Change into indirect speech.

Question (a)
“Do you like your school?” asked the boy. “Don’t go to school I’m a businessman – girl, I mean”, answered Jo.
Answer:
The boy wanted to know whether she (Jo) liked school to which Jo answered quite emphatically that she did not go to school. She further added that she was a businessman and jovially corrected the gender.

Question (b)
Jo flourished her broom as she called out… “How do you do? Are you sick?
Laurie opened the window and croaked out as hoarsely as a raven…
“Better, thank you. I’ve had a bad cold, and been shut up a week.”
Answer:
Flourishing her broom Jo asked Laufie about his well-being and enquired whether he was sick. Laurie opened the window and croaked out as hoarsely as a raven thanking Jo for her concern and informed her that he was feeling better. He further added that he had been shut up a week as he had a bad cold.

Question (c)
“The pretty one is Meg, and the curly-haired one is Amy, I believe?” – Laurie.
“How did you find that out?” – Jo.
Answer:
Laurie wanted to confirm from Jo whether the pretty one was Meg and the curly-haired was Amy. With surprise in her voice Jo enquired how he(Laurie) had found that out.

Question (d)
“I’m not afraid of anything”, returned Jo with a toss of the head.
“I don’t believe you are !” exclaimed the boy.
Answer:
With a toss of the head Jo emphatically told that she was not afraid of anything. The boy was not surprised at her claim and agreed with her completely.

(A6)

Question (i)
Narrate in 100 words an incident, that illustrates the way a friend of yours ‘made you feel happy and accepted’, at some point in your life.
Answer:
That was my first day at school. I was just five years old. When my parents left me in school and I entered the classroom. I felt so lonely that I was about to cry. I was looking around, desperately trying to find out a known or a friendly face to talk to. Suddenly, there was a pat on my back and I saw a girl standing behind me.

She held my hand and took me to the bench where she was sitting. We became friends instantly. Till today we are the best friends. I shall be very grateful to her for her acceptance of me on the very first day at school.

Question (ii)
Give reasons, for us being reluctant to make friends with some strangers, but being comfortable with some, even after meeting them for the first time.
Answer:
Strangers are always mysteries for us. But some people have the inherent simplicity which instantly attract us towards them and we long to be friends with them. We feel comfortable in their company. But there is another category of people who have the attention-catching technique of blowing their own trumpets. It is difficult to carry on normal conversation with them as they are obsessed with their ownselves.

Question (iii)
Are friends different from neighbors? Are you friends with your neighbors? Give examples and write.
Answer:
It is not necessary to have one’s friend as one’s neighbor always. If it happens that way, then one is lucky. Friendship does not depend on the residence of a person and it can be different from the friendly relation one can have with one’s neighbor.

I am very fortunate to have a very friendly family as our neighbor. We are always there for one another at the hour of need as well as sharing happiness. For example, the owner of the apartment is a doctor and he is helping us with useful advices whenever anyone in our family falls sick. My mother is a teacher and she guides the children of our neighbor with their difficulties in studies. A good neighbor is always an asset.

Question (iv)
Make a note about how people amused themselves in earlier times without TV, internet or social media for entertainment.
Answer:
In earlier times when TV, internet and social media did not make people slaves of these sorts of entertainments, people used to socialize a lot. They used to meet their friends and relatives, talk to them over a telephone, make enquirers about each other’s well-beings and exchange ideas. The human connections were more and people used to share their joys and sorrows. Gone are those days of personal relationships which have been taken over by the modern technology enslaving people.

(A7)

Question 1.
Use your imagination and extend the story in about 100 to 130 words.
Answer:
Jo had a nice time with Laurie and his grandpa having tea and snacks which she enjoyed thoroughly. Both of them were very interesting characters, nice to talk to and Jo had an entertaining evening. She was excited to be acquainted with a friendly neighbor which she had always longed for. She was happy to go back home with so much of positive feelings about their neighbor who had been a mystery for her and her family.

Her entire family always felt sad for the lonely boy Laurie but nobody could approach him for helping him. She was extremely delighted to know Laurie and his grandpa who were courteous enough to invite her for tea. She was in a hurry to share her excitement with her family. “Ah! what a pleasant day it was !” she whispered.

(A8) Project:

If you are social, like to meet new people, can emphatise and connect with peole easily, make a list of careers available to you and write in brief about them. For example: Human Resource Development or HRD.

Yuvakbharati English 11th Digest Chapter 1.1 Being Neighborly Additional Important Questions and Answers

Question 1.
Jo doesn’t want to be a pussy-cat because –
Answer:
Pussy cat symbolises lethargy. Jo was always on the look out for excitements and thrills. She was an adventurous girl who does not want to idle away her time sleeping like a pussy-cat and enjoy the warmth of the fireplace on a cold winter afternoon. She would rather find out something interesting to spend her time.

Question 2.
Guess the meaning of‘hidden glories’ in the context of the mansion mentioned in the story.
Answer:
The expression has been used in the context of the mansion where Laurie lives. It has glimpses of lovely things and a look of an enchanted house, which probably hides lots of attractions inside.

Question 3.
Explain: “That boy is suffering for society and fun”.
Answer:
The young boy Laurie is lonely and longs for having fun with friends of his age-group, play with them and enjoy life the way a boy of his age does. The absence of company of friends and fun has made him dull which is affecting him like a disease.

Question 4.
Discuss ‘as dull as tombs’ and name the figure of speech.
Answer:
The figure of speech is ‘Simile’ as the dullness of the house is directly compared to the serious and dull atmosphere in a tomb. The boy meant by the expression that his house is very boring.

Question 5.
Complete the sentence: ‘a little gentleman’ means.
Answer:
The young boy is referred to as ‘a little gentleman’ here as he talks and behaves decently with others. He has a good upbringing which has taught him to welcome guests at his place by presenting himself as well as his room tidily.

Question 6.
Make a list of gifts you give/receive to/from your friends.
The gifts I usually give/receive to/from my friends are:

1. books
2. cosmetics
3. various food items
4. accessories

Question 7.
Complete the sentence in your own words : Hunger is related to food. Laurie is ‘hungry’ for –
Answer:
Laurie is a lonely young boy who is hungry for spending happy times both at home and with friends. He belongs to a rich family where he gets everything but suitable companions to have fun with. That is why he longs for food for his mind, that is, happy times with friends.

Question 8.
Laurie has
(i) _________
(ii) _________
(iii) _________
He doesn’t have
(i) __________
(ii) _________
(iii) _________
Answer:
Laurie
(i) a rich house filled with loneliness,
(ii) a kind but indifferent grandpa,
(iii) half a dozen servants and a tutor Mr. Brooke,

He doesn’t have
(i) his mother.
(ii) friends and companions,
(iii) any one to go out with.

Question 9.
Describe the effect of Laurie’s words on Jo.
Answer:
Jo started talking with Laurie frankly. Her words had lots of positive effects on Laurie as he was longing for exactly those things which Jo mentioned. For their first meeting, Jo was a bit blunt but Laurie liked her bluntness since he could recognize Jo’s sincerity and kindness hidden in those words. He started feeling comfortable in Jo’s company and enjoyed every bit of humorous description of Aunt March.

Question 10.
Find out what ‘good breeding’ means.
Answer:
‘Good breeding’ means that a person is well-behaved, polite, cultured and refined, which are the results of his upbringing, training as well as family atmosphere.

Question 11.
List some of the things that you need in order to be happy.
Answer:
Things that I need in order to be happy are –
(i) a supportive family and dependable friends.
(ii) hobbies to occupy myself during my free time.
(iii) a healthy life for me as well as my family members.
(iv) sufficient money earned from a satisfying career.

Question 12.
“A fellow can’t live on books” – Explain.
Answer:
A fellow, of course, cannot live on books though books are his emotional suppdrt and in many ways, his best friend. But he also needs someone, a companion, with whom he can share his feelings, fulfill his curiosities, have fun, etc. Human contact is a necessity in a person’s life since a few words, an exchange of ideas collected from the books can work wonders giving immense pleasure.

Question 13.
List the things that Jo notices in the portrait.
Answer:

1. The gentleman in the portrait is not as handsome as her own grandfather.
2. Though the gentleman is having a grim face, his kind eyes assure that there is nothing to be afraid of him.
3. From his looks, it appears that he has tremendous will-power.

Question 14.
Find out the reason for Jo’s dismay.
Answer:
Jo loudly expressed her opinions on Laurie’s grandfather, while looking at his portrait. When she came to know that the gentleman had heard all her comments, she felt embarrassed. She felt uncomfortable to face the old gentleman and felt like running away.

Question 15.
Complete the sentence.
Answer:
In spite of Jo’s apprehensions, Grandpa is –

1. having kinder eyes than what the painting shows.
2. having a shy twinkle in his eyes which could lessen Jo’s fear.
3. quite a friendly gentleman.

Question 16.
Discuss what Jo meant by –
(i) “only trying to be neighborly, Sir.”
(ii) seems a little lonely.
(iii) splendid Christmas present.
Answer:
(i) By saying, only trying to be neighborly, Sir”. Jo means she just wanted to be friendly with Laurie as he was her neighbor. She strongly felt that neighbors should know each other well.
(ii) Jo had observed Laurie now and again and she felt Laurie badly needed company since he always eagerly looked at his neighbors as if he was missing the fun they were having. To her, he appeared to be a lonely boy longing for enjoyment with friends.
(iii) Jo remembered the beautiful Christmas present that was sent to the March family by their neighbor Mr. Laurence and she felt it was a nice gesture by their neighbor.

Question 17.
Guess the meaning of the phrase “go on being neighborly” in the context.
Answer:
The phrase “go on being neighborly” in the context of the story means being friendly and helpful to the people living in one’s neighborhood.

Question 18.
Bring out the contrast in the lives of Jo and Laurie in a few lines.
Answer:
Jo belonged to a happy family who according to Laurie, had always good times together. Laurie was hungry to have company of friends and was a lonely boy. Jo had a loving mother who used to take care of her children but, Laurie was a motherless child who badly missed his mother. Jo was frank and innocent as any child of her age, whereas, Laurie’s loneliness was sickening for him.

Question 19.
I’m happy as a cricket here. (Name and explain the figure of speech)
Answer:
Simile. The happiness of Jo is directly compared to the happiness of the insect cricket.

Question 20.
Guess the meaning of the word ‘affair’ in the context.
Answer:
The word ‘affair’ in the context means ‘responsibility/matter’.

Comprehension:

Read the extract and complete the activities given below.

Global Understanding:

Question 1.
Complete the table.
The traits of Jo and Laurie are jumbled. Sort them out and write them in appropriate columns.
(companionless, adventurous, empathetic, unenergetic) (Answers are given directly)
Answer:

Jo	Laurie
adventurous	companionless
empathetic	unenergetic

Question 2.
Pick up the statements which confirm the theme of this passage.
(a) This passage is about Jo’s family not putting down the curtain.
(b) This passage is about Jo’s confirmation about Laurie’s loneliness.
(c) This passage is about Laurie’s habit of peeping at Jo’s family.
(d) This passage brings out the contrast in the lives of Jo and Laurie.
Answer:
(b) This passage is about Jo’s confirmation about Laurie’s loneliness.
(d) This passage brings out the contrast in the lives of Jo and Laurie.

Question 3.
Complete the sentences in column ‘A’ by matching them with the clues in column ‘B’

Column ‘A’	Column ‘B’
1. Laurie inspite of being inquisitive asked no questions as ____________ .	(a) Laurie seldom laughed aloud
2. Maid was surprised as ____________ .	(b) That indicated his good breeding
3. Jo was elated ____________ .	(c) As she was successful in making Laurie laugh
4. Jo found happiness in ____________ .	(d) Reading books

Answer:

Column ‘A’	Column ‘B’
1. Laurie inspite of being inquisitive asked no questions as ____________ .	(a) That indicated his good breeding
2. Maid was surprised as ____________ .	(b) Laurie seldom laughed aloud
3. Jo was elated ____________ .	(c) Reading books
4. Jo found happiness in ____________ .	(d) As she was successful in making Laurie laugh

Question 4.
Complete the following statement with four correct information from the extract.
Jo felt Laurie needs cheering up because:

1. ________
2. ________
3. ________
4. ________

Answer:

1. He seemed lonely
2. she was being neighborly
3. She was social and empathetic
4. Laurie looked expectantly at the sisters as they bad good time.

Complex Factual:

Question 1.
What were Jo’s queries to Laurie when they had talked for the first time?
Answer:
Jo wanted to know whether Laurie was sick, how he amused himself, his liking for books and if he had any visitor or not.

Question 2.
Mention any two outcomes of Jo’s visit to Laurie’s place.
Answer:
Jo’s visit made Laurie excited in the expectation of getting a companion which he never had. It also helped him to come out of his shyness and converse with Jo freely.

Question 3.
What was Jo’s suggestion to do away with Laurie’s loneliness.
Answer:
Jo assured Laurie that the curtain at her place would never be drawn so that Laurie can spend time looking at their activities. She also suggested that Laurie could come to their home and get himself entertained by. all the members of her family.

Question 4.
Why was Laurie’s grandfather impressed with Jo?
Answer:
Laurie’s grandfather was impressed by Jo’s spirited answers like her grandfather. He also appreciated that she was brave and honest as her grandfather was.

Question 5.
Mention any four changes that occurred in grandfather after meeting Jo.
Answer:

1. Grandfather shed his strict countenance.
2. He invited Jo to come over for tea.
3. He promised to come over to meet Jo’s mother.
4. He offered Jo his arm with old fashioned courtesy (indicating his gratitude for her neighborly arrival)

Inference / Interpretation / Analysis:

Question 1.
Complete the following statement.
Jo wanted to help Laurie because –
Answer:
Jo wanted to help Laurie because Laurie was unwell and he felt lonely as he had no one of his age at home. He deserved to have fun.
OR
Give reasons
“The big eyes brightened and the mouth began to smile”.
Answer:
The brightness in the eyes of Laurie and his smiling face are proofs of his happiness of having a possible friendship with Jo. When Jo threw snowballs at Laurie, he could feel Jo’s eagerness to talk to him. His loneliness has always made him unhappy and this gesture of Jo is a welcome change for him.

Question 2.
Complete the following sentence Mr. Laurie was a Tittle gentleman’ as …
Answer:
Mr. Laurie was a Tittle gentlemen’ because he was known for offering due respect to the guest who was coming to his place. He prepared himself decently by brushing his pate, pulling on a fresh set of clothing and making an attempt to clean his room. He followed the same routine for Jo’s arrival to his house also.

Question 3.
Point out the reason for Laurie’s minute observation of Jo’s family.
Answer:
Laurie spent his lonely time looking at the fun Jo’s family was having. He enjoyed watching each member of the family eagerly as he missed all those good times at his own home. He did not have his mother and he loved these girls in the company of their mother.

Question 4.
Mention the impact of Jo’s narratives on Laurie –
1. …………….
2. ……………..
Answer:
1. Laurie enjoyed her narrative immensely and he laughed out aloud.
2. He found a sudden merriment in otherwise dull mood owing to his illness.

Question 5.
Jo wasn’t scared of Laurie’s grandfather. Give evidence from the passage quoted to you.
Answer:
Jo was a bold girl who spoke her mind when it was needed. As she looked at Mr. Laurence’s portrait she found his eyes to be kind and grew fond of him instantly. She found him to be compassionate as she spoke to him and was confident that there was nothing to be scared of that gentleman.

Question 6.
Complete the boxes with information.

Answer:

Personal Response:

Question 1.
“Girls are quiet and like to play nurse”. Do you Agree or Disagree? Justify your answer.
Answer:
I do not agree to the statement. There is no hard and fast rule about this impression about girls. There may be many boys who are very quiet and also good at nursing. It depends on the nature of a person whether he/ she is quiet, or noisy or talkative. The ability to nurse somebody is also dependant on the ability of a person irrespective of any gender.

Question 2.
Enlist the gifts that you receive from or give to your friends,
Answer:

1. Books
2. Wind Chimes
3. Coffee mugs
4. Photo frames

Question 3.
Give your suggestions in two sentences. How you will cheer up one of your lonely classmates.
Answer:
I can cheer up my lonely classmate by giving him/her company and involving in some activities together. We can sit together in the classroom, share our tiffins and invite him/her at my place on holidays.

Question 4.
What are you afraid of? Explain your answer.
Answer:
Generally I am not afraid of anything and a carefree type of person. But sometimes I worry about the loss of my near and dear ones as I am very attached to my family and friends.

Question 5.
What do you fear the most? why?
Answer:
As a student I fear examination especially the public exams as they decide the future course of action. There is always an element of uncertainty which brings in fear for exams among students.

Question 6.
How do you help your neighbor?
Answer:
I help my neighbor by making myself available when they need me. I also extend courtesy calls when I meet them.

Language Study:

Question (i)
The idea amused Jo who liked to do daring things
Answer:
Jo liked to do daring things and the idea amused her.

Question (ii)
The boy is suffering for society.
Answer:
The boy has been suffering for society.

Question (iii)
What a cozy room this is! (Rewrite as a statement)
Answer:
This room is indeed very cozy.

Question (iv)
Laurie forgot his bashfulness and grew sociable. (Remove ‘and’ to make it a simple sentence)
Answer:
Forgetting his bashfulness Laurie grew sociable.

Question (v)
Her face was very friendly and her sharp voice unusually gentle.
(Use ‘not only but also’ and rewrite)
Answer:
Her face was not only very friendly but her sharp voice was unusually gentle also.

Question (vi)
She had been so simply taught that there was no nonsense in her head. (Use ‘too’)
Answer:
She had been too simply taught to have any nonsense in her head.

Question (vii)
Laurie enjoyed that immensely. (Use ‘enjoyment’and rewrite)
Answer:
Laurie’s enjoyment at that was immense.

Question (vii)
Jo liked his good breeding. (Frame a Wh-question to get the underlined part as an answer)
Answer:
What did Jo like in him?

Question (viii)
For a minute a wild desire to run away possessed her. (Change the voice)
Answer:
For a minute she was possessed by a wild desire to run away.

Question (ix)
He isn’t as handsome as my grandfather, but I like him. (Use ‘Though’)
Answer:
Though he isn’t as handsome as my grandfather, I like him.

Question (x)
He seems a little lonely. (Frame a question to get the underlined part as answer)
Answer:
How does he seem?

Question (xi)
I shall come and see your mother. (Use a modal auxiliary showing ‘obligation’)
Answer:
I must come and see your mother.

Vocabulary:

Question 1.
Match the words in Column ‘A’ with their meanings in Column ‘B’.
Answer:

Column ‘A’	Column ‘B’
1. queer	(a) bold
2. dismal	(b) frail
3. daring	(c) unusual
4. weak	(d) dull

Answer:

Column ‘A’	Column ‘B’
1. queer	(c) unusual
2. dismal	(d) dull
3. daring	(a) bold
4. weak	(b) frail

Question 2.
Mention any 4 adjectives that describe the traits of Jo’s character in the extract.
Answer:
Character
Jo

Adjectives

1. Cheerful
2. Empathetic
3. Sociable
4. Kind

Question 3.
Give antonyms of the following words,

1. rude
2. splendid
3. funny
4. frank

Answer:

1. polite
2. ordinary
3. serious

Question 4.
Give antonyms of the following using prefix.
Answer:
1. interesting × uninteresting
2. afraid × unafraid

Question 5.
Give one word for:
Answer:

1. of a voice: low and rough – Gruff
2. Lacking courage – Cowardly
3. unpleasant – Dreadful
4. very large or great – Tremendous

Glossary:

1. shovel – spade
2. mischievous – naughty
3. to doze – to sleep lightly
4. groves – group of trees
5. hedge – row of bushes
6. shabby – broken down/dilapidated
7. stately – grand
8. mansion – big house
9. betokening – a sign of something
10. glimpses – brief/faint looks
11. frolicked – played fun games
12. enchanted – attractive/ fascinating
13. splendors – richness / luxury
14. behold – look/see
15. scandalizing – shocking /disgusting
16. queer – odd/unusual/funny
17. dismal – dull row – noise
18. flutter – tremendous/full of
19. pate – head
20. parlor – sitting room
21. briskly – quickly
22. comforting – soothing
23. sociable – friendly
24. cozy – comfortable
25. hearth – floor of fireplace
26. whisked – removed
27. beckoned – called
28. twitching – shivering
29. splendid – grand/superb
30. bother- trouble/nuisance
31. acquainted – be familiar
32. blunt – frank/straightforward
33. fidgety – restless
34. poodle – a bread of dog
35. immensely – vastly/very much
36. tweaked – pulled
37. elated – delighted
38. trifle – little
39. quaint – old-fashioned /unusual/attractive
40. velour – woven fabric
41. grim – ill-tempered/stern
42. gruff – rough
43. cowardly – fearful
44. twinkle – shining
45. dreadful – terrible
46. courtesy – politeness
47. colored up – embarrassed
48. to wait on – act as an attendant to
49. pranced – walked in an energetic way
50. wicked – playfully mischievous
51. affair – matter/responsibility
52. good breeding – being raised well/ the result of good upbringing and training for good manners.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 4 Forms of Business Organisation – I Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 4 Forms of Business Organisation – I

1. (A) Select the Correct option and rewrite the sentence

Question 1.
A sole trading concern ensures ……………….. business secrecy.
(a) maximum
(b) minimum
(c) limited
Answer:
(a) maximum

Question 2.
The members of Hindu undivided family business are called ………………..
(a) carpenter
(b) co-parcener
(c) parceners
Answer:
(b) co-parcener

Question 3.
The head of Joint Hindu Family Business is called as ………………..
(a) KARTA
(b) owner
(c) manager
Answer:
(a) KARTA

Question 4.
Registration of partnership firm is ………………. in Maharashtra.
(a) voluntary
(b) compulsory
(c) easy
Answer:
(b) compulsory

Question 5.
The liability of the shareholders in Joint Stock Company is ………………
(a) limited
(b) unlimited
(c) restricted
Answer:
(a) limited

Question 6.
A Joint Stock Company is an artificial person created by ………………….
(a) Law
(b) Articles
(c) Memorandum
Answer:
(a) Law

Question 7.
Registration of a Joint Stock Company is ………………..
(a) compulsory
(b) free
(c) not required
Answer:
(a) compulsory

Question 8.
Liability of member of a Co-operative Society is ………………
(a) limited
(b) restricted
(c) maximum
Answer:
(a) limited

Question 9.
Indian Co-operative Society’s Act was passed in ………………
(a) 1912
(b) 1913
(c) 1911
Answer:
(a) 1912

Question 10.
…………………. acts as a signature of the company.
(a) Common seal
(b) Common sign
(c) Common image
Answer:
(a) Common seal

1. (B) Match the pairs

Group A	Group B
(a) Private Company	(1) Karta
(b) Public Company	(2) Local Market
(c) Common Seal	(3) 1932
(d) Partnership Act	(4) Maximum 200 members
(e) Joint Hindu Family Firms	(5) One Man Show
(F) Subject-matter of insurance	(6) Minimum Seven members
	(7) Minimum 10 members
	(8) Signature of Company
	(9) Maximum 100 members
	(10) Manager

Answer:

Group A	Group B
(a) Private Company	(4) Maximum 200 members
(b) Public Company	(6) Minimum Seven members
(c) Common Seal	(8) Signature of Company
(d) Partnership Act	(3) 1932
(e) Joint Hindu Family Firms	(1) Karta

1. (C) Give one word/phrase/term.

Question 1.
An elected body of representatives of co-operative Society for its day to day administrations.
Answer:
Managing Committee

Question 2.
The owner is the sole manager and decision maker of his business.
Answer:
Sole Trader

Question 3.
One man show type of business organisation.
Answer:
Sole trading concern

Question 4.
The members of the Joint Hindu Family firm.
Answer:
Co-parceners

Question 5.
A partner who gives his name to partnership firm.
Answer:
Nominal partner

Question 6.
There is free transferability of shares in this company.
Answer:
Public Company

Question 7.
A partnership agreement in writing.
Answer:
Partnership Deed

Question 8.
The motto of the co-operative society.
Answer:
Service

Question 9.
An organization which is service oriented.
Answer:
Co-operatives Society

1. (D) State True or False

Question 1.
Sole trader is the decision maker of the business.
Answer:
True

Question 2.
Sole trading concern operates in local markets.
Answer:
True

Question 3.
Sole proprietorship is useful for small business.
Answer:
True

Question 4.
The liability of KARTA is unlimited.
Answer:
True

Question 5.
The maximum number of members is unlimited in Joint Hindu Family Firm.
Answer:
True

Question 6.
Joint Stock company can raise huge amount of capital.
Answer:
True

Question 7.
There is a separation of ownership and management in Joint Stock Company.
Answer:
True

Question 8.
Board of Directors manage the business of Joint Stock Company.
Answer:
True

Question 9.
Partnership agreement may be oral or written.
Answer:
True

Question 10.
In partnership firm, the liability of every partner is limited, joint and several.
Answer:
False

Question 11.
The main motto of co-operative society is to render services to its shareholders.
Answer:
False

Question 12.
The membership of a co-operative society is compulsory.
Answer:
False

1. (E) Find the odd one

Question 1.
Sole proprietorship, Joint Hindu Family, Non-Government Organization (NGO), Partnership firm.
Answer:
NGO

Question 2.
Active partner, Shareholder, Nominal partner, Secret partner.
Answer:
Shareholder

1. (F) Complete the sentences

Question 1.
Private sector enterprises are owned and managed by the …………………
Answer:
Private entities

Question 2.
There is only one owner in …………………
Answer:
Sole Trading Concern

Question 3.
Admission of new individual into existing business has given birth to …………………
Answer:
Partnership Firm

Question 4.
A partner who takes active participation in the day to day working of the business is known as …………………
Answer:
active partner

Question 5.
When there is no provision in partnership agreement regarding time period for partnership then it is known as …………………
Answer:
Partnership at will

Question 6.
The property of JHF business is jointly owned by the …………………
Answer:
KARTA

Question 7.
The management of Co-operative society is based on …………………
Answer:
democratic principles

Question 8.
The rule for voting in Co-operative society is …………………
Answer:
one member one vote

Question 9.
The rule for voting in Joint Stock company is …………………
Answer:
one share one vote

Question 10.
The face value of the shares of Co-operative society is very …………………
Answer:
less

Question 11.
Consumer’s co-operatives are formed by the …………………
Answer:
consumers

Question 12.
Registration of Joint Stock Company is compulsory according to the Companies Act …………………
Answer:
2013

1. (G) Complete the following table

Question 1.
(Public company, Private company, Co-operative Society, Partnership Firm, Sole Trading Concern)

Group A	Group B
(i) Minimum 2 and maximum 200	……………..
(ii) Minimum 10 and maximum no limit	…………….
(iii) ………………	Minimum 7 and maximum unlimited
(iv) Form of business organisation having only one member	…………………
(v) Minimum 2 and maximum 50	………………..

Answer:

Group A	Group B
(i) Minimum 2 and maximum 200	Private Limited Compmay
(ii) Minimum 10 and maximum no limit	Co-operative Society
(iii) Public company	Minimum 7 and maximum unlimited
(iv) Form of business organisation having only one member	Sole Trading Concern
(v) Minimum 2 and maximum 50	Partnership Firm

1. (H) Answer in one sentences

Question 1.
What is Sole Trading Concern?
Answer:
Sole Trading Concern is a type of business which is owned, managed and controlled by one person.

Question 2.
What do you mean by partnership firm?
Answer:
A business owned and managed by two or more persons sharing profits and losses is called a partnership firm.

Question 3.
What is the meaning of Joint Stock Company?
Answer:
Joint Stock Company is an artificial person created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.

Question 4.
What is Joint Hindu Family business?
Answer:
A Joint Hindu Family is a form of business organization which runs from one generation to another according to the Hindu Law.

Question 5.
What do you mean by Co-operative Society?
Answer:
Co-operative Society is a voluntary association of individuals which is formed for providing services to members.

Question 6.
What do you mean by minor partner?
Answer:
A minor partner is a partner who is admitted into the partnership firm for the benefit of the firm with the consent of all partners.

Question 7.
What is Quasi Partner?
Answer:
Quasi partner is a partner of the partnership firm who has retired from the firm but has left his capital behind in the firm.

Question 8.
What do you mean by partner-in-profits only?
Answer:
A partner-in-profits only is a partner who gets into an agreement to share only the profits of the partnership firm and not the losses.

Question 9.
What do you mean by general partnership?
Answer:
General partnership is a form of partnership where, the liability of all the partners is unlimited, joint and several. Every partner has an equal right and it can be formed under the Partnership Act of 1932.

Question 10.
What is the meaning of Private company?
Answer:
A Private Limited company is a company which by its articles restricts the right to transfer share, limits the maximum number of members to 200.

Question 11.
What do you mean by Public company?
Answer:
A public company means a company which is not a private company.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
In Public company, shares are not freely transferable.
Answer:
In Private company, shares are not freely transferable.

Question 2.
In Private company, there are minimum 3 (Three) directors.
Answer:
In Private company, there are minimum 2 (Two) directors.

Question 3.
Registration of Joint Stock company is not compulsory.
Answer:
Registration of Joint Stock company is compulsory.

Question 4.
There is less secrecy in Sole Trading concern.
Answer:
There is maximum secrecy in Sole Trading concern.

Question 5.
In Partnership firm, minimum three members are required.
Answer:
In partnership firm, minimum two members are required.

Question 6.
In Joint Hindu Family business, the senior most member of family is called as Co-parcener.
Answer:
In Joint Hindu Family business, the senior most member of family is called as Karta.

Question 7.
Indian Partnership Act, 1940 is applicable in India.
Answer:
Indian Partnership Act, 1932 is applicable in India.

2. Explain the following terms/concepts

Question 1.
Sole Trading Concern.
Answer:

1. It is a form of business organization which is owned, managed and controlled by one person.
2. It need not be registered.
3. It does not have a legal status i.e. It does not have a stable life.
4. Maximum secrecy can be maintained in Sole Trading concern.

Question 2.
Partnership Firm.
Answer:

1. It is a voluntary association of two or more persons with a common objective.
2. It is formed by an agreement called Partnership deed.
3. It is governed by Indian Partnership Act, 1932.
4. Registration of partnership firm is optional as per Partnership Act, 1932.
5. In Maharashtra, registration of partnership firm is made compulsory.

Question 3.
Joint Hindu Family Firm.
Answer:

1. It is a form of business organization which is carried from one generation to another generation.
2. It comes into existence by operation of Hindu Law.
3. This form of organization is found in India only.
4. The seniormost member of the family is called ‘Karta’ while other members are called ‘Co-parceners’.

