Class 11 – Page 35 – Maharashtra Board Solutions

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II

May 25, 2024May 24, 2024 by Bhagya

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II

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

Question 1.
The secretary has to prepare ____________ before the meeting.
(a) resolution
(b) notice
(c) minutes
Answer:
(b) notice

Question 2.
General Meeting must have a notice of at least ____________ clear days.
(a) 7
(b) 21
(c) 14
Answer:
(b) 21

Question 3.
The gap between two annual general meetings should not be more than months.
(a) 15
(b) 18
(c) 24
Answer:
(a) 15

Question 4.
Auditor is appointed in ____________
(a) Annual General Meeting
(b) Creditors Meeting
(c) Extra ordinary General Meeting
Answer:
(a) Annual General Meeting

Question 5.
The business transacted in extra ordinary general meeting is ____________ business.
(a) Ordinary
(b) Routine
(c) Special
Answer:
(c) Special

Question 6.
An extraordinary general meeting is held ____________
(a) once in a year
(b) once in the life time
(c) under special circumstances
Answer:
(c) under special circumstances

Question 7.
Writing the minutes of meeting is the duty of the ____________
(a) Chairman
(b) Director
(c) Secretary
Answer:
(c) Secretary

Question 8.
New Directors in place of retiring Directors are appointed in the ____________
(a) Class Meeting
(b) Annual General Meeting
(c) Creditors Meeting
Answer:
(b) Annual General Meeting

Question 9.
Before the Annual General Meeting is held the Secretary has to compile ____________
(a) Auditor’s Report
(b) Committee Report
(c) Annual Report
Answer:
(c) Annual Report

Question 10.
The Secretary has to draft the minutes of the meeting within ____________ days of the meeting.
(a) Fifteen
(b) Sixty
(c) Forty
Answer:
(a) Fifteen

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Board Meeting	(1) Once in the year
(b) Auditor	(2) Minimum 4 meetings in a year
(c) Annual General Meeting	(3) Prepare at any time
(d) Extraordinary General Meeting	(4) Auditor’s Report
(e) Minutes of Meeting	(5) Prepared before the meeting
	(6) Prepared after the meeting
	(7) Under special circumstance
	(8) Prepared during the meeting
	(9) Once in Six months
	(10) Meeting of creditors

Answer:

Group ‘A’	Group ‘B’
(a) Board Meeting	(2) Minimum 4 meetings in a year
(b) Auditor	(4) Auditor’s Report
(c) Annual General Meeting	(1) Once in the year
(d) Extraordinary General Meeting	(7) Under special circumstance
(e) Minutes of Meeting	(6) Prepared after the meeting

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

Question 1.
A meeting of shareholders which is held once a year.
Answer:
Annual General Meeting

Question 2.
A meeting of shareholders is held between two annual general meetings.
Answer:
Extra Ordinary General Meeting

Question 3.
A Report which is prepared before Annual General Meeting.
Answer:
Annual Report

Question 4.
A meeting of the shareholders is held under special circumstances.
Answer:
Extra Ordinary General Meeting

Question 5.
A meeting of the preference shareholders of a company.
Answer:
Class Meeting

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

Question 1.
Only special business is transacted at Annual General Meeting.
Answer:
False

Question 2.
Annual Report is prepared by members.
Answer:
False

Question 3.
Extraordinary General Meeting is called for a special and urgent purpose.
Answer:
True

Question 4.
A member has a right to attend a Board meeting.
Answer:
False

Question 5.
A class meeting is the meeting of a particular class of shareholders.
Answer:
True

Question 6.
Director cannot appoint a proxy to attend and vote at the board meetings.
Answer:
True

Question 7.
21 clear days notice should be given in case of Board Meeting.
Answer:
False

Question 8.
Secretary has to arrange to take down the notes of the proceedings of the meeting.
Answer:
True

1E. Find the odd one.

Question 1.
Annual General Meeting, Extra Ordinary General Meeting, Board Meeting.
Answer:
Board Meeting

Question 2.
Annual General Meeting, Committee Meeting, Class Meeting.
Answer:
Committee Meeting

1F. Complete the sentences.

Question 1.
The meeting which is held once in every financial year is called as ____________
Answer:
Annual General Meeting

Question 2.
The meeting held to discuss and decide any special or urgent matters is called as ____________
Answer:
Extra-ordinary General Meeting

Question 3.
Meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 4.
The Authority to convene the Annual General Meeting is with the ____________
Answer:
Board of Directors

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Interval between two Annual General Meetings	…………………….
(2) First Board Meeting	…………………….
(3) ……………………….	21 clear days
(4) ……………………….	Alteration in Memorandum of Association

(Notice of General Meeting, Extraordinary General Meeting, Not more than 15 months, within 30 days of company’s Incorporation)
Answer:

Group ‘A’	Group ‘B’
(1) Interval between two Annual General Meeting	Not more than 15 months
(2) First Board Meeting	within 30 days of companies Incorporations
(3) Notice of General Meeting	21 clear days
(4) Extraordinary General meeting	Alteration in Memorandum of Association

1H. Answer in one sentence.

Question 1.
Who can attend Board Meetings?
Answer:
Board of Directors attends Board Meetings.

Question 2.
When can an Adjourned Annual General meeting be held?
Answer:
Adjourned Annual General Meeting will be held on the same day, same place and same time in the next week.

Question 3.
Why is Extra-Ordinary General Meeting held?
Answer:
Extra Ordinary General Meeting is held under special circumstances to discuss urgent and important matters.

Question 4.
When should the first Annual General Meeting be held?
Answer:
The first Annual General Meeting must be held within nine (9) months of the closing of the first financial year of the company.

Question 5.
What should be the interval between two Annual General Meetings?
Answer:
The time interval between two Annual General Meetings should not be more than 15 months.

Question 6.
What should be the gap between two Board Meetings?
Answer:
The gap between the two Board Meetings should not be more than 120 days.

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

Question 1.
Minimum four Committee Meetings must be held in a year.
Answer:
Minimum four Directors Meetings must be held in a year.

Question 2.
Creditors Meeting must be held once a year.
Answer:
Annual General Meeting must be held once a year.

Question 3.
Extra Ordinary Meeting must be held every year.
Answer:
Annual General Meeting must be held every year.

Question 4.
The Meeting of all Directors is called Annual General Meeting.
Answer:
The Meeting of all Directors is Called Director’s Meeting.

2. Explain the following terms/concepts.

Question 1.
Committee Meeting
Answer:
The Board of Directors may from the committee and delegate some of its powers to them. This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act. A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Question 2.
Virtual Meeting
Answer:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

Question 3.
Creditor’s Meeting
Answer:
Creditors of the company include Debenture holders, Depositors, Banks, and others. The meeting of creditors is called when the company proposes to make a scheme for an arrangement with its creditors.
E.g. In the case of winding up of the company, a meeting of creditors and of contributors is held to ascertain the total amount due by the company and also to appoint a liquidator to wind up the affairs of the company.

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

1. Platinum Limited Company was incorporated on 1st January 2018. Advice the Board of Directors on the following matters.

Question (a).
Within what period should the company hold its 1st Annual General Meeting?
Answer:
First Annual General Meeting must be held within Nine (9) months of the closing of its financial year.

Question (b).
At which place should the Annual General Meeting be held?
Answer:
Annual General Meeting should be held at the registered office or at some other place within the city or village which the registered office of the company is situated.

Question (c).
How many days in advance should the notice and agenda be sent to members?
Answer:
Notice and Agenda should be sent 21 clear days before the Annual General Meeting.

2. XYZ Ltd held its Annual General Meeting on 11th May 2018. On 1st June Mr. X, a Director of the company was arrested for a financial scam. Hence the shareholders of the company want to remove him.

Question (a).
Can the company call for the next Annual General Meeting to be held immediately to remove the Director?
Answer:
No, the company cannot call the next Annual General Meeting immediately to remove the director.

Question (b).
Which meeting of members should the company hold to discuss the removal of the Director?
Answer:
Extra Ordinary General Meeting should be called to discuss removal of the director.

Question (c).
What type of resolution will be passed in this meeting for the removal of the Director?
Answer:
A resolution requiring special notice (section 115) will be passed in the meeting for the removal of the director.

4. Distinguish between the following.

Question 1.
Shareholders’ Meeting and Board Meeting.
Answer:

Basis

Shareholder’s Meeting (Annual General Meeting)

Board Meeting (Director’s Meeting)

1. Meaning

It is the meeting of all the members or shareholders of the company.

It is the meeting of all the Directors of the company.

2. Number of times

Annual General Meeting is held once every year. Extra Ordinary General Meeting is held to discuss urgent and important matters. It is called in between two Annual General Meetings.

Minimum 4 meetings to be held in a year and the gap between two meetings should not be more than 120 days.

3. Quorum

Quorum in case of Public Company is as follows:

No. of Shareholders	Quorum
Up to 1000	5 members
1000-5000	15 members
More than 5000	30 members

In the case of the private company, 2 members present in person shall be the quorum.

The quorum for the Board Meeting is a minimum of 2 Directors or 1/3rd of its total Directors whichever is higher.

4. Proxy

Members can appoint a proxy to attend and vote at the meeting on their behalf.

Directors cannot appoint a proxy to attend and vote at the meeting.

5. Notice

Notice of shareholder’s meeting must be sent to all the members at least 21 clear days before the meeting.

Notice of Board Meeting must be sent to every Director at least 7 days before the meeting.

6. Purpose

The purpose of this meeting is to take approvals from shareholders on the Annual Report, Appointment of Auditor, etc.

The purpose of this meeting is to discuss policy matters, future planning, etc.

Question 2.
Annual General Meeting and Extra-ordinary General Meeting
Answer:

Points	Annual General Meeting	Extraordinary General Meeting
1. Meaning	It is a meeting of shareholders held once in a year as per the provisions of Section 96 of the Companies Act, 2013.	It is a meeting of shareholders held under special conditions to discuss urgent and important matters as per the provisions of Section 100 of the Companies Act, 2013.
2. Purpose	The purpose is to give information about the progress made by the company during the year.	The purpose is to discuss urgent and important matters that cannot be postponed till next Annual General Meeting.
3. Number of times	The first Annual General Meeting is held within 9 months of the completion of the financial year and the subsequent Annual General Meeting is held within 6 months of the completion of the financial year.	Extraordinary General Meeting is held anytime between two Annual General Meetings.
4. Authority	Annual General Meeting is normally called by the Board of Directors and can be called by the Central Government under special circumstances.	Extra-ordinary General Meeting can be called by: Board of Directors Board of Directors on the requisition of members The National Company Law Tribunal
5. Business transacted	To approve annual accounts To approve Auditors and Director’s Report To appoint Auditors, Directors, etc. To declare a dividend.	To alter Articles of Association. To alter Memorandum of Association. Removal of Director. Voluntary winding up of a company.
6. Penalty	In case of default in holding Annual General Meeting, every officer concerned is punishable with a fine upto ₹ 1,00,000 and fine of ₹ 5,000 per day till default continues.	If the directors fail to hold this meeting on requisition, the requisionist themselves can hold it and recover the expenses from defaulting directors.

5. Answer in brief.

Question 1.
List the duties of a Secretary after the Annual General Meeting.
Answer:
Duties of a Secretary after Annual General Meeting:

Drafting Minutes: The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.
Implementation of decisions: The secretary instructs the concerned department for implementing the decisions taken at the meeting.
Dispatch Dividend Warrants: The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.
Filing Resolutions: The secretary has to file an Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.
Information to Absent Members: The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
State the objectives of the Annual General Meeting.
Answer:
Purpose or objectives of Annual General Meeting: The main objective of holding an Annual General Meeting is to provide an opportunity to members to discuss the functioning of the company.

To review the progress and performance of the company.
To approve annual accounts, director’s report, and auditor’s report.
To appoint auditors and fix their remuneration.
To declare a dividend.
To elect new directors in place of retiring Directors To transact special business, if any like-
- business of the company taken over by the Government.
- the company did not function well through the year, etc.

Question 3.
State any four legal provisions regarding Board Meeting.
Answer:
Legal Provisions relating to Board Meeting:
(i) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(ii) Number of Board Meetings:

First Board Meeting shall be held within 30 days of the date of its incorporation.
Subsequently, there should be four meetings in a year.
The gap between the two meetings should not be more than 120 days.
At least one Board meeting should be held in 6 months in case of one person company, small company and dormant company.
The gap between two meetings should not be more than 90 days in the case of one person company, a small company, and a dormant company.

(iii) Notice [Section 173(3)]:

The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
It can also be sent by post or by hand delivery or by E-mail.
If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(iv) Quorum (Section – 174):

The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
Any fraction should be rounded to one.
Interested directors (personal interest in any matter) are not included in the quorum.

Question 4.
What are Class Meetings?
Answer:
Class Meetings (Section 48):

When the meeting of a particular class of shareholders takes place such as a preference shareholders meeting, it is known as a class meeting.
Such a meeting may be called for an alteration in the right and privileges of that particular class of shareholders.
It can also be called for the purpose of conversion of one class of shares into another.
The class meeting is not held regularly.

Question 5.
What is the purpose of conducting an Extra-ordinary General Meeting?
Answer:
Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

Alteration in the Memorandum of Association.
Alteration in Articles of Association.
Reduction of Share Capital.
Removal of a Director before the expiry of his term.
Removal of an Auditor before the expiry of his term.
Voluntary winding up of the company.

6. Justify the following statements.

Question 1.
Annual General Meeting is adjourned in absence of a quorum.
Answer:

Quorum is a minimum number of members to be present for a valid Meeting.
As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

For a private company minimum of 2 members should be present
If the meeting is conducted without a quorum, it is considered invalid.
In the absence of a quorum, Annual General Meeting is adjourned.
Adjourned Meeting will be convened on the same day, same time, and the same place in the next week.

Question 2.
A notice of the meeting must be sent to all members in case of the General Meeting.
Answer:

The Board of Directors is the authority to convene general meetings.
The notice must be given 21 clear days before the meeting to all those who are entitled to receive it.
The notice must be sent to all the members at their registered address in India.
Notice can be sent by registered post, if requested by the member, charges for the same is to be paid in advance.
Notice is also given in all leading newspapers.
Notice is accompanied by agenda and also Annual report, Auditor report, Annual accounts, etc. in case of Annual General Meeting.

Question 3.
Extra Ordinary General Meeting is called under special circumstances.
Answer:

Extraordinary General Meeting is held in between two Annual General Meetings.
It is held when the matter is of utmost importance and it cannot be postponed till the next Annual General Meeting.
It can be called to make shareholders aware of the happenings in the company.
It can also be called to seek their approval on important and urgent matters.
Important and urgent matters can be:
- Alteration in Memorandum of Association
- Alteration in Articles of Association
- Reduction in share capital
- Removal of a director or auditor
- Voluntary winding up of a company, etc.

Question 4.
Board of Directors can exercise their powers collectively through the Board Meeting.
Answer:

Directors collectively are called as Board of Directors.
The Board of Directors has to meet frequently with reference to the day-to-day working of the company.
All important decisions can be taken by the Board of Directors in the Board Meeting collectively.
Powers which can be exercised at Board Meeting are:
- The power to fill casual vacancies in the Board.
- To recommend the rate of dividend.
- The power to appoint managing Director, Manager, etc.
- To sanction a contract.
- To give loans or invest in shares of other companies.

Question 5.
The Quorum for the Annual General Meeting of a public company depends upon the number of shareholders.
Answer:

Quorum is a minimum number of members to be present for a valid meeting.
As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company are as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

- If the number of shareholders is up to 1000, then the required quorum is 5 members.
- If the number of shareholders is more than 1000 and up to 5000, then the required quorum is 15 members.
- If the number of shareholders exceeds 5000 then the quorum is 30 members for a public company.
In the absence of a quorum, if the meeting is conducted or a resolution is passed, it is considered illegal and invalid.
In the absence of a quorum, the meeting is adjourned to the same day, same place, and same time in the next week.

Question 6.
When a company is in financial difficulty it may call a meeting of creditors.
Answer:

Creditors of the company include Debenture holders, Depositors, Banks, financial institutions, etc.
When a company is in a financial crisis, it seeks the help of creditors.
The company can request creditors to alter the rate of interest, to alter the terms of security, etc.
Meeting of creditors can be called to compromise in a dispute with them.
Creditors and contributors can provide financial help to the company to safeguard them and also to protect them to avoid winding up of a company.

Question 7.
As per the Companies Act, every company has to hold the Annual General Meeting.
Answer:

Every company other than one person company must hold an Annual General Meeting once a year.
Annual General Meeting is held to review the working of the company during the previous financial year and take an effective decision for the next year.
It is mainly called to approve Annual Report, Auditor Report, Annual Accounts, to declare a dividend, to elect Directors, Auditors and to transact special business, if any.
First AGM shall be held within 9 months of the closing of the first financial year of the company.
The time interval between two Annual General Meetings should not be more than 15 months.
If the default is made in holding AGM then the company and every officer of the company in default are punishable with a fine which may extend up to ₹ 1,00,000 and up to ₹ 5,000 per day till default continues.

7. Answer the following questions.

Question 1.
Explain the functions of a secretary related to the Annual General Meeting.
Answer:
Functions (duties) of secretary related with Annual General Meeting:
Secretary has to perform many functions related to all types of meetings like Board Meeting, Annual General Meeting, etc. He has to perform all duties in compliance with the provisions of the Act. Secretary has to perform functions before, during, and after the meeting.

Functions of a secretary related to Annual General Meeting are as follows:
Functions Before the Annual General Meeting:
(i) Preparation of Accounts and Reports:
The secretary has to ensure that the Annual Accounts, Annual Report, and Auditor Report are prepared for consideration and approval.

(ii) Board Meeting:
Board Meeting is called to transact the following business:

To adopt Annual Accounts duly audited.
To adopt Director’s Report
To consider the rate of dividend
To fix the day, date, time, and place of the Annual General Meeting.

(iii) Notice:
The secretary has to send 21 clear days’ notice of a meeting to members and auditors before the meeting along with the auditor report, annual report, annual accounts, agenda, etc. The secretary has to arrange for publishing the notice of the meeting in leading newspapers.

(iv) Chairman Speech:
The secretary has to assist the chairman in drafting his speech to be delivered at the meeting.

(v) Preliminary Arrangement:
The secretary has to make arrangements such as booking of hall, refreshments, Register of Members, Members Attendance Book, etc.

Functions During the Annual General Meeting:
(i) Attendance:
The secretary has to get signatures of members present at the meeting in ‘Members Attendance Book.’

(ii) Quorum:
The secretary should see that the required quorum is present at the meeting and informs the chairman of the meeting.

(iii) Reading of Reports:
The secretary has to read the notice, Director’s Report, and Auditor’s Report as directed by the Chairman.

(iv) Notice of Proceedings:
The secretary should take down the notes of the proceedings of the meeting. He has to draft the minutes on the basis of these notes.

(v) Assist Chairman:
The secretary has to assist the chairman during the meeting. He should provide information, documents, etc as and when needed.

(vi) Conduct of Poll:
Secretary makes arrangements for conducting the poll if it is demanded by the members.

Functions After the Annual General Meeting:
(i) Drafting Minutes:
The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.

(ii) Implementation of decisions:
The secretary instructs the concerned department for implementing the decisions taken at the meeting.

(iii) Dispatch Dividend Warrants:
The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.

(iv) Filing Resolutions:
The secretary has to file the Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.

(v) Information to Absent Members :
The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
Explain the different types of General Meetings of a company.
Answer:
General Meetings are meetings of Equity shareholders of the company. There are two types of General Meetings:

Annual General Meeting
Extraordinary General Meeting.

1. Annual General Meeting (Section 96):
Every Company other than One Person Company must hold Annual General Meeting once in a year.
Purpose or Objective of Annual General Meeting:

To review the progress and performance of the company.
To approve annual accounts, director’s report, and auditor’s report.
To appoint auditors and fix their remuneration.
To declare a dividend.
To elect new directors in place of retiring directors.
To transact special business, if any.

Legal Provisions relating to Annual General Meeting:
(i) Time Limit:

The time interval between two Annual General Meetings should not be more than 15 months.
Extension of time for holding the Annual General Meeting may be given by the Registrar to the company for a period not more than three months, except for the first Annual General Meeting.
One person company is exempted from the provision of Annual General Meeting.

(ii) Authority to Convene Annual General Meeting:
The Board of Directors is the proper authority to convene the Annual General Meeting.

(iii) Notice:
The notice must be given to all those who are entitled to receive it, at least 21 clear days in advance of the meeting. It is sent to the members at their registered address by post or through electronic mode like Email, etc.

(iv) Time, Day, and Place of Annual General Meeting:
Annual General Meeting shall be called during business hours between 9 am to 6 pm on any day other than National holidays. It can be held at the registered office or at some other place within the city or village in which the registered office of the company is situated.

(v) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Upto 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

For a private company minimum of two members should be present in person.

(vi) Adjournment:
In the absence of a quorum, Annual General Meeting stands adjourned. It will be convened on the same day, same time and the same place in the next week.

(vii) Default:
If the default is made in holding the Annual General Meeting as per the provisions of the Act or as per the instructions of the Central Government, the company and every officer of the company who is in default are punishable with a fine which may extend up to ₹ 1,00,000/-. If the default continues fine may extend up to ₹ 5,000 per day till the default continues.

2. Extra-Ordinary General Meeting (Section – 100):
Meaning:
It is a meeting which is called in between two Annual General Meetings under special circumstances, which cannot be postponed till the next Annual General Meeting. The matters discussed under this meeting is of utmost importance and urgent by nature.

Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

Alteration in the Memorandum of Association.
Alteration in Articles of Association.
Reduction of Share Capital of the company.
Removal of a Director before the expiry of his term.
Removal of an Auditor before the expiry of his term.
Voluntary winding up of the company.

Legal Provisions relating to Extra Ordinary General Meeting:
(i) Time for holding a meeting:
Extra Ordinary General Meeting is held between two Annual General Meetings under special circumstances. It can be held at any time as per the requirements of the company.

(ii) Authority to Convene:

The Board of Directors has the right to call an Extra-Ordinary General Meeting by sending a proper notice to the shareholders.
Extra-Ordinary General Meeting can be called by the members holding at least 1/10th of the paid-up capital or 1/10th of voting power in the company. Board must call Extra-Ordinary General Meeting within 45 days of receiving the requisition from the members.
If the Board fails to call such a meeting then the requisitionists themselves call this meeting within 3 months from the date of deposit of the requisition. The company shall pay all the expenses incurred for holding such meetings by the requisitionist.
National Company Law Tribunal (NCLT) can order such meetings on its own or at the request of a director or any members having voting rights.

(iv) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

For a private company minimum of two members should be present in person.

Question 3.
Explain the different types of Director’s Meetings.
Answer:
Director’s meeting:
Directors collectively are called as Board of Directors. They meet regularly to discuss and decide upon company matters, implementation of plans and review the progress made by the company.

(i) Board Meeting (Section 173):
It is a meeting of the Board of Directors. The Board of Directors has to meet frequently with reference to day to day working of the company. The Board of Directors can exercise their powers collectively through the Board Meeting.

Legal Provisions relating to Board Meeting:
(a) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(b) Number of Board Meetings:

First Board Meeting shall be held within 30 days of the date of its incorporation.
Subsequently, there should be four meetings in a year.
The gap between the two meetings should not be more than 120 days.
At least one Board meeting should be held in 6 months in case of one person company, small company, and dormant company.
The gap between two meetings should not be more than 90 days in the case of one person company.

(c) Virtual Meeting/Video Conferencing:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

(d) Notice [Section 173(3)]:
The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
It can also be sent by post or by hand delivery or by E-mail.
If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(e) Quorum (Section – 174)

The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
Any fraction should be rounded to one.
Interested directors (personal interest in any matter) are not included in the quorum.

(f) Adjournment:
The meeting of the Board of directors can be adjourned in the absence of a quorum.
The adjourned meeting can be held on the same day, same time and the same place in the next week.

(ii) Committee Meeting:

The Board of Directors may from the committee and delegate some of its powers to them.
This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act.
A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Activity 1 (Textbook Page No. 123)

Visit the website of any public company and study its Annual Report/Director’s Report.
Answer:
[Note: Students should do this activity by themselves with the help of the internet.]

Activity 2 (Textbook Page No. 127)

Enlist the functions of a Secretary related to an Extra-Ordinary Meeting.
Answer:
Functions of Secretary Relating to Extra Ordinary General Meeting:
(i) Before the Meeting:

Time of Holding: To decide the date, time, place, and agenda for holding the meeting in consultation with the chairman of the company and to convene the Board Meeting for finalization of these things by passing a resolution to that effect.
Drafting of Resolution: To draft the proposed resolution and explanatory statements and to get them approved by the board.
Notice: To draft the notice of the meeting and arrange to get the same printed together with the explanatory statements, proxy forms, and admission cards. To send the notice with agenda to all the members, at least 21 days before the meeting.
Public Notice: The notice is also published in the leading newspapers for the information of the general public.
Notice to Stock Authorities: If the shares are listed on the stock exchange, a notice of the meeting is sent to stock exchange authorities too.
Proxy: To verify proxy forms received and enter them in the proxy register.
Preparing Documents: The important documents, records, Books, etc. are kept ready for reference during the meeting.

(ii) During the Meeting:

Checking: To check the admission card of the members.
Attendance: To take attendance of members.
Ascertaining Quorum: To ascertain the quorum.
Reading Notice: To read the notice convening meeting.
Assist Chairman: To assist the chairman, by providing necessary information, records documents.
Notes of Proceedings: To make notes of the proceedings of the meeting.

(iii) After the Meeting:

Drafting Minutes: To draft the minutes of the meeting and enter the same in the Minute Book.
Signed by the Chairman: To get Minutes signed by the chairman of the meeting.
Filing of Resolution: To file the certified copy of the resolution passed at the meeting, to the Registrar of Companies.
Sending Intimation: To send intimation to the concerned persons.
Implementations: To carry out decisions taken at the meeting.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary

May 25, 2024May 24, 2024 by Bhagya

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary

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

Question 1.
Business communication is concerned with ____________ activities.
(a) economic
(b) business
(c) social
Answer:
(b) business

Question 2.
Written communication is a ____________ record.
(a) permanent
(b) temporary
(c) unauthorised
Answer:
(a) permanent

Question 3.
E-mail is ____________ mode of communication.
(a) fastest
(b) slowest
(c) costliest
Answer:
(a) fastest

Question 4.
A unique internet address of website is known as ____________
(a) World Wide Web
(b) Uniform Resource Locater
(c) .com
Answer:
(b) Uniform Resource Locater

Question 5.
____________ is an organised statement of facts.
(a) Report
(b) Notice
(c) Heading
Answer:
(a) Report

Question 6.
There should be proper ____________ between words, lines and between paragraphs.
(a) margin
(b) typing
(c) spacing
Answer:
(c) spacing

Question 7.
____________ refers to use of minimum words.
(a) Courtesy
(b) Conciseness
(c) Correctness
Answer:
(b) Conciseness

Question 8.
A letter without ____________ is invalid.
(a) ‘You’ attitude
(b) signature
(c) clarity
Answer:
(b) signature

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Twitter	(1) Hearing and understanding
(b) Consideration	(2) Personable
(c) Active listening	(3) Harsh, rude words
(d) Body language	(4) Social Media
(e) Courtesy	(5) Non-verbal communication
	(6) Blog
	(7) ‘You’ attitude
	(8) Empathy
	(9) SMS
	(10) Politeness

Answer:

Group ‘A’	Group ‘B’
(a) Twitter	(4) Social Media
(b) Consideration	(7) ‘You’ attitude
(c) Active listening	(1) Hearing and understanding
(d) Body language	(5) Non-verbal communication
(e) Courtesy	(10) Politeness

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

Question 1.
Process of communication, conveying a message in spoken form.
Answer:
Verbal communication

Question 2.
A set of interconnected web pages located on a single web domain.
Answer:
Website

Question 3.
Part of a business letter that introduces the sender to the receiver.
Answer:
Heading

Question 4.
A written summary of the business transacted at the meeting.
Answer:
Minutes

Question 5.
Part of a letter that contains the name and address of the sender.
Answer:
Heading or Letterhead

Question 6.
Audio-Visual means of electronic communication.
Answer:
Video conference

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

Question 1.
Notice is a written summary of business transacted at a meeting.
Answer:
False

Question 2.
Written communication provides permanent records.
Answer:
True

Question 3.
Active listening is essential for effective communication.
Answer:
True

Question 4.
The inside address gives the name and address of the sender.
Answer:
False

Question 5.
A letter without a date is incomplete and invalid.
Answer:
True

Question 6.
The reference number shows the purpose of the letter.
Answer:
False

Question 7.
Coherence refers to the logical arrangement of the contents of a letter.
Answer:
True

Question 8.
A letter should have minimum folds.
Answer:
True

1E. Find the odd one.

Question 1.
Paper, Margin, Typing, Courtesy
Answer:
Courtesy

Question 2.
Clarity, Courtesy, Spacing, Correctness
Answer:
Spacing

Question 3.
Date, Inside Address, Conciseness, Subject
Answer:
Conciseness

1F. Complete the sentences.

Question 1.
When communication is done through Reports, Letters, Circulars, etc it is called as ____________
Answer:
written communication

Question 2.
Proper arrangement of different parts of business letter is called as ____________
Answer:
layout

Question 3.
The part of the letter which contains the name and address of the receiver of the letter is called as ____________
Answer:
inside address

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) You Attitude	…………………………
(2) Conciseness	………………………..
(3) ………………….	Complete information
(4) …………………	Polite language

(Minimum words, Completeness, Courtesy, Consideration)
Answer:

Group ‘A’	Group ‘B’
(1) You Attitude	Consideration
(2) Conciseness	Minimum words
(3) Completeness	Complete Information
(4) Courtesy	Polite language

1H. Answer in one sentence.

