Bhagya

12th OCM Chapter 3 Exercise Entrepreneurship Development Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Entrepreneurship Development 12th OCM Chapter 3 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 3 Entrepreneurship Development Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 3 Exercise Solutions

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

Question 1.
The word ‘entrepreneur’ is derived from the ……………… word ‘entreprende’.
(a) Japanese
(b) English
(c) French
Answer:
(c) French

Question 2.
‘Entreprende’ means to ………………..
(a) Undertake
(b) Enterprise
(c) Businessman
Answer:
(a) Undertake

Question 3.
Start Up India is an initiative of the ………………
(a) RBI
(b) Government of India
(c) World Bank
Answer:
(b) Government of India

Question 4.
………………. is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.
(a) Agro tourism
(b) Medical tourism
(c) Entertainment
Answer:
(a) Agro tourism

1. (B) Match the pairs

Group A	Group B
(A) Gap filling function	(1) 2016
(B) Entrepreneur	(2) Employment
(C) Agro tourism	(3) Old methods of production
(D) Technology	(4) 2019
(E) Start up India	(5) Self motivated
	(6) Rural tourism
	(7) Entrepreneurship
	(8) Latest knowledge
	(9) Necessity Based
	(10) Medical tourism

Answer:

Group A	Group B
(A) Gap filling function	(7) Entrepreneurship
(B) Entrepreneur	(5) Self motivated
(C) Agro tourism	(6) Rural tourism
(D) Technology	(8) Latest knowledge
(E) Start up India	(1) 2016

1. (C) Give one word/phrase/term which can substitute each one of the following

Question 1.
An undertaking or adventure involving uncertainty and risk and requiring innovation.
Answer:
Enterprise

Question 2.
A function of creating something new for an economic activity.
Answer:
Innovation

Question 3.
A person who is an innovator who introduces new combinations of means of production.
Answer:
Entrepreneur

Question 4.
The process of enhancing entrepreneurial skills and knowledge through structured training and institution building programmes.
Answer:
Entrepreneur development

Question 5.
The process that motivates a person into action and induces him to continue the course of action for the achievement of goals.
Answer:
Motivation

Question 6.
An employee who has an authority and support of the organisation to implement his creative ideas.
Answer:
Intrapreneur

1. (D) State true or false

Question 1.
An entrepreneur should not be ready to work hard.
Answer:
False

Question 2.
Agritourism can support agricultural economy.
Answer:
True

Question 3.
Successful businessman takes calculated risk.
Answer:
True

Question 4.
Entrepreneurship is a full time job which requires dedication and hard work.
Answer:
True

Question 5.
Startup India is an initiative of the Government of France.
Answer:
False.

1. (E) Find the odd one

Question 1.
Communicator, Innovator, Self-starter, Inactive.
Answer:
Inactive

Question 2.
Trekking, Wildlife study, Horseback riding, Indoor games.
Answer:
Indoor games

Question 3.
Innovation, Lack of communication, Development of market, Determining the objectives.
Answer:
Lack of communication.

1. (F) Complete the sentences

Question 1.
An entrepreneur is a person who starts a …………………
Answer:
Business / Enterprise

Question 2.
‘Start-up’ India initiative was launched in ……………….
Answer:
2016.

1. (G) Select the correct option

(Innovation, Niche tourism, Agro tourism, Entrepreneurship)

	Group A	Group B
1.	The idea of bringing Urban resident to agricultural farm	—————
2.	Agro tourism is a form of	————–
3.	——————	To introduce new combination of products and features
4.	—————–	A full time job which requires, dedication and hard-work.

Answer:

	Group A	Group B
1.	The idea of bringing Urban resident to agricultural farm	Agro tourism
2.	Agro tourism is a form of	Niche tourism
3.	Innovation	To introduce new combination of products and features
4.	Entrepreneurship.	A full time job which requires, dedication and hard-work.

1. (H) Answer in one sentence

Question 1.
What is Agro tourism?
Answer:
Agro tourism is the idea to bring urban residents to rural areas for leisure travel and spending.

Question 2.
Who is ‘Entrepreneur’?
Answer:
Entrepreneur is a person who organises and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Question 3.
Who described ‘Entrepreneurship’ as the founding of a private enterprise?
Answer:
John Sturt Mill, a famous economist, described ‘Entrepreneurship’ as founding of a private enterprise in 1948.

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

Question 1.
The word ‘Entrepreneur’ comes from the German verb entreprendre, it means ‘to undertake’.
Answer:
French

Question 2.
Entrepreneurs try to make home a better place where the needs of consumers can be satisfied.
Answer:
market

Question 3.
The loan taken under stand-up India scheme is repayable in ten years.
Answer:
seven.

2. Explain the following term/concept

Question 1.
Entrepreneur.
Answer:
An entrepreneur is a person who starts a business and is willing to risk loss in order to make money. The entrepreneurs are passionate to invent, innovate, lead or pioneers with a disruptive product or technology. Entrepreneurs try to make market a better place where the needs of consumers can be satisfied. They have the courage to offer and share an idea or a product or a service with the world. A small businessman, founder of multi-billion company, freelancing carpenter are examples of entrepreneurs.

Question 2.
Agro tourism.
Answer:
Agro tourism is the idea of bringing urban residents to rural areas for leisure travel and spending. Agro tourism is a commercial enterprise at a working farm, ranch or agricultural plant conducted for the enjoyment of visitors that generates supplement income for the owner. Agrotourism activities include picking fruits, tending bees, milking cows and other educational pursuits. In short, Agro tourism provides the tourists a chance to reconnect with the land and provides a ‘hand on experience’ with local foods. Agro tourism can support agricultural economy when local producers can no longer complete economically.

Question 3.
Start-ups.
Answer:
A start-up is defined as an entity having its headquarter in India, which was opened less than 10 years ago and has an annual turnover of less than Rs 100 crores. It is an initiative of the Government of India, launched in 2016. It aims at building an ecosystem which will nurture start¬ups in the country. So that, sustainable economic growth and large scale employment opportunities can be generated. One of the objectives of the Indian Government is to make India a nation of job creator instead of job seekers.

Question 4.
Stand-ups.
Answer:
Stand-up India scheme is for financing SC/ST and/or women entrepreneurs. The objective of the stand-up India scheme is to facilitate bank loans between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and at least one woman borrower per branch for setting up a greenfield enterprise. This enterprise maybe in manufacturing, services or the trading sector. In case of non-individual enterprise at least 51% of the share-holding and controlling stake should be held by either an SC/ST or woman, above 18 years of age.

Question 5.
Intrapreneur.
Answer:
Intrapreneurship is the entrepreneurship within an existing organisation. An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or products may or may not earn immediate revenue for the company. But the employee keeps receiving his salary. The company provides the infrastructure. Many large organisations have dedicated Research and Development Departments where employees are encouraged to use their creative abilities. These ideas or innovations may earn handsome profit to an organisation. So Intrapreneur is the entrepreneurship within an organisation.

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

Mr. Soham is a young MBA degree holder, Mr. Navin is B.Com graduate. Mr. Soham is willing to start dairy farm at his village, Mr. Navin is willing to work as cashier in Private Company.

(i) Find out dream of Soham and Navin.
(ii) State anyone feature of Entrepreneur.
(iii) To become successful entrepreneur, which qualities Mr. Soham should have?
Answer:
(i) Dream of Soham is to become ; entrepreneur and dream of Navin is to take up job in a private company and get a fixed income as salary.
(ii) Entrepreneur is a person who is willing to take risk in order to earn money and start a business.
(iii) To become a successful entrepreneur Mr. Soham should have qualities like innovator, creator, reactive and risk bearer.

4. Answer in brief

Question 1.
Define Entrepreneur. Explain functions of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Question 2.
Define entrepreneur. Explain the qualities of successful entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] The qualities of a successful entrepreneur:
(1) Discipline : An entrepreneur has comprehensive strategies and tactics to accomplish the organisational goal. Successful entrepreneur is disciplined enough to take steps every day towards the attainment of his objectives. They eliminate any hindrance or distractions.

(2) Confidence : An entrepreneur is confident with the knowledge that he will make his businesses succeed. He shows the confidence in everything he does.

(3) Open-minded : An entrepreneur has the ability to look at everything around him and realises that every event and situation is a business opportunity. New ideas are constantly being generated about potential new business.

(4) Self starter : An entrepreneur is proactive, not waiting for someone to give him permission. Everything which needs to be done, he should start in himself. So, he sets parameters for the project.

(5) Competitive : An entrepreneur knows that he can do a job better than others. He needs to be competitive to win every game of the business.

(6) Creativity : An entrepreneur often comes up with solutions which are the synthesis of other item. He makes connections between two unrelated events or situations.

(7) Determination : An entrepreneur is determined to make all of their endeavours succeed, so will try again until it does. He sees opportunity for success in defeat.

(8) Strong communication skills : The entrepreneur has strong communication skill to sell the product and to motivate employees. He has to highlight benefits of situation and coach others to be successful.

(9) Strong work ethics : An entrepreneur mind is constantly on his work place to ensure that an outcome meets his expectations.

(10) Passion : Passion is the most important that of a successful entrepreneur. He genuinely loves his work because there is a joy that his business gives which goes beyond the money. He should always research and read to make his business grow and be better.

5. Justify the following statements

Question 1.
Entrepreneurship is the best source for self-employment.
Answer:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(4) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

Question 2.
Successful businessman takes calculated risk.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Question 3.
Entrepreneur must be a good communicator.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility, etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

(4) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(5) Managerial skill and leadership : The entrepreneur who has strong passion of doing or creating something new rather than just to earn profit will become a successful entrepreneur. Managerial skills and leadership are the most important features of successful entrepreneur. Other skills are not considered so important. Entrepreneur must be a good leader and manager of the groups working under him.

(6) Skilful management : The efficient and skilful management of the organisation is an important quality of entrepreneurship. With the help of professional management and skilled managers, entrepreneurship becomes easy and successful activity. The success of any entrepreneurship depends on its skilful management.

(7) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

(8) Gap filling function : Gap filling is considered as the most important feature of entrepreneur. It is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always exist in the knowledge about the production function. Entrepreneur must have all the solutions of the problems.

Question 4.
An entrepreneur must be an innovator.
Answer:
Innovation is a dynamic change brought by entrepreneur by bringing new combinations of factors of production. Innovation by entrepreneur is must for development of an organisation. Entrepreneur can be an innovator in many ways. They are:
(1) Introduction of a new product: Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialisation by embedding it in an environment where it did not exist previously.

(2) Introduction of a new method of production : By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. Introduction of new technology, new machinery, scientific methods of production will save money and time of the organisation.

(3) Opening of a new market : An innovative idea with new products. It opens a new market which are not existing previously.

(4) Carrying out new forms of organisation for industry : An innovative entrepreneur is the one who discovers new methods and new materials. He utilises invention and discoveries in order to make new combinations. Thus, entrepreneur must be an innovator.

Question 5.
With creativity, farmers can expand their Agro tourism Business.
Answer:
With creativity, farmers can expand their Agro tourism business through recreation, fun, entertaining activities. The valuable activities which farmer can do creatively are:
(1) Outdoor recreation : Farmer can add value and can expand their agro tourism business by outdoor recreation like trekking, fishing, hunting, wild life study, horse back riding, etc. All such activities are the point of attraction for a tourist and this can be enjoyed with family and friends too.

(2) Educational experiences : Farmers can also be more creative in farming tours, rice plantation, cooking classes on chulha. All such activities help customer to get hands on experience which they enjoy with adding educational values.

(3) Entertainment : Entertainment through harvest festivals like Hurda Party’ in Maharashtra, local dances, folk songs are recreation also main attraction for a customer for agro tourism. Entertaining activities such as contest, adult and children classes, games, etc. can be arranged. This innovative touch helps farmer to expand his business.

(4) Hospitality services : Hospitality services like farm stays, guided forms makes customer more happy. Farmer can add value to guest experience by offering them refreshment, fresh fruits, juice, fresh food, etc.

Happy customer will definitely returns and also spread good word of mouth to their family and friends. Thus, with creativity, farmers can expand their agro tourism business.

6. Attempt the following

Question 1.
Explain the characteristics Entrepreneurship Development.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility,etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

Question 2.
What is Entrepreneurship Development Programmes (EDP)?
Answer:
An entrepreneurship development
programme has been defined as “a programme designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role efficiently”.

EDP was first introduced in Gujarat in 1970 and was sponsored by the Gujarat Industrial Investment Corporation. EDP is basically a device through which people with entrepreneurial talents are identified, motivated to take up new industrial venture and guided in all aspects of starting a venture or an enterprise.

The following are the main objectives of EDP:
(1) Paster entreprenurial growth : The main objective is to increase the rate of all round entrepreneurial growth through training and educating them to develop the capability, talent and skills of existing entrepreneur.

(2) Optimum use of available resources : Another important objective is to use available resources to optimum level which result into minimisation of wastages and reduction in the overall cost of production. It also saves the invaluable resources for the future generation.

(3) Development of backward regions and improve economic status of socially disadvantage group : Its main objective is to establish different types of industries and business enterprise in the backward regions of the country. This leads to more employment opportunities and more income and savings of the people in backward group. By providing employment and other benefits to socially disadvantaged groups, EDP helps to improve their economic status.

(4) Generation of Employment opportunities : One of the important objectives of EDP is to generate employment opportunities for jobless people in the country by developing industries and business for them.

(5) Widening base for small and medium industries : The EDP helps to create, develop and widen the base for small and medium industries by strengthening them and create more and more entrepreneurs in the country. It helps in making country a job creator and not job seeker.

7. Answer the following

Question 1.
Define entrepreneur. Explain characteristics of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Characteristics : The characteristics of entrepreneur are as follows:
(1) Intellectual capabilities : An entrepreneur is a creative thinker. He always thinks more creatively and better than others. He always give innovative ideas which is the sign of his intellectual capabilities. He has ability to analyse any situation and take proper decision.

(2) Future vision : The entrepreneurs have the ability of foreseeing the future market conditions. He can take appropriate decision by considering recent market situations and changes in market conditions. He must have knowledge of external business environment. This enables them to take timely actions.

(3) Hard work : An entrepreneur is ready to work hard. Hard work is necessary in any type of venture or business activity to make it more successful. He is required to work more tediously, sincerely and seriously for long terms.

(4) Technical knowledge : The entrepreneur should have advance technical knowledge about the products and service, plans of production, etc. Entrepreneur should also update his technical knowledge from time to time to understand latest changes take place in technology.

(5) Communication skills : An entrepreneur needs to communicate effectively with different people like customers, suppliers, creditors, employees, etc. from time to time. He should have good communication skill and command over language he speaks, to be able to express his ideas and strategies effectively. Good communication skills mean proper understanding between sender and the receiver of the message.

(6) Highly optimistic : He should have positive thinking and positive approach in all the activities he undertakes. He is always hopeful and confident about the market situations even in failure or difficult times. It helps him to take the business out of difficulties and make it successful.

(7) Risk-bearing capacity : This is one of the main characteristics of an entrepreneur. He should be calculative in taking risk. He should be prepared to face challenges and look for opportunities in every adverse situation of business.

(8) Self confidence : He should be self confident to achieve his organisational goals. He I should always keep himself confident and motivated to face various obstacles and come out victorious every time in every challenge he faces.

Question 2.
Define entrepreneur. Explain its functions.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

OCM 12th Commerce Textbook Solutions Digest

12th OCM Chapter 2 Exercise Functions of Management Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Functions of Management 12th OCM Chapter 2 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 2 Functions of Management Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 2 Exercise Solutions

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

Question 1.
The functions of management start with ……………… function.
(a) organising
(b) planning
(c) co-ordinating
Answer:
planning

Question 2.
The functions of management end with ………………
(a) directing
(b) staffing
(c) controlling
Answer:
controlling

Question 3.
……………. sets out standards for controlling.
(a) Staffing
(b) Planning
(c) Co-ordinating
Answer:
Planning

Question 4.
Organizational function is important for execution of the plans which have been prepared by ……………. management.
(a) top level
(b) middle level
(c) lower level
Answer:
top level

Question 5.
……………… is the function which supports to activate the plans with the help of employees.
(a) Staffing
(b) Directing
(c) Co-ordinating
Answer:
Directing

Question 6.
………………. is the function of execution according to the plan and the organisational structure.
(a) Controlling
(b) Directing
(c) Staffing
Answer:
Directing

Question 7.
………………. arranges the work in such a way that minimum conflicts are raised.
(a) Co-ordinating
(b) Organizing
(c) Controlling
Answer:
Co-ordination.

1. (B) Match the pairs

Question 1.

Group A	Group B
(A) Planning	(1) It Is the process of instructing, guiding, communicating and motivating.
(B) Organizing	(2) It is an integration and synchronization of the efforts of group.
(C) Staffing	(3) Deciding In advance what to do, how to do, when to do and who Is to do it.
(D) Directing	(4) Management is what manager does.
(E) Co-ordlnating	(5) To focus on the role of manager.
	(6) Decides the ways and means to achieve what has been planned.
	(7) It Is the process of comparing the actual performance with the pre-determined standard performance.
	(8) It Is a set of principles.
	(9) It is the process of recruiting, selecting, placing and remunerating.
	(10) To manage is to forecast and plan.

