Class 12

Balbharti Maharashtra State Board 12th Chemistry Important Questions Chapter 8 Transition and Inner Transition Elements Important Questions and Answers.

Maharashtra State Board 12th Chemistry Important Questions Chapter 8 Transition and Inner Transition Elements

Question 1.
What are d-block elements? Give their general electronic configuration.
Answer:
Definition : d-block elements are defined as the elements in which the differentiating electron enters d-orbital of the penultimate shell i.e. (n – 1) d-orbital where ‘n is the last shell.

The general electronic configuration can be represented as, (n – n) d^{n – 10}, ns^{n – 2}

Question 2.
What is the position of the transition elements in the periodic table?
Answer:
The transition elements are placed in periods 4 to 7 and groups 3 to 12 of the periodic table.

Question 3.
In which block of the modern periodic table are the transition elements placed?
Answer:
Transition elements are placed in d-block of the modern periodic table.

Question 4.
Why are most of the d-block elements called transition elements?
Answer:

• d-block elements have electronic configuration,(n – n) d^{n – 10}, ns^{l – 2}. They are all metals.
• In the periodic table, they are placed between the ,s-block and p-block elements, i.e., in the groups between 2 and 13.
• They show characteristic properties which are intermediate between those of the elements of s-block and p-block.
• Hence, they show a transition in the properties from those of the most electropositive .v-block elements and less
• electropositive (or electronegative) p-block elements.
• Therefore, most of the d-block elements are called transition elements.

Question 5.
How many series of d-block elements are present in the long-form periodic table? Give their general electronic configuration.
Answer:
There are four series of d-block elements which are placed between 5 and p-block elements in the long-form periodic table as follows :

d-series	Period	Electronic configuration
(1) 3d-series	fourth	[Ar] 3d1 – 10, 4s1 – 2
(2) 4d-series	fifth	[Kr] 4d1 – 10, 5s1 – 2
(3) 5d-series	sixth	[Xe] 4f14 5d1 – 10 6s1 – 2
(4) 6d- series	seventh	[Rn] 5f14 6d1 – 10 7s2

Modern periodic table :

Question 6.
Represent the elements in the four series of transition elements.
Answer:

Question 7.
In which period of the periodic table, will an element, be found whose differentiating electron is a 4d-electron?
Answer:
An element whose differentiating electron is a 4d-electron will be present in fifth period of the periodic table.

Question 8.
Write the condensed electronic configuration of each series of transition elements.
Answer:
Condensed Electronic Configuration of Transition Elements

Question 9.
Write expected and observed electronic configuration of 3d-series block elements.
Answer:
Electronic configuration of 3d-series of d-block elements

Question 10.
Explain why transition elements with electronic configuration 3d44s2 and 3d94s2 do not exist.
Answer:
(1) d-orbitals are degenerate orbitals and they acquire extra stability when half-filled (3d⁵) or completely filled (3d¹⁰). Hence 3d⁴ and 3d⁹ electronic configurations are less stable.
(2) The energy difference between 3d and 4.s’ subshells is very low, hence there arises a transfer of one electron from 45 orbital to 3d orbital.
The electronic configuration changes as,
3d⁴, 4s² → 3d⁵ 4s¹
3d⁹, 4s² → 3d¹⁰ 45¹
Therefore transition elements, with electronic configurations 3d⁴, 4s² and 3d⁹, 4s² do not exist.

Question 11.
Write observed electronic configuration of elements from first transition series having half-filled d-orbitals.
Answer:
There are two elements namely Cr and Mn which have half-filled d-orbitals.
₂₄Crls²2s²2p⁶3s²3p⁶3d⁵4s¹
₂₅Mnls²2s²2p⁶3s²3p⁶3d⁵4s²

Question 12.
Explain the variable oxidation states of metals of first transition series.
Answer:

• The transition metals (or, elements) exhibit variable oxidation states due to their electronic configuration, (n – 1) d^{1 – 10} ns^{1 – 2} for the first row.
• They show only positive oxidation states due to loss of electrons from outer 45-orbital and the penultimate 3rf-orbital.
• Loss of one 45 electron forms M+ ion. Loss of two 45 electrons form M²⁺ ion.
• +2 is the common oxidation state of these elements.
• Higher oxidation states are due to loss of 3 d-electrons along with 45 electrons.
• As the number of unpaired electrons increases, the number of oxidation states shown by the element also increases.
• Sc has only one unpaired electron and it shows two oxidation states ( + 2 and + 3)
• Mn with 5 unpaired d electrons show six different oxidation states. They are +2, +3, +4, +5, +6 and + 7. Thus Mn has the highest oxidation state.
• From Fe onwards variable oxidation states decreases as the number of unpaired electron decreases.
• The last element in the series, Zn shows only one oxidation state ( + 2).