Question 1.
Name the type of communication in which words are not used.
Answer:
Non-verbal communication is the type of communication in which words are not used.

Question 2.
Name the type of communication in which communication is done in spoken form.
Answer:
Verbal communication is the type of communication in which communication is done in spoken form.

Question 3.
Name the type of communication which can be re-read.
Answer:
Written communication is the type of communication that can be re-read.

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

Question 1.
Consideration means the letter should be in a logical sequence.
Answer:
Coherence means the letter should be in a logical sequence.

Question 2.
Completeness means the use of minimum words.
Answer:
Conciseness means the use of minimum words.

Question 3.
Complimentary close contains greetings to the reader of the letter.
Answer:
Salutation contains greetings to the reader of the letter.

1J. Arrange in proper order.

Question 1.
(a) Heading
(b) Complimentary close
(c) Subject
Answer:
(a) Heading
(b) Subject
(c) Complimentary close

Question 2.
(a) Enclosure
(b) Body of letter
(c) Date
Answer:
(a) Date
(b) Body of letter
(c) Enclosure

2. Explain the following terms/concepts.

Question 1.
Communication
Answer:

Communication is derived from the Latin term ‘communis’ that means ‘common’- ‘Shared by all’.
Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
Communication is a two-way process where the thoughts feelings and opinion is transmitted.
Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
It is giving or exchanging information, signals, or messages by talk, gestures, or writing.

Question 2.
Business Communication
Answer:

Business communication is the branch of general communication especially concerned with business activities.
It is a process through which information, facts, ideas, orders, decisions, etc. are exchanged between the person associated with the business.
The success of the business enterprise depends largely upon good communication.
Ineffective communication may cause loss of money and even goodwill of a business.
Thus, business communication relating to trade, law, management, finance, etc. of a business enterprise is termed as business communication.

Question 3.
Written Communication
Answer:

The exchange of information or ideas in a written form is known as written communication.
Written communication includes reports, letters, circulars, etc.
Written communication is the most important and the most effective mode of business communication.
The words written should convey specific meaning and should not confuse the reader.
Letters, memos, notices, circulars, reports, minutes are some common types of written communication.

Question 4.
Business Correspondence
Answer:

Communication through the exchange of letters is known as correspondence.
A businessman who writes letters in his day-to-day transactions is called business correspondence.
Business correspondence is a written communication between two parties.
Business correspondence takes place because the place of production and place of consumption is not the same.

Question 5.
Report
Answer:

A report is an organized statement of facts or opinions leading to some conclusion with or without some recommendations.
It is a systematic presentation of facts on a specific topic.
Some reports are made as per the Companies Act and some are prepared as per the requirement of the company.
A report may be prepared by an individual or by a committee.

Question 6.
Minutes
Answer:

It is a written summary of the business transacted at the meeting.
It is a concise and accurate official record of the discussion and decision at company meetings.
It can be used for future reference.
Minutes is the official record of the meeting so it is necessary to draft minutes in a proper format.
Minutes should be prepared by the secretary within 15 days of a meeting.
It is always written in the past tense.
Minutes are prepared by the secretary, confirmed by a member, signed by a chairman, and countersigned by the secretary.

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

1. Mr. Rahul is the secretary who has been asked by the Managing Director to inform a director about a decision taken in a board meeting in which he was absent. Which aspect of essentials of a good business letter he follows:
(Clarity, conciseness, coherence, courtesy, completeness, correctness)

Question (a).
When he is giving the required information in a very short and brief manner?
Answer:
Clarity and conciseness

Question (b).
When he is using courteous words so as to be polite?
Answer:
Courtesy

Question (c).
When he is giving the entire information about the meeting in a proper manner?
Answer:
Coherence, completeness, and correctness.

4. Answer in brief.

Question 1.
Explain any four essentials of effective communication.
Answer:

Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
Being able to communicate effectively is an essential skill.

The following are the essentials skills for effective communication:
(a) Listening:

One of the most important aspects of business communication is being a good listener.
Effective communication requires active listening.
Active listening involves hearing and understanding a person.

(b) Body language:

Body language is an important communication tool.
Body language should convey words.
Tone, hand gestures, and ensuring eye contact are involved in body language.

The message should be conveyed by using as few words as possible, whether in person or through telephone, or e-mail.
The message should be clear concise and direct.
Excessive words should be avoided.
Thought should be given to the message before being conveyed in order to avoid confusion.

(d) Confident:

For effective communication, confidence is needed.
Making eye contact but having a friendly tone always shows confidence.

Question 2.
State any four essentials of a good business letter.
Answer:

A business letter is a type of written communication written by the secretary.
Good letter writing is important for maintaining the image of the business.
It helps in understanding the objective of the content and helps to make the correct decision.

A business letter should possess the following qualities:
(a) Clarity:

The message of the letter must be clear.
Simple and common words are to be used.
Technical and short forms should be avoided.
Names and figures should be correct and clear.

(b) Conciseness:

The letter should be brief.
Minimum words are to be used.
Unnecessary and irrelevant information should be avoided.
A brief letter saves time for the reader.

A letter must give complete information to the reader.
The letter should cover all possible facts related to the subject matter.
An incomplete letter does not achieve the desired results.

(d) Courtesy:

Courtesy means the language of the letter must be polite and kind.
A courteous letter gets a favorable response from the reader.
Harsh, rude words, insulting remarks must be avoided.

5. Justify the following statements.

Question 1.
Written communication is very useful to the organization.
Answer:

The exchange of information or ideas in a written form is known as written communication.
Written communication is the most important and effective mode of business communication.
It provides us with records, references, etc. on which important decisions are taken.
It provides legal defense to the organization through records, letters, instructions, etc.
It provides uniformity of policy and procedures and builds proper guidelines for the working of the organization.
It builds an image of the company.
It leads to accuracy and dependability.
Responsibility can be easily assigned through written communication.
It is permanent in nature.
Thus, written communication is very useful for the organization.

Question 2.
Social media network is very useful to the business.
Answer:

Social media are online interactive groups created using advanced mobile and web-based technologies.
From the business point of view, it provides a great opportunity to interact with the public and communicate about their product and services.
It helps in developing loyalties.
It builds a strong relationships with the audience and consumers.
Social networking makes relationships more personal.
Business can be promoted more effectively through advertising.
Thus, social media network is very useful to the business.

Question 3.
Listening is the most important aspect of effective communication.
Answer:

The most important aspect of effective communication is being a good listener.
Effective communication requires active listening.
Active listening involves hearing and understanding what a person is saying to you.
Without the ability to listen effectively, messages are generally misunderstood.
Good listening skills can lead to better customer satisfaction.
It can increase productivity with fewer mistakes.
Increased sharing of information will lead to more creative and innovative work.
Thus listening is the most important aspect of communication.

6. Answer the following questions.

Question 1.
State the merits of written communication.
Answer:

When the exchange of information or ideas is in a written form is known as written communication.
Written communication includes reports, letters, circulars, etc.
Written communication is the most important and the most effective of any mode of business communication.
The words written should contain specific meaning and should not confuse the reader.
Letter, memos, notices, circulars, minutes are some common types of written communication.

The following are the merits of written communication:
(a) Accurate and precise:

Written communication is drafted with great care.
The communicator has to be accurate and factual as it is open to verification.
Therefore written communication focuses greater on accuracy and precision.

(b) Re-read many times:

The receiver of written communication can read the message any time again in the future.
He can re-read it till it is properly understood by him.

(c) Permanent record:
Written communication becomes a permanent record of the organization and can prove very useful for future reference.

(d) Documentary evidence:
Written communication is acceptable as legal documents and as legal evidence also.

(e) Wide access:
Written communication is the best channel of communication for conveying information to people living in different places.

(f) No need for personal contact:

It is not necessary for both parties to be available at the time of communication.
Messages can be sent to the concerned person who can read when receives and gets spare time.

(g) Completeness:

Written messages are prepared with perfect knowledge related to the matter.
So there is completeness in the message.

(h) Economical:

This method is economical when the receiver is far away from the business place.
E-mails are the most popular method of written communication.

Question 2.
Explain different parts of a business letter.
Answer:

A business letter is a type of written communication written by a secretary.
Good letter writing is important for maintaining the image of the business.
The business letters are written with the objective of understanding and take the correct decisions.

The following are the different parts of the business letter:
(a) Heading:

The heading contains the name, address, telephone number, email id, website CIN of the company.
It is that part of the business letter which introduces the sender to the receiver.

Eg. TATA MOTORS LTD.
176, S.B. Road. MIDC,
Pune – 411015
CIN – L28920MH1945PLC004520
Telephone – (022)4756823
Email – tatamotors@gmail.com
Website – www.tatamotor.com

(b) Date:

The date is written on the right-hand side of the letter just below the heading.
The date includes the date, month, and year.
A letter without a date is incomplete.
The date is very important as the letter acts as legal evidence.
Eg. British style – 1st April 2019
American style – April 1st, 2019

It is written on the left-hand side below the heading.
The reference number is given to have a quick reference to the matter concerned.
The outgoing letter is given a reference number.

(d) Inside address:

It contains the name, address of the receiver of the letter.
It is written on the left-hand side of the letter.
For names, Mr, Shri, Mrs, or Smt are used and for firms, Messrs is used.

(e) Subject:

The reader gets the idea of the matter of the letter without reading the letter completely.
It helps to send it to the concerned section.
It is written in brief as the subject.

(f) Salutation:

Salutation is a greeting from the writer.
It creates a favorable impression on the reader’s mind.
It appears on the left margin below the inside address.

(g) Body of the letter:

It is the most important part of the business letter.
It contains the actual message for the receiver of the letter.
The message should be divided into paragraphs. The first paragraph, Main paragraph, Closing paragraph.

(h) Complimentary close:

This is the concluding part of the letter.
It is written below the body of the letter on the right-hand side.
It shows the polite end of the letter.
It should match salutation.

(i) Signature:

It is the final part of the letter.
A letter without a signature is incomplete and invalid.
Below the signature, the name and his or her designation are written.
The person who signs is responsible for the matter written in the letter.

(j) Enclosure:

It includes documents, cheques, etc. which are attached with the letter.
It is shown by word enclosure which is written on the left-hand side.

Activity (Textbook Page No. 144)

How can a company use Twitter and Blogs to reach out to outsiders?
Answer:

Twitter is considered to be an effective tool to grow your business and its brand name.
Twitter uses attractive hashtags that attract the attention of the targeted audience or customers.
It is an excellent platform to approach and get connected to new audiences gaining their positive opinions.
The cost of Twitter is very nominal, so small business organizations can use its benefits easily.
Twitter helps to connect a huge number of new customers as well as keep connected to old customers.
It also helps to build the brand name and recognition with the help of advertisements.
It helps to create a customer support channel and recognition who tweets positively as well as negatively about your product. Thus company or firm can improve its brand name.
Similarly, blogging also helps businesses to compete with competitors in the market.
Blogging helps to post in detail the qualities of your product which reaches a number of customers.
Needed customers can easily approach your business or profession by viewing your blog.

Maharashtra Board OCM 11th Commerce Solutions Chapter 8 Introduction to Management

May 24, 2024May 23, 2024 by Prasanna

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 8 Introduction to Management Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 8 Introduction to Management

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

Question 1.
Management is ………………….
(a) dynamic
(b) static
(c) selective
Answer:
(a) dynamic

Question 2.
Management uses …………………. method of observation.
(a) unscientific
(b) artificial
(c) scientific
Answer:
(c) scientific

Question 3.
To help top level management in co-ordinating the activities is the function of …………………. level management.
(a) middle
(b) lower
(c) top
Answer:
(a) middle

Question 4.
To look after maintenance of machinery is the function of …………………. level of management.
(a) top
(b) middle
(c) lower
Answer:
(c) lower

Question 5.
Management is …………………. oriented action.
(a) policy
(b) profit
(c) goal
Answer:
(c) goal

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Management	(1) Need of creativity
(b) Management as a profession	(2) Can be seen.
(c) Top level management	(3) Administration
(d) Management as an art	(4) Intangible
(e) Lower level management	(5) Formal education
	(6) Policy framing.
	(7) Implementation of policies
	(8) Selective
	(9) Directing subordinates to complete the task
	(10) Cause effect relationship

Answer:

Part A	Part B
(a) Management	(4) Intangible
(b) Management as a profession	(5) Formal education
(c) Top level management	(6) Policy framing.
(d) Management as an art	(1) Need of creativity
(e) Lower level management	(9) Directing subordinates to complete the task

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

Question 1.
The art of getting things done through others.
Answer:
Management

Question 2.
The second level of management.
Answer:
Middle level

Question 3.
Systematic body of knowledge.
Answer:
Management as a Science

Question 4.
The level of management related to Managing Director.
Answer:
Top level management

Question 5.
Level of management that link top level and lower level management.
Answer:
Middle level management

1. (D) State True or False

Question 1.
Management is an ancient activity.
Answer:
True

Question 2.
Management is not objective oriented.
Answer:
False

Question 3.
In small organization also management is required.
Answer:
True

Question 4.
Middle level management forms policy of an organization.
Answer:
False

Question 5.
Various principles and techniques are used in management.
Answer:
True

1. (E) Find the odd one

Question 1.
Management is an – art, a science, a commerce, a profession.
Answer:
a commerce

Question 2.
Management as an Art – Singer, Actor, Dancer, Doctor.
Answer:
Doctor

Question 3.
Management as Profession – Doctor, Chartered Accountant, Lawyer, Singer.
Answer:
Singer

Question 4.
Level of Management – Lower Level, Middle Level, Top Level, High Level.
Answer:
High level

Question 5.
Top Level Management – Board of Directors, Presidents, Purchase Manager, Chief Executive Officer (CEO).
Answer:
Purchase manager

Question 6.
Middle Level Management – Departmental Head, Finance Manager, Production Manager, Supervisor.
Answer:
Supervisor

Question 7.
Lower Level Management – Supervisor, Foreman, Finance Manager, Office Superintendent.
Answer:
Finance Manager

1. (F) Complete the sentences

Question 1.
The English verb ‘manage’ came from Italian word ……………….
Answer:
Maneggiare

Question 2.
To manage is to forecast, to plan, to organize, to command, to co-ordinate and to ……………….
Answer:
control

Question 3.
Organization is a group of person who work together to achieve a ……………….
Answer:
common goal

Question 4.
Link between the top level and lower level of management is called as ……………….
Answer:
middle level management

Question 5.
Lower level management works under ……………….
Answer:
middle level management

Question 6.
Art is the bringing about a desired result through the application of ……………….
Answer:
skills

Question 7.
Any knowledge which is scientifically developed and consists of universally accepted principles is known as a ……………….
Answer:
science

Question 8.
Science is based on systematic experiments, on certain rules and on ……………….
Answer:
principles

Question 9.
Teacher, Doctor, C.A., Lawyer comes under the term ……………….
Answer:
profession

1. (G) Select the correct option

(Finance Manager, Art, CEO, Profession, Supervisors)

Part A	Part B
(1) Top level	—————-
(2) —————–	Lower level
(3) Middle level	—————-
(4) ————-	Doctor
(5) Singer	—————-

Answer:

Part A	Part B
(1) Top level	CEO
(2) Supervisors	Lower level
(3) Middle level	Finance Manager
(4) Profession	Doctor
(5) Singer	Art

1. (H) Answer in one sentence

Question 1.
What is called as management?
Answer:
Getting work done through others is called as management.

Question 2.
Name, the levels of management?
Answer:
Top level, middle level and lower level are the three levels of management.

Question 3.
What is top level management?
Answer:
The level of management that decides the long term objectives of organization and frame the plans and policies and take decisions is called as top level-management.

Question 4.
What do you mean by middle level management?
Answer:
The level of management which is concerned with implementation of plans and policies in the organization with the help of lower level management is known as middle level management.

Question 5.
What is lower level management?
Answer:
The level of management which is considered to do actual execution of plan is called as lower level management.

Question 6.
What do you mean by an art?
Answer:
An art means skill of individual, creativity, regular practice, personal abilities and innovativeness.

Question 7.
What is science?
Answer:
Science is a systematic body of knowledge and scientific methods.

Question 8.
What is the meaning of a profession?
Answer:
Profession means an individual having adequate knowledge and abilities which is helpful to handle different situations. They are trained people having formal education in management school and have a code of conduct.

1. (I) Arrange in proper order.

Question 1.
Middle level management, Top level management, Lower level management.
Answer:
Top level management, Middle level management, Lower level management.

Question 2.
Departmental Head, CEO, Supervisors, Managing Director.
Answer:
CEO, Managing Director, Departmental Head, Supervisors.

Question 3.
Office clerk, Shareholders, Managing Director, Board of Director.
Answer:
Shareholders, Board of Directors, Managing Director, Office clerk.

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

Question 1.
Management is only an art.
Answer:
Management is an art, a science and a profession.

Question 2.
There are five levels of management.
Answer:
There are three levels of management.

Question 3.
Lower level management works under top level management.
Answer:
Middle level management works under top level management.

Question 4.
Middle level management works under lower level management.
Answer:
Middle level management works under top-level management.

Question 5.
Management is pure science.
Answer:
Management is a social science.

Question 6.
The entry in any profession is not restricted.
Answer:
The entry in any profession is restricted.

Question 7.
Professionals need informal education.
Answer:
Professional need formal education.

2. Explain the following terms/concepts

Question 1.
Top level management.
Answer:

The top level management decides the long term objectives of organization, frames plans and policies and take decisions.
It consists of Board of Directors, Managing Director,CEO, President, etc.

Question 2.
Middle level management.
Answer:

The middle level management is a link between top level and lower level management.
It works under top level management.
This level is considered with implementation of plans and policies in the organization with the help of lower level management.
It consists of Head of Departments / Branch managers / Incharge, etc.

Question 3.
Lower level management.
Answer:

This is the last level of management.
It is a supervisory level of management.
It consists of superintendents, supervisors, foremen and junior executives.
Lower level management receives instructions from the authorities i.e. middle level management and direct subordinates wherever necessary.

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

1. While working in a company, Pranav used to give order to his subordinates about what is to be done and which work is to be done? In this organization, various employees like Pratap are doing their work assigned by Pravin. In this company, Pravin submits his report of work completion to Pranav after completing the work done by the employees like Pratap.

Question 1.
Identify different levels of management in above mentioned company.
Answer:
There are two levels of management i.e. middle and lower level of management in above mentioned company.

Question 2.
Find the level of Pranav in management of company.
Answer:
Pranav works in the middle level management of company.

Question 3.
Explain the functions and role of Pratap in his company.
Answer:
Pratap is an employee in a company. He works at the lower level. He executes the work assigned by Pravin.

4. Distinguish between the following

Question 1.
Top level Management and Middle level Management.
Answer:

	Top Level Management	Middle level Management
(1) Meaning	Top level management refers to top position in the organization such as Board of Directors, CEO, President, Managing Director, etc.	Middle level management refers to middle positions in the organization such as Departmental head, Managers like Finance manager, Production manager, Sales manager, Marketing manager, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with implementation of policies framed by top level management with the help of lower level management.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires combination of conceptual and decision making skills than technical skills.
(4) Promotion Policy	Policy At this level promotion is given on merit.	At this level promotion is based on merit as well as seniority basis.
(5) Time Frame	It considers longer period of time i.e. 5 to 20 years.	It considers medium period of time i.e. 1 to 5 years.
(6) Responsibility	Top level is responsible to shareholders, government and society.	Middle level is responsible to top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	Orders and instructions are passed to lower level and report of the work is submitted to top level.

Question 2.
Middle Level Management and Lower Level Management.
Answer:

	Middle Level Management	Lower Level Management
(1) Meaning	Middle level management refers to middle positions in the organization. E.g. departmental head, finance manager, etc.	Lower level management refers to lower / last positions in the organization. E.g. superintendents, supervisors, etc.
(2) Nature of Work	It is concerned with implementation of policies framed by top level with the help of lower level.	It is considered with actual execution of planning.
(3) Skills	It requires both conceptual and technical skills.	It requires more technical skills than other skills.
(4) Promotion Policy	Promotion is based on merit as well as seniority basis.	Promotion is based on seniority basis.
(5) Time Frame	It considers medium term i.e. 1 year to 5 years.	It considers very short period of time i.e. upto one year.
(6) Responsibility	It is responsible to top level management.	It is responsible to both top and middle level management.
(7) Flow of Order	Instructions and orders are passed to Lower level and report of the work is submitted to top level	Implementation is done as per the orders of middle level and reports are submitted to middle level.

Question 3.
Top Level Management and Lower Level Management.
Answer:

	Top Level Management	Lower Level Management
(1) Meaning	Top level refers to top positions in the organization. e.g. Board of directors, Managing Directors, CEO, President, etc.	Lower level management refers to lower positions in the organization. e.g. Junior Executives, Foremen, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with execution of plans and policies.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires more technical skills than conceptual skills.
(4) Promotion Policy	Promotion is based on merit basis.	Seniority is preferred for promotion.
(5) Time Frame	It considers for longer period of time i.e. 5 to 20 years.	Basically it is very short period of time i.e. upto 1 year.
(6) Responsibility	It is responsible to Shareholders, Government and Society.	It is responsible to middle as well as top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	It implements orders of middle level and also reports to the middle level.

5. Answer in brief

Question 1.
State any four features of Management.
Answer:
Following are the features of management:
(i) Management is Goal Oriented : Management activity is done to achieve pre-decided goals. The success of organization is calculated on the basis of achievement of desired goals. The success depends on proper management of all available resources. Management decides the goals before conducting the activity. The manager takes efforts to achieve these goals. So management is goal oriented.

(ii) Management is a Group Activity : “Management is an art of getting things done through others.” The above definition explains that management is done through / with the people. It is done by co-ordinating all resources effectively and efficiently. The activities are done under the guidance of manager by its team members. Also in organisation decisions are taken by the group of people such as Board of Directors, Shareholders, etc.

(iii) Management is Intangible : Management is the collective efforts of manager. It is a process of planning, organizing, decision making, directing and controlling. These cannot be seen physically. However, the results of best management can be experienced in the form of increased profits, attainments of pre-decided so management is tangible in nature.

(iv) Management is a Continuous Process : Management is essential throughout the life of organisation. It is necessary to start the activity, to run the activity in smooth manner and also to control the activity. It is endless process. It is required for survival of the organization continuously.

Question 2.
Write any four functions of Top Level Management.
Answer:
Following are the functions of Top Level Management:

To decide long term objectives of the organisation.
To frame plans and policies to achieve the set objectives.
To observe that policies are properly implemented.
To create various department and positions.

Question 3.
Write any four functions of Middle Level Management.
Answer:
Following are the functions of Middle Level Management:

To link the top level management and lower level management.
To understand plans and policies framed by top level management and prepare plan of action according to the nature of department.
To assign duties and responsibilities to the staff of the concerned department to achieve pre-defined goals.
To appoint lower level staff.

Question 4.
State any four functions of Lower Level Management.
Answer:
Following are the functions of Lower Level Management:

Do work under Middle Level Management.
To assign work to subordinates.
To give instruction to subordinates.
To direct the subordinates wherever necessary.

Question 5.
State any two points of relationship about management as an art.
Answer:
The relationship between art and management are:
(i) Personal Skills : In organization, every manager has to handle different situations, has to solve various problems, has to handle human resource, etc. with his own style. This style varies from manager to manager and so the result. This is because of the different skills and abilities of each person.

(ii) Creativity : Creativity refers to the ability to find something new and innovative. Manager finds out new ways to conduct organizational activities and to achieve desired goals. Manager develops new ideas according to the changes in business situation and in the business environment.

Question 6.
Explain any two points of relationship about management as a science.
Answer:
The following points shows there is a relationship in management as a science:
(i) Systematic Body of Knowledge : Pure science is based on systematic experiments, certain rules and principles. Management principles and functions are also based on the experiments which can be studied through various different management theories, techniques and approaches given by different management thinkers.

(ii) Universal Applicability of Principles : Scientific principles can be applied in all over the world in similar situation. Therefore, the same result can be drawn. Management principles are universal in nature. They can be applied everywhere, anytime and in any condition.

Question 7.
State hny two points of relationship about management as a profession.
Answer:
The relationship between profession and management can be seen with the help of following points:
(i) Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. Also he has particular skill in practicing as a professional. Manager also becomes an expert by practicing regularly in the specific field and can acquire certain knowledge and skill.

(ii) Registration : Professionals need to register themselves with their associations. For example, a Chartered Accountant should register himself with Institute of Chartered Accountant of India i.e. ICAI. Without registration certificate he cannot practice. In case of managers, there is no such body to register themselves. However, managers can take the membership of ‘Chambers of Commerce’ which gives them benefits.

6. Justify the following statements

Question 1.
Management is essential in professional and non-professional activities.
Answer:
(i) As management is universal in nature it is applicable everywhere, either it is a professional activity or non-professional activity.

(ii) Every person performs certain activity to achieve pre-decided goals. E.g. earning of profit, winning games, competitions, to increase goodwill, etc.

(iii) Organisations either large, medium or small, profit making or non-profit making, government or non-government organisation, etc. to get success, to attain goals every time management plays a vital role. It’s application ensures smooth functioning of business.

(iv) A professional acquires certain specific formal education. He has specific skill to achieve his goals. He performs management functions like planning, organizing, controlling, etc. Similarly, while performing non- professional activities like plantation of tree, blood donation campaign, a person also requires to perform certain management functions.

(v) Thus, management is essential in performing professional as well as non-professional activities.

Question 2.
Level of management depends upon the size of organization.
Answer:
(i) Making different parts for the smooth functioning of business and to achieve decided goals is called levels of management.

(ii) The size of business is small, medium or large. Every business needs to manage the activities efficiently and’ effectively.

(iii) The levels of management depends on size of organization. If the size of organization is small the classification of levels becomes easy and simple. Whereas in large organization, it becomes difficult and complicated. The levels of management in such organisation may be classified into three parts i.e. Top level, Middle level and Lower level.

(iv) These levels of management are important in organization. These levels have their own functions. As per that they have to perform their duties and responsibilities to attain their set goals and objectives.

(v) Thus, levels of management depends on size of organisation.

Question 3.
Management is a group oriented action.
Answer:
(i) In the words of Mary Parker Follet, “management is an art of getting things done through others”. Management focuses on completing the work through human resource.

(ii) It is co-ordinating of all available resources effectively and efficiently. In organisation, the activities are done by the subordinates, employees under the guidance of a manager.

(iii) A manager, though he is competent, able, has capacity, skills to perform the organizational task, it is not possible for a single manager to perform all the activities related to the said task alone.

(iv) To fulfill or accomplish the objectives and goals, he needs the help of other people, as it should be divided among all the employees, as per their skill, qualification, interest, knowledge and experience.

(v) Thus, management is a group oriented activity.

Question 4.
Management is an art.
Answer:
(i) An art is the bringing about a desired result through the application of skills. It is an innovativeness and creativeness of a person. This is a natural and inborn quality of a person. But with the help of proper education and practice one can developed the quality or qualities. E.g. acting, dancing, cycling, magician, singing, drawing, skating, musician, sports etc. comes under art.

(ii) Art does not require any specific educational qualification or it not any compulsion. It is inborn quality or a skill.

(iii) As a manager, in organisation he has to handle various kinds of situations, employees, other resources effectively and efficiently with his own style. So he uses his skills which are either inborn or developed by practice and formal education.

(iv) A manger must be innovative. He should handle the conditions. He should not use same methods all the time. Like an artist, he has to develop his skills by regular practice. He should use different techniques and skills to get perfect result. This is possible due to regular practice.

(v) Every managers has different abilities and skills. They have to use their own abilities and skills to guide the people to achieve their goals.

(vi) Thus, manager need to be creative and skilled like an artist. Hence, management is an art.

Question 5.
Answer:
There is no need of registration for managers.

Every professional is registered with the concerned body or organisation. A professional is formally, educated and also a skilled person.
A manager, now-a-days, possess a diploma or degree in management studies like Indian Institute of Management (IIM), PUMBA (Savitribai Phule Pune University, MBA) etc. A person who wants to be a manager acquires the required knowledge of the profession and trains himself / herself for the managerial job.
As management is a profession, a manager is not practicing independently. He is an employee of the organisation.
Thus, there is no need of registration for managers.

Question 6.
Management is a continuous process.
Answer:

Management is a continuous process. It is an important feature of management.
A manager of an organisation has to perform managerial work to achieve pre-defined goals of the organisation. To achieve these goals, he as a manager applies various functions of management, principles of management and also techniques of management.
From the beginning till the achievement of success, continuous efforts of every individual is required.
Continuity is an integral part of management. It is necessary through out the life of an organisation.
Therefore, management has become necessary to start the activity and to run the activity at the business smoothly.
Thus, management is a continuous activity. It is not a one time process, but it is never ending process.

Question 7.
Planning is a task of top level management.
Answer:

Planning means thinking before doing. It is thinking in advance. Before the action, there is a thinking process.
In the large organisation, management levels are divided into three parts i.e. top, middle and lower.
At the top level management, very few personnels are involves. They are Board of Directors, Managing Directors, President, Chief Executive Officer, etc.
The main function of top level management is to frame the plans and policies of the whole organisation to achieve its goals.
It decides the long term objectives of the organisation and also frames particular plans and policies to get them. Further, it also sees that the policies are properly implemented.
Framing of organizational objectives and accordingly plans and policies to achieve them becomes a tough task of top level management.
Thus, Planning is a task of top level management.

7. Attempt the following

Question 1.
State the definition of management.
Answer:
Following are some definitions given by management thinkers :

“Management is an art of getting things done through others.” – Mary Parker Follet
“To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
“Management is knowing exactly what is to be done and seeing that it is done in the best possible manner.”
“Management is the process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources”. George Terry.