Answer:

Group A	Group B
(A) Planning	(3) Deciding In advance what to do, how to do, when to do and who Is to do it.
(B) Organizing	(6) Decides the ways and means to achieve what has been planned.
(C) Staffing	(9) It is the process of recruiting, selecting, placing and remunerating.
(D) Directing	(1) It Is the process of instructing, guiding, communicating and motivating.
(E) Co-ordlnating	(2) It is an integration and synchronization of the efforts of group.

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

Question 1.
The right person at the job with right pay.
Answer:
Staffing

Question 2.
A person who shows the correct path as well as guides employees in solving the problems.
Answer:
Director

Question 3.
First function of management.
Answer:
Planning

Question 4.
Last function of management.
Answer:
Controlling

Question 5.
It is an intellectual process of logical thinking and rational decision-making.
Answer:
Planning

Question 6.
The term that is used to denote the structure.
Answer:
Organisation

Question 7.
It is the process of attracting, recruiting, selecting, placing, appraising and remunerating the people.
Answer:
Staffing

Question 8.
The process that leads the employees towards the accomplishment of organisational goals.
Answer:
Directing

Question 9.
It increases the team spirit of work place.
Answer:
Co-ordinating

Question 10.
It is the process of comparing the actual performance with the predetermined standard performance.
Answer:
Controlling.

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

Question 1.
Every function of management is not based on planning.
Answer:
False

Question 2.
Specialization in activities leads to increase in organisational efficiency.
Answer:
True

Question 3.
Qualified, efficient and skilled work force is always an asset of the organization.
Answer:
True

Question 4.
Cooperation is not necessary for smooth flow of organisational activities.
Answer:
False

Question 5.
Co-ordination motivates the employees to take initiative while completing their assigned task.
Answer:
True

Question 6.
Standards are not set for every performance in controlling function.
Answer:
False

1. (E) Find the odd one

Question 1.
Planning, Organizing, Staffing, Writing.
Answer:
Writing

Question 2.
Selecting, Training, Co-ordinating, Placing
Answer:
Co-ordinating.

1. (F) Complete the sentences

Question 1.
The tasks of getting the things done by others is known as ……………..
Answer:
Management

Question 2.
The functions of manager start with …………………
Answer:
Planning

Question 3.
The …………….. function of management initiates action
Answer:
Directing

Question 4.
Recruitments are done under ……………….. function.
Answer:
Staffing

Question 5.
………………. is the fundamental function of management.
Answer:
Planning

Question 6.
………………. integrates departmental activities for achieving common goal of the organisation.
Answer:
Co-ordinating

Question 7.
……………… is the last function of management.
Answer:
Controlling

1. (G) Select the correct option from the bracket

Question 1.
Planning is a detailed programme of (present/ future/past) course of action.
Answer:
future

Question 2.
Directing is a responsibility of (manager/ workers/people) at all levels.
Answer:
manager

Question 3.
Qualified, efficient and skilled workforce is always an (liabilities/assets/expenses) of the organization.
Answer:
assets.

1. (H) Answer in one sentence

Question 1.
What is management?
Answer:
The tasks of getting the things done by others to achieve organisational goal is called management.

Question 2.
What is planning?
Answer:
Planning means deciding in advance what to do when to do, how to do, where to do it and who is to do it.

Question 3.
What is staffing?
Answer:
The process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce is called staffing.

Question 4.
What is directing?
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve the pre-determined goals of the organisation.

Question 5.
What is controlling ?
Answer:
Controlling is a function of comparing the actual performance with the predetermined standard performance to measure deviation if any, identifying causes of deviation and suggest corrective measures.

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

Question 1.
Factors of business environment are always fixed.
Answer:
Factors of business environment are always changing.

Question 2.
Staffing is concerned with machines.
Answer:
Staffing is concerned with humans.

Question 3.
Directing is a function of comparing the actual performance with the pre-determined performance.
Answer:
Controlling is a function of comparing the actual performance with the pre-determined performance.

Question 4.
Co-ordination helps to maximise the wastage of resources and controls the cost of work.
Answer:
Co-ordination helps to minimise the wastage of resources and controls the cost of work.

Question 5.
Controlling measures are rigid to some extent.
Answer:
Controlling measures are flexible to some extent.

1. (J) Arrange in proper order

Question 1.
Controlling, Organizing, Planning.
Answer:
Planning, Organising, Controlling.

Question 2.
Directing, Co-ordinating, Staffing.
Answer:
Staffing, Directing, Co-ordinating.

2. Explain the following terms/concepts

Question 1.
Management
Answer:
The task of getting the work done by others to achieve organisational goal is called management. According to L. A. Allen, ‘Management is what manager does. Management is a set of principles which relate to the various functions such as planning, organising, staffing, directing, co-ordinating, controlling, etc. which are helpful in achieving organisational goals.

Question 2.
Planning
Answer:
Planning is the basic function of management. Planning is an intellectual process of logical thinking and rational decision-making. It includes deciding the things to be done in advance. In short, planning is a detailed programme of future course of action. Proper planning and its implementation is key to achieve the objectives of an organisation.

Question 3.
Organising
Answer:
Organising is the process of identifying, bringing the required resources together such as men, money, material, machines and method and arranging them in proper manner to achieve the goals of an organisation. It is prepared by the top level management. Organising function decides the ways and means to achieve what has been planned. Organising is more important in executing the plan.

Question 4.
Staffing
Answer:
Staffing is the function of execution according to plan and organisational structure. It is the process of attracting, recruiting, training, developing, appraising, remunerating, developing and retaining the best workforce. Right person at right job with right pay is the basic principle of staffing. This function is concerned with managing humans and not material.

Question 5.
Directing
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve pre-determined goals of an organisation. Director shows correct path as well as guides the employees in solving the problems wherever necessary. Directing is the soul of management function.

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

Question 1.
Mr. Ram, an emerging entrepreneur has designed a structure of his business organization by taking into consideration the required resources such as land, money, machinery, workforce, etc. for his new business. He appointed Mr. Shyam as a manager. Mr. Ram has assigned the responsibilities such as recruitment, selection, training and development and to determine the remuneration of the employees to Mr. Shyam. Mr, Ram. has also appointed Mr. Shubham to supervise the work done by the employees according to the standards given to the employees, Mr. Shubham has also to suggest the remedies to the employees wherever necessary. On this context, find out the management functions performed by
(i) Mr. Ram
(ii) Mr. Shyam
(iii) Mr. Shubham
Answer:
(i) Mr. Ram performs the function of planning and organising. He is an emerging entrepreneur and plans the business structure and organises different resources.

(ii) Mr Shyam is performing the function of staffing as his main duty is to recruit, select, train and develop the employees and to decide their remuneration accordingly.

(iii) Mr. Subham is performing the function of controlling. He compares actual performances of employees with standard performance given. He discovers causes of deviations and suggests remedies to overcome deviations.

Question 2.
In XYZ Company, Mr. Lele gives instructions to the employees working under him, provide guidance and motivates them for their best performance. On the other hand, Mr. Sawed takes effort to harmonize the work done by the employees of different departments while achieving organisational goal. Mr. Desai is looking after the arrangement of required resources the business organization.
Mention the name of employee engaged in following functions :
(i) Organisation
(ii) Direction
(iii) Coordination
Answer:
(i) Mr Desai is engaged in the organising function as he is looking after arrangement of required resources for the business organisation.
(ii) Mr. Lele is engaged in the function of directing as he gives instructions to the employees working under him, provides guidance and motivates them for their best performance.
(iii) Mr. Sayyed is engaged in the function of co-ordination as he takes effort to harmonize the work done by the employees of different departments.

4. Distinguish between

Question 1.
Planning and Organising
Answer:

	Planning	Organising
1. Meaning	Planning is a management function that decides in advance what to do, how to do, when to do, where to do and who is to do it.	Organising refers to the process of putting together various resources and activities of the organisation into a system.
2. Objective	The objective of planning is to set the goals and choose the means to achieve those goals.	The main objective of organising is to identity and bring together all the resources.
3. Area of function	Planning involves setting objectives, identifying alternative courses of actions and selecting the best plan for the organisation.	Organising involves identifying the activities and grouping of relative activities of the organisation.
4. Order	Planning is the first and foremost function of management. It precedes every other function.	In organising function, internal as well as external factors are considered to make arrangement of resources.
5. Nature	Planning is continuous in nature. It is related with those resources which are required for achieving the targets.	Organising is related with all the available resources as they need to be properly arranged.
6. Levels of management	Top management is responsible for preparing planning for the activities of the entire organisation.	Usually, the function of organising is undertaken by the top level management and middle level management.

Question 2.
Organising and Staffing
Answer:

	Organising	Staffing
1. Meaning	Organising refers to the process of putting together various resources and activities of the organisation into a system.	Staffing is a process of recruitment through which competent employees are selected, properly trained, effectively developed and suitably rewarded.
2. Objective	The main objective of organising is to identify and bring together all the resources.	The main objective of the staffing is to obtain the most competent and efficient staff to improve the overall performance.
3. Area of function	Organising involves identifying the activities and grouping of relative activities of the organisation.	Staffing involves selection, recruitment, training, developing, promotion, transfer, etc. of employees.
4. Factors	In organising function, internal as well as external factors are considered to make arrangement of resources.	In staffing function, mostly internal factors such as human factor, finance, work load, etc. are considered.
5. Resources	Organising is related with all the available resources as they need to be properly arranged.	Staffing is related with human resources only.
6. Levels of management	Usually, the function of organising is undertaken by the top level management and middle level management.	Usually, the function of staffing is undertaken by the middle level management.

Question 3.
Staffing and Directing
Answer:

	Staffing	Directing
1. Meaning	Staffing is a process of recruitment through which competent employees are selected, properly placed and trained, effectively developed and suitably rewarded.	Directing means instructing, guiding, inspiring and motivating the subordinate employees so that their efforts result in the achievement of goals.
2. Objective	The main objective of the staffing is to obtain the most competent and efficient people to improve the overall performance.	The main objective of directing is to ensure that the employees at different levels accomplish their tasks according to plans.
3. Area of function	Staffing involves recruitment, selection, training, promotion, development, transfer, etc. of employees.	Directing involves guiding, instructing, inspiring, motivating and communicating with the subordinates.
4. Order	Staffing function follows organising as human resources are required in an organisation.	Directing function follows organising and staffing as direction is needed to guide and inspire the employees.
5. Targets	Targets of staffing include allocation of human resources to achieve better results.	Targets of direction include giving guidance and inspiration to employees to achieve better results.
6. Outcome	Staffing function helps to select right persons for right jobs at right time.	Directing function helps to maintain discipline among the staff.

Question 4.
Directing and Controlling

Question 5.
Co-ordination and Controlling
Answer:

	Co-ordination	Controlling
1. Meaning	Co-ordination refers to the process of developing harmony and integration of different activities to achieve common organisational goals.	Controlling is a managerial function that measures deviation of actual results from the standards set and takes necessary corrective actions.
2. Objective	The main objective of co-ordination is to ensure unify of efforts of the employees and smooth functioning of the organisation.	The main objective of controlling is to ensure that goals or targets must be accomplished as per plan.
3. Area of function	Co-ordination involves efforts of top level, middle level and lower level management.	Controlling involves fixation of standard, measurement of actual performance and finding deviations taking corrective actions to improve performance.
4. Factors	In co-ordinating function only internal factors are considered to create unity of action.	In controlling function internal as well as external factors are taken care for taking corrective actions.
5. Resources	Co-ordination is related with human resources only.	Controlling is related with all the resources as it helps to achieve the given targets.
6. Levels of management	All levels of management are responsible for the co-ordination function to achieve given targets.	Top level management and middle level managements are responsible for controlling of organisational activities.

Question 6.
Planning and Controlling
Answer:

	Planning	Controlling
1. Meaning	Planning is a management function that decides in advance what to do, how to do, when to do, where to do and who is to do it.	Controlling is a managerial function that measures deviation of actual performance from the standards set and takes corrective actions.
2. Objective	The main objective of planning is to set the goals and choose the means to achieve those goals.	The main objective of controlling is to ensure that goals or targets must be accomplished as per plan.
3. Area of function	Planning involves setting objectives, identifying alternative courses of actions and selecting the best plan for the organisation.	Controlling involves fixation of standard, measurement of actual performance and finding deviations taking corrective actions to improve performance.
4. Order	In the sequence of managerial functions, planning is the first and foremost function.	In the sequence of managerial functions, controlling is the last function of the management.
5. Resources	Planning is related with those resources which are required for achieving the targets.	Controlling is related with all the resources as it helps to achieve the given targets.
6. Levels of management	Top management is responsible for preparing planning for the activities of the entire organisation.	Top level management and middle level managements are responsible for controlling of organisational activities.

Question 7.
Organising and Directing

Question 8.
Organising and Co-ordinating
Answer:

	Organising	Co-ordinating
1. Meaning	Organising refers to the process of putting together various resources and activities of the organisation into a system.	Co-ordination refers to the process of developing harmony and integration of different activities to achieve common organisational goals.
2. Objective	The main aim of organising is to identify and bring together all the required resources.	The main aim of co-ordination is to ensure unity of efforts of employees and smooth functioning of the organisation.
3. Area of function	Organising involves identifying the activities and grouping of relative activities of the organisation.	Co-ordination involves deliberate or consistent efforts by the management to create harmony and unity of action.
4. Factors	In organising function, internal as well as external factors are considered to make arrangement of available resources.	In co-ordinating function, only internal factors are considered to create unity of action.
5. Resources	Organising is related with all the resources which are required to be arranged in proper order.	Co-ordination is related with human resources only.
6. Levels of management	Top level management and middle level managements are responsible for the organising of resources to achieve desired objectives.	All levels of management are responsible for the co-ordination to achieve the given targets.

5. Answer in brief

Question 1.
Explain any five points of importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

Question 2.
Explain any five points of importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

Question 3.
Describe any five points of importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

Question 4.
Explain any five points of importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

Question 5.
Describe any five points of importance of ! coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

6. Justify the following statements

Question 1.
Planning is the first function of management.
Answer:
(1) Planning is the basic function of management. Every function of management is based on planning. Planning is an intellectual process of logical thinking and rational decision i making.

(2) Designing i.e. doing a proper planning and implementing it accordingly is the key of achieving the objectives of organisation.

(3) Planning means deciding in advance what to do, when to do, how to do, where to do and who is to do it. Thus, it is a detailed programme of future courses of action.

(4) Planning involves setting objectives, identifying alternative courses of action and selecting the best plan. It focuses on organisation’s objective and develop various course of action to achieve those goals.

Question 2.
Controlling is the last function of management.
Answer:
(1) It is important for am organisation to keep a check on whether things are moving as per plan or not. So controlling function comes as the last but indispensable function of management. The effectiveness of planning can be determined with the function of controlling.

(2) Controlling function helps in comparing the actual performance with the pre-determined standard and performance. It is the process of bringing about conformity of performance with planned action.

(3) Controlling function helps in measuring deviation, if any, identifies the course of deviation and suggests corrective measures. The process of controlling helps in formulation of future plans also.

(4) Controlling helps in checking and measuring performance at all the levels of management, as it compares and finds deviation, analyses the causes of deviation and suggests corrective measures. All planning may fail in the absence of proper controlling measures.

Question 3.
Organizing facilitates administration as well as operation of the organization.
Answer:
(1) Organising function is also called as ‘doing function’ i.e. putting the plan into action. Administration and operation both are doing function as organising is the process of putting together various resources and activities of the organisation into a system.

(2) Organising involves identifying the activities and grouping of relative activities of administration and operational department.

(3) Organising function defines, departmentalizes and assigns activities so that they can be most effectively executed for the smooth flow of administration.

(4) Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. The duplication of work can be avoided and effective delegation becomes possible.

Question 4.
Right person at right job with right pay is the basic principle of staffing.
Answer:
(1) The main function of staffing is to select the right person for the right job with right pay. Selecting the right person for the right job brings efficiency and specialisation in the organisation.

(2) It also bring job satisfaction as adequate remuneration increases morale of the employees. Training and development programmes and job security are the factors which are important in providing job satisfaction.

(3) Proper selection of qualified, efficient and skilful work force is always an asset of the organisation. Proper selection of employees contributes in the higher efficiency and leads to long term positive effects in the organisation.

(4) With proper selection process, right persons for right jobs are placed and regularly appraised on merit basis. The criteria of appraised are duly communicated which brings peace and harmony in the organisation.

Question 5.
Co-ordination between different functions and all levels of management is the essence of organisational success,
Answer:
(1) Co-ordination is an integration of different activities which is essential for their smooth flow. It establishes harmony among all the activities of an organisation in achieving desired goals. Co-ordination will not exist unless efforts are taken at all levels of management.

(2) Co-ordination is the synchronization of the efforts of a group so as to provide unity of action for organisational goals. It is a hidden force which binds all other functions at all levels of management.

(3) In an organisation, a number of persons are working together to achieve a common goal. Their work is closely linked with each other. Co-ordination function brings all the group efforts together and harmonise them carefully.

(4) Co-ordination is orderly arrangement of group efforts to provide unity of action to achieve common goals. Co-operation, team work and higher efficiency level lead to attainment of goals and thus, it is the essence of organisational success.