Question 13.
Show different oxidation states of 3d-series of transition elements.
Answer:
The following table shows, different oxidation states of 3d-series of transition elements.

Question 14.
Write oxidation states and outer electronic configuration of first transition series elements.
Answer:
Oxidation states of first transition series elements

Question 15.
Zinc shows only one oxidation slate. Explain.
Answer:

• The electronic conliguration of zinc is, ₃₀Zn Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹⁰ 4s² or [Ar] 3d¹⁰ 4s².
• Due lo loss of two electrons from 4s suhshell Zn shows oxidation state +2. with elcctronic configuration. [Ar] ¹⁸3d¹⁰.
• Since Zn⁺² acquires an extra stability of completely fIlled 3d¹⁰ orbital. it shows only one oxidation state + 2.

Question 16.
Why is manganese more stable in the + 2 state than the + 3 state and the reverse is true for iron?
Answer:

• The electronic configuration of Mn is ₂₅Mn [Ar] 3d⁵ 4s²
• In + 2 and + 3 oxidation states, the electronic configuration of Mn is, Mn²⁺ [Ar] 3d⁵ and Mn³⁺ [Ar] 3d⁴
• Since half-filled d-orbital (3d⁵) has more stability and lower energy than 3d⁴, Mn²⁺ is more stable than Mn³⁺.
• The electronic configuration of Fe is ₂₆Fe [Ar] 3d⁶ 4s² In + 2 and + 3 oxidation states of Fe, the electronic configuration is, Fe²⁺ [Ar] 3d⁶ and Fe³⁺ [Ar] 3d⁵ Since half-filled orbital is more stable, + 3 state of Fe is more stable than + 2 state.

Question 17.
What are the electronic configurations of various ions of 3d-elements?
Answer:
Electronic configuration of various ions of 3d elements

Question 18.
Scandium shows only two oxidation states. Explain.
Answer:
Scandium has electronic configuration, ₂₁Sc : Is², 2s², 2p⁶, 3s², 3p⁶, 3d¹, 4s² Sc shows only two oxidation states namely + 2 and + 3.

• Due to the loss of two electrons from the 4s-orbital, Sc acquires + 2 oxidation state Sc^{2 +} : Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹.
• Due to the loss of one more electron from the 3d-orbital, it acquires + 3 oxidation state with the extra stability of an inert element ₁₈Ar. Sc⁺³ : Is² 2s² 2p⁶ 3s² 3p⁶.
• Since Sc³⁺ acquires extra stability of inert element [Ar]¹⁸, it does not form higher oxidation state.

Question 19.
Write different oxidation states of iron.
OR
Write the electronic configurations of
(i) Fe
(ii) Fe²⁺ and
(iii) Fe³⁺.
Answer:
Oxidation states of iron are +2, +3, +4, +5, +6.
(i) ₂₆Fe : ls²2s²2p⁶3s²3p⁶3d⁶4s²
(ii) Fe²⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁶
(iii) Fe³⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵.

Question 20.
Explain different oxidation states of chromium.
Answer:

• The observed electronic configuration of chromium is, ₂₄Cr [Ar] 3d⁵ 4s¹.
• Different possible oxidation states of Cr are 4-1 (3d⁵), + 2 (3d⁴), + 3 (3d³), + 4 (3d²), + 5 (3d¹) and + 6 (3d°).
• Although in + 1 state, Cr gets extra stability of half-filled 3d⁵-orbital, it does not exhibit + 1 state in common except with pyridine.
• Cr⁺² has few stable salts like CrCl₂, CrSO₄ while Cr⁺³ forms very stable salts like CrCl₃.
• Cr⁺⁴ and Cr ^{+ 5} are unstable oxidation states.
• Cr⁺⁶ is the most stable state due to inert gas [Ar] electronic configuration and form the salts like K₂Cr₂O₇.

Question 21.
Manganese shows variable oxidation states. Give reasons.
Answer:

• Manganese (₂₅Mn) has electronic configuration. ₂₅Mn [Ar]¹⁸ 3d⁵ 4s².
• Mn has stable half-filled d-subshell.
• Due to a small difference in energy between 3d and 4s-orbitals, Mn can lose or share electrons from both the orbitals, hence shows variable oxidation states.
• Mn shows oxidation states ranging from + 2 to + 7.