Question 2.
State the features of management.
Answer:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(ii) Management is Intangible : Management is intangible in nature. It can’t be seen and touched. It is abstract. The principles, theories, techniques, concept are practically invisible. The result of best management can be experienced in the form of increased profit, smooth functioning of the organization and achievement.

(iii) Management is a Social Process : Management is a process because it sets objectives and takes steps to achieve them. It is said to be a social process because management is concerned with people. For example employees, shareholders, investors, customers, community, etc.

(iv) Management is a Continuous Process : Management is essential through the life of an organization. It is necessary to begin the activity, to run the activity smoothly and to control the activity. This is never ending process.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vi) Management is an Inborn Quality : Management in the older days, was considered to be an inborn quality. But with the inception of various business schools, management is a quality which can be developed if a person has the interest and perseverance.

Question 3.
State management is as a science.
Answer:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

2. Use of Scientific Methods of Observation : In science the conclusions are drawn only on the basis of scientific methods of observation. Management also uses systematic methods of data collection, verification and analysis of that collected data and interpretation of data, then a manager takes decisions in the organisation.

3. Cause and Effect Relationship : Science is based on cause and effect relationship. After using specific formulae or their combination, we get particular result in science. Management theories are also based on relationships. Fair and regular salary along with good working conditions motivates people to work hard and to give best results. Whereas, old machineries, techniques, untrained employees may not give good / excepted output to the organization.

4. Universal Applicability of Principles : The management principles are universally accepted just like scientific principles are accepted all over the world. For e.g. Newton’s law, Archimedes principle, etc. are all accepted principles, similarly in management also the principle of authority and responsibility, unity of command, direction, etc. are all universally accepted and are used in all organization whether big or small. Management follows these principles in all kind of organizations, at all levels in the same organization. State the relationship between the management and art.

Question 4.
Following points clearly states the relation between management and art.
Answer:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

2. Regular Practice: Practice makes a man perfect. This is the rule applied by a manager. The more the experience, the manager will be able to meet any challenge or difficult situation with ease. He is in a position to make the required changes according to the circumstances.

3. Personal Skill: Every manager being an individual is different. A good manager must posses good skills in dealing with human beings. He should use his skill in knowing the problem, allotment of work to employees, give judgment and understanding to deal with various situations in business.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Question 5.
State the importance of management
Answer:
1. Utilisation of Resources Optimally : Effective management is all about optimum use of available resources in the organization. Proper distribution of resources and work to right person results in higher output. It also reduces wastage and cost. Maximisation of output by reducing cost is the ultimate objective of every organization.

2. Better Relation : Different groups work at different levels in organization. The employer and the employees have different sets of demands from each other. Effective management ensures that employees fulfill their social responsibilities towards their employers. This helps in establishing good relationship among different groups in an organization.

3. Achievement of Goals : In an organization group of people performs various activities to achieve common goals of the organization. Effective management brings about harmony (cordial relationship) and good co-ordination in efforts of all group. A manager creates a feeling of team spirit among the members of the group.

4. Division of Work : Division of work means the entire work is divided into smaller lots. Each job is given to a particular employee as per his ability and skill to carry out the required activity. Division of work leads to specialization of work and completion of the work in the stipulated period of time.

Question 6.
State the similarities between management and profession.
Answer:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

2. Code of Conduct : Code of conduct means set of rules and regulations to be followed by practicing in their field. Every profession has their own code of conduct to control the activities. It emphasis on ethical practice in that profession. E.g. Chartered Accountants have to work according to ICAI, Lawyers have to follow the code of conduct framed by Bar Council of India, etc. However for managers there is no such association of managers. Generally managers follow the code of conduct based on customs and traditions.

3. Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. He has particular skill of practicing as professional. He becomes an expert due to regular practice in specific field.

4. Registration : Professionals need to register themselves with their associations. For example, Lawyers must get registered themselves with India Bar Council, Chartered Accountants with Institute of Chartered Accountant of India, where as for managers there is no need of such registration with any body. They can take membership of ‘Chambers of Commerce’ which give them membership benefits.

5. Restricted Entry : The entry in any profession is restricted. It needs formal education e.g. Lawyers, Architect, Interior designer, Doctors, Chartered Accountant, etc. However, such compulsion is not there for working as a manager.

8. Answer the Following

Question 1.
What is management? State the characteristics or features of management.
Answer:
Management and its features:
(A) Meaning:
The word management is derived from the Latin word ‘manus’ which means ‘hands.
It means management is handling some activity.
Many thinkers said that management means a fine consideration of co-ordinating and controlling the work either from direct individual or from a group.

(B) Definitions:
Some definitions of management given by different management thinkers as follows:

“Management traditionally can be defined as “an art of getting things done through others. ” – Mary Parker Follet
“To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
“Management is co-ordination of resources through the process of planning, organizing, directing and controlling in order to attain stated objectives.” – F.W. Taylor

Following are the characteristics features of management:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vii) Management is Situational: Management helps to take decisions and also to handle specific situation. The decisions are based on the principles, theories and techniques. They are applicable in certain situation only.

(viii) Management is Goal Orientated : Every business organization either small, medium or large, profit making or non-profit making, Governmental or NGOs have their own goals. When the organization achieves its desired goals, it is called success of that organisation. This success depends on proper management of all available resources. A manager takes lots of efforts to achieve these goals. So management is goal oriented.

(ix) Management is Universal : Management principles and theories are equally applicable every where and in every field like business, profession, hospital, education, politics, government administration social activities. These principles are the guidelines to the manager. They are flexible and capable of adaptation to every type of organization.

(x) Management is Group Activity : Management is defined as “getting work done through others” or “with the people in formally organized groups”. The tasks set by the organization is complied by employees, all levels of managers and even with the help of outside parties.

Question 2.
Discuss whether management is an art science or profession.
Answer:
Art:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Science:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

Profession:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 7 Company Meetings – I

May 24, 2024May 23, 2024 by Bhagya

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 7 Company Meetings – I Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 7 Company Meetings – I

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

Question 1.
The intimation to members stating the day, date, time, and place of meeting is known as ______________
(a) quorum
(b) agenda
(c) notice
Answer:
(c) notice

Question 2.
The notice of the general meeting must be sent to all members ______________ clear days before the meeting.
(a) 24
(b) 21
(c) 14
Answer:
(b) 21

Question 3.
The person who presides over the meeting is known as ______________
(a) Secretary
(b) Chairman
(c) Director
Answer:
(b) Chairman

Question 4.
A proxy can vote only in the case of voting by ______________
(a) division
(b) show of hand
(c) poll
Answer:
(c) poll

Question 5.
The appointment of an auditor requires ______________
(a) resolution requiring special notice
(b) an ordinary resolution
(c) a special resolution.
Answer:
(b) an ordinary resolution

Question 6.
A ______________ is the proposal put before the meeting for discussion and decision.
(a) Motion
(b) Resolution
(c) Minutes
Answer:
(a) Motion

Question 7.
The right of casting vote is given to the ______________
(a) Director
(b) Chairman
(c) Secretary
Answer:
(b) Chairman

Question 8.
Minutes must be recorded within ______________ days of the conclusion of the meeting.
(a) 60
(b) 21
(c) 15
Answer:
(c) 15

Question 9.
______________ resolutions are not passed in general meeting.
(a) Ordinary
(b) Special resolution
(c) Resolution by circulation
Answer:
(c) Resolution by circulation

Question 10.
For passing special resolution ______________ majority is required.
(a) 51%
(b) 66%
(c) 75%
Answer:
(c) 75%

Question 11.
For alterations in the Articles of Associations ______________ is required.
(a) a special resolution
(b) an ordinary resolution
(c) a resolution requiring a special notice
Answer:
(a) a special resolution

Question 12.
Provisions about resolutions are contained in ______________ of a company.
(a) Articles of Association
(b) Memorandum of Association
(c) Prospectus
Answer:
(a) Articles of Association

Question 13.
When a poll is demanded it must be taken within ______________ hours.
(a) 48
(b) 36
(c) 12
Answer:
(a) 48

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Chairman	(1) Proposal put before the meeting
(b) Quorum	(2) Casting vote
(c) Motion	(3) Amendment
(d) Minutes	(4) Minimum number of members required for a valid meeting
(e) Notice	(5) Voting
(f) Proxy	(6) Maximum number of members required for a valid meeting
	(7) Record of a meeting
	(8) Accepted motion
	(9) Intimation stating agenda, day, date, time and place of meeting
	(10) Representative of a member
	(11) Representative of a director
	(12) Formal motion

Answer:

Group ‘A’	Group ‘B’
(a) Chairman	(2) Casting vote
(b) Quorum	(4) Minimum number of members required for a valid meeting
(c) Motion	(1) Proposal put before the meeting
(d) Minutes	(7) Record of a meeting
(e) Notice	(9) Intimation stating agenda, day, date, time and place of meeting
(f) Proxy	(10) Representative of a member

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

Question 1.
The person who signs the minutes of the meeting.
Answer:
Chairman

Question 2.
A method of voting where members can vote in proportion to the number of shares held.
Answer:
Voting by-poll

Question 3.
A resolution passed by simple majority.
Answer:
Ordinary Resolution

Question 4.
A resolution passed by a 3/4 majority.
Answer:
Special Resolution

Question 5.
A company officer who is required to draft the minutes of the meeting.
Answer:
Secretary

Question 6.
A person who conducts the proceedings of the meeting.
Answer:
Chairman

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

Question 1.
Minutes are prepared before the meeting.
Answer:
False

Question 2.
A maximum number of members required to attend the meeting is called a Quorum.
Answer:
False

Question 3.
Meetings are held only to review the progress of the company.
Answer:
False

Question 4.
Chairman has the right to conduct the meeting.
Answer:
True

1E. Find the odd one.

Question 1.
Next Business Motion, Previous Question Motion, Special Resolution.
Answer:
Special Resolution

Question 2.
Ordinary Resolution, Resolution requiring special notice, Substantive motion.
Answer:
Substantive Motion

1F. Complete the sentences.

Question 1.
The authority who can convene the general meeting of shareholders is ______________
Answer:
Board of Director

Question 2.
The advance intimation about the day, date, time, etc. of a meeting sent to the members is called as ______________
Answer:
Notice

Question 3.
The minimum number of members required to be present at a meeting is called as ______________
Answer:
Quorum

Question 4.
A person who attends a general meeting and votes on behalf of a member is called as ______________
Answer:
Proxy

Question 5.
A proposal put before a meeting for consideration and adoption is called as ______________
Answer:
Motion

Question 6.
A formal and final decision taken in a meeting is called as ______________
Answer:
Resolution

Question 7.
The written records of proceedings of a meeting is called as ______________
Answer:
Minutes

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Voting by-poll	…………………
(2) ………………………	Special resolution
(3) Substantive Motion	…………………..
(4) ………………………	Chairman

(Presides over the meeting, Proxy, an amended Motion, 3/4 or 75% majority)
Answer:

Group ‘A’	Group ‘B’
(1) Voting by-poll	Proxy
(2) 3/4 or 75% majority	Special Resolution
(3) Substantive Motion	an amended Motion
(4) Presides over a Meeting	Chairman

1H. Answer in one sentence.

Question 1.
What are Minutes?
Answer:
Minutes are the written records of the proceedings of the meeting.

Question 2.
What is Notice?
Answer:
Notice is an advance intimation given by the company informing the day, date, time, and place of the meeting.

Question 3.
What is Ordinary Resolution?
Answer:
A resolution that is passed by a simple majority i.e., 50% or more is called Ordinary Resolution.

Question 4.
What is the agenda?
Answer:
Agenda is a list of items to be discussed or things to be done at the meeting.

Question 5.
Who is Chairman?
Answer:
A chairman is a person who presides over a meeting.

Question 6.
What is the point of order?
Answer:
A point of order is an objection or question raised by any member regarding irregularity in the proceedings of the meeting.

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

Question 1.
Minutes are prepared before the meeting.
Answer:
Minutes are prepared after the meeting.

Question 2.
Resolution is a proposal put before a meeting for discussion.
Answer:
Motion is a proposal put before a meeting for discussion.

Question 3.
Polling papers are used for voting by show of hands.
Answer:
Polling papers are used for voting by-poll.

Question 4.
A Motion is a final decision taken in the meeting.
Answer:
A Resolution is a final decision taken in the meeting.

Question 5.
The agenda is prepared after the meeting.
Answer:
The agenda is prepared before the meeting.

1J. Arrange in proper order.

Question 1.
(a) Drafting Minutes
(b) Sending notice
(c) Confirming quorum
Answer:
(a) Sending Notice
(b) Confirming Quorum
(c) Drafting Minutes

Question 2.
(a) Motion
(b) Resolution
(c) Voting
Answer:
(a) Motion
(b) Voting
(c) Resolution

2. Explain the following terms/concepts:

Question 1.
Ordinary Resolution
Answer:
Ordinary Resolution (Section 114) A resolution that is passed by a simple majority i.e. 50% or more is called ordinary resolution. More than 50% of the votes should be in favour of the motion. An ordinary resolution need not be submitted to the Registrar of Companies. The notice of the meeting need not require to explain the particulars of an ordinary resolution.
Example:

Approval of Director’s report and Auditor report
Alteration of share capital
Declaration of dividend
Approval of final accounts
Election of director
Appointment of Secretary, Auditor, etc.

Question 2.
Agenda
Answer:
Agenda is a list of items to be discussed or things to be done or the business to be transacted at the meeting. It is sent along with the notice. A secretary prepares the agenda in consultation with the Chairman. The business at the meeting is transacted according to the order in which it appears in the agenda, routine matter first followed by special matters. The agenda is prepared as per the nature and the scope of the meeting.

Question 3.
Quorum
Answer:
Quorum (Section 103) is the minimum number of members required to be present for transacting a valid business. Without quorum proceeding of the meeting becomes invalid. The quorum should be present throughout the meeting i.e. from beginning till the end of the meeting. Secretary must check the quorum before the commencement of the meeting.

Question 4.
Proxy
Answer:
A proxy is a person, who can attend and vote at the meeting on behalf of an absent member. Every member of a company has a statutory right to appoint a proxy. When a member is not in a position to attend the meeting, he can appoint his representative. The representative of an absent member is called a Proxy. He has no right to speak at the meeting.

Question 5.
Amendment
Answer:
An amendment is any alteration proposed by a member to the original motion when a motion is under discussion. Amendments are generally moved to alter original motion by

Adding some new words or
Deleting some words or
Replacing some words or
Changing the position or place of words.

The amendment should be relevant to the main motion and it must not alter the original motion.

Question 6.
Motion
Answer:
A motion is a proposal put before the meeting for discussion and decision. A person who proposes a motion is called a proposer or a mover of a motion. A motion is subject to alteration before it is adopted by the meeting.

Question 7.
Special Resolution
Answer:
The resolution which is passed by a special majority is called a Special resolution. It is passed by 3/4th or 75% majority. The purpose of passing this resolution should be mentioned in the notice of the meeting. A special resolution is passed in general meetings only. Notice of special resolution has to be given to the members 21 clear days before the meeting. A copy of the special resolution must be filed with the Registrar of companies through e-filing on the MCA portal within 30 days of passing the resolution.
Examples:

Change in the name of the company (Section 13).
Change in the registered office of the company from one state to another (Section 12).
Alteration in the object clause of the company.
Reduction in the authorized share capital of the company.
Alteration in the Articles of Association of the company (Section 14)

Question 8.
Notice
Answer:
Proper notice must be given to a proper person for a valid meeting. Notice is an advance intimation given by the company informing the day, date, time, and place of meeting and business to be transacted at the meeting. It is given in writing to all those who are entitled to receive it. In case of general meeting, 21 days clear notice before meeting and 7 days in case of the Board meeting.

Question 9.
Minutes
Answer:
Minutes are the written records of proceedings of a meeting. It is a summary of all discussions and decisions taken at the meeting. It is a concise and accurate record of business transacted at the meeting. Minutes are prepared by the secretary within 15 days after the meeting. Minutes are recorded in minutes book and written in the past tense. After preparing minutes, it should be passed in consecutive meetings. Minutes book for General meetings and Board meetings are maintained separately.

Question 10.
Point of order
Answer:
A point of order is a question or objection raised by any member when he wants to point out an irregularity in the proceedings of the meeting. It is raised to draw the attention of the chairman.
The point of order can be raised on the following points:

Absence of quorum
Breach of any rule related to meeting
Misbehavior of any member
Unparliamentary or Improper language used by any member.

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

1. XYZ Ltd Co. sent notice of its Annual General meeting to its members. In the meeting, a resolution is to be passed on altering the Articles of Association.

Question (a).
Should agenda also be sent with Notice?
Answer:
Yes, the agenda should be sent along with the notice.

Question (b).
What type of resolution is needed to alter the Articles?
Answer:
A special resolution is needed to alter the Articles of Association.

Question (c).
Should the resolution for altering articles be filed with the Registrar of Companies?
Answer:
A copy of the special resolution passed for altering Articles of Association must be filed with the Registrar of Companies within 30 days of its passing.

2. A General meeting of a public limited company is to be held. State the provision of quorum for-

Question (a).
meeting of the company which has less than 1000 members?
Answer:
The quorum for less than 1000 members is 5 members.

Question (b).
meeting of the company which has more than 5000 members?
Answer:
The quorum for more than 5000 members is 30 members.

Question (c).
meeting of the company which has 2500 members?
Answer:
The quorum for 2500 members is 15 members.

3. Mr. P is elected as chairman of the General Meeting. Please advise him on the following matters:

Question (a).
What should be done if the votes cast in favour and against the motion are equal?
Answer:
A chairman of the general meeting (Mr. P) can exercise casting votes in case of a tie in votes.

Question (b).
How many votes can a member cast under the poll method?
Answer:
Under the poll method, a member can cast his votes as per the number of shares held by him. ‘One shares One vote’ is a rule.
Eg. If Mr. A has 100 shares, he can cast 100 votes.

Question (c).
What should Mr. P do if any point of order is raised by a member?
Answer:
If the point of order is raised, Mr. P has to stop discussion on an original motion under discussion and give his ruling/decision immediately on point of order.

4. Distinguish between the following.

Question 1.
Agenda and Minutes
Answer:

Basis	Agenda	Minutes
1. Meaning	Agenda is a list of ‘the things to be done or ‘business to be transacted at the meeting.	Minutes are the record of the business transacted, resolutions passed and decisions arrived at by the meeting.
2. Contents	Agenda, generally contains ‘what is to be done, motions, etc.	Minutes generally contain ‘what has been done, resolution, etc.
3. When Prepared	The agenda is prepared before the meeting.	Minutes are prepared after the conclusion of the meeting.
4. Tense	It is written in the future tense.	It is always in the past tense.
5. Importance	Agenda enables the members to know, what business the meeting is going to transact. The Chairman also can conduct the meeting as per the agenda.	Minutes are evidence of the decisions taken at a meeting. Even an absent member can know about the proceedings of the meeting.
6. Legal Status	Agenda has no legal importance. The Companies Act has not provided any rules regarding the drafting of an agenda.	Minutes are the legal evidence of resolutions passed at the meeting. It provides abstract proof of the proceedings at the meeting. It can even be produced in the court of law as a legal document.
7. Approval	The agenda is prepared by the secretary and approved by the Chairman, but no approval of the members is required.	Minutes are prepared by the secretary and approved by the members, finally, it is confirmed by the Chairman.
8. Alterations	Alterations in the order of items in an agenda can be made if the members attending the meeting agree to it.	Minutes once recorded in the minute book, signed by the Chairman, and confirmed by the members cannot be altered.

Question 2.
Motion and Resolution
Answer:

Basis	Motion	Resolution
1. Meaning	Motion is a written proposal placed before the meeting for discussion and decision.	Resolution is a duly approved and accepted motion in the meeting.
2. Amendment	Motion can be amended before it is put to vote.	Resolution once passed, cannot be amended.
3. Recording	A motion is not recorded in the minute’s book of a meeting.	All resolutions must be recorded in the minute book of a meeting.
4. Filing	The motion need not be filed with the Registrar of Companies.	Special resolutions are required to be filed with the Registrar of the Companies within 30 days of the date of its passing.
5. Withdrawal	It may be withdrawn by mover before it is put to vote.	Once it is approved, it cannot be withdrawn.
6. Evidence	It can not be used as evidence.	It can be used as legal evidence.
7. Types	Motion can be (a) Formal motion (b) Substantive motion	Resolution can be (a) Ordinary resolution (b) Special resolution

Question 3.
Voting by show of hands and Voting by-poll.
Answer:

Basis	Voting by show of hands	Voting by-poll
1. Meaning	Voting by show of hands is a method of voting in which members cast their votes by raising their hands.	Voting by-poll is a method in which every member is given a paper to record their votes according to the number of shares held by them.
2. Secrecy	Votes are given openly, hence secrecy is not maintained.	Votes are recorded on voting papers, hence secrecy is maintained.
3. Voting by Proxy	Proxies are not allowed to vote under this method.	Proxies can vote only in this method.
4. No. of Votes	‘One man One vote’ is the principle of voting.	‘One share One vote’ is the principle of voting.
5. Effect	The decision by show of hands is canceled, if the poll is demanded.	The decision taken by-poll is final and it cannot be canceled.
6. Nature	It is a democratic method of voting.	It is a capitalistic method of voting.

5. Answer in brief.

Question 1.
State the importance of company meetings.
Answer:
The term meeting is derived from the Latin word ‘Maeta’ means ‘face to face.
A meeting may be defined as ‘Any gathering or assembly or coming together of two or more persons for transacting some lawful business of a common concern.’ – P.K.Ghosh.

Importance of Company Meetings:

Members get the opportunity to come together and discuss the work and progress of the company.
Minutes of the last meeting is read, which enables the absent and present member to get a clear idea about the matters discussed in the previous meeting.
It enables the management to discuss and decide about their policies, plan, programs, etc, and its implementation.
Problems faced by the company can be discussed at the meeting and a decision can be arrived.
Legal formalities related to convening and conducting meetings of the company are fulfilled by conducting meetings.
Appointment of directors and auditors, declaration of dividend, approvals of the annual report, financial statements, auditors report, etc. can be done in the meetings.
Strict action can be taken against defaulters in the meeting.

Question 2.
State the legal provisions regarding Proxy.
Answer:
Legal Provisions regarding Proxy are as follows:

Appointment: Any member of a company entitled to attend and vote at the meeting shall be entitled to appoint a proxy to attend and vote at the meeting on his behalf. A minor cannot be appointed as a proxy. The proxy cannot be appointed for the Board Meeting. The appointment of a proxy is valid for an adjourned meeting.
Right: A proxy is not allowed to speak at the meeting. The proxy can vote only on resolutions passed by voting by-poll.
Membership: A person appointed as a proxy need not be a member of the company.
Proxy form: A member appointing a proxy must submit a duly completed proxy form in the registered office of the company at least 48 hours before the meeting.
Inspection: A member can inspect any proxy form by giving not less than three days’ notice to the company.

Question 3.
When can the point of order be raised?
Answer:
A point of order is a question or objection raised by any member when he wants to point out an irregularity in the proceedings of the meeting. It is raised to draw the attention of the chairman.
The point of order can be raised on the following points:

Absence of quorum
Breach of any rule related to meeting
Misbehaviour of any member
Unparliamentary or improper language used by any member.

When the point of order is raised, discussion on the original motion is stopped for some time. The chairman gives his decision on point of order. The decision given by the chairman is final and binding on the meeting.

Question 4.
Explain any four methods of Voting?
Answer:
Methods of Voting:
(i) Voting by Voice:
In this method, the members are requested to say ‘Yes’ if they favour the motion or say ‘No’ if they are against the motion. The decision is taken on the basis of the volume of voice. This method is rarely used. The volume of voice may not give a clear and correct idea about the majority of votes.

(ii) Voting by Division:
In this method, present members are divided into two groups. Members in favour and those against the motion are asked to go to different rooms. Then the sense of the meeting is ascertained by counting and the chairman declares the result.

(iii) Voting by show of Hands:
This method is used in the general meetings of a company. After the discussion on the motion, the Chairman requests the members to raise their hands in favour or against the motion. The chairman declares the result by counting a number of hands in favour or against the proposal. ‘One man One vote’ is the principle.

(iv) Voting by Poll:
The poll can be demanded after the declaration of result by show of hands. Under this method, each member can vote in proportion to the number of shares held by him. ‘One share One vote’ is the principle. Polling papers are given to members and proxies for recording their votes. The result of the poll is final and not to be challenged.

Question 4.
State the importance of Minutes.
Answer:
The importance of Minutes are as follows:

Official record: Minutes provide a ready reference to all the activities related to the meeting. It is the most important, official, and authentic record on which people can trust.
Evidence: Minutes can be used as prima facie evidence in a court of law.
Future reference: Minutes is a permanent record. It can be used for taking future managerial decisions.
Legal provisions: Minutes are prepared in order to comply with the provisions of the Companies Act and Secretarial Standard.
Information to absent members: Minutes help the absent members to know the proceedings of the meeting, as it is not always possible for everyone to attend the meeting.
Reminder: The matters discussed at the meeting are noted down in minutes. It acts as a reminder to the concerned people.
Information about resolution: The motion and discussion on the motion are reflected in the resolution. Interested parties can always refer to the text of a resolution when there is contradiction or confusion.
Inspection of Minutes: As per the Companies Act, Minutes Book should be kept at the registered office of the company and every member has right to inspect the Minutes book at the general meetings.

6. Justify the following statements.

Question 1.
The meeting must be duly convened and properly constituted.
Answer:

A meeting is defined as Any gathering assembly or coming together of two or more persons for the transaction of some lawful business of the common concern.
A meeting becomes valid when it is duly convened and properly constituted.
A meeting should be convened by proper authority.
It must be convened as per the provisions of the Companies Act, 2013.
Notice and Agenda of the meeting must be given 21 clear days before the meeting to all those who are entitled to receive it.
Thus, meetings must be duly convened and properly constituted.

Question 2.
Chairman is responsible for the proper conduct of meetings.
Answer:

A Chairman is a person who presides over a meeting.
There should be a proper person in the chair i.e. chairman to conduct the proceedings of the meeting smoothly, fairly, and properly.
A chairman should maintain overall discipline in the meeting.
A chairman has to maintain order at the debate and decide the priority of speakers so that members can get a chance to express their views.
A chairman should give his ruling on point of order at the earliest.
A chairman can initiate an order for voting and declare the result of voting.
A chairman must prevent improper behaviour, if any, by the member and prevent the use of unparliamentary language.
Thus, Chairman is responsible for the proper conduct of meetings.

Question 3.
Motion can be amended.
Answer:

A motion is a proposal put before the meeting for discussion and decision.
The amendment is an alteration proposed by a member to the original motion under discussion.
Amendment can be done by adding some new words or deleting some words in the original motion.
Amendment can be done by replacing some words or by changing the position of words to the original motion.
The amendment should be relevant to the original motion.
The amendment is done to make the original motion more effective and meaningful.
Amendment can be accepted or rejected. If accepted, it is considered for discussion. If approved by the meeting, it is incorporated in the original motion.
Thus, the motion can be amended.

Question 4.
The proxy can not speak in the meeting.
Answer:

A proxy is a representative of a member.
A proxy can attend and vote on behalf of an absent member.
If a member is not in a position to attend the meeting, he can appoint a proxy on his behalf.
A proxy need not be a member of the company.
A minor cannot be appointed as a proxy.
A proxy has no right to speak at the meeting.
A proxy can vote only under the poll method.
A member appointing a proxy must submit the proxy form in the registered office of the company at least 48 hours before the meeting.
Thus, Proxy can not speak in the meeting.

Question 5.
Notice is issued to members for a meeting along with the agenda.
Answer:

Notice is an advance intimation given by the company informing the day, date, time, and place of the meeting.
Agenda is given along with notice so that members can come well prepared for the meeting.
Members come to know about the matters to be discussed at the meeting.
If a member is not in a position to attend the meeting, he can appoint a proxy.
Member can advise his proxy to vote on certain matters.
Thus, a Notice is issued to members for a meeting along with the agenda.

7. Answer the following questions.

Question 1.
Explain the powers and duties of the chairman.
Answer:
A chairman is a person who presides over a meeting. There should be a proper person in the chair i.e. chairman to conduct the proceedings of the meeting smoothly, fairly, and properly.

Powers of Chairman:

To maintain order and conduct the meeting properly.
To maintain order at the debate.
To decide the priority of speakers.
To prevent improper behaviour and unparliamentary language.
To adjourn the meeting.
To exercise a casting vote.
To declare the result of the voting.
To give a ruling on point of order.

Duties of Chairman:

To see that the meeting is duly convened and properly constituted.
To see that the meeting is held according to the rules.
To see that the items are discussed as per the order of the agenda.
To maintain overall discipline in the meeting.
To give a fair chance to members to express their views.
To declare the result of voting.
To check and sign minutes book.
To act in the best interest of the company.

Question 2.
Explain the different methods of voting.
Answer:
Different methods of voting are as follows:
(i) Voting by voice:
In this method, the members are requested to say “Yes’ if they favour the motion or say ‘No’ if they are against the motion. The decision is taken on the basis of the volume of voice. This method is rarely used. The volume of voice may not give a clear and correct idea about the majority of votes.

(ii) Voting by division:
In this method, present members are divided into two groups. Members in favour and those against the motion are asked to go to different rooms. Then the sense of the meeting is ascertained by counting and the chairman declares the result.

(iii) Voting by ballot:
Under this method, every member entitled to vote is asked to record the vote on a ballot paper and deposit it in the ballot box. The votes are counted and the result is declared. This method ensures secrecy in voting.