7. Attempt the following

Question 1.
Explain the importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

Question 2.
Describe the importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

Question 3.
Explain the importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

Question 4.
Explain the importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

Question 5.
Describe the importance of coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

Question 6.
Explain the importance of controlling.
Answer:
Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(2) Making efficient utilisation of resources : By using various control techniques, managers can keep a close watch over the utilisation of human, physical and financial resources. They can prevent the misuse or wastage of resources and ensure proper utilisation of the same.

(3) Accuracy of standards : Proper and efficient control system help the management to check the standards set are accurate or not. This system also keeps check on the changes taking place in the organisation from time to time. Controlling functions are flexible to some extent. This in turn facilitates the organisation to review the standards by considering such changes.

(4) Motivates Employees : A good control system gives information in advance about the standard performance and discovers efficient and inefficient employees. Efficient employees may be given Financial rewards or incentives to motivate them further. The manager may recommend motivational measures in case it finds that deviations are due to insufficient motivation.

(5) Ensures order and discipline : An efficient and good control system ensures order and discipline in the organisation. It prevents and reduces unnecessary behaviour on the part of employees. Under this system, regular checking is done by the managers or departmental heads and preventive measures are taken against deviation or indiscipline.

8. Answer the following

Question 1.
Define the term Planning and explain the importance of planning.
Answer:
[A] Meaning : Planning is the fundamental and basic function of management. It is a process of setting goals and choosing the means to achieve these goals. Planning means deciding the future course of action which determines what is to be done, how to do it, when to do it, who is to do it and how results are to be evaluated. It is a detailed programme in which all activities to be performed in future are mentioned keeping in mind the objectives. Thus, it is an intellectual process of logical thinking and rational decision-making.

[B] Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(6) Helps in decision-making : Planning helps the management to achieve to take a rational decision and to select best alternatives by considering all positive and negative outcomes of all the alternatives the decisions are taken after selecting the best suitable alternatives a predefined goals.

(7) Useful is setting the standards for controlling: Planning sets the standards of performance to be achieved and which can be measured with the actual performance for find out about any deviation. Such deviation can be taken care by controlling steps. Thus, planning provides basis for maintaining discipline in an organisation.

(8) Facilitates co-ordination of all activities : Proper planning reduces the overlapping among all activities of business which are closely linked with each other. Planning interrelates such activities of all department work as per overall plan and thus management co-ordination is achieved.

(9) Facilitates other functions : Planning is the primary function of all the functions of management. Every organisational function is set to achieve the organisational goals at the planning stage. Other management functions such as organising, staffing, etc. cannot be undertaken till the plan is ready.

(10) Promotes innovative ideas : Planning is the basic function. The process of decision-making involves promotion of innovative ideas after critical
thinking. It is the most challenging activity for the management as it guides all future activities and actions of an organisation. In the end, these innovative plans result in attainment of the organisation goals.

Question 2.
What is Organising? Explain the importance of organising.
Answer:
[A] Meaning: Organising is the process of putting together various activities, resource and people into a system so that people work together for achieving planned objectives. Organising means arranging everything in an orderly manner. It means making arrangements like money, machinery, materials, man-power and other physical resources to achieve the predefined goals. The synchronization and combination of workforce, physical, financial and information resources in the process of organising.

[B] Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(6) Helps for effective administration : A sound organising structure facilitates in defining the right job to the right individual. Similarly, the functions, duties and role of each and every employee are well defined in the organising function. This facilitates effective administration and ultimately leads to efficient administration.

(7) Helpful for growth and diversification : Smooth and efficient functioning, clearly defined authority and responsibilities and smooth co-ordination leads to the growth of the organisation. Use of appropriate techniques of control brings efficiency and reduces wastages which ultimately leads to higher profitability of the organisation. All this is possible when the structure of the organisation is well defined.

(8) Creates sense of security: Organising function defines and clarifies the jobs, functions and roles, powers and authority assigned to every manager and employee. Clarity in job profile eliminates confusion and gives responsibility. It helps a lot in getting mental satisfaction and develops sense of security.

(9) Scope for innovation : The manager can use his talent, knowledge and experience to take decisions on various matters and problems. For instance, decision to adopt new technique of production in the organisation. Thus, his talent flourishes by adopting new changes in the methods of work.

(10) Optimum utilisation of resources : Organising function lays down the best possible uses of resources for a specific job. Thus, it is possible to use the available resources to their optimum level and thereby avoid wastage as well as their excessive use.

Question 3.
What do you mean by Staffing? Describe the importance of staffing.
Answer:
[A] Meaning : Right person at right job with right pay is the basic principle of staffing, Staffing is the process involved in attracting, identifying, assessing, recruiting, placing, evaluating and directing employees. It is recruitment, selection, development, training and compensation of employees. It is very challenging for the organisation to focus on best utilisation of workforce by using their talents and skills, retaining them and arranging training and t development programme.

[B] Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(7) Long term effect : Sub-functions of staffing, namely, proper selection, training, development, motivation, etc. help to achieve long-term benefits such as increase in productivity and efficiency, loyalty of customers and employees, etc.

(8) Essential contribution : The selection of employees should be based on the ability of the prospective candidates to meet the future challenges. Selection is based on the ability of the prospective employee so that organisation can meet the future challenges wisely. Therefore, in staff selection, the selectors should take into account the contribution of the employees in their future roles.

(9) Provides job satisfaction : A good staffing policy creates job satisfaction in the minds of the employees. For instance, proper placement of the individuals according to their knowledge, experience and aptitude, timely promotions, training etc. give job satisfaction. Fair remuneration and job security are the factors which are important in providing job satisfaction.

(10) Maintains harmony: Proper staffing policy helps to develop good labour relations. The performances of employees are regularly appraised and promotions are made on merits. Due to this, employees develop positive attitude towards the management which, in turn, helps to bring about peace and harmony in the organisation.

Question 4.
Give the meaning of Directing and explain the importance of directing.
Answer:
[A] Meaning : Directing is the process of instructing, guiding, inspiring, motivating and supervising the employees to achieve pre-determined organisational goals. It is a continuous function started at top level and flows through the lower level of an organisation. It is continued through out the tenure of an organisation. A few philosophers called it as ‘Life spark of an Enterprise. Director shows the correct path as well as guides the employees in solving the problems.

[B] Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(6) Efficient utilisation of resources : Constant instructions can be given to the subordinates to make the maximum use of the available resources and to make every possible effort to minimize the wastages of resources. Thus, effective direction helps in optimum use of available resources such as men, materials, money and methods which helps to reduce cost and increase profit.

(7) Creates team spirit : The supervisors through proper direction can guide, lead and motivate their subordinates to co-ordinate the activities. Thus, team spirit is created which helps the employees to perform their activities more efficiently and on time. This results in faster achievement of organisational goals.

(9) Increases efficiency level : Effective direction and guidance results in better performance of the employees. It also enables the managers and other superiors to guide the subordinates as the leader while performing their jobs.

(8) Exploring capabilities of individuals: Every employee in the organisation has certain capabilities and potential. Through proper direction, motivation and encouragement manager can utilise them to their optimum level to achieve organisational goals and increases efficiency of organisation.

(10) Co-operation : Co-operation between different departments from top level to the bottom level and among the people within the department is must. Co-operation is essential for the success and achievement of organisational goals and for smooth flow of all organisational activities.

Question 5.
What is Coordinating? Describe the importance of coordinating.
Answer:
[A] Meaning : Co-ordination as a function of management refers to the task of developing harmony between various sections of departments and between various departments of the organisation. Thus, co-ordination is a hidden force which binds all other functions of the management integrating the group activities to accomplish the organisational goal efficiency. As the work of each one is linked in an organisation is necessary in co-ordination.

[B] Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(6) Improve relations : Co-ordination brings develops good relations among the employees working at different levels of management. For instance, marketing department depends upon production department, production department : depends upon purchase department and so on. Proper co-ordination always helps employees to improve and build strong relations among the employees working in different departments.

(7) Leads to Higher Efficiency : Co-ordination facilitates the optimum use of physical and human resources. This leads to higher returns at lesser cost, thereby higher efficiency. Co-ordination ultimately leads to the optimum use of the resources, higher efficiency reduction in cost and reduction in wastages.

(8) Improves goodwill : Higher sales and higher profitability can be achieved due to synchronized efforts. It earns a name and goodwill in the corporate world. This leads to better value of shares in the stock exchange (market).

(9) Unity of direction : Co-ordinating function helps to bring together activities of different departments to achieve common goals and objectives of the organisation. Therefore, co¬ordination is needed to give proper direction to all the departments of the organisation.

(10) Specialisation : In every business organisation all departments are headed by qualified and specialised professionals in their respective field. The specialised knowledge of these departmental heads helps in various managerial decisions. Proper and efficient co-ordination among these professionals helps to achieve organisational goals (targets) as planned by the top management.

Question 6.
Define the term Controlling and explain the importance of controlling.
Answer:
[A] Meaning : Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes and suggest the corrective measures. It is performed by all levels of management. Controlling is an indispensable function at all levels of management.

[B] Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(6) Facilitates co-ordination : Every manager or superior co-ordinates the activities of subordinates towards the process of controlling. Controlling reveals the weak points where co¬ordination falls short, so that the management can take timely action.

(7) Psychological pressure : Efficient control system puts psychological pressure on the employees to perform better. Their performance is measured and compared with standards set from time to time. All the employees know that their performance will be evaluated and hence they put on their best to perform well.

(8) Ensures Organisational Efficiency and Effectiveness : Efficient and proper control system ensures organisational efficiency and ; effectiveness. The factors of controlling such as motivation for better performance, achievement of co-ordination in the performance and managers’ responsibility ensure that the organisation works i more efficiently.

(9) Build good Corporate image : An efficient controlling system helps to improve overall efficiency and quality of work. As a result organisation achieves its goals according set standards. This in turn helps to build a good corporate image and develops reputation of the business.

(10) Acts as a Guide : Controlling function provides set of standard performance. All levels of managers and employees work according to it. They follow these standards to achieve desired results. The steps taken for controlling an activity guide the management while planning any future activity.

OCM 12th Commerce Textbook Solutions Digest

12th OCM Chapter 1 Exercise Principles of Management Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Principles of Management 12th OCM Chapter 1 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 1 Principles of Management Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 1 Exercise Solutions

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

Question 1.
………………… was regarded as the Father of Scientific Management.
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler
Answer:
(b) F. W. Taylor

Question 2.
Principle of ……………… is based on ‘A place for everything and everything in its place.
(a) Discipline
(b) Order
(c) Equity
Answer:
(b) Order

Question 3.
Member of organization should receive orders from ………………..
(a) many superior
(b) one superior
(c) all superiors
Answer:
(b) one superior

Question 4.
Scalar chain means the hierarchy of …………….. from the top level to the lower level for the purpose of communication.
(a) discipline
(b) unity
(c) authority
Answer:
(c) authority

Question 5.
Taylor recommended total ……………….. foremen to control the various aspects of production.
(a) eight
(b) three
(c) two
Answer:
(a) eight

1. (B) Match the pairs

Group A	Group B
A) Henry Fayol	1) Eight Foremen
B) Principle of Unity of Direction	2) F.W. Taylor
C) Principles of Management	3) Proper division of all activities
D) Scientific Management Theory	4) general guidelines
E) Functional Organization	5) A place for everything and everything in its place
	6) One head-one plan
	7) Low wage rate
	8) Harmony between the employees and management
	9) German engineer
	10) Modern Management

Answer:

Group A	Group B
A) Henry Fayol	1) Modern Management
B) Principle of Unity of Direction	2) One head-one plan
C) Principles of Management	3) general guidelines
D) Scientific Management Theory	4) F.W. Taylor
E) Functional Organization	5) Eight Foremen

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

Question 1.
The study of movement of an employee as well as machine while completing particular task.
Answer:
Motion Study

Question 2.
The technique of observing and recording the time required by an employee to complete a given task.
Answer:
Time Study

Question 3.
Study consists of an organised, systematic and critical assessment of various activities.
Answer:
Work Study

Question 4.
The principle which deals with ‘to do work with innovative way’.
Answer:
Principle of Initiative

Question 5.
The principle which is based on ‘a place for everything and everything in its place’.
Answer:
Principle of Order.

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

Question 1.
The principles of management are universal in nature.
Answer:
True

Question 2.
Management principles are applied differently under different situations.
Answer:
True

Question 3.
Only some principles of management are important.
Answer:
False

Question 4.
Henry Fayol has given different techniques of management.
Answer:
False

Question 5.
F. W. Taylor has proposed 14 principles of management.
Answer:
False

Question 6.
Each member of organisation should receive orders only from one superior.
Answer:
True

1. (E) Find the odd one.

Question 1.
Principle of Authority and Responsibility, Motion Study, Principle of Division of Work, Principle of Discipline.
Answer:
Motion Study

Question 2.
Fatigue Study, Principle of Unity of Command, Work Study, Motion Study.
Answer:
Principle of unity of Command

1. (F) Answer in one sentence

Question 1.
What is principle of unity of command?
Answer:
Principal of unity of command implies that every employee should receive orders and instructions from one boss only and he should be responsible and accountable to him only.

Question 2.
What is standardization of tools and equipment?
Answer:
Standardisation of tools and equipment refers to providing the standard tools and equipment for production and maintaining standard working conditions and environment at the place of work.

Question 3.
What is differential wage rate?
Answer:
Differential wage rate means offering higher rate of wages to those employees who complete the work more than the standard quantity and lower rate of wages to those employees who perform below the standard fixed.

Question 4.
What is Subordination of Individual Interest into Organisational Interest?
Answer:
Subordination of individual interest into organisational interest means the interest of an individual must be given less importance than the interest of the organisation.

Question 5.
What is the meaning of principle?
Answer:
Principle means a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning.

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

Question 1.
Security in job always affects adversely on the efficiency of employees.
Answer:
Insecurity in job always affects adversely on the efficiency of employees.

Question 2.
Esprit de corps means ‘division is strength’.
Answer:
Esprit de corps means ‘unity is strength’.

Question 3.
Each member of organisation should receive orders from only one subordinate.
Answer:
Each member of organisation should receive orders from only one superior.

Question 4.
Decentralisation means concentration of powers and authorities at a specific position.
Answer:
Centralisation means concentration of powers and authorities at a specific position.

Question 5.
Management techniques are applied differently under different conditions.
Answer:
Management principles are applied differently under different conditions.

2. Explain the following terms/concepts

Question 1.
Motion Study
Answer:
(1) This is one of the important techniques f of scientific management developed by E W. Taylor. Motion study refers to the movements of employees, as well as movement of machine while completing . a particular task. The motion study helps the manager to know the movements required for a person to do a particular job.

(2) This study is useful to manager to eliminate the unnecessary movements or their sequence for doing the job. It also helps the manager to combine some actions or movements in the process. It increases efficiency and productivity of the employees and helps in reducing the wastage of time, raw material and improving the usefulness of resources.

Question 2.
Differential Piece Rate System.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(2) In differential piece wage rate plan, the. standard is determined for production by the management. The workers who produce more them the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.

(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

Question 3.
Fatigue Study
Answer:
The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

Question 4.
Time Study.
Answer:
(1) Time study is one of the important techniques of scientific management developed by E W. Taylor. Time study is useful to the manager to determine and record the time needed to complete a particular job or task. It is based on the speed of average worker.

(2) Under this technique of scientific management, every part of the entire work is considered in detail and the time required to complete each element of job or task is ascertained. On the basis of the time study, the manager determines the standard time required to complete a particular job. This also facilitates the manager to decide the remuneration to be paid and efficiency of the worker and to control the cost of work.

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

Question 1.
Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory. On this basis:
(i) Identify any one principle of management in above case.
(ii) What is the designation of Mrs. Naina in this organisations?
(iii) Who is responsible for overall planning of the organisation?
Answer:
(i) In the above case, principle of Division of work is identified.
(ii) The designation of Mrs. Naina is Human Resource Manager.
(iii) Mr. Harshad, an entrepreneur of eco-friendly utensils, is responsible for overall planning ; of the organisation.

Question 2.
In ‘Fine Diamonds Ltd.’ 200 employees are working in three shifts. In first shift 60 employees, in second shift 60 employees and in third shift 80 employees are working without sufficient breaks except lunch break and shift change break. No employee is able to complete the work in designated time due to inappropriate time management which results into delay for next shift employees.
(i) Identify which scientific principle needs to be followed by the company.
(ii) Suggest two scientific techniques which can be used for smooth flow of work in ‘Fine Diamonds Ltd.
(iii) Why the work is not being completed in time?
Answer:
(i) In the above case, Principle of scientific management called Science, Not Rule of Thumb needs to be followed.
(ii) Work study based on the technique of fatigue study and Scientific task setting can be used for smooth flow of work in ‘Fine Diamonds Ltd.’
(iii) Reasons for non-completion of work in time are:

Long working hours without sufficient breaks reduces the efficiency of labour.
Inappropriate time management (planning) done by the departmental head (Functional Manager) result into delay for next shift employees.
Standard required time and standard output are not defined by the manager or management of “Fine Diamonds Ltd.”