Question 22.
Write the different oxidation states of manganese. Why is + 2 oxidation state of manganese more stable than Mn³⁺?
Answer:

• The different oxidation states of Mn are +2, +3, +4, +5, + 6 and +7.
• The electronic configuration of Mn is Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵ 4s²
• + 2 oxidation state is very stable due to higher stability of half-filled 3d orbital.
• Mn³⁺ has electronic configuration, ls²2s² 2p⁶3s²3p⁶3d^A which is less stable.

Question 23.
Write the physical properties of first transition series.
Answer:
Physical properties of first transition series :

• All transition elements of the first series are metals.
• Except Zn, they are very hard and have low volatility.
• They show characteristic properties of metals. They are lustrous, malleable and ductile.
• They are good conductors of heat and electricity.
• They have high melting points and boiling points.
• Except Zn and Mn, they have one or more typical metallic structures at normal temperatures.

Question 24.
Which elements in the transition elements, 3d-series has
(i) the lowest density
(ii) the highest density?
Answer:
In 3d transition elements,
(i) Scandium (Sc) has lowest density and
(ii) Zinc (Zn) has the highest density.

Question 25.
Explain the variation in density of d-block elements.
Answer:
The densities of d-block elements are higher than 5-block elements due to higher nuclear charge which results in reduction in atomic size.

Question 26.
Explain the variation in melting points of the transition elements.
Answer:

1. All transition elements are metals and the strength of metallic bonding increases as the number of unpaired electrons increases.
2. In transition elements as atomic number increases, the number of unpaired electrons increases from (n – 1)d¹ to (n – 1 )d⁵.
   For example in 3d-series, melting points increase from ₂₁Sc to ₂₄Cr in 4d-series from ₃₉Y to ₄₂Mo, and in 5d-series from ₇₂Hf to ₇₄W.
3. After (n – l)d⁵ electronic configuration, the electrons start pairing, hence the number of unpaired electrons decrease, hence metallic character, melting points decrease from (n-1 )d6 to (n – 1)d¹⁰.
4. In all transition series the melting point increases steadily up to d⁵ configuration and after this melting point decreases regularly.
   

Question 27.
The first ionisation enthalpies of third transition series elements are much higher than those of the elements of first and second transition series. Explain.
Answer:

1. Third transition series elements have electronic configuration, 4f¹⁴ 5d^{1 – 10} 6s².
2. Thus, atoms of third series elements possess filled 4f-orbitals.
3. 4f-orbitals due to their diffused shape, exhibit poor shielding effect and give rise to lanthanide contraction. Hence the valence electrons experience greater nuclear attraction and greater amount of energy is required to ionise the elements of third transition series namely (H_f to Au).
4. Therefore the ionisation enthalpies of third transition series elements are much higher than those of the first and second transition series.

Question 28.
Explain the metalic character of transition metals.
Answer:

• All the transition elements are metals.
• They are hard, lustrous, malleable, ductile and they have high tensile strength.
• They have high melting points and boiling points.
• Their metallic character is due to vacant or partially filled (n – 1) d-orbitals, and they involve both metallic and covalent bonding.
• Since the strength of metallic bonds depends upon the number of unpaired electrons, it increases up to middle i.e., up to (n – 1 )d⁵, hence accordingly melting points and boiling points also increase.
• After (n – l)d⁵ configuration, the electrons start pairing, hence the metallic strength, melting points and boiling points decrease with the increase in atomic number.

Question 29.
How does metallic character vary in 3d transition elements?
Answer:

1. In 3d-series elements as atomic number increases from scandium (Sc [Ar]¹⁸ 3d¹ 4s²) the number of unpaired electrons increases up to 3d⁵ in chromium.
2. As the number of unpaired electrons increases, the metallic character increases, hence the melting points and boiling points increase from ₂₁Sc(3d¹) to ₂₄Cr (3d⁵).
3. After chromium the number of unpaired electrons goes on decreasing due to the pairing of electrons, hence metallic character, melting points and boiling points decrease from ₂₅Mn to ₂₉Cu.
4. Zinc has all electrons paired, hence it is soft, has a low melting and boiling points.

Question 30.
Which are the common arrangement of the atoms in the structure of transition metals?
Answer:
Most of the transition metals have simple hexagonal closed packed (hep), cubic closed packed (ccp) or body centred cubic (bcc) lattices.

Question 31.
Why do the compounds of transition metals exhibit magnetic properties?
Answer:
The compounds of transition metals exhibit magnetic properties due to the presence of unpaired electrons in their atoms or ions.