(iv) Voting by show of hands:
This method is used in the general meetings of a company. After the discussion on the motion, the Chairman requests the members to raise their hands in favour or against the motion. The chairman declares the result by counting a number of hands in favour or against the proposal. ‘One man One vote’ is the principle.

(v) Voting electronically:
The Central Government may prescribe certain companies for having compulsory electronic voting in general meeting. Members may exercise his right to vote by electronic means.

(vi) Voting by postal ballot:
The Central Government may prescribe certain companies for having voting by postal ballot. Ballot papers are sent by post to members.

(vii) Voting by Poll:
Poll can be demanded after the declaration of result by show of hands. Under this method each member can vote in proportion to the number of shares held by him. ‘One share One vote’ is the principle. Polling papers are given to members and proxies for recording their votes. The result of poll is final and not to be challenged.

Question 3.
Explain the types of resolution.
Answer:
Types of Resolution:
(i) Ordinary Resolution:
A resolution which is passed by simple majority is called ordinary resolution. More than 50% of the votes should be in favour of motion. An ordinary resolution need not be submitted to the Registrar of Companies. The notice of the meeting need not require to explain the particulars of an ordinary resolution.

Examples:

Approval of Directors report and Auditor report.
Alteration of share capital
Declaration of dividend, etc.

(ii) Special Resolution:
The resolution which is passed by special majority is called as Special resolution. It is passed by 3/4th or 75% majority. The purpose of passing this resolution should be mentioned in the notice of the meeting. A special resolution is passed in general meeting only. Notice of special resolution has to be given to the members 21 clear days before the meeting. A copy of special resolution must be filed with the Registrar of Companies through e-filing on MCA portal within 30 days of passing resolution.

Examples:

Change in the name of the company.
Change in the registered office of the company from one state to another.
Alteration in the object clause of company, etc.

(iii) Resolution requiring special notice:
Some resolutions require special notice as per the companies Act or Articles of Association of the company, hence such resolutions are called resolution requiring special notice. Special Notice resolution may be ordinary or special resolution. A proposer of a motion has to give a special notice of 14 days to the company. The company should then give a notice of that resolution to all members atleast 7 days before the meeting.

Examples:

Resolution to appoint a person as an auditor other than a retiring auditors.
A resolution providing that a retiring auditor shall not be reappointed.
Resolution to appoint director other than retiring director, etc.

(iv) Resolution requiring registration:
Resolution which are required to be registered with the Registrar of Companies are called as resolution requiring registration. Resolution should be filed with Registrar within 30 days of its passing.

Examples:

All special resolutions.
Resolution made by Board of Directors regarding appointment or re-appointment of Managing director.
Resolution by members regarding dissolution of the company, etc.

(v) Resolution by Circulation:
When directors have to take important and urgent decisions and do not have a sufficient time to call a meeting, then a draft resolution is prepared and forwarded to all directors to pass resolution. It is called as resolution by circulation.

Activity: (Textbook Page No. 113)

Prepare an agenda for a meeting to discuss holding of Annual Day.
Answer:

AGENDA
Agenda for “Utsav – 2019”.
Annual day of Reliable Junior College, Mahim.

To discuss the date, venue and time for Utsav – 2019.
To decide and invite Chief guest for innaguration.
To set up the various committees – Cultural Committee, Welcoming Committee, Refreshment Committee, Security Committee, Stage Committee.
To assign the responsibilities to the various committees.
To issue special passes for the VIP’s and guest.
To fix the budget for the annual day.
To decide the vendor for Momentos and Medals.

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

May 23, 2024May 22, 2024 by Prasanna

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 7 Business Environment Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 7 Business Environment

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

Question 1.
The business environment has a tremendous impact on ………………..
(a) business
(b) government
(c) society
Answer:
(a) business

Question 2.
The new Industrial policy was formulated in ………………..
(a) 1947
(b) 1951
(c) 1991
Answer:
(c) 1991

Question 3.
Changes in ruling government is an aspect of ……………….. environment.
(a) political
(b) technological
(c) economic
Answer:
(a) political

Question 4.
Literacy level is an aspect of ……………….. environment.
(a) social
(b) legal
(c) political
Answer:
(a) social

Question 5.
Privatization implies reduction in the role of ……………….. sector.
(a) public
(b) private
(c) foreign
Answer:
(a) public

Question 6.
Globalization is concerned with ……………….. market.
(a) global
(b) local
(c) rural
Answer:
(a) global

Question 7.
……………….. means linking national economy to the world economy.
(a) Globalization
(b) Privatization
(c) Liberalization
Answer:
(a) Globalization

Question 8.
Environment awareness provides ……………….. signal.
(a) warning
(b) alarming
(c) soft
Answer:
(a) warning

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Globalization	(1) Profit motive
(b) Privatization	(2) 2006
(c) Liberalization	(3) Borderless economy
(d) New economic policy	(4) Service Motive
(e) Social Environment	(5) Internal factor
	(6) Disinvestment
	(7) Social Values
	(8) 1991
	(9) Abolishing license policy
	(10) GATT

Answer:

Part A	Part B
(a) Globalization	(3) Borderless economy
(b) Privatization	(6) Disinvestment
(c) Liberalization	(9) Abolishing license policy
(d) New economic policy	(8) 1991
(e) Social Environment	(7) Social Values

Question 2.

Part A	Part B
(a) Internal environment	(1) Knowledge of law
(b) Political environment	(2) Taxation policy
(c) Legal environment	(3) Technology
(d) Economic environment	(4) Traditions
	(5) WTO
	(6) Controlled by business
	(7) High cost
	(8) Ideology of political party

Answer:

Part A	Part B
(a) Internal environment	(7) High cost
(b) Political environment	(8) Ideology of political party
(c) Legal environment	(2) Taxation policy
(d) Economic environment	(3) Technology

1. (C) Write a word or a term or a phrase which can substitute each of the following statements

Question 1.
Uncontrollable factors of the business environment.
Answer:
External business environment

Question 2.
The environmental of business that includes customs and traditions, values, social trends.
Answer:
Social environment

Question 3.
The process of transferring ownership of business enterprise, agency or public service from the public service to private sector.
Answer:
Privatization

Question 4.
A boundary less worlds where there would be flow of goods, services, information, capital and people across nation.
Answer:
Globalization.

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

Question 1.
External factors of business environment are controllable factors.
Answer:
False

Question 2.
Business is the product of different environmental factors.
Answer:
True

Question 3.
Business and environment are inseparable parts.
Answer:
True

Question 4.
There is no benefit of globalization on Indian economy.
Answer:
False

Question 5.
New economic policy promoted the liberal economic policy.
Answer:
True

Question 6.
There is no benefit of privatization to Indian economy.
Answer:
False

Question 7.
There is no need of consideration of the business environment factors in business.
Answer:
False

1. (E) Complete the sentence

Question 1.
The term of business environment generally refers to …………………
Answer:
External Environment

Question 2.
……………….. helps the business enterprise for overcoming challenge successfully.
Answer:
Business Environment

Question 3.
Geographical and Ecological factors are included in ………………… Environment.
Answer:
Natural

Question 4.
Literacy is the important part of ………………… Environment.
Answer:
Social

Question 5.
Stability and peace in the country includes in ………………… Environment.
Answer:
Political

Question 6.
Indian political system comprises ………………… vital institutions.
Answer:
three

Question 7.
Limited involvement of government in public sector refer to …………………
Answer:
Privatization

Question 8.
Integration of economy and society through cross country is called as …………………
Answer:
Globalization

1. (F) Select the correct option

Question 1.
In how many type environmental factors can be classified?
(Two / Three / Four)
Answer:
Two

Question 2.
Which factors of Business Environment regard as controllable?
(Internal / External)
Answer:
Internal

Question 3.
Who frames the economic policy of the business?
(Government / Business / Citizen)
Answer:
Government

Question 4.
Which economic system in known as free market economy?
(Socialist / Mixed / Capitalist)
Answer:
Capitalist

1. (G) Correct the underline word and rewrite the following sentence

Question 1.
External factors of business environment are controllable.
Answer:
Internal factors of business environment are controllable.

Question 2.
Internal factors of business are beyond control.
Answer:
External factors of business are beyond control.

Question 3.
Natural resources are related to political environment.
Answer:
Natural resources are related to natural environment.

Question 4.
Privatization helps for global village.
Answer:
Globalization helps for global village.

1. (H) Answer in one sentences

Question 1.
Which factors are included in internal environment?
Answer:
Value system, vision, mission and objective management structure, Internal power relationship, Human resources, Physical facilities, Marketing resources, etc. are the factors included in internal environment.

Question 2.
What are the powers of legislature?
Answer:
Policy making, law making, budget approving, executing control, etc. are the powers of legislature.

Question 3.
Which factor influence the economic condition of the Nation?
Answer:
Economic condition of the nation is based on the gross domestic product, per capital income, availability of capital, growth of foreign trade and strength of capital market.

Question 4.
Who possess the factors of production in socialist economy?
Answer:
In socialist economy Government possess the factors of production.

Question 5.
In which environment are the methods and techniques of production included?
Answer:
Technological environment consist of the method and technical of production.

Question 6.
When did Indian government launch New Economic Policy?
Answer:
Indian government launched New Economic Policy on 24th July, 1991.

Question 7.
What is useful to reduced political interference in industry?
Answer:
Privatisation is useful to reduce political interference in Industry.

Question 8.
How is the boundary less world possible?
Answer:
Boundary less world is possible through Globalisation.

2. Explain the following terms /concept.

Question 1.
Business environment.
Answer:
Business environment refers to the external environment which includes factor outside the business leading to opportunities or threats of the business.

According to Bayard O. Wheeler
“The total of all things external to firm and industries which affect their organization and operations is called as “Business Environment”.

Question 2.
Liberalization.
Answer:

Liberalization refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
Liberalization helps in achieving a high growth rate, easy availability of goods at competitive rates, high foreign exchange reserve, strong rupee and good industrial relation, etc.

Question 3.
Privatization.
Answer:

Privatization refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
It implies government Sectors to be sold or given to private individuals to run them.

Question 4.
Globalisation.
Answer:

Globalisation means integration of national economy and societies through cross country flows of information, ideas, technologies, good services, capital, finance and people.
It also means “boundary less world”.

Question 5.
Social environment.
Answer:

Modern business is a social system in itself and forms a part of the larger social system represented by society in general.
The class structure of the society affects the business. Such as occupation of the people, their education, income level, social status, attitude towards living, work and social relationship.

Question 6.
Economic environment.
Answer:
Economic environment comprises of economic condition, economic policies and economic system, basic economic philosophy, infrastructure, national income, money supply, saving stages in economic development and trade cycles.

Question 7.
Political environment.
Answer:

Government and its policies affects business firms.
It includes stability and peace in the country, specific attitudes of elected representative. Ideology of the political parties influences the business organization and attitudes of government officials towards business has an impact on business.
It comprises three vital institutions like Legislature, Government and Judiciary.

Question 8.
Internal environment.
Answer:
Internal environment compromises of policies decided by by shareholders, managers, labour unions and employees which can be controlled which helps to make specific, proper understanding in strengthening the business.

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

(1) The court passes an order to ban polythene bags as the bags are creating many environmental problems which affects the life of people in general.
(2) Society in general is more concerned about quality of life. The government decided to give subsidy to jute industry to promote this business.

Question 1.
Identify the different dimensions of business environment.
Answer:
The different dimensions of business environment are:

Legal environment
Natural environment
Social environment
Political environment
Economic environment

Question 2.
Comment on it.
Answer:
The different dimensions of business environment are

Legal Environment : Court passes order to ban polythene bags.
Natural Environment : The Court order will solve environmental problems which affects the life of people in general.
Social Environment : Society is concerned about quality of life and better standard of living
Political Environment : Government framed a policy to give subsidy to jute industry.
Economic Environment : Subsidy to Jute industry will promote business of Jute industry and this will help in economic development.

2. Anchor company manufacturing light tubes increased expenditure on Scientific Research and Development and discovered a technology that made it possible to produce an energy efficient light tubes that lasts at least twenty times as long as standard tubes. It resulted in growth and profitability of the company.

Question 1.
Identify the dimension of business environment.
Answer:
Technological Environment:
Scientific research for innovation in product increased its production and it resulted in growth and profitability of the company. Internal environment of company led to growth and profitability.

Question 2.
State importance of business environment.
Answer:
Business environment helps in determining opportunities and threats, identify firms strengths and weaknesses, continuous learning, image building meeting competition and give direction for growth.

3. Make in India is an initiative launched by the government of India. It focuses on job creation and skill development and it is in twenty five sectors of the economy. Under the initiative, brochures on these sectors and web portal were released. The initiative aims at high quality standards and minimizing the impact on environment .It also seeks to attract foreign capital investment in India.

Question 1.
Identify the dimension of business environment.
Answer:
The various dimensions of business environment referred in the above case are:

Political environment
Technological environment
Economic-environment

Question 2.
Comment on it.
Answer:
Make in India is the policy of government as per its ideology. As it focusing on job creation and skill development in 25 sectors of economy, it convey two values through this initiative. High quality standards and concern for environment. It also aims to attract foreign capital investment in India.

4. Distinguish between the following

Question 1.
Social Environment and Economic Environment.
Answer:

	Social Environment	Economic Environment
(1) Meaning	Social environment includes customs, traditions, values, buying habits, tastes, etc.	Economic environment comprises of economic condition, economic policies and and economic system.
(2) Factors	It includes factors such as social aspects, social trends, social values and traditions.	It includes factors like economic condition, economic policies and economic system.
(3) Supplement to	It is supplemented by cultural environment like cultural factors, values, beliefs, etc.	It is supplemented by political environment as it is influenced by political decisions or events taken by Government.
(4) Impact on business	It helps to analyze the changing social trends, taste of different social groups which helps businessmen to know the opportunities and threats.	Changes in economic policies like agricultural policy, monetary policy, etc. lead to changes in economic system and planning which helps businessmen to make changes on timely basis.
(5) Purpose	It helps to know the-needs of customer and satisfy the demand. E.g. Today health and fitness trend has created demand for products like gym, organic foods etc.	It helps in forecasting market situations and thereby making suitable business plans E.g. Stock market fluctuations affects management practices in a business Enterprise.
(6) Nature	It is dynamic in nature. Changes in trends, values, growing awareness among different social groups affects the social environment.	It is multi dimensional in character. Agriculture, infrastructure, national, per capita income, price level etc. affects the economic environment of in a country.

Question 2.
Political Environment and Legal Environment.
Answer:

	Political Environment	Legal Environment
(1) Meaning	In a country, the political system, constitutional provision, party system, events taking place time to time determines the political environment.	In a country, business can be started, regulated, controlled, expanded within legal framework of a country determines legal environment.
(2) Factors	Political stability, peace in the country, specific attitudes of elected representative, etc are the factors which affects political environment.	Various laws are implemented from time to time with amendments in order to control and direct the business.
(3) Inter relation between environment	Political environment and economic environment are closely connected with each other.	Legal environment and regulatory environment goes together hand-in-hand in modern business environment.
(4) Impact on business	Ideology of the political parties influences the business organization.	Provides control, direction, expansion to the business organization.
(5) Purpose	Political stability creates strength, confidence to various interest groups and investors in long term projects.	Separate laws implemented time to time to safeguard and protect the interest of various groups such as busines’s organization, workers, consumers, etc.
(6) Effect of changes in environment	Political instability effects the business organisation adversely. Business policies are amended due to political issues, events etc. prevailing in country.	Excessive controls, implementation of laws, rules and regulations may create problem in overall development of business organizations.

Question 3.
Liberalization and Privatisation.
Answer:

	Liberalisation	Privatisation
(1) Meaning	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
(2) Aim	It aims to bring flexibility in business operations by creating environment for growth and expansion.	It aims at promoting efficiency, increase productivity, profitability.
(3) Need	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.	To achieve quick and logical business decisions aimed at commercial success of organisation.
(4) Measures adopted	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MOU.
(5) Benefits to Host Company	It results in, high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.	It results in profitability, production of superior quality products and services, self motivation, etc.
(6) Benefits to Consumers / Traders	Optimum use of resources available at global level, easy availability of goods at competitive rates.	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.
(7) Positive Effect	Removing restriction on taxations, abolishing industrial licensing system leads to expansion and growth of new business opportunities.	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.
(8) Adverse Effect	It leads to social problems like urbanization and industrialisation, closure of domestic firms due to liberalised imported products, etc.	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.
(9) Inter Relationship	Liberalisation leads to privatisation and globalization.	Privatisation is a part of the process of globalization.

Question 4.
Globalization and Liberalization.
Answer:

	Globalization	Liberalization
(1) Meaning	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
(2) Aim	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.	It aims to bring flexibility in business operations by creating environment for growth and expansion.
(3) Need	To overcome the problem of declining domestic demand and to ensure free trade.	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.
(4) Measures adopted	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.
(5) Benefits to Host Company	It results is expansion of investment. It promotes foreign trade and brings foreign exchange	It results in high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.
(6) Benefits to Consumers / Traders	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.	Optimum utilisation of resources at global level easy availability of goods at competitive rates.
(7) Positive Effect	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.	It results in removing restriction on taxations, abolishing industrial licensing system leading to expansion and growth of new business opportunities.
(8) Adverse Effect	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.	It leads to social problems like urbanization and industrialisation. Closure of domestic firms due to liberalised imported products.
(9) Inter Relationship	Globalisation includes liberalisation and privatisation.	Liberalisation leads to privatisation and globalisation.

Question 5.
Privatization and Globalization.
Answer:

	Privatization	Globalization
(1) Meaning	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.
(2) Aim	It aims at promoting efficiency, increase productivity, profitability.	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.
(3) Need	To achieve quick and logical business decisions aimed at commercial success of organisation.	To overcome the problem of declining domestic demand and to ensure free trade.
(4) Measures adopted	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MoU.	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.
(5) Benefits to Host Company	It results in profitability, production of superior quality products and services, self motivation etc.	It results is expansion of investment. It promotes foreign trade and brings foreign exchange
(6) Benefits to Consumers / Traders	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.
(7) Positive Effect	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.
(8) Adverse Effect	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.
(9) Inter Relationship	Privatisation is a part of the process of globalization.	Globalisation includes liberalisation and privatisation.

5. Answer in brief.

Question 1.
State any four features of Social environment.
Answer:
The four features of social environment are as follows:

Customs and Traditions : This decides the celebration of various festivals like Diwali, Id, Christmas and its effect on business.
Social Institutions and Groups or Social Aspects: Literacy level, educational system, cultural heritage standard of living of the various groups of people affect the social environment of business.
Social Values : Cultural and social justice, national integration affect the business. Beliefs also help the business to meet the customer needs.
Social Trends : Now a days people have become health conscious and therefore there is a sale of various types of goods like organic food, sugar free products etc.

Question 2.
Describe any two factors of economic environment.
Answer:
Economic environment has direct influence on business.

The Economic System : Economic activities depend upon the nature of economic system which are:
(a) Capitalist economy : e.g. U.S.A. (b) Socialist economy : e.g. China (c) Mixed economy : e.g. India
Economic Policies : The various economic policies of the government has a direct influence on economic environment. For e.g. import and export policy, educational policy, agricultural policy, industrial policy, foreign investment policy, etc.
Economic Condition : The stage at which the growth stands, employment rate, rate of interest, etc. All those determine development of the country.

Question 3.
State any four features of globalization.
Answer:
Features of globalization are as follows:

Purchase and sale of goods and services from one country to another.
Opportunity to start and do business in any part of the world.
Reduction in gap between domestic and international market.
Possibility of quick and rapid economic development.
Enhances the opportunity to exchange new ideas and technology across the nations.

Question 4.
State any four reasons of the need for privatisation.
Answer:
There is need for privatisation because of the following reasons:

To bring more efficiency in the working of business firms.
To reduce political interference in the working of the firms and companies.
To improve the quality of products
To bring efficiency in management of the organization.
To create discipline in capital market.

6. Justify the following statements.

Question 1.
External factors of business environment are beyond control.
Answer:

Factors which influences the business policy of an organization can be divided into internal and external factors.
Business has no control over external forces.
These are those factors which provide opportunities or pose threats to the organization.
Factor such as social customs, values, economic policies, technological development, political ups and down, legislation together constitute political, social, economic, legal and technological diversions of business, hence, they are not in the hands of business organizations.
Internal factors are controllable and business unit can modify their plans, policies, etc.
(Students can give example of social, political, legal environment to justify further)

Question 2.
Business firm should be aware of the changes in society.
Answer:

The success of every business depends on adopting itself to the environment in which it functions. Modern business is rightly termed as socio-economic activity.
There is reciprocal relationship between business and society.
Business is affected by class structure of the society which depends upon factors such as occupation its own culture, income, etc.
Every society depends its own culture, customs, tradition, values, ethics, etc. social trends are also changing fast. For e.g. large number of people are eating fast food and go to gyms. So many fast food outlets and gyms are coming up in towns and cities.
Social values and traditions such as celebration of Diwali, Eid, Christmas also affect business.

Question 3.
Political stability builds up confidence among business people.
Answer:

Business firms are affected by the government and its policies.
Political force decide the nature of business, device performance and projects for development.
Political environment includes stability and peace in the country. Political stability builds confidence among different interest groups and investors because long term policies and projects will be started by the government and if the government keep on changing every six months or in a year.
This will impact long term decisions of development for the country, because political parties identify forms their decision making, hence if a government gets its full tenure of 5 years, it can complete its projects and plans and win the confidence of the people.

Question 4.
Economic environment has direct influence on business.
Answer:

Economic environment consists of economic condition, economic policies and economic system along with basic economic philosophy, infrastructure, national income, money supply etc.
Economic condition is based on GDP, per capital income, availability of capital, growth of foreign trade and capital market.
Where as economic polices framed by the government from time to time changes with changes in the government.
Every business has to function within the policy framework and responds to changes accordingly.
This relates to Industrial Policy, monetary policy, foreign investment, EXIM policy education policy etc. Also the scope of private business and government regulation depends on the economic system such as capitalist economy, Socialist or mixed economy which impacts business decisions.

Question 5.
Social trends provide business opportunities.
Answer:

Society and business are inter-dependent.
Class structure such as occupation,education,income level social status, attributes etc impact business decisions.
Social trends are any type of activity that is practised in the society as a whole.
Trends can be for short period or long lasting. As technology progresses the changes in social trends do changes.
Companies use their ability to anticipate the social change as part of their business marketing policy, to grab the business opportunities.

Question 6.
An adequate knowledge of rules and regulations is essential for better business performance.
Answer:

Any business in a country can be started, regulated and controlled within the legal framework of a country.
Separate set of laws are framed by all countries to control and direct the business affairs.
Knowledge of law, rules and relegations helps the business managers to take prompt decision in making business policies.
Various laws are implemented for influencing the business, protect and safeguard the business, as well as the consumers.

7. Attempt the following

Question 1.
Importance of business environment.
Answer:
Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(ii) Opportunities and Threats : Study of business environment enables a business enterprise to visualise future problems that can arises as also future business prospects in advance. Deriving benefit from honourable business opportunities is possible as also it can face the problems boldly. Awareness of environment help an organisation to take advantage of such opportunities instead of loosing them to competition. It helps organisation to identify various threats on time and serves as an early signal.

(iii) Competition : Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies and strategies for the future course of action.

(iv) Utilization of Resources Optimally : Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.

(v) Strength and Weakness Identification : With the change of technology and global development it helps to analyze individual strength and weakness of the business understanding the challenges, appropriate decisions are taken on timely basis.

(vi) Knowledge : Study of environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enable the development of a formidable business wait.

(vii) Image Building: Environment study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, business can create goodwill and reputation for itself.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Social Environment.
Answer:
Business is a economic and social activity. It has to produce goods according to the requirement of the customers. Satisfying customer is the basic need of business. Therefore, while manufacturing or producing goods, business has to take into consideration social factors like traditions, customs, education, habits, values, life styles, thinking and earnings of the people of country. Changes in social environment are a must and management has to take into consideration these factors which determines the following aspects.
1. Social Aspect : Literacy level, educational system, tradition and customs, transition of labour, etc. are the important aspect of social environment. It helps to analyze the needs of the people and accordingly the business opportunities are identified.

2. Social Trends : Business practices and procedures must be in tune with the social beliefs. Growing number of working women and changing life style have increased the demand for household appliances in India.

3. Social Values : Cultural and social values, (social justice, national integration, etc.), family organization and caste structure, social institutions and groups, are taken to consideration while making practices and procedures of business.

4. Traditions : Customs and traditions. (Diwali, Id, Christmas, etc.) also has an effect on the business. The businessmen have to be more responsible towards the demand of the people accordingly.

Question 3.
Economic environment.
Answer:
1. Economic environment comprises of economic condition economic policies and economic system which are the important factors influencing development and trade cycles, national income, etc.

2. Economic Condition : If refers to present state of economy of a country or region based on gross domestic product, per capita income, availability of capital, etc.

3. Economic Policies: Government frames economic policies time to time influencing the business activities. In order to controls the business in the interest of the politics, e.g. – Industrial policy, monetary policy, foreign investment policy etc.

4. Economic System: It refers to the scope of private business and extent of government regulation on economic activities determines the nature of economic system i.e. – capitalist social or mixed economic.

Question 4.
Political Environment.
Answer:
Political dimensions or environment includes the country’s political system or its ideologies or condition i.e. dictatorship or democracy or communist government or socialistic government. It indicates the general stability and peace in the country and attitude of the elected government representatives towards business.

Political stability builds up confidence among business people to invest in long-term projects for the growth of the economy. In India we have adopted mixed economy and growth rate often remains moderate. Indian political system comprises three vital institutions like Legislature, Government and Judiciary.

Legislature : legislature is very powerful force that decides the nature of business, programmes, project, for the development of the country through policy making, law making, budget approving, etc.
Government : The framework of policies are implemented by government which effects the business organization to under take the responsibilities of the society.
Judiciary : It determines the work of executives to carry out the policies in a systematic manner, in order to settle relationship between citizens and the government.

Question 5.
Impact of new economic policy on business and industry.
Answer:
(A) Introduction : On July, 1991, the Government of India announced its New Industrial Policy. It brought about radical changes in the Economic Policy. The three main pillars of Economic reforms are L – P – G (Liberalisation, Privatisation and Globalisation). The main purpose was to modernise India’s Industrial system, implement new techniques, remove unproductive control, encourage private investment and integrate our economy with the global economy.

(B) Impact of changes in Government Policy on Business and Industry:
1. Budgetary Support: The Central Government’s budgetary support for financing the public sector outlays has declined over the years. In order to survive and grow, PSUs have to be more efficient and self sufficient so as to compete with private sector.

2. Increase in Competition : Competition for Indian firms has increased due to the changes in the rules of industrial licensing and entry of foreign firms, for e.g. Service Industries like Insurance, Banking, Telecommunications, Hotel and Airlines, etc. which were earlier in the public sector are now facing competition from private players such as Bajaj Alliance, Max Life, Star Life, Insurance, low cost airlines like Indigo, etc.

3. New Trade Policy : The new trade policy has helped the Indian Firms to enter into foreign markets and earn the foreign exchange required for importing raw materials, spare parts and components they needed for keeping their production lines going.

4. Demanding Customers : Today’s market is customer oriented as customers are well informed and there is growing awareness among them about the malpractices adopted by traders, consumer rights, consumer education and so on. Moreover, competition in the market gives the customer wider choice in purchasing good quality product and makes customer more demanding.

5. Need for Human Resource Development : New technologies require expert knowledge and skill in various fields. Moreover, newer markets made it compulsory for companies to acquire trained personnel with high degree of competence and commitment. Hence, there is a need for well trained staff and thereby develop human resources.

6. Change in Technological Environment : Increased competition and advancements in the field of technology have forced the business units to develop new ways to survive and grow in the market and keep pace with latest technological developments.

7. Change in the Concept of Marketing : Earlier business organisations were production oriented but due to fast changing business world it has now become market oriented. This changed to societal concept where needs of society are kept in mind by the producers. The latest is relationship marketing whereby it is not only producing goods for consumers but maintaining long term relationship with them so as to sustain them.

8. Answer the following

Question 1.
What is business environment? Explain the important of business environment.
Answer:
(A) Business Environment:
A business is defined as buying and selling activity to generate income. Business consists of several interrelated and interacting elements. Business is an economic and social activity of the society. Society is an integral part of the business and its interest cannot be ignored.

Business environment consists of economic, social, legal, technological and political situation. Business obtains money, material, machinery and manpower and other resources from environment.
According to B. O. Wheeler – Business environment is “the total of all things external to firms and individuals which effect their organisation and operations”.
According to Oxford English Dictionary – “Business Environment refers to those aspects of the surroundings of a business enterprise which influence or effect its operations and determine its effectiveness.”
Basically business environment consists of all internal and external factors that influence the nature and scope of business activity.

(B) Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Explain the new economic policy in details.
Answer:
The new economic policy was introduced by the Government on 24th July, 1991, on the failure of the earlier Industrial policy prevailing in India.
The new policy was known as LPG i.e. Liberalisation, Privatisation and Globalisation. This was the brain child of the Prime Minister P. V. Narasimha Rao and the finance minister Dr. Manmohan Singh.

(i) Liberalisation:
It means to liberate the industry, trade and commerce from the unnecessary restrictions and regulations that curtailed the freedom of enterprise.
Liberalisation has helped the Indian economy to open up and allowed the entry of foreign business in India. The interaction with the world has happened after the 1991 policy.