Question 4.
Co-operative Society.
Answer:

1. It is a voluntary association of individuals which is formed for providing services to members.
2. Its main motto is ‘service’ rather than ‘profit’.
3. It runs on principle of ‘One member One Vote’.
4. It enjoys an independent legal status, distinct from its members.

Question 5.
Joint Stock Company.
Answer:

1. It is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.
2. The main motive of Joint Stock company is maximisation of profit.
3. It works as principle of “One share One vote”.
4. It has to follow Indian Companies Act, 2013.

Question 6.
Karta.
Answer:

1. Karta is a seniormost member of the family, who runs the Joint Hindu Family Business.
2. The Karta has unlimited liability in such type of business.
3. Karta has the right to manage the business.
4. Karta need not consult any body about business decisions.

Question 7.
Managing Committee.
Answer:

1. Managing committee is a group of members of a Co-operative society, who looks after the working of Co-operative society.
2. They are elected by the shareholders of Co-operative society.
3. All important decisions are taken by the managing committee.
4. In short, they look after day to day administration of the Society.

Question 8.
Nominal Partner.
Answer:

1. A partner who only lends his name and reputation to the partnership firm is called as nominal partner.
2. He is simply obliging his friends by allowing the firm to use his name as a partner.
3. He may or may not be given any share in the profits of the firm.
4. He does not contribute to the capital of the business.
5. He is liable to the debts of the firm.

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

1. Mr. Raghunath is running business from last 30 years. This business is ancestoral business of Mr. Raghunath. Kiran and Naman, two sons of Mr. Raghunath are helping him along with their wives.

Question 1.
Find out the type of business.
Answer:
Joint Hindu Family Firm.

Question 2.
Who is Raghunath?
Answer:
Raghunath is the Karta.

Question 3.
What Kiran and Naman are called?
Answer:
Kiran and Naman are called as co-parceners.

2. Mr. Sawant a Chartered Accountant by profession and Mrs. Tambe, an Architect by profession running a firm namely ‘ST Firms’ in Nagpur.

Question 1.
Identify the form of business organisation in the above examples.
Question 2.
Is it a registered organisation?
Question 3.
What is the Profession of Mr. Sawant?

4. Distinguish between the following

Question 1.
Private Limited Company and Public Limited Company
Answer:

	Private Limited Company	Public Limited Company
(1) Meaning	A Private Limited Company is a company which by its articles, restricts the right to transfer share, limits the maximum number of members to 200 and prohibits the issue of prospectus.	A Public Company means a company, which is not a Private Company.
(2) Name of the Company	Name of the company must end with the word ‘Private Limited’.	Name of the company must end with the word ‘Limited’.
(3) Number of Members	There are minimum 2 members. Maximum members are 200.	There are minimum 7 members. Maximum members are unlimited.
(4) Transfer of Shares	Shares of the company are not freely transferable.	Shares of the company are freely transferable.
(5) Issue of Prospectus	The company cannot issue prospectus. Statement in lieu of prospectus is issued.	The company has to issue prospectus compulsory.
(6) Number of Directors	Minimum 2 Directors are needed in a Private Limited Company.	Minimum 3 Directors are needed in a Public Limited Company.
(7) Statutory Meeting	A Private Limited Company need not hold a Statutory Meeting.	A Public Limited Company must hold a Statutory Meeting compulsorily.
(8) Capital	Minimum paid up capital is one lakh rupees.	Minimum paid up capital is five lakh rupees.
(9) Commencement of Business	The business can be started after getting ‘Incorporation Certificate’.	The business can be started after getting ‘Commencement Certificate’.

Question 2.
Sole Trading Concern and Partnership Firm.
Answer:

	Sole Trading Concern	Partnership Firm
(1) Meaning	Sole proprietorship is owned and controlled by one person.	Partnership firm is owned and controlled by two or more persons called as ‘Partners’.
(2) Formation	Sole trading concern can be formed easily. It is started as soon as the owner decides.	Partnership firm is formed by an agreement between two or more persons.
(3) Numbers of Members	Sole trading concern is owned by a single person.	Minimum 2 members are needed for starting business. The maximum number is 50.
(4) Registration	There is no need for registration of sole trading concern.	A partnership firm may or may not be registered. However, it is always desirable for the firm to be registered. It is compulsory in Maharashtra.
(5) Secrecy	It is possible to have maximum business secrecy.	Secrecy is shared among all the partners.
(6) Liability	Liability of a sole trader is unlimited	Liability of a partner is unlimited, joint and several.
(7) Management	The sole trader looks after management of business. He is manager of the business.	All partners take part in management of the firm according to their skills.
(8) Capital	The entire capital is contributed by the sole trader, comparatively limited.	Partners contribute capital to the firm, comparatively more.
(9) Act/Law	There is no special Act governing the Sole Trading concern.	Partnerships are governed by the Indian Partnership Act, 1932.
(10) Sharing of Profit	The sole trader alone enjoys all the profits of business.	Partners share the profits of business as per the ratio given in the agreement.
(11) Risk	In this form of business organization, the risk is assumed by sole trader alone.	In partnership firm, the risk is shared by all the partners.
(12) Disputes	There is no room for disputes among owners, as there is only a single owner.	There can be disputes among partners.

Question 3.
Partnership Firm and Joint Hindu Family.
Answer:

	Partnership Firm	Joint Hindu Family
(1) Meaning	Partnership firm is controlled by two or more persons called as ‘Partners’.	In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws.
(2) Number of Members	Minimum two members are needed for starting business. The maximum number is fifty.	Membership of the firm depends upon the birth and death in the family. There is no limit on membership. A person adopted into the family also becomes a member.
(3) Registration	Registration is not compulsory in India, but it is compulsory in Maharashtra.	Registration is not compulsory.
(4) Liability	The liability of partners is unlimited, joint and several.	Karta has unlimited liability and Co-parceners have limited liability.
(5) Capital	Comparatively more, as it is contributed by all partners.	The whole capital comes from ancestral property.
(6) Secrecy	Secrets share by all partners.	Secrecy can be maintained within family.
(7) Management	All partners takes part in management of the firm according to their skills.	Karta looks after the management of the business. All Co-parceners follow his decision.
(8) Stability	Stability of business is affected by death, lunacy or insolvency of a partner.	Comparatively, more stable as business is not affected by death of Karta or Co-parceners.
(9) Act	Partnerships are governed by the Indian Partnership Act, 1932.	Joint Hindu Family firm follows the Hindu Succession Act, 1956.
(10) Formation	Partnership firm is formed by an agreement between two or more persons.	Joint Hindu Family Firm comes into existence by operation of Hindu Laws.
(11) Sharing of Profits/ Losses	The profits and losses are shared by partners as per the ratio given in the agreement.	The profits and losses are shared between Karta and Co-parceners.
(12) Inspection of books of Accounts	A partner has a right to inspect books of accounts of the firm.	A co-parcener has no right to inspect books of accounts of the firm.
(13) Implied	Authority Every partner has implied authority to act on behalf of the other partners.	Karta has implied authority to act on behalf of the firm.

Question 4.
Co-operative Society and Joint Stock Company.
Answer:

	Co-operative Society	Joint Stock Company
(1) Meaning	Co-operative Society is a voluntary association of individuals which is formed for providing services to members.	Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by board of directors.
(2) Number of Members	Minimum ten members and maximum number of members is unlimited.	Private company- Minimum – 2 Maximum – 200 Public company- Minimum – 7 Maximum – No limit
(3) Capital	A Co-operative society has less capital as compared to Joint Stock company.	Joint Stock company has large capital.
(4) Management	Managing Committee manages Co-operative society.	Board of Directors manages Joint Stock company.
(5) Act	Co-operative Societies have to follow Co-operative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra State Co-operative Societies Act, 1960.	Companies have to follow Indian Companies Act, 2013.
(6) Formation	Formation of a Co-operative society is comparatively cheaper and easier.	Formation of a Joint Stock Company is costly, difficult and time – consuming.
(7) Voting Right	The principle of “One member One vote” is followed.	The principle of “One share One vote” is followed.
(8) Motto	The main motto of a Co-operative society is to give services to the people.	The main motto of Joint Stock company is to make maximum profit.
(9) Transferability of Shares	Shares are not transferable. They can be surrendered to the society.	Shares of a Public Company are freely transferable.
(10) Remuneration	Members of Managing Committee work on honorary basis.	Board of Directors are paid salary and given fees for attending board meetings.
(11) Area of Business	Normally, the co-operatives have a limited area of business.	Companies have a larger area of business operation.
(12) Proxies	In a Co-operative society, proxies are not allowed in the meetings.	In a Joint Stock company, proxies are allowed to vote in the meetings.

Question 5.
Joint Hindu Family Firm and Joint Stock Company.
Answer:

	Joint Hindu Family Firm	Joint Stock Company
(1) Meaning	In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws.	Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.
(2) Number of Members	Membership of the firm depends upon the birth and death in the family. There is no limit on membership.	Private company- Minimum – 2 Maximum – 200 Public company- Minimum – 7 Maximum – No limit
(3) Registration	Registration is not required	Registration is compulsory.
(4) Liability	Karta has unlimited liability and Co-parceners have limited liability.	The liability of shareholders is limited upto the extent of unpaid amount on shares by them.
(5) Capital	The whole of ancestral property used as capital.	The company has huge capital.
(6) Secrecy	Secrecy can be maintained within the family.	Books of accounts have to be published. Business secrecy cannot be maintained.
(7) Management	Karta manages the business and he is assisted by co-parceners.	Board of Directors manages the Joint Stock company.
(8) Government Control	There is limited government interference.	There is strict government control.
(9) Act	Joint Hindu Family Firms are governed by the Hindu Succession Act, 1956.	Joint Stock Companies are governed by Indian Companies Act, 2013.
(10) Formation	It is comparatively easy to form.	Formation of a Joint Stock Company is difficult, costly and time-consuming.
(11) Legal Existence	A Joint Hindu Family firm does not have a separate legal existence independent of its members.	A Joint Stock Company has a separate legal existence. It is distinct from its members.
(12) Minor Member	Minors can become a member of the firm.	Minors cannot become a member of the company.

Question 6.
Co-operative Society and Partnership Firm.
Answer:

	Co-operative Society	Partnership Firm
(1) Meaning	Co-operative Society is a voluntary association of individuals which is formed for providing services to its members.	Partnership firm is formed by two or more persons to do business and share profits.
(2) Number of Members	Minimum ten persons and maximum no limit.	Minimum two persons and maximum fifty persons.
(3) Registration	It is compulsory.	It is not compulsory in India, but compulsory is Maharashtra.
(4) Liability	Liability of members is limited upto the extent of unpaid amount on shares held by them.	Liability of partners is unlimited, joint and several.
(5) Secrecy	It is not possible to maintain secrecy in a Co-operative Society.	It is possible to maintain secrecy to some extent in the firm.
(6) Management	Managing Committee manages the society according to its bye-laws.	All partners are involved in the management of the firm.
(7) Stability	Stability is not affected by death, insolvency or lunacy of a member.	Stability of a firm is affected by death, insolvency or lunacy of a partner.
(8) Government Control	There is a lot of government supervision and control.	There is minimum government supervision for a partnership firm.
(9) Act	Co-operative Societies have to follow Partnership firms are governed by the Indian Co-operative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra Co-operative Societies Act, 1960.	Indian Partnership Act, 1932.
(10) Motive	The motive is to give maximum services to the people	The motive is to earn profits.
(11) Legal Status	A Co-operative Society enjoys an independent legal status, distinct from its members.	Partnership firms do not have an independent legal status. Partners and the firm are one and the same.
(12) Transfer of Shares	Members can surrender shares to the society.	Partners cannot transfer the shares without the consent of other partners.

5. Answer in brief

Question 1.
State any four features of Sole Trading Concern.
Answer:
(i) Suitable for some Special Business : Sole trading concern is suitable for business where personal attention and individual skill is needed e.g., Beauty parlour, groceries, fashion designing, sweet shops, tailoring, restaurants etc.

(ii) Unlimited Liability : Liability of the sole trader is unlimited. In case business assets are not sufficient to meet business expenses, private property of the sole trader will be used. There is no difference made between private property and business property of sole trader.

(iii) No Sharing of Profits and Risks : A sole trader enjoys all the profits of business. As he is the single owner of business he assumes full responsibility in business. He alone bears all the losses or risks involved in business.

(iv) Business Secrecy : Maximum business secrecy can be maintained in a sole trading concern. A sole trader is responsible only to himself. He need not discuss any matter of business with outsiders. Moreover, there is no legal compulsion for sole trader to publish books of accounts of business.

Question 2.
State any four types of partners.
Answer:
The different types of partners are:
(i) Active or Working Partners : In practice one or two partners take active part in the management. Such partners are called active or working partners. They contribute capital, shares profits or losses, and has unlimited, joint and several liability. They take an active interest in the day to day working of the firm. These partners are also known as ordinary / general / actual partners.

(ii) Dormant or Sleeping Partners : A dormant or sleeping partner is one who contributes capital to the firm. He does not take any active part in the management of the firm. He shares the profits and losses of the firm like any other partner. He voluntarily surrenders the right of management. However, he is liable for the debts of the firm.

(iii) Nominal Partners : A nominal partner is one who does not contribute any capital to the firm. He lends his name to the firm. He is simply obliging his friends by allowing the firm to use his name as a partner. He may or may not be given any share in the profits of the firm. His goodwill is used to attract business. However, he is liable for the debts of the firm.

(iv) Minor as Partner : According to the Indian Contract Act 1872, a person below 18 years is called a minor. But according to the Indian Partnership Act 1932, a minor can be admitted for the benefit of the firm with the consent of all other partners. He has a right to inspect the books of accounts. Minor partner has limited liability and is not liable for losses. He has the option to continue as a full-fledged partner or discontinue as a partner on attaining the age of majority. If he wishes to discontinue, he must give a public notice within 6 months from the age of majority.

Question 3.
Describe any four types of Co-operative Society.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(iv) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

Question 4.
State any four merits of Joint Hindu Family Firm.
Answer:
Merits of Joint Hindu Family are as follows:
1. Easy Formation : Joint Hindu Family Firm can be easily formed. The formation is simple. Registration is also not compulsory. There is no limit on minimum or maximum members in the business. Family members become co-parceners by birth in the family.

2. Quick Decision : Only the Karta is involved in the decision making process. This helps to take quick decisions in business. If decisions are taken quickly there can be prompt actions.

3. Business Secrecy : Complete business secrecy can be maintained. All decisions are taken by Karta only. Co-parceners cannot even inspect books of accounts. There is no compulsion to publish books of accounts.

4. Co-parceners Liability : The liability of co-parceners is limited. It is to the extent of their share in Joint Family Business. Private property of co-parceners cannot be attached to business property.

Question 5.
State any four demerits of Joint Stock Company.
Answer:
The demerits of Joint Stock Company are as follows:
1. Rigid Formation : The formation of a joint stock company is lengthy, difficult and time consuming. There are many legal formalities for starting business. Promoters have to prepare documents like Articles of Association, Memorandum of Association, etc. A private company has to go through two stages in formation. A public company has to go through four stages in formation.

2. Delay in Decision Making Process : In company form of organization no single individual can make a policy decision. All important decisions are taken by Board of Directors. Decision taking process is time consuming. Business may lose opportunities because of delay in decision making.

3. Lack of Secrecy : The management of companies remain in the hands of many persons. Everything is discussed in the meetings of Board of Directors. All important documents are available at registered office for inspection. Thus, there is no secrecy in business matters.

4. Excessive Government Control: A large number of rules are framed for the working of companies. The companies will have to follow rules for internal working. The government tries to regulate the working of the companies because large public money is involved. In case regulations are not complied with, large penalties are involved.

6. Justify the following statements

Question 1.
The Liability of a ‘Sole trader’ is Unlimited.
Answer:

1. One of the main features of a sole traders is unlimited liability.
2. If the sole trader becomes insolvent and if his business assets are insufficient to pay off his business debts, he will have to use his private property in order to pay off his creditors.
3. There is no distinction between business property and private property in case of a sole trading concern.
4. Thus, liability of a sole trader is unlimited.

Question 2.
Karta is the sole manager of‘Joint Hindu Family Business’.
Answer:

1. The Karta is the eldest or senior most person in the family business.
2. Karta has unlimited liability.
3. He has the entire decision making power and he is not binding on the views of the co-parceners.
4. Thus, the Karta is the sole manager of Joint Hindu Family business.

Question 3.
The main objective of Co-operative society is to provide services to its members.
Answer:

1. The Co-operative Society is a voluntary association of persons formed for the purpose of promoting the interest of its members. It is different from all other organizations.
2. The main objective of a co-operative organization is not to make profit but to give service to its members.
3. The co-operative society is formed for the welfare of the people.
4. Co-operative societies are rightly called as service oriented organization. Maximisation of profit is not the aim.
5. Thus, the main objective of Co-Operative society is to provide services to its members.

Question 4.
A Joint Stock Company can raise huge capital.
Answer:

1. A Joint Stock Company is an incorporated association.
2. It has a legal status independent of its members.
3. A Joint Stock Company has large membership. There is no maximum limit.
4. Shares are available in the open market.
5. Large number of investors are interested in buying shares.
6. Shares are freely transferable and members have limited liability.
7. Thus, a Joint Stock Company can raise huge capital.
8. Capital can also be raised by company from financial institutions.

Question 5.
The liability of Co-parceners is limited in ‘Joint Hindu Family Business’.
Answer:

1. In a Joint Hindu Family Business, there are two types of members – Karta and Co-parceners.
2. The karta has unlimited liability and he is the only decision making authority. The co-parcerns have limited liability and therefore cannot take part in the management of the firm. They can only share the profit but cannot challenge decisions taken by the Karta.
3. The liability of co-parceners is limited upto the extent of their share in the Joint Hindu Family Business.
4. The personal property of co-parceners is not used for payment of the liability of the Joint Hindu Family business.
5. Thus, the liability of Co-parcerners is limited in ‘Joint Hindu Family Business’.

Question 6.
Sole proprietorship is useful for small business.
Answer:

1. Sole trading concern is owned by only one person.
2. He uses his own skill and intelligence for his business.
3. Sole trader brings capital from his own savings. He may borrow from friends and relatives. However, capital collected is limited.
4. He alone takes decisions of business. Therefore, managerial ability is also limited.
5. Because of limited capital and limited managerial ability, it is not possible to expand business beyond a certain limit.
6. Thus, sole proprietorship is useful for small business where limited capital and less managerial ability is needed.

Question 7.
Co-operative society follows democratic principles.
Answer:

1. The members of a Co-operative organisation form the general body which manages the co-operatives. This body exercises the power through annual general meetings. They elect their representatives who look after the day to day management which is collectively known as Managing Committee.
2. ‘One member One vote’ is the principle followed by Co-operative Societies.
3. All these denote that it follows democratic principles.
4. Thus, Co-operative society follows democratic principles.

Question 8.
There is separation of ownership and management in Joint Stock Company.
Answer:

1. The shareholders are the owners of the company. The company is managed by the Board of Directors who are elected representatives of the shareholders.
2. There is separation of ownership and management because of the following reasons:
   (a) Scattered membership (b) Large membership (c) Disinterested shareholder (d) Heterogenous members (e) Separate legal entity.
3. Thus, ownership is in the hands of shareholders and the management is with the Board of Directors who are paid employees of the company.

Question 9.
Shares of Private Limited company are not freely transferable.
Answer:

1. According to the Companies Act, the right to transfer shares is restricted by its articles.
2. Only a public limited company has right to transfer shares freely.
3. Thus, shares of Private Limited company are not freely transferable.

Question 10.
All partners are joint owners of Partnership firm.
Answer:

1. According to the Indian Partnership Act, 1932, all the partners are joint owners of the property of the partnership firm.
2. No partner can use the property of the firm for his personal interest.
3. No partner is allowed to take any decision without the consent of all the partners.
4. No partners can make any secret profit in the business.
5. Profits and losses are shared among the partners in the profit sharing ratio mentioned in the deed.
6. Thus all partners are joint owners of Partnership firm.

Question 11.
Active partners take active part in day to day management of partnership firm.
Answer:

1. Active partner is also called a working partner. He brings in capital and also takes active part in the business of the firm.
2. He has unlimited liability and shares the profits and losses of the firm. He is also called a managing partner.
3. Thus, active partners take active part in day to day management of partnership firm.

7. Attempt the following

Question 1.
Explain various types of Co-operative Society.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Producer’s Co-operatives : Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and increase production. These societies are of two types:
(a) Industrial Service Co-operatives : This society supply raw materials, tools and machinery to the members. The producers work independently and sell their industrial output to the co-operative society. The output of members is marketed by the society.

(b) Manufacturing Co-operatives : In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or in their houses. The society sells the output in the market and its profits is distributed among the members.

(iv) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(v) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

(vi) Housing Co-operative Societies : Housing Co-operatives are owned by residents. The society purchases land and develops it. Houses are constructed for residential purpose on ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes loans are made available from Governmental or Non-Governmental sources. The society also looks after the maintenance of its buildings.

Question 2.
Explain the features of Joint Stock Company.
Answer:
The features of Joint Stock Company are as follows:
(i) Common Seal : A company being an artificial person cannot sign on its own. The law requires every company to have a seal and have its name engraved on it. Common seal is a symbol of company’s incorporate existence. As common seal is the signature of the company, it has to be affixed on all important documents of the company. When the seal is used it has to be witnessed by two Directors of the Company. The common seal is under the custody of Company Secretary.

(ii) Registration : The registration of Joint Stock Company is compulsory. All the companies have to be registered under Indian Companies Act, 2013. A private limited company can start its business immediately after getting ‘Incorporation Certificate’ while public limited company has to obtain. “Certificate of Commencement of Business” before it starts business.

(iii) Artificial Legal Person : A company is an artificial person created by law. It has an independent legal status. It has a separate name. It can enter into contracts, buy and sell property in its name. The company is distinct from its members.

(iv) Membership : A company is an association of persons. A private limited company must have atleast two persons and a public limited company must have atleast seven persons. The maximum limit of members for private company is 200. A public company can have unlimited members.

(v) Perpetual Succession : A Joint Stock company enjoys a long and stable life. There is continuity in existence, which means perpetual existence. Life of the company is not affected by life of the shareholders. If a shareholder dies, becomes insolvent or insane, the company will not be closed down. “Members may come and members may go but a company goes on forever”.

(vi) Separation of Ownership and Management: Persons investing in the shares of the company are called as shareholders. They are the owners of the company. They receive a share in the profits of the company called “dividend”. The large number of shareholders cannot manage business. They elect representatives who are collectively called as Board of Directors. They manage business of the Company.

(vii) Registered Office : Registered office of the company is a place where all the important documents of the company are kept e.g., Register of Members, Annual Returns, Minute Books, etc. All correspondence work of the company is done through registered office. The address of the registered office has to be mentioned in the domicile clause of the company.

(viii) Transferability of Shares : Shareholders are the owners of the company. Shares of a public limited company are freely transferable. There is a high degree of liquidity involved in buying shares of the company. Members can buy or sell shares as needed. However, there are restrictions on transferability of shares of a private company.

(ix) Voluntary Association : Any person can purchase shares and become a member of the company. The company is a voluntary association. No difference is made on the basis of religion, caste, creed, etc.

(x) Limited Liability : The liability of shareholders is limited. It depends upon the unpaid amount of shares held by them. Shareholders cannot be held personally liable for the debts of the company.

(xi) Separate Legal Status : The company is created by law. It has a separate legal entity. A company acts independently. The company can take legal action against anybody in its individual capacity.

Question 3.
Describe the features of Co-operative Society.
Answer:
(i) Limited Liability : The liability of members is limited. It depends upon the value of shares purchased by members. Therefore, their personal property is not used for payment of society’s debt.

(ii) Management : Elected representatives of members form the Managing Committee. The Managing Committee works according to bye-laws. Collective decisions are taken after conducting meetings. The organisation is managed on democratic principles.

(iii) Service Motive : The main motive of co-operative organisation is to give service to the people. It is not profit oriented. Utmost importance is given to the welfare of the people. In that sense, a co-operative society differs from other forms of organisation.

(iv) Surplus Profit: Profits are made in the course of business after payment of dividend to shareholders. A percentage of profit is always used for welfare of the people. Bonus is given to employees and as bonus on purchase made by members.

(v) Separate Legal Status : A Co-operative Society is formed according to Co-operative Societies Act, 1912, which gives it independent legal status. It is distinct from its members. Therefore it can enter into contract purchase property, etc. in its name.

(vi) Equal Voting Rights : All the members in a Co-operative Societies have equal voting rights irrespective of number of shares held by them.

(vii) Number of Members : Minimum 10 members are required for the formation of Co-operative Society. There is no limit on maximum number of members.

(viii) Democratic Principle : Democracy is followed in the working of co-operatives. Equality of voting rights is the main principle of the organisation. The principle of ‘One member One vote’ is followed. All members are equal in society.

(ix) Voluntary Association and Open Membership : Co-operative organisation is a voluntary association of individuals. Membership is voluntary. Any person can become a member of the organisation. No difference is made on the basis of language, religion, caste, etc. There is open membership. A person can become a member on his own free will and terminate membership whenever he wants.

(x) Registration : Registration of a Co-operative organisation is compulsory under Co-operative Society’s Act, 1912. Registration is done according to the Act of every state. In Maharashtra, Societies are registered under Maharashtra State Co-operative Societies Act, 1960.

(xi) State Support : Co-operatives receive support from the government. They are under the control and supervision of the State. All of them are registered under the Co-operative Societies Act, 1912. They get a corporate status. They get concessions from government in purchase of land, payment of tax etc. They get legal and financial assistance also.

8. Answer the following

Question 1.
Explain the features of Sole Trading Concern.
Answer:
A sole trading concern is one of the oldest and simplest form of organisation. An individual owns the entire business. The individual is the owner, controller and manager of the firm. Such an individual is called a Sole Trader or Sole Proprietor. This type of business is a one-man show.
(1) According to Prof. J. Hanse, “Sometimes known as one man business, it is a type of business unit where one person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the risk of ownership”.

(2) According to Prof. James Lundy : “The sole proprietorship is an informal type of business owned by one person.” The features of Sole Trading Concern are as follows:
(i) Suitable for some Special Business : Sole trading concern is suitable for business where personal attention and individual skill is needed e.g., Beauty parlour, groceries, fashion designing, sweet shops, tailoring, restaurants etc.

(ii) Unlimited Liability : Liability of the sole trader is unlimited. In case business assets are not sufficient to meet business expenses, private property of the sole trader will be used. There is no difference made between private property and business property of sole trader.

(iii) No Sharing of Profits and Risks : A sole trader enjoys all the profits of business. As he is the single owner of business he assumes full responsibility in business. He alone bears all the losses or risks involved in business.

(iv) Business Secrecy : Maximum business secrecy can be maintained in a sole trading concern. A sole trader is responsible only to himself. He need not discuss any matter of business with outsiders. Moreover, there is no legal compulsion for sole trader to publish books of accounts of business.

(v) Local Market Operations : A sole trader has limited capital and limited managerial skills, which forces him to operates in local are market only.

(vi) Individual Ownership : A sole trader is the single owner of business. He owns all the property and assets of the concern. He brings in the required capital for business. A sole trading concern is a ‘One man show”.

(vii) No separate legal status : Sole trader and his business are considered one and the same in the eyes of . law. Thus, it does not enjoy separate legal status.

(viii) Direct Contacts with Customers and Employees : A sole trader directly deals with customers and employees. A sole trader can pay personal attention to his customers. This helps him to maintain good relations with his customers. He can serve customers according to their likes and dislikes. As there are less number of employees, he can build good relations with them. He can listen to their grievances and try to solve them.

(ix) Self-employment : Such business form is best suitable for self-employment. Instead of being remaining unemployed one can start such business as it requires low capital and has less legal formalities.

(x) Freedom in Selection of Business : A sole trader has freedom to select any type of business. Business selected must be allowed legally. A sole trader can use any method of maintaining books of accounts.

(xi) Minimum Government Regulations : Sole trading concern need not follow any special Act. There are not much legal formalities needed for forming and closing a sole trading concern. Only the general law of the country has to be followed.

Question 2.
Explain different types of Partnership Firms.
Answer:

(i) General Partnership : These partnership can be formed under the Indian Partnership Act, 1932, where the liability of all partners are unlimited, joint and several.
General Partnership can be divided into three Kinds:
(a) Partnership at will: Such partnership are formed and continued as per the will of the partners. They are formed for an indefinite period. Any partner can terminate the partnership by giving a notice to the firm. Such firms exists so long as there is mutual trust and co-operation among the partners.

(b) Partnership for a particular period : Such partnerships are formed for a particular period of time. On the completion of the duration, the partnership firm automatically dissolves irrespective of the venture being complete.

(c) Partnership for a venture or particular partnership : Such partnerships are formed for a particular venture or job. It comes to an end on the completion of the venture. For e.g. construction of roads, dams, bridges, buildings, etc.

(ii) Limited Liability Partnership : This kind of partnership is formed under the Limited Liability Partnership Act 2008. There are 2 kinds of partners.

• Designated Partner : Limited liability partnership is one where there are atleast two partners of which one must be a resident of India.
• General Partner : In limited liability partnership a apart from the designated partners all other partners have limited liability. They are called general partners.

Question 3.
Explain different types of Partners.
Answer:
The different types of partners are:
(i) Active or Working Partners : In practice one or two partners take active part in the management. Such partners are called active or working partners. They contribute capital, shares profits or losses, and has unlimited, joint and several liability. They take an active interest in the day to day working of the firm. These partners are also known as ordinary / general / actual partners.

(ii) Dormant or Sleeping Partners : A dormant or sleeping partner is one who contributes capital to the firm. He does not take any active part in the management of the firm. He shares the profits and losses of the firm like any other partner. He voluntarily surrenders the right of management. However, he is liable for the debts of the firm.

(iii) Nominal Partners : A nominal partner is one who does not contribute any capital to the firm. He lends his name to the firm. He is simply obliging his friends by allowing the firm to use his name as a partner. He may or may not be given any share in the profits of the firm. His goodwill is used to attract business. However, he is liable for the debts of the firm.

(iv) Minor as Partner : According to the Indian Contract Act 1872, a person below 18 years is called a minor. But according to the Indian Partnership Act 1932, a minor can be admitted for the benefit of the firm with the consent of all other partners. He has a right to inspect the books of accounts. Minor partner has limited liability and is not liable for losses. He has the option to continue as a full-fledged partner or discontinue as a partner on attaining the age of majority. If he wishes to discontinue, he must give a public notice within 6 months from the age of majority.

(v) Partner in Profits only : A partner may clearly state that he will have a share only in the profits of the firm and that he will not share losses. Such a partner is known as “Partner in Profits Only”. He has no rights of management. He may not take active participation in the management of the firm.