4. Answer in brief

Question 1.
Explain any five principles of management of Henry Fayol.
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

(2) Principle of Authority and Responsibility:
Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.
Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management 1

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Question 2.
Describe any four techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level:

Route clerk : Explains the movement of work from one machine to other.
Instruction clerk : Gives and records instructions to complete the work.
Time and cost clerk : Decides the time to complete the work and work out the cost.
Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

Gang Boss : Gets the actual work done from employees.
Speed Boss : Takes care that work is done in specified time.
Repair Boss : Manages security and maintenance of mechanism.
Inspector : Makes sure that work is completed as per specified standards.

5. Justify the following statements

Question 1.
Principles of management are flexible in nature.
Answer:
(1) Principles of management are the statements of fundamental truth which act as guidelines for managerial decision-making and action. They establish cause and effect relationship. They are evolved through observation, analysis and experiments.

(2) Principles of management although fundamental, are not rigid. They are flexible in nature in the sense they can be changed or modified according to the situation and requirements of the organisation. Managers can change these principles to suit the requirements of the organisation.

(3) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc. For instance, in the context of present business scenario, at many places the ‘family management has been substituted by professional management’.

(4) Modern business world is dynamic. The situations in a business enterprise keep on changing continuously. No two circumstances are identical. Principles of management can be changed, adjusted or modified and used in the enterprise as per its changing needs and requirements. By identifying problems of business changes will be accepted.

Question 2.
Management principles are helpful in optimum utilization of resources.
Answer:
(1) Materials or abstract qualities that a person or organisation uses to perform the work is called resources, e.g. tools, stocks, time, employees, etc. In every organisation, two types of resources are used and they are: (i) Physical resources such as materials, machines, money, etc. and (ii) Human resources i.e. manpower.

(2) The different types of resources are used in the organisation to manufacture or produce different types of goods and services. The resources are scarce in relation to their demand and therefore resources should not be wasted and misused. They should be used carefully and up to their optimum capacity.

(3) The basic aim and function of management are to make and maintain proper balance and allocate these resources by putting them to maximum possible use and control on wastage of resources. Through the use of different techniques and management principles, management maintains discipline and healthy working environment to establish cordial relationship with the employees.

(4) It helps to increase the efficiency level of employees and to manage the administration effectively, e.g. use of modern and standard tools and machineries. It also helps to increase quality, productivity and level of efficiency of human resources.

Question 3.
Principle of equity is important.
Answer:
(1) The principle of equity suggests that employer should give kind, fair, just and equal treatment to the employees. Managers should be kind, impartial and fair to their subordinates.

(2) The principle of equity further states that there should not be any discrimination between the employees while making the payment of wages. The employees working on the same level but in different departments should be paid same wages.

(3) The wages payable to employees should not depend on the departments but the level at which they are working, e.g. Foremen should be paid higher wages than that is paid to employees working under them.

(4) The principle of equity also states that there should not be any discrimination between the employees while distributing work between them. As far as possible, there should be equal distribution of work. Thus, equality in treatment of employees boosts the morale and develops a sense of belongingness among the employees. It helps to develop loyalty of employees towards organisation and avoid conflicts.

Question 4.
Taylor emphasized on standardization of tools and equipment.
Answer:
(1) Fredrick Winslow Taylor published Principles of Scientific Management. His primary objective was to increase efficiency of employees by scientifically designing jobs. According to his views, management problems should be solved through experiments and use of scientific techniques rather than rules of thumb and triad and error approach.

(2) Taylor had conducted many experiments at workplace and as a result of those experiments, he advocated standardisation of tools and equipment. Standard here, means a level of quality or achievement, especially a level that is acceptable.

(3) According to him, standardised working environment and standardised methods of production tools and equipment help to reduce spoilage and wastage of materials. This in turn reduces the overall cost of production.

(4) Similarly use of standardised tools and equipment increases efficiency of employees and also helps to reduce fatigue among the workers. This improves the quality of work.

Question 5.
Differential piece wage rate plan is necessary.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

6. Attempt the Following

Question 1.
Explain in detail any five Principles of Management given by Henry Fayol’s?
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

Question 2.
Describe different techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

Route clerk : Explains the movement of work from one machine to other.
Instruction clerk : Gives and records instructions to complete the work.
Time and cost clerk : Decides the time to complete the work and work out the cost.
Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

Gang Boss : Gets the actual work done from employees.
Speed Boss : Takes care that work is done in specified time.
Repair Boss : Manages security and maintenance of mechanism.
Inspector : Makes sure that work is completed as per specified standards.

Question 3.
Elaborate Principles of Scientific Management.
Answer:
The principles of scientific management are as follows:

Science, Not Rule of Thumb
Harmony, Not Discord
Mental Revolution
Co-operation, Not Individualism
Division of Responsibility
Development of employer and employees for greater efficiency and maximum prosperity

1. Science, Not Rule of Thumb : Rule of thumb method is based on personal judgements of the manager which should be substituted with the methods developed through scientific analysis of work. Taylor emphasised more on the use of scientific method for every small job. This principle related with selecting the best way of doing a work after scientific analysis. Under this method, standard required time and standard output are defined by the manager. This method is useful to save time and human energy, to get expected standard output and to increase organisational efficiency.

2. Harmony, Not Discord : This principle states that, in every organisation these should be proper co-ordination and harmonious relations between the management and employees. This will help in minimising conflicts between them and in achieving the goals of the organisation. The perfect understanding between employees and management is also helpful in creating healthy work environment. Organisation should also think about the maximum prosperity of the employees.

3. Mental Revolution : The concept of ‘mental revolution’ was introduced by Taylor. This principle highlights on the complete change in the attitude of the management and employees toward each other. Both should recognise their equal importance in the organisation. They should co-operate with each other to achieve goals or objectives of the organisation. This in turn will increase productivity and profits.

4. Co-operation, Not Individualism : This principle states that there should be mutual co-operation between employees and management. Co-operation, trust, team spirit, etc. are important to avoid internal competition and to create healthy working environment. Management should always appreciate and consider the suggestions given by the employees in decision-making process. The management should treat the employees as an integral part of the organisation in all respects. Employees should also resist themselves from going on strikes and making unacceptable or unnecessary demands from the management. Thus, they should see each other as two pillars of the organisation.

5. Division of Responsibility : This principle states that while dividing the work there should be’ corresponding division of responsibility between the managers and employees. Major planning should be done by the top and middle level management and employees should concentrate on its execution. The reporting of the jobs should be done by the subordinates as per the instructions given by their superiors. For the best performances, the management should always help, encourage and guide the employees.

6. Development of employer and employees for greater efficiency and maximum prosperity : Profitability and best performance of any organisation mostly depend on the skills, intelligence and capabilities of its employees. Arranging and providing training and development programmes for the employees at regular interval or whenever required are absolutely important. It helps to increase profitability of the organisation. Proper opportunity should be given to each ; employee to attain his highest efficiency and ; maximum prosperity.

Question 4.
Explain nature (characteristics) of principles of management.
Answer:
The nature (characteristics) of principles of management is (are) explained as follows:
(1) Universal application : Management principles are universal in nature. They are applicable to all types of organisations irrespective of the type, size or nature, e.g. government, college, hospital, bank. etc. Their application may have to be modified, but they are suitable for all kinds of organisations, whether in private sector or public sector. Similarly, principles of management are applicable to all levels of management. For instance, the principle of division of labour is applicable to all types of organisations.

(2) General guidelines : Management principles give general guidelines to tackle the organisational situations wisely and to solve the problems systematically. They are not rigid. Application of management principles depend upon the situation, size and nature of organisation, e.g., when we say according to principle of remuneration, the employees must be paid fair remuneration. The term ‘fair’ may vary as per nature, size and financial ability of the organisation.

(3) Principles are formed by practice and experiments : The management principles are developed gradually with thorough research work, experiments and systematic observations. The results of such observations and experiments are developed after their practice in different organisations.

(4) Flexibility : Management principles, although fundamental are not rigid statements. They have to be applied differently under various conditions. It is possible to make suitable changes in their application according to the requirement of the organisation. Thus, Management principles are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc.

(5) Behavioural in nature : Management is a teamwork or a group activity. Management principles aim at influencing individual efforts and directing them to achieve various objectives of the organisation. They are directed towards regulating human behaviour so that people give their best to the organisation. Thus, principles of management are designed to influence human behaviour.

(6) Cause and effect relationship : Management principles indicate cause and effect relationship. Each principle has a definite effect on the efficiency or working of management. For example, payment of good remuneration and incentives increases output. Similarly, effective advertisement given by the organisation increases the sale of a product.

(7) All principles are of equal importance : All the principles of management have equal importance and they also carry equal weightage with reference to their applicability in the organisation. For example, it cannot be said that the principle of division of labour is more important than the principle of unity of command or vice versa. Management principles are not static in nature. They are not absolute like principles of pure sciences like Chemistry, Mathematics, etc. They are the principles of social science. They are to be modified and applied according to the size and nature of the organisation, keeping in mind the requirements.

7. Answer the following questions

Question 1.
What are the techniques of scientific management? Explain in detail.
Answer:
The techniques of scientific management given by F. W. Taylor are explained as follows:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.

(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

Route clerk : Explains the movement of work from one machine to other.
Instruction clerk : Gives and records instructions to complete the work.
Time and cost clerk : Decides the time to complete the work and work out the cost.
Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

Gang Boss : Gets the actual work done from employees.
Speed Boss : Takes care that work is done in specified time.
Repair Boss : Manages security and maintenance of mechanism.
Inspector : Makes sure that work is completed as per specified standards.

(6) Differential Piece – Rate Wage Plan : Taylor suggested that discrimination should be made between efficient and less efficient workers. In this technique, the standard is determined (fixed) for production. The workers who produce more than the standard output are to be paid remuneration at higher rates and those who produce less them the standard quantity are to be paid at lower rate of wages. This technique encourages the employees to attain higher standard performance to earn higher wages.

Question 2.
Explain 14 principles of Henry Fayol in detail.
Answer:
Henry Fayol, the Father of Modern Management developed the following 14 principles:
principles of management:

Principle of Division of Work
Principle of Authority and Responsibility
Principle of Discipline
Principle of Unity of Command
Principle of Unity of Direction
Principle of Subordination of Individual Interest to Organisational Interest
Principle of Centralisation
Principle of Remuneration
Principle of Scalar Chain
Principle of Order
Principle of Equity
Principle of Stability of Tenure
Principle of Initiative
Principle of Esprit de corpse (Team Work)

1. Principle of Division of Work: According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

2. Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task w12. Principle of Stability of Tenure:ithin a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

3. Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

4. Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.
Maharashtra Board OCM 12th Commerce Solutions Chapter 1 Principles of Management 3

5. Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

6. Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

7. Principle of Centralisation: Centralisation means concentration of authority or power in a few hands at the top level. As number of employees is less in a smaller organisation there is centralisation of authority. Decentralisation means even distribution of authority or power at every level of management. As number of employees and levels of management are more in a larger organisation, there must be decentralisation of some authorities for its smooth functioning. According to Fayol, there must be a proper balance between centralisation and decentralisation, depending upon the nature and size of an organisation.

8. Principle of Remuneration: According to this principle, the employees must be paid fair and appropriate remuneration to keep them satisfied financially and to retain them within the organisation for longer period of time. While fixing remuneration various factors such as the skill, knowledge, expertise, tenure, cost of living, market trend, profitability of organisation, etc. should be considered. It boosts the morale of employees and increases efficiency and productivity.

9. Principle of Scalar Chain: According to Fayol, in the organisation decisions, orders, instructions, messages, etc. must be passed through a chain, i.e. from the general manager to the respective functional manager, then to the supervisor, then to the foreman and then ultimately, to the workers. Similarly, suggestions, information, grievances, etc., must flow from the worker in the upward direction. This is called Scalar Chain. Sometimes, following a scalar chain becomes a lengthy process. In such cases, ‘Gang Plank’ is followed which permits speedy and direct communication between the employees working at the same level of authority. However, for this, permission of the proper authority is necessary.

10. Principle of Order: The principle of order is based on ‘a place for everything and everything in its place’. According to this principle, in every organisation there should be proper, systematic and orderly arrangement of men and materials. There should be a fixed place to keep every material and thing used in the organisation and a fixed place or a seat for every employee. The purpose of this principle is to reduce wastage of time and energy. This principle emphasises more I on the proper and optimum utilisation of physical and human resources.

11. Principle of Equity: This principle states that the management should be fair as well as friendly to the subordinate staff. There should be no discrimination of employees in regard to division of work, delegation of the authorities, deciding the monetary terms, etc. This principle also states that the remuneration should depend not on the department but at the level at which employees are working, It means the employees working on the same level but in separate departments must be paid equal wages. It will also help in avoiding conflicts in an organisation.

12. Principle of Stability of Tenure: According to this principle, at the time of recruitment of employees, the management should assure them about the stability of tenure (i.e. job security). This creates a sense of belonging among the employees. Job security increases efficiency of the employees and minimises employees turnover ratio.

13. Principle of Initiative: Initiative means to do the work in an innovative way in his or her personal capacity. According to this principle, managers should give freedom, opportunity or encourage the subordinates to take initiative while working on given job. Their suggestions and ideas should be invited before framing the plan. This can work as a morale booster for the employees and leads to timely achievement of organisational goals.

14. Principle of Esprit de corpse (Team Work): ‘Esprit de corpse’ means union is strength. This principle integrates and co-ordinates the individual and group efforts. It emphasizes the spirit of teamwork. The manager as a leader should create the feeling of team spirit and understanding among the various groups. When entire group of employees works as a team, their efforts get directed towards realising the goals of the organisation.

OCM 12th Commerce Textbook Solutions Digest

12th Secretarial Practice Solutions Chapter 1 Exercise Introduction to Corporate Finance Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Marketing 12th Secretarial Practice Solutions Chapter 1 Solutions Maharashtra Board

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 1 Introduction to Corporate Finance Textbook Exercise Questions and Answers.

Class 12 Secretarial Practice Solutions Chapter 1 Exercise Solutions

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
_____________ is related to money and money management.
(a) Production
(b) Marketing
(c) Finance
Answer:
(c) Finance

Question 2.
Finance is the management of _____________ affairs of the company.
(a) monetary
(b) marketing
(c) production
Answer:
(a) monetary

Question 3.
Corporation finance deals with the acquisition and use of _____________ by business corporation.
(a) goods
(b) capital
(c) land
Answer:
(b) capital

Question 4.
Company has to pay _____________ to government.
(a) taxes
(b) dividend
(c) interest
Answer:
(a) taxes

Question 5.
_____________ refers to any kind of fixed assets.
(a) Authorised capital
(b) Issued capital
(c) Fixed capital
Answer:
(c) Fixed capital

Question 6.
_____________ refers to the excess of current assets over current liabilities.
(a) Working capital
(b) Paid-up capital
(c) Subscribed capital
Answer:
(a) Working capital

Question 7.
Manufacturing industries have to invest _____________ amount of funds to acquire fixed assets.
(a) huge
(b) less
(c) minimal
Answer:
(a) huge

Question 8.
When the population is increasing at a high rate, certain manufacturers find this as an opportunity to _____________ business.
(a) close
(b) expand
(c) contract
Answer:
(b) expand

Question 9.
The sum of all _____________ is gross working capital.
(a) expenses
(b) current assets
(c) current liabilities
Answer:
(b) current assets

Question 10.
_____________ means mix up of various sources of funds in desired proportion.
(a) Capital budgeting
(b) Capital structure
(c) Capital goods
Answer:
(b) Capital structure

1B. Match the pairs:

Question 1.
Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 1 Introduction to Corporate Finance 1B Q1
Answer:

Group ‘A’	Group ‘B’
(a) Capital budgeting	(6) Investment decision
(b) Fixed capital	(5) Fixed assets
(c) Working capital	(1) Sum of current assets
(d) Capital structure	(9) Mix up various sources of funds
(e) Corporate finance	(2) Deals with acquisition and use of capital

1C. Write a word or term or a phrase that can substitute each of the following statements:

Question 1.
A key determinant of the success of any business function.
Answer:
Finance

Question 2.
The decision of the finance manager ensures that the firm is well-capitalized.
Answer:
Financing decision

Question 3.
The decision of the finance manager to deploy the funds in a systematic manner.
Answer:
Investment decision

Question 4.
Capital is needed to acquire fixed assets that are used for a longer period of time.
Answer:
Fixed capital

Question 5.
The sum of current assets.
Answer:
Gross working capital

Question 6.
The excess of current assets over current liabilities.
Answer:
Networking capital

Question 7.
The process of converting raw material into finished goods.
Answer:
Production cycle

Question 8.
The boom and recession cycle in the economy.
Answer:
Economic Trend

Question 9.
The ratio of different sources of funds in the total capital.
Answer:
Capital Structure

Question 10.
The internal source of financing.
Answer:
Retained earnings

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

Question 1.
Finance is related to money and money management.
Answer:
True

Question 2.
The business firm gives a green signal to the project only when it is profitable.
Answer:
True

Question 3.
Corporate finance brings coordination between various business activities.
Answer:
True

Question 4.
Fixed capital is also referred as circulating capital.
Answer:
False

Question 5.
Working capital stays in the business almost permanently.
Answer:
False

Question 6.
The business will require huge funds if assets are acquired on a lease basis.
Answer:
False

Question 7.
The business dealing in luxurious products will require a huge amount of working capital.
Answer:
True

Question 8.
A firm with large-scale operations will require more working capital.
Answer:
True

Question 9.
Liberal credit policy creates a problem of bad debt.
Answer:
True

Question 10.
Financial institutions and banks cater to the working capital requirement of the business.
Answer:
True

1E. Find the odd one.