Liberalisation policy has brought about the following measures:

Encouraging Direct Foreign Investment.
Wide Choice of products and services enjoyed by the customers.
Reduction in control of Foreign Exchange.
Cost of products, price and quality in tune to the global markets.
Changing the approach towards industrial sickness.
Production of quality products to meet the competitive markets.
Freedom to choose the Scale of business.
Reduction in tax rates, tax holidays, etc.
Encouraging new technology, technological upgradation and foreign collaboration.
I mport of machinery, goods and other services on easy terms.
Abolishing licensing system for most of the industries.
Opening telecommunication sector.

Liberalisation has thus made the country achieve high growth rate, made the rupee stronger and helped good industrial relations.

(ii) Privatisation:
Privatisation is a process of transferring ownership of business, enterprise agency or public service from the public sector (government) to the private sector.
Features of Privatisation are:

To provide variety of business units to consumers.
To ensure less political interference in running the business.
To bring about more accountability.
To reduce labour problem.
To bring about a market oriented approach.
To make competition more intense.
To bring about more efficiency.
To maintain capital market discipline.

The government of the country has followed a disinvestment policy.

Disinvestment means:

When there is a sale of a public undertaking in full or part of private sector without transferring the ownership to private sector.
The management and control is transfered to public undertaking e.g. Maruti Udyog Ltd., SAIL, ONGC, etc.
Improvement in the performance of the industries through Memorandum of Understanding (MoU). Privatisation helps the private sector to be efficient result oriented, productive and active. Capitalist countries like America and Japan have followed privatisation.

(iii) Globalisation:
When the operation and organization of business activities are on a global scale, it is called as Globalisation. It is integration of business activities by considering the entire world is one market.

In short globalisation means a boundary less world, where there would be a free flow of goods, services, information, capital and people across nations. Globalisation has effect on socio-economic and political sphere of life.

Features of Globalisation:

Buying and selling goods from/to any country is possible due to globalisation.
Establishing manufacturing, production and distribution facilities in any part of the world.
Freedom to set up’ and operate business in any part of the world.
Render faster economic development of any country.
Exchange of new ideas and technology across nations.
Narrowing differences between domestic and international market.
Direct Foreign private participation in the industrial development of any country.

Thus it could be seen that globalisation is an evolutionary concept. Through the policy of 1991 the government moved the country to this globalisation pattern.

Maharashtra Board OCM 11th Commerce Solutions Chapter 6 Institutes Supporting Business

May 23, 2024May 22, 2024 by Prasanna

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 6 Institutes Supporting Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 6 Institutes Supporting Business

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

Question 1.
Small Industrial Development Bank of India (SIDBI) was established in …………………
(a) 1989
(b) 1990
(c) 1991
Answer:
(b) 1990

Question 2.
SIDBI was established under the Small Industrial Development Bank of India Act, …………………
(a) 1988
(b) 1992
(c) 1996
Answer:
(a) 1988

Question 3.
………………… is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector in India.
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(c) SIDBI

Question 4.
………………… came into existence on July 12, 1982
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(a) NABARD

Question 5.
A Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of …………………
(a) Kothari
(b) Shivaraman
(c) Rangrajan
Answer:
(b) Shivaraman

Question 6.
All India Khadi and Village Industries Board was set up in the year …………………
(a) 1953
(b) 1949
(c) 1948
Answer:
(a) 1953

Question 7.
In April ………………… KVIC was established.
(a) 1955
(b) 1953
(c) 1957
Answer:
(c) 1957

1. (B) Match the pairs

Question 1.

Part A	Part B
(i) SIDBI	(a) 1944
(ii) NABARD	(b) 1990
(iii) World Bank	(c) 1988
(iv) Grameen Bank	(d) 1983
(v) KVIC	(e) 1982
	(f) 1957
	(g) 1932
	(h) 1956
	(i) 1912
	(j) 1960

Answer:

Part A	Part B
(i) SIDBI	(b) 1990
(ii) NABARD	(e) 1982
(iii) World Bank	(a) 1944
(iv) Grameen Bank	(d) 1983
(v) KVIC	(f) 1957

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

Question 1.
Life blood of business.
Answer:
Finance

Question 2.
Principal financial institution of promotion of the Micro, Small and Medium Enterprise (MSME) sector in India.
Answer:
SIDBI

Question 3.
Advisor and mentor for MSMEs
Answer:
SIDBI

Question 4.
Wholly owned subsidiary of IDBI was set up in July 1999, is providing venture capital.
Answer:
SIDBI Venture Capital Ltd. (SVCL)

Question 5.
Digital initiative by SIDBI launched on March, 17th, 2016
Answer:
SIDBI Startup Mitra,

Question 6.
The apex institution for agricultural finance.
Answer:
NABARD

Question 7.
The Bangladeshi economist, known as the Father of Micro-finance.
Answer:
Dr. Muhammad Yunus

Question 8.
An international organization dedicated to providing finance, advice and research to developing nations.
Answer:
World Bank

1. (D) State True or False

Question 1.
Small Industrial Development Bank was established on 2nd April, 1990.
Answer:
True

Question 2.
SIDBI has its head office at Mumbai.
Answer:
False

Question 3.
SIDBI is not working towards sustainable development of MSME’s in India.
Answer:
False

Question 4.
SIDBI, Startup Mitra scheme is launched on March 17th, 2016.
Answer:
True

Question 5.
NABARD came into existence on July 12, 1982.
Answer:
True

Question 6.
The NABARD has been recognised as the apex institution for financing large scale industries.
Answer:
False

Question 7.
KVIC is actively working for planning, promotion and production of Khadi as well as in setting up of village and rural industries of India.
Answer:
True

Question 8.
Dr. Muhammad Yunus is known as the ‘Father of Rural Banking’.
Answer:
False

Question 9.
Self Help Group is a large group of homogeneous individuals.
Answer:
False

1. (E) Complete the sentences

Question 1.
The lifeblood of a business is …………………
Answer:
Finance

Question 2.
Micro, Small and Medium Enterprises (MSME’s) are focused domains for …………………
Answer:
SIDBI

Question 3.
SIDBI takes structural initiatives to resolve the financial and non-financial hurdles of …………………
Answer:
MSMEs

Question 4.
SIDBI is established to provide short-term and long-term finance to
Answer:
MSME’s

Question 5.
‘SIDBI Startup Mitra’ launched on …………………
Answer:
March 17th, 2016

Question 6.
To improve accessibility of credit and handholing services to MSME’s, SIDBI has launched the …………………
Answer:
Udyami Mitra

Question 7.
NABARD came into existence on …………………
Answer:
July 12th, 1982

Question 8.
Khadi and Village Industries Commision was set up in …………………
Answer:
1953

Question 9.
A statutory body of Khadi and Village Industries Commission (KVIC) was created with a special Act of …………………
Answer:
Parliament

Question 10.
The Grameen Bank in Bangladesh was set up in …………………
Answer:
October 1983

Question 11.
The father of Micro finance is …………………
Answer:
Dr. Muhammad Yunus

Question 12.
The World Bank came into existence on …………………
Answer:
1944 Bretton Woods Conference

Question 13.
The headquarter of World Bank is in …………………
Answer:
Washington D.C.

Question 14.
Dr. Muhammad Yunus jointly won the Noble Prize in …………………
Answer:
2006.

1. (F) Select the correct option

Question 1.
(1953, 1944, 2nd April 1990, Oct. 1983, 12 July 1982)

Part A	Part B
(i) SIDBI	—————
(ii) ————-	NABARD
(iii) KVIC	—————
(iv) —————	World Bank
(v) Grameen Bank	—————

Answer:

Part A	Part B
(i) SIDBI	2nd April 1990
(ii) 12 July, 1982	NABARD
(iii) KVIC	1953
(iv) 1944	World Bank
(v) Grameen Bank	Oct. 1983 Grameen Bank

1. (G) Answer in one sentence

Question 1.
What is SIDBI?
Answer:
SIDBI is Small Industrial Development Bank of India, which takes initiative to resolve the financial and non-financial hurdles of MSMEs.

Question 2.
What do you mean by NABARD?
Answer:
NABARD is a National Bank for Agriculture and Rural Development, which was formed with an objective to provide and regulate credit and other facilities for the development of agriculture, small scale industries, cottage village industries, handicraft and other rural crafts and allied economic activities.

Question 3.
What is meant by Grameen Bank?
Answer:
Bank which gives small loans to landless poor women to promote self employment is called Grameen Bank.

Question 4.
What is SHG?
Answer:
SHG is a small group of homogeneous individuals who come together with the objective creating common fund through savings and meet members emergency needs by providing collateral free loan.

Question 5.
What do you mean by World Bank?
Answer:
The World Bank is an international organization dedicated to provide finance, advice and research to developing nations.

Question 6.
WhatisMSME’s
Answer:
MSME’s are Micro, Small and Medium Enterprises, which play an important role in promoting entrepreneurship among women and economically weaker section in the country.

Question 7.
What is Udyami Mitra?
Answer:
‘Udyami Mitra’ is the digital portal launched by SIDBI, to improve accessibility of credit and handholding services to MSMEs.

1. (H) Correct the Underlined word and rewrite the following sentences

Question 1.
SIDBI is established to provide only long-term finance to the MSME’s.
Answer:
SIDBI is established to provide short-term and long term finance to the MSME’s.

Question 2.
The NABARD has been recognised as the apex institution for industrial finance.
Answer:
The NABARD has been recognised as the apex institution for Agricultural finance.

Question 3.
Khadi was symbol and the spirit of self reliance in post independence India.
Answer:
Khadi was symbol and the spirit of self reliance in pre independence India.

Question 4.
Self help group are based on the fundamental principle of to earn profit.
Answer:
Self help group are based on the fundamental principle of ‘helping each other’ and “unity is strength”.

Question 5.
World Bank provides high interest loan.
Answer:
World Bank provides low interest loan.

2. Explain the following terms/concepts

Question 1.
Udyami Mitra.
Answer:

This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s.
Under this portal entrepreneurs can apply for loan without physically visiting any bank branches.
The entrepreneurs can select and apply for preferred banks.
They can select suitable branch, track their application status and avail multiple loan benefits.

Question 2.
KVIC.
Answer:

KVIC was established to take over the work from All India Khadi and Village Industries Board.
KVIC is working for planning, promotion and production of Khadi and setting up of village and rural industries in India.
It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas.

Question 3.
World Bank.
Answer:

The World Bank is an international organization formed to provide finance, advice and research to developing nations.
It was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF)
The head quarter of World Bank is in Washington D.C.
It provides financial as well as technical assistance to the member countries of the world.
It comprises of two institutions namely – the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Question 4.
Self Help-Groups
Answer:

Self Help Group (SHG) is a voluntary association.
It is a small homogeneous group of people who come together with the objective of creating common fund through small savings and meet members emergency needs by providing collateral free loan at reasonable rate.
Many SHG are linked to banking institutions for getting micro-credit.
All decisions are taken collectively by SHG members.

Question 5.
Collateral Free Loan
Answer:

Collateral free loan are SHGs small loans provided to the poor individuals for undertaking self-employment projects.
Loans are given on the principle of mutual trust and either minimum or no documentation.
The rate of interest generally charged are higher than the interest charged by banks.
It saves the poor individuals from the clutches of local money lenders.

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

Anand completed his MBA and wants to start a Small Scale Industry. He is good at using technology. He has very good business idea in mind and looking for a lender or investor.

Question 1.
Who is promoter or businessman in this case?
Answer:
A person who gets the idea of starting the business enterprise is called as promoter or businessman. In the above case Anand is promoter or businessman.

Question 2.
What is full form SSI?
Answer:
The full form of SSI is Small Scale Industry.

Question 3.
Suggest digital ways to find lender or investor for this initiative
Answer:
SIDBI has started Digital initiatives / Digital ways to find lender or investor. For this initiative I can suggest the following ways:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks on one platform. It helps in financing and development of new entrepreneurs.

(b) Udyami Mitra:
This is a portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status and avail multiple loan benefits.

4. Answer in brief

Question 1.
State any four features of NABARD.
Answer:
Features of NABARD:
(i) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(ii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iii) Provides Credit for Rural Development : It takes initiatives in the development and promotion of different activities in rural area by providing funds to State governments. It also provides refinancing for upliftment of weaker section of the society. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(iv) Financing Rural Industries : It provides refinancing facility to small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 2.
State four objectives of KVIC.
Answer:
Objectives of KVIC :
(i) Development of Khadi and Other Village Industries : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. It identifies the potential for the development of rural industries and undertakes the valuable task of promoting and developing locally operating village enterprises.

(ii) Special Objective : KVIC has a special objective of providing employment. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas. It plays a role of co-ordinator with other agencies engaged in rural development.

(iii) Economic Objective : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. KVIC receives fund from the Ministry of MSMEs for effective implementation of various programs and schemes. It helps in producing saleable articles which helps the economic development of the country.

(iv) Wider Objective : It has a wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

Question 3.
Write any four features of World Bank.
Answer:
Features of World Bank:
(i) Organization and Structure : The organization of bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank. The board consists of one Governor and an Alternative Governor appointed for five years by each member country. The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest of the 15 members are elected by the remaining countries.

(ii) Goals : The World Bank Group has two goals to be achieved by 2030.

To end extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
To promote shared prosperity by fostering the income growth of the bottom 40% for every country.

(iii) Innovative Knowledge Sharing : World Bank offers support to developing countries through policy, advice, research and analysis and technical assistance. Analytical works of World Bank often helps developing countries. It also helps in capacity development of the developing countries. World Bank also sponsors, host or participates in many conferences and forums on issues of development.

(iv) Social Development : Social Development focuses on the need to “put people first” in development process. The World Bank work with governments, communities, civil societies, the private sector and the marginalized for the cause of social development. Social Development promotes economic growth and leads to higher quality of life.

Question 4.
Describe any two features of Self Help Groups.
Answer:
Features of Self Help Groups:
(i) Democratic Set up : SHG is group of the members, for the members and by the members. Every member of the group actively participates in the functioning of SHGs. Members are responsible for their own future by organizing themselves into SHGs. They elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(ii) Collateral Free Loan : SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation. Generally the rate of interest are higher than the interest charged by banks. It saves the poor individuals from the clutches of local money lenders. The repayment of loans is ensured timely as all members of group are responsible for collecting repayment amount from the members who borrowed the loan.

Question 5.
Describe any two features of SIDBI.
Answer:
Features of SIDBI:
(i) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It is principal financial institution for micro, small and medium sector units. It also co-ordinate the functions of institutions engaged in financing MSME’s. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs.

(ii) Advisory Function : SIDBI also works as advisor and mentor of MSMEs. It helps MSMEs in expanding marketing channels for the products both in domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

5. Justify the following statements

Question 1.
SIDBI acts as an institute for promotion of MSMEs
Answer:

There are many efforts taken by SIDBI to emerge as a brand which is customer friendly towards MSME’s.
It facilitates and strengthens credit flow to MSME’s.
It identifies financial and developmental gaps in the MSME’s and take efforts to resolve the same.
SIDBI has dedicated its resources towards evolution of a vibrant ecosystem.
SIDBI has taken steps for technological upgradation and modernization of existing MSME’s
Thus, we can say that SIDBI acts as an institute for promotion of MSME’s.

Question 2.
SIDBI provides different types of financial and non-financial services through its subsidiaries.
Answer:
The following are the subsidiaries of SIDBI that provides financial and non-financial services:
(i) SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering and information technology.

(ii) Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit facilities are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.

(iii) SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Brandstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is dedicated third-party rating agency and provide comprehensive, transparent and reliable ratings and risk profiling.

(iv) India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.

(v) India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and try to resolve them through its innovative mechanisms. It specially focus on the non-performing assets of MSME sector.

(vi) Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro enterprises in the country.

(vii) Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.

Question 3.
The NABARD has been recognized as the apex institution for agricultural finance.
Answer:

India is an agricultural country.
Agriculture and its allied activities act as main source of livelihood for most of the rural population of India.
Government of India is aware about the need of boosting institutional credit in rural economy.
The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take review of agricultural credit in India.
The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July, 12 1982 under the special Act of the Parliament, with an objective of providing credit and other facilities for the development of agriculture.
Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.

Question 4.
KVIC plays an important role in development of entrepreneurship.
Answer:

Entrepreneurship Development is one of the major functions of KVIC.
KVIC helps to provide additional livelihood avenues to the village communities.
KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth. It increases the earning capacity as well as prevents migration.
KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
Thus, we can say that KVIC plays an important role in development of entrepreneurship.

Question 5.
Mutual Trust is the soul of SHG.
Answer:

Most of the Indian villagers are facing challenges such as poverty, illiteracy, lack of skills, health care, etc.
There is a need of group efforts to solve these problems.
The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
Through mutual trust thousands of poor and the marginalized individuals are building their lives, their families and their society.
Thus, we can say mutual trust is the soul of SHG.

Question 6.
SHGs play an important role in empowerment of women.
Answer:

The empowerment of women through SHG’s would lead to benefits not only to the individual women but also for the family and community as a whole.
The SHGs empower women and trains them to take active part in socio-economic progress of the nation.
SHG develops saving habits among the women.
It enhances status of women as they participate, lead, take decisions and get benefited through collective efforts,
Thus, we can say that SHG’s play an important role in empowerment of women.

Question 7.
World Bank plays vital role in social development.
Answer:

The World Bank work with governments, communities, civil societies, private sectors and the marginalized for the cause of social development.
Social development promotes economic growth and leads to higher quality of life.
The World Bank work on social development, brings voices of the poor and vulnerable into development process.
World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis,
Thus, World Bank plays a vital role in social development.

6. Attempt the following

Question 1.
State the different forms of finance provided by SIDBI.
Answer:
SIDBI offers the following finance facilities to its customers:

Direct Finance : SIDBI offers direct financing to the MSMEs through financing Working Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Schemes etc.
Indirect Finance : SIDBI offers indirect assistance by providing refinance to banks, State Level Financial Institutions, etc. with an extensive branch network across the country.
Micro Finance : SIDBI offers micro-finance to small businessmen and entrepreneurs for establishing their business.

Question 2.
State the role of SIDBI in sustainable development.
Answer:
Role of SIDBI in sustainable development:

SIDBI helps MSMEs in creation of economic wealth while preventing ecological wealth of the country.
It promotes the culture of energy efficient and sustainable finance.
It takes initiative to enhance awareness of benefits of climate control amongst MSMEs.
It focuses on lending schemes, promoting investments in clean production and energy efficient technologies.
It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

Question 3.
Explain the role of NABARD in financing rural industries.
Answer:
Role of NABARD in financing rural industries:

It plays an important role in providing refinance to small scale industries and other village and cottage industries.
It provides loans to commercial and co-operative banks to promote rural employment.
It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 4.
Explain the objectives of KVIC.
Answer:
Objectives of KVIC are:

The objectives of KVIC are broadly classified into three, i.e. social objective, economic objectives and wider objective.
Through social objective, KVIC aims at providing employment to the rural unemployed.
Through economic objective, it tries to produce saleable articles which will give promotion to KVIC products.
Through wider objective, it attempts to create self refinance amongst the poor and building a strong rural community spirit.

Question 5.
Explain the role of KVIC in employment generation.
Answer:
Role of KVIC in employment generation:

Due to massive population growth agricultural sector is losing its ability to generate additional employment in rural areas.
It is necessary to create employment opportunities for the fast increasing workforce in rural areas.
Khadi and village industries are labour intensive in nature.
The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.
It also concentrates on the betterment of rural artisans and socio-economic weaker section of the society.

Question 6.
Explain in detail democratic setup in SHGs.
Answer:
Democratic set up in SHGs:

SHG is group of the members, for the members and by the members.
It is the group which reflects the people’s real participation in the process of development.
Every member of the group actively participates in the functioning of SHGs.
Members are responsible for their own future by organizing themselves into SHGs.
They elect or select leader for proper functioning of the group.
Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

Question 7.
Explain organizational structure of World Bank.
Answer:
Organizational Structure of World Bank:

The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members.
Board of Governors is the supreme policy making body of the bank.
The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country.
The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

7. Answer the following

Question 1.
Write important features of SIDBI.
Answer:
Important features of SIDBI are as follows:
(i) Sustainable Development : SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

(ii) Nodal/Implementing Agency : SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in upgradation, modernization and expansion of business.

(iii) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.

(iv) Advisory Function: SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

(v) Forms of Finance : SIDBI offers the following facilities to its customers:

Direct Finance
Indirect Finance
Micro Finance

(vi) Digital Initiatives:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks at one platform. It helps in financing and development of new entrepreneurs. It also works as knowledge partner for State and Central Government.

(b) Udyami Mitra:
This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status an avail multiple loan benefits.

(vii) Achievement of National Goals : SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in MSME sector. It promotes entrepreneurship among women and economically weaker section of the society.

(viii) Services of MSMEs : SIDBI provides different types of financial and non financial services through its associates and subsidiaries. These associates and subsidiaries are as follows:

SIDBI Ventures Capital Ltd.
Credit Guarantee Fund Trust for Micro and Small Enterprises
SME Rating Agency of India Ltd.
India SME Technology Services Limited
India SME Asset Reconstruction Company Ltd.
Micro Units Development & Refinance Agency

Question 2.
Write important features of NABARD.
Answer:
Important features of NABARD are as follows:
(i) Financing Rural Industries : It plays an important role in providing refinance for small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

(ii) Assistance to Financial Institutes : It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors implementation of developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations and development of human resources.

(iii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iv) Credit for Rural Development: It takes initiative in development and promotion of different activities in rural area by providing funds to State government. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(v) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(vi) Recommendations to Reserve Bank of India : It provides recommendations to Reserve Bank of India on issue of licenses to Co-operative Banks, opening of new branches by State Co-operative Banks and Regional Rural Banks.

(vii) Development of Nation: It plays an important role in the improvement of storage facilities for agricultural commodities by promoting development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in sustainable development of the country through Green, Blue and White revolution.

(viii) Supervision of Financial Institutes Engaged in Agricultural Finance :It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act, 1949. It can also undertake inspection of State Co-operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.

Question 3.
Write important features of KVIC.
Answer:
Important features of KVIC are as follows:
(i) Research and Development: To face the challenge of globalisation, KVIC has introduced a number of new products range like khadi denim jeans to cater the need of the market. The KVIC undertake trainings of sales staff for effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure genuineness of the khadi products. KVIC signed Memorandum of Understanding with National Institute of Design to provide design support, services in packaging, marketing, communication, publicity, disseminating materials and other design-related activities.

(ii) Other Functions : The KVIC is charged with the planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural area. It organizes training programme for artisans engaged in Khadi and Village Industries.

(iii) Marketing Promotion : In order to attract younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness and attraction amongst masses.

(iv) Financial Assistance : It finances the projects for rural industrialization and also provides for margin money by way of subsidy. There are provisions for higher rate of subsidies in case of beneficiaries of the weaker section, tribal areas and backward regions. KVIC also provides financial assistance to institutions and individuals for development and operation of Khadi and Village industries.

(v) Rural Development : The Khadi and Village Industries plays an important role in the development of Indian economy, particularly in the development of the rural areas. KVIC facilitates proper utilization of natural resources in rural India for generating income for the rural masses.

(vi) Employment Generation: Due to increasing workforce, it is necessary to create employment opportunities. KVIC are labour intensive in nature. The broader objective of KVIC is to promote non-farm employment opportunities in rural areas.

(vii) Entrepreneurship Development : KVIC helps to provide additional livelihood avenues to the village communities. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth.

Question 4.
Write important features of SHGs.
Answer:
Important features of SHGs are as follows:
(i) Formation : It is generally formed by NGO’s or team of the government. It is an informal group. It is recognized by the government and does not require any formal registration. SHGs have well-defined rules and by-laws, hold regular meetings and maintain records.

(ii) Membership : As per the National Urban Livelihood Mission at least 5 members are required. It is difficult to manage bigger group and members cannot actively participate. From one family only one person can become a member so that more families can participate. Mixed groups are generally not preferred.

(iii) Entrepreneurship Development : The poor individuals in rural area face scarcity of capital and managerial skills. SHGs provide them capital at low interest rate which give them opportunity to start micro enterprise. These micro enterprises use untapped manpower in the area which generates employment opportunities in rural area.

(iv) Collateral Free L oan: SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation is required to get loan. The rate of interest differs from group to group and it is little higher than the interest charged by banks. It ensures timely repayment of loans as all members of the group are responsible for collecting repayment amount from the members who borrowed the loan.

(v) Democratic Setup : SHG is group of members, for the members and by the members. It is the group which reflects the people’s real participation in the process of development. Members elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(vi) Empowerment of Women : SHG is an emerging tool for socio-economic development of women all over the world. SHGs are working effectively in promoting women entrepreneurship. SHGs empower women by providing her knowledge, finance and opportunities.

(vii) Saving Habits : The SHG encourages small saving habits at regular interval among its members. The Self Help Group inculcates the thrift and savings habit among the members of each group.

(viii) Mutual Trust : Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts. Through mutual trust thousands of the poor and marginalized individuals are building their lives, their families and their society.

Question 5.
Write important features of World Bank.
Answer:
Important features of World Bank are as follows:
(i) Organisation and Structure : The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the loan Committee and the President and other staff members. Board of Governors is the supreme policy making body of the bank. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

(ii) Innovation and Entrepreneurship : Innovation and Entrepreneurship helps in higher productivity which leads to increased economic growth. It helps in creation of employment to eradicate poverty. Young and growth oriented companies contribute in employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models and opening new markets. The World Bank brings global experience, knowledge, research and investments to help client countries develop effective innovation and entrepreneurship ecosystems, such as policies, strategies, regulations and institutions that foster investments and jobs.

(iii) Financial Products and Services : World Bank provides low-interest loans, zero to low interest credits, and grants to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management.

(iv) Innovative Knowledge Sharing : World bank sponsors, host or participates in many conferences and forums on issues of development. It also collaborates with partners on many developing issues. It also takes effort to provide access to the best global expertise to the developing countries.

(v) Goals :
The world bank group has set 2 goals to be achieved by 2030.

End extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
Promote shared prosperity by fostering the income growth of the bottom 40% of every country.

(vi) Social Development : Social Development focuses on the need to ‘put people first’ in development process. The World Bank’s work on social development, brings voices of the poor and vulnerable into development.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

May 23, 2024May 22, 2024 by Prasanna

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 5 Forms of Business Organisation – II Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 5 Forms of Business Organisation – II

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

Question 1.
Departmental Organisation is financed through …………………… appropriations made by the legislature.
(a) annual budget
(b) monthly budget
(c) quarterly budget
Answer:
(a) annual budget

Question 2.
A ………………. is an autonomous corporate body created by the special Act of the parliament or State legislature.
(a) Statutory corporation
(b) government company
(c) MNC
Answer:
(a) Statutory corporation

Question 3.
A statutory corporation is answerable to ……………… or state assembly whosoever creates it.
(a) Parliament
(b) public
(c) employees
Answer:
(a) Parliament

Question 4.
In government company minimum …………………. % paid up capital is held by government.
(a) 51
(b) 41
(c) 31
Answer:
(a) 51

Question 5.
The shares of government company are purchased in the name of ………………
(a) President of India
(b) Chief Minister
(c) Defence Minister
Answer:
(a) President of India

Question 6.
Government on the advice of ………………… appoints auditor of government company.
(a) Comptroller and Auditor General of India
(b) auditor
(c) chartered accountant
Answer:
(a) Comptroller and Auditor General of India

Question 7.
A government company is a ………………… entity separate from the government.
(a) natural
(b) legal
(c) human
Answer:
(b) legal

Question 8.
……………… company has public accountability.
(a) MNC
(b) Private
(c) Government
Answer:
(c) Government

Question 9.
MNCs are powerful ……………….. entities.
(a) economical
(b) political
(c) social
Answer:
(a) economical

1. (B) Match the pairs

Question 1.

Group A	Group B
(a) BHEL	(1) Special Legislature
(b) Statutory Corporation	(2) 49% paid up capital by Government
(c) Departmental Organisation	(3) Service Motive
(d) Private Sector	(4) Railway
(e) Public Sector	(5) Profit motive
	(6) 51% paid up capital by Government

Answer:

Group A	Group B
(a) BHEL	(6) 51% paid up capital by Government
(b) Statutory Corporation	(1) Special Legislature
(c) Departmental Organisation	(4) Railway
(d) Private Sector	(5) Profit motive
(e) Public Sector	(3) Service Motive

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

Question 1.
Organisations which are owned by individual or group of individuals.
Answer:
Private Sector Organisations

Question 2.
Organisations which are owned by government.
Answer:
Public Sector Organisations

Question 3.
The sector which aims at profit maximization.
Answer:
Private sector

Question 4.
The sector which aims at providing reliable services to customers.
Answer:
Public sector Organisation

Question 5.
Organisations which are owned, financed, managed and controlled by government or combination of governments.
Answer:
Public sector Organisation

Question 6.
The organisation which is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 7.
The oldest form of business organisation under public sector.
Answer:
Departmental Organisation

Question 8.
The organisation which performs it’s all activities as an integral part for government only.
Answer:
Departmental Organisation

Question 9.
The organisation which is financed through annual budget appropriations made by the legislature.
Answer:
Departmental Organisation

Question 10.
The organisation in which there is direct and absolute control of government over the enterprise.
Answer:
Departmental Organisation

Question 11.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions and duties.
Answer:
Statutory Corporation

Question 12.
An organisation which is answerable to parliament or state assembly whosoever creates it.
Answer:
Statutory Corporation

Question 13.
An organisation which is not subject to the budget, accounting and audit controls by the government.
Answer:
Statutory Corporation

1. (D) State True or False

Question 1.
Private sector organisations are owned by individual or group of individuals.
Answer:
True

Question 2.
Public sector organisations are owned by government.
Answer:
True

Question 3.
Private sector aims at providing reliable services to customers.
Answer:
False

Question 4.
Public sector was undertaken as a part of industrial policy, 1956.
Answer:
True

Question 5.
Departmental organisation is the oldest form of business organisation under public sector.
Answer:
True

Question 6.
Departmental organisation performs its all activities separately from government.
Answer:
False

Question 7.
The Minister-in-charge of ministry is the head of departmental organisation.
Answer:
True

Question 8.
There is always problem of red tapism and bureaucracy in departmental organisation.
Answer:
True

Question 9.
There is large scope for the initiative and skill in departmental organisation.
Answer:
False

Question 10.
In departmental organisation there is flexibility in operations.
Answer:
False

1. (E) Find the odd word out

Question 1.
Indian Post, Indian Railway, Bank of India, Air India.
Answer:
Bank of India

Question 2.
Life Insurance Corporation, Reserve Bank of India, Bharat Heavy Electricals Limited, ONGC.
Answer:
Bharat Heavy Electricals Limited

Question 3.
Pepsi, Coca Cola, Dabur, Proctor & Gamble.
Answer:
Dabur

Question 4.
Tata Motors, Hindustan Aeronautics Limited, Steel Authority of India Limited, Gas Authority of India Limited.
Answer:
Tata Motors

1. (F) Complete the sentences

Question 1.
A Government company is a ………………… entity separate from the government.
Answer:
Legal

Question 2.
………………… is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 3.
A ………………… has defined powers, functions and duties.
Answer:
Statutory corporation

Question 4.
All government companies are registered under ………………… Act, 2013.
Answer:
Companies

Question 5.
MNCs are powerful ………………… entities.
Answer:
economical

1. (G) Answer in one sentence

Question 1.
What is Government Company?
Answer:
The Company which is registered under Companies Act, 2013 having minimum 51% of paid up share capital held by central government or any state government or partly by central government and partly by one or more state governments is known as Government company.