(vi) Partner with Limited Liability : A limited partner has limited liability. A partner whose liability depends upon the extent of investment is called a limited partner. He has no right to take part in the day to day work. But such a partnership must have at least one partner having unlimited liability.

(vii) Secret Partner : A person is a partner of the firm and not known to general public is a secret partner. Secret partners have all the features like other partners. He brings capital to the firm and also gets a share in profit. He has unlimited liability. He can take part in the working of the business.

(viii) Sub-Partner : A partner when agrees to share his own profit derived from the firm with third person, it is known as sub-partner. A sub-partner cannot call himself as a partner in the firm.

(ix) Quasi Partner : A retired partner leaving his capital with the firm is called as Quasi Partner. He does not participate in the working of the firm, but share profit of the firm. He is also liable for the debts of the firm.

Question 4.
Explain the five features of Joint Stock Company.
Answer:
The features of Joint Stock Company are as follows:
(i) Common Seal : A company being an artificial person cannot sign on its own. The law requires every company to have a seal and have its name engraved on it. Common seal is a symbol of company’s incorporate existence. As common seal is the signature of the company, it has to be affixed on all important documents of the company. When the seal is used it has to be witnessed by two Directors of the Company. The common seal is under the custody of Company Secretary.

(ii) Artificial Person : A company is an artificial person created by law. It has an independent legal status. It has a separate name. It can enter into contracts, buy and sell property in its name. The company is distinct from its members.

(iii) Registration: The Registration of Joint Stock Company is compulsory. All companies have to be registered under Indian Companies Act, 2013.

(iv) Membership : A company is an association of persons. A private limited company must have atleast two persons and a public limited company must have atleast seven persons. The maximum limit of members for private company is 200. A public company can have unlimited members.

(v) O wnership and Management: Persons investing in the shares of the company are called as shareholders. They are the owners of the company. They receive a share in the profits of the company called “dividend”. The large number of shareholders cannot manage business. They elect representatives who are collectively called as Board of Directors. They manage business of the Company.

(vi) Limited Liability : The liability of shareholders is limited. It depends upon the unpaid amount of shares held by them. Shareholders cannot be held personally liable for the debts of the company.

Question 5.
Explain the merits of a Co-operative Society.
Answer:
The merits of a Co-operative Society are as follow:
(i) E asy Formation: It is easy to form a Co-operative organisation. Minimum ten members are needed to form the organisation. It does not involve much legal formalities. It is compulsory to register the organisation. However, the procedure for registration is simple and the fees are nominal.

(ii) Tax Concession : Co-operatives always get support of the government. As they play an important role in economic and social development, government gives them concessions in payment of tax.

(iii) Open Membership : Membership of a Co-operative organisation is open to all. A person can become a member by purchasing shares. No difference is made on the basis of language, religion, caste, etc. A person can become a member whenever he wants and terminate membership at his own will. Membership is voluntary.

(iv) Stability : A Co-operative organisation enjoys a long and stable life. The life of the organisation is distinct from the life of its members. If any member dies, becomes insolvent or insane, business is not closed.

(v) Self Financing and Charity : After providing 15% dividend to members, surplus amount is used for self-financing by the Co-operative Societies. Some amount of leftover profit is used for charity, social activities and for the growth of the co-operative society.

(vi) Less O perating Expenses: Cost of operation is low as salary is not paid to members who manage business. Members of Co-operative organisations work on honorary basis. They are not given any remuneration for their services. There are no expenses on advertising and publicity. This helps to increase profit.

(vii) Limited Liability : The liability of members is limited. It depends upon the value of shares purchased by members. Therefore, people are interested in investing in a Co-operative organisation.

(viii) Democratic Management: Democracy is followed in the management of co-operative organisation. All members are equal. The principle of “One member One vote” is followed. Members elect representatives who form the managing committee. They work according to bye-laws. The managing committee looks after day to day administration. Decisions are taken collectively in meetings.

(ix) Supply of Goods at Cheaper Rate : Goods are sold at lesser price through a Co-operative store. This is because the organisation is service – oriented. The store does not make use of services of middlemen and there are no expenses on advertising. So goods are sold at cheap rates.

Question 6.
Explain the demerits of Partnership firm.
Answer:
The demerits of Partnership firm are as follows:
(i) Non-transferability of Interest: In a partnership firm no one partner can transfer his share of interest to another outsider without the consent of all the partners.

(ii) Limited Capital: There is a limitation in raising additional capital for business. The business resources are limited to personal funds of the partners. Borrowing capacity of partners is limited. The maximum number of partners is fifty only. So financial capacity is less.

(iii) Absence of Legal Status : The Indian Partnership Act, 1932 does not give a legal status to a partnership firm. There is no independent legal status. The firm and its partners are one and the same.

(iv) Problem of Continuity : The partnership firm is not a separate legal entity. The firm is dependent oh mutual trust between partners. If a partner dies, becomes insolvent or insane, the firm has to be dissolved compulsorily whether the partners wish or not.

(v) Risk of Implied Authority : A partner works in two capacities. He has a dual role – Principal and Agent. He acts as an agent of the business. He can enter into contract with third party. However, a wrong decision can result in heavy losses, which has to be borne by all partners.

(vi) Limitations on Number of Partners : No partnership can go beyond maximum number prescribed (i.e. 50 members) by Indian Partnership Act. This restriction effects the raising of capital for further expansion.

(vii) Disputes : It is difficult to maintain harmony among partners. They may have different opinions and may not agree on certain matters. Partners may have conflicts if some partners work for self interest. This reduces team spirit and may finally lead to dissolution of the firm.

(viii) Difficulty in Admission of Partner : As consent of all partners is required to take any decision in the partnership firm, it becomes difficult to admit a new partner. This is a disadvantage to the firm as it cannot bring in new talent if the other partners are not agreeing to it.

(ix) Unlimited Liability : The liability of partners is unlimited. There is no difference between business property and personal property of partners. If business assets are not enough to meet business expenses, personal property can be used.

(x) Problem of Secrecy : Partnership firms lack complete business secrecy as some secrets may be disclosed by some partner to the competitor for personal benefit.

Question 7.
Explain the merits of Joint Stock Company.
Answer:
The merits of Joint Stock Company are as follows:
(i) Transferability of Shares : Shares of a public company can be transferred easily and freely. There is a high degree of liquidity in shares. Permission of directors or members need not be taken for buying and selling shares. This helps to attract investors to public company.

(ii) Relief in Taxation : The tax burden in the company is less. Provisions of Income Tax Act says that companies have to pay tax at flat rate. This is less than taxes paid by individuals earning very high income. If company is started in backward areas, the company gets relief in the form of tax holding.

(iii) More Scope for Expansion : The capital raising capacity of the company is high. The company has a lot of funds at its disposal. A part of the profit is also ploughed back for business. This enables growth and expansion of business.

(iv) Public Confidence : Joint Stock Company has to publish books of accounts. Which is audited by CA. Annual reports of the company have to be published. The activities of the Company are regulated by the provision of Companies Act, 2013. Therefore, the company gets public support.

(v) Limited Liability : The liability of shareholders is limited. It is to the extent of unpaid value of shares. Shareholders cannot be liable for the debts of the company. Features of limited liability attract more investors to business.

(vi) Expert Services : Joint Stock Company an appoint experts for managing their huge business operations. They appoint experts like Legal advisors, management experts, auditors, consultants, etc.

(vii) Democratic Management: Management of a company is democratic. Shareholders elect representatives called as Board of Directors. They manage business. Directors are accountable to shareholders. Policy decisions are taken by Directors but have to be approved by shareholders. The shareholders can also remove inefficient Directors.

(viii) Perpetual Succession : Joint Stock Company enjoy long and stable life. Its stability is not affected by death insolvency or retirement, of any of its members.

(ix) Professional Management : Large funds are at the disposal of the companies. Therefore, experts can be appointed in different areas of business. As good salaries can be paid, highly qualified personnel like Cost Accountants, Sales Experts, Market Experts, etc. can be appointed. Even Board of Directors have competent persons who manage business efficiently.

(x) Large Amount of Capital: A company can collect large amount of capital. There is no limit on maximum number of members. Due to features of limited liability, transferability of shares and liquidity, many investors are attracted to become shareholders of the company. Loans are also available to Joint Stock Companies.

Question 8.
Explain the features of partnership firm.
Answer:
The features of partnership firm are as follows:
(i) Lawful Business : Business undertaken by partnership should be lawful. It cannot undertake business forbidden by state. The definition of partnership also does not permit any association like club or charitable institution. Illegal business like smuggling or gambling is not allowed.

(ii) Agreement : Partnership is a result of agreement between partners. There could be a written or oral agreement between partners. A written agreement is preferred so that it can be used as a proof in the court of law if needed.

(iii) Number of Partners : Minimum two members are needed to start a partnership firm. The maximum number of members is 50.

(iv) Dissolution : A Partnership Firm can be dissolved through agreement between partners. If a partner wants, he can dissolve the firm by giving 14 days notice to the firm. The firm can be dissolved if a partner dies, becomes insolvent or insane.

(v) Sharing of Profits and Losses : The purpose of partnership is to earn profit. Its object cannot be a charitable one. Partners have to share profits and losses according to the ratio given in the agreement. If the agreement is silent about the proportion then profit and loss sharing will be equal.

(vi) Termination of Partner : A partner may resign by giving proper notice in writing to the other partners. A partner can also be removed if he has been found doing any fraudulent activities.

(vii) Joint Ownership : Each partner is the joint owner of the property of the firm. All partners are equal owners of business property. No partner can use property for personal use.

(viii) Registration : It is not compulsory as per Indian Partnership Act, 1932. However, in the State of Maharashtra, it has been made compulsory to get register with ‘Registrar of Firms’ of the state.

(ix) Joint Management: All partners have equal rights in managing the firm. Some partners take interest in management of the firm and others voluntarily surrender their management rights. However, all partners are jointly responsible for the management of the firm.

(x) Unlimited Liability : The liability of partners is unlimited joint and several. If assets of business is not sufficient to pay liabilities, personal property of partners can be used. If any one of the partners is declared insolvent, his liability will be borne by the solvent partners.

(xi) Principal and Agent : Each partner works in two capacities – Principal and Agent. A partner acts as principal when within the firm and acts as an agent while dealing with outsider. The partners play a dual role.

(xii) Restriction on Transfer of Interest : A partner cannot transfer or sell his interests in the firm to outsider without the prior consent of all other partners in the firm.

Question 9.
Explain the types of co-operative societies.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Producer’s Co-operatives : Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and increase production. These societies are of two types:
(a) Industrial Service Co-operatives : This society supply raw materials, tools and machinery to the members. The producers work independently and sell their industrial output to the co-operative society. The output of members is marketed by the society.

(b) Manufacturing Co-operatives : In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or in their houses. The society sells the output in the market and its profits is distributed among the members.

(iv) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(v) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

(vi) Housing Co-operative Societies : Housing Co-operatives are owned by residents. The society purchases land and develops it. Houses are constructed for residential purpose on ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes loans are made available from Governmental or Non-Governmental sources. The society also looks after the maintenance of its buildings.

Question 10.
Explain the demerits of Joint Stock Company.
Answer:
The demerits of Joint Stock Company are as follows:
1. Rigid Formation : The formation of a joint stock company is lengthy, difficult and time consuming. There are many legal formalities for starting business. Promoters have to prepare documents like Articles of Association, Memorandum of Association, etc. A private company has to go through two stages in formation. A public company has to go through four stages in formation.

2. Delay in Decision Making Process : In company form of organization no single individual can make a policy decision. All important decisions are taken by Board of Directors. Decision taking process is time consuming. Business may lose opportunities because of delay in decision making.

3. Lack of Secrecy : The management of companies remain in the hands of many persons. Everything is discussed in the meetings of Board of Directors. All important documents are available at registered office for inspection. Thus, there is no secrecy in business matters.

4. Excessive Government Control: A large number of rules are framed for the working of companies. The companies will have to follow rules for internal working. The government tries to regulate the working of the companies because large public money is involved. In case regulations are not complied with, large penalties are involved.

5. High Cost of Management : The management of joint stock company form of organization is costly. Services of experts like share brokers, underwriters, solicitors, bankers is needed which is costly. Highly qualified staff is needed. They are paid good salaries. Dissolution of the firm is also costly.

6. Reckless Speculation: Directors look after management of the company. They have full information about the progress of the company. They use these details for speculation in shares. This results in fluctuations in share prices. This affects public confidence.

7. No Personal Contact : There are large number of employees in the organization. There is no personal contact of owners and managers with employees. Lack of appreciation demotivates employees. Similarly, managers and directors are not able to maintain personal contacts with their customers. Thus, customers likes and dislikes are ignored.

8. No Direct Effort Reward Relationship : Joint Stock Company is owned by shareholders and managed – by Board of Directors. Board of Directors are paid for managing and profit is shared by shareholders. There is no direct relation between efforts and rewards. Directors may not take a lot of interest in the working of the company.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 3 Small Scale Industry and Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 3 Small Scale Industry and Business

1. (A) Select the Correct option and rewrite the sentence

Question 1.
The problem of ……………….. is becoming more serious in India.
(a) employment
(b) unemployment
(c) pollution
Answer:
(b) unemployment

Question 2.
India is ………………… abundant country.
(a) labour
(b) money
(c) material
Answer:
(a) labour

Question 3.
…………….. cost of power acquisition, frequent power cuts, irregular supply of power affect the productivity of SSI.
(a) Higher
(b) Lower
(c) Average
Answer:
(a) Higher

Question 4.
Before setting up business, it is essential to study prevailing ………………. environment.
(a) business
(b) natural
(c) political
Answer:
(a) business

Question 5.
Small Scale Business are ………………… intensive.
(a) money
(b) power
(c) labour
Answer:
(c) labour

Question 6.
Occurring obscured idea in mind of entrepreneur is ……………….. stage of establishing business.
(a) first
(b) second
(c) third
Answer:
(a) first

Question 7.
Small scale industries contribute nearly ……………….. to the industrial exports of the country.
(a) 40%
(b) 60%
(c) 20%
Answer:
(a) 40%

1. (B) Match the pairs

Group A	Group B
(a) Micro Manufacturing Sector	(1) Handloom
(b) Traditional Small Scale business	(2) Unskilled
(c) Registration	(3) Does not exceed Rs. 25 lakhs
(d) Labour	(4) 40% of exports of India
(e) Bicycle Parts	(5) Does not exceed Rs. 1 lakhs
	(6) DIC
	(7) Marketing Problem
	(8) Modern Small Scale business
	(9) Project Appraisal
	(10) Cost-efficiency

Answer:

Group A	Group B
(a) Micro Manufacturing Sector	(3) Does not exceed Rs. 25 lakhs
(b) Traditional Small Scale business	(1) Handloom
(c) Registration	(6) DIC
(d) Labour	(2) Unskilled
(e) Bicycle Parts	(8) Modern Small Scale business

1. (C) Give one word/phrase/term

Question 1.
A sector which is back bone of rural India.
Answer:
Small Scale Sector

Question 2.
An industry using power with less than 50 employees.
Answer:
Small Scale Industry

1. (D) State True or False

Question 1.
Small Scale industries should be developed in order to maintain, economic balance in a country.
Answer:
True

Question 2.
Majority Small Scale Industry uses advanced technology.
Answer:
False

Question 3.
Small business easily get access to low interest rates.
Answer:
False

Question 4.
Small business cannot survive in the competition.
Answer:
True

1. (E) Find the odd one

Question 1.
Coir, Handicraft, Spare Parts, Hand-loom
Answer:
Spare Parts

Question 2.
Bicycle Parts, Sericulture, Electronic Appliances, Sewing Machine
Answer:
Sericulture

1. (F) Complete the sentences

Question 1.
…………….. industries plays an important role in developing countries.
Answer:
Small Scale

Question 2.
SSI is …………….. largest industry which creates huge employment opportunities.
Answer:
second

Question 3.
SSI enjoys the advantage of ……………… cost of the produce.
Answer:
low

Question 4.
SSI are ……………… intensive.
Answer:
labour

Question 5.
SSI requires ………………….. capital as compared to large scale industries.
Answer:
less

Question 6.
SSI produces consumer goods as well as …………………. components.
Answer:
industrial

1. (G) Select the correct option

(Small Manufacturing Sector, Micro Manufacturing Sector, Micro Services Sector, Medium Manufacturing Sector, Small Services Sector)

Group A	Group B
(1) More than Rs 25 lakhs but does not exceed Rs 5 Crores	—————-
(2) —————-	Does not exceed Rs 25 lakhs
(3) More than Rs 5 crores but does not exceed Rs 10 crores	—————
(4) —————-	Does not exceed Rs 10 lakhs
(5) More than Rs 10 lakhs but does not exceed Rs 2 crores	—————-

Answer:

Group A	Group B
(1) More than Rs 25 lakhs but does not exceed Rs 5 Crores	Small Manufacturing sector
(2) Micro Manufacturing sector	Does not exceed Rs 25 lakhs
(3) More than Rs 5 crores but does not exceed Rs 10 crores	Medium Manufacturing sector
(4) Micro Services Sector	Does not exceed Rs 10 lakhs
(5) More than Rs 10 lakhs but does not exceed Rs 2 crores	Small Services Sector

1. (H) Answer in one sentences

Question 1.
What is SSI?
Answer:
Traditionally the industries in India which are organised on a Small Scale and produces goods with the help of machines, labour and power are considered as Small Scale Industries.

Question 2.
State the example of Traditional Small Scale Industry.
Answer:
Hand-loom, Handicraft, Coir, Sericulture, Khadi and Village Industries are the examples of Traditional Small Scale Industries.

Question 3.
Give examples of Modern Small Scale Industry.
Answer:
Bicycle Parts, Sewing Machines, Blades, Razors, Electric Appliances, Spare Parts are examples of Modern Small Scale Industries.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
The problem of employment has been becoming more serious in India.
Answer:
The problem of unemployment has been becoming more serious in India.

Question 2.
India is material abundant country.
Answer:
India is labour abundant country.

Question 3.
Small scale Industry uses advanced technology.
Answer:
Small scale Industry uses outdated technology.

Question 4.
SSI begin with large amount of capital.
Answer:
SSI begin with small amount of capital.

Question 5.
Business proposal is the first step in setting up of a small scale business.
Answer:
Decision of Business area is the first step in setting up of a small scale business.

1. (J) Arrange in proper order.

(a) Selection of a place
(b) Selection of a product
(c) Business proposal
(d) Selection of technology
Answer:
(a) Selection of a product
(b) Selection of a place
(c) Selection of technology
(d) Business proposal

2. Explain the following terms/concepts.

Question 1.
Small Scale Industry.
Answer:
Any Industrial Unit is regarded as Small Scale Industry, if the following condition is satisfied.
“Investment in fixed assets like plant and equipment either held on ownership terms or on lease or hire purchase should not be more than Rupees one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.”

Question 2.
Service Sector.
Answer:
According to MSMED on the basis of investment Micro Service Sector ‘does not exceed Rs 10 lakhs’, Small Service Sector, ‘more than 10 lakhs but does not exceed 2 crores’ and Medium Service Sector ‘more than Rs 2 crores but does not exceed Rs 5 crores’.

Question 3.
Micro Small Scale Business.
Answer:
Micro small scale business is classified as Manufacturing sector and Services Sector. According to MSMED, Micro Manufacturing sector does not exceed Rs 25 lakhs and Micro Services sector does not exceed Rs 10 lakhs.

Question 4.
Traditional Industrial Sector.
Answer:
Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Handloom, Handicraft, Coir, Sericulture, Khadi and Village Industries are the examples of traditional SSI Industries.

Question 5.
Modern Industrial Sector.
Answer:
Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Bicycle Parts, Sewing Machines, Blades, Razors, Electric Appliances, Spare Parts are the examples of Modern Small Scale Industries.

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

1. Mr. Ram wants to start Small Scale business of manufacturing parts of bicycle or machinery.

Question 1.
Identify the first step or stage of setting up his Small Scale business.
Answer:
Ram has to first decide whether the setup will be corporation, proprietorship or partnership. He has to identify his strength and weaknesses which can help him to decide what type of business would be most suitable. He has to study the amount of capital requirement needed to start his business. Once he gets the idea of total capital requirement he can decide what type of business to start.

Question 2.
State the different ways of raising the capital for his business.
Answer:
If Ram decides to start as proprietorship than he has to raise all the capital by himself. He can get it from his own savings or borrow money form bank, financial institutions. He can also study the different government schemes and raise capital through those schemes.

If Ram decides to start partnership firm than he will have to find a person who is ready to invest in his partnership firm as well as he has knowledge about manufacturing parts of bicycle. They can raise capital by investing their savings, borrowing through financial institutions and friends. They can also take help from various government schemes and institutions set-up to help SSI.

If Ram decides to start corporation i.e. Pvt. Ltd. Company than he can raise capital by issuing equity shares privately. He has to sell the shares to his friends and relatives. He can also study of various government schemes and raise capital through those schemes. Ram can also borrow money from bank, financial institutes, etc. He can also accept deposits from public in the further stage of his business.

Question 3.
‘Marketing is a necessary step of running a business.’ Comment on it.
Answer:
Goods are ultimately manufactured for consumers. There is competition among many manufacturers and traders to sale goods in the market.
Without selling the goods, manufacturer cannot earn profit. Profit is main motto of business.

To sale goods in market, advertising and publicity is required. To make your brand image in market, advertising with quality of goods is required. Branded goods are easily sold in the market. Marketing can be done through many ways like TV, Radio, Bill Boards, Internet, Websites, Salesman, etc.
Thus, marketing is a necessary step of running a business.

4. Answer in brief.

Question 1.
State any four points of importance of Small Scale Industry/Business.
Answer:
Importance of Small Scale Industry:
Job Opportunities
Regional Balance
Maximum use of Natural Resources
Reduces Migration

1. Job Opportunities : SSI is second largest industry which creates huge employment opportunities, because it can be operated with minimum amount of capital. SSI can be run with basic and potential skills. This is a boost for a labour surplus country like India.

2. Regional Balance : In India, all regions are not developed due to lack of industrialization. SSI can be setup with minimum amount of capital. Small industries manufactures product using simple technologies, local available resources, material and labour. Thus, they contribute significantly to the balanced development of the country.

3. Maximum use of Natural Resources : Small scale industries are labour intensive. They utilize available natural resources and raw materials from local areas. Such use of local natural resources minimizes the cost of production which result into reasonable price of goods.

4. Reduces Migration : Small Scale industries can create a large number of employment in rural area. SSI is also a best example of self-employment. Therefore, migration of people from rural to urban can be reduced or minimized.

Question 2.
Write any four advantages of Small Scale Industry.
Answer:
Advantages of Small Scale Industries:
1. Large Employment
2. Less Capital Requirement
3. Contribution to Export
4. Opportunities for Entrepreneurship

1. Large Employment: Small Scale Industries has huge potential to create employment opportunities. They are labour intensive and use more labour than other factors of production. Their gestation period is also low and can provide employment opportunities to large number of people.

2. Less Capital Requirement : SSI requires less capital as compared to large scale industries. SSI can be started by small entrepreneurs with limited capital resources.

3. Contribution to Export : Nearly 40% of the industrial exports are contributed by SSI. Product such as hosiery, knitwear, gems and jewellery, handicraft, coir products, woolen garments, processed food, chemical and allied products and a large number of engineering goods contribute substantially to India’s exports. Products produced by SSI are used in the manufacturing of products by large scale industries which are exported. It contributes directly and indirectly to exports and helps to earn valuable foreign exchange.

4. Opportunities for Entrepreneurship : Small Scale Industries provide opportunities for entrepreneurs with limited capital as it requires less capital and lower investment in technology and machines as compared to large scale enterprises. Therefore, small entrepreneurs can start small scale industries easily.

Question 3.
State any four challenges before Small Scale Industries.
Answer:
Challenges before Small scale industries:

1. Inadequate Finance
2. Problem of Raw Material
3. Labour Problem
4. Marketing Problem

1. Inadequate Finance : SSI generally begins with a small amount of capital. Many of the units in the small sector raise funds from capital market. These units frequently suffer from lack of adequate working capital.

2. Problem of Raw Material : Another major problem of Small Scale Industries is inadequate supply of raw materials. Due to that SSI have to compromise on the quantity and quality of raw material, or pay more, price for good quality of raw material.

3. Labour Problem : Small industries generally appoint unskilled and semi skilled worker on daily wages, This creates the problem of low labour productivity, higher absenteeism and poor job commitment. The wages are low due to financial limitations. This leads to labour dissatisfaction and increase the problem of labour turnover. Improper shifts and lack of job security makes employment in small industries unattractive and the talented work force does not opt for such job.

4. Marketing Problem : Marketing is a weaker part of small industries. SSI have to depend excessively on middlemen who at times exploit them by paying low prices and delayed payments. Further, direct marketing may not be feasible for small business firms as they lack the necessary infrastructure.

5. Justify the following statements.

Question 1.
Generally Small Scale Industries are sick.
Answer:

1. There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems.
2. Internal Problems are like unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernisation, etc.
3. External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc.
4. According to RBI a sick unit is that which has incurred a cash loss for one year, is likely to continue it for current year as well as following year.
5. Thus, mainly due to financial problem, industrial units are unable to sustain themselves and are called as sick units.

Question 2.
Small Scale Industry require less amount of capital.
Answer:

1. The production of Small Scale Industries is less.
2. General unskilled labours are employed.
3. As production is less raw material requirement is also less.
4. In a place like India, where capital formation is low, small business is suitable.
5. Due to small in size, such form of business can easily adapt to changing atmosphere. This promotes flexibility. It can easily change their working style without much loss as compared to large businesses.
6. Thus, SSI requires less amount of capital.

Question 3.
Small Scale Industries have problems.
Answer:
Small scale industries have to face many problems:

1. Lack of Adequate Finance : Due to small scale of production and sale, Banks and Financial Institutions are afraid to give loans.
2. Problem of Raw material : Due to inadequate finance they cannot purchase raw material at a time. Thus, the cost of raw material increases.
3. Labour Problem : Due to inadequate finance, they cannot employ skilled labour which affects the production.
4. Marketing Problem: The goods manufactured if not marketed properly can be risky as it will affect the sales,
5. Problem of Transport: Transportation cost increases the cost of the product which hampers the sale as large scale industries cost may be less.
6. Sickness : Due to financial problem industrial units are unable to sustain themselves and finally turn to sick units.
7. Thus, Small Scale Industries have problems

6. Attempt the following.

Question 1.
Explain the meaning of Small Scale Industries.
Answer:
Small Scale Industries are those industries where fixed assets i.e. plant and machinery which is owned or hired or taken on lease basis, does not exceed more than one crore.

MSMED has classified Small Scale Industries into Manufacturing sector and Services sector, and further into three categories of business i.e. Micro business, Small business and Medium business.
Subsequently over a period of time, a new definition was introduced by MSMED Act, 2006 (Micro Small and Medium Enterprises Development) is as follows
(A) Manufacturing Enterprises:

1. A micro enterprise, where the investment in plant and machinery is less than Rs 25 lakh.
2. A small enterprise, where the investment is more than Rs 25 lakh but less than Rs 5 crore.
3. A medium enterprise, where the investment in plant and machinery is more than Rs 5 crore but less than Rs 10 crore.

(B) Service Enterprises:

1. A micro enterprise, where the investment in equipment is less than Rs 10 lakh.
2. A small enterprise, where the investment in equipment is more than Rs 10 lakh but less than Rs 2 crores.
3. A mediuiri enterprise where the investment in equipment is more than Rs 2 crore but less than Rs 5 crores.
4. An industrial unit can be categorised as small business if it fulfills the above capital investment criteria.

Question 2.
State importance of small business.
Answer:
Following are the importance of Small Business:
(i) Supply of Raw Materials to Large Industries : Finished goods of Small Scale Industries is raw material – for large scale industries. E.g., head lights supplied to automobile industries. Small Scale Industries supply raw materials to large scale industries and they get easy market available to their product.

(ii) Balanced Development between Rural and Urban Areas : With the help of locally available raw materials and labour, more and more Small Scale Business can be started in rural areas. This helps to reduced regional imbalance between urban and rural areas.

(iii) Opportunities to Young Generation : Young generations by using their creative skills make product unique in the market. Small scale business gives an opportunity to youngster to show their creativity and abilities to prove themselves and achieve success in development.

(iv) Large Employment : India is second largest populated country after China, which faced problem of unskilled and semi skilled labour. Small Scale Industries operate with more labour and less capital, which can accommodate more man power to solve employment problem.

(v) Utilisation of Domestic Resources : Small farmers can start their own unit of small industry by using locally available raw materials. He can get self employment and involve his family members too.

Question 3.
Explain in brief the impact of capital, on Small Scale industries.
Answer:
Major problem faced by small scale industries is insufficient capital, which creates following difficulties with them.
(i) Borrowings of Capital from Landlords and Money Lenders : Nationalised and Co-operative banks are not ready to finance Small Scale Industries without security. Thus, they are forced to borrow from money lenders, where they have to pay very high rate of interest.

(ii) Storage of Raw material: Small Scale Industries are agro based. Raw material is available seasonally. To stock goods they required huge finance. Due to lack of finance, they run industry only in seasons.

(iii) Lack of Skilled Labour : Only unskilled and semi skilled labourer are available. Small Scale Industries cannot afford labour cost of skilled labourer which affect quality and quantity of production and profitability.

(iv) Outdated technology : Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.

(v) Weaker Marketing Skill : In todays world marketing plays an important role. Rural area is facing marketing problem due to lack of facilities and knowledge and they are exploited by middlemen too.

Question 4.
State the problem faced by Small Scale industries.
OR
Explain in detail the challenges faced by Small Scale Industries.
Answer:
Problems faced by Small Scale Industries:
(i) Outdated Technology : Traditional methods of productions are used due to lack of finance and knowledge about latest technology. This results in poor quality of production with low output.

(ii) Problems of Infrastructure: Problems of infrastructure faced by small business are power cuts, improper transport facility, problem like congestions, bottlenecks, strikes, rise in freight charges, inadequate space, bad repair of premises, unsuitable location, high rent, etc. These problems definitely affects smooth working of small business.

(iii) Underutilization of Capacity : Small Scale Industries cannot utilize optimum resources and capacity due to lack of marketing skills, lack of demand, etc. This lead to increase the cost of product and wastage of resources.

(iv) Lack of Capital: Nationalised and Co-operative banks are not ready to provide finance without securities. Owners of Small Scale Industries don’t have any option other than borrowings funds from landlords and money lenders where they have to pay very high rate of interest.

(v) Problem of Skilled Labourers : Mostly unskilled and semi skilled labourers are available to Small Scale Industries as they cannot afford the wages to highly skilled labourer. This affect quality and quantity of output which result in less price for sales.