Question 1.
Land and Building, Plant and Machinery, Cash.
Answer:
Cash

Question 2.
Debenture Capital, Equity Share Capital, Preference Share Capital.
Answer:
Debenture Capital

Question 3.
Fixed Capital, Capital Structure, Working Capital.
Answer:
Capital Structure

1F. Complete the sentences.

Question 1.
Initial planning of capital requirement is made by _____________
Answer:
entrepreneur

Question 2.
When there is boom in economy, sales will _____________
Answer:
increase

Question 3.
The process of converting raw material into finished goods is called _____________
Answer:
production cycle

Question 4.
During recession period sales will _____________
Answer:
decrease

1G. Select the correct option from the bracket.

Question 1.
Maharashtra Board Class 12 Secretarial Practice Solutions Chapter 1 Introduction to Corporate Finance 1G Q1
(To have the right amount of capital, deploy funds in a systematic manner, fixed capital, working capital, capital structure, carry dividend at a fixed rate)
Answer:

Group ‘A’	Group ‘B’
(a) Financing decision	(1) To have the right amount of capital
(b) Fixed capital	(2) Longer period of time
(c) Investment decision	(3) Deploy funds in a systematic manner
(d) Working capital	(4) Circulating capital
(e) Combination of various sources of funds	(5) capital structure

1H. Answer in one sentence.

Question 1.
Define corporate finance.
Answer:
Corporate finance deals with the raising and using of finance by a corporation.

Question 2.
What is fixed capital?
Answer:
Fixed capital is the capital that is used for buying fixed assets that are used for a longer period of time in the business eg. Capital for plant and machinery etc.

Question 3.
What is working capital?/Define working capital.
Answer:
Working capital is the capital that is used to carry out day-to-day business activities and takes into consideration all current assets of the company.
Eg: for building up inventories.

Question 4.
What is the production cycle?
Answer:
The process of converting raw material into finished goods is called the production cycle.

Question 5.
Define capital structure.
Answer:
Capital structure means to mix up various sources of funds in the desired proportion. To decide capital structure means to decide upon the ratio of different types of capital.

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

Question 1.
Finance is needed to pay dividends to debenture holders.
Answer:
Finance is needed to pay interest to debenture holders.

Question 2.
When there is a recession in the economy sales will increase.
Answer:
When there is a boom in the economy sales will increase.

Question 3.
Share is an acknowledgment of a loan raised by the company.
Answer:
A debenture is an acknowledgment of a loan raised by a company.

Question 4.
Equity shares carry dividends at a fixed rate.
Answer:
Preference shares carry dividends at a fixed rate.

2. Explain the following terms/concepts.

Question 1.
Financing decision
Answer:
A financing decision is a right decision that is made by a finance manager of any corporation ensuring that the firm is well capitalized with the right combination of debt and equity, having access to multiple choices of sources of financing.

Question 2.
Investment decision
Answer:
Investment decisions mean capital budgeting i.e. finding investments and deploying them successfully in the business for greater profits.

Question 3.
Fixed capital
Answer:
Fixed capital is the capital that is used for buying fixed assets that are used for a longer period of time in the business. These assets are not meant for. resale. Examples of fixed capital are capital used for purchasing land and building, furniture, plant, and machinery, etc.

Question 4.
Working Capital
Answer:
Working capital is the capital that is used to carry out day-to-day business activities. It takes into consideration all current assets, of the company. It also refers to ‘Gross Working Capital’.
Examples of working capital are

for building up inventories.
for financing receivables.
for covering day-to-day operating expenses.

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

1. The management of ‘Maharashtra State Road Transport Corporation’ wants to determine the size of working capital.

Question (a).
Being a public utility service provider will it need less working capital or more?
Answer:
MSRTC being a public utility service provider will need less working capital because of a continuous flow of cash from there, customers thus liabilities are taken care of.

Question (b).
Being a public utility service provider, will it need more fixed capital?
Answer:
Being a public utility service provider MSRTC will need a huge amount of funds to acquire fixed assets thus it will need more fixed capital.

Question (c).
Give one example of a public utility service that you come across on a day-to-day basis.
Answer:
The Indian Railways.

2. A company is planning to enhance its production capacity and is evaluating the possibility of purchasing new machinery whose cost is ₹ 2 crore or has alternative of machinery available on a lease basis.

Question (a).
What type of asset is machinery?
Answer:
Machinery is a Fixed Asset.
A fixed asset may be held for 5, 10 or 20 years and more. But if assets are acquired on a lease or rental basis, then less amount of funds for fixed assets will be needed for business.

Question (b).
Capital used for the purchase of machinery is fixed capital or working capital.
Answer:
Capital used for the purchase of machinery is fixed capital.

Question (c).
Does the size of a business determine the fixed capital requirement?
Answer:
Yes. Where a business firm is set up to carry on large-scale operations, its fixed capital requirements are likely to be high.

4. Distinguish between the following.

Question 1.
Fixed Capital and Working Capital
Answer:

Points	Fixed Capital	Working Capital
1. Meaning	Fixed capital refers to any kind of physical asset, a portion of total capital that is invested in fixed assets.	Working capital refers to the sum of current assets or gross working capital.
2. Nature	It stays in the business almost permanently.	Working capital is circulatory capital. It keeps changing.
3. Purpose	It is invested in fixed assets such as land, building, equipment, etc.	Working capital is invested in short-term assets such as cash, account receivable, inventory, etc.
4. Sources	Fixed capital funding can come from selling shares, debentures, bonds, long-term loans, etc.	Working capital can be funded with short-term loans, deposits, trade credit, etc.
5. Objectives of investors	Investors invest money in fixed capital hoping to make a future profit.	Investors invest money in working capital for getting immediate returns.
6. Risk	Investment in fixed capital implies more risk.	Investment in working capital is less risky. Eg. Land, building, plant and machinery
7. Decisions	Decisions relating to fixed capital investment are generally made by top-level management. Eg. Cash, bills receivable, inventories, cash at the bank	Decisions relating to working capital needs are generally made by middle-level or lower-level management.

5. Answer in brief:

Question 1.
Define capital structure and state its components.
Answer:
Definition: R.H. Wessel “The long term sources of funds employed in a business enterprise.”
John H. Hampton “A firm’s capital structure is the relation between the debt and equity securities that make up the firm’s financing of its assets.” Thus, the term capital structure means security mix. It refers to the proportion of different securities raised by a firm for long-term finance.

Components/Parts of Capital Structure:
There are four basic components of capital structure. They are as follows:
(i) Equity Share Capital:

It is the basic source of financing activities of the business. Equity share capital is provided by equity shareholders.
They buy equity shares and help a business firm to raise necessary funds. They bear the ultimate risk associated with ownership.
Equity shares carry dividends at a fluctuating rate depending upon profit.

(ii) Preference Share Capital:

Preference shares carry preferential rights as to payment of dividends and have priority over equity shares for return of capital when the company is liquidated.
These shares carry dividends at a fixed rate.
They enjoy limited voting rights.

(iii) Retained earnings:

It is an internal source of financing.
It is nothing but ploughing back of profit.

(iv) Borrowed capital: It comprises of the following:

Debentures: A debenture is an acknowledgment of a loan raised by the company. The company has to pay interest at an agreed rate.
Term Loan: Term loans are provided by the bank and other financial institutions. They carry fixed rate of interest.

Question 2.
State any four factors affecting fixed capital requirements?
Answer:
(i) Nature of business:

The nature of business certainly plays a role in determining fixed capital requirements. They need to invest a huge amount of money in fixed assets.
e.g. Rail, road, and other public utility services have large fixed investments.
Their working capital requirements are nominal because they supply services and not the product.
They deal in cash sales only.

(ii) Size of business:
The size of a business also affects fixed capital needs. A general rule applies that the bigger the business, the higher the need for fixed capital. The size of the firm, either in terms of its assets or sales, affects the need for fixed capital.

(iii) Scope of business:
Some business firms that manufacture the entire range of their production would require a huge investment in fixed capital. However, those companies that are labour intensive and who do not use the latest technology may require less fixed capital and vice versa.

(iv) Extent of lease or rent:
Companies who take their assets on a lease basis or on a rental basis will require less amount of funds for fixed assets. On the other side, firms that purchase assets will naturally require more fixed capital in the initial stages.

Question 3.
What are Corporate Finance and State’s two decisions which are basic of corporate finance?
OR
Write short note on Corporate Finance
Answer:
Corporate finance deals with the raising and using of finance by a corporation. It includes various financial activities like capital structuring and making investment decisions, financial planning, capital formation, and foreign capital, etc. Even financial organisations and banks play a vital role in corporate financing.

Henry Hoagland expresses, “Corporate Finance deals primarily with the acquisition and use of capital by the business corporation”.

Following two decisions are the basis of corporate finances:
(i) Financing decision:
Every business firm must carefully estimate its capital needs i.e. working capital and fixed capital. The firm needs to mobilize funds from the right sources also maintaining the right combination of debt capital and equity capital. For this balance, a company may go for or raise equity capital or even opt for borrowed funds by way of debentures, public deposits term loans, etc. to raise funds.

(ii) Investment decision:
Once the capital needs are accessed, the finance manager needs to take correct decisions regarding the use of the funds in a systematic manner, productively, using effective cost control measures to generate high profits. Finding investments through proper decisions and using them successfully in business is called ‘capital budgeting

6. Justify the following statements.

Question 1.
The firm has multiple choices of sources of financing.
Answer:

Business firms require finance in terms of working capital and fixed capital.
Funds are required at different stages of business.
The company can raise funds from various sources i.e. from internal and external sources.
Internal sources could be cash inflows on sales turnover, income from investments, and retained earnings.
External sources can be obtained for short-term requirements through cash credit, overdraft trade credit, discounting bills of Exchange issues of commercial paper, etc.
For long-term needs, a firm can meet its financing needs through the issue of shares, debentures, bonds, public deposits, etc. Thus, it is rightly said that the firm has multiple choices of sources of financing.

Question 2.
There are various factors affecting the requirements of fixed capital.
Answer:

Fixed capital being long-term capital is required for the development and expansion of the company.
The nature and size of a business have a great impact on fixed capital. Manufacturing businesses require huge fixed capital whereas trading organizations like retailers require less fixed capital.
Methods of acquiring assets on rentals or on a lease/installment basis will require less amount of fixed assets.
If fixed assets are available at low prices and concessional rates then it would reduce the need for investment in fixed assets.
International conditions and economic trends like a boom period will require high investment in fixed assets and a recession will lead to less requirement.
Similarly, consumer preferences, competition, and highly demanded goods and services will require a large amount of fixed capital. E.g. Mobile phones. Thus, it is rightly said that there are various factors affecting the requirements of fixed capital.

Question 3.
Fixed capital stays in the business almost permanently.
Answer:
Factors determining fixed capital requirements are:

Fixed capital refers to capital invested for acquiring fixed assets.
These assets are not meant for resale.
Fixed capital is capital used for purchasing land and building, furniture, plant, and machinery, etc.
Such cap al is usually required at the time of the establishment of a new company.
Existing companies may also need such capital for their expansion and development, replacement of equipment, etc.
Modern industrial processes require the increased use of heavy automated machinery. Thus, it is rightly said that fixed capital stays in the business almost permanently.

Question 4.
Capital structure is composed of owned funds and borrowed funds.
Answer:

Capital structure means to mix up of various sources of funds in desired proportions.
To decide capital structures means to decide upon the ratio of different types of capital.
A firm’s capital structure is the relation between the debt and equity securities that make up the firm’s financing of its assets.
The capital structure is composed of own funds which include share capital, free serves, and surplus, and borrowed funds which represent debentures, bank loans, and long-term loans provided by financial institutions.
Thus capital structure = Equity share capital + preference share capital + reserves + debentures.
Thus, it is rightly said that capital structure is composed of owned funds and borrowed funds.

Question 5.
There are various factors affecting the requirement of working capital.
Answer:

The nature and size of a business affect the requirement of working capital. Trading or merchandising firms and big retail enterprises need a large amount of capital compared to small firms which need a small amount of working capital.
If the period of the production cycle is longer then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.
During the boom period sales will increase leading to increased investment in stocks, thus requiring additional working capital and during the recession, it is vice versa.
Along with the expansion and growth of the firm or company in terms of sales and fixed assets, the requirement of working capital increases.
If there is proper coordination, communication, and co-operation between production and sales departments then the requirement of working capital is less.
A liberal credit policy increases the possibility of bad debts and in such cases, the requirement of working capital is high, whereas a firm making cash sales requires less working capital.

7. Answer the following questions.

Question 1.
Discuss the importance of Corporate Finance?
Answer:
Corporate finance deals with the raising and utilizing of finance by a corporation. It also deals with capital structuring and making investment decisions, financial planning of capital, and the money market. The finance manager should ensure that:
The firm has adequate finance and it’s being utilized effectively;
Generate minimum return for its owners.

The importance of Corporate Finance are as follows:
(i) Helps in decision making:
Most important decisions of business enterprises are made on the basis of availability of funds, as without finance any function of business enterprise is difficult to be performed independently. Obtaining the funds from the right sources at a lower cost and productive utilization of funds would lead to higher profits. Thus corporate finance plays a significant role in the decision-making process.

(ii) Helps in raising capital for a project:
A new business venture needs to raise capital. Business firms can raise funds by issuing shares, debentures, bonds or even by taking loans from the banks.

(iii) Helps in Research and Development
Research and Development need to be undertaken by firms for growth and expansion of business and to enjoy a competitive advantage. Research and development mostly involve lengthy and detailed technical work for the execution of projects. Through surveys and market analysis etc. companies may have to upgrade old products or develop new products to face competition and attract consumers. Thus the availability of adequate finance helps to generate high efficiency.

(iv) Helps in the smooth running of the business firm:
A smooth flow of corporate finance is important to pay the salaries of employees on time, pay loans, and purchase the required raw materials. At the same time finance is needed for sales promotion of existing products and more so for the launch of new products effectively.

(v) Brings co-ordination between various activities:
Corporate finance plays a significant role in the coordination and control of all activities in an organization. Production activity requires adequate finance for the purchase of raw materials and meeting other day-to-day financial requirements for the smooth running of the production unit. If the production increases, sales will also increase by contributing the income of the concern and profit to increase.

(vi) Promotes expansion and diversification:
Corporate finance provides money for the purchase of modern machines and sophisticated technology. Modern machines and technology help to improve the performance of the firm in terms of profits. It also helps the firm to expand and diversify the business.

(vii) Managing risk:
Companies have to manage several risks such as sudden fall in sales, loss due to natural calamity, loss due to workers strikes, change in government policies, etc. Financial aids help in such situations to manage such risks.

(viii) Replace old assets:
Assets like plants and machinery have become old and outdated over the years. Finance is required to purchase new assets or replace the old assets with new assets having new technology and features.

(ix) Payment of dividend and interest:
Finance is needed to pay the dividend to shareholders, interest to creditors, bank, etc.

(x) Payment of taxes/fees:
The company has to pay taxes to the government such as Income tax, Goods and Service Tax (GST), and fees to the Registrar of Companies on various occasions. Finance is needed for paying these taxes and fees.

Question 2.
Discuss the factors determining working capital requirements?
Answer:
Working Capital = Current Assets – Current Liabilities.
In other words, it is also called ‘Circulating Capital’. Also, refer to ‘GROSS WORKING CAPITAL.’ Management needs to determine the size of working capital with reference to the economic environment and other aspects within the business firm.

Factors determining/influencing working capital requirements are as follows:
(i) Nature of Business:
The working capital requirements are highly influenced by the nature of the business. Trading/ merchandising forms concerned with the distribution of goods require a huge amount of working capital to maintain a large stock of the variety of goods to meet customers’ demands are extend credit facilities to attract them. Whereas public utility concerns have to maintain small working capital because of a continuous flow of cash from their customers.

(ii) Size of business:
The size of a business also affects the requirements of working capital. Size of the firm refers to the scale of operation i.e. a firm with large scale operations will require more working capital and vice versa.

(iii) Volume of Sales:
The volume of sales and the size of the working capital have a direct relationship with each other. If the volume of sales increases there is an increase in the amount of working capital.

(iv) Production cycle:
The process of converting raw material into finished goods is called the ‘production cycle’. If the production cycle period is longer, the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.

(v) Business cycle:
When there is a boom in the economy, sales will increase resulting in to increase in investment in stock. This will require additional working capital. During a recession period, sales will decline and consequently, the need for working capital will also decrease.

(vi) Terms of purchases and sales:
If credit terms of purchase are favourable and terms of sales are less liberal, then the requirement of cash will be less. Thus, the working capital requirement will be reduced.
A firm that enjoys more credit facilities needs less working capital. On the other hand, if a firm does not get proper credit for purchases and adopts a liberal credit policy for sales if requires more working capital.