Question 2.
What is Departmental Organisation?
Answer:
It is the oldest form of business organisation. Departmental Organisation performs its all activities as an integral part for government only.

Question 3.
What is Statutory Corporation?
Answer:
Statutory Corporation is an autonomous corporate body created by the special act of the parliament or state legislature with defined powers, functions and duties.

Question 4.
What is Multinational Corporation?
Answer:
A multinational corporation is a business organisation that operates in many different countries at the same time.

Question 5.
What is Public Sector?
Answer:
Public sector organisations are those organisations which are setup by the government with the main object of providing essential services to the general public.

Question 6.
What is Private Sector?
Answer:
Private sector business which are owned by private individuals or group of individuals are termed as private sector organisation.

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

Question 1.
Statutory Corporation is a natural person created by Special Act.
Answer:
Statutory Corporation is an artificial person created by special act.

Question 2.
A Statutory Corporation is not answerable to parliament or state assembly.
Answer:
A statutory corporation is answerable to parliament or state assembly.

Question 3.
MNC have existence only in single country.
Answer:
MNC have existence in many countries.

Question 4.
Departmental Organisation has separate existence from government.
Answer:
Departmental Organisation has no separate existence from government.

Question 5.
Private sector aims at providing essential services to customers.
Answer:
Public sector aims at providing essential services to customers.

2. Explain the following terms/concepts

Question 1.
Public Sector Organisation.
Answer:

It is owned, managed, controlled and financed by government.
It includes – Departmental Organisation, Statutory Corporation and Government Companies.
Its main objective is to provide services to society.
It is managed by government officials or Board of Director.
It is large in size and operates on large scale.

Question 2.
Private Sector Organisation.
Answer:

It is owned, managed, controlled and financed by individuals or group of individuals.
It includes – Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Company and Co-operative Society.
Its main objective is to maximise profit.
It is managed by the owner himself or by their elected representatives.
It generally operate in industrial and commercial areas only.

Question 3.
Departmental Organisation.
Answer:

It is owned, managed, controlled and financed by government.
It is managed by government officials of concerned ministry.
They do not have autonomy in decision making.
They do not have separate legal entity distinct from government.
It is funded through annual budget of the government.

Question 4.
Statutory Corporation.
Answer:

It is formed under a Special Act of Parliament or State Legislature.
It is managed by Board of Director who are appointed by the government.
They enjoy autonomy in decision making.
They have separate legal entity distinct from government.
It is funded by the government initially and also in need of additional capital.

Question 5.
Government Company.
Answer:

It is a company where 51% of the paid up capital is held by Central Government or State Government jointly or individually.
It is managed by Board of Directors appointed by Government and Shareholders.
It is formed and registered under Companies Act, 2013.
They can borrow funds by issuing shares to the public or through debentures, deposits, etc.

Question 6.
Multinational Corporation.
Answer:

It is a business organisation that operates in many different countries.
It conducts business activities in more then one country.
It is controlled through centrally located head office.
They are also called as transnational or international corporations.
Example : Bata India, Infosys, Tata Motors, etc.

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

1. There is X company in which capital contribution by different entities are as follows : Madhya Pradesh Government 35%, Maharashtra Government 35% and Government of India 30% of company.

Question 1.
Find out type of this company.
Answer:
‘X’ company is a Government Company.

Question 2.
Tell any two features of this company.
Answer:
Separate legal entity and Registration under the Companies Act, 2013 are the features of “X Government Company.

Question 3.
Give an example of this type of company.
Answer:
Hindustan Machine Tools (HMT), State Trading Corporation (STC), are the examples of the Government Company.

2. There is a company which is having a registered office in Singapore and such company is having branch offices in Varanasi (India) and Hambantota (Sri Lanka). This company provides cellular services to host countries through their respective branch offices.

Question 1.
Find out type of organisation.
Answer:
This type of organisation is called as Multinational Corporation.

Question 2.
Comment on it.
Answer:
Multinational Corporation means the companies which undertake business activities in more than one country. So this company is registered in Singapore and having branches in India and Sri Lanka.

Question 3.
Name the business organisation, which is self-financed, delegates authority and run by government as an integral part of it.
Answer:
It is a Departmental Organisation.

Question 4.
State any two merits of this organisation.
Answer:
No separate legal entity and Government employees are the merits of Departmental Organisation.

3. A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to legislature.

Question 1.
Which type of organisation is this?
Answer:
It is a Statutory Corporation.

Question 2.
Give any three Features of this organisation.
Answer:
Corporate body, No political interference, Own staffing system are the features of Statutory Corporation.

Question 3.
Give any one example of this type of organisation.
Answer:
“Life Insurance Corporation of India” is the example of Statutory Corporation.

4. Distinguish between the following

Question 1.
Private Sector Organisation and Public Sector Organisation.
Answer:

	Private Sector Organisation	Public Sector Organisation
(1) Meaning	Private enterprises are owned managed, controlled and financed by individuals or groups of individuals. Thus, ownership and management is with private organisations.	Public enterprises are owned, managed and controlled by the state on behalf of the people.
(2) Management	It is managed by industrialists through board of directors and other specialized executives.	It is managed by government officials or board of directors.
(3) Size of Entity	They are usually of small or medium size depending on volume of operation.	They are usually large in sized and they operate on large scale.
(4) Capital provider	Capital is contributed by owner from their own resources and borrowings from financial institutions.	The capital of public sector organisation is contributed by government.
(5) Decision making	Decision making is quick as very few officials are involved in decision making process.	Decision making is delayed due to bureaucratic hurdles.
(6) Business area	It generally operates in industrial and commercial areas only.	It operates in utility services areas like – railways, post, etc. and also in industrial and commercial areas.
(7) Main motive	Main motive of private sector organisation is to earn a profit.	Main motive of public sector organisation is to provide services to society.
(8) Flexibility	They are more flexible in nature as their policies can be modified as and when the need arises.	There is no flexibility in their operations as any change or modification requires the approval of thp Government.
(9) Political Interference	In private enterprises, there is no political interference and therefore executive enjoys complete autonomy and freedom of operations.	Public enterprises working is always affected by political interference. There is constant danger of undue interference by political parties and their leaders.
(10) Competition	Private enterprises operate in cut throat competition.	Public enterprises are generally monopolies or oligopolies (only two sellers in market.)
(11) Economic Equalities	Private sector increases economic inequalities.	Public Enterprises reduce economic inequalities.
(12) Regional Balance	Private enterprise increase regional imbalance because it wants to enjoy the advantages of location of industries.	Public enterprises tries to reduce the regional imbalance as it intends to bring about balanced regional development.
(13) Efficiency	Private Enterprises are more efficient due to profit maximisation, division of labour and specialisation.	Public enterprises lack initiative, flexibility and efficiency because profit motive is absent.
(14) Constituents	Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Companies, Co-operative Society are different forms private sector.	Departmental Organisation, Statutory Corporations and Government companies are types of public sector.

Question 2.
Departmental Organisation and Statutory Corporation.
Answer:

	Departmental Organisatio	Statutory Corporation
Meaning	The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation.	The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Management	It is managed by government officials of the concerned ministry.	It is managed by board of directors nominated by government.
Legal Status	There is no separate legal status distinct from the government.	Statutory company has a separate legal status distinct from the government.
Borrowing Power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Statutory Company can borrow from public by issue of shares and debentures.
Control	It is controlled by the concerned ministry.	It is controlled by government by the Act of Parliament or State Legislature.
Capital	Capital of departmental organisation comes from annual budget appropriations of the government.	Capital for statutory company comes from Central or State Government.
Formation	It is formed through Executive decision taken by the concerned ministry.	It is formed by passing a Special Act in the Parliament or in the State Legislature.
Suitability	It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc.	It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Staff	Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants.	Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration.
Flexibility	It has low flexibility in its operation.	It has moderate flexibility in its operation.
Autonomy	It does not have autonomy in decision making.	It has autonomy in decision making.

Question 3.
Government Company and Multinational Corporation.
Answer:

	Government Company	Multinational Corporation
Meaning	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.	Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Capital	The capital is contributed by the Central Government or State Government or even by general public.	The capital is contributed by the shareholders or financial institutions in several countries.
Management and Control	Government Company is managed by Board of Directors appointed by government and shareholders.	Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country.
Establishment	Government companies are formed and registered under provisions of Companies Act, 2013.	Multinational corporations have to seek permission from the government and host countries.
Borrowing power	Government companies can borrow funds by the way of debt or issuing shares to the public.	Multinational corporation use resources of different countries.
Area of Operations	Government company operates within the local boundaries of a nation.	MNC operates in several countries, having headquarters in one country.
Motive	Government companies are service oriented and hence take interest in the social welfare activities of the country.	MNCs are profit motivated rather than service oriented.
Accountability	Government Company has to take its annual reports in the Parliament where its working is discussed and debated. Though it has autonomy in financial matters, it is indirectly accountable to the publics.	MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency	They have to deal with single currency.	They have to deal with multiple currencies and exchange rates.
Resource availability	Government company uses resources of government and its employees are government employees and are permanent.	MNCS use resources of different countries and their employees are on contract basis.
Trust and Public Confidence	Government company enjoy more public confidence as they have government backing and support.	MNCS do not have government backing and support in host countries.
Example	Steel Authority of India Ltd., State Trading Corporation, Indian Oil Corporation, BHEL, HMT, etc.	Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

Question 4.
Departmental Organisation and Multinational Corporation.
Answer:

	Departmental Organisation	Multinational Corporation
Meaning	The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation.	Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Management	Departmental Organisation is managed by government officials of the concerned ministry.	Multinational Corporation is managed by parent company. It manages affairs of the subsidiary from the respective home country.
Legal status	There is no separate legal status distinct from the government.	It has separate legal status.
Borrowing power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Multinational corporation use resources of different countries.
Control	Departmental Organisations are controlled by the concerned ministry.	Multinational corporations are controlled by respective parent companies and mostly home strategic.
Capital	Capital of the Departmental Organisation comes from annual budget appropriations of the government.	The capital is contributed by the shareholders or financial institutions in several countries.
Ownership	Departmental undertaking is fully owned by the Government.	Ownership of MNC is in hands of shareholder’s of the company.
Privileges & Concessions	It receives highest government concessions and privileges.	MNC do not have any concessions. They have to pay duties and taxes.

Question 5.
Government Company and Statutory Corporation.
Answer:

	Government Company	Statutory Corporation
Meaning	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.	The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Capital	The capital is contributed by the Central Government or State Government or even by general public and financial institutions.	Capital for the statutory corporation comes from Central or State government.
Managemen	Government Company is managed by Board of Directors appointed by government and shareholders.	Statutory Corporation is managed by Board of Directors nominated by government.
Control	These companies are controlled by government or shareholders.	Statutory corporation is controlled by government by the Act of Parliament or State Legislature.
Establishment	Government companies are formed and registered under provisions of Companies Act, 2013.	The statutory corporation is established by special Act of the Parliament or State Legislature.
Borrowing power	Government companies can borrow funds by the way of debt or issuing shares to the public.	tatutory corporation can borrow from public by issue of bonds.
Privileges & Concessions	It has no privileges and concessions by government.	It enjoys moderate privileges and concessions.
Suitability	It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc.	It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Political Interference	It has less political interference in management of company as it has its own Board of Director.	It has more political interference as it is controlled by State and Central Government.
Flexibility	Government companies are more flexible in operations of business. They can change line of business as per market trend.	Statutory company are rigid in operations they are formed for the particular purpose.
Accountability	It is accountable to public.	It is accountable to State and Central Government.
Autonomy	It has full autonomy as its incorporated under Companies Act, 2013.	It has theoretical autonomy as its established with certain purpose by Central or State Government.

Question 6.
Departmental Organisation and Government Company.
Answer:

	Departmental Organisation	Government Company
Meaning	The organisation which is owned, managed, controlled, financed and operated by Government is known as Departmental Organisation.	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.
Management	Departmental Organisation is managed by government officials of the concerned ministry.	Government Company is managed by Board of Directors appointed by government and shareholders.
Legal Status	There is no separate legal status distinct from the government.	A Government company has legal status separate from the Government.
Borrowing power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Government companies can borrow funds by the way of debt or issuing shares to the public.
Control	Departmental Organisations is controlled by the concerned ministry.	These companies are controlled by government or shareholders.
Capital	Capital of the departmental Organisation comes from annual budget appropriations of the government.	The capital is contributed by the Central Government or State Government or even by general public and financial institution.
Formation	It is formed through Executive decision taken by the concerned ministry.	It is formed through registration under Companies Act, 2013.
Privileges & Concessions	It receives highest government concessions and privileges.	It has no privileges and concessions by government.
Suitability	It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc.	It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc.
Staff	Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants.	Employees can be recruited independently and it does not have to necessarily follow civil service rules.
Political Interference	It has high political interference with regards to the management.	As compared to departmental organisation it has less political interference.
Flexibility	It is rigid in operations as its managed through officers of the government.	It is more flexible in operations as managed by Board of Directors.
Motive	It is majorly concern with providing service to the people.	It is concern with giving with profit making and service to the people.
Accountability	Highly accountability to the respective the Minister in charge as they render their service.	Low accountability to the people as they render their service.
Autonomy	There is no autonomy as its owned, managed controlled, financed by government.	It has full autonomy as per provisions to Companies Act, 2013.

Question 7.
Statutory Corporation and Multinational Corporation.
Answer:

	Statutory Corporation	Multinational Corporation
Meaning	The company which is formed under a Special Act of Parliament or State Legislature is known as Statutory Corporation.	Multinational corporation is a company which is incorporated in one country and has business units in several countries.
Capital	Capital for the statutory corporation comes from Central or State government.	The capital is contributed by the shareholders or financial institutions in several countries.
Management	Statutory Corporation is managed by Board of Directors nominated by government.	Multinational Corporation is managed by parent company and it manages affairs of the subsidiary from the respective home country.
Control	Statutory Corporations are controlled by government by the Act of Parliament or State Legislature.	Multinational Corporations are controlled by respective parent companies.
Establishment	The Statutory Corporation is established by Special Act of the parliament or State Legislature.	Multinational Corporations have to seek permission from the Government and host countries.
Borrowing power	Statutory company can borrow from public by issue of shares and debentures.	Multinational Corporation use resources of different countries.
Area of Operations	Statutory corporation operates within the local boundaries of a nation. Hence, the area of operations is not large.	MNC operates in several countries, having headquarters in one country. Hence, the area of operations is large.
Motive	Statutory Corporation are service oriented and hence take interest in the social welfare activities of the country.	MNCs are profit motivated rather than service oriented. They render service in those areas where the opportunities for profit maximisation are more.
Accountability	Statutory corporation has to take its annual reports in the Parliament where its working is discussed and debated.	MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency	They have to deal with single currency.	They have to deal with multiple currencies and exchange rates.
Resource availability	Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration.	MNC’s use resources of different countries and their employees are on contract basis.
Trust and Public Confidence	Statutory corporation enjoy more public confidence as they have government backing and support.	MNC’s do not have government backing and support in host countries.
Example	UTI, LIC, RBI, ONGC, Air India, etc.	Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

5. Answer in brief

Question 1.
State any four features of Departmental Organisation.
Answer:
Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(ii) Organizational Structure : The internal organizational structure is of line type. The department is headed by minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.

(iii) Government Employees : The employees of departmental organization are civil servants and they are selected through Union Public Service Commission. Staff selection Board, Railway Recruitment Board etc. and as such they are treated as Government employees.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

Question 2.
State any four features of Statutory Corporation.
Answer:
Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(v) Independent Identity : They have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

Question 3.
State any two demerits of Multinational Corporation.
Answer:
Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) C reate Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) O utsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(iv) Misuse of Mighty Status : Multinational Corporations have powerful financial strength because of huge capital. They can afford to bear losses for a long while in the hope of earning huge profits. They have ended local competition and achieved monopoly. This may be unfair.

Question 4.
State any four merits of Government Company.
Answer:
Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(ii) Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers and so on.

(iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. Government always promotes public welfare.

(iv) Foreign Capital and Technical Know how : As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.

6. Justify the following statements

Question 1.
Departmental Organisations are run for providing public services.
Answer:

Departmental Organisations are the oldest forms of public enterprises.
Indian railways, post office, defence, All India Radio are the Departmental Organisations.
Indian Railways give services to public.
Main objective of Departmental Organisations is to provide services to public.
Private sector aims at profit maximization while public sector aims to providing reliable services to customers.
Thus, Departmental Organisations are run for providing public services.

Question 2.
There is direct control of Government on departmental organisation.
Answer:

Departmental organisations are run by the Government.
Departmental organisations are financed through annual budget of Government.
Revenues of departmental organisation is directly paid to Government treasury.
Departmental organisation has no separate existence from Government.
The staff of enterprises is treated equally with other civil servants.
Thus, there is direct control of Government on departmental organisation.

Question 3.
There is no political interference in statutory corporation.
Answer:

A Statutory corporation is an autonomous corporate body.
Statutory corporation is an artificial person created by law and it has an independent legal entity.
Employees are not government servants.
A statutory corporation enjoys financial autonomy or independence.
A statutory corporation comes into existence by following particular act, therefore, there is no political interference in formation.
Thus, all statutory corporations are free from political interference.

Question 4.
There is professional management in statutory corporation.
Answer:

A statutory corporation is able to manage its affairs with independence and flexibility.
Management of statutory corporation is done without any government interference.
The statutory corporation is relatively free from red tapism.
There is less file work and less formality to be completed before taking decisions.
Board of directors of statutory corporation consists of business experts and the representatives of various groups such as labour, consumers, etc. who are nominated by the government.
Thus, there is professional management in statutory corporation.

Question 5.
MNC helps to end local monopolies.
Answer:
Multinational corporation helps to end local monopolies.

Multinational corporations lead to competition in the host countries.
Local monopolies of host countries either start improving their products or reduces their prices.
Multinational corporation put an end to exploitative practices of local monopolists.
As a matter of fact, MNCs compel domestic companies to improve their efficiency and quality.
Thus, MNC helps to end local monopolies.

Question 6.
MNC has worldwide existence.
Answer:

As multinational corporation is operating on a global basis.
Multinational corporation have marketing operations in several countries operating through a network and branches.
They have production facilities in several countries.
Advanced Technology and international business operations are done by MNC.
It brings in much needed foreign capital for the rapid development.
Multinational corporation integrate economies of various nations with the world economy.
Thus, MNC has worldwide existence.

Question 7.
MNC has mighty economic powers.
Answer:

As MNC is operating on a global basis, they have huge physical and financial assets.
In terms of assets and turnover, many MNCs are bigger than national economies of several countries.
Multinational corporations are powerful economic entities.
Multinational corporation keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.
Thus, MNC has mighty economic powers.

7. Attempt the following

Question 1.
Merits of Departmental Organisation.
Answer:
Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

2. Proper Use of Funds : The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concern ministry. Charges for misuse of funds are less in departmental organization.

3. Social Welfare : Government undertakes socio-economic activities to promote social welfare. Providing essential comlhodities to people at reasonable price is top priority of the state. Thus, socio-economic objectives are achieved with Government control.

4. Public Accountability : The concerned minister incharge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of this enterprises on behalf of public at large.

Question 2.
Demerits of Departmental Organisation.
Answer:
Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

Question 3.
Merits of Statutory Corporation.
Answer:
Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(iii) Efficient Staff : In Statutory Corporation, employees are given fair wages, better working conditions and proper training and development programs are initiated for the employees. As a result, employer-employee relations are very cordial and staff is highly motivated to perform better.

(iv) Motivated Staff: In Statutory Corporations, employees are given fair wages, better working conditions and proper training and development programmes are initiated for the employees. As a result, employer- employee relations are very cordial and staff is highly motivated to perform better.

Question 4.
Demerits of Statutory Corporation.
Answer:
Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iii) Rigid Structure : Though statutory corporation have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is difficult task. This reduces its flexibility.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

Question 5.
Features of Government Company.
Answer:
Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

Question 6.
Demerits of Government Company.
Answer:
Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(iii) Domination of Ministers and Politicians : The ministers of the concerned departments are in charge of the Government Company. In view of Government ownership, political interference is quite common. The Directors try to serve and achieve their political motives rather than realisation of business goals as they are nominated for political gains and not on merits.

(iv) Red Tapism and Delay : The bureaucratic management delays in taking decision and implementing. There is no time frame and the employees are not devoted. There is often delay in preparing various documents and forwarding the same for taking action. Thus, delay, red tape, corruption, avoidance of work and shirking from the responsibility is common sight in Government Company.

Question 7.
Features of Multinational Corporation.
Answer:
Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(ii) Legal Existence : MNCs are registered in their home country as per their laws and as such they enjoy separate legal status. It can sue and be sued, enter into contracts and own property in their own name.

(iii) Government: MNCs have to bring about the necessary changes in their functioning based upon the laws prevailing in the countries of their operations. For e.g. advertisement about various products on TV is given in local languages in India and in national language Hindi, to cover maximum target audience. In some cases they have to change the menu to suit local demands for e.g. McDonalds had to change its menu for its business in India.

(iv) Origin: The MNCs have origin in one country and the country to which they belong is called home country. The country in which they operate their business activities is called host country. These companies are registered in their home country and have a place of business in different countries of the world. The head office controls the operations of different branches through a network of internet. They also appoint their representatives in host countries for smooth business operations.

Question 8.
Merits of Multinational Corporation.
Answer:
Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iii) Promotion of International Brotherhood and Culture: MNCs integrate economies of various nations with the world economy and promote international brotherhood and culture with peace and prosperity in the world.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(v) Technical Development: Multinational corporations gives lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The research and development is undertaken for finding out new product, new system, and new technology of doing business in an economical way.

8. Answer the following in details

Question 1.
Explain Departmental Organization and its features.
Answer:
(A) Meaning:
Departmental organizations are oldest form of public enterprises. These are run by Government departments headed by a minister who guides and controls the activities of the undertaking e.g. Indian Railways, all India Radio, Indian Post, Defence etc. A Departmental organization is organized, financed and controlled by Government like any other Government department. Under this type of organization, no distinction is made between public sector and traditional Government functions.

(B) Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

(v) Useful for Secret: matters like defence, atomic energy, etc.

(vi) No Legal Status : A government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government. Thus, the above are the features of Departmental Organization.

(vii) Government Sanction for Expansion : Public Enterprises need to take the sanction of the Government for expansion and diversification of business or for changing the policies, etc.

(viii) Examples of Departmental Organisation : Ordinance factories, Railways, Broadcasting, Post and Telegraph, BHEL, Indian Drug and Pharmaceuticals Ltd. Hindustan Aeronautics Ltd. Army Clothing Factory, Gun Factory and so on.

(ix) Run by Government : Different procedures like accounting, auditing and budgeting are at par with Government department.

(x) Managed by Government : The Departmental organization is managed by Government officials of the concern ministry.

(xi) Accounting Control : The organisation is subject to accounting and audit procedures and controls as applicable to government departments or to the concerned ministry.

(xii) Accountability : The enterprise is funded by the government and hence the government controls its affairs. In other words, it is answerable to the Parliament.

(xiii) No Separate Legal Entity : A Government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government.

Question 2.
Explain merits and demerits of Departmental Organization.
Answer:
(A) Meaning:
Departmental organizations are run by the Government departments headed by a minister who guides and controls the activities of the undertaking.

(B) Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

5. Maintain Secrecy: In matters of strategic, national importance, secrecy is essential and confidentiality can be maintained in certain business activities such as defence deals, atomic plants, drugs and pharmaceuticals etc.

6. Easy Formation : These organisations are very easy to form. They do not require any special statute or registration.

7. Direct Control: These organizations are properly managed and supervised by the qualified Government Staff Minister at the top is responsible to the Parliament for its operations.

8. Direct Revenue to Government : The revenue of departmental organizations directly goes to the jr Government treasury.

9. Less Overheads : The administrative expenses are less as government only operate it.

10. Easy Finance : These organisation get the required finance by the government through direct allocation of funds from the concerned ministry.

11. Development of Public Utilities : The departmental organisation provides public utilities or basic r necessities. People require essential services and products such as Railways, Transport and Communications, Telephone services, etc. Thus, essential services are made available by the Government department at a very reasonable rate.

(C) Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

(vi) Lack of Flexibility : The Departmental organization lacks flexibility in decision making. This is because there is centralization of authority.

(vii) Incurring Losses/Huge Losses : Most of the government undertakings incur heavy losses due to lack of business skills and approach as they are not professional.

(viii) Absence of Professionalism : There is lack of professionalism in the management of departmental organization. Often the decisions are taken unsystematically, moreover the data collected is often out dated and there is no proper analysis of such data. Hence, the decisions are taken hastily.

(ix) Political Interference : The Ministers, bureaucrats, Government officials interfere in the day to day working of the undertaking.

(x) Red Tapism and Bureaucracy : The Departmental organisations are controlled by government. Departmental organisations are facing delays, red tapism, corruption, lack of initiative, bureaucracy, etc.

(xi) Insensitive to Consumer Needs : The officials of this organisation are insensitive to the needs of consumers. The officials are not bothered about consumer needs and consumer satisfaction as they are more worried about their security of service in view of monopolistic position.

(xii) Lack of Autonomy : Departmental organisation lack autonomy and freedom in working and decision making.

Question 3.
Explain Statutory Corporation and its features.
Answer:
(A) Meaning:
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.
Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(vi) Special Act : They are established under a special Act passed by the Parliament. Its objectives, powers 98and functions are regulated by the Act.

(vii) Corporate Body : Statutory Corporation is a corporate body. It has a separate legal entity distinct from its members and thereby can enter into contracts and acquire property on its own name.

(viii) Answerable to the Legislature : A statutory corporation is answerable to Parliament or State Assembly whomsoever creates it. Parliament has no right to interfere. Though the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(ix) Legal Status : As a body corporate, it has a separate legal entity, distinct from its members and thereby can enter into contracts and acquire property in its own name.

(x) Independent Accounting System : They are not subject to budget accounting and audit laws and procedures applicable to government departments. But financial reports are placed in the Parliament for discussion.

(xi) Public Accountability : It’s accounts are audited by the Comptroller and Auditor General of India. Its annual reports and results are placed in Parliament or Legislative Assembly for discussion and hence answerable for their working and results to the Parliament.

(xii) Objective : It is service oriented and not profit oriented. It works efficiently to earn profit which is used for its day to day functioning.

Question 4.
Explain merits and demerits of statutory corporation.
Answer:
(A) Introduction
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.

Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(v) Service Motive : They are formed to provide public utility services and promote consumer satisfaction. It provides essential commodities to people at reasonable rates.

(vi) Easy to Raise Capital : Being owned by government, these corporations can raise required funds by floating bonds at low rate of interest.

(vii) Administrative Autonomy : Due to administrative and financial autonomy, statutory corporation take quick decisions and are flexible in its policy framing and working as per the changing business needs.

(viii) Public Accountability : These organisations enjoy public accountability, flexibility and autonomy in its working. The accounts are audited by Comptroller and Auditor General of India and final accounts are tabled before Parliament or Legislature.

(ix) Initiative and Flexibility : Statutory Corporation have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(x) Enjoys Economies of Scale : As these organisations are large scale undertakings which promote social welfare, it enjoys economies of large scale business operations.

(xi) Creates Employment Opportunities : Statutory organisations generate employment opportunities for the people at large. LIC, ONGC, Air India and others employ lakhs of people in the country. This reduces government burden of providing jobs to teeming millions and as such they help government.

(xii) Enjoy Monopoly : Most of statutory organisations are monopolistic or semi-monopolistic in their areas of functioning.

(C) Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

(v) Unfair Practices : Before 1991, these corporations enjoyed monopolistic and semi monopolistic position. They were charging high prices from the consumers to cover up their inefficiencies. After 1991, due to liberalization, most of them lost their monopolistic position but skill, in practice the lack competition as they are not aware of consumer needs.