Question 5.
Explain the role of Small Scale Industries in employment generation.
Answer:
Small Scale Industries play very important role in generation of employment as follows:

1. Small Scale Industries are Labour Intensive : There is shortage of capital with small scale industries. They are labour intensive. They use more man power than machines, they creates more opportunities for rural employment.
2. Employment to Unskilled and Semiskilled Labourer : Small Scale Industries are using old and traditional method of production where they need unskilled and semi-skilled labourer.
3. Employment of Rural Land Less Labourer : Small Scale Industries are set-up in rural areas. They provide employment to local labourers. They have potential to create opportunities to large scale employment to mass population in villages.
4. Decrease in Migration of Labourers : Migration means movement of labourers from village to city in search of job. Due to increase in small scale industries in village areas migration of labour is reduced. Labourers are getting good employment at their own villages.

7. Answer the following

Question 1.
Explain the challenges before Small business.
Answer:
Small scale business are playing very important role in development of developing countries. They faced following challenges / difficulties:
(i) Problems of Marketing : Small business organizations depend excessively on middlemen who many times exploit them by paying low price and delayed payment. Further direct marketing may not be possible for them as they lack necessary infrastructure. Major marketing problem are lack of advertising, non-branding of products, poor quality, transportation problem, local difficulties, competition, etc.

(ii) Infrastructural Problem : Problems of infrastructure faced by small business are power cuts, improper transport facility, problem like traffic congestions, bottlenecks, strikes, rise in freight charges, inadequate space, bad repair of premises, unsuitable location, high rent, etc. These problems definitely affects smooth working of small business.

(iii) Credit and Finance : Lack of finance is the major problem faced by small business. Artisans or Craftsmen running cottage industry take credits from mahajans or traders who charge large amount of interest from them. For small scale industries, institutional source of finance (e.g. banks) is also available, but the funds allocated to this sector are inadequate.

(iv) Delayed Payment: They face problem of delayed payment by large firms and Government departments.

(v) Sickness Problem: According to RBI a sick unit is that which has incurred a cash loss for one year, is likely to continue it for current year as well as following years and unit has an imbalance in financial structure. Sickness is generally seen in small business industries like cotton, jute, sugar, textile, etc. Internal causes of sickness are lack of skill labour, faulty planning, problem of recovery, etc. External causes of sickness are shortage of capital, inadequate loans, shortage of raw material, etc. However, rehabilitation of sick unit is a costly affair.

(vi) Personal Problems : Personal problems like spending long hours to work and less time with family and the rewards have not been favourable.

(vii) Shortage of Raw Material : Shortage of raw material often take place due to reasons like natural calamities, transport problem, industrial strikes, poor quality of raw material, exploitation done by traders, etc. Traders or agents who supply raw material often exploit the owner by charging higher prices. They also insist on buying finished products at lower rate. Thus, small business owners are subject to double exploitation.

(viii) Outdated Technology : Use of low-grade technical know-how and skills have resulted in low productivity in small business industries. Many units in small business make use of primitive methods of production, this leads to increase in cost of production, whereas productivity is low. Small units often do not care about the changing tastes and fashions of customers.

(ix) Underutilization of Capacity : Small business units cannot utilize optimum resources and capacity due to lack of marketing skills, lack of demand, they work below full capacity, etc. This lead to increase the cost and wastage of resources.

(x) Labour Problem : It includes highly demanding employees, absenteeism, lack of skilled workers and transportation of workers, strikes, high wage rates, inefficiency, etc.

Question 2.
Write down the benefits or advantages of small business.
Answer:
Small scale business plays very important role in the economic development of the country.
The following are the benefits or advantages of small business:
(i) Cost Savings : Small scale business used micro production method which results into quality product at low cost of production. Production cost of small business is much more less compared to large scale industries due to low cost of operation.

(ii) Adaptability : Small scale business can change themselves as per the market requirement. They can change product, line of product as per market changes, like fashions, new product, demand, etc.

(iii) Limited Capital : As small business is labour intensive they requires very small amount of capital for plant and equipments.

(iv) Low Gestation Period : To start a new business requires very short period as compared to large scale industries. Small scale business can start production of good in very short period of time and can increase the scale of production.

Labour Intensive : Small business units use less machines and more labours. Absorption of local labour helps to solve problem of absolute poverty and control inequality of income.

(vi) Opportunities to Rural Youth : New generation youth has smart creativity. With available technology and raw materials, rural youth can start their own business unit. Small business unit plays very important role in developing countries.

(vii) Upliftment of Economy : Majority of small scale business used traditional method of productions. Rural craftsman and artisans do have their own talents and skills which they have learnt from their forefathers. Such products are very much demanded in market which results in high income.

(viii) Decentralised Economy : Small scale business prevents concentration of economic power in the few hands. Income is divided equally among large number of people.

(ix) Export Earning : Small business contributes remarkable to country’s export. 40% of India’s exports are contributed by small business like textiles, handicraft, handloom, embroidery, etc.

(x) Regional Balance : There is wide gap between urban and rural India. Small scale business helps to reduce gap between developed and underdeveloped or developing areas.

Question 3.
Explain the process of establishment of Small Scale Industries.
Answer:
In todays world, youth are more attracted towards business opportunities rather than employment.
To start a small scale industries following stages to be followed:
(i) Idea to Setup a Business : This is a first step to start a small scale industry. The prospective entrepreneur with his own capacity decide the sized and type of business like sole proprietorship, partnership or corporation.

(ii) Analysis of Business Surrounding : It is necessary to understand different business surrounding and policies before starting any business. They are competitors, legal, economical, industrial, technological, etc.

(iii) Choice of Product : Entrepreneurs has to decide his sector of production i.e. Manufacturing or Service sector. After doing market survey and understanding advantages and disadvantages one should decide line of product or services.

(iv) Location for Business : Entrepreneur has to select location to start business. It plays very important role in success of business while selecting location many factors are to be taken into consideration like availability of labour, raw materials, power supply, transportation, etc.

(v) Technology Selection : An entrepreneur has to select available and suitable technology for his business. He should select technology he is familiar to use.

(vi) Project Appraisal : It means the study and assessment of a project. One should study the project very carefully from the point of view regards to economy, finance, marketing and profitability.

(vii) Capital Requirement : The entrepreneur has to plan for capital requirement and sources available for capital. It can be self finance, loan from relatives or banks.

(viii) Incorporation / Registration : It is compulsory for every small scale industry to registered with the respective Government Authorities. A printed application form is available with District Industries Centre (DIC). Entrepreneur has to duly filled the information with his signature in the form and submit to DIC.

(ix) Implementation of Resources : After registration of business entrepreneur has to start with production process:

• Financial Resources : The entrepreneur has to collect finance and make necessary arrangement for capital.
• Factor Set up : The entrepreneurs has to allocate space for various operations, purchase of machinery and tools and installation of it.
• Electric power and water supply : The entrepreneur has to calculate total electric power requirement in KW (Kilowatt) and get connection from the authority and supply for water connection.
• Appointment of staff : Small scale industries are labour, intensive. One has to appoint unskilled and semi-skilled staff as per requirement to start production.

(x) Manufacturing and Selling of Product : After assembling all financial and physical resources goods are manufactured and send to market for sale. Advertising and publicity plays very important role in marketing and selling of product.

(xi) Customer’s Feedback : Customer satisfaction is very important in business. Regular feedback from customers is helping to make qualitative changes in product.

Question 4.
Explain the importance of small business.
Answer:
Following are the importance of Small Business:
(i) Supply of Raw Materials to Large Industries : Finished goods of Small Scale Industries is raw material – for large scale industries. E.g., head lights supplied to automobile industries. Small Scale Industries supply raw materials to large scale industries and they get easy market available to their product.

(ii) Balanced Development between Rural and Urban Areas : With the help of locally available raw materials and labour, more and more Small Scale Business can be started in rural areas. This helps to reduced regional imbalance between urban and rural areas.

(iii) Opportunities to Young Generation : Young generations by using their creative skills make product unique in the market. Small scale business gives an opportunity to youngster to show their creativity and abilities to prove themselves and achieve success in development.

(iv) Large Employment : India is second largest populated country after China, which faced problem of unskilled and semi skilled labour. Small Scale Industries operate with more labour and less capital, which can accommodate more man power to solve employment problem.

(v) Utilisation of Domestic Resources : Small farmers can start their own unit of small industry by using locally available raw materials. He can get self employment and involve his family members too.

Question 5.
It is clear that the absence of capital and raw material is the main reason for the short term sickness. Explain it.
Answer:
Industrial sickness means the industry which has financial losses over period of time. Short term sickness is a temporary phenomenon.
Followings are the main capital and raw material reasons for short term sickness:
Financial / Capital:
(i) Non availability of Finance from Banks : Nationalised and Co-operative banks are not ready to finance SSI as there is less possibility of recovery of loans. Banks demand securities against loans, which is difficult to arrange for the small businessman.

(ii) Loans from Money lenders : As bank finance is difficult to raise, small businessman borrow capital from money lenders who charged very high rate of interest.

(iii) Shortage of Working Capital : Majority of small scale industries are depend on local source of raw material which is seasonal. They have to buy large quantity of raw materials to be used through out the years which needs large finance.

(iv) Unawareness of various Government Schemes : Due to lack of awareness among the owners of SSI about various Government Scheme for capital marketing, subsidies, etc. suffer capital problems.

Raw Material:
(i) Local source of raw material : Majority of small scale industries are depends on local supply of raw materials. Local suppliers of raw materials make artificial scarcity for supply of raw materials which make increase in product cost for the businessman.

(ii) Seasonal supply of raw materials : Small scale industries are using local supply of raw materials. The supply of raw material is seasonal. They don’t have huge capital to stock large quantity of raw materials due to this they have to stop production of goods after season ends and face problem of short term sickness.

(iii) Shortage of raw material : There may be short supply of raw materials due to natural calamities, transport strike, etc. affect the running of small scale industries.

(iv) Poor quality of raw material : There is no grading or standardizing of raw materials supply to small scale industry. This affect product quality and quantity.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 2 Trade Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 2 Trade

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

Question 1.
……………. is the link between producer and retailer.
(a) Consumer
(b) Wholesaler
(c) Manufacturer
Answer:
(b) Wholesaler

Question 2.
Price charged by retailers is generally ………………..
(a) higher
(b) lower
(c) fixed
Answer:
(a) higher

Question 3.
A wholesaler invests……………… capital in the business.
(a) small
(b) large
(c) less
Answer:
(b) large

Question 4.
The retailer is the …………….. link in the chain of distribution.
(a) first
(b) last
(c) second
Answer:
(b) last

Question 5.
Retailers supply information to the …………………. through wholesalers.
(a) manufacturer
(b) government
(c) consumers
Answer:
(a) manufacturer

Question 6.
Major items ……………… are chemicals, crude oil and petroleum products, edible oils, electronic goods, gold and silver, pearl and precious stone.
(a) exported by India
(b) not exported by India
(c) imported by India
Answer:
(c) imported by India

Question 7.
For customs clearance the ……………… is prepared by the exporter.
(a) carting order
(b) letter of credit
(c) shipping bill
Answer:
(c) shipping bill

Question 8.
……………… carry goods on their head in basket or containers.
(a) Hawkers
(b) Peddlers
(c) Cheap Jacks
Answer:
(b) Peddlers

Question 9.
………………… open their shops on market days i.e. on fixed days.
(a) Street Traders
(b) Market Traders
(c) Peddlers
Answer:
(b) Market Traders

Question 10.
……………… retailers deal in particular goods.
(a) General Stores
(b) Specialty Shop
(c) Second Hand Good Shops
Answer:
(b) Specialty Shop

Question 11.
………………… is known as self – service store.
(a) Departmental Store
(b) Super Market
(c) Multiple Store
Answer:
(b) Super Market

1. (B) Match the pairs

Question 1.

Group A	Group B
(a) Departmental store	(1) Carry goods on heads
(b) Market traders	(2) Uniform price
(c) General shops	(3) Business on market day
(d) One price shop	(4) Most common shop
(e) Peddlers	(5) Huge capital
	(6) Distribution through branches
	(7) Carry goods on carts
	(8) Sale used articles
	(9) Specialized goods
	(10) Authorized dealers

Answer:

Group A	Group B
(a) Departmental store	(5) Huge capital
(b) Market traders	(3) Business on market day
(c) General shops	(4) Most common shop
(d) One price shop	(2) Uniform price
(e) Peddlers	(1) Carry goods on heads

Question 2.

Group A	Group B
(a) Import trade	(1) First step in import
(b) Registration	(2) Goods not for own country
(c) Entrepot trade	(3) Buying goods from other country
(d) Letter of Credit	(4) No restrictions
(e) Large Turnover	(5) Selling goods to other country
	(6) Credit worthiness of importer
	(7) Recovery of dues
	(8) Wholesaler
	(9) Retailer
	(10) Credit worthiness of exporter

Answer:

Group A	Group B
(a) Import trade	(3) Buying goods from other country
(b) Registration	(1) First step in import
(c) Entrepot trade	(2) Goods not for own country
(d) Letter of Credit	(7) Recovery of dues
(e) Large Turnover	(8) Wholesaler

1. (C) Give one word/phrase/term

Question 1.
A person who move daily from place to place to sell goods.
Answer:
Itinerant retailer

Question 2.
The middleman between wholesaler and customer.
Answer:
Retailer

Question 3.
A retail shop which operates through branches.
Answer:
Chain stores

Question 4.
A shop where all goods are available at same price.
Answer:
One price shop

Question 5.
A retailer who display his goods on the load.
Answer:
Street traders

Question 6.
An order placed by an importer for the supply of certain goods.
Answer:
Indent

1. (D) State True or False

Question 1.
Wholesaler keeps large stock of goods.
Answer:
True

Question 2.
Wholesaler deals in small quantity.
Answer:
False

Question 3.
A retailer has no direct contact with consumers.
Answer:
False

Question 4.
Super market shops offer home delivery facilities to customer.
Answer:
False

Question 5.
Departmental store located out of the city.
Answer:
False

Question 6.
Customers cannot bargain in one price shop.
Answer:
True.

Question 7.
Letter of Credit is required for obtaining export license.
Answer:
True

Question 8.
Buying goods from other country is known as export trade.
Answer:
False

Question 9.
Maintaining high quality is necessary to sustain in export business.
Answer:
True

1. (E) Find the odd one.

Question 1.
Itinerant Retailers
General Stores, Hawkers, Cheap Jacks, Peddlers.
Answer:
General Stores

Question 2.
Large Scale Retailers
Departmental Stores, Chain Stores, Market Trader, One Price Shop.
Answer:
Market Trader

Question 3.
Small Scale Retailers
Specialty Shops, Second hand Goods Shops, Malls, Authorised Dealers.
Answer:
Malls

1. (F) Complete the sentences.

Question 1.
The original form of trade was ……………
Answer:
barter

Question 2.
Trade establishes a link between producers and …………….
Answer:
consumers

Question 3.
The wholesaler provides valuable services to manufacturers and ……………….
Answer:
retailers

Question 4.
The wholesaler purchases a large quantity of goods from the ………………..
Answer:
manufacturers

Question 5.
The wholesaler bears the risk of ……………… and market fluctuations.
Answer:
price

Question 6.
The wholesaler provides financial support to retailers by way of ………………. facility.
Answer:
credit

Question 7.
The retailer is the connecting link between the wholesaler and …………………..
Answer:
consumers

Question 8.
……………… is a large retail organization which mainly sells wide range of food and grocery items on the basis of ‘Self-service’.
Answer:
Super market

Question 9.
……………….. are retail stores owned by a single organization
Answer:
Chain store

Question 10.
The shop where the price of all products or goods are same is known as ……………..
Answer:
One price shop

Question 11.
A modern shopping mall is an ………………. term.
Answer:
American

Question 12.
The Letter of Credit is the safest method of payment in ………………. trade.
Answer:
foreign

1. (G) Select the correct option

Question 1.
Wholesaler deals in (small / large) quantity.
Answer:
Large

Question 2.
Departmental stores are located (in / out of) the city.
Answer:
in

Question 3.
Customer cannot bargain in (General stores / One Price shop).
Answer:
One price shop

Question 4.
Retailer operates in (global / local) market.
Answer:
local

Question 5.
Departmental store is a (large / small) scale retail shop.
Answer:
large

Question 6.
Supermarket shop requires (limited / large) capital.
Answer:
large

Question 7.
Chain stores are retail store owned by (many / single) organization.
Answer:
single

Question 8.
The shop where the price of all the product or goods are (different / same) is known as one price shop.
Answer:
same

1. (H) Answer in one sentence

Question 1.
What do you mean by internal trade?
Answer:
Trade carried on within the geographical boundaries of a country is called internal trade or domestic trade.

Question 2.
Who is known as hawkers?
Answer:
A trader who carries the goods on the back of animals or wheel cart for the purpose of selling is called an hawker.

Question 3.
What is the meaning of Peddlers?
Answer:
Mobile retailer who carry goods on their head or back and move from one place to another for selling are called Peddlers.

Question 4.
What do you mean by fixed shop retailers?
Answer:
Fixed shop retailers are those retailers who have a fixed place for their business.

Question 5.
What do you mean by small scale fixed retailers?
Answer:
Small scale fixed retailers are those who conduct their business operations on a small scale with variety of goods at a fixed place.

Question 6.
What do you mean by large scale fixed retailer?
Answer:
Large scale fixed retailers operate on large scale business at a fixed place.

Question 7.
What is departmental store?
Answer:
A departmental store is a large scale retail organisation situated in a central place in the city. It is divided into a number of small retail shops known as departments, selling different goods under one roof. .

Question 8.
What is meant by supermarket shop?
Answer:
It is a large scale retail organization which sells a wide variety of goods to customers on the basis of self service.

Question 9.
What do you mean by chain store?
Answer:
Chain store is a retail shop owned and controlled by a single organization located in different parts of the city, with a particular kind of goods.

Question 10.
What is one price shop?
Answer:
One price shops are shops where all articles are sold at one standard and fixed price.

Question 11.
What is a mall?
Answer:
A mall is a large enclosed shopping complex comprising of various stores business cinema theaters and restaurants.

1. (I) Correct the underlined word and rewrite the following sentences

Question 1.
When the trade activities are conduct between two or more countries, it is called as internal trade.
Answer:
When the trade activities are conduct between two or more countries, it is called as external trade.

Question 2.
Export trade refers to the purchase of goods and services from foreign country.
Answer:
Import trade refers to the purchase of goods and services from foreign country.

Question 3.
The price charged in departmental stores is comparatively less.
Answer:
The price charged in departmental stores is comparatively high.

Question 4.
Wholesaler requires less capital.
Answer:
Retailer requires less capital.

Question 5.
Tariff rates of various countries affect the internal trade.
Answer:
Tariff rates of various countries affect the external trade.

1. (J) Arrange in proper order

Question 1.
Retailer, Consumer, Producer, Wholesaler.
Answer:
Producer, Wholesaler, Retailer, Consumer.

Question 2.
International Market, Local Market, National Market, State Market.
Answer:
Local Market, State Market, National Market, International Market.

Question 3.
Import Stage, Pre-import Stage, Post-import Stage, Preliminary Stage.
Answer:
Preliminary Stage, Pre-import Stage, Import Stage, Post-import Stage.

2. Explain the following terms /concepts.

Question 1.
Wholesale Trade.
Answer:

1. When goods are purchased in large quantity from the manufacturers or producers for the purpose of resale to retailers, then it is called as wholesale trade.
2. The person doing wholesale business is called wholesaler.
3. Wholesaler acts as a link between manufacturer and retailer.

Question 2.
Retail Trade.
Answer:

1. When goods are sold in smaller quantities to the final consumers, then it is called as retail trade.
2. The person doing retail trade is called as retailer.

Question 3.
Foreign Trade.
Answer:

1. Trade carried on between two or more foreign countries is called foreign trade.
2. Foreign trade depends as political relations between two countries.
3. Procedure of foreign trade is complex, difficult and lengthy.
4. It consists of import trade and export trade.

Question 4.
Letter of Credit.
Answer:

1. A letter of credit is a guarantee issued by the importers bank that it will honour the payment upto certain amount of export bills to the bank of the exporter.
2. It is generally demanded by the exporter country.
3. It gives assurance to exporter country about its payment of goods exported.

Question 5.
One price shop.
Answer:

1. One price shop are shops where all the articles are sold at one standard and fixed price.
2. Such shops sells variety of goods of daily use.
3. Goods at such shops are sold at lower prices.
4. E.g. of goods sold at such shops are – watches, shampoos, household articles, crockery, etc.

Question 6.
Departmental Store.
Answer:

1. Departmental store is a large scale retail shop having different departments and sections for different type of goods in the same building.
2. It sells large variety of goods under one roof.
   E.g. Shopper stop.

Question 7.
General store.
Answer:

1. General store is a retail shop which deals in a wide variety of goods located in a residential locality.
2. Such store sells goods of daily needs like food grains, soaps, stationery, medicines, oils, biscuits, etc.
3. They provide home delivery to their customers.
4. They buy goods from the wholesalers or directly from the manufacturers.

Question 8.
Mall.
Answer:

1. A mall is a large enclosed shopping complex having various stores, restaurant, cinema hail and other business.
2. E.g. Phoenix Mall, Inorbit Mall, etc.
3. It is an American term in which one or move building from a complex.

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

1. Sonupant purchases his grocery material every month from nearest Nandulal grocery shop and he purchase wheat, rice and pulses in bulk for whole year from Gorhe and Son’s Market yard.

Question 1.
Who is wholesaler?
Answer:
Gorhe and Son’s Market yard.

Question 2.
Who is retailer?
Answer:
Nandulal grocery shop is the retailer.

Question 3.
Any one difference between wholesaler and retailer?
Answer:
Goods are sold to retailer for the purpose of sale by wholesaler.
Goods are sold to customer for consumption by the retailer.

2. Anurag is selling goods to Japan. Kavita is buying goods from USA where as Ganesh is buying raw material from South Africa and after processing it sells finished goods to Malaysia.

Question 1.
Who is exporter?
Answer:
Anurag is the exporter.

Question 2.
Who is importer?
Answer:
Kavita is an importer.

Question 3.
What is Entrepot Trade?
Answer:
Enterpot trade is re-exporting of the goods to another country, with or without processing or re-packaging, e.g. Ganesh buying raw materials from South Africa and processing it and selling it to Malaysia.

4. Distinguish between the following

Question 1.
Wholesaler and Retailer.
Answer:

	Wholesaler	Retailer
(1) Meaning	A person who conducts the wholesale trade is called as wholesaler.	A person who conducts retail trade is called as retailer.
(2) Capital/Finance	Wholesaler needs large amount of capital	Retailer needs small amount of capital.
(3) Link	It is a link between manufacturer and retailer.	It is a link between wholesaler and customers.
(4) Location	It is located in central market of the city.	It is located in various local markets in the city.
(5) Profit margin	Wholesaler works on less profit margin.	Retailer works on more profit margin.
(6) Sales of goods	Goods are sold to retailer for the purpose of resale.	Goods are sold to final customers for their consumption.
(7) Credit Facility	Wholesaler offers credit facility to retailers.	Retailer offers credit facility only to his regular customers.
(8) Prices	It sales goods at lower prices to retailers.	It sales goods at higher prices to customers.
(9) Specialisation	They are specialised in one or few line of goods.	They are specialised in variety of goods.
(10) Warehousing	Requires warehousing facilities as the stock of goods are on large scale.	He does not require separate warehousing due to small scale purchasing.
(11) Home Delivery	Wholesaler offers delivery of goods to retailers at their shops.	Retailer offers home delivery of goods to regular customers.

Question 2.
Itinerant Retailers and Non-Itinerant Retailers (Fixed shop retailers).
Answer:

	Itinerant Retailers	Non-Itinerant Retailers/ Fixed Shop Retailers
(1) Meaning	Itinerant retailers are those retailers who do not have a fixed places for their business.	Fixed shop retailers are those retailers who have a fixed place for their business.
(2) Capital	It requires limited capital.	It requires higher capital investment.
(3) Stock of Goods	They keep limited stock of goods.	They keep large stock of goods.
(4) Quality of Goods	They sell low quality goods.	They sell quality goods.
(5) Variety of Goods	They do not offer variety of goods to customers.	They offer variety of goods to customers.
(6) Prices	Prices of goods is lower due to absence of fixed cost.	Prices of goods is higher than itinerant retailers.
(7) Credit Facility	Credit facility is not given to customers.	Credit facility is given only to regular customers.
(8) Choice of Goods	Customers have no scope for choice of goods.	Customers have more scope for choice of goods.
(9) Door to Door Service	They offer door to door service to their customers.	They do not offer door to door services to their customers.
(10) After Sales Service	They do not provide after sales service to customers.	They provide after sales service to customers.
(11) Types of Goods	It deals in goods of daily need and more perishable nature.	It deals in all types of goods as per the needs of the customers.

Question 3.
General Stores and Specialty Stores.
Answer:

	General Stores	Speciality Stores
(1) Meaning	It is a shop which deals in wide variety of goods.	It is a shop which deals in specialised products of goods.
(2) Location	It is located in the residential areas of the city.	It is located in busy shopping centers of the city.
(3) Prices	Prices of goods are generally low.	Prices of goods are generally high.
(4) Sales	Goods are sold on cash basis as well as on credit basis.	Goods are sold on cash basis only.
(5) Variety of Products	Customers have limited choice of goods.	Customers have maximum choice in one line of goods.
(6) Types of Goods	Goods sold as per customers day to day need.	Specialised goods are sold to customers.
(7) Advertisement	Do not spend much expenses on advertisement.	Spend more expenses on advertisement due to specialisation.

Question 4.
Departmental Stores and Chain Stores.
Answer:

	Departmental Stores	Chain Stores
(1) Meaning	It is a large scale retail store having different departments and sections for different type of goods under a same roof.	It is a retail shop owned and controlled by a single organization located in different parts of the city.
(2) Variety of Goods	It deals with large variety of goods.	It deals with goods of a particular manufacturer only.
(3) Location	It is located at central place of city.	It is located in the residential area of the city.
(4) Capital	it requires large amount of capital.	It requires less amount of capital than Departmental store.
(5) Choice of Goods	It deals in the variety of goods and offers wide choice to customers.	It deals in particular product of goods and offer the wide choice to customers.
(6) Home Delivery	It provides home delivery to customers.	It do not provide home delivery to customers.
(7) Operation	Operations of departmental store are rigid in nature.	Operation of Chain Stores are flexible in nature.
(8) Motto	Motto of departmental store is to attract customers.	Motto of Chain Store is to approach the customers.
(9) Price	It generally charges high price.	It charges comparatively less price.
(10) Cost of operating	Cost of operating departmental store is high.	Cost of operating chain store is low.

Question 5.
Import Trade and Export Trade
Answer:

	Import Trade	Export Trade
(1) Meaning	It refers to buying of goods and services from foreign country.	It refers to sale of goods and services to foreign country.
(2) Person Involved	The person doing import trade is called importer.	The person doing export trade is called exporter.
(3) Example	India buying bananas from Sri Lanka.	India selling mangoes to Sri Lanka.
(4) Effect as Currency	It reduces foreign currency.	It increase foreign currency.
(5) Stages	It includes following stages: (a) Preliminary stage (b) Pre-shipment stage (c) Shipment stage (d) Post-shipment stage	It includes following stage: (a) Preliminary stage (b) Pre-import stage (c) Import stage (d) Post-import stage.

5. Answer in brief.

Question 1.
State any four feature of one price shop.
Answer:
Features of One Price Shop:

1. Location: One price shops are located in busy centers of the city such as busy trade centers, near railway stations, bus stops and other crowded places.
2. Variety of Goods: In one price shop, the customers are given wide scope to make selection of goods of their choice. However, the price is uniform but quality of the goods may be different.
3. Cash Sales : In this shop goods are sold on cash basis only. No credit facility is given to the customers. So there is no risk of bad debts.
4. Low Priced Articles: In one price shop, the goods are sold to customers for domestic use at lower prices e.g. stationery, cutlery, toys, plastic goods, etc.
5. Uniform Prices : All the articles of goods are sold in one price shop at the same price. The customers have no scope for bargain in this shop.
6. Business Policy: In one price shop, the policy of buying and selling of goods of all the shops are the same one.

Question 2.
State any four features of wholesalers to manufacturers.
Answer:
Services of Wholesalers to Manufacturers:

1. Provide Finance : Wholesaler provides advance to the manufacturers so they can do bulk production. Manufacturer can maintain continuous flow of production.
2. Collecting Order and Distribution of Goods : Wholesaler collects small orders of goods from the retailers then he collects the goods from manufacturer and distributes it to retailers.
3. Goods Sale on Large Scale : Wholesaler sells goods to the retailers on large scale on behalf of manufacturers.
4. Economy in Production : Large scale of production is made possible because production of goods is done continuously by the manufacturer.
5. Market Information : Wholesaler provides latest information of market condition to manufacturer. On the basis of this information manufacturer changes his production policies and regulates production activities.
6. Storage : The wholesaler provides storage facilities for the manufacturers product of goods. This helps them to fill up the time gap between production and consumption of goods.

Question 3.
Write any four services of retailers to consumers.
Answer:
1. Variety of Goods : Retailer keep different brands of goods which helps the customer to choose.

2. After Sales Services : After sales services are given for a particular period, which is known as guarantee period for costly and durable goods such as refrigerators, TV. etc. Such services create confidence in minds of consumers for further purchases.

3. Regular Supply of Goods : Retailer stocks the goods sufficiently which are required by the customers and customers purchases the goods whenever needed.

4. Credit Facilities : Retailers provides credit facility to customer which helps him to grow up sales and also it is convenient for the customers to purchase goods.

5. Home Delivery : Retailer provides home delivery service to the customers which helps him to maintains permanent relationship with the customers.

Question 4.
State any two types of small scale fixed shop retailer.
Answer:
Types of Small Scale Shop Retailers:
(i) General Store Retailer : These shops are found in residential areas and offers shopping convenience to the customers. They deal in wide variety of goods so there is scope for choice. They deal in almost all household articles and goods of daily use. They provide credit facilities and have personal relation with their customers. They have fixed place of business so the customers have faith and confidence in dealing with them.

(ii) Second Hand Goods Dealers : As the name indicates these shops deal in used or old goods and articles. They buy goods from individual and not from manufacturers or wholesalers. They repair or overhaul the items. They display them in their shops. Generally people from poor communities prefer to buy from these shops.

Question 5.
Explain preliminary stage of import procedure.
Answer:
Ist Stage : Preliminary Stage:
(1) Registration : In order to carry out import, the importer has to get himself registered with the authorities given below:

• Director General Foreign Trade (DGFT) in order to get an Import-Export Certificate Number.
• The Income Tax department to obtain Permanent Account Number.
• To carry out GST formalities.