(vii) Credit Control:
Credit control includes the factors such as volume of credit sales, the terms of credit sales, the collection policy etc. A firm with a good credit control policy will have more cash flow reducing the working capital requirement. Whereas if the firm’s credit policy is liberal there would be more requirements of the working capital.

(viii) Growth and Expansion:
Those firms which are growing and expanding at a rapid pace need more working capital compared to those firms which are stable in their growth.

(ix) Management ability:
The requirement of working capital is reduced if there is proper coordination in the production and distribution of goods. A firm stocking on heavy inventory calls for a higher level of working capital.

(x) External factors:
If the financial institutions and banks provide funds to the firm as and when required, the need for working capital is reduced.

11th OCM Chapter 4 Exercise Forms of Business Organisation – I Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Forms of Business Organisation – I 11th OCM Chapter 4 Solutions Maharashtra Board

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

Class 11 OCM Chapter 4 Exercise Solutions

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:

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

Question 2.
Partnership Firm.
Answer:

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

Question 3.
Joint Hindu Family Firm.
Answer:

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

Question 4.
Co-operative Society.
Answer:

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

Question 5.
Joint Stock Company.
Answer:

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

Question 6.
Karta.
Answer:

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

Question 7.
Managing Committee.
Answer:

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

Question 8.
Nominal Partner.
Answer:

A partner who only lends his name and reputation to the partnership firm is called as nominal partner.
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.
He does not contribute to the capital of the business.
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:

One of the main features of a sole traders is unlimited liability.
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.
There is no distinction between business property and private property in case of a sole trading concern.
Thus, liability of a sole trader is unlimited.

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

The Karta is the eldest or senior most person in the family business.
Karta has unlimited liability.
He has the entire decision making power and he is not binding on the views of the co-parceners.
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:

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.
The main objective of a co-operative organization is not to make profit but to give service to its members.
The co-operative society is formed for the welfare of the people.
Co-operative societies are rightly called as service oriented organization. Maximisation of profit is not the aim.
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:

A Joint Stock Company is an incorporated association.
It has a legal status independent of its members.
A Joint Stock Company has large membership. There is no maximum limit.
Shares are available in the open market.
Large number of investors are interested in buying shares.
Shares are freely transferable and members have limited liability.
Thus, a Joint Stock Company can raise huge capital.
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:

In a Joint Hindu Family Business, there are two types of members – Karta and Co-parceners.
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.
The liability of co-parceners is limited upto the extent of their share in the Joint Hindu Family Business.
The personal property of co-parceners is not used for payment of the liability of the Joint Hindu Family business.
Thus, the liability of Co-parcerners is limited in ‘Joint Hindu Family Business’.

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

Sole trading concern is owned by only one person.
He uses his own skill and intelligence for his business.
Sole trader brings capital from his own savings. He may borrow from friends and relatives. However, capital collected is limited.
He alone takes decisions of business. Therefore, managerial ability is also limited.
Because of limited capital and limited managerial ability, it is not possible to expand business beyond a certain limit.
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:

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.
‘One member One vote’ is the principle followed by Co-operative Societies.
All these denote that it follows democratic principles.
Thus, Co-operative society follows democratic principles.

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

The shareholders are the owners of the company. The company is managed by the Board of Directors who are elected representatives of the shareholders.
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.
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:

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

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

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

Active partner is also called a working partner. He brings in capital and also takes active part in the business of the firm.
He has unlimited liability and shares the profits and losses of the firm. He is also called a managing partner.
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.

(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.

(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:
Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I 1
(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.

(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.

(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.

(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.

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.

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.

OCM 11th Commerce Textbook Solutions Digest

11th OCM Chapter 3 Exercise Small Scale Industry and Business Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Small Scale Industry and Business 11th OCM Chapter 3 Solutions Maharashtra Board

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

Class 11 OCM Chapter 3 Exercise Solutions

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:

Inadequate Finance
Problem of Raw Material
Labour Problem
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:

There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems.
Internal Problems are like unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernisation, etc.
External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc.
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.
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:

The production of Small Scale Industries is less.
General unskilled labours are employed.
As production is less raw material requirement is also less.
In a place like India, where capital formation is low, small business is suitable.
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.
Thus, SSI requires less amount of capital.

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

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

A micro enterprise, where the investment in plant and machinery is less than Rs 25 lakh.
A small enterprise, where the investment is more than Rs 25 lakh but less than Rs 5 crore.
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:

A micro enterprise, where the investment in equipment is less than Rs 10 lakh.
A small enterprise, where the investment in equipment is more than Rs 10 lakh but less than Rs 2 crores.
A mediuiri enterprise where the investment in equipment is more than Rs 2 crore but less than Rs 5 crores.
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:

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.
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.
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.
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.

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.

OCM 11th Commerce Textbook Solutions Digest

11th OCM Chapter 2 Exercise Trade Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Trade 11th OCM Chapter 2 Solutions Maharashtra Board

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

Class 11 OCM Chapter 2 Exercise Solutions

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:

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.
The person doing wholesale business is called wholesaler.
Wholesaler acts as a link between manufacturer and retailer.

Question 2.
Retail Trade.
Answer:

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

Question 3.
Foreign Trade.
Answer:

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

Question 4.
Letter of Credit.
Answer:

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.
It is generally demanded by the exporter country.
It gives assurance to exporter country about its payment of goods exported.

Question 5.
One price shop.
Answer:

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

Question 6.
Departmental Store.
Answer:

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

Question 7.
General store.
Answer:

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

Question 8.
Mall.
Answer:

A mall is a large enclosed shopping complex having various stores, restaurant, cinema hail and other business.
E.g. Phoenix Mall, Inorbit Mall, etc.
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:

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.
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.
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.
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.
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.
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:

Provide Finance : Wholesaler provides advance to the manufacturers so they can do bulk production. Manufacturer can maintain continuous flow of production.
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.
Goods Sale on Large Scale : Wholesaler sells goods to the retailers on large scale on behalf of manufacturers.
Economy in Production : Large scale of production is made possible because production of goods is done continuously by the manufacturer.
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.
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:

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.
Presentation of Documents : The necessary documents are presented to the bank for negotiation and realisation of export proceeds.
Realisation of Export incentive : Various incentive like duty drawbacks, refunds of GST if paid, etc. is given to the exporter by the concerned authorities.
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:

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

Question 2.
Wholesaler maintains price stability.
Answer:

A wholesaler is both a buyer and a seller.
He is in a position to maintain price stability by balancing supply and demand factors.
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:

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

Question 4.
Wholesaler performs various marketing functions.
Answer:

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

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

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

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

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

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

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

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

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

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

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

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

The goods are priced at one price which is fixed.
There is a fixed and uniform price. ,
The price are fixed in advance, so there is no scope for bargaining.
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:

Wholesalers are those who engage themselves in wholesale trade.
It is concerned with the buying of goods in large quantities from producers and reselling the same in small quantities to the retailers.
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.

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

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

Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
Helps to Distribute : Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
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.
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.
Provides Information: Retailer provides information to the wholesaler regarding market and demand of goods by the customers, likes and dislikes of customers, etc.
Connecting Link : Retailer purchases goods from wholesaler and sells it to the customer and thus act as a middleman.
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:

Finance Assistance : Wholesaler provides advance to the manufacturers, so they can do bulk production. Thus, manufacturer can maintain continuous flow of production.
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.
Large Purchase : Wholesaler purchases goods on large scale from the manufacturers and sells it to the retailers on behalf of the manufacturers.
Transportation: Wholesaler sometimes carry the transportation function of manufacturer by himself. So cost and time of manufacturer is saved.
Risk Bearing: He takes a risk of buying goods in big quantity and storing them. This may sometimes lead him to loss.
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.
Marketing Function: Wholesaler carries many marketing functions like warehousing, advertising, sales promotion, etc. on behalf of manufacturer.
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:

Financial Support: Wholesaler provides credit facility, discount facility and financial assistance to their retailers.
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.
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.
Stock of Goods : Wholesaler stores the stock of goods for retailers, then retailer supply these goods to customers as per their demands.
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.
Regular Supply : Wholesaler assures regular supply of goods to the retailers. Risk of shortage of goods and price fluctuation is reduced.
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.

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:

Create demand: Retailers attracts consumers attention towards new products and arrivals in the market through personal salesmanship.
Helps to Distribute : Retailer helps distributing perishable goods which are having short life. He also performs assembling, grading and packing function.
Marketing: Retailers sometimes carry marketing function for the wholesalers i.e. handling transportation, solving shortage problems, advertise goods, etc.
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.
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:

Port Trust Dues : The clearing and forwarding agent has to make the payment of port trust dues.
Customer Duty : Also paid by the clearing and forwarding agent to the custom authorities.
Insurance Premium : Under the FOB (Free of Board) impact, the importer has to make the payment of Insurance Premium.
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.
Exporters Payment: The exporter draws a Bill of Exchange on the importer according to the terms and conditions of the contract.
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:

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.
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.
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.
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.
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.
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.
GST formalities (Goods and Service Tax): All formalities regarding GST must be complied with by the exporter.
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.
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:

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.
Presentation of Documents : The necessary documents are presented to the bank for negotiation and realisation of export proceeds.
Realisation of Export incentive : Various incentive like duty drawbacks, refunds of GST if paid, etc. is given to the exporter by the concerned authorities.
Follow up : Exporter has to follow up and find out the buyers reaction on the goods he receives. This concludes the export procedure.

OCM 11th Commerce Textbook Solutions Digest

11th OCM Chapter 1 Exercise Introduction of Commerce and Business Practical Problems Solutions Maharashtra Board

March 28, 2025March 27, 2025 by Bhagya

Introduction of Commerce and Business 11th OCM Chapter 1 Solutions Maharashtra Board

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

Class 11 OCM Chapter 1 Exercise Solutions

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:

Business is one of the economic activities.
Business is done to earn profit.
It is done by individuals or organisations.
Business includes all those activities done for production, processing and distribution of goods.
Business has a risk involved.

Question 2.
Profession.
Answer:

Profession is a part of economic activity.
A person who practices profession is called a professional.
A professional has to acquire particular knowledge under formal education system.
He practices and obtain skill in his profession. E.g. Doctors, Lawyers, Chartered Accountants, Architects etc.
A professional gets fees for his services.

Question 3.
Employment.
Answer:

Employment is an economic activity.
A person works for others to earn his livelihood.
A person who works is called an employee and a person who offers work is an employer.
Employee gets remuneration after certain period which is called salary or wages.

Question 4.
Home Trade.
Answer:

Trade means buying and selling of goods and services.
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.
Home trade is divided into two parts; Wholesale trade and retail trade.

Question 5.
Foreign Trade.
Answer:

Buying and selling of goods and services is called trade.
Trade can be conducted within the country or with other countries.
Trade conducted with other countries is called foreign or external trade.
Foreign trade is divided into three parts; they are import, export and entrepot trade.

Question 6.
Economic Activity.
Answer:

Human beings are engaged in various activities throughout the day.
Some activities are done to earn money or livelihood.
These activities are called economic activities.
Economic activities are of three types; they are business, employment and profession.
Because of the economic activities a person can earn for himself and his family.
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-

Aim
Registration and Membership
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.

Import trade : When the goods or services are purchased from other countries it is called import trade,
Export trade : When the goods are sold to other countries, it is called export trade.
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-

Banking
Mercantile Agents
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:

Earning Profit: Business is done with the main objective of earning profit. Profit is always a motivating factor for a businessman.
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.
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.
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.

Agriculture industry: Agriculture includes cultivation of land. It is an important primary sector industry.
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.
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:

Retailer in a trader operating in the chain of distribution.
He deals with the ultimate consumer.
Retailer is the last link in the chain of distribution.
Goods flow from the producer to consumer in the following way:
Producer → Wholesaler → Retailer → Consumer
Thus, retailer comes into direct contact with the ultimate consumer.

Question 2.
Commerce is a wider term than trade.
Answer:

Commerce is a part of business. Business is divided into two parts; industry and commerce,
Commerce is concerned with the distribution of goods.
Commerce is divided into two parts. One is trade and the other is auxiliaries to trade.
Trade is concerned with buying and selling of goods and services.
Trade is’a part of commerce.
Along with trade, commerce also includes auxiliaries or services to trade.
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:

Every business is exposed to various risks. A businessman cannot avoid risks in the business.
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.
A businessman has to be prepared to handle these risks.
These risks cannot be totally eliminated. But they can be minimized or transferred to insurance company.
A businessman must be ready for the risks as they are inevitable.
Thus, risk is inevitable in business activities.

Question 4.
Combination of import-export trade is entrepot trade.
Answer:

Import, export and entrepot trade are the parts of foreign trade.
When the goods are purchased from other countries it is called import trade.
When the goods are sold to other countries it is called export trade.
A combination of import and export trade is called entrepot trade.
In case of entrepot trade goods are first purchased from one country i.e. imported and then sold to or exported to other country.
E.g. Indian trader purchased some computers from Japan and sold them to Sri Lanka will be included in entrepot trade.
Thus, entrepot trade is a combination of import and export trade.

Question 5.
Transport creates place utility.
Answer:

Transport is one of the important auxiliaries to trade.
Transport brings raw materials and people to the place of production and carries finished products to markets.
There are different modes of transport through it carries goods and people from one place to another. They are rail, road, water and air.
If goods are produced at one place, it may not have demand at that place only.
Transport carries them to other place where they are demanded and create place utility.
Thus, we can say that transport creates place utility.

Question 6.
Industrial activities take place before commerce starts its role.
Answer:

Industry and commerce are the two parts of business.
Both the parts are complimentary to each other.
One cannot function without other.
Industries look after the production of goods and services and commerce takes care of the distribution of the goods produced.
Obviously production of goods comes first and it is followed by distribution or selling of goods.
Thus, industrial activities take place before commerce starts its role.

Question 7.
Available resources should be used to its maximum.
Answer:

Resources are always scarce. The demand for resources is more and the availability of resources is less.
Similarly, resources belong to the society but the businesses use them for production and provide the finished products to the society.
So it is necessary to use the resources carefully.
Wastage of resources should be avoided.
Wherever possible, recycling and reusing the resources should be considered by the businesses.
Thus, whatever resources available should be used to its maximum.

Question 8.
Wholesalers is a link between retailer and manufacturer.
Answer:

Wholesaler and retailer are the important intermediaries in trade.
They help to bring the goods from the manufacturer to ultimate consumer.
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.
Both the wholesalers and retailers are the part of chain of distribution, which is shown below.
Producer → Wholesaler → Retailer → Consumer
Thus, it is true that wholesaler is the link between the manufacturer and retailer.

Question 9.
Business is a part of economic activities.
Answer:

Economic activities are those activities which are done with the intention of making money.
A person has to earn money for his livelihood.
However all economic activities are not same. They can be conducted mainly in three different ways.
(a) Employment (b) Profession and (c) Business.
Business is conducted to earn profit.
businessman invests his own capital, takes decisions and carries out business activities.
He also takes risk for carrying business activities.
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:

Business is exposed to various kinds of risk.
The risks can be due to the loss of goods by fire or theft, bad debts, changes in government policies, goods remaining unsold etc.
Goods remaining unsold due to changes in fashion, is also an important type of risk in the business.
Due to this risk businessman can suffer loss.
However this risk is there in case of some goods only e.g. clothes, footwear, jewellery, accessories, sun glasses etc.
This risk is not there in case of food grains or vegetables as they are essentials and their demand remains somewhat constant.
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:

Auxiliaries to trade are all the services which help trade.
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.
There are different auxiliaries or services which support buying and selling. They are : transport, warehousing, banking, insurance, advertising, etc.
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.
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.
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:
Maharashtra Board OCM 11th Commerce Solutions Chapter 1 Introduction of Commerce and Business 1

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.