Question 5.
Explain Government Company and its features.
Answer:
(A) Meaning:

A Government Company is one in which atleast 51% of its paid up capital is held by the Central Government and / or the State Government.
State Trading Corporation (STC), Steel Authority of India (SAIL), Bharat Heavy Electricals Ltd (BHEL) etc. are some of the examples of Government Companies.
These companies are registered under the Indian Companies Act, 2013 and its working is governed by the rules and regulations of the act.
Government Companies are established for purely business purpose and to complete with the private sector. The shares of the company are purchased in the name of the President of India.
Government Companies may be registered as public or private limited companies.

(B) Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(v) Own Staff: The employees are appointed as per the rules and regulations set by the company. Its employees are not governed by respective Government.

(vi) Promotes Social Welfare : Government Companies aims to optimise national and natural resources such as land, water, electricity, etc. It produces arms, ammunition and other defence equipments. It also brings about balanced regional development and leads to equality of income.

(vii) Objective : It operates on commercial principles and as such its aim is to make profit.

(viii) Separate Legal Entity : A Government Company is a corporate body created under the Companies Act. It has all features of a company such as legal entity, common seal, limited liability, etc. It can enter into contracts and acquire property in its own name.

(ix) Exemptions : Government Company is exempted from budget, accounting and audit laws applicable to government departments. Its accounts are audited by the Government Auditor. The Government has a right to exempt the company from any provisions of Companies Act which may come in its way of providing welfare services to the public at large.

(ix) Suitability : Government Companies are suitable for conducting manufacturing and marketing activities.

Question 6.
Explain Merits and Demerits of Government Company.
Answer:
(A) Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(v) Acquisition of Sick Units : A government company can acquire a sick unit in the private sector without rationalisation. It can be acquired by purchasing 51% of the share capital of a private company.

(vi) Concessions and Privileges : As government owns Government Company, it enjoys various concessions, privileges, subsidies, etc. It may also get orders for the products or services from various government departments and agencies. It also has access to use financial resources of the Government.

(vii) Efficiency : Government company has to compete with the private sector companies. Hence, it tries to promote efficiency at all levels and avoids wastages wherever possible. It tries to improve its services to consumers and promotes consumer satisfaction by providing quality goods at reasonable prices.
From the above points, it could be seen that the Government Company enjoys various benefits as it is owned by the Government and blends the objectives of privately owned companies with State owned control and maximise public welfare.

(viii) Professional Management: The management of Government Company is in the hands of the Board of Directors appointed by the Government. Government exercises control on various matters through Board of Directors. They are highly qualified.

(ix) Easy Formation : The formation of Government Company is easy as there is no procedural delay and legal constraints. It does not require special Act or Parliament approval. It comes into existence through executive decision of the Government.

(x) Flexibility : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xi) Easy to Alter : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xii) Enjoys Private and Public Objective : In a Government Company, attempt is made to combine the operating flexibility of privately owned companies with the advantage of state regulation and control in public interest.

(B) Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(v) Autonomy only in Name : Though there is administrative autonomy, these companies face a lot of interference from the government in all the matters. Appointment of Directors, employees and its working, there is no autonomy. Autonomy is only on paper and not in practice.

(vi) Weak Public Accountability : Absence of Government audit is a major draw back in case of Government company which does not assure proper utilisation of funds. There is no control on misappropriation of funds which leads to weak public accountability.

(vii) Fear of Exposure : The working of Government Company like annual report is placed before the parliament or State Legislature. It is exposed to press and public criticism. Therefore, management of the government company often gets demoralized.

(viii) Lack of Expertise: The managerial key personnel of a Government Company are deputed from government departments. Such person, generally, lack expertise and commitment leading to lower operational efficiency of the Government Company.

(ix) Ineffective Control of Parliament : There is lack of control of the Parliament in the working of the Government company. Parliament is not having direct control, due to which the officers shirk from responsibility and postpone decision making. It affects efficiency of Government company.

(x) Poor Labour Management Relations : The employer-employee relations in the Government companies are poor. This is the result of corrupt and inefficient management of selfish trade unions. Proper work culture is found absent in Government companies.

Question 7.
Explain Multinational Corporation and its features.
Answer:
(A) Meaning:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(ii) Multinational Corporation played an important role in the Indian Economy since 1991. They have become a common feature of developing economies in the world.
A Multinational Corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.

(B) Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(v) Research & Development: MNCs give lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The R&D is undertaken for finding out new product, new system, new technology, new methods of doing business in an economical way.

(vi) International Operations : Multinational Corporation play a significant role in world trade. Nearly 40% of the world is contributed by the multinational companies.

(vii) Target Profit Oriented : Earning profit is the main motive of MNCs. For this purpose they introduce new and novel products, launch new marketing schemes, organize trade fairs and exhibitions, does lots of publicity and adopts professional approach in all its dealings.

(viii) Huge Assets and Turnover : Multinational Corporation have huge financial strength because of huge capital and assets. This enables it to develop its business potential in developing and under developing nations where they can earn handsome profits.

(ix) Mighty Economic Power: Multinational Corporation has a huge capital and assets so they have a mighty economic power. They keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.

(x) Centralized Control: Multinational Corporation is managed by parent company. It manages affairs of the subsidiary company from the respective home country. Multinational corporations are controlled by parent companies and mostly home strategic.

(xi) Area of Operation : MNCs operate in different countries of the world and deal in multiple products on a large scale. They operate in those countries where chance of maximizing profit is more. MNCs of developed nations dominate the global market and they undertake production or marketing activities and so on. For . e.g. Coca Cola, Tata Tea and so on have global presence.

(xii) Professional Management: A MNC employs professionally qualified personnel to handle huge funds, advanced technology and international operations.

Question 8.
Explain Merits and Demerits of Multinational Corporation
Answer:
(A) Introduction:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(B) Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(vi) Improvement of Standard of Living : Multinational Corporations supply their product at very reasonable prices in the global market. E.g. the price of wrist watches, cell phones, etc. This helps to improve the standard of living of people of host countries.

(vii) Managerial Development : Multinational corporations have highly specialized and expert team of management. These experts are hired from different countries of the world. Also their functioning is highly professional. They adopt new technology and use huge resources.

(viii) Employment Generation : MNCs create large scale employment opportunities in host countries and . helps in reducing unemployment.

(C) Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) Create Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) Outsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(v) Multinational Corporations Import Skilled Labour : Most companies in this position imports the skilled labour they require from other economic to meet their needs. That means the best jobs, especially in the developing world, are given to people who don’t even live in the local economy. Those wages do not offer the same economic benefits because spending occurs internationally instead of at the local level.

(vi) Interference : Multinational Corporations are gigantic organizations with huge finance and efficient management. They try to bring about expansion of business through mergers, acquisitions and amalgamations. As they are huge corporations they exert influence on political parties and try to spread political ideology of their home country.

(vii) Take away Profits to Home Country : Profits made by multinational corporations are not used in the same country from where they are earned. They are not interested in development of other countries. They do not use their profits on infrastructural development of other countries.

(viii) E ncourage Political Corruption : To get favourable terms and conditions in host country multinational corporations bribe to political parties.

(ix) Repatriation of Profiles : Multinational Corporations get huge profit. Repatriation of profit by Multinational Corporation adversely affects the foreign exchange reserves of the host country. If means that a large amount of foreign exchange goes out of host country.

11th Biology Chapter 1 Exercise Living World Solutions Maharashtra Board

January 7, 2025January 6, 2024 by Prasanna

Balbharti Maharashtra State Board 11th Biology Textbook Solutions Chapter 1 Living World Textbook Exercise Questions and Answers.

Living World Class 11 Exercise Question Answers Solutions Maharashtra Board

Class 11 Biology Chapter 1 Exercise Solutions Maharashtra Board

Biology Class 11 Chapter 1 Exercise Solutions

1. Choose correct option

Question A.
Which is not a property of living being?
a. Metabolism
b. Decay
c. Growth
d. Reproduction
Answer:
b. Decay

Question B.
A particular plant is strictly seasonal plant. Which one of the following is best suited if it is to be studied in the laboratory?
a. Herbarium
b. Museum
c. Botanical garden
d. Flower exhibition
Answer:
a. Herbarium

Question C.
A group of students found two cockroaches in the classroom. They had a debate whether they are alive or dead. Which life property will help them to do so?
a. Metabolism
b. Growth
c. Irritability
d. Reproduction
Answer:
c. Irritability

Question 2.
Distinguish between botanical gardens, zoological park and biodiversity park with reference to characteristics.
Answer:

No.	Botanical Gardens	Zoological Parks	Biodiversity Parks
1.	Plants of different varieties collected from different parts of the world are grown in vivo in a scientific and systematic manner in a botanical garden.	Zoological parks are places where wild animals are kept in captivity.	It is an assemblage of species that form self-sustaining communities on degraded barren landscape.
2.	It is a type of ex situ conservation.	It is a type of ex situ conservation.	It is a type of in situ conservation.
3.	It is related to conservation of various	It is related to conservation of various fauna.	It is related to conservation of all biodiversity.

3. Answer the following questions

Question A.
Jijamata Udyan, the famous zoo in Mumbai has acclimatised humbolt penguins. Why should penguins be acclimatised when kept at a place away from their natural habitat?
Answer:

Zoological park (zoo) is a type of ex-situ conservation in which wild animals are kept in captivity.
Humboldt penguins are native to South America and the surrounding environment differs significantly at Jijamata Udyan (zoo) in Mumbai.
In order to ensure that these penguins survive longer and are healthy they need to be acclimatised (adjust) to their new environment slowly.
If they are not acclimatised or the facilities in the zoo where the penguins are kept are not optimal/ suitable, they may develop abnormal stress and exhibit unusual behaviours due to it.
These penguins may also be more prone to contracting certain diseases, since they are suited to living in a particular climatic condition.
The enclosure of these penguins consists of water pool, air handling units and a chiller system to maintain temperatures between 12 – 14°C, where the penguins were kept for around 8 to 10 days to get acclimatised to their new environment before allowing any visitors inside the zoo.

Hence, Humboldt penguins need to be acclimatised to their new surroundings, when kept at a place away from
their natural habitat.

Question B.
Riya found peculiar plant on her visit to Himachal Pradesh. What are the ways she can show it to her biology teacher and get information about it?
Answer:

Riya can press and mount the plant specimen on a herbarium sheet and preserve the dried plant material, until she returns back from her visit.
She can also write any available information regarding the collected specimen on the herbarium sheet, which can be useful for further studies with her biology teacher.
Various taxonomical aids can be useful to get information about this peculiar plant.
[Note: In order to conserve the local flora, Riya can collect photographs of plant and describe it’s structure to her teacher.]

Question C.
At Andaman, authorities do not allow tourists to collect shells from beaches. Why it must be so?
Answer:

Seashells are an important part of the coastal ecosystem and are crucial for the survival of various marine creatures.
They provide material for building nests of birds and also act as a substratum for attachment of algae, sea grass, sponges and various microbes.
Fishes use shells for hiding from predators, whereas hermit crabs use shells as temporary shelters.
Removal of seashells from seashores may also indirectly affect the rate of shoreline erosion.
Hence, in an attempt to protect the ecosystem, authorities in Andaman do not allow tourists to collect shells from beaches.

Question D.
Why do we have green house in botanical gardens?
Answer:

Greenhouse is a structure with suitable walls and a roof in which plants are grown under regulated climatic conditions.
Most botanical gardens exhibit ornamental plants which require stringent/ optimum climatic conditions for their growth and/or flowering.
The greenhouse associated with botanical gardens are also used to grow and propagate those plants that may not survive seasonal changes.

Hence, in order to provide optimum temperature for better growth and flowering and also to protect the plants from certain diseases, there are greenhouses in botanical gardens.

Question E.
What do you understand from terms like in situ and ex situ conservation?
Answer:

In situ conservation: It includes conservation of species in their natural habitats. Grazing, cultivation and collection of products from the forests is banned in such areas. Legally protected areas include national parks, wildlife sanctuaries and biosphere reserves.
Ex situ conservation: It includes conservation of species outside their natural habitats. Species are conserved in botanical gardens, culture collections and zoological parks.

4. Write short notes

Question A.
Role of human being in biodiversity conservation.
Answer:

Due to rapid increase in human population and industrialization, humans have over utilized natural resources; leading to degradation of the environment and hence only humans can help conserve the ecosystem.
Humans are capable of conserving and improving the quality of nature and thus, can play a major role in biodiversity conservation.
In order to conserve biodiversity and its environmental resources, humans must use the resources rationally and avoid excessive degradation of environment.
Human beings are stakeholders of the environment and need to come together to overcome pollution and improve the environment quality in order to conserve biodiversity. E.g. Ban or limit on use of harmful products (plastic, chemicals, etc.) that are toxic to various birds, animals, etc.
Human beings also play a role in conservation of biodiversity by establishment of various sites for in situ (national parks, wildlife sanctuaries and biosphere reserves) and ex situ (botanical gardens, culture collections and zoological parks) conservation.

Question B.
Importance of botanical garden.
Answer:
The importance of botanical gardens is as follows:

It is a place where there is an assemblage of living plants maintained for botanical teaching and research purpose.
Botanical gardens are important for their records of local flora.
Botanical gardens provide facilities for the collection of living plant materials for botanical studies.
Botanical gardens also supply seeds and material for botanical investigations.
The development of botanical gardens in any country is associated with its history of civilization, culture, heritage, science, art, literature and various other social and religious expressions.
Botanical gardens besides possessing an outdoor garden may contain herbaria, research laboratory, greenhouses and library.
Botanical gardens are not only important for botanical studies, but also to develop tourism in the country.

Question 5.
How can you, as an individual, prevent the loss of Biodiversity?
Answer:
As individuals, we can prevent loss of biodiversity in the following ways:

Increasing awareness about environmental issues. Making posters that provide more information about biodiversity conservation, to raise public awareness.
Increased support and/ or active participation in government policies and actions laid down for conservation of biodiversity.
Protect various plant and animal species in our surrounding.
Set up bird and bat houses wherever possible.
Prevent felling of trees especially native plants or trees in a particular area.
Reduce, recycle and reuse resources. Especially, reduce pollution and use of plastic bags and other materials that are potential threats for the environment.
Use environment friendly products, segregate and dispose garbage correctly.
Convince people about the importance of trees and the need to participate in tree plantation campaign.
Obey the rules that fall under Biodiversity Act.
[Students can use the given points as reference and mention additional preventive measures on their own.]

Practical / Project :

Question 1.
Make herbarium under the guidance of your teacher.
Answer:
Students are expected to perform the given activity by themselves under the guidance of their teacher.

Question 2.
Find out information about any one sacred grove (devrai) in Maharashtra.
Answer:
Sacred groves in Maharashtra are located in districts like Ahmednagar, Bhandara, Chandrapur, Jalgaon, Kolhapur, Nashik, Pune, Raigad, Ratnagiri, Sangli, Satara, Sindhudurg, Thane, Yavatmal.
[Source: Data as per C.P.R. Environment Education Centre, Chennai.]
e. g. Sacred grove of Parinche valley, Pune district of Maharashtra:

The Parinche valley region is comprised of the inaccessible rear part of the Purandhar fort and its surrounding valley region and is situated about 63 km to the southeast of Pune city and 18 km from Saswad town. The total area of the valley region is about 132 sq. km. Parinche is the biggest village and a nodal place in the valley. The majority (12) of the documented groves are located in the Kaldari and Pangare zones. The size of the sacred groves has however reduced due to various human related activities that have taken place in recent years.

The biggest sacred grove in the Parinche valley belongs to Buvasaheb of Tonapewadi and spreads over an area of 4.80 hectares. The forest types are unique to the groves. Presence of key species in the sacred groves varies from region to region. Two key tree species, i.e. Terminalia bellerica and Ficus spp., are present in these sacred groves which have almost disappeared from the surrounding areas. Large buttressed trees are another important feature of well-preserved sacred groves. The presence of these tree species indicates the vegetation of the past and also the type of potential vegetation that can be regenerated in these regions.

[Source: Waghchaure, C. K., Tetali, P., Gunale, V. R., Antia, N. H., & Birdi, T. J. (2006). Sacred Groves of Parinche Valley of Pune District of Maharashtra, India and their Importance. Anthropology & Medicine, 13(1), 55-76]
[Students can refer the given answer and search for more information about other sacred groves on their own.]

11th Biology Digest Chapter 1 Living World Intext Questions and Answers

Can you recall? (Textbook Page No. 1)

Question 1.
Whether all organism are similar? Justify your answer.
Answer:
No, all organisms are not similar.

Organisms on the earth exhibit great diversity.
Organisms are grouped as microbes, plants (autotrophs), animals (heterotrophs) and decomposers.
Different microbes and decomposers have various shapes and sizes.
Plants can be further classified on their shape, size, structure, mode of reproduction, etc. Plants also differ greatly based on the locations in which they are found, e.g. Snowy, desert, forest, aquatic, etc.
Even animals show a high degree of variation. They are classified as unicellular, multicellular, invertebrates, vertebrates, etc. Also, based on the environment in which they live, they are classified as terrestrial, aerial, aquatic and amphibians.

Question 2.
What is the difference between living and non-living things?
Answer:

	Living Things	Non-living Things
a.	Living things show growth from within.	Non-living things show growth by accumulation of materials on their surface.
b.	They reproduce asexually or sexually, except mules, sterile worker bees, infertile males.	They do not reproduce.
c.	They perform metabolism in order to obtain energy.	No metabolic changes occur in non-living things.
d.	They show irritability and respond to changes in their surroundings.	They do not show irritability.
e.	They undergo ageing and eventually die.	Non-living things do not have a finite life span.

Question 3.
Enlist the characters of living organisms.
Answer:
The basic principles of life are as follows:

Metabolism: Metabolism is breaking of molecules (catabolism) and making of new molecules (anabolism). An organism performs metabolism in order to obtain energy and various chemical molecules essential for survival.
Growth and development: Organisms tend to grow and develop in a well-orchestrated process from birth onwards.
Ageing: It is the process during which molecules, organs and systems begin to lose their effective working and become old.
Reproduction: For continuity of race (species), organisms reproduce (asexually or sexually) to produce young ones like themselves. However, mules and worker bees do not reproduce, yet are living.
Death: As the body loses its capacity to perform metabolism, an organism dies.
Responsiveness: Living organisms respond to thermal, chemical or biological changes in their surroundings.

Can you tell? (Textbook Page No. 1)

Question 1.
Whether all organisms prepare their own food?
Answer:
No, all organisms do not prepare their own food. Organisms that prepare their own food are known as autotrophs (e.g. Green plants, certain microbes). These organisms prepare their own food in the presence of sunlight, water and carbon dioxide.

Question 2.
Which feature can be considered as all-inclusive characteristic of life? Why?
Answer:
Metabolism can be considered as an all-inclusive (defining) feature of life since it is exhibited by all living organisms and does not take place in non-living things.

Another all-inclusive characteristic of life is responsiveness or irritability. This is a unique property of living beings since all living beings are conscious of their surroundings.

Question 3.
How can we study large number of organisms at a glance?
Answer:
Systematic study of organisms with the help of taxonomical aids can be used to study a large number of organisms at a glance.

Can we call? (Textbook Page No. 1)

Question 1.
Reproduction as inclusive character of life?
Answer:
No, we cannot call reproduction as an inclusive character of life. Certain organisms like mules and worker bees do not reproduce and are still living. Thus, reproduction cannot be considered as an all inclusive defining characteristic of living organisms.

Think about it (Textbook Page No. 1)

Question 1.
Can metabolic reactions demonstrated in a test tube (called ‘in vitro’ tests) be called living?
Answer:

The sum total of all the chemical reactions occurring in the body is known as metabolism and no non¬living object exhibits metabolism.
However, metabolic reactions can be demonstrated outside the body in a test tube (cell-free medium).
Thus, isolated metabolic reaction (s) outside the body of an organism, performed in a test tube is neither living nor non-living.
Metabolic reactions occurring in vitro are living reactions but not living things.

Question 2.
Now a days patients are declared ‘brain dead’ and are on life support. They do not show any sign of self-consciousness. Are they living or non-living?
Answer:
The brain controls all life processes. Hence, when a patient is declared as ‘brain dead’, he does not carry out any of the inclusive defining characters of living things (e.g. metabolism, consciousness, etc.) and is completely dependent on machines. Since, such patients do not show any sign of self-consciousness, these patients cannot exactly be called as living.

Internet my friend (Textbook Page No. 2)

Question 1.
Collect information about Prof. Almeida, Prof. V. N. Naik, Dr. A. V. Sathe, Dr. P. G. Patwardhan with reference to their taxonomic work and biodiversity conservation.
Answer:
i. Prof. Almeida:
Prof. (Dr.) Marselin R. Almeida was a renowned Plant Taxonomist and Medicinal Plant Consultant of India. He was a curator at the Blatter Herbarium (Mumbai). He discovered four new species of pteridophytes from Bombay presidency. His work includes – Pteridophytes of Maharashtra and Flora of Mahabaleshwar. He has contributed to the Flora of Maharashtra, Sawantwadi and its adjoining areas along with Dr. S. M. Almeida.

ii. Prof. V. N. Naik:
Prof. V. N. Naik is a renowned ‘Angiosperms Taxonomist’ of India. He completed the Flora of Marathwada. He has produced 15 Ph.D., 110 research articles and 6 books. His book on ‘Taxonomy of Angiosperms’ (Tata McGraw-Hill Education, 1984) is widely used throughout the world. He is currently a faculty of Dr. Babasaheb Ambedkar Marathwada University, Aurangabad.
[Source: http://www. bamu. ac. in/dept-of-botany/Achievements, aspxj]

iii. Dr. A. V. Sathe:
Collection and taxonomic studies of mushrooms in Maharashtra started around 1974. Prof. A.V. Sathe and his team were amongst the first to begin these studies. They recorded 75 species distributed in 43 genera. These species were collected from Maharashtra, Karnataka and Kerala. The collection of these species was documented in the form of a Monograph on Agaricales.
[Source: Borkar P., Doshi A., Navathe D. (2015) Mushroom diversity of Konkan region of Maharashtra, India. Journal of Threatened Taxa. 7(10): 7625-7640]

iv. Dr. P. G. Patwardhan:
Dr. Patwardhan and his associates at the M.A.C.S. Research Institute, Pune-renamed as Agharkar Research Institute (ARI), Pune have performed detailed studies on lichens. His school is in possession of over 600 species of crustose lichens, obtained after intensive collection programmes. These specimens have been deposited in the Ajarekar Mycological Herbarium in the Department of Mycology and Plant Pathology at the M.A.C.S. Research Institute, Pune.
[Source: http://lib.unipune.ac.in:8080/xmlui/bitstreamfhandle/l23456789/7451/07_introduction.pdf? sequence=7&is Allowedly]
[Students are expected to find more information on their own.]

Can you tell? (Textbook Page No. 3)

Question 1.
What are the essentials of a good herbarium?
Answer: The essentials of a good herbarium are as follows:

It is essential to identify and label the collected specimen correctly.
Specimens should be stored in a dry place.
The plants are usually pressed and mounted on the sheet of paper known as herbarium sheets. Some plants are not suitable for pressing or mounting, like succulents, seeds, cones, etc. They need to be preserved in suitable liquid like formaldehyde, acetic alcohol, etc.
In order to preserve the specimen for longer durations, acid-free paper, special glues and inks must be used to mount the specimen so that the specimen does not deteriorate.
The specimens should be dried well before preparing a herbarium in order to prevent rotting of specimen.
It is also essential to record the date, place of collection along with detailed classification and highlighting with its ecological peculiarities, characters of the plant on a sheet. Local names of plant specimens and name of the collector may be added. This information is given at lower right comer of sheet and is called ‘label’.

Question 2.
Why does the loss of biodiversity matter?
Answer:

The loss of biodiversity is an moral and ethical issue.
Biodiversity helps to maintain stability in an ecosystem.
Humans share the environment with various other organisms and harm to these species can result in loss of biodiversity.
The loss of even one variety of organisms can affect the entire ecosystem.
Hence, due to all these reasons, loss of biodiversity matters.

Question 3.
Why should we visit botanical gardens, museums and zoo?
Answer:

Botanical gardens, museums and zoos are taxonomical aids which can be used to study biodiversity.
Botanical gardens have a wide range of plant species that are protected and preserved which can be observed and studied.
Museums help gain information about various plants and animals that are preserved and may even be extinct. They act as reference hubs for biodiversity studies.
Zoos provide information about various animals. They also harbour certain endangered animals and help us understand the role of biodiversity conservation. They can also be visited to study the food habits and behaviour of animals.
Hence, we should visit botanical gardens, museums and zoos.

Find out (Textbook Page No. 4)

Question 1.
Human being is at key position in maintaining biodiversity of earth. Find out more information about the following.
i. Laws to protect and conserve biodiversity in India.
Answer:
a. Forest (Conservation) Act, 1980
b. Biological Diversity Act, 2002
c. Wildlife (Protection) Act, 1972
d. Environment Protection Act, 1986
[Students can find out more laws to protect and conserve Biodiversity in India ]

ii. Environmental effects of ambitious projects like connecting rivers or connecting cities by constructing roads.
Answer:
Connecting rivers or connecting cities by constructing roads have the following environmental effects:
a. They form barriers to animals.
b. Construction of roads requires cutting down of trees and results in large scale deforestation.
c. They occupy large land resources resulting in loss of habitat of various species.
d. It can alter the water flow pattern and damage many ecosystems.
e. Increase in air, water, soil and noise pollution can disturb various animals and birds, thus affecting their behavioural pattern.

iii. Did bauxite mining in Western Ghats affect critically endangered species like – Black panther, different Ceropegia spp., Eriocaulon spp. ?
Answer:
a. The Western Ghats, is one of the global biodiversity hotspots and retains more than 30% of all plant, aquatic, reptile, amphibian and mammal species found in India.

b. Recently, this ecologically sensitive region has been subjected to various developmental activities that have adversely affected the flora and fauna of the region.

c. Bauxite mining is one such activity which has had significant negative impact on the local environment. To access bauxite ore deposits, the above-ground vegetation needs to be completely removed, causing large scale deforestation. The vegetation in the adjoining area is also affected due to dumping.

d. The major threats of this activity include vegetation loss, forest fragmentation and biodiversity loss.
e. Since most mines fall in Eco-Sensitive Zones (ESZ), it has seriously affected the flora and fauna of the Western Ghats.

f. Black panthers have frequently been spotted at various locations in the Western Ghats and mining in these areas can seriously affect their health and numbers.

g. Certain species of Ceropegia and Eriocaulon that are endemic in the area have been reported to be critically endangered.

[Source: Chandore A. (2015) Endemic and threatened flowering plants of Western Ghats with special reference to Konkan region of Maharashtra. Journal of Basic Sciences. 2 (21-25)]
Hence it is most likely that bauxite mining in Western Ghats has adversely affected the critically endangered species like – Black panther, different Ceropegia spp., Eriocaulon spp.

Internet my friend (Textbook Page No. 4)

Question 1.
i. Collect information about botanical gardens, zoological parks and biodiversity hotspots in India.
Answer:
a. Botanical gardens in India:

No.	Botanical Gardens of India	Location
1.	Acharya Jagadish Chandra Bose Indian Botanic Garden	Kolkata
2.	Lloyd Botanical Garden	Darjeeling
3.	National Botanical Research Institute	Lucknow
4.	Botanical Garden of the Forest Research Institute	Dehradun
5.	The State Botanical Garden	Odisha
6.	Botanical Garden	Saharanpur
7.	Government Botanical Garden	Ootacamund

b. Zoological Parks in India:

No.	Zoological parks	Location	Type of animals
1.	Rajiv Gandhi Zoological Park	Pune [Katraj]	Reptiles, mammals, birds. They have a snake park.
2.	Jijamata Udyan	Mumbai	Endangered species of animals and birds.
3.	Nehru Zoological Park	Hyderabad	3500 species of birds, animals and reptiles.
4.	Indira Gandhi Zoological Park	Vishakhapatanam	Primates, carnivores, small mammals, reptiles and birds.
5.	Padmja Naidu Himalayan Zoological Park	Darjeeling	Endangered animals like snow leopards, red pandas, gorals (mountain goat), Siberian tigers and a variety of endangered bird species.
6.	Allen Forest Zoo	Kanpur	Hyena, Bear, Rhinoceros, Hippopotamus, Langoor, Musk deer. Ostrich, Emu, Crane etc.
7.	Lucknow Zoo	Lucknow	Royal Bengal Tiger, White Tiger, Gibbon, Black Bear, Asiatic Elephant, Great pied, Horn Bill etc.
8.	Alipore Zoological Gardens	Kolkata	Royal Bengal Tiger, African Lion, Hippopotamus, Great Indian One-homed Rhinoceros.
9.	The Madras Crocodile Bank Trust	Chennai	Crocodiles and many species of turtles, snakes and lizards.
10.	Parassinikkadavu Snake Park	Kannur	Spectacled Cobra, King Cobra, Russell’s Viper, Krait and Pit Viper.

c. Biodiversity hotspots in India:

No.	Biodiversity Hotspots
1.	The Eastern Himalayas (Arunachal Pradesh, Bhutan, Eastern Nepal)
2.	Indo – Burma (Purvanchal Hills, Arakan Yoma, Eastern Bangladesh)
3.	The Western Ghats and Srilanka

ii. Collect information of endemic flora and fauna of India.
Answer:
a. Endemic flora:
Albizia sikharamensis (Mimosaceae), Argvreia arakuensis (Convolvulaceae), Arundinella setosa (Poaceae), Acacia diadenia (Mimosaceae), Citrus assamensis (Rutaceae), Magnolia bailloni (Magnoliaceae), etc.
[Source: http://www. bsienvis. nic. in/Database/E_3942. aspx]

b. Endemic fauna:
Bare Bellied Hedgehog (Paraechinus nudiventris), Andaman Shrew (Crocidura andamanensis), Aruanchal Macaque (Macaca munzala), Car Nicobar Rat (Rattus palmarum), Peter’s Tube-nosed Bat (Harpiola grisea) etc.
[Source: http://faunaofindia.nic.in/PDFVolumes/spb/056/index.pdf]
[Students are expected to use the given sources and find more information on their own.]