(2) Negotiation or Trade enquiry : The importer must collect information from overseas suppliers regarding the goods he wants to import of a product. It contains details like-

• Price
• Delivery schedule,
• Credit period and
• Terms and conditions of sale, payment and delivery.

Question 6.
Explain post-shipment stage of export procedure.
Answer:
Post-shipment Stage:

1. Shipment Advice : On the dispatch of the goods, the exporter sends shipment advice to the importer. Along with it, he also sends the packaging list, commercial invoice and non-negotiable copy of loading.
2. Presentation of Documents : The necessary documents are presented to the bank for negotiation and realisation of export proceeds.
3. Realisation of Export incentive : Various incentive like duty drawbacks, refunds of GST if paid, etc. is given to the exporter by the concerned authorities.
4. Follow up : Exporter has to follow up and find out the buyers reaction on the goods he receives. This concludes the export procedure.

6. Justify the following statements

Question 1.
Wholesaler sells goods in large quantities.
Answer:

1. Wholesaler buys goods in large quantities from the manufacturer and sells it to the retailers according to their orders.
2. Thus, wholesaler sells goods in large quantities.

Question 2.
Wholesaler maintains price stability.
Answer:

1. A wholesaler is both a buyer and a seller.
2. He is in a position to maintain price stability by balancing supply and demand factors.
3. By suppling regular goods to the retailer, he solves the risk of shortage and price fluctuation is reduced. Thus, wholesaler maintains price stability.

Question 3.
Retailer provide home delivery of goods to customers.
Answer:

1. Retailer is a person who buys goods on smaller quantities.
2. Retailer provides home delivery of goods to customer at nominal cost or free of cost.
3. This helps them to improve relations with the customers and maintain permanent relations with the customers.
4. Thus, retailer provide home delivery of goods to customers.

Question 4.
Wholesaler performs various marketing functions.
Answer:

1. The wholesaler carries various marketing functions like warehousing, advertisings, sales promotion, etc. on behalf of the manufacturers.
2. They also perform various marketing functions like assembling, warehousing, transporting, grading, packing, advertising and financing.
3. These functions help the retailers and a manufacturers as they can concentrate on the production and selling activities.
4. Thus, wholesaler performs various marketing functions.

Question 5.
Authorized dealer do not have other product of other manufacturers.
Answer:

1. An authorized dealer only deals with one line of products from one manufacturers.
2. They do not have products of other manufacturers.
3. They promote the goods by providing window display, advertising and also having attractive schemes for selling the goods.
4. Thus, authorized dealer do not have other product of other manufacturers.

Question 6.
General stores are generally situated near residential areas.
Answer:

1. General stores are found in residential areas and offer shopping convenience to the customers.
2. They deal in wide variety of goods.
3. They deal with day to day useful goods.
4. Thus, general stores are generally situated near residential areas.

Question 7.
Departmental store has centralized management system.
Answer:

1. Departmental stores are generally established by joint stock companies.
2. Various departments which look like specialized shops are controlled and managed by single management.
3. The management of departmental store is centralized.
4. All departmental store is centralized.
5. All departments are independent but they are centrally owned managed are controlled.
6. Thus, departmental store has centralized management system.

Question 8.
Packing plays an important role in selling product in the supermarket.
Answer:

1. Packing plays an important role in selling products in the supermarket.
2. Goods are duly packed by giving details of quantity, quality, weight, price, contents, date of manufacturing and date of expiry.
3. This is helpful in handling the goods and also makes the goods more attractive and durable.
4. Thus, packing plays an important role in selling product in the supermarket.

Question 9.
Chain store sell a limited range of goods.
Answer:

1. Each branch of a chain store deals in the same commodity or in the same line of products.
2. This enables the store to give better guidelines to the customers.
3. Thus, chain store sell a limited range of goods.

Question 10.
There is no scope for bargaining in one price shop.
Answer:

1. The goods are priced at one price which is fixed.
2. There is a fixed and uniform price. ,
3. The price are fixed in advance, so there is no scope for bargaining.
4. Thus, there is no scope for bargaining in one price shop.

7. Answer the following

Question 1.
What are the main features of Wholesaler?
Answer:
(A) Meaning:

1. Wholesalers are those who engage themselves in wholesale trade.
2. It is concerned with the buying of goods in large quantities from producers and reselling the same in small quantities to the retailers.
3. Wholesaler is a connecting link between producers on one hand and retailers on the other.

(B) Definitions:
Philip Kotler “wholese,lling includes all activities involved in selling goods or services to those who buy for resale or for business use.

(C) Features of Wholesaler:

1. The wholesaler generally deals in one or few items of goods.
2. Wholesaler requires a large amount of capital to be invested in the business.
3. Wholesaler buys goods from the manufacturer in large scale.
4. Wholesaler sells the goods to retailers as per their requirement.
5. Wholesaler has direct contact with manufacturer.
6. Wholesaler is located in the same area for convenience of the retailer.
7. Wholesaler acts as a real risk bearer in the process of distribution,
8. Wholesaler performs various marketing functions.

Question 2.
Explain the services of retailers to wholesalers.
Answer:
Services of Retailers to Wholesalers:

1. Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
2. Helps to Distribute : Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
3. Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
4. Financing: Wholesaler collects order from customers and take advances from them. Then places order to manufacturer. Retailer collects sales proceeds from customers and passes it to the wholesaler and finally it reaches the manufacturer.
5. Attracts Consumers : Retailer makes an advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.
6. Provides Information: Retailer provides information to the wholesaler regarding market and demand of goods by the customers, likes and dislikes of customers, etc.
7. Connecting Link : Retailer purchases goods from wholesaler and sells it to the customer and thus act as a middleman.
8. Increase Sales : Retailers help the wholesaler to increase his sales by buying goods from him regularly and at short intervals.

Question 3.
Explain small scale fixed shop retailers.
Answer:
Small Scale Fixed Shop Retailers:
Small scale fixed retailers usually run their business operations on a small scale and deal in limited fine of goods. Such shops are run by their owners with the help of assistants. These shops are situated in residential areas.

Types of Small Scale Shop Retailers:
(i) General Stores : These shops are found in residential areas and offers shopping convenience to the customers. They deal in wide variety of goods so there is scope for choice. They deal in almost all household articles and goods of daily use. They provide credit facilities and have personal relation with their customers. They have fixed place of business so the customers have faith and confidence in dealing with them.

(ii) Second Hand Goods Shops : As the name indicates these shops deal in used or old goods and articles. They buy goods from individual and not from manufacturers or wholesalers. They repair or overhaul the items. They display them in their shops. Generally people from poor communities prefer to buy from these shops.

(iii) Authorised Dealers : These retailers have an authorized dealership of a particular manufacturer’s goods. They sell of consumers requirement goods like T.V. sets, mobile phones, washing machine, etc.

(iv) Speciality Shops : These retailers deal in particular line of goods. They keep a wide variety of items within the same line of products. They offer goods at reasonable prices. They are popular in cities and towns. They provide wide choice to customers. Normally they carry on business on cash basis.

Question 4.
Explain the services of wholesalers.
Answer:
Wholesaler provides services to:
(A) Manufacturers and (B) Retailers
(A) Services of Wholesalers to Manufacturers:

1. Finance Assistance : Wholesaler provides advance to the manufacturers, so they can do bulk production. Thus, manufacturer can maintain continuous flow of production.
2. Collecting Order and Distribution of Goods : Wholesaler collects small orders of goods from the retailers then he collects the goods from manufacturer and distributes it to retailers.
3. Large Purchase : Wholesaler purchases goods on large scale from the manufacturers and sells it to the retailers on behalf of the manufacturers.
4. Transportation: Wholesaler sometimes carry the transportation function of manufacturer by himself. So cost and time of manufacturer is saved.
5. Risk Bearing: He takes a risk of buying goods in big quantity and storing them. This may sometimes lead him to loss.
6. Provide Market Information : Wholesaler provides latest information of market condition to manufacturer. On the basis of this information manufacturer changes his production policies and regulates production activities.
7. Marketing Function: Wholesaler carries many marketing functions like warehousing, advertising, sales promotion, etc. on behalf of manufacturer.
8. Storage : The wholesaler provides storage facilities for the products manufacture by the producers. This helps them to fill up the time gap between production and consumption of goods.

(B) Services of Wholesaler to Retailers:

1. Financial Support: Wholesaler provides credit facility, discount facility and financial assistance to their retailers.
2. Market Information : Wholesaler provides market information to retailers as he has link with various manufacturers. This information is very useful to retailers for purchase of goods.
3. Risk Bearing : Retailer holds limited stock of goods and avoids the risk of spoilage of goods. Retailer get protected from increase or decrease of prices of goods and fluctuation of demand.
4. Stock of Goods : Wholesaler stores the stock of goods for retailers, then retailer supply these goods to customers as per their demands.
5. Warehousing and Transport: Wholesaler provides the facility of storing of goods as well as transport facility to retailers. They also do home delivery of goods to retailers.
6. Regular Supply : Wholesaler assures regular supply of goods to the retailers. Risk of shortage of goods and price fluctuation is reduced.
7. Sales Promotion : Wholesaler provides promotional facility to the retailer. He advertises on behalf of retailers and this helps the retailers to increase the sales.

Question 5.
Explain the different services of retailers.
Answer:
Retailers provides services to:
(A) Customers and
(B) Wholesaler

(A) Services of Retailers to Customers:
1. Variety of Goods : Retailer keep different brands of goods which helps the customer to choose.

2. After Sales Services : After sales services are given for a particular period, which is known as guarantee period for costly and durable goods such as refrigerators, TV. etc. Such services create confidence in minds of consumers for further purchases.

3. Regular Supply of Goods : Retailer stocks the goods sufficiently which are required by the customers and customers purchases the goods whenever needed.

4. Credit Facilities : Retailers provides credit facility to customer which helps him to grow up sales and also it is convenient for the customers to purchase goods.

5. Home Delivery : Retailer provides home delivery service to the customers which helps him to maintains permanent relationship with the customers.

6. Information : Retailer is a link between manufacturer and consumer. He provides valuable information from the customers to the manufacturer so that he can modify the product as per the likes and dislikes of the customers. Corpplaints regarding defects in goods, improper functioning of the product, constant break down, etc. are passed on to the manufacturers.

7. Local Convenience : Retailers are generally located near residential areas. Hence, customers can buy the goods whenever they require.

8. Improves Standard of Living : Retailers help customers to increase their standard of living by making available all the latest types of goods produced.

9. Sale of Perishable Goods : Perishable goods like milk, meat, fish, vegetables, etc. require quick distribution. Hence, retailer provides this facility as per customers requirement.

(B) Services of Retailers to Wholesaler:

1. Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
2. Helps to Distribute : Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
3. Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
4. Financing: Wholesaler collects order from customers and take advances from them. Then places order to manufacturer. Retailer collects sales proceeds from customers and passes it to the wholesaler and finally it reaches the manufacturer.
5. Attracts Consumers : Retailer makes an advertising of goods by displaying in the showroom and thus promote sales. This activity directly helps the wholesaler to sell the product.

Question 6.
Define import trade. Explain its procedure in detail.
Answer:
Import trade refers to buying of goods and services from another country or countries i.e. a foreign country. The procedure of import trade varies from one country to another country depending upon the policy implemented in that country. Import of goods and services is controlled by the government in most of the countries. India follows the following import procedure, which is divided into four stages.

[A] Ist Stage : Preliminary Stage :
(1) Registration : In order to carry out import, the importer has to get himself registered with the authorities given below:

• Director General Foreign Trade (DGFT) in order to get an Import-Export Certificate Number.
• The Income Tax department to obtain Permanent Account Number.
• To carry out GST formalities.

(2) Negotiation or Trade enquiry : The importer must collect information from overseas suppliers regarding the goods he wants to import of a product. It contains details like-

• Price
• Delivery schedule,
• Credit period and
• Terms and conditions of sale, payment and delivery.

[B] IInd Stage : Pre-import Stage :
(i) Import License / Quota Certificate : The Export Import (EXIM) Policy of our country indicates which goods need license for import and which can be imported freely. For goods that require a license, the importer should get a quota certificate and acquire the license. At the time of importing goods, the IEC number is to be mentioned.

(ii) Foreign Exchange Clearance : The exporter has to be paid in foreign exchange by the importer as he resides in a foreign country. For this the Indian currency has to be exchanged for foreign currency. This is done by Exchange Control Department of the Reserve Bank of India (RBI). The importer has to get the foreign exchange sanctioned. For this he applies in a prescribed form to a bank authorised by RBI. After scrutiny of the documents, the necessary foreign exchange is sanctioned.

(iii) Placing an Order : Once the foreign exchange clearance is obtained from RBI the importer places an import order with the exporter for supply of goods. This order contains information on all aspects relating to the goods to be imported. These include quality, quantity, size, grade, price, packing and shipping, ports of shipment, insurance, delivery schedule and modes of payment. This order is called as indent.

(iv) Letter of Credit : If the exporter agrees to a letter of credit, then the importer obtains it from his bank and forwards it to the exporter. It minimises the risk of non-payment for the exporter. At the same time, the importer should arrange for sufficient funds to be paid on delivery of the goods.

(v) Clearing and Forwarding Agent : The importer then appoints C & F agent to look after the various customs formalities and documentation work with respect to import of goods.

(vi) Shipment Advice: Once the goods are loaded on the vessel, the exporter sends a shipment advice to the importer. This document contains details about the goods, invoice number, bill of lading and name of the vessel, the port of export and date of sailing of the vessel. This will help the importer for custom clearance and unloading of goods.

[C] IIIrd Stage : Import Stage:
(1) Receipt of Document : The importer receives the documents sent by the exporter through his bank. They are as follows Bill of Lading, Certificate of Origin, Certificate of Inspection, Packing List, Commercial Invoice, etc.

(ii) Bill of Entry : The clearing and forwarding agents, then prepare a bill of entry. This bill is presented to the dock superintendent for release of goods. The bill of entry has details like number of packages, quality of good and price of goods.

(iii) Delivery Order : For taking delivery of the goods a delivery order is needed. This is obtained from the shipping company by the C & F agent. Once this is received the freight charges are paid and goods are allowed to be unloaded from the ship.

(iv) Customer Clearance : The importer has to present the Bill of Lading, Bill of Entry and Packing List to the customer authority who will certify it and give customs clearance.

[D] IVth stage : Posts Import Stage:
Various duties have to paid in order to take the goods out of port are:

1. Port Trust Dues : The clearing and forwarding agent has to make the payment of port trust dues.
2. Customer Duty : Also paid by the clearing and forwarding agent to the custom authorities.
3. Insurance Premium : Under the FOB (Free of Board) impact, the importer has to make the payment of Insurance Premium.
4. Payment of Freight: The shipping contract will lay down the amount of freight to be paid and it has to be paid by the importer for getting clearance of goods.
5. Exporters Payment: The exporter draws a Bill of Exchange on the importer according to the terms and conditions of the contract.
6. Follow Up : It is the duty of the importer to take a follow up of the goods. If there are any discrepancies in the order or goods it has to be intimated to the exporter. Thus, the procedure of importing goods comes to an end.

Question 7.
What is export trade? Explain its procedure in detail.
Answer:
Trade between two countries is called International Trade. It can be import or export trade. Export trade refers to selling of goods and services to other country or foreign countries.

Export procedure is as follows:
There are four stages which help in simplify the export procedure.
[A] Preliminary Stage : This is the first stage which includes the following steps.
(1) Registration : The exporter gets himself registered with various authorities in order to conduct export trade like-

• Director General of Foreign Trade in order to obtain Import Export Certificate Number.
• Income Tax Authority to obtain Permanent Account Number.
• Export Promotion Council (EPC) and GST authority.

(2) Appointment of Agent: The exporters are supposed to appoint an agent in the foreign country who will look after the order or book order for the exporter.

[B] Pre-shipment Stage:

1. Receipt of Order : When the exporter receives an order he has to check the details of the order. He also check the restriction of import in the importer’s country.
2. Letter of Credit: The exporter has to obtain a letter of credit from the importer, which is used to clear the foreign exchanges and other restrictions.
3. Pre-shipment Finance : The exporter has to meet his working capital needs and for that he has to obtain the pre-shipment finance from his bankers.
4. Production of goods : If the exporter is a manufacturer, then he has to produce the goods according to the order placed by the importer, otherwise he has get the necessary goods arranged from his suppliers.
5. Packaging : Packaging plays a very important role in export business. Goods have to be packed as per the requirement of the importer and it should protect the goods in transit, preserve the quality of goods and carry out promotion of goods.
6. ECGC Cover (Export Credit and Guarantee Corporation) : In order to protect the goods and cover the credit risks, the exporter must obtain an cover of ECGC. The ECGC covers the risk upto 90%, if the importer fails to make the payment.
7. GST formalities (Goods and Service Tax): All formalities regarding GST must be complied with by the exporter.
8. Marine Insurance : For exporting the goods, it is mandatory for the exporter to take a marine insurance policy for the goods exported. This insurance is under CIF (Cost,Insurance and freight) contract.
9. Clearing and Forwarding Agents (C & F agents): The exporter has to appoint a clearing and forwarding agent to carry out the necessary formalities of customs. They are also called custom house agents.

[C] Shipment Stage:
(i) Processing of Document: The exporter prepares the shipping bill and gets all the documents processed at the customs house as required for the export of good.

(ii) Examination of Goods : The clearing and forwarding agents obtain1 a document called ‘carting order’ from the Port Trust Authorities, which allows the exporter to take the goods inside the dock area.

(iii) Loading of Goods : On examination of the goods, the ‘Customs Examiner’ issues order called ‘Let Export’ order. This is given to the clearing and forwarding agent by the ‘Customers Preventative Officer’ (CPO). The goods are then loaded on the ship and the captain of the ship issue a receipt called the ‘Mates Receipt’. Then the C & F agent obtain the Bill of Lading.

[D] Post-shipment Stage:

1. Shipment Advice : On the dispatch of the goods, the exporter sends shipment advice to the importer. Along with it, he also sends the packaging list, commercial invoice and non-negotiable copy of loading.
2. Presentation of Documents : The necessary documents are presented to the bank for negotiation and realisation of export proceeds.
3. Realisation of Export incentive : Various incentive like duty drawbacks, refunds of GST if paid, etc. is given to the exporter by the concerned authorities.
4. Follow up : Exporter has to follow up and find out the buyers reaction on the goods he receives. This concludes the export procedure.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 1 Introduction of Commerce and Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 1 Introduction of Commerce and Business

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

Question 1.
A Lawyer is ……………..
(a) a professional person
(b) a businessman
(c) an employee
Answer:
(a) a professional person

Question 2.
Raw material is converted into finished product by…………….. industry.
(a) genetic
(b) extractive
(c) manufacturing
Answer:
(c) manufacturing

Question 3.
Actual buying and selling of goods is known as ………………..
(a) profession
(b) trade
(c) industry
Answer:
(b) trade

Question 4.
National level code of conduct is prepared for ……………….
(a) professionals
(b) businessmen
(c) employees
Answer:
(a) professionals

Question 5.
Construction of dams is an activity done under ……………….. industry.
(a) primary
(b) secondary
(c) tertiary
Answer:
(b) secondary

Question 6.
The problem of distance is solved by ………………..
(a)bank
(b) transport
(c) warehousing
Answer:
(b) transport

Question 7.
Commerce is a branch of ………………
(a) business
(b) industry
(c) trade
Answer:
(a) business

Question 8.
Return in business is called ………………
(a) fees
(b) salary
(c) profit
Answer:
(c) profit

Question 9.
A business unit depends upon ………………… for selling its output.
(a) industry
(b) society
(c) employees
Answer:
(b) society

Question 10.
Warehousing creates ……………… utility of goods.
(a) place
(b) time
(c) form
Answer:
(b) time

1. (B) Match the pairs

Question 1.

Group A	Group B
(a) Helping disabled person	(1) Social objective
(b) Genetic industry	(2) Foreign trade
(c) Local Currency	(3) Sericulture
(d) Solve social problems	(4) Non-economic activity
(e) Employment	(5) Internal trade
	(6) Mining
	(7) Profit
	(8) Economic activity
	(9) Business
	(10) Home trade

Answer:

Group A	Group B
(a) Helping disabled person	(4) Non-economic activity
(b) Genetic industry	(3) Sericulture
(c) Local Currency	(5) Internal trade
(d) Solve social problems	(1) Social objective
(e) Employment	(8) Economic activity

1. (C) Give one word, phrase or term

Question 1.
A regular activity concerned with production and distribution of goods and services for profits.
Answer:
Business activity

Question 2.
Human activities that are conducted for earning money.
Answer:
Economic activities

Question 3.
Buying and selling of goods against money or money’s worth.
Answer:
Trade

Question 4.
Activities that remove all the difficulties in trade.
Answer:
Auxiliaries to trade

Question 5.
The type of industries that creates immovable wealth.
Answer:
Construction industry

Question 6.
Name the business activity which is concerned with production of goods and services.
Answer:
Industry

Question 7.
Name the business activity which is concerned with distribution of goods and services.
Answer:
Commerce

Question 8.
The activity which provides mobility to men and material.
Answer:
Transport

Question 9.
An aid to trade which creates time utility.
Answer:
Warehousing

Question 10.
An occupation by which a person agrees to provide expert services for fees.
Answer:
Profession

1. (D) State True or False

Question 1.
Business is an economic activity.
Answer:
True

Question 2.
Every profession is practiced for earning money.
Answer:
True

Question 3.
Primary industries are concerned with nature.
Answer:
True

Question 4.
Trade includes commerce.
Answer:
False

Question 5.
Warehousing removes difficulty of time.
Answer:
True

Question 6.
Trade includes buying and selling of goods and services.
Answer:
True

Question 7.
Profit leads to increase in overall efficiency of the organisation.
Answer:
True

Question 8.
Plant nursery is an example of extractive industry.
Answer:
False

Question 9.
Industry creates form utility.
Answer:
True

Question 10.
Retailer is the link between manufacturer and wholesaler.
Answer:
False

1. (E) Find the odd one

Question 1.
Agriculture industry, Extractive industry, Genetic industry, Manufacturing industry.
Answer:
Manufacturing industry

Question 2.
Import trade, Export trade, Wholesale trade, Entrepot trade.
Answer:
Wholesale trade

Question 3.
Banking, Insurance, Transport, Manufacturing.
Answer:
Manufacturing

Question 4.
Tea, Milk, Coffee, Machinery.
Answer:
Machinery

1. (F) Complete the sentences

Question 1.
Economic activities are those activities which are conducted to ………………
Answer:
earn money

Question 2.
……………… Includes marketing of goods and services.
Answer:
commerce

Question 3.
Business is an ……………….. activity.
Answer:
economic

Question 4.
The basic purpose to is to ………………… earn profit.
Answer:
business

Question 5.
Professional charges …………………… in exchange of expert services.
Answer:
fees

Question 6.
……………… is the person who offers the work.
Answer:
employer

Question 7.
………………. is considered as a reward for assuming several business risks.
Answer:
profit

Question 8.
Industry creates ………………… utility.
Answer:
form

Question 9.
In ………………. trade, goods, are purchased and sold in bulk.
Answer:
wholesale

Question 10.
……………….. is the link between wholesaler arid customer.
Answer:
Retailer

1. (G) Select the correct option

Question 1.
(Export trade, Foreign trade, Wholesaler, Import Trade, Economic objective of business)

Group A	Group B
(i) Trade between different countries	—————
(ii) Purchase of goods and services from another country	————–
(iii) ————–	Selling of goods and services to foreign customer
(iv) ————–	Link between producer and retailer
(v) Spending money on Research and Development for development of business	——————–

Answer:

Group A	Group B
(i) Trade between different countries	Foreign Trade
(ii) Purchase of goods and services from another country	Import Trade
(iii) Export Trade	Selling of goods and services to foreign customer
(iv) Wholesaler	Link between producer and retailer
(v) Spending money on Research and Development for development of business	Economic objective of business.

1. (H) Answer in one sentence

Question 1.
What is an economic activity?
Answer:
Activity done for earning money is an economic activity.

Question 2.
What is a non-economic activity?
Answer:
Activities are done to satisfy human wants other than monetary demands.

Question 3.
What do you mean by wholesale trade?
Answer:
Trade conducted on large scale is wholesale trade.

Question 4.
What is the meaning of retail trade?
Answer:
Trade conducted on small scale is retail trade.

Question 5.
What do you mean by import trade?
Answer:
When the goods or services are bought from other countries, to home country it is called import trade.

Question 6.
What do you mean by export trade?
Answer:
When the goods or services are sold to other countries, form home country it is called export trade.

Question 7.
What is an entrepot trade?
Answer:
Goods brought in the country from one country and sold to some other country, it is called entrepot trade.

Question 8.
What is meant by auxiliaries to trade?
Answer:
Auxiliaries to trade are the services which help the smooth conduct of trade.

Question 9.
What is trade?
Answer:
Buying and selling of goods and services is called trade.

Question 10.
What do you mean by commerce?
Answer:
Commerce is a part of business activity which is concerned with the distribution of goods and services.

Question 11.
What is primary industry?
Answer:
Industry which depends upon nature for production is called primary industry.

Question 12.
What is secondary industry?
Answer:
Industry which depends upon primary industry for production is called secondary industry.

Question 13.
What do you mean by genetic industry?
Answer:
Genetic industry means the industry engaged in reproduction and multiplication of plants.

1. (I) Correct the underlined word and rewrite the following sentences

Question 1.
Profession can be transferred to other person.
Answer:
Profession cannot be transferred to other person.

Question 2.
Capital is required for employment.
Answer:
Capital is required for business.

Question 3.
Industry creates place utility.
Answer:
Transport creates place utility.

Question 4.
Commerce represents supply side of market.
Answer:
Industry represents supply side of market.

Question 5.
The basic purpose of business is to provide services.
Answer:
The basic purpose of business is to make profit.

Question 6.
Business is non-economic activity.
Answer:
Business is an economic activity.

Question 7.
Barter exchange is an exchange with money.
Answer:
Barter exchange is an exchange with goods.

2. Explain the following terms/concepts

Question 1.
Business.
Answer:

1. Business is one of the economic activities.
2. Business is done to earn profit.
3. It is done by individuals or organisations.
4. Business includes all those activities done for production, processing and distribution of goods.
5. Business has a risk involved.

Question 2.
Profession.
Answer:

1. Profession is a part of economic activity.
2. A person who practices profession is called a professional.
3. A professional has to acquire particular knowledge under formal education system.
4. He practices and obtain skill in his profession. E.g. Doctors, Lawyers, Chartered Accountants, Architects etc.
5. A professional gets fees for his services.

Question 3.
Employment.
Answer:

1. Employment is an economic activity.
2. A person works for others to earn his livelihood.
3. A person who works is called an employee and a person who offers work is an employer.
4. Employee gets remuneration after certain period which is called salary or wages.

Question 4.
Home Trade.
Answer:

1. Trade means buying and selling of goods and services.
2. Trade conducted within the boundaries of the country i.e. buying and selling of goods and services within the country is called home trade or internal trade.
3. Home trade is divided into two parts; Wholesale trade and retail trade.

Question 5.
Foreign Trade.
Answer:

1. Buying and selling of goods and services is called trade.
2. Trade can be conducted within the country or with other countries.
3. Trade conducted with other countries is called foreign or external trade.
4. Foreign trade is divided into three parts; they are import, export and entrepot trade.

Question 6.
Economic Activity.
Answer:

1. Human beings are engaged in various activities throughout the day.
2. Some activities are done to earn money or livelihood.
3. These activities are called economic activities.
4. Economic activities are of three types; they are business, employment and profession.
5. Because of the economic activities a person can earn for himself and his family.
6. These activities are required for the survival of a human being.

Question 7.
Non-economic Activity.
Answer:
(i) Human activities are divided into two types – economic and non-economic activities.

(ii) Non-economic activities are those which are conducted by a person to satisfy his non monetary requirements. They include personal, social, cultural, religious activities, etc. E.g. singing, playing games, gardening etc.

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

1. Jaysukh oil mills produce refined oil. The entire production is purchased by Rupesh Oil Depot, who in turn sells it to various retailers. Mrs. Prachi purchased 2kg oil from Balaji Groceries.

Question 1.
Wholesaler
Answer:
Wholesaler – Rupesh Oil Depot

Question 2.
Retailer
Answer:
Retailer – Balaji Groceries

Question 3.
Consumer
Answer:
Consumer – Mrs. Prachi

2. Mr. Pranav is a tin manufacturer in India. Mr. Jack of England sells goods to M/s Frank Corporation in North America and Mr. Williams of USA buys various goods from Brazil.

Question 1.
Who is the importer?
Answer:
Importer – M/s Frank Corporation in North America, Mr. Williams in USA

Question 2.
Who is the manufacturer?
Answer:
Manufacturer – Mr. Pranav

Question 3.
Who is the exporter?
Answer:
Exporter – Mr. Jack

4. Distinguish between the following

Question 1.
Industry and Commerce.
Answer:

	Industry	Commerce
(1) Meaning	Industry is engaged in the production of goods and services.	Commerce looks after the distribution of goods and services.
(2) Location	Industries are located in the industrial belts which are usually away from residential areas.	Infact there is no particular location of commerce. It gives its services at any location.
(3) Utility	Industries create form utility.	Commerce creates place, time and possession utility.
(4) Resources	Industries require mainly machinery, materials and man power for production	Commerce mainly works with the help of man power.
(5) Capital	Industries require huge capital. It mainly depends upon the size of industry.	Activities of commerce comparatively require less capital.
(6) Interdependence	Industries depend on commerce for the supply of raw materials and carrying finished goods to markets.	Commerce cannot function unless supported by the goods provided by the industries.
(7) Conducted by	Manufacturers	Traders or mercantile agents
(8) Classification	Industries are divided into Primary, secondary and tertiary types.	Commerce is divided into Trade and auxiliaries to trade.
(9) Market Force	Industries represent supply side of the market.	Commerce represents demand side of markets.
(10) Status	It has primary importance.	It has secondary importance.

Question 2.
Business and Commerce.
Answer:

	Business	Commerce
(1) Meaning	It is an economic activity engaged in production and distribution of goods and services.	Commerce takes care of distribution of goods and services.
(2) Concept	Business is a wider term than business.	Commerce is a narrower term than business.
(3) Part of	Business is a part of economic activity.	Commerce is a part of business.
(4) Skill	Industries require more of technical, managerial and marketing skills.	Commerce mainly require managerial and marketing skills.
(5) Classification	Business is classified into two parts industry and commerce.	Commerce is divided into two parts trade and auxiliaries to trade.
(6) Capital	It requires large capital.	It requires limited capital.
(7) Investment	Heavy investment is required.	Less investment is required.