OCM 11th Commerce Textbook Solutions Digest

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पाठ पर आधारित

प्रश्न 1.
विद्यार्थी जीवन में ई-अध्ययन का महत्त्व स्पष्ट कीजिए।
उत्तर :
आज तक विद्यार्थी केवल हाथ में पुस्तक लेकर ही ज्ञान प्राप्त कर सकते थे परंतु ई-अध्ययन शिक्षा-क्षेत्र में कई सकारात्मक बदलाव ला सकता है। आज इंटरनेट पर कई सारी वेबसाइट्स से ज्ञान के दरवाजे खुले हैं। एक बटन दबाते ही ज्ञान का भंडार छात्र के सामने बैठे-बिठाए प्रस्तुत हो जाता है।

कंप्यूटर विद्यार्थी के लिए ज्ञान का स्त्रोत है जिसके सहारे पढ़ाई हो सकती है। दृक्-श्राव्य माध्यम से उसकी पढ़ाई रोचक बन जाती है। मनोरंजन और ज्ञान का सुंदर समन्वय ई-अध्ययन में होता है।

आज का युग प्रतियोगिता का युग है। विद्यार्थियों को कई सारी प्रतियोगिताएँ, परीक्षा की तैयारियाँ करनी होती हैं और इनके लिए ई-अध्ययन एक वरदान है। हर विषय का ज्ञान, सामान्य ज्ञान, खेल-कूद, संगीत, राजनीति आदि की जानकारी भी छात्र ई-अध्ययन द्वारा प्राप्त कर स्वयं को अद्यतन रख सकता है।

समय, श्रम और अर्थिक बचत भी बड़े पैमाने पर होती है। ज्ञान के साथ-साथ करियर का अवसर भी प्राप्त हो सकता है। सचमुच ई-अध्ययन का विद्यार्थी जीवन में बड़ा महत्त्व है।

प्रश्न 2.
ई-ग्रंथालय की जानकारी लिखिए।
उत्तर :
आज इंटरनेट पर ई-ग्रंथालय वेबसाइट उपलब्ध है। यह ग्रंथालय शुल्क सहित तथा नि:शुल्क दोनों तरीके से उपलब्ध है। ऐसे ग्रंथालयों में ई-पुस्तकें, ई-वीडियो, वार्तापट आदि द्वारा ज्ञान उपलब्ध होता है। यह सुविधा हर दिन, हर समय उपलब्ध होती है यानि समय का बंधन नहीं होता।

सबसे बड़ी बात यह है कि यहाँ केवल हमारे देश के लेखकों का ही साहित्य नहीं तो विदेशी लेखकों के साहित्य को पढ़ने का लाभ उठा सकते हैं।

आज कई सारे प्रकाशक पुस्तक बनते ही वेबसाइट पर ई-पुस्तक द्वारा उपलब्ध करवाते हैं। ई-पुस्तक वापस लौटाने की जरूरत नहीं होती। पुस्तक को संभालकर रखने, गुम हो जाने या फट जाने की संभावना भी नहीं होती है।

मनचाहे पुस्तक को अपने कंप्यूटर में, मोबाइल में या टैब में संकलित कर सुरक्षित रख सकते हैं।

प्रश्न 3.
‘आज के विद्यार्थी अध्ययन के लिए कंप्यूटर पर निर्भर हैं –
पाठ के आधार पर इस कथन की पुष्टि कीजिए।
उत्तर :
वर्तमानकालीन विद्यार्थी मोबाइल, इंटरनेट आदि आधुनिक तकनीक के अधीन हो गए हैं। हर क्षेत्र में तंत्रज्ञान के माध्यम से क्रांति हुई है। सूचना एवं तकनीकी क्रांति से शिक्षा क्षेत्र भी प्रभावित हुआ है। अध्ययन-अध्यापन में ई-अध्ययन ने नई दृष्टि प्रदान की है।

आज से पहले विद्यार्थी केवल हाथ में पुस्तक लेकर ज्ञान प्राप्त कर सकते थे, परंतु आज एक बटन दबाते ही ज्ञान का भंडार उसके सामने बैठे-बिठाए प्रस्तुत होता है। आज इंटरनेट की कई सारी वेबसाइट्स से ज्ञान के दरवाजे खुले हैं। कंप्यूटर हमारे जीवन का एक हिस्सा बन गया है।

आज के विद्यार्थी इस ज्ञान देने वाले कंप्यूटर को ज्ञान के स्त्रोत के रूप में देख रहे हैं। उसके सहारे उनकी बहुत सारी पढ़ाई आसानी से हो जाती है।

कठिन से कठिन जानकारी कंप्यूटर द्वारा विद्यार्थी तक पहुंच रही है। परीक्षा की तैयारी करनी हो या प्रतियोगिता के लिए तैयार होना हो कंप्यूटर पर उपलब्ध ज्ञान विद्यार्थी के लिए वरदान सिद्ध हो रहा है।

समय, श्रम और धन की बड़े पैमाने पर बचत होना भी अन्य लाभ है जो विद्यार्थी बखूबी उठाते हैं इसीलिए अपने अध्ययन के लिए कंप्यूटर पर निर्भर होते हैं।

व्यावहारिक प्रयोग

प्रश्न 1.
अपने महाविद्यालय में मनाए गए हिंदी दिवस का वृत्तांत लेख समाचार पत्र के संपादक को मेल कीजिए।
उत्तर :
प्रति : ggnnbt@gmail.com
विषय : हिंदी दिवस वृत्तांत
श्री. संपादक (editor) महोदय, हमारे महाविद्यालय में मनाए गए हिंदी दिवस का वृत्तांत लेख समाचार पत्र में पब्लिश करने हेतु साथ में भेजा है। कृपया आवश्यक कार्रवाई करें और समाचार पत्र में पब्लिश करके हमें उपकृत (obliged) करें।

धन्यवाद !
भवदीय,
अनघा कुलकर्णी।
(विद्यार्थी प्रतिनिधि, युनिक महाविद्यालय, श्रीवर्धन।)
anghakulkarni2000@gmail.com

युनिक महाविद्यालय में हिंदी दिवस धूमधाम से संपन्न
‘हिंदी है जन-जन की भाषा,
हिंदी हमारे हृदय की भाषा,
हिंदी विश्व की सबसे बड़ी भाषा।’

युनिक महाविद्यालय के सभागार में हिंदी दिवस बड़े उत्साह के साथ प्रधानाचार्य श्री. शिवकुमार की अध्यक्षता में मनाया गया। कार्यक्रम का संचालन 12वीं कक्षा की छात्रा शुभा ने किया। इस कार्यक्रम में हिंदी भाषा के महत्त्व पर अध्यापक तथा छात्रों ने अपने विचार प्रकट किए।

इस अवसर पर दोहों की प्रतियोगिता रखी गई थी जिसकी वजह से कार्यक्रम जोश और उल्लास से सराबोर हो गया। विजेता संघ को सर्टिफिकेट दिए गए। अपने अध्यक्षीय संबोधन में प्रधानाचार्य जी ने उन छात्रों की भूरी-भूरी प्रशंसा की और हिंदी को देश को जोड़ने वाली कड़ी के रूप में गौरवान्वित किया।

उनका मानना है कि हिंदी राष्ट्र भाषा की गंगा से विश्व भाषा का महासागर बन रही है। हिंदी अति उदार, समझ में आने जैसी सरल, सहिष्णु (tolerant) है, साथ ही भारत की राष्ट्रीय चेतना की संवाहिका भी है। प्राचार्य जी के इस उद्बोधन (message) पर तालियों की गूंज आसमान तक पहुँची।

अध्यापक वृंद, कर्मचारी वर्ग तथा विद्यार्थियों ने इस कार्यक्रम को सफल बनाया। इस दिन महाविद्यालय का कामकाज भी हिंदी भाषा में किया गया जिसके कारण महाविद्यालय ‘हिंदीमय’ बन गया था। (विद्यार्थी प्रतिनिधि द्वारा)

प्रश्न 2.
पर्यावरण दिन’ पर प्रकल्प के लिए नेट से जानकारी प्राप्त करके उसका पावर प्वाइंट प्रेजेंटेशन कक्षा में प्रस्तुत कीजिए।
उत्तर:
Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 17 ई-अध्ययन नई दृष्टि 2

पर्यावरण परि + आवरण शब्दों के मेल से बना है जिसका अर्थ है आस-पास का वातावरण।
पर्यावरण और मानव का बड़ा गहरा नाता है। इसे स्वच्छ और सुंदर रखना हमारा कर्तव्य है।
हमारा कर्तव्य है कि हम वन, झील, नदी, वन्य जीव, पेड़-पौधे, पशु-पक्षी आदि का संरक्षण करें।
हम अपने आस-पास के वातावरण को जितना सहेजकर रखेंगे हमारा जीवन उतना ही उत्कृष्ट, आनंदमय एवं सुखमय होगा।
प्रकृति के विभिन्न अंग नदी, पर्वत, वृक्ष, जीव, प्राणी, भूमि आदि की पूजा हमारी प्राचीन परंपरा रही है।
पर्यावरण का अपमान बाढ़, भूकंप, त्सुनामी, अतिवृष्टि या सूखा जैसे अभिशापों को दावत देना है।
प्रदूषण के दुष्परिणाम, ग्लोबल वॉर्मिंग, जलवायु बदलाव के खतरे लगातार दस्तक दे रहे हैं।
बेतहर कल के लिए पर्यावरण संरक्षण एक ही विकल्प है।
आओ वन-उपवन विकसित करें और प्रकृति के प्रति कृतज्ञता व्यक्त करें।

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 17 ई-अध्ययन नई दृष्टि 3

ई-अध्ययन : नई दृष्टि Summary in Hindi

ई-अध्ययन : नई दृष्टि पाठ परिचय :

प्रस्तुत पाठ एक आलेख है। जिसमें ई-अध्ययन की संकल्पना, संसाधन, उसके प्रयोग की विधियाँ, प्रयोग करते समय बरती जाने वाली सावधानियाँ आदि के बारे में महत्त्वपूर्ण जानकारी दी है। साथ ही भविष्य में ई-अध्ययन की आवश्यकता को भी स्पष्ट किया है।

आज ई-संसाधनों का उपयोग हर-जगह, हर क्षेत्र में हो रहा है। शिक्षा क्षेत्र भी इससे अछूता नहीं है। इंटरनेट, मोबाइल, टैब, कंप्यूटर आदि का प्रयोग कर विद्यार्थी ज्ञान अर्जित कर रहे हैं और स्मार्ट बन रहे हैं यही बात स्पष्ट करने की कोशिश पाठ में की गई है।

ई-अध्ययन : नई दृष्टि पाठ का सारांश :

हर चीज के सकारात्मक और नकारात्मक पहलू होते हैं। मोबाइल तथा आधुनिक तकनीक भी इससे अछूती नहीं है। विद्यार्थी को उसके सकारात्मक पहलू का सदुपयोग करके ज्ञानार्जन का लाभ उठाना चाहिए। एक बटन दबाते ही ज्ञान का भंडार उसके सामने प्रस्तुत हो जाता है।

आज इंटरनेट की कई सारी वेबसाइट्स से ज्ञान के दरवाजे खुले हैं।

‘कम समय में बहुत सारा काम’ यह कंप्यूटर की विशेषता है। विद्यार्थी को इसे ज्ञान के स्त्रोत के रूप में देखकर पढ़ाई के लिए उपयोग में लाना चाहिए।

इंटरनेट (अंतरजाल) एक ऐसी व्यवस्था है जो सारे संसार के सरकारी, निजी, व्यावसायिक संस्था, विश्वविद्यालय के लाखों कंप्यूटर को व्यक्तिगत कंप्यूटर से जोड़ती है। डाटा और सूचनाओं का आदान-प्रदान तुरंत करती है।

भारत में अनेक राज्य और अनेक भाषाएँ है इसीलिए इंटरनेट संचालन के लिए अंग्रेजी के साथ-साथ हिंदी तथा अन्य प्रादेशिक भाषाओं के सॉफ्टवेअर तैयार किए गए हैं। ‘डिजिटल इंडिया’ के लिए वाकई में सुखद स्थिति है।

ई-लर्निंग तथा ई-अध्ययन में विद्यार्थी रुचि रखते हैं। दृक्-श्राव्य माध्यम से पढ़ाई रोचक बनती है। मनोरंजन और ज्ञान का सुंदर समन्वय देखने मिलता है। ई-बुक, ई-मैगजिन की सहायता से जहाँ चाहे, जब चाहे वहाँ पढ़ना संभव हो जाता है।

पुस्तक सँभालना नहीं पड़ता, फटने या गुम होने की संभावना नहीं रहती। ई-अध्ययन से शिक्षा की तरफ देखने की नई दृष्टि मिल गई है। आज ई-ग्रंथालय भी इंटरनेट पर उपलब्ध हैं जहाँ नि:शुल्क या शुल्क देकर देश-विदेश के लेखकों का साहित्य पढ़ा जा सकता है।

ई-ग्रंथालयों में ई-पुस्तकें, ई-वीडियो, वार्तापट आदि द्वारा ज्ञान उपलब्ध होता है।

आज का युग प्रतियोगिता का युग है और इसमें टिके रहने के लिए ई-अध्ययन एक वरदान है। हर विषय का ज्ञान, सामान्य ज्ञान, खेल-कूद पर्यावरण आदि की जानकारी ई-अध्ययन से हम ले सकते हैं। ऐसा एक भी क्षेत्र नहीं जिसकी जानकारी हमें ना मिलती हो।

कभी-कभी कुछ वेबसाइट में हमें अकाउंट खोलना पड़ता है और लॉग इन करके अध्ययन करना पड़ता है। ज्ञानमनोरंजन-करियर का त्रिवेणी संगम ई-अध्ययन है जो हमारा ज्ञान अद्यतन रखता है। समय, श्रम और आर्थिक बचत भी बड़े पैमाने पर होती है। बस निम्न सावधानियाँ हमें बरतनी चाहिए :

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 17 ई-अध्ययन नई दृष्टि 1

ई-अध्ययन : नई दृष्टि शब्दार्थ :

तंत्रज्ञान = तकनिकी (technical knowledge),
अंतर जाल = (internet),
प्रतिष्ठान = संस्था (foundation),
दृक-श्राव्य = एक साथ देखा और सुना जा सकने वाला (audio-visual),
वार्तापट = बातचीत (chat),
विवरण = विस्तृत जानकारी (description),
पंजीकरण = शासन या सरकार द्वारा किया जाने वाला प्रमाणीकरण, मान्यीकरण (Registration),
अद्यतन = नवीनतम विचारों और मान्यताओं के अनुकूल (up to date),
प्रतियोगिता = होड़ (competition),
पर्यावरण = जैव मंडल, वातावरण (environment),
विवादास्पद = विवादग्रस्त (controversial),
प्रतिबंधित = जिसपर प्रतिबंध लगा हो (restricted),
संबोधन = पुकारना, बोध कराना (exhortation),
गौरवान्वित = सम्मानित, महिमायुक्त (glorified),
स्त्रोत = उद्गम स्थान, उत्पत्ति स्थान, आगार (source)

Hindi Yuvakbharati 11th Digest Maharashtra Board

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Hindi Yuvakbharati 11th Digest Chapter 16 रेडियो जॉकी Questions And Answers

11th Hindi Digest Chapter 16 रेडियो जॉकी Textbook Questions and Answers

पाठ पर आधारित

प्रश्न 1.
आर.जे. के लिए आवश्यक गुण लिखिए।
उत्तर :
स्नातक पदवी प्राप्त होने पर वह स्टाफ सिलेक्शन कमिशन तथा ऑल इंडिया रेडियो द्वारा ली जाने वाली परीक्षा दे सकता है।

और उसमें उत्तीर्ण होने पर प्रत्यक्ष साक्षात्कार द्वारा उम्मीद्वार का चयन होता है। उसका भाषा पर प्रभुत्व होना चाहिए। उसे देश-विदेश की जानकारी रखनी चाहिए। उसमें नित नई रची जाने वाली रचनाओं को पढ़ने की ललक होनी चाहिए। आवाज में उतार-चढ़ाव, वाणी में नम्रता तथा समय की पाबंदी आदि गुण उसमें होने चाहिए। उसे अनुवाद करने का ज्ञान भी होना चाहिए। उसे अपने कान और आँखें निरंतर खुली रखनी चाहिए।

उसे अपने उच्चारण पर विशेष ध्यान रखना चाहिए। अपने क्षेत्र का सांस्कृतिक, भौगोलिक तथा ऐतिहासिक ज्ञान भी उसे अवश्य होना चाहिए। साक्षात्कार लेने की कुशलता भी उसमें अवश्य होनी चाहिए। श्रोता द्वारा पूछे जाने वाले प्रश्नों के उत्तर उसके पास होने चाहिए।

निराश श्रोता का मनोबल बढ़ाने की कला उसे अवगत होनी चाहिए। उसकी भाषा सहज, सरल, संतुलित, रोचक तथा प्रवाहमयी होनी चाहिए जो श्रोताओं की समझ में सानी से आए और श्रोताओं को ज्ञान भी मिले और श्रोताओं का मनोरंजन भी हो।

प्रश्न 2.
सामाजिक सजगता निर्माण करने में आर.जे. का योगदान अपने शब्दों में लिखिए।
उत्तर :
सामाजिक जागरूकता फैलाने में आर. जे. महत्त्वपूर्ण भूमिका निभा सकता है। क्योंकि आर. जे. का काम समाज के हर घटक से जुड़ा हुआ है। कार्यक्रम के दौरान वह पर्यावरण दिवस, पोलियो अभियान, जल साक्षरता, बाल मजदूरी, दहेज समस्या, कन्या साक्षरता, विश्व पुस्तक दिवस, किसान और खेती का महत्त्व, व्यसन से मुक्ति, मतदान जनजागृति आदि विषयों पर चर्चा करते हुए मनोरंजनात्मक ढंग से लोगों के बीच में जागरूकता फैलाने का काम करता है।

उदाहरण के लिए आर. जे. अनुराग पांडेय जी की बातों को सुनकर कितने ही युवाओं ने उत्साह से मतदान किया था और कितने ही लोग व्यसनमुक्त भी हुए। इस प्रकार आर. जे. समाज में परिवर्तन लाने की क्षमता रखता है।

प्रश्न 3.
आर.जे. के महत्त्वपूर्ण कार्य पर प्रकाश डालिए।
उत्तर :
रेडियो जन-जन का माध्यम है जो लोगों के मन को छूता है। आर. जे. अपने कार्यक्रम की प्रस्तुति द्वारा जनमानस को हौसला देता है, नई-नई बातें बताता है। वह टेलीफोन के माध्यम से श्रोताओं से बातचीत करता है। श्रोताओं द्वारा पूछे गए प्रश्नों के उत्तर देता है तो कभी निराश श्रोता का मनोबल बढ़ाने का कार्य करता है। कभी मेहमानों या अतिथियों का परिचय कराता है, किसी परिचर्चा में हिस्सा लेता है।

खास लोगों का विशेष अवसर पर साक्षात्कार लेते हुए कार्यक्रम की प्रस्तुति करता है। अपने कार्यक्रम के दौरान पर्यावरण दिवस, पोलियो अभियान, जल साक्षरता जैसे कई विषयों पर चर्चा करते हुए मनोरंजनात्मक ढंग से जनजागृति लाता है।

अपने कार्यक्रम के दौरान दो गीतों के बीच कड़ी बनाने का कार्य करता है। वह श्रोताओं से संवाद करता है। समाज में जागरूकता फैलाता है और परिवर्तन लाता है।

व्यावहारिक प्रयोग

प्रश्न 1.
‘जलसंवर्धन’ के किसी कार्यकर्ता के साक्षात्कार हेतु संहिता तैयार कीजिए।
उत्तर :
नमस्कार! दोस्तो मैं हूँ आर. जे. रवि शर्मा और आज की इस मुलाकात में हमारे स्टुडियो में पधारे विशेष अतिथि हैं जलपुरुष डॉ. राजेंद्र सिंह जी। उत्तर प्रदेश के बागपत जिले में जन्मे राजेंद्र जी को 2001 में रेमन मैग्सेसे पुरस्कार से सम्मानित किया गया क्योंकि उनके भगीरथ प्रयत्नों से राजस्थान के अलवर में सात नदियाँ फिर से जीवित हुईं और बहने लगी हैं। 2009 में आप नेशनल गंगा रिवर बेसिन एथॉरिटी के मुख्य सदस्य भी रहे हैं।

रवि शर्मा : बहुत बहुत स्वागत है आपका।

राजेंद्र सिंह : धन्यवाद !