11th Std Biology Questions And Answers:

Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9

February 21, 2022 by Bhagya

Balbharati Maharashtra State Board 11th Commerce Maths Solution Book Pdf Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Questions and Answers.

Maharashtra State Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9

Question 1.
A man buys a house for ₹ 10 lakh and rents it. He puts 10% of the annual rent aside for repairs, pays ₹ 1,000 as annual taxes, and realizes 8% on his investment thereafter. Find the annual rent of the house.
Solution:
Let ₹ ‘x’ be the annual rent of the house.
The man keeps 10% of the annual rent aside for repairs.
i.e., $\frac{10}{100}$ × x or ₹ $\frac{x}{10}$ aside tor repairs.
In addition, he pays ₹ 1000 as annual taxes.
After incurring these expenses he is left with an amount which is 8% of his investment for the house.
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q1
∴ The annual rent of the house is ₹ 90,000.

Question 2.
Rose got 30% of the maximum marks in an examination and failed by 10 marks. However, Lily who appeared for the same examination got 40% of the total marks and got 15 marks more than the passing marks. What were the passing marks in the examination?
Solution:
Let maximum marks be x
Rose scored 30% of maximum marks
i.e. Rose scored $\frac{30}{100}$ x
Rose failed by 10 marks
∴ passing marks = $\frac{30}{100}$ x + 10 …..(i)
Lily scored 40% of maximum marks
i.e. Lily scored $\frac{40}{100}$ x
Lily scored 15 marks more than passing marks
∴ passing marks = $\frac{40}{100}$ x – 15 ……(ii)
equating (i) and (ii),
$\frac{30x}{100}$ + 10 = $\frac{40x}{100}$ – 15
∴ 10 + 15 = $\frac{40 x-30 x}{100}$
∴ 10x = (25)(100)
∴ x = 250
From (i), passing marks = $\frac{30}{100}$ (250) + 10
= 75 + 10
= 85
∴ Passing marks for the examination were 85.

Question 3.
Ankita’s Salary was reduced by 50%. Again the reduced salary was increased by 50%. Find loss in terms of percentage.
Solution:
Let Ankita’s initial salary be ₹ ‘x’.
Her salary was reduced by 50%.
∴ Ankita’s salary after reduction = x(1 – $\frac{50}{100}$ )
= x(1 – $\frac{1}{2}$ )
= $\frac{x}{2}$
Ankita’s reduced salary was then increased by 50%
∴ Ankita’s final salary after the increase
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q3
∴ Loss in Ankita’s salary after the decrease and increase = x – $\frac{3 x}{4}$ = $\frac{x}{4}$

∴ Ankita lost 25% of her salary.

Question 4.
By selling 300 lunch boxes, a shopkeeper gains the selling price of 100 lunch boxes. Find his gain percent.
Solution:
Let ₹ x be the selling price (S.P.) of one lunch box.
∴ S.P. of 300 lunch boxes = 300x
and S.P. of 100 lunch boxes = 100x
Gain = 100x ……[given]
C.P. of 300 lunch boxes = S.P. – Gain
= 300x – 100x
= 200x
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q4
∴ The shopkeeper’s gain percentage is 50%.

Question 5.
A salesman sold an article at a loss of 10%. If the selling price has been increased by ₹ 80, there would have been a gain of 10%. What was the cost of the article?
Solution:
Let ₹ x be the cost price of the article.
S.P. of the article = x – $\frac{10}{100}$ x = $\frac{9x}{100}$ …….(i)
Given that, S.P. increased by ₹ 80 would have given 10% gain
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q5
∴ The cost price of the article is ₹ 400

Question 6.
Find the single discount equivalent to a series discount of 10%, 20%, and 15%.
Solution:
Let the marked price be ₹ 100
After 1st discount the price = 100(1 – $\frac{10}{100}$ ) = 90
After 2nd discount the price = 90(1 – $\frac{20}{100}$ ) = 72
After 3rd discount the price = 72(1 – $\frac{15}{100}$ ) = 61.2
∴ The selling price after 3 discounts is ₹ 61.2.
∴ Single equivalent discount = marked price – selling price
= 100 – 61.2
= ₹ 38.8
∴ The single equivalent discount is ₹ 38.8 on ₹ 100.
i.e. The single equivalent discount is 38.8%.

Question 7.
Reshma put an amount at simple interest at a certain rate for 3 years. Had it been put at 2% higher rate, she would have received ₹ 360 more. Find the sum.
Solution:
Let P and R represent the principal amount and rate of interest p.a. respectively.
Given duration = T = 3 years
Simple interest = $\frac{\mathrm{PRT}}{100}=\frac{3 \mathrm{PR}}{100}$
Given that, had the amount been kept at 2% more, then the gain would have been ₹ 360 more.
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q7
∴ The sum of money is ₹ 6,000.

Question 8.
The compound interest on ₹ 30000 at 7% p.a. is ₹ 4347. What is the period in years?
Solution:
Given that,
Principal (P) = ₹ 30,000
Rate of interest (R) = 7% p.a.
Compound interest = ₹ 4,347
Amount after compound interest
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q8
= $\left(\frac{107}{100}\right)^{2}$
= (1.07)²
∴ T = 2
∴ Amount is invested for 2 years.

Question 9.
The value of the machine depreciates at the rate of 15% p.a. It was purchased 2 years ago. Its present value is ₹ 7,225. What was the purchase price of the machine?
Solution:
Given,
Rate of depreciation = r = 15%
Number of years = n = 2 years
Present value of machine = P.V. = ₹ 7,225
The purchase price (V) of the machine can be found using
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q9
∴ The purchase price of the machine was ₹ 10,000/-.

Question 10.
A tree increases annually by $\frac{1}{8}$ of its height. By how much will it increase after 2 $\frac{1}{2}$ years. If its length today is 8 m?
Solution:
The height of the tree today is 8m.
The height of the tree increases by $\frac{1}{8}$ th of its height every year.
At the end of 1st year, height of the tree will be = 8 + $\frac{1}{8}$ × 8 = 9 m
And, at the end of the 2nd year, height of the tree will be = 9 + $\frac{1}{8}$ × 9
= 9(1 + $\frac{1}{8}$ )
= 9 × $\frac{9}{8}$
= $\frac{81}{8}$
After six more months, the height of the tree will be
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q10
∴ Increase in the height of the tree after 2 $\frac{1}{2}$ years = 10.75 – 8 = 2.75 m.

Question 11.
A building worth ₹ 1,21,000 is constructed on land worth ₹ 81,000. After how many years will the value of both be the same if land appreciates at 10% p.a and buildings depreciate at 10% p.a.
Solution:
Given,
Value of the building = V.B. = ₹ 1,21,000
Value of land = V.L. = ₹ 81,000/-
Rate of appreciation of land = rate of depreciation of building = r = 10%.
For the value of building and land to be the same.
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q11
∴ n = 2 years.
∴ After two years value of the building and land will be the same.

Question 12.
Varun invested 25%, 30%, and 20% of his savings in buying shares of three different companies, ‘A’, ‘B’, and ‘C’ which declared dividends, 10%, 12%, and 15% respectively. If his total income on account of dividends is ₹ 6,370/-, find the amount he invested in buying shares of company ‘B’.
Solution:
Let ‘T’ be Varan’s total savings.
∴ Investment of Varan in:
Company A = 25% of T = $\frac{25}{100}$ × T = $\frac{T}{4}$ ,
Company B = 30% of T = $\frac{30}{100}$ × T = $\frac{3T}{10}$ ,
Company C = 20% of T = $\frac{20}{100}$ × T = $\frac{T}{5}$
Company A, B and C declared dividends 10%, 12% and 15% respectively.
∴ Dividend from company A = 10% of $\frac{T}{4}$
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q12
∴ Varan invested ₹ 21,000 in company B.

Question 13.
Find the annual dividend received from ₹ 25,000, 8% stock at ₹ 108.
Solution:
Amount invested = ₹ 25,000
Dividend = 8%
Assuming face value F.V. as ₹ 100
Annual income per share = $\frac{\text { Dividend }}{100} \times \text { Face value }$
= $\frac{8}{100}$ × 100
= ₹ 8
Market value of the share M.V. = ₹ 108
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Miscellaneous Exercise 9 Q13
Annual dividend on amount invested = Rate of return × amount invested
= $\frac{7.4}{100}$ × 25,000
= ₹ 1850
∴ Annual dividend of ₹ 1,850 is received from 8% stock at ₹ 108.
Alternate approach
Assuming ₹ 25,000 as the total face value of all the shares.
Since the dividend is 8%,
Annual dividend = $\frac{8}{100}$ × 25,000 = ₹ 2,000

Question 14.
A, B, and C enter into a partnership. A invests 3 times as much as B invests and B invests two-thirds of what ‘C’ invests. At the end of the year, the profit earned is ₹ 8,800. What is the share of ‘B’?
Solution:
Let ‘a’, ‘b’ and ‘c’ be the amounts invested by A, B and C respectively.
Given that, A invests 3 times as much as B and B invests two third of what ‘C’ invests.
∴ a = 3b and b = $\frac{2}{3}$ c
∴ $\frac{a}{b}=\frac{3}{1}$ and $\frac{b}{c}=\frac{2}{3}$
or $\frac{a}{b}=\frac{6}{2}$ and $\frac{b}{c}=\frac{2}{3}$
∴ a : b = 6 : 2 and b : c = 2 : 3
∴ a : b : c = 6 : 2 : 3
Given that profit earned = ₹ 8800
∴ Share of ‘B’ in profit = $\frac{2}{11}$ × 8800 = ₹ 1600
∴ B’share in profit is ₹ 1600.

Question 15.
The ratio of investment of two partners Santa and Banta is 11 : 12 and the ratio of their profits is 2 : 3. If Santa invested the money for 8 months, then for how much time did Banta his money?
Solution:
Let ‘x’ be the time in months for which Banta invested his money
Santa and Banta invested their money in the ratio 11 : 12.
Santa invested his money for 8 months and the ratio of their profits is 2 : 3.
∴ 11 × 8 : 12 × x = 2 : 3
∴ $\frac{88}{12 x}=\frac{2}{3}$
∴ x = $\frac{88 \times 3}{2 \times 12}$
∴ x = 11
∴ Banta invested his money for 11 months.

Question 16.
Akash, Sameer, and Sid took a house on rent for one year for ₹ 16,236. They stayed together for 4 months and then Sid left the house. After 5 more months, Sameer also left the house. How much rent should each pay?
Solution:
Let ‘R’ be the rent per month to be paid to the landlord.
Given that, Sid left the house after 4 months
∴ Rent paid by Sid = $\frac{R}{3}$ × 4 = $\frac{4R}{3}$
Sameer left the house after another 5 months,
∴ Rent paid by Sameer = $\frac{R}{2}$ × 5 + $\frac{R}{3}$ × 4
= R( $\frac{5}{2}+\frac{4}{3}$ )
= $\frac{23R}{6}$
Akash stayed in the house for the entire year.
∴ Rent paid by Akash = 3R + $\frac{R}{2}$ × 5 + $\frac{R}{3}$ × 4
= R(3 + $\frac{5}{2}+\frac{4}{3}$ )
= $\frac{41R}{6}$
∴ The rent paid by the three of them, over that period of one year must be in the proportion.
$\frac{41 \mathrm{R}}{6}: \frac{23 \mathrm{R}}{6}: \frac{4 \mathrm{R}}{3}$
i.e. in the proportion
41 : 23 : 8 …..(multiplying throughout by $\frac{6}{R}$ )
Let x be the constant of proportionality.
Rent to be paid by Akash = ₹ 41x
Rent to be paid by Sameer = ₹ 23x
and rent to be paid by Sid = ₹ 8x
The total rent for the house was ₹ 16236.
∴ 41x + 23x + 8x = ₹ 16236
∴ 72x = 16236
∴ x = 225.5
∴ Akash should pay 41x = 41 × 225.5 = ₹ 9245.5
Sameer should pay 23x = 23 × 225.5 = ₹ 5186.5
and Sid should pay 8x = 8 × 225.5 = ₹ 1804

Question 17.
Ashwin Auto Automobiles sold 10 motorcycles. Total sales amount was ₹ 6,80,000. 18% GST is applicable. Calculate how much CGST and SGST the firm has to pay.
Solution:
Given, total sales amount for Ashwin Automobiles was ₹ 6,80,000.
18% GST is applicable.
∴ GST payable = 18% of 6,80,000
= $\frac{18}{100}$ × 6,80,000
= ₹ 1,22,400
Now CGST = SGST = 9%
= $\frac{\text { GST payable }}{2}$
= $\frac{1,22,400}{2}$
= ₹ 61,200
∴ CGST = SGST = ₹ 61,200

Question 18.
‘Sweet 16’ A ready made garments shop for Women’s garments, purchased stock for ₹ 4,00,000 and sold that stock for ₹ 5,50,000 (12% GST is applicable) Find,
(i) Input Tax Credit
(ii) CGST and SGST paid by the firm.
Solution:
Given that, stock purchased by ‘Sweet 16’ was worth ₹ 4,00,000
GST applicable is 12%.
∴ Input tax = 12% of 4,00,000
= $\frac{12}{100}$ × 4,00,000
= ₹ 48,000
∴ Input tax Credit (ITC) = ₹ 48,000
The garment stock was sold for ₹ 5,50,000
Output tax = 12% of 5,50,000
= $\frac{12}{100}$ × 5,50,000
= ₹ 66,000
∴ GST payable = output tax – ITC
= 66,000 – 48,000
= ₹ 18,000
∴ CGST = SGST = $\frac{\text { GST payable }}{2}$ = ₹ 9,000

Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7

February 19, 2022 by Bhagya

Balbharati Maharashtra State Board 11th Commerce Maths Solution Book Pdf Chapter 9 Commercial Mathematics Ex 9.7 Questions and Answers.

Maharashtra State Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7

Question 1.
Shantanu has a choice to invest in ₹ 10 shares of two firms at ₹ 13 or at ₹ 16. If the first firm pays a 5% dividend and the second firm pays a 6% dividend per annum, find:
(i) Which firm is paying better?
(ii) If Shantanu invests equally in both the firms and the difference between the return from them is ₹ 30. Find how much, in all, does he invest.
Solution:
(i) For firm 1:
Face value of the share (F.V.) = ₹ 10
Market value of the share (M.V.) = ₹ 13
Dividend = 5%
∴ Annual income from the share = $\frac{5}{100}$ × 10 = ₹ 0.5
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q1
For firm 2:
Face value of the share (F.V.) = ₹ 10
Market value of the share (M.V.) = ₹ 16
Dividend = 5%
∴ Annual income from the share = $\frac{6}{100}$ × 10 = ₹ 0.6

Since, the profit percentage from firm 1 > profit percentage from firm 2, the first firm is paying better.

(ii) Let ‘X’ be the amount Shantanu invests in each of the firms.
Given that difference between the return from them is ₹ 30, we have
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q1.2
In all, Shantanu invests = 2X
= 2 × 31,200
= ₹ 62,400/-

Question 2.
A dividend of 9% was declared on ₹ 100 shares selling at a certain price in the stock market. If the rate of return is 7.5% calculate
(i) The market price of each share, and
(ii) The amount to be invested to obtain an annual dividend of ₹ 630.
Solution:
(i) Given that,
Face value of the share (F.V) = ₹ 100
Dividend = 9%
Rate of return = 7.5%
Annual income from the share = $\frac{9}{100}$ × 100 = ₹ 9
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q2
∴ The market price of the share is ₹ 120.

(ii) Let ‘X’ be the amount to be invested to obtain an annual dividend of ₹ 630.
∴ 7.5% of X is ₹ 630
∴ $\frac{7.5}{100}$ × X = 630
∴ X = $\frac{630 \times 100}{7.5}$
∴ X = 8400
∴ ₹ 8400 need to be invested to obtain an annual dividend of ₹ 630.

Question 3.
Nilesh has the option of investing his money in 8% ₹ 10 shares at a premium of ₹ 3.50 or 7% ₹ 100 shares at a premium of 20%. Which of the two investments will be more profitable for him?
Solution:
For share 1:
Face value of the share (F.V.) = ₹ 10
Premium = ₹ 3.5
∴ Market value of the share (M.V.) = 10 + 3.5 = ₹ 13.5
Dividend = 8 %
∴ Annual income from the share = $\frac{8}{100}$ × 10 = ₹ 0.8
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q3
= $\frac{800}{135}$
= 5.93%

For share 2:
Face value of the share (F.V.) = ₹ 100
Premium = 20%
∴ Market value of the share (M.V.) = 100 + ( $\frac{20}{100}$ × 100) = ₹ 120
Dividend = 7%
Annual income from the share = $\frac{7}{100}$ × 100 = ₹ 7
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q3.1
Since, profit percentage from share 1 > profit percentage from share 2, investing in the first kind of shares will be more profitable for Nilesh.

Question 4.
Sudhakar invests ₹ 1344 in buying shares of face value ₹ 24 selling at a 12% premium. The dividend on the shares is 15% per annum. Calculate
(i) The number of shares Sudhakar buys, and
(ii) The dividend he receives annually.
Solution:
Given that,
Face value of the share (F.V.) = ₹ 24
Premium = 12%
∴ Market value of the share (M.V.) = 24 + ( $\frac{12}{100}$ × 24) = ₹ 26.88
(i) Sudhakar invests ₹ 1344 in the shares
∴ Number of shares purchased by Sudhakar = $\frac{1344}{26.88}$ = 50
∴ Sudhakar buys 50 shares.
(ii) Dividend on the share = 15%
Annual income on one share = $\frac{15}{100}$ × 24 = ₹ 3.6
∴ The total dividend he receives annually = 50 × 3.6 = ₹ 180
∴ Sudhakar receives ₹ 180 as his annual dividend.

Question 5.
Sameer invests ₹ 5625 in a company paying 7% per annum when the share of ₹ 10 stands for ₹ 12.50. Find Sameer’s income from this investment. If he sells 60% of these shares of ₹ 10 each, find his gain or loss in this transaction.
Solution:
Given:
Face value of the share (F.V.) = ₹ 10
Market value of the share (M.V.) = ₹ 12.5
Amount invested in shares = ₹ 5625
∴ Number of shares purchased by Sameer = $\frac{5625}{12.5}$ = 450
Dividend = 7%
Annual income from one share = $\frac{7}{100}$ × 10 = ₹ 0.7
∴ Sameer’s income from this investment = number of shares × annual income from one share
= 450 × 0.7
= ₹ 315
Sameer sells 60 % of these shares = $\frac{60}{100}$ × 450 = 270 shares
Sameer purchased these shares at ₹ 12.5 per share.
∴ Purchase price for these shares = 270 × 12.5 = ₹ 3375
If he sells these shares at ₹ 10 per share, he would receive 270 × 10 = ₹ 2700
∴ In this transaction, Sameer would incur a loss of 3375 – 2700 = ₹ 675

Question 6.
Geeta buys ₹ 100 shares of a company that pays a 15% dividend. She buys the shares at a price from the market that gives her a 10% return on her investment. At what price did she buy each share?
Solution:
Given that,
Face value of the share (F.V.) = ₹ 100
Dividend = 15%
∴ Annual income from the share = $\frac{15}{100}$ × 100 = ₹ 15
Rate of return on investment = 10%
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q6
∴ Geeta bought each share from the market at ₹ 150.

Question 7.
Tejas invests in 9% ₹ 100 shares at ₹ 145 but Shail invests in 7% ₹ 100 shares at ₹ 116. Whose investment is better?
Solution:
Investment of Tejas:
Given that, the Face value of the share (F.V.) = ₹ 100
The market value of the share (M.V.) = ₹ 145
Dividend = 9%
Annual income from the share = $\frac{9}{100}$ × 100 = ₹ 9
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q7

Investment of Shail:
Face value of the share (F.V.) = ₹ 100
Market value of the share (M.V.) = ₹ 116
Dividend = 7%
Annual income from the share = $\frac{7}{100}$ × 100 = ₹ 7
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q7.1
Since the rate of return for Tejas’s investment is greater than that for Shail’s, Tejas’s investment is better.

Question 8.
A 6% share yields 8%. Find the market value of a ₹ 100 share.
Solution:
Given that,
Face value of the share = ₹ 100
Dividend = 6%
Yield = 8%
Annual income on the share = $\frac{6}{100}$ × 100 = ₹ 6
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q8
∴ The market value of the share = ₹ 75

Question 9.
Ashwini bought ₹ 40 shares at a premium of 40%. Find the income, if Ashwini invests ₹ 14,000 in these shares and receives a dividend at the rate of 8% on the nominal value of the shares.
Solution:
Given,
Face value of the shares (F.V.) = ₹ 40
Premium = 40%
Market value of the shares (M.V.) = 40 + (40 × $\frac{40}{100}$ )
= 40 + 16
= ₹ 56
Ashwini invests ₹ 14000 in these shares
∴ Number of shares bought by Ashwini = $\frac{Amount Invested}{Market value of one share}$
= $\frac{14000}{56}$
= 250
Dividend = 8%
∴ Annual income on one share = $\frac{8}{100}$ × 40 = ₹ 3.2
∴ Income of Ashwini on 250 shares = 250 × 3.2 = ₹ 800
∴ Ashwini earns ₹ 800 on her investment.

Question 10.
Mr. Rutvik invests ₹ 30,000 in buying shares of a company that pays a 12% dividend annually on ₹ 100 shares selling at a premium of ₹ 50. Find
(i) The number of shares bought Mr. Rutvik and
(ii) His annual income from the shares.
Solution:
Given that,
Face value of a share (F.V.) = ₹ 100
Premium = ₹ 50
∴ Market value of a share (M.V.) = 100 + 50 = ₹ 150
Dividend =12%
Mr. Rutvik invests ₹ 30,000 in the shares.
(i) Number of shares bought by Mr. Rutvik = $\frac{Amount invested}{Market value}$
= $\frac{30000}{150}$
= 200

(ii) Dividend on the share = 12%
∴ Annual income from one share = $\frac{12}{100}$ × 100 = ₹ 12
∴ His annual income from shares = number of shares × income from one share
= 200 × 12
= ₹ 2400

Question 11.
Rasika bought ₹ 40 shares at a discount of 40%. Find the income, if she invests ₹ 12,000 in these shares and receives a dividend at the rate of 11% on the nominal value of the shares.
Solution:
Given,
Face value of the shares (F.V.) = ₹ 40
Discount = 40%
∴ Market value of the shares (M.V.) = 40 – (40 × $\frac{40}{100}$ )
= 40 – 16
= ₹ 24
Rasika invests ₹ 12,000 in these shares.
∴ Number of shares bought by Rasika = $\frac{Amount invested}{Market value of one share}$
= $\frac{12000}{24}$
= 500
Dividend = 11%
∴ Annual income on one share = $\frac{11}{100}$ × 40 = ₹ 4.4
∴ Rasika’s income on 200 such shares = 500 × 4.4 = ₹ 2200
∴ Rasika earns ₹ 2200 from her investment.

Question 12.
Nisha invests ₹ 15,840 in buying shares of nominal value ₹ 24 selling at a premium of 10%. The company pays a 15% dividend annually. Find
(i) The dividend she receives annually, and
(ii) The rate of return from her investment.
Solution:
Given that,
Face value of the share (F.V.) = ₹ 24
Premium = 10%
∴ Market value of the share (M.V.) = 24 + (24 × $\frac{10}{100}$ )
= 24 + 2.4
= ₹ 26.4
Dividend = 15%
∴ Annual income on the share = $\frac{15}{100}$ × 24 = ₹ 3.6
Nisha invests ₹ 15,840 in these shares.
∴ Number of shares bought by Nisha
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q12
(i) Annual dividend received by Nisha = Number of shares × annual income from one share
= 600 × 3.6
= ₹ 2160

(ii) Rate of return from the investment
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q12.1

Question 13.
Ashutosh buys 80, ₹ 100 shares at a discount of 20% and receives a return of 12% on his money. Calculate
(i) The amount invested by Ashutosh.
(ii) The rate of dividend paid by the company.
Solution:
Given
Face value of the shares (F.V.) = ₹ 100
Discount = 20%
∴ Market value of the shares (M.V.) = 100 – (100 × $\frac{20}{100}$ ) = ₹ 80
(i) Amount invested by Ashutosh = number of shares × market value of the shares
= 80 × 80
= ₹ 6400

(ii) Ashutosh receives a return of 12% on his money.
∴ Ashutosh’s income from shares = $\frac{12}{100}$ × 6400 = ₹ 768
∴ Ashutosh’s annual income from one share = $\frac{768}{80}$ = ₹ 9.6
Annual income from one share = $\frac{\text { Dividend }}{100} \times \text { Face value }$
∴ 9 6 = $\frac{\text { Dividend }}{100} \times 100$
∴ Rate of dividend = 9.6%

Question 14.
Vaishnavi bought 1000, ₹ 100 shares from the stock market carrying 8% dividend quoted at ₹ 130. A few days later the market value of the shares went up by 10%. Vaishnavi sold all her shares. What was her total income from this transaction?
Solution:
Given that,
Face value of the shares (F.V.) = ₹ 100
The market value of the shares (M.V.) = ₹ 130
Dividend = 8%
Income from the each share = $\frac{8}{100}$ × 100 = ₹ 8
Number of shares bought by Vaishnavi = 1000
∴ Vaishnavi’s income from dividend = 1000 × 8 = ₹ 8000
The price of the shares went up by 10%
New market value of the shares = 130 + (130 × $\frac{10}{100}$ ) = ₹ 143
Vaishnavi sold the shares at ₹ 143 which she bought at ₹ 130 each.
∴ Vaishnavi’s profit on one share =143 – 130 = ₹ 13
∴ Vaishnavi’s profit after selling all her shares =1000 × 13 = ₹ 13,000
Vaishnavi’s total income from this transaction = Income from dividend + income from sale of shares
= 8,000 + 13,000
= ₹ 21,000
∴ Vaishnavi’s total income from this transaction was ₹ 21,000.

Question 15.
Mr. Dinesh invests ₹ 20,800 in 6% ₹ 100 shares at ₹ 104, and ₹ 14,300 in 10.5% ₹ 100 shares at ₹ 143. What will be his annual income from the shares?
Solution:
For 1st kind of shares,
Face value of shares (F.V.) = ₹ 100
Dividend = 6%
∴ Annual income from one share = $\frac{6}{100}$ × 100 = ₹ 6
Market value of the share (M.V.) = ₹ 104
Total amount invested = ₹ 20,800
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q15
∴ Total income from 1st kind of shares = 200 × 6 = ₹ 1200
For 2nd kind of shares,
Face value of shares (F.V.) = ₹ 100
Dividend = 10.5%
∴ Annual income from one share = $\frac{10.5}{100}$ × 100 = ₹ 10.5
Market value of the share (M.V.) = ₹ 143
Total amount invested = ₹ 14300
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q15.1
∴ Total income from 2nd kind of shares = 100 × 10.5 = ₹ 1050
∴ Total annual income of Dinesh from both these shares = 1200 + 1050 = ₹ 2250

Question 16.
A company declares a semi-annual dividend of 5%. Daniel has 400 shares of the company. If Daniel’s annual income from the shares is ₹ 1,000, find the face value of each share.
Solution:
Given that,
Semi-annual dividend = 5%
∴ Annual dividend = 10%
Number of shares with Daniel = 400
Daniel’s annual income from the shares = ₹ 1000
∴ Annual income from one share = $\frac{1000}{400}$ = ₹ 2.5
But annual income from one share = $\frac{\text { Annualdividend }}{100} \times \text { Face value }$
∴ 2.5 = $\frac{10}{100}$ × Face value of the share
∴ Face value of the share = ₹ 25

Question 17.
Bhargav buys 400, ₹ 20 shares at a premium of ₹ 4 each and receives a dividend of 12%. Find
(i) The amount invested by Bhargav.
(ii) His total income from the shares.
(iii) Percentage return on his money.
Solution:
Given that,
Face value of the shares (F.V.) = ₹ 20
Premium = ₹ 4
∴ Market value of the shares (M.V.) = ₹ 24
Dividend = 12%
∴ Annual income from the share = $\frac{12}{100}$ × 20 = ₹ 2.4
Bhargav buys 400 shares
(i) The amount invested by Bhargav = number of shares × market value
= 400 × 24
= ₹ 9600

(ii) Bhargav’s income from the shares = number of shares × annual income from one share
= 400 × 2.4
= ₹ 960

(iii) Percentage return on Bhargav’s money
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q17
∴ Bhargav gets 10% as the rate of return on his money.

Question 18.
Anil buys 350 ₹ 100 shares of a company at a premium of 20% from the market. The company pays 12% dividend annually. Find
(i) the investment made by Anil,
(ii) his annual income from the shares, and
(iii) the rate of return from the shares.
Solution:
Given that,
Face value of shares (F.V.) = ₹ 100
Premium = 20%
∴ Market value of shares (M.V.) = 100 + ( $\frac{20}{100}$ × 100) = ₹ 120
Dividend = 12%
∴ Annual income from one share = $\frac{12}{100}$ × 100 = ₹ 12
Anil buys 350 shares.
(i) Amount invested by Anil = number of shares × market value
= 350 × 120
= ₹ 42,000

(ii) Anil’s annual income from the shares = number of shares × annual income from one share
= 350 × 12
= ₹ 4200

(iii) Rate of return from shares
Maharashtra Board 11th Commerce Maths Solutions Chapter 9 Commercial Mathematics Ex 9.7 Q18
∴ The rate of return from Anil’s shares is 10%.