Question 3.
Business and Profession.
Answer:

	Business	Profession
(1) Meaning	It is an economic activity where goods and services are produced and distributed.	Profession is also an economic activity under which a person uses his knowledge and provide expect services.
(2) Nature	A person invests his capital and starts business. He may or may not have proper skill or knowledge.	A professional has to take formal training before starting his profession.
(3) Special education	Business does not require special formal education though it is advisable.	Professional is required to take formal education to practice a profession.
(4) Returns	A businessman gets profit.	A professional gets fees from clients.
(5) Registration	A businessman need not register with a particular body or association.	A professional has to register under the respective body or association eg. A Lawyer has to register himself with the Bar Council of India before carrying out his profession.
(6) Capital requirement	More capital is required to run a business. Capital is brought by a businessman.	Comparatively less capital is required to carry out a profession. The required capital is brought by a professional.
(7) Code of conduct	There is no specific code of conduct for the businessmen. They are the owners so they may form the code of conduct for their organisation.	There is specific code of conduct for a professional. This code is decided by the respective association.
(8) Examples	Manufacturer of textiles, retailer, courier service provider, etc.	Doctor, Lawyer, Architect, Chartered Accountant, etc.

Question 4.
Employment and Profession.
Answer:

	Employment	Profession
(1) Meaning	Business is an economic activity, conducted to earn remuneration.	Profession is also an economic activity under which a person uses his knowledge and provide services.
(2) Nature	A person works for other person or organisation to get his livelihood.	A professional has to take formal training before starting his profession.
(3) Special education	It depends on the nature of employment. Some type of employment requires a specific type of education. Whereas in some cases any education is acceptable.	Professional is required to take formal education to practice a profession.
(4) Returns	An employee gets remuneration in the form of wages or salary.	A professional gets fees from clients.
(5) Registration	An employee does not require registering himself with specific associations.	A professional has to register under the respective body or association eg. A Lawyer has to register himself with the Bar Council of India before carrying out his profession.
(6) Capital requirement	Employee need not invest money in the business. He does not require capital.	Comparatively less capital is required to carry out a profession. The required capital is brought by a professional.
(7) Code of conduct	Employee has to follow the rules and regulations of his organisation.	There is specific code of conduct for a professional. This code is decided by the respective association.
(8) Decisionmaking	Employee has no right to take decisions in the organisations unless he is asked.	Professional can take his own decisions as he is the owner.
(9) Tenure	Every employment has a specific tenure. It means the maximum period for which an employee can remain in the employment is fixed. The employee has to retire after that period.	Professional can work throughout his life also.

5. Answer in brief

Question 1.
State any four features of profession.
Answer:
Profession is a part of economic activity. A professional acquires formal knowledge to practice profession. Following are the features of profession:
(i) Qualification : A particular qualification is required to practice a profession. A professional needs to acquire knowledge through formal education. Unless he gets a formal knowledge and training, he cannot practice profession, e.g. A Doctor cannot prescribe medicines without having a degree in medicine.

(ii) R eturns: A professional charges fees for the services rendered to the clients, The fees charged by a professional depends on different factors like his knowledge, experience, skill etc. His income is not fixed.

(iii) Capital : Professional requires capital to set up or run his practice. The amount of capital depends upon the nature of practice a professional wants to do.

(iv) Work Nature : A professional who is expert in a particular field, provides services in his field of expertise, eg. an architect will provide his services in the field of building houses.

Beside the above features, there are other features like-

1. Aim
2. Registration and Membership
3. N on transferability

Question 2.
State any two types of industries.
Answer:
Industries is a part of business. They look after the production of goods and services. Industries creates form utility. There are various types of industries. They can be broadly divided into three categories.
(i) Primary Industry :
These are the industries which depend on nature for their production. They include agriculture, mining, fishing, wood cutting etc. Primary industries are further divided into three types; agriculture industry, extractive industry and genetic industry.

(ii) Secondary Industry :
These are the industries which depend upon primary industries for their production. They mainly categorized as manufacturing industries and construction industries. Secondary industries use the raw materials of primary industries and convert them into finished products which is then sold in the market.

Question 3.
Give two types of Foreign Trade.
Answer:
Trade with other countries is called foreign trade. Foreign trade is of three types.

1. Import trade : When the goods or services are purchased from other countries it is called import trade,
2. Export trade : When the goods are sold to other countries, it is called export trade.
3. Entrepot trade : It is also called re-exporting. In this case goods are first brought from one country and again resale to other country, e.g. A buyer from India imports goods from France and exports them to Australia.

Question 4.
State any four auxiliaries to trade.
Answer:
Auxiliaries to trade are all those services which help in the smooth conduct of trade. There are different types of services which help trade. They are explained below.
(i) Warehousing: Warehousing helps to store the goods safely. There is a gap between the time of production and the time of consumption. Warehousing fills up this gap by conveniently storing the goods till they are demanded in the market. Warehousing, thus, creates time utility. Care is taken that the goods do not get damaged in the warehouse.

(ii) Advertising : Advertising is an important tool in the hands of a businessman to communicate to potential buyers. In today’s world producer/seller is situated at one place and consumers are spread over wider area. Through advertisement, producer or seller can contact the consumers. There are different mediums of advertisement, e.g. T.V., Radio, Hoardings, Print etc.

(iii) Insurance : Business is exposed to many risks. A businessman has to be careful about the risks. Some risks can be avoided, some can be minimized and some can be transferred. Insurance is an auxiliary which helps the businessman to handle the risk. Businessman can transfer some of the risks to insurance company. Insurance company, by accepting premium from the businessman, assures him to pay compensation in case of loss.

(iv) Transport: Transport is an important auxiliary to trade. Transport carries raw materials and people to place of production and brings finished goods to markets. Thus transport creates place utility. Transport can be conducted by different modes e.g. rail, road, water or air.

Beside the above features, there are other features like-

1. Banking
2. Mercantile Agents
3. Communication

Question 5.
State any four features of employment.
Answer:
Employment is an economic activity. A person works for others to earn his livelihood.
Following are the features of employment:
(i) Aim : The main aim of person accepting employment is to earn money.

(ii) Qualification : Qualifications are required depending upon the nature of employment. Some types of work require educational qualifications, some require some specific skill, some require both. But qualifications are necessary for employment.

(iii) Monetary returns : The person who accepts employments and work for the employer gets remuneration after specific intervals. Remuneration can be wages or salary. Usually wages are paid daily or weekly and salaries are paid monthly.

(iv) Capital: Capital is not required for the person who is in employment.

Question 6.
Write any four objectives of business.
Answer:
Business is done with some objectives. These can be divided as (a) Economic objectives and (b) Social objectives. Following are the Economic Objectives:

1. Earning Profit: Business is done with the main objective of earning profit. Profit is always a motivating factor for a businessman.
2. Searching New Customers : To maximize profit a business organisation has to search new customers. It is required to expand the business. It is also important to retain the old customers.
3. Best possible use of Resources : Making best use of available resources is the objective of business. This ensures avoiding of wastage and saving valuable money. This ultimately leads to increase in profit.
4. Innovation : One of the important objectives of business is to make innovations for the development of business. Therefore research and development becomes an important part of the working of any business organisation.

Question 7.
State any four features of business.
Answer:
Business is an economic activity which is done to earn profit.
Following are the features of business:
(i) An economic activity : Business is an economic activity. Because it is done to earn profit for livelihood.

(ii) Two parties : Business is mainly concerned with the production and distribution of goods and services. It means business transactions involve exchange and in any exchange two parties are involved. Thus business involves two parties.

(iii) Profit motive: Every business is done with a motive of making profit. Therefore all the activities of business revolve around profit. A businessman is not satisfied with the profit he gets, but he tries to maximize the profit either by increasing the production or by reducing the cost. He tries to find out new customers and new markets.

(iv) Production of Goods and Services : Business includes the production of goods and services. Raw materials are used and the finished goods are produced.

Question 8.
State any two types of primary industry.
Answer:
Primary industries are those industries which depend on nature for production. Primary industries are of three types which are given below.

1. Agriculture industry: Agriculture includes cultivation of land. It is an important primary sector industry.
2. Extractive industry : Extractive industry draws out the produce from natural resources like land, river or sea etc. The products extracted are usually in raw form they are converted into finished products and sold in the market.
3. Genetic industry : Genetic industries are engaged in the reproduction and multiplication of plants and animals e.g. poultry, plant nursery, etc.

6. Justify the following statements.

Question 1.
Retailer is in direct contact with ultimate consumers.
Answer:

1. Retailer in a trader operating in the chain of distribution.
2. He deals with the ultimate consumer.
3. Retailer is the last link in the chain of distribution.
4. Goods flow from the producer to consumer in the following way:
   Producer → Wholesaler → Retailer → Consumer
5. Thus, retailer comes into direct contact with the ultimate consumer.

Question 2.
Commerce is a wider term than trade.
Answer:

1. Commerce is a part of business. Business is divided into two parts; industry and commerce,
2. Commerce is concerned with the distribution of goods.
3. Commerce is divided into two parts. One is trade and the other is auxiliaries to trade.
4. Trade is concerned with buying and selling of goods and services.
5. Trade is’a part of commerce.
6. Along with trade, commerce also includes auxiliaries or services to trade.
7. These services help in the smooth running of trade.
   Thus, it clearly indicates that commerce is a wider term than trade.

Question 3.
Risk is inevitable in business activities.
Answer:

1. Every business is exposed to various risks. A businessman cannot avoid risks in the business.
2. These risks include goods remaining unsold due to changes in fashions, risks of losses due to fire or theft, damage to goods during transportation or warehousing, risks of bad debts, etc.
3. A businessman has to be prepared to handle these risks.
4. These risks cannot be totally eliminated. But they can be minimized or transferred to insurance company.
5. A businessman must be ready for the risks as they are inevitable.
6. Thus, risk is inevitable in business activities.

Question 4.
Combination of import-export trade is entrepot trade.
Answer:

1. Import, export and entrepot trade are the parts of foreign trade.
2. When the goods are purchased from other countries it is called import trade.
3. When the goods are sold to other countries it is called export trade.
4. A combination of import and export trade is called entrepot trade.
5. In case of entrepot trade goods are first purchased from one country i.e. imported and then sold to or exported to other country.
6. E.g. Indian trader purchased some computers from Japan and sold them to Sri Lanka will be included in entrepot trade.
7. Thus, entrepot trade is a combination of import and export trade.

Question 5.
Transport creates place utility.
Answer:

1. Transport is one of the important auxiliaries to trade.
2. Transport brings raw materials and people to the place of production and carries finished products to markets.
3. There are different modes of transport through it carries goods and people from one place to another. They are rail, road, water and air.
4. If goods are produced at one place, it may not have demand at that place only.
5. Transport carries them to other place where they are demanded and create place utility.
6. Thus, we can say that transport creates place utility.

Question 6.
Industrial activities take place before commerce starts its role.
Answer:

1. Industry and commerce are the two parts of business.
2. Both the parts are complimentary to each other.
3. One cannot function without other.
4. Industries look after the production of goods and services and commerce takes care of the distribution of the goods produced.
5. Obviously production of goods comes first and it is followed by distribution or selling of goods.
6. Thus, industrial activities take place before commerce starts its role.

Question 7.
Available resources should be used to its maximum.
Answer:

1. Resources are always scarce. The demand for resources is more and the availability of resources is less.
2. Similarly, resources belong to the society but the businesses use them for production and provide the finished products to the society.
3. So it is necessary to use the resources carefully.
4. Wastage of resources should be avoided.
5. Wherever possible, recycling and reusing the resources should be considered by the businesses.
6. Thus, whatever resources available should be used to its maximum.

Question 8.
Wholesalers is a link between retailer and manufacturer.
Answer:

1. Wholesaler and retailer are the important intermediaries in trade.
2. They help to bring the goods from the manufacturer to ultimate consumer.
3. Wholesaler is a trader who deals in large quantities i.e. the wholesaler purchases the goods in bulk from the manufacturer and sells it to retailer in small quantities.
4. Both the wholesalers and retailers are the part of chain of distribution, which is shown below.
   Producer → Wholesaler → Retailer → Consumer
5. Thus, it is true that wholesaler is the link between the manufacturer and retailer.

Question 9.
Business is a part of economic activities.
Answer:

1. Economic activities are those activities which are done with the intention of making money.
2. A person has to earn money for his livelihood.
3. However all economic activities are not same. They can be conducted mainly in three different ways.
   (a) Employment (b) Profession and (c) Business.
4. Business is conducted to earn profit.
5. businessman invests his own capital, takes decisions and carries out business activities.
6. He also takes risk for carrying business activities.
7. Thus, a businessman is responsible for the business activities. The profit earned is enjoyed by the businessman. So business is a part of economic activity.

Question 10.
Changing fashions is one of the important causes of business risk.
Answer:

1. Business is exposed to various kinds of risk.
2. The risks can be due to the loss of goods by fire or theft, bad debts, changes in government policies, goods remaining unsold etc.
3. Goods remaining unsold due to changes in fashion, is also an important type of risk in the business.
4. Due to this risk businessman can suffer loss.
5. However this risk is there in case of some goods only e.g. clothes, footwear, jewellery, accessories, sun glasses etc.
6. This risk is not there in case of food grains or vegetables as they are essentials and their demand remains somewhat constant.
7. Thus, changes in fashion is an important risk in the business.

7. Answer the following questions

Question 1.
What do you mean by commerce ?
Answer:
Commerce involves distribution of goods and services. Commerce is a part of business. Business is divided into two parts. They are (i) industry and (ii) commerce. Industries are concerned with the distribution of goods and commerce does the distribution of those goods in the market. Commerce helps in bringing the goods from the manufacturer to consumer by making uninterrupted flow of goods. Commerce includes main two activities – (i) Trade and (ii) Auxiliaries to trade.
(i) Trade means buying and selling of goods and services. Any buying and selling is included in trade. It can be industrial goods, consumer goods or buying and selling of services, etc.

(ii) Auxiliaries of trade are all those supportive services which help in the smooth conduct of trade. They include transport, banking, insurance, advertising, etc.

Question 2.
What is the meaning of export trade?
Answer:
Trade is divided into two parts, (i) Home trade and (ii) Foreign trade. Home trade is a trade conducted within the country where as foreign trade is trade with other countries. When the goods are purchased from and sold to other countries it is included in foreign trade.

Foreign trade is divided into three parts, (i) Import trade, (ii) Export trade and (iii) Entrepot trade. In case of export trade goods are sold to other countries e.g. A garment trader from India selling his garments to England will be included in export trade. Export trade plays an important role in the economy of any country, It helps a country to get valuable foreign exchange for the country, It also helps to enhance the reputation of the country in the foreign market.

Question 3.
State the role of auxiliaries to trade in trading activities.
Answer:
Role of auxiliaries to trade:

1. Auxiliaries to trade are all the services which help trade.
2. Trade means buying and selling of goods. However buying and selling is not possible unless it is supported by different services which will make the trade easy.
3. There are different auxiliaries or services which support buying and selling. They are : transport, warehousing, banking, insurance, advertising, etc.
4. These services help the trader as well as the buyers. They remove the hindrances in the process of distribution and ensure smooth flow of goods from the manufacturer to consumer.
5. In modern world, the manufacturers and’ consumers stay away from each other. It becomes very difficult for the manufacturer to contact the buyers and sell goods directly to them.
6. In this regard auxiliaries to trade help in establishing a link between the manufacturer or seller to consumer.

Question 4.
What are the different types of secondary industries?
Answer:
Secondary industries are those which depend upon primary industry for production. Secondary industries take raw materials from primary industries and carry out their production.
Secondary industries are of two types:
(i) Manufacturing industry : These industries are engaged in the manufacturing of various types of goods. They may be consumer goods or industrial goods. These industries convert raw materials into finished products. They make use of men, material and money for production. The examples of these industries include chemical industry, electronics industry, textile industry, paper industry.

(ii) Construction industry : These types of secondary industries are engaged in the construction activities such as dams, bridges, buildings, roads, tunnels etc. In case of other industries the goods are produced at one place but sold at different places. However in case of construction industry the construction takes place at one place only. Thus this industry creates immovable property.

Question 5.
State the types of human activities.
Answer:
There are various activities conducted by a person in a day. These activities can be divided into two parts.
Human Activities:
Economic activities
Non-economic activities

1. Economic activities : These activities are conducted to earn money. A human being requires money for livelihood. Economic activities are divided into three types.

• Business
• Profession
• Employment

Business is done to earn profit. Profession is done by acquiring special knowledge to provide services to people. A professional gets fees for the services rendered. Whereas when a person works for other person or” organisation to earn wage or salary, is called employment.

2. Non-economic activities : Non-economic activities are conducted by the person to satisfy their needs other than financial needs. These activities include cultural, social, religious, sports, health related etc.

Question 6.
Describe the scope of internal trade.
Answer:
Internal trade is a part of trade. It includes buying and selling of goods within the country. Internal trade is further divided into two parts.
(i) Wholesale Trade : Wholesale trade is a trade conducted on large scale. A wholesaler purchases goods in bulk from the manufacturer and sells them to the retailers. Wholesaler forms a large network through which he helps to distribute goods at distant places. Wholesaler is an expert trader in his field. He acts as a link between the manufacturer and the retailer.

(ii) Retail Trade : Retail trade is a trade conducted on small scale. He purchases goods from the wholesalers and sells them to the consumers in required quantities. Retailer comes into direct contact with the consumers. A retailer caters to the needs of consumers by providing them various goods in whatever quantities they want.

Question 7.
How does banking and insurance help trading?
Answer:
Commerce includes trade and auxiliaries to trade. Trade means buying and selling of goods and services. But buying and selling is not possible unless it is supported by the auxiliaries of trade. Thus auxiliaries to trade are the services which help trade. Banking and insurance are two important auxiliaries to trade.
(i) Banking : Banking services help traders in many ways. Branches of banks are spread over wider areas. Traders can open an account in bank and take the advantage of various banking services. Banks offer loans, overdrafts, transfer of money, letter of credit, foreign exchange facilities to the traders.

(ii) Insurance : There are various kinds of risks in the business. A businessman can transfer some risks on the insurance company. Goods can be destroyed by fire, theft or damaged in transportation. The businessman can transfer these risks on the insurance company. He has to pay premium to the insurance company and make a contract with the insurance company. In case of loss, insurance company pays compensation to the trader.

(iii) Thus, the risks cannot be avoided completely but can be minimized by taking insurance policy.

8. Answer the following in details.

Question 1.
Give comparative analysis of business, profession and employment.
Answer:
Business, profession and employment are the part of economic activities. These activities are conducted to earn money. However the nature of all the three activities is different. A comparative analysis of all the three activities is given below:

Question 2.
Define business. Explain its features.
Answer:
Business is a part of economic activities. Business is done to earn profit. It is done by an individual or a group of individuals. Business can be defined in many ways by thinkers. Some of them are given below:
Prof. Haney : “ Business activities are all those activities which are directed towards the production and processing of wealth”.
Prof. Pride, Huges and Kapoor: “The organised efforts of individuals to produce and sell for a profit, the goods and services that satisfy society’s needs”.

The term business also refers to the organised efforts and activities of individuals to produce and sell goods and services for profit.

Following are the features of business:
1. Continuity in Dealings : Continuity is most important in case of any business. Business requires regularity. Business activity should be carried on for a Longer time. A transaction carried on only for one time or few times cannot be called as a business activity, e.g. Sale of own old motor car cannot be considered as a business activity.

2. Uncertain Returns : The returns in any business are not fixed. They are uncertain and fluctuating. The profit of business is not fixed or guaranteed.

3. Risk Element: Business is exposed to many risks. These risks arise out of some unforeseen circumstances or wrong decisions or misjudgements of the businessman. A businessman cannot avoid the risks but he can minimize the risks by taking proper steps. Some risks can be transferred to insurance company.

4. Satisfaction : Customer is an integral part of any business activity. Without a customer there cannot be buying or selling. Businesses need customers to fulfil their monetary objective and therefore customer satisfaction is the most important part of any business activity. Modern thinking on business gives top most priority to customer satisfaction. If the customers are satisfied, there will be more sale and profit to the business.

5. Two Parties : Business includes production and distribution. Every business transaction involves exchange. For carrying out any exchange two parties are required. These two parties are the seller and the buyer. There is an oral or written agreement between the buyer and the seller to buy or sell the goods or services.

6. Economic Activity : Business is an economic activity. The intention of carrying out any business is to earn money. Business is not conducted for satisfying sentimental needs of a person. Business activity is purely monetary.

7. Profit Motive : Business is basically conducted to earn profit. Every businessman tries to get maximum profit out of the business. Profit is required for the businessman to earn the livelihood and also for the survival of the business. It is also required for the expansion of business. Thus profit plays a vital role in business.

8. Production of Goods and Services :: Business has two aspects. One is production of goods and services and distribution of them. Goods are produced by the industries. Providing of services also form an important part of business activities.

9. Exchange of Goods and Services : Goods and services are exchanged for money or money’s worth. It is a business activity as there is a seller and a buyer and they exchange goods or services for a value. In modern days almost all the transactions are carried out with money as a medium of exchange. In case of very few transactions, goods are exchanged for goods.

10. Dealings in Goods and Services : In case of business, goods or services are bought and sold. There cannot be business without the exchange of goods or services. Goods can be consumer goods or industrial goods. Services are of different types like banking, insurance etc. Services are also exchanged for a value.

Question 3.
Describe various objectives of a business.
Answer:
Business is an economic activity which includes production and distribution of goods and services. Business is done to get profit. Even though business is done with the intention of making profit, that is not the only objective of the business. There are other objectives of business.
The objectives of business are explained below:

A. Economic Objectives:
(i) Searching of New Customers : Business needs expansion. So that it can earn more profit. Therefore searching new customers or new markets becomes an important economic objective of business.

(ii) Earning Profit: Making profit always becomes the main economic objective of any business.

(iii) Best possible Use of Resources : It is the responsibility of any businessman to make proper use of available resources. It is because resources are limited and the demand for resources is more. When a businessman uses resources carefully and economically, he can save his money. It will ultimately result in the increase of profit.

(iv) Innovation : Business needs change according to current situation. New products, new processes should be found out to remain in the competition in the market. Then only a business can survive and continue making profit. Therefore making innovations is one of the economic objectives of the business.

(B) Social Objectives:
Following are the social objectives:
(i) Contributing to the Welfare of the Society : Social objectives incliude the working for the betterment of the society in general. It is the responsibility of the business to work for the welfare of the society by carrying out social welfare programmes.

(ii) Avoiding Unfair Trade Practices : Unfair trade practices are those practices which are not advisable in business. They include black marketing, hoarding, adulteration, wrong representation, false advertisements etc. Unfair trade practices make adverse effect on the business. Therefore one of the important social objective of business is to keep itself away from such practices.

(iii) Supplying Quality Products : It is the social objective of business, to provide quality products to the customers. Customer is the important part of any business. Without customers, a business cannot function. Therefore it is the responsibility of the business to provide safe, non ad ulterated, durable products to the customers.

(iv) Help to Solve Social Problems : In modern world many social problems are occurring in the society. Business is a part of the society and therefore one of the social objectives of business is to help solving the social problems.

(v) Employment Generation : A business can provide employment to many people. It becomes the social objective of the business to generate more and more employment. This will help to reduce the problem of poverty and unemployment.

(vi) Welfare of Employees : Employees is an integral part of any organisation. Business cannot function without the employees. It is therefore the responsibility of the businessman to provide better working conditions to employees. Better working conditions help to improve the productivity of the employees.

Question 4.
Explain the importance of profit in business.
Answer:
Business is such activity which involves earning profit. Any business organisation, whether small or large, production unit or service industry; works for getting maximum profit. Profit plays a very important role in business.
The role of profit is explained below:
(i) Growth and Expansion : Profit acts as an internal source of raising funds. Business can keep aside excess profit and use it for its own expansion or diversification purpose. Expansion results into more profit, which can be used for other purposes.

(ii) Research and Development : When a business gets good profits it can spend money on research and development. Research and development helps to find out the processes that help to reduce the cost of production and provide better quality products. This helps to increase the production ultimately resulting in increase in profit.

(iii) Returns to lnvestors: The owner of business needs returns on the money he has invested in the business. These returns are in the form of profit. If there are good profits, the businessman gets fair returns on his investment.

(iv) Means of Livelihood : A biusiness is mainly carried on for getting the livelihood. A result of business is profit. Thus the main role of profit is to help the businessman earn his living.

(v) Increasing Efficiency : Profit acts as a motivating factor. A businessman who is working hard for the business and gets substantial profits gets a motivation to work hard. Profit thus helps in increasing the efficiency. Similarly an employer can give good remuneration to the employees when there is good profit. This helps to increase the efficiency of the employee also.

(vi) Reward for Risks : Every business is exposed to various types of risks. A businessman has to consider these risks. As a businessman takes risks and performs business activities, buyers get the necessary commodities. The result of these business activities is profit. Profit in this case acts a reward for the risk taken by the businessman.

(vii) Survival: The most important role of profit is to help the business to carry on the activities continuously. Survival of business depends upon the continuous supply of finance. Profit enables business to continue with the uninterrupted supply of funds.

Thus profit plays a vital retie in the business. Profit is an inevitable part in every business. It helps a businessman to earn his livelihood, carry on research and development activities and most importantly survival of the business.

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 8 Memory Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 8 Memory

1A. Complete the following statements.

Question 1.
One of the important processes for storage of information in the LTM is _____________
a. perception
b. elaborative rehearsal
c. encoding
Answer:
b. elaborative rehearsal

Question 2.
Memory is a/an _____________
a. activity
b. process
c. performance
Answer:
b. process

Question 3.
_____________ memory has the shortest duration.
a. Sensory
b. Short Term
c. Long Term
Answer:
c. Long Term

Question 4.
_____________ memory is also known as Working Memory.
a. Long Term
b. Accidental
c. Short Term
Answer:
c. Short Term

Question 5.
_____________ memory has unlimited capacity.
a. Sensory
b. Short Term
c. Long Term
Answer:
a. Sensory

Question 6.
The span of Short-Term Memory is _____________
a. 5+/-2
b. 7+/-2
c. 9+/-2
Answer:
b. 7+/-2

1B. State whether the following statements are true or false. If false, correct them. If true, explain why.

Question 1.
Our sense organs also have memory.
Answer:
True
Explanation: Our sense organs have the capacity to retain the sensory impression received through the five senses for a very short time even after the source stimulus is withdrawn. It is known as sensory memory.

Question 2.
Short-term memory has an unlimited capacity.
Answer:
False
Reason: STM holds the information between 15 to 30 seconds and the capacity of STM is about seven items at a time. Fleece, has limited capacity.

Question 3.
Conscious memory of facts and events is called explicit memory.
Answer:
True
Explanation: Explicit memory is a type of LTM that contains conscious memories of facts and events.

Question 4.
Implicit memory is the memory of skills.
Answer:
True
Explanation: Implicit memory is the unconscious memory of skills and how we do things, regarding the use of objects or movements of the body.

Question 5.
When we memorize meanings, concepts, and principles, it is called episodic memory.
Answer:
False
Reason: Episodic memory is a memory of experiences and specific events which we recall step by step to reconstruct actual events.

Question 6.
The method of relearning is also known as the saving method.
Answer:
True
Explanation: In relearning method, there is a saving of time taken to learn the same material. Fleece, this method is also known as the saving method.

Question 7.
The most vivid memory is flashbulb memory.
Answer:
True
Explanation: Flashbulb memories are vivid memories of what we were doing at the time of an emotion-provoking event.

1C. Identify the odd item from the following.

Question 1.
Encoding, Storage, Tip of the tongue (TOT), Retrieval
Answer:
Tip of the tongue (TOT)

Question 2.
Keyword method, Method of Loci, Chunking, Rote learning, First letter technique
Answer:
Rote learning

Question 3.
Sensory register, STM, Flashbulb memory, LTM
Answer:
Sensory register

Question 4.
Recall, Recognition, Relearning, Trace decay
Answer:
Trace decay

1D. Match the following pairs.

Question 1.

A	B
1. A technique to improve memory	a. Short-term memory
2. The most vivid memory	b. Declarative memory
3. Working memory	c. Implicit memory
4. Most organized memory	d. Flashbulb memory
5. Playing the harmonium after a long time	e. Method of Loci
6. Writing an essay on perceptual process	f. LTM
	g. Recall method
	h. Relearning method

Answer:

A	B
1. A technique to improve memory	e. Method of Loci
2. The most vivid memory	d. Flashbulb memory
3. Working memory	a. Short-term memory
4. Most organized memory	f. LTM
5. Playing the harmonium after a long time	c. Implicit memory
6. Writing an essay on perceptual process	g. Recall method

2. Answer the following questions in around 35-40 words each.

Question 1.
Explain any one example of Flashbulb memory from your life.
Answer:

• I clearly remember the day when my grandmother passed away.
• On that day, I had an omelet for breakfast and went to college around 10.30 a.m. I attended only two lectures and then received a call about this bad news. After that, my best friend accompanied me home.

Question 2.
Explain the model of working memory proposed by Baddeley.
Answer:

• Baddeley called STM a working bench of memory.
• In the working memory model given by him, a central executive is responsible for the coordination between sub-systems of the phonological loop, episodic buffer, and the visuospatial sketchpad.
• Both phonological loop and visuospatial sketchpad have two components.

Question 3.
Explain the Tip of the tongue (TOT) phenomenon with an example.
Answer:

• Sometimes, when we search through our library of experiences to retrieve information from LTM, we cannot recall it even when we have that information on the tip of the tongue.
• e.g. you want to recall the name of your cousin’s favourite clothing brand. Instead of that name, you recall all similar names.

Question 4.
Give an example of episodic memory.
Answer:

• I remember a four-day-long celebration of my sister’s wedding.
• It started with Haldi followed by Mehendi and the sangeet ceremony. After that, there was a grand wedding followed by a reception ceremony.
• I also remember all preparations, outfits that I wore, and the food that we had in those four days.

Question 5.
What is motivated forgetting?
Answer:

• Motivated forgetting is a behaviour in which people may forget unwanted memories either consciously or unconsciously.
• It is also called a conscious coping strategy but it should not be confused with defense mechanisms.
• There are two levels of motivated forgetting, viz. Repression and Thought suppression.

3. Compare and contrast.

Question 1.
STM and LTM
Answer:

• Only the significant sensory inputs enter the Short-Term Memory (STM) through maintenance rehearsal. On the other hand, some items in STM enter the Long-Term Memory (LTM) after elaborative rehearsal which makes information meaningful and connects the same with already existing information in the LTM.
• STM holds the information between 15 to 30 seconds and the capacity of STM is about seven items at a time. Conversely, once information enters LTM, it is retained more or less permanently and the amount of information stored in LTM is unlimited.