रवि शर्मा : सबसे पहले हम जानना चाहेंगे राजेंद्र जी कि देश में पानी की स्थिति कैसी है?

राजेंद्र सिंह : देखिए, इस वक्त भारत बेपानी हो रहा है। हमारी धरती के गर्भ में जो वॉटर टैंक थे वे खाली हो गए हैं। धरती के ऊपर बुंदेल खंड हो, मराठवाडा हो या विदर्भ हो, लोग बेपानी होकर आत्महत्याएँ कर रहे हैं। धरती को बुखार चढ़ रहा है। मौसम का मिजाज बदल चुका है। बिगड़े मौसम ने भारत को बेपानी कर दिया है। धरती को कहीं बाढ़ तो कहीं सूखे की चपेट में ला रहा है।

रवि शर्मा : राजेंद्र सिंह जी आप एक आयुर्वेदिक डॉक्टर थे।

राजेंद्र सिंह : जी।

रवि शर्मा : उस काम को आपने छोड़ दिया और इस काम में लग गए?

राजेंद्र सिंह : पेड़ों और प्रकृति से तो मुझे बचपन से ही प्यार था। 1980 में राजस्थान के जयपुर में नौकरी करने लगा। परंतु चार साल बाद त्यागपत्र देकर समाजसेवा करने अलवर चला आया और बीमार लोगों का इलाज करने लगा। तब एक बूढ़े ने कहा डॉक्टर तो बहुत हैं जो इलाज करने आ जाएँगे।

हमें पानी चाहिए। पानी का काम करने वाला कोई नहीं है। मेरे लिए यह बहुत चुनौतिपूर्ण था। परंतु उस बूढ़े ने मुझे रियलाइज कराया कि मैं वह काम कर सकता हूँ और उचित समय पर मैंने पानी संरक्षण का निर्णय ले लिया जो मेरे जीवन का सबसे अच्छा निर्णय था और मैं पानी के काम में लग गया।

रवि शर्मा : राजेंद्र जी आपने यह करिश्मा कैसे किया?

राजेंद्र सिंह : उस बूढ़े किसान ने मुझे कहा हमारे यहाँ हर साल बादल पानी लेके आता है और उसको सूरज चोरी कर लेता है। हमारे लिए पानी बचता ही नहीं। तू सूरज की चोरी रोक दें। तब मैंने समझा कि, ‘पानी जहाँ दौड़ता है वहाँ उसे चलना सिखाना है।

जब वह चलने लगे तो उसे रेंगना और धरती माँ के पेट में बिठाना है। तब सूरज उसको चुरा नहीं सकेगा और उससे जीवन चलेगा।’ काम 1985 में शुरू हुआ और उसके अच्छे नतीजे सामने आए।

रवि शर्मा : बहुत बढ़िया। महाराष्ट्र में पानी की किल्लत पर आप क्या मशवरा दे सकते हैं?

राजेंद्र सिंह : देखा जाए तो महाराष्ट्र में पानी की कमी होनी ही नहीं चाहिए। पानी प्रबंधन के काम की आवश्यकता है। समाज और सरकार दोनों संकल्प करें तो महाराष्ट्र पानीदार बन सकता है।

रवि शर्मा : अच्छा, कैसे?

राजेंद्र सिंह : यहाँ का फसल चक्र वर्षा चक्र को जोड़कर तैयार करना चाहिए।

रवि शर्मा : बराबर।

राजेंद्र सिंह : महाराष्ट्र में जल साक्षरता अभियान शुरू करके पानी का सदुपयोग किया जा सकता है। जल नायक, जल योद्धा, जल प्रेमी, जल दूत और जल सेवकों की सहायता से यह अभियान आगे बढ़ेगा। समाज में लोग जल का सम्मान करें ताकि पानी व्यर्थ भी नहीं जाएगा और प्रदूषण से भी बचेगा। महाराष्ट्र में जलयुक्त शिवार बनेंगे।

रवि शर्मा : बिलकुल और महाराष्ट्र हरा-भरा हो जाएगा। इस बात पर एक गीत याद आ गया। हरी-हरी वसुंधरा है, नीला-नीला ये गगन.. (गीत का मुखडा और दो अंतरे बजाए जाएँगे।)

राजेंद्र सिंह : सच, अगर जज़्बा हो तो महाराष्ट्र सूखा मुक्त हो सकता है। बस अनुशासन और मिलजुलकर सही दिशा में काम करने की आवश्यकता है।

रवि शर्मा : बहुत बहुत धन्यवाद राजेंद्र जी। आज आपने हमारे श्रोताओं को जल संरक्षण संबंध में बहुत ही बढ़िया जानकारी दी है और आपकी बातें सुनकर जल प्रेमी, जल दूत सामने आने की संभावना बढ़ गई है।

राजेंद्र सिंह : तब तो मैं कहूँगा मेरा यहाँ आना सार्थक हो गया।

प्रश्न 2.
रेडियो जॉकी के रूप में ‘होली’ के अवसर पर काव्य वाचन प्रस्तुति के लिए कार्यक्रम तैयार कीजिए।
उत्तर :
नमस्कार! मैं हूँ आर. जे. सीमा राय और 93.65 रेडियो धमाचौकड़ी पर आप सबके लिए ले आई हूँ होली धमाका! सर्वप्रथम आप सबको होली की बहुत, बहुत, बहुत शुभकामनाएँ। आपकी होली सुरक्षित रहे, रंगों से और खुशियों से सराबोर रहे। इस होली को और भी खास बनाएँगे धमाकेदार, जोरदार सुप्रसिद्ध कवियों के काव्य गायन से।

होली है, होली है, बुरा न मानो, होली है।

इस कार्यक्रम को आगे बढ़ाते हुए मैं कवि जगत के प्रसिद्ध कवियों से परिचय कराती हूँ। हमारे साथ स्टुडियो में प्रसिद्ध कवि सुनील जोगी जी मौजूद हैं जिनका परिचय देने की जरूरत ही नहीं है। देश के जाने-माने कवि का परिचय देना सूरज को दीए की रोशनी दिखाने जैसा होगा। कविवर्य सुनील जी आपका हमारे चैनल पर स्वागत है।

सुनील : आप सबको और पूरे देश वासियों को होली की हार्दिक शुभकामनाएँ। होली रंगों का त्योहार है, उमंगो का त्योहार है, खुशियों का त्योहार है।
हमारे देश की होली ऐसी मनाई जाए,
होली हमारे देश की पहचान बन जाए,
आन, बान और शान बन जाए,
भरे पिचकारियाँ ऐसे तीन रंगों की
जो कपड़ों पर गिरे तो पूरा देश बन जाए।

सभी दाद देते हैं : वाह! वाह!

सीमा : सुनील जी आप होली के रंग को देश का रंग बनाना चाहते हो। बहुत खूब।

सुनील : जी, जी, मेरी कविता मैंने देश की अखंडता, एकता, भाईचारा और मोहब्बत को व्यक्त करते हुए लिखी है। पेश है वह कविता –
हमारे मोहल्ले में हम इस तरह होली मनाते हैं –
जुम्मन चाचा हरा, राधेश्याम जी नारंगी और करतार जोसेफ सफेद रंग लाते हैं।
सब मिलकर एक दूसरे को खूब रंग लगाते हैं। थोड़ी ही देर में माहोल बदल जाता है..
सबके चेहरे पर सिर्फ तिरंगा नजर आता है।

तब लगता है होली सार्थक हुई क्योंकि इन रंगों में राधेश्याम जी के साथ, जुम्मन चाचा और करतार जोसेफ के रंगों की महक मिली हुई है।

सीमा : बहुत खूब सुनील जी। आपने और आपकी कविता ने सचमुच देश प्रेम में श्रोताओं को भिगो दिया है। अब जरा हँसी ठिठोली भी हो जाए।

दीपक : मैं हूँ दीपक गुप्ता और मेरा तो यही मानना है कि होली हँसी-खुशी, ठिठोली और सद्भावना का त्योहार है। होली की शुभकामनाएँ देते हुए एक ठिठोली सुनाता हूँ।
मुफ्त पिचकारी का ऑफर पाकर
बच्चे और माँ-बाप दौड़े चले आए
विक्रेता ने दी मुफ्त पिचकारी और कहा
कृपया इसमें भरे पानी की कीमत चुकाएँ

सभी : क्या बात है।

सीमा : सही बात है दीपक जी। आज पानी महँगा हो गया है, मुफ्त में बरबाद नहीं किया जा सकता। वेद प्रकाश जी आप भी सुनाइए और इस माहोल को रंगीन बना दीजिए।

वेद प्रकाश : जी बिलकुल अभी-अभी यहाँ ही स्टुडियो में बैठे-बैठे एक कविता जहन में आई जो सुनाता हूँ –
होली के दिन भाई
दीपक दीपक नहीं रहते,
सुनील सुनील नहीं रहते,
वेद वेद नहीं रहता,
कम-से-कम होली के दिन
ये भेद नहीं रहता कि,
इनकी कमीज से मेरी कमीज का रंग
ज्यादा सफेद नहीं है।

सीमा : बहुत बढ़िया, वेद प्रकाश जी होली भेदभाव को मिटा देती है। यह एकता और अखंडता का प्रतीक है।

सीमा : सुनील जी, दीपक जी और वेद प्रकाश जी हमारे साथ जुड़कर होली को खास और खुशनुमा बनाने के लिए तहे दिल से शुक्रिया। श्रोताओं को जरूर मजा आया होगा। किसी की भावनाओं को अनजाने में ठेस पहुँची हो तो कह देती हूँ, ‘बुरा न मानो होली है, भाई होली है।’

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 16 रेडियो जॉकी 1

रेडियो जॉकी Summary in Hindi

रेडियो जॉकी लेखक परिचय :

आवाज की दुनिया के बेताज बादशाह अनुराग पांडेय जी ने रेडियो के लिए पच्चीस से अधिक नाटकों का लेखन कार्य किया है। पिक्चर पांडेय शो से वे घर-घर में लोकप्रिय हो गए। रेडियो की दुनिया में पिछले 26 साल से सक्रिय है। अद्भुत और कलात्मक रेडियो जॉकिंग करने के कारण श्रोता वर्ग इनकी ओर आकर्षित होता है। मूलत: इंदौर के रहने वाले अनुराग पांडेय जी के रोजाना साढ़े पाँच करोड़ श्रोता है।

रेडियो जॉकी पाठ परिचय :

प्रस्तुत पाठ एक साक्षात्कार है जिसमें आर. जे. अनुराग पांडेय जी ने रेडियो जॉकी के क्षेत्र में रोजगार के विपुल अवसरों की जानकारी दी है। इस क्षेत्र में करिअर बनाने के लिए आवश्यक योग्यताएँ तथा सामजिक जिम्मेदारियों पर प्रकाश डाला

रेडियो जॉकी पाठ का सारांश :

‘रेडियो जॉकी’ शब्द ‘रेडियो’ और ‘जॉकी’ इन दो शब्दों के मेल से बना है जिसका अर्थ है ऐसा कार्यक्रम संचालक जो कुशलतापूर्वक अपने चैनल को और प्रसारित कार्यक्रम को सबसे आगे रखे। एक जमाने में रेडियो जॉकी केवल उद्घोषक (अनाउंसर) होते थे परंतु अब रेडियो इन्फर्मेशन विथ एंटरटेनमेंट हो गया है।

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 16 रेडियो जॉकी 3

रेडियो जॉकी बनने के लिए स्टाफ सिलेक्शन कमिशन तथा ऑल इंडिया रेडियो द्वारा ली जाने वाली परीक्षा उत्तीर्ण होनी पड़ती है और इस परीक्षा के लिए स्नातक की उपाधि आवश्यक है। उसके बाद साक्षात्कार करके उम्मीदवार का चयन होता है। आज इस क्षेत्र में रोजगार के विपुल अवसर उपलब्ध हैं।

योग्यता, भाषा पर प्रभुत्व, देश-विदेश की जानकारी, आवाज में उतारचढ़ाव, वाणी में नम्रता आदि गुण, क्षेत्रीय रेडियो स्टेशन पर अनुभव लेकर बड़े रेडियो स्टेशन पर काम करने का अवसर मिल जाता है। रेडियो स्टेशन सिर्फ कला, ज्ञान और प्रस्तुतीकरण की शैली देखकर चयन करते हैं।

रेडियो जॉकी को अपने कान, आँखें निरंतर खुली रखने की जरूरत है। साहित्य और सचामार पत्र पढ़ने चाहिए; सांस्कृतिक, भौगोलिक तथा ऐतिहासिक ज्ञान चाहिए, साक्षात्कार लेने की कुशलता चाहिए। श्रोता द्वारा पूछे गए प्रश्नों के उत्तरों का ज्ञान उसके पास चाहिए। किसी निराश श्रोता को प्रोत्साहित करने के लिए मनोविश्लेषणात्मक ज्ञान चाहिए जिससे श्रोता का मनोबल वह बढ़ा सके।

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 16 रेडियो जॉकी 4

रेडियो जॉकी की भाषा सहज, सरल, संतुलित, रोचक तथा प्रवाहमयी होनी चाहिए। उसमें वाक्पटुता का गुण हो। उसे तकनीकी चीजों की जानकारी होनी चाहिए। मनोरंजनात्मक ढंग से लोगों के बीच जागरूकता फैलाने का काम भी उसे करना चाहिए क्योंकि प्रसारण के माध्यमों में रेडियो सबसे तेज प्रसारित और प्रेषित करने का सशक्त माध्यम है।

रेडियो का भविष्य उज्ज्वल है और युवा वर्ग को मनोरंजन, जोश से भरपूर इसके विस्तृत क्षेत्र में अपना उज्ज्वल भविष्य बनाने के लिए अपने कदम अवश्य बढ़ाने चाहिए।

Maharashtra Board Class 11 Hindi Yuvakbharati Solutions Chapter 16 रेडियो जॉकी 5

रेडियो जॉकी शब्दार्थ :

संचालक = परिचालक, निदेशक, गति देनेवाला (director),
इंफोटेनमेंट = मनोरंजन और सूचनाओं का साथ-साथ संप्रेषण (information with entertainment),
साक्षात्कार = भेंटवार्ता (interview),
क्षेत्रीय = जनपदीय (Regional),
आजीविका = रोजगार, रोजी-रोटी (job, income source),
मापदंड = मानक, मापने का पैमाना (criteria),
निकष = कसौटी (criteria),
निराकरण = निवारण, समाधान (solution),
स्वाभाविक = प्राकृतिक (Natural),
विचलित = अस्थिर, चंचल, व्याकुल (distracted, restless),
वाक्पटुता = बातें करने में चतुर होना (Eloquence oratory),
सुदृढ = मजबूत (very strong),
शालीन = नम्र (decent),
कीर्तिमान = सफलता, यश का सूचक (Record),
ध्वनिमुद्रित = अभिलेखन बद्ध, सी.डी., टेप आदि तैयार करना (recording),
चुनिंदा = चुना हुआ, श्रेष्ठ, उत्तम, बढ़िया (selected),
आयाम = विस्तार (dimension),
प्रेरक = प्रेरित करने वाल (motivator)

Hindi Yuvakbharati 11th Digest Maharashtra Board