Question 2.
Implicit Memory and Explicit Memory
Answer:

• Implicit memory is the unconscious memory of skills and how we do things while explicit memory is conscious memory of facts and events.
• Implicit memory is also known as procedural memory while explicit memory is also known as declarative memory.

Question 3.
Semantic memory and Episodic memory
Answer:

• Semantic memory is a more structured record of facts, meanings, concepts, and knowledge. On the other hand, episodic memory is a memory of experiences and specific events which we recall step by step to reconstruct the actual events.
• Semantic memories have personal context which includes vocabulary, mathematics, rules of logic while episodic memory is the memory of autobiographical events with times, places, and associated emotions.

Question 4.
Storage failure and Retrieval failure
Answer:

• In case of storage, failure acquired and encoded information is not stored properly while in case of retrieval failure, problems arise while recalling the stored information for its actual use.
• Both storage failure and retrieval failure make it difficult to use the retained information in the future.

Question 5.
Recall method and Recognition method
Answer:

• The recall method involves remembering a fact, event, or object that is not currently physically present and requires the direct uncovering of information from memory, (e.g. long essay-type answers). In the recognition method, already learned material is present and the learner has to recognize it. (e.g. MCQs).
• Recognition is relatively easier than recall. So, a score of memory by recognition method is usually more than the recall method.

4. What will you do if…

Question 1.
You have to prepare a long speech covering all the activities in your college and present at the annual function
Answer:

• I will make a list of all the activities and rehearse it a number of times so as to ensure better retention.
• I may also make a note with all points in brief which I can refer to if I forget something in the middle of a speech.

Question 2.
How will you apply ‘POWER’ to prepare for the final exam of Psychology?
Answer:

• Prepare: Before starting to study, I would prepare myself for it by setting goals. I will make myself aware of why am I studying Psychology, e.g. for acquiring good marks in the final exam.
• Organize: I will organize the study material properly and make a schedule for each chapter. I will allot less time for chapters that are easy and familiar. I may study these chapters when I am a bit tired. Conversely, I will allot more hours to chapters that are unfamiliar, complicated, or technical. I will also ensure to study these complex chapters when I am fresh.
• Work: I know that I have to work hard to achieve the goal of acquiring good marks. So, I will learn with the motive to understand and remember. I will try to associate new information with something that I have already learned.
• Evaluate: I will try to evaluate my progress by solving practice papers. It will enable me to know how much I have learned and the quality of my knowledge.
• Rethink: I will reanalyze, review, question, and challenge myself. I will also rethink whether I need to change my method of studying so as to achieve the goal of acquiring good marks in the final exam.

5. Short Notes.

Question 1.
Characteristics of Memory
Answer:

• Memory is an ability by which information is encoded, stored, and retrieved when needed.
• Three basic processes or characteristics of memory are Acquisition, Storage, and Retrieval.
• The acquisition is the process of acquiring information from our sense organs. The information acquired and encoded is stored over a period of time. In retrieval, the stored information is recalled for the purpose of its actual use.
• There are three stages of memory, viz. Sensory information store, short-term memory, and long-term memory.

Question 2.
Techniques to improve memory
Answer:
Some techniques to improve memory are as follows:

• Keyword method: In the keyword method, any two different pieces of information can be linked together. It is an effective method for remembering definitions and learning foreign language vocabulary.
• Encoding specificity: According to encoding specificity, memory is improved when information is available while learning is also available at the time to recall.
• Method of loci: It involves creating an imaginary route so that things can be remembered in a better way. e.g. steps to solve mathematical problems.
• Mnemonic devices: Mnemonics will include acronyms or first letter techniques (e.g. VIBGYOR includes colours of the rainbow). It will also include visualization. Another technique is chunking where one can place large information into small chunks.
• Practice and rehearsal: Relearning the same material a number of times lead to better retention and better recall. For small size or easy material, it is effective to optimally utilize our time and learn the entire material. For large size or difficult material, we must take breaks and learn the material in parts.
• Minimizing interference: We should not learn similar subjects together as they might interfere with each other. Also, one must take a rest for minimising such interference.
• POWER method: One can also use the POWER method for improving memory. Here, P stands for Preparation, 0 stands for Organisation, W stands for Work, E stands for Evaluation and R stands for Rethinking.

Question 3.
Motivated forgetting
Answer:

• Motivated forgetting is a behaviour in which people may forget unwanted memories either consciously or unconsciously.
• It is also called a conscious coping strategy but it should not be confused with defense mechanisms.
• There are two levels of motivated forgetting, viz. Repression and Thought suppression.
• Repression: Sigmund Freud’s Psychoanalytic model states that we subconsciously push unwanted thoughts and memories into our unconsciousness. People think that such repressed memories are completely forgotten.
• e.g. a girl who had experienced sexual abuse during childhood may completely forget about it. But she may have difficulty while forming a romantic relationship.
• Thought suppression: It is a conscious effort where we forget the memories of unwanted incidents and experiences of our lives, e.g. a person will avoid talking about his breakup.
• Thought suppression can be time-consuming and also quite difficult as such suppressed thoughts tend to reoccur, e.g. a person may try to suppress the thoughts about his ex but he may not be successful in doing so.

Question 4.
Causes of forgetting
Answer:

• Trace decay: Our memories fade out when we don’t use them for a longer period, i.e., traces of memory get decayed over time if they are not used.
• Trace distortion: Some researchers believe that memory traces are not decayed but are distorted over a period of time and forgetting occurs.
• Interference: Some researchers believe that we forget when materials that we learn one after the other interfere with each other. There are two types of interference, viz. retroactive interference and proactive interference.
• Motivated forgetting: It is a behaviour in which people may forget unwanted memories either consciously or unconsciously. There are two levels of motivated forgetting, viz. Repression and Thought suppression.

6. Answer the following questions in 150-200 words.

Question 1.
Explain the process of human memory in detail.
Answer:

• Memory is an ability by which information is encoded, stored, and retrieved when needed.
• The basic processes of memory include acquisition (encoding), storage, and retrieval.
  
• Acquisition/Encoding: Acquisition is the process of acquiring information from sense organs. Encoding is the process of transforming the information received into suitable symbols like pictures, figures, words, numbers.
• Storage: The information acquired and encoded is preserved over a period of time. The process of storage is essential for using that information in the future.
• Retrieval: It is the process of recalling the stored information for the purpose of its actual use. We tend to retrieve mobile numbers, names, etc. in our daily life.
• We can think of these processes as analogous to the functions of a computer.

Question 2.
Explain the theories of forgetting in detail.
Answer:

• Forgetting is the failure to retrieve the material from our long-term memory which we had already stored.
• Researchers have put forward various theories of forgetting. Each theory highlights different reasons behind forgetting.
• The various theories of forgetting are: Trace decay theory, Trace distortion theory, and Interference theory.
  • Trace decay: Our memories fade out when we don’t use them for a longer period, i.e., traces of memory get decayed over time if they are not used.
  • Trace distortion: Some researchers believe that memory traces are not decayed but are distorted over a period of time and forgetting occurs.
  • Interference: Some researchers believe that we forget when materials that we learn one after the other interfere with each other. There are two types of interference, viz. retroactive interference and proactive interference.

7. Arrange the following elements in concepts of memory in ascending order.

Question 1.
Elaborative rehearsal, Short Term Memory, Receiving information from the environment, Long Term Memory, Retrieval
Answer:

• Receiving information from the environment
• Short Term Memory
• Elaborative rehearsal
• Long Term Memory
• Retrieval

Activities

Activity 1 (Textbook Page No. 87)

Do you remember your first picnic at your school? Do you remember your primary school teacher? Now can you remember what food you ate last Monday? Why you can remember some incidents from the past clearly while you cannot remember some things which happened yesterday?
Answer:
We remember some incidents from the past clearly when they are a part of our long-term memory. Similarly, we cannot remember certain incidents from the recent past whey they form a part of our sensory or short-term memory.

Activity 2 (Textbook Page No. 87)

Why does this happen? 25 workers used to work in Thomas Edison’s Bulb and Phonogram unit of industries. There was a huge tree near his company. After 6 months, Edison asked his workers about the huge tree but not a single worker could give information about that tree. Why do you think this happened despite seeing the tree every day?
Answer:
I feel the none of the workers could give information about the tree near their company since it was a part of their sensory memory, i.e., they perceived the stimulus (tree) with sense organs but did not rehearse it enough for it to become a part of their long term memory.

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 7 Nervous System Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 7 Nervous System

1A. Complete the following statements with appropriate options.

Question 1.
Brain is a part of _________ nervous system.
a. central
b. peripheral
c. somatic
Answer:
a. central

Question 2.
_________ are the building blocks of the nervous system.
a. Cells
b. Neurons
c. Tissues
Answer:
b. Neurons

Question 3.
_________ nervous system prepares us for the fight or flight responses.
a. Somatic
b. Parasympathetic
c. Sympathetic
Answer:
c. Sympathetic

Question 4.
The gap between two neurons is called _________
a. synapse
b. joint
c. vacuum
Answer:
a. synapse

1B. Match the following pairs.

Question 1.

A	B
1. Thyroxin	a. Pituitary
2. Epinephrine	b. Parathyroid
3. Parathormone	c. Thyroid
4. Androgen	d. Adrenal gland
5. Somatotropin hormones	e. Salivary gland
	f. Sex glands

Answer:

A	B
1. Thyroxin	c. Thyroid
2. Epinephrine	d. Adrenal gland
3. Parathormone	b. Parathyroid
4. Androgen	f. Sex glands
5. Somatotropin hormones	a. Pituitary

1C. Identify the odd item following series of words.

Question 1.
The frontal lobe, Parietal lobe, Thalamus, Occipital lobe
Answer:
Thalamus

Question 2.
Dopamine, Serotonin, Norepinephrine, Uric acid, GABA
Answer:
Uric acid

Question 3.
Dendrite, Nucleus, Tectum, Axon, Synapse
Answer:
Tectum

Question 4.
Knee jerk, Sneezing, Thinking, Blinking of eyes
Answer:
Thinking

Question 5.
Thyroid, Sweat glands, Adrenal gland, Gonads, Pituitary gland
Answer:
Sweat glands

1D. Identify which hormones with hyposecretion or hypersecretion would lead to the following conditions.

Question 1.
Abnormal height, gigantism
Answer:
Hypersecretion – Somatotropin

Question 2.
Hyperactivity, speedy metabolism.
Answer:
Hypersecretion – Thyroxin

Question 3.
Cretinism
Answer:
Hyposecretion – Thyroxin

Question 4.
Stunted growth, dwarfism
Answer:
Hyposecretion – Somatotropin

Question 5.
Myxedema, fatigue, sluggishness, depression
Answer:
Hyposecretion – Thyroxin

Question 6.
Increased appetite, overactivity, restlessness, lack of concentration
Answer:
Hyposecretion – Insulin, and glycogen

2. Which part of the brain is involved in processing the following information?

Question 1.
Smelling a flower
Answer:
Occipital lobe

Question 2.
Maintaining balance while standing upright
Answer:
Cerebellum

Question 3.
Comprehending a speech
Answer:
Temporal Lobe

Question 4.
Memorizing a childhood experience
Answer:
Frontal lobe

Question 5.
Feeling touch
Answer:
Parietal lobe

Question 6.
Seeing a picture
Answer:
Occipital lobe

Question 7.
Feeling hungry
Answer:
Hypothalamus

Question 8.
Feeling afraid
Answer:
Amygdala

3. Answer the following questions in 35 to 40 words.

Question 1.
Explain the functions of the hypothalamus.
Answer:

• Hypothalamus controls major bodily needs i.e., primary needs of an individual like hunger, thirst, sex as well as temperature regulation, and sleep.
• It is also called the pleasure center of our body.

Question 2.
Describe the functions of each of the four lobes.
Answer:

• Frontal lobe: It controls motor actions, thinking, memory and reasoning. It has Broca’s area which helps in speech production.
• Parietal lobe: It helps in understanding information regarding skin-like touch, pressure, pain, and temperature.
• Occipital lobe: It is the visual processing center. It controls the sense of hearing, smell, and taste. It has Wernicke’s area which helps in language understanding.
• Temporal Lobe: Hearing, understanding language, memory for language take place because of the temporal lobe.

Question 3.
Explain the functions of the Amygdala and Hippocampus.
Answer:

• Amygdala: It stores emotional memories of experiences. We experience emotions, especially fear due to the amygdala.
• Hippocampus: It is the storage of long-term memories. If a person gets Alzheimer’s disease, his hippocampus is. mainly affected.

Question 4.
What is a synapse? How does a nerve impulse travel from one to another neuron?
Answer:

• A synapse is a gap between two neurons.
• The nerve impulse or neural message jumps across the synapse in order to reach the dendrite of another neuron.
• When the neural message is passing through, it excites or inhibits the neurotransmitter in it. This chemical reaction decides our reaction to various situations.

Question 5.
Which are the important parts of the hindbrain? Explain their functions.
Answer:
Important parts of the hindbrain and their functions are as follows:

• Cerebellum: It helps in maintaining body posture and body balance. It also helps in the coordination of the movements.
• Brain stem: Medulla oblongata controls the breathing rate, pulse rate, blood pressure, and digestion. Pons sends and receives information from the lower parts of the brain. It helps to transmit messages between the cerebellum and cortex.
• Reticular activation system: Its main function is to maintain wakefulness, concentration, and alertness.

Question 6.
How do endocrine glands affect our behaviour?
Answer:

• Endocrine glands secrete chemical substances called hormones.
• Hormones are like messengers that are responsible for certain behaviours or the absence of reactions.
• e.g. Thyroid gland secretes the thyroxin hormone. Its hypersecretion leads to Grave’s disease while hyposecretion results in cretinism or myxedema.

4. Write short notes.

Question 1.
Autonomic Nervous System
Answer:

• The autonomic nervous system controls the internal activities of the human body including heart rate, breathing, digestion, disposal of waste products, and toxins.
• It is divided into the sympathetic and parasympathetic nervous systems.
• The sympathetic nervous system prepares our body to face stressful and threatening situations. It prepares us for a ‘flight or fight reaction. The job of the system is just opposite to its name.
• The parasympathetic nervous system takes over when the situation becomes normal. It directs our body to store energy for emergencies.

Question 2.
Limbic System
Answer:
One of the important parts of the brain is the limbic system.

• Hippocampus, amygdala, thalamus, and hypothalamus are parts of the limbic system.
• Hippocampus is responsible for the storage of long-term memories.
• Amygdala stores emotional memories of our experiences.
• Thalamus is called a relay station of the brain. It receives all information from the body and sends it to various parts of the brain.
• Hypothalamus controls major bodily needs like hunger, thirst, sex as well as temperature regulation, and sleep.

Question 3.
Neurotransmitters
Answer:
Neurotransmitters are chemical messengers. The important neurotransmitters are:

• Acetylcholine: It is a chemical released by motor neurons of the nervous system to activate muscles.
• Dopamine: It is released by the brain. If the level of dopamine is normal, we experience happy, pleasant feelings. It also plays an important role in the motivational process.
• Norepinephrine: It increases the force of skeletal muscles, especially during fight or flight response.
• Serotonin: It plays a role mainly in cognition, reward, learning, and memory. It also controls wakefulness, sleep, hunger, thirst, and liking.
• Glutamate: It helps in learning, memory, and maintaining sugar levels.
• GABA (Gama Amino Butyric Acid): It is the chief inhibitory neurotransmitter i.e. its principal role is to reduce the excitability of neurons throughout the nervous system. If it is less, it leads to convulsions and we cannot control body movements.

Question 4.
Pituitary gland
Answer:

• The pituitary gland is one of the endocrine glands, i.e., glands that secrete chemical substances into the bloodstream.
• It is also called as master gland as it helps other glands to produce their secretions and secretes the majority of hormones.
• It consists of the anterior lobe and posterior lobe.
• Anterior lobe: It secretes somatotropin, growth hormone, and adrenocorticotropic hormone. It helps the growth of the body and aids the adrenal gland. The hormones secreted by this gland are also vital for the nourishment of foetus.
• Hypo or hypersecretion in the anterior lobe: Hyposecretion leads to dwarfism, wherein a person is very short (two-three feet tall). On the other hand, hypersecretion can lead to gigantism, wherein a person becomes very huge and is eight-nine feet tall. Hypersecretion can also result in acromegaly, wherein a person has the features of a chimpanzee.
• Posterior lobe: It secretes oxytocin (which creates a feeling of happiness), pituitrin (which helps smooth muscle functioning of the stomach), thyrotrophic follicle-stimulating luteinizing hormone (which helps in the nourishment of foetus), and endorphins (which help to create neurotransmitters).

5. Compare and contrast

Question 1.
Sympathetic nervous system and Parasympathetic nervous system
Answer:

• The sympathetic nervous system prepares our body to face stressful and threatening situations. It prepares us for a ‘flight or fight reaction. On the other hand, the parasympathetic nervous system takes over when the situation becomes normal,
• Example:
  • Situation: Suppose you are chased by a dog.
  • Sympathetic nervous system: Due to the functioning of this system, your heartbeat and palpitation increase. You also start to sweat.
  • Parasympathetic nervous system: When PNS takes over, your heart rate, palpitation, and sweating become normal. You regain a cool and composed state due to the functioning of this system.

Question 2.
Exocrine glands and Endocrine glands
Answer:

• Exocrine glands directly release their secretions into the organ or tissue while endocrine glands secrete chemical substances into the bloodstream.
• Exocrine glands have separate ducts for their secretion and so, they are also called duct glands, e.g. sweat glands and tear glands. On the other hand, endocrine glands are called ductless glands as they don’t have a separate duct. e.g. pituitary gland and thyroid gland.

6. Answer in 150-200 words.

Question 1.
Explain the functions of various parts of the human brain.
Answer:
The brain consists of three major parts, viz. hindbrain, midbrain, and forebrain. Its functions are as follows:
i. Hindbrain

• Cerebellum: It helps in maintaining body posture and balance as well as aids in the coordination of movements.
• Brain stem: Medulla oblongata controls the breathing rate, pulse rate, blood pressure, and digestion. Pons helps to transmit messages between the cerebellum and cortex.
• Reticular activation system: It is the ‘Alarm clock’ of the body. It maintains wakefulness, concentration, and alertness.

ii. Midbrain: It sends information to the upper part of the brain and controls eye movements.

iii. Forebrain

• Cerebrum: Cerebral cortex controls higher-order mental processes such as attention, perception, learning, memory. The surface of the cerebral cortex is divided into right and left hemispheres. Neurons from the right hemisphere control the left side of the body and vice versa. Left hemisphere controls language, spatial relation, and pattern recognition.
• Four lobes: Frontal lobe controls motor actions, thinking, memory and reasoning. The parietal lobe helps us in understanding information regarding skin. The occipital lobe controls our vision. The temporal lobe is responsible for hearing, understanding language, and memory for language.

Question 2.
Explain the significance of endocrine glands in human behaviour. State the functions of any five endocrine glands in detail.
Answer:

• Endocrine glands secrete vital chemical substances called hormones. There is a strong impact of hormones upon human behavior.
• Hormones are responsible for certain behaviours or the absence of reactions.
• Over (hyper) or under (hypo) secretion of hormones may lead to a variety of problems.
• e.g. Hypersecretion of insulin and glycogen hormones by the pancreas reduces blood sugar levels. It results in hyperglycemia, wherein a person lacks energy and motivation, may faint and go to coma. Conversely, in the case of hyposecretion, a person gets diabetes. He becomes quite hungry and feels very tired and restless. He also shows irritated behaviour and faces frequent and uncontrolled urination.

The functions of the five endocrine glands are as follows:

• Thyroid gland: It secretes thyroxin which maintains the rate of metabolism.
• Parathyroid gland: It secretes parathyroxin which maintains calcium as well as phosphate balance.
• Pancreas: It secretes insulin and glycogen that is responsible for maintaining blood sugar levels.
• Adrenal gland: Cortex secretes cortin or cortisone which maintains the level of water, sugar, and sodium. The medulla secretes adrenalin (which is associated with fear) and noradrenaline (which is associated with anger). Medulla plays important role in emotional excitement.
• Gonads (sex gland): Testes in males secrete androgen and testosterone. These hormones are responsible for secondary sex characteristics in males. Their voice becomes hoarse. They also get mustaches and beards. Ovaries in females secrete estrogen and progesterone. These hormones are responsible for secondary sex characteristics in females. As a result, feminine looks develop and menarche begins.

Activities

Activity 1 (Textbook Page No. 76)

Few activities are given below. Identify the system which dominates during these activities.

1. Picking up an object from the ground
2. Shivering when we sense danger
3. Feeling composed when we feel safe
4. Increase in heart rate when we sense that we are going to meet with an accident

Answer:

1. Central nervous system
2. Sympathetic nervous system
3. Parasympathetic nervous system
4. Sympathetic nervous system

Activity 2 (Textbook Page No. 80)

Think of the following actions. Which of them would be reflex actions and which of them will not be reflex actions?

• Throwing a ball in a cricket match
• Closing the eyes if someone brings a finger too close to them.
• Removing the hand when you accidentally touch a thorn.
• Immediate movement of the knee when tapped just below it.
• Touching a hot object and pulling back your hand.

Answer:
Reflex actions:

• Closing the eyes if someone brings a finger too close to them.
• Removing the hand when you accidentally touch a thorn.
• Immediate movement of the knee when tapped just below it.
• Touching a hot object and pulling back your hand.

Non-reflex actions:

• Throwing a ball in a cricket match

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 6 Stress Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 6 Stress

1A. Complete the following statements.

Question 1.
When the demand of a situation exceeds personal and social resources an individual can mobilise, it leads to __________
a. worries
b. stress
c. depression
Answer:
b. stress

Question 2.
__________ leads to boredom.
a. Eustress
b. Hypo stress
c. Distress
Answer:
b. Hypo stress

Question 3.
__________ is necessary for better performance.
a. High stress
b. Moderate stress
c. Low stress
Answer:
b. Moderate stress

Question 4.
Low level of intelligence may act as __________ stressor while facing a difficult exam.
a. internal
b. external
c. imposed
Answer:
a. internal

Question 5.
__________ results when a goal-directed activity is blocked by some obstacle.
a. Frustration
b. Anger
c. Conflict
Answer:
a. Frustration

1B. State whether the following statements are true or false. If false, correct them, If true, explain why.

Question 1.
Well-adjusted person does not experience stress at all.
Answer:
False
Reason: A well-adjusted person may experience stress and discomfort at times because the degree of adjustment changes according to the situation and time.

Question 2.
Stress can be good sometimes.
Answer:
True
Explanation: Sometimes stress can be good because we can achieve optimum performance under moderate stress.

Question 3.
Hyper stress leads to the best performance.
Answer:
False
Reason: Hyper stress does not lead to the best performance. Moreover, under the influence of hyper stress, a person may undergo panic leading to frustration.

Question 4.
Hypo stress is a bliss.
Answer:
False
Reason: Hypo stress leaves a person demotivated, unenthusiastic, bored and restless.

Question 5.
Hyper stress leads to panic and exaggerated response.
Answer:
True
Explanation: Hyper stress leads to panic and exaggerated response because it occurs under extremely pressurising situations. In such a situation, a person may also throw temper tantrums leading to frustration.

Question 6.
Conflict of motives is an internal stressor.
Answer:
True
Explanation: Conflict of motives is an internal stressor because the conflict is within the individual who has to choose between two or more equally strong and incompatible motives.

Question 7.
Approach-Avoidance conflict is extremely difficult to resolve.
Answer:
True
Explanation: Approach-Avoidance conflict is extremely difficult to resolve because an individual is attracted and repelled by the same goal which has both positive and negative values.

Question 8.
Compromise is emotion focused coping strategy.
Answer:
False
Reason: Compromise is a problem focused coping strategy.

1C. Identify the odd item from the following.

Question i.
Unchallenging job, Unemployment, Leisure, Lack of purposeful activity
Answer:
Leisure

Question ii.
Eustress, Hyper stress, Frustration, Distress, Hypo stress
Answer:
Frustration

Question iii.
Attack, Withdrawal, Defence mechanism, Compromise
Answer:
Defence mechanism

Question iv.
Withdrawal, Projection, Sublimation, Rationalisation, Displacement
Answer:
Withdrawal

1D. Match the following pairs.

Question 1.

A	B
1. Two negative goals	a) Defence mechanism
2. Problem-focused coping	b) Hypo stress
3. Vacation after sufficient work	c) Avoidance-Avoidance conflict
4. Lack of challenging work	d) Direct way of coping with stress
5. Emotion-focused coping	e) Approach-Avoidance conflict
	f) Leisure

Answer:

A	B
1. Two negative goals	c) Avoidance-Avoidance conflict
2. Problem-focused coping	a) Defence mechanism
3. Vacation after sufficient work	e) Approach-Avoidance conflict
4. Lack of challenging work	b) Hypo stress
5. Emotion-focused coping	d) Direct way of coping with stress

2. Answer the following questions in around 35-40 words each.

Question (i).
What are the ill effects of distress?
Answer:
Distress is a negative type of stress. Its ill effects are as follows:

• Our body is flooded with emergency response hormones such as adrenaline and cortisol.
• It can cause physical conditions like headaches, digestive issues, and sleep disturbances.
• It can cause psychological and emotional strains like confusion, anxiety, and depression.

Question (ii).
Explain the relationship between the level of stress and performance with the help of an appropriate diagram.
Answer:

• Everybody deals with stress in different ways.
• When stress is too less or when it exceeds the limit, it deteriorates performance.
• Optimum performance can be achieved only under moderate stress.
• This can be explained with the help of a diagram:
  

Question (iii).
Explain the internal and external stressors with examples.
Answer:

• Internal stressors: These are stressors within us and we have to deal with them ourselves, e.g. a paralyzed individual may not be able to do any work which can lead to stress.
• External stressors: These are stressors from the outside environment which result in frustration, e.g. forgetting the PIN while using an ATM machine.

Question (iv).
What are the effects of hypo stress?
Answer:
Hypo stress is an insufficient amount of stress which is caused when a person has nothing to do at all. Its effects are as follows:

• It leads to boredom.
• It causes feelings of restlessness.
• People become demotivated and unenthusiastic.

Question (v).
Why the approach-avoidance conflict is most difficult to resolve?
Answer:
Approach-Avoidance conflict is most difficult to resolve because:

• An individual is attracted and repelled by the same goal.
• There is only one goal that has both positive and negative values.
• An individual has no choice. He has to accept the consequences of his choice.

3. Compare and contrast with examples.

Question 1.
Eustress and Distress
Answer:

• Eustress means good or a positive form of stress having a beneficial effect on health, motivation, performance, and emotional well-being (Merriam Webster). Conversely, distress is a negative type of stress and is experienced when the normal routine of an individual is constantly altered and adjusted.
• e.g. After a lot of practice, Amit is ready for his football match. He will experience eustress. e.g. Ajay is fired from his job and is not able to find a job anywhere else. He will experience distress.

Question 2.
Hypo stress and Hyper stress
Answer:

• Hypo stress is an insufficient amount of stress and is caused when an individual has nothing to do at all while hyper stress is caused due to extremely pressurizing conditions.
• Hypo-stress makes an individual demotivated, unenthusiastic, and restless while in case of hyper stress, a person may panic and engage in exaggerated reactions leading to frustration and agitation.
• e.g. When one cannot use his full potential in a job, it results in hypo stress. e.g. When one is stuck in a traffic jam, has forgotten to carry important documents for the meeting, and is late to work, it results in hyper stress.

Question 3.
Emotion-focused coping and Problem-focused coping
Answer:

• In emotion-focused coping, an individual focuses on the emotions resulting from stress. On the other hand, in problem-focused coping, an individual focuses effort on the problem and accepts the reality as it is.
• e.g. Nilesh tries to avoid negative emotions by keeping his mind stable with meditation or stuff down negative emotions by fighting with others. This is emotion-focused coping, e.g. When a chef gets negative feedback about a dish he has made, he makes more efforts to improvise the dish. This is problem-focused coping.

Question 4.
Attack and Withdrawal
Answer:

• In an attack strategy, an individual directly attacks the conflict as a direct way to resolve it. On the other hand, in withdrawal strategy, an individual may indulge in beating retreat or withdraw from the goal when he cannot achieve it after putting in his best efforts.
• e.g. When an employee wants a promotion and gets negative feedback on his presentation, he tries to improvise his presentation, learns, and asks for help from his seniors to get promoted (attack), e.g. If the employee is not promoted due to flaws in his presentation, he may leave the job altogether (withdrawal).

Question 5.
Compromise and Withdrawal
Answer:

• In compromise strategy, a person readjusts the goal to the nearest possible goal when he cannot achieve the original goal due to lack of capacity. Alternatively, in withdrawal strategy, a person may indulge in beating retreat or withdraw from the goal when he cannot achieve it after putting in his best efforts.
• e.g. An individual who wanted to become an orthopedic surgeon but could not manage to get admission. So, he took up physiotherapy as a career (compromise), e.g. On not getting admission, the individual may give up the field of medicine and his dream of becoming a doctor and pursue something else (withdrawal).

Question 6.
Projection and Rationalization
Answer:

• Projection involves the individual attributing his own thoughts, feelings, and motives to another person while rationalization occurs when a person attempts to explain or create excuses for his failure. By doing so, the individual avoids accepting the true cause of his failure.
• e.g. when a student has not studied for the exam, he may say that the questions were out of the syllabus (projection), e.g. when a person cannot afford a car, he says that cars are not environment friendly (rationalization).

4(1). What are the possible consequences?

Question (a).
Mehul is sufficiently prepared for his exams but feels tremendously stressed.
Answer:

• It is possible that Mehul might panic and go blank while writing the paper.
• So, Mehul should be confident about what he has studied and hope that he does well in the exam.

Question (b).
Sujata has nothing to do as her husband is a multimillionaire, nor does she have any hobby.
Answer:

• Sujata is facing hypo-stress as she has nothing to do at all. It is possible that she feels very bored, demotivated, unenthusiastic, and restless.
• In order to feel good about herself, she should pursue something she likes and diverts her mind.

Question (c).
Kalpesh sets his goals similar to his top ranker brother, without considering his ability.
Answer:

• Kalpesh will feel very stressed if he does not have the level of intelligence or ability required to meet the goals. It would lead to anger and frustration.
• There is also a possibility that he would feel extremely demotivated and leave the goal permanently.

Question (d).
Mohsin resorts to blaming others every time he fails.
Answer:

• Mohsin is using the defense mechanism called projection to protect his ego from shattering. But at some point, he will have to face the reality.
• At such a point in time, his ego would no longer be protected and may lead to mental health problems.

4(2). Identify the defense mechanism used in each of the following examples.

Question (a).
Rahul who is interested in football was not selected for the college football team. He says he never wanted to be a part of the college football team.
Answer:
Displacement

Question (b).
Vipasha comes from an extremely poor family. She sleeps into imagining herself driving her own car.
Answer:
Sublimation

Question (c).
Arnav got a scolding by his teacher and he could not answer back. After coming home, he started beating his younger brother for no reason.
Answer:
Daydreaming

Question (d).
Ajay loved a girl who turned down his proposal. Later he became a successful composer.
Answer:
Rationalization

4(3). Identify the conflict of motive that is experienced by the person in the following situation.

Question (a).
Rashmi has got a promotion in her company and so has to go abroad. She wants to take this opportunity but at the same time, she is not willing to leave her parents.
Answer:
Approach – Avoidance conflict

Question (b).
Yogesh has got selected by two reputed companies at the same time and both are his dream offers.
Answer:
Approach – Approach conflict

Question (c).
Julius doesn’t want to go to a wedding ceremony with his family as it’s too boring there but doesn’t want to stay alone at the same time.
Answer:
Avoidance – Avoidance conflict

Question (d).
Shanaya is very conscious about her figure, but she is also very tempted to eat sweets.
Answer:
Approach – Avoidance conflict

Question (e).
Vishal has got the invitation from his school friends for a reunion party on the same day as his fresher’s party in his college.
Answer:
Double Approach – Avoidance conflict

5. Write short notes in 35-40 words each.

Question 1.
Types of stress
Answer:

• Hypo stress: It is caused when one has nothing to do at all.
• Hyper stress: It is caused due to extremely pressurizing conditions.
• Eustress: It is a positive form of stress.
• Distress: It is a negative type of stress. Two types of distress are:
  • Acute distress: Intense and short-term
  • Chronic distress: Long-lasting and recurrent

Question 2.
Relationship between stress level and performance
Answer:

• When stress is too little or when it exceeds the limits, it deteriorates performance.
• Optimum performance can be achieved only under moderate stress.

Question 3.
Direct ways to cope with stress
Answer:

• Attack: An individual directly attacks the conflict to resolve it.
• Compromise: If a person cannot achieve the goal, he may readjust the goal to the nearest possible goal.
• Withdrawal: When a person cannot achieve a goal after putting in their best efforts, he may withdraw from the goal altogether.

Question 4.
Defense mechanisms
Answer:

• Defense mechanisms are an indirect way to combat stress.
• They are unconscious strategies used to protect the ego from breaking due to unacceptable/harsh reality. It functions as a shock absorber.

6. Answer the following questions in 150-200 words each.

Question 1.
Give the definition of stress and explain different types of stress.
Answer:
According to Richard Lazarus, ‘stress is a feeling experienced when an individual feels that the demands exceed the personal and social resources an individual is able to mobilize’.
The types of stress are as follows:

• Hypo stress: It is an insufficient amount of stress and may be due to work under load. When people have nothing to do, they get bored and if this feeling persists for a longer time, it results in hypo-stress. People with hypo-stress are demotivated, unenthusiastic, and restless.
• Hyper stress: It is a result of extremely pressurizing conditions. Due to hyper stress, a person may experience panic attacks and may engage in exaggerated reactions like throwing temper tantrums. It leads to frustration and agitation.
• Eustress: It is a good form of stress which has a positive effect on health, motivation, performance, and emotional well-being. It is a state when an individual is excited, determined, inspired, energized, and ready to go. While experiencing eustress, the body is temporarily and intensely flooded with hormones like oxytocin and dopamine.
• Distress: It is a negative type of stress. An individual experiences it when the normal routine is constantly adjusted and altered. While experiencing distress, our body is flooded with emergency response hormones like adrenaline and cortisol. Distress is divided into two types:
  • Acute distress: It is intense, short-term negative stress.
  • Chronic distress: It is a long-lasting, recurrent negative stress.

Question 2.
What is meant by conflict of motives? Explain the different types of conflicts with examples. Illustrate your answer with appropriate figures.
Answer:
Conflict of motives refers to the clash between two or more equally strong and incompatible motives occurring at the same time that compels an individual to make a choice, which in turn leads to stress.
The types of conflict are:
i. Approach-Approach conflict: There is a conflict between two positive and attractive goals. The decision will depend on the attractiveness of the goal and its valence may change, e.g. Bhoomi wants to take up two courses but they are both scheduled at the same time.

ii. Avoidance-Avoidance conflict: The conflict involves two goals with negative values. An individual is forced to make a choice between two negative and unattractive goals, e.g. Ritu must work at a job which she dislikes, or else she must remain unemployed.

iii. Approach-Avoidance conflict: There is only one goal and it has positive as well as a negative value. This type of conflict is very difficult to resolve. There are three possible reactions in such a situation: give importance to a positive value, be cautious about the negative value and leave the goal altogether, e.g. Aryan receives a letter of acceptance from a college of his choice but it is very expensive.

iv. Double Approach-Avoidance conflict: An individual faces conflict between two or more goals that have an equal positive or negative value. However, an individual is always disappointed with the choice he makes as he has to lose the other goal, e.g. Richa has to choose between two boys for marriage. One is handsome but boring. The other one is fun but not good-looking.

Activities

[Note: The answers to activities will be very subjective. The answers provided are for reference. Students are expected to perform these activities on their own.]

Activity 2 (Textbook Page No. 61)

Look at the following examples of stress. Try to find a pattern in them and make a definition of stress for yourself.
i. Meena needs fees for her higher education. But her father has less money than required. He feels very stressed.
ii. Rashid is late for an appointment and he is stuck up in a traffic jam. He is stressed about reaching on time.
iii. Parminder is supposed to make a model for the Science examination which is not working. Parminder feels stressed.
Answer:
Stress is the body’s reaction to any change that requires adjustments. It refers to a situation in which an individual’s expectations cannot be fulfilled due to a lack of resources.

Activity 6 (Textbook Page No. 66)

Try to find examples of the given types of conflicts in your life or around you. How are these types of conflicts resolved? Are they? How does one deal with the resulting stress?
Answer:
Everyone faces all types of conflicts at one time or the other. I have to choose between two of my favourite destinations for the upcoming vacations. My uncle loves to eat sweets but he is a diabetic and so, he is always thinking about how to resolve this conflict. My younger brother has to choose between doing homework and going to tuition. He dislikes both.

All these types of conflicts are difficult to resolve but solving them is also very important. Everybody deals with the resulting stress in different ways. Ideally, we should weigh the pros and cons of every situation and then come to a conclusion.

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

1A. Complete the following statements.

Question 1.
One of the criteria of well-adjusted behaviour is ___________
(a) intelligence
(b) openness to new experience
(c) success
(d) artistic ability
Answer:
(b) openness to new experience

Question 2.
According to the humanistic perspective, every individual strives for ___________
(a) absence of problems
(b) absence of mental disorder
(c) enjoyment in life
(d) development of one’s abilities to the fullest
Answer:
(d) development of one’s abilities to the fullest

Question 3.
According to ___________ perspective, one of the causes of abnormality is ‘genetic predisposition’.
(a) behavioural
(b) biological
(c) sociocultural
(d) cognitive
Answer:
(b) biological

Question 4.
___________ face the identity crisis.
(a) Children
(b) Adolescents
(c) Young adults
(d) Old people
Answer:
(b) Adolescents

1B. State whether the following statements are True or False and justify your answer with reason.

Question 1.
Sucheta has an IQ that falls into the category of genius which is rare to find. ‘Genius’ is statistical deviance. Therefore, she is abnormal.
Answer:
False
Reason: Although Sucheta’s IQ is statistically deviant, she does not exhibit other criteria of being abnormal such as personal distress and impaired functioning. Hence, she can’t be considered as being abnormal.

Question 2.
It is very rare to find a person possessing all the criteria of a well-adjusted person.
Answer:
True
Explanation: A well-adjusted person has 5 main criteria. Some people may show some criteria while others may be high on some other criteria.

Question 3.
Over-expectation from the parents can lead to a lack of self-confidence.
Answer:
True
Explanation: If parents expect their child to do more than what he/she is capable of, they are pushing their child too hard. It will lead to anxiety, underperformance, and consequently, low self-confidence.

Question 4.
A well-adjusted individual does not encounter failure at all.
Answer:
False
Reason: A well-adjusted individual will encounter failure. But he knows that success or failure is temporary. He understands that hard work and consistency is important in the long run.

Question 5.
Abnormality is always hereditary.
Answer:
False
Reason: Apart from being hereditary, the abnormality could also result due to environmental factors (i.e. nurture) including social, cultural, and psychological factors.

Question 6.
Self-awareness is being passionate about fulfilling one’s needs.
Answer:
False
Reason: Self-motivation is being passionate about fulfilling one’s needs while self-awareness is the ability to recognize one’s own emotions, strengths, and weaknesses.

Question 7.
Social skill is the ability to interact well with others.
Answer:
True
Explanation: Social skills include active listening, effective verbal and non-verbal communication, leadership, etc. which are all necessary to interact well with others.

Question 8.
Openness to new experience leads to dangerous situations, therefore, it should not be encouraged
Answer:
False
Reason: Openness to new experience is the trait of a well-adjusted individual and enables him to deal with strangers and new places comfortably. Simply being open does not lead to dangerous situations.

1C. Identify the odd item from the following.

Question 1.
Self-awareness, Self-regulation, Self-motivation, Sympathy, Social skills
Answer:
Sympathy

Question 2.
Cognitive perspective, Humanistic perspective, Psychoanalytic perspective, Motivational perspective
Answer:
Motivational perspective

Question 3.
Failure, High anxiety, Negative thoughts, High self-esteem, Self-blame
Answer:
High self-esteem

Question 4.
Deviance, Personal distress, Low intelligence, Impaired functioning
Answer:
Low intelligence

1D. Match the following.

Question (i).

A	B
1. The emphasis upon the unconscious mind	a. Biological
2. Survival and reproduction are the purpose of mental processes	b. Cognitive
3. Chemical changes in the brain	c. Psychoanalytic
4. Abnormal behaviour is due to faulty learning	d. Evolutionary
5. Emphasis upon thinking process	e. Sociocultural

Answer:

A	B
1. The emphasis upon unconscious mind	c. Psychoanalytic
2. Survival and reproduction are the purpose of mental processes	d. Evolutionary
3. Chemical changes in the brain	a. Biological
4. Abnormal behaviour is due to faulty learning	e. Sociocultural
5. Emphasis upon thinking process	b. Cognitive

Question (ii).

A	B
(i) Stress and storm	(1) Used for gaining more power
(ii) Body image	(2) Adolescence
(iii) Bullying	(3) May lead to a lack of self-confidence
(iv) Low self-esteem	(4) Childhood
(v) Nurturance	(5) Anorexia
	(6) Feminine trait

Answer:

A	B
(i) Stress and storm	(2) Adolescence
(ii) Body image	(5) Anorexia
(iii) Bullying	(1) Used for gaining more power
(iv) Low self-esteem	(3) May lead to lack of self-confidence
(v) Nurturance	(6) Feminine trait

2. Answer the following questions in 35-40 words each.

Question 1.
Explain the concept of realistic perception of self with an example.
Answer:

• This is an important hallmark of a well-adjusted individual.
• It involves a good understanding of one’s own emotions, strengths, and weaknesses.
• It ensures that personal lives are effectively managed.
• Example: Neha likes singing and knows that she has an excellent voice (her strength). Hence, she joins the singing classes to improve herself.

Question 2.
What is emotional intelligence? Mention the components of emotional intelligence.
Answer:

• Mayer and Salovey define emotional intelligence as ‘the ability to perceive one’s own and others’ emotions, to discriminate among them, and to use that information to guide one’s thinking and action’.
• It has five components, viz. self-awareness, self-regulation, self-motivation, social skills, and empathy.
• If a person is on the low end of the emotional intelligence spectrum, he or she may have a condition known as alexithymia. Alexithymia is the inability to understand or express emotions.

Question 3.
What are the conditions that lead to low self-esteem? Give examples.
Answer:
Some conditions that cause low self-esteem are:

• Overly harsh or critical parents
• Negative peer influence
• Consistent poor academic performance
• Stressful or traumatic events
• Abusive relationships
• Negative thoughts and high anxiety

Example: Anmol’s parents would always criticize them if he tried doing something new. As a result, he started feeling that he is good for nothing and developed low self-esteem.

Question 4.
What is the significance of openness to new experiences?
Answer:
Openness to new experiences is a trait of a well-adjusted individual. It is only due to being open that one can:

• try out different experiences
• can explore new places
• be confident about himself or herself
• talk and meet strangers comfortably
• can take risks regarding unknown things
• is confident in voicing honest opinions

Question 5.
How does self-awareness affect psychological well-being?
Answer:
Self-awareness is the ability to recognize and understand your own emotions, capabilities, actions, and moods. It affects our psychological well-being since:

• being aware of one’s own capabilities makes it easy to use strengths effectively and improve upon weaknesses.
• because of self-awareness, one can learn to avoid impulsive behaviour and take better care of mental health.

Question 6.
What is the significance of self-motivation?
Answer:

• Self-motivated individuals are eager to take action without needing any external reward or push.
• If one is self-motivated, he would rise against all the inhibitions and hesitations.
• It is significant because it not only makes one determined but it also keeps one going despite setbacks and hardships.

Question 7.
Enlist the qualities a person requires for having healthy relationships with others.
Answer:
Well-adjusted individuals have healthy relations with others. It requires qualities such as:

• Being honest
• Being fair
• Being respectful
• Being non-threatening
• Being a responsible parent
• Having shared responsibilities
• Having an economic partnership
• Having trust and offering support to others

Question 8.
How important are social skills? Give example.
Answer:
All human beings are social animals and hence, social skills play an important role in their lives.

• These skills are required to effectively interact with each other.
• They help us to co-exist with others and create harmonious relationships.
• Some examples of social skills are effective communication, conflict resolution, and cooperation.
• Example: Excellent communication skills enabled Mahesh to develop healthy relations with colleagues and relatives.

Question 9.
State the biological perspective to abnormal behaviour with an example.
Answer:
According to the biological perspective,

• Biological and physiological factors cause abnormality.
• The abnormality is treated as a disease or mental illness. It is diagnosed through symptoms.
• Abnormality is cured through treatment that involves drugs and hospitalization.
• Example: Abnormalities caused due to chemical imbalance in the brain may be cured through medicines.

Question 10.
Explain the humanistic perspective.
Answer:
According to the humanistic perspective,

• People are intrinsically driven to do better and advance their own growth.
• Abnormal behaviour is learned due to blocked personal growth.
• Abnormalities can be corrected by creating conditions that enable them to grow, change, and develop to their fullest possible potential.

Question 11.
Explain the sociocultural perspective to abnormal behaviour.
Answer:
According to the sociocultural perspective,

• Abnormal behaviour is learned within a social context. It includes social norms and one’s family, friends, society, etc.
• Abnormalities can be attributed to problems in cultural values and belief systems.
• Example: A young girl may follow a strict diet, even when it is not good for her health because being slim is associated with attractiveness in her culture.

3. Compare and contrast.

Question (i).
Realistic perception of self and Unrealistic perception of self
Answer:

• Realistic perception of self means being aware of our own strengths and weaknesses. It also means using strengths for the betterment and modifying the weaknesses. Realistic people do not get upset when they are confronted with failure. All of this enables them to deal with life more effectively.
• Unrealistic perception of self makes an individual expect things that are not feasible. They are likely to face dejection, frustration, and sadness. They may not be able to recognize their own strengths and may feel incompetent. They even blame others for their shortcomings.

Question (ii).
Openness to new experiences and Inhibitions/Fear of new experiences
Answer:

• People who can comfortably deal with strangers and are confident in voicing honest opinions are open to new experiences. They are eager to take on life, try out new trends, go to new places and reach out to people from different backgrounds, communities, and locations. They are confident and dare to take risks regarding unknown experiences,
• People who are fearful and hesitant are not open to changes, new places, new people, and experiences. These individuals find it hard to deal with changes and get anxious while interacting with strangers.

Question (iii).
High self-esteem and low self-esteem
Answer:

• People having high esteem like themselves and radiate confidence and assertiveness. They are happy with themselves and are liked by all because of it. It also results in better relationships. Well-adjusted individuals have high self-esteem.
• People with low self-esteem don’t think that they are loved, valued, or considered worthy. They don’t have a positive image of themselves. This leads to anxiety and poor performance. Consequently, they indulge in self-blame and continue to feel incompetent.

Question (iv).
Sympathy and Empathy
Answer:

• Sympathy is feeling sorry and having pity for the hardship or losses that another person faces. In this case, an individual genuinely feels bad for the hardships or grief faced by others.
• Empathy is putting yourself into someone else’s shoes. It refers to understanding the situation from that person’s point of view and actually feeling his pain. Hence, empathy is a more intense level of emotion than sympathy.

For your understanding

	Empathy	Sympathy
Meaning	Understanding what others are feeling because you have either experienced it yourself or can put yourself in their shoes.	Acknowledging another person’s emotional problems and trying to comfort or console them.
Example	Situation: Tushar fails in his preliminary exam and is upset.
	Empathetic response by Tushar’s friend: “I have been through this situation in the past so I know how it feels. But don’t worry. You can do better in final exam.”	Sympathetic response by Tushar’s friend: “I understand your situation. But failure is a part of life. So instead of being upset, let’s focus on how you can do better in final exam.”

Question (v).
Behavioural perspective and Humanistic perspective to abnormality
Answer:

• Behavioural perspective looks at the observable behaviour of an individual. This perspective believes that ineffective learning and conditioning can lead to abnormal behaviour. Behavioural psychologists treat such abnormalities with the help of the principles of reinforcement and punishment.
• Humanistic perspective looks at the ways human beings are driven to grow, change and develop into the best versions of themselves. This perspective believes that abnormalities get formed when personal growth is blocked. Humanistic psychologists treat such abnormalities by creating conditions that allow positive and healthy growth of the individual.

4(i). What are the possible consequences of

Question (a).
Geeta is more interested in literature but being the only daughter of a well-established orthopaedic surgeon having his own hospital, she is under pressure of choosing medical profession as her career.
Answer:

• It is possible that Geeta follows her father’s footsteps and becomes a doctor. But she will not be self-motivated and may resent her work. She is likely to get frustrated when encountered with setbacks.
• It is also possible that she (firmly but gently) tells father of her interest in literature and convinces him that literature is where her heart and passion lies. In this case, she will not blame anyone during rough times and will be motivated to resolve the difficulties that may arise.

Question (b).
Sujata is an intelligent girl but she is extremely sensitive to criticism and perceives herself as less competent.
Answer:

• Sujata will keep getting disheartened when criticised. There are chances that this may happen frequently since she has no control over other’s behaviour.
• If faced with constant criticism, she will continue to feel less competent and may get trapped in the vicious cycle of low self-esteem.

Question (c).
Trisha is not able to make friends. She cannot initiate conversation with strangers at all. She is placed as a leader of one of the teams for campus-cleaning.
Answer:

• Her team mates may make fun of her and won’t look up to her as a leader. She may end up taking the cleaning activity all by herself and the team will not listen to her at all.
• However, if she views it as a challenge and responds positively to the situation, she might be able to overcome her weaknesses.

4(ii). What will you do if?

Question (a).
You see your best friend bullying your classmate.
Answer:

• I will intervene and use my friendship to stop the bullying immediately. Then I will talk to my friend to figure out why she was resorting to bullying.
• I will also try to make her understand why engaging in such behaviour is wrong.

Question (b).
You see a girl in your class who is not included in many of the class room activities, who does not have any friend and who faces rejection from everyone.
Answer:

• I will myself go up to her and befriend her. I will also help her in whatever way I can. I will not worry if others isolate me for helping her as I can understand that she needs support.
• I will try to talk to others at a later point in time to change their view towards her.

Question (c).
You got very less marks in the First Terminal exam.
Answer:

• I will certainly be very disappointed and upset at first. But then I will try to analyse the causes of getting such less marks.
• I will study more, waste less time in leisure activities, pay more attention in class and clarify my doubts immediately. It will help me to get good marks in the next term.

Question (d).
You are very much interested in taking part in a drama to be performed in the annual function of your college, but you are not selected.
Answer:

• I will feel disappointed for some time. But then I will try to analyse the reasons behind getting rejected and work on it.
• I will also join a work shop to hone my skills and practice hard to win similar parts in future.

5. Write short notes in 50-60 words each.

Question 1.
Criteria of well-adjusted person
Answer:

• A well-adjusted person is a well-balanced person, both mentally and emotionally.
• They see themselves as well as the world as worthy and valuable.
• The criteria of a well-balanced individual are:
  • Openness to new experiences
  • Healthy relationships
  • High self-esteem
  • Emotional intelligence
  • Realistic perception of self and the world
• Besides these criteria, other criteria of well-adjusted individuals include expressing gratitude, kindness and sharing as well as accepting success and failure as a part of life.

For your understanding
Characteristics of maladjusted individuals: They get panic attacks, hesitate to meet new people, resist changes, are withdrawn, shy and self-conscious, throw tantrums, feel isolated, have poor relations and low self-esteem.

Question 2.
Criteria of abnormal behaviour
Answer:

• Abnormal behaviour is disturbing (socially unacceptable), distressing and maladaptive (self-defeating).
• There are three major criteria of abnormal behaviour:
  • Personal distress: Feeling very low or depressed on continuous basis.
  • Deviance: Behaviour going against the laws or set social and statistical standards.
  • Failure to function normally: Day-to-day functioning is impaired.
• It is wrong to judge someone as being abnormal based on only one criterion. All above criteria need to be considered.

Question 3.
Psychoanalytic perspective
Answer:

• The psychoanalytic perspective focuses on unconscious mind, early childhood experiences and interpersonal relations to explain human behaviour.
• According to this perspective, abnormal behaviour is the consequence of anxiety produced by unresolved and unconscious conflicts of childhood.
• This perspective tries to treat people displaying abnormal behaviour by focusing on identification and the resolution of these conflicts.
• Freud has also explained that certain unconscious motives or conflicts have base of primitive sexual and aggressive instincts.

Question 4.
Cognitive perspective
Answer:

• The cognitive perspective says that individuals behave abnormally due to faulty thinking patterns. They may hold certain false assumptions and behave in accordance with them.
• This perspective tries to treat people displaying abnormal behaviour by helping them to adapt to new thinking process.
• This is done by unlearning maladaptive thinking and replacing it with more adaptive one.

Question 5.
Bullying
Answer:

• Adolescents may face the problem of being bullied. They may be humiliated or fall victim to other people’s aggression when they have less power or prestige.
• Bullying can be physical, emotional or mental. The intent of bullying is always negative.
• Almost all bullies are victims themselves. Both, bullies and victims are low in self-esteem.
• Bullies are aggressive, ruthless manipulators who don’t trust others, break their promises and take unfair advantage of others. They respond to stress with aggression or by engaging in self-destructive behaviour.
• Boys generally indulge into bullying to gain power while girls indulge in bullying when they are depressed.

Question 6.
Sexual orientation
Answer:

• Sexual orientation refers to an individual’s pattern of physical and emotional arousal, towards another person.
• Heterosexual individuals are attracted to persons of the opposite sex.
• Homosexual individuals are attracted to persons of the same sex.
• Bisexual individuals are attracted to person of both sexes.
• During adolescence, sex hormones become active and adolescents become conscious of their sexual orientation.
• Adolescents who are homosexual or bisexual become confused when they realise that their sexual orientation is different from their peers.

Question 7.
Emotional intelligence
Answer:

• The term emotional intelligence was coined by Michel Beldoch in 1964.
• Emotional intelligence is explained as the ability to understand and manage one’s own and others’ emotions.
• Its proposed abilities include perceiving, using, understanding and managing emotions appropriately.
• Having high emotional intelligence is one of the criteria of well-adjusted individuals.
• Individuals with high emotional intelligence are balanced. They do not easily get panic or nervous. They are able to handle stressful situations effectively.

6. Case study

Read the following case carefully and answer the questions based upon that.

Pritha was a merit holder girl from a middle class family. She joined a college where majority of students were from a rich background. Although she was capable of following lectures and was doing well in her studies, she felt lonely as she could not get acceptance in the groups of her classmates coming from affluent families. She tried to dress like them, and started asking for extra pocket money from her parents. Her classmates joked at her dressing sense. She could not tolerate the mockery and stopped going to the college.

Instead, she started spending time visiting strange places like public parks, railway stations and shopping malls. She did not appear for any of her exams. Her parents were unaware of all these things and on asking about college or studies, Pritha answered them without revealing the truth. It the end of the year, her parents received her report card by post from her college with a remark that ‘Your ward has to take College Leaving certificate.

On confronting Pritha, she became violent and started damaging the furniture uttering bad words about the middle class people and there after her utterance was incomprehensible for her parents. This continued for a very long time.

Question 1.
Which problems did Pritha face in her college?
Answer:
Pritha got isolated with her peers because of her economic background. She also faced bullying as her affluent classmates made fun of her dressing sense. She felt humiliated and unaccepted. It affected her mental well-being. She probably felt that she could not discuss those issues at her home and felt helpless.

Question 2.
Could Pritha, according to you, have avoided her condition of feeling lonely?
Answer:
It was a very difficult and disturbing phase in her life. But she could have talked to her teachers and parents and sought their guidance. She could have also shared everything with her friends outside college.

Question 3.
What would you do if you were in Pritha’s place?
Answer:
I would have talked to my parents and discussed everything openly. My parents would have surely guided me on how to deal with peers coming from different backgrounds and provided me their thoughts and ideas. I would also have concentrated more on my studies.

Question 4.
Do you think Pritha should have spoken to her parents about her feelings at college? If yes, how it would have helped her?
Answer:
Yes, Pritha should have spoken and informed her parents of what was going on in her college life, instead of lying about going to college. Lying was only multiplying her troubles. They could have given her support and also maybe talked to her teachers and managed to get the situation under control.

7. Answer the following questions in 150-200 words.

Question 1.
What are the criteria of abnormal behaviour? Explain with examples.
Answer:
All of the following criteria need to be considered together in order to determine if a person displays abnormal behaviour.

Personal distress: Personal distress refers to subjective feeling of an individual in response to persons and events creating extreme discomfort. It includes feeling very low, depressed, facing problems like social withdrawal, e.g. A person feeling down and sad every day is considered abnormal.

Deviance: Behaviour against the set laws of the state or behaviours different than standard social and statistical patterns exhibited by most of the people, e.g. Deliberately engaging in behaviour which is harmful to self and others.

Failure to perform functions normally: Day-to-day functioning getting impaired, i.e. inability to fulfil appropriate and expected roles in family, social and work related situations, e.g. A person is not able to perform his daily chores and fulfil work commitments due to lethargy.

Question 2.
What are the causes of abnormal behaviour?
Answer:
There are primarily seven psychological perspectives of abnormal behaviour. All these perspectives indicate different factors as the causes of abnormal behaviour. Additionally, Stress Diathesis Model and Biopsychosocial Model also discuss the causes of abnormal behaviour.
The causes of abnormal behaviour can be explained as follows:

• Biological perspective: Abnormal behaviour results due to chemical imbalance or physiological factors.
• Sociocultural perspective: Abnormal behaviour is learnt within the social context.
• Behavioural perspective: Abnormal behaviour is learnt due to ineffective learning and conditioning.
• Evolutionary perspective: Abnormal behaviour is an exaggerated form of adaptive action.
• Humanistic perspective: Abnormal behaviour arises from blocked personal growth.
• Psychoanalytic/Psychodynamic perspective: Abnormal behaviour is due to unconscious and unresolved conflicts.
• Cognitive perspective: Abnormal behaviour arises due to false assumptions and faulty thinking.
• Stress-Diathesis model: Disorder = Nature (Biological and genetic factors) + Nurture (Life experiences)
• Biopsychosocial model: Abnormal behaviour = Biological factors + Psychological factors + Sociocultural factors

Question 3.
Describe the challenges faced by adolescents with examples.
Answer:
Adolescence is the transitional period associated with a number of physiological and psychological changes. It is called the period of ‘storm and stress’. Since adolescents are neither children nor adult, they face many challenges as follows:

• Sexual orientation issues: Adolescents who are homosexual or bisexual become confused when they realise that their sexual orientation is different from peers.
• Gender identity issues: Some adolescents may show traits typically thought to be of the other gender. If they are not allowed to behave in a way that is natural to them, they become rebellious.
• Bullying issues: Adolescents may face the problem of being bullied. They may be humiliated or fall victim to other people’s aggression when they have less power or prestige.
• Other challenges:
  • Self-identity issues since they are neither adult nor children.
  • May feel inferior, shy and have difficulty in mixing with peers.
  • Lack of self-confidence may perceive others negatively.
  • May become conscious about their physical features.
  • May become moody and unpredictable due to hormonal changes.
  • May feel excessive pressure due to expectations of oneself and parents.

Activities

[Note: The answers of activities will be very subjective. The answers provided are for reference. Students are expected to perform these activities on their own.]

Activity 8 (Textbook Page No. 50)

Think about the following situations. Try and apply the criteria for abnormality that you came up with, to these cases and try to judge if they could be called abnormal.

1. Sameer likes to dress up like girls.
2. Kushal is confused about his sexual orientation.
3. After marriage, Shoaib went to live with his in-laws.
4. Joseph loves to be alone and travels alone.
5. Delnaz is introvert and does not like to mix with any one.

Answer:

1. Sameer may be having gender identification issues and must be feeling more feminine than masculine. But I think it is not abnormal.
2. Kushal may not be aware that there can be heterosexuals, homosexuals and bisexuals and it is perfectly normal to be any of them.
3. Although usually it is the bride who lives with in-laws after marriage, I don’t think of Shoaib’s behaviour as abnormal. It is just different than a normal social pattern.
4. If Joseph wants to be alone and travel alone at times, it seems to be alright. Maybe he’s going through a phase of self discovery. However, if this pattern continues for a longer duration and hampers his social relationhips, then it is abnormal as human beings are social beings.
5. Delnaz can be considered abnormal if she doesn’t like interacting with anyone, including her near ones and family. However, being introvert does not mean someone is abnormal.

Activity 11 (Textbook Page No. 54)

You are all adolescents now. Think about how you are today and how you were in 5th/6th standard. Make two columns and note down the changes you see in these five domains: your self-image, your confidence, relationships with your parents, physical changes, and importance of friends in your life.
Answer:

Self-image	Has become more positive
Confidence	Improved significantly as I know what I am capable of
Relation with parents	Continues to be warm and close
Physical changes	Increase in height, weight and chainge in overall appearance
Importance of friends	Increased importance as we understand each other better