Question 32.
What is the cause of paramagnetism and ferromagnetism?
Answer:
Paramagnetism and ferromagnetism is due to the presence of unpaired electrons in species.

Question 33.
When does species become diamagnetic?
Answer:
When there is no unpaired electron, i.e. all electron spins are paired, the species become diamagnetic.

Question 34.
How do metals Fe, Co, Ni acquire permanent magnetic moment?
Answer:
The transition metals Fe, Co and Ni are ferromagnetic. When the magnetic field is applied, all the unpaired electrons in these metals (and their compounds) align in the direction of the applied magnetic field. Due to this the magnetic susceptibility is enhanced and these metals can be magnetised, that is, they acquire permanent magnetic properties.

Question 35.
In which oxidation state, is vanadium diamagnetic?
Answer:

• The electronic configuration of vanadium is, ₂₃V [Ar] 3d³ 4s².
• In +5 oxidation state, the electronic configuration is, V⁵⁺ [Ar].
• Since in V⁵⁺ state, vanadium has all electrons paired, it is diamagnetic.

Question 36.
How is a magnetic moment expressed?
Answer:
The magnetic moment is expressed in Bohr magneton (B.M.). It is denoted by μ.

Question 37.
What is Bohr magneton (B.M.)?
Answer:
Bohr magneton (B.M.) is a unit of magnetic moment :
\(1 \mathrm{~B} . \mathrm{M} .=\frac{e h}{4 \pi m_{\mathrm{e}} c}\)
where, h : Planck’s constant (h = 6.626 x 10^-34 Js)
e : electronic charge (1.60218 x 10^-19 C)
me : mass of an electron (9.109 x 10^-31 kg)
c : velocity of light. (2.998 x 10⁸ ms^-1)

Question 38.
Explain the magnetic properties of transition (or d-block) elements.
Answer:

• Most of the transition metal ions and their compounds are paramagnetic in nature due to the presence of one or more unpaired electrons in their (n – 1)d-orbitals. Hence they are attracted in the magnetic field.
• As the number of unpaired electrons increases from 1 to 5 in J-orbitals, the paramagnetic character and magnetic moment increase.
• The transition elements or their ions having all electrons paired are diamagnetic and they are repelled in the magnetic field.
• Metals like Fe, Co and Ni possess very high paramagnetism and acquire permanent magnetic moment hence they are ferromagnetic.

Question 39.
Explain the effective magnetic moment of the species.
Answer:

• The magnetic moment in the species arises due to the presence of unpaired electrons.
• The magnetic moment depends upon the sum of orbitals and spin contribution for each unpaired electron present in the species.
• In transition metal ions, the contribution of orbital magnetic moment is suppressed by the electrostatic field of other atoms, molecules or ions surrounding the metal ion in the compound.
• Hence the net or effective magnetic moment arises mainly due to spin of electrons. The effective magnetic moment μ_eff, of a paramagnetic substance is given by 1 spin only’ formula represented as, \(\mu=\sqrt{n(n+2)}\) B.M. where n is the number of unpaired electrons.

Question 40.
What is the importance of magnetic moment (μ)?
Answer:

• From the measurements of the magnetic moment (μ) of the species or metal complexes of the first row of transition elements, the number of unpaired electrons can be calculated with the spin-only formula.
• As magnetic moment is directly related to the number of unpaired electrons, value of μ will vary directly with the number of unpaired electrons.
• In 2nd and 3rd transition series, orbital angular moment is significant. Hence spin-only formula for the complexes of 2nd and 3rd transition series is not useful.

Question 41.
Calculate the magnetic moment of the following species :
(1) Cr³⁺
(2) Co
(3) Co³⁺
(4) Cu^{2 +}.
Answer:

Question 42.
Explain : A slight difference in the calculated and observed values of magnetic moments.
Answer:
Magnetic moments are determined experimentally in solution or in solid state where the central atom or ion is hydrated or bound to ligands. Hence a slight difference is observed in calculated and experimentally obtained values of magnetic moment (μ).

Question 43.
Calculate the magnetic moment of a divalent ion in an aqueous solution, if its atomic number is 24.
Answer:
(1) The electronic configuration of divalent inri M²⁺ having atomic number 24 is.

The ion has number of unpaired electrons. n = 4.
By spin only’ formula, the magnetic μ is given by, \(\mu=\sqrt{n(n+2)}=\sqrt{4(4+2)}=4.90 \mathrm{~B} . \mathrm{M}\)
(This M²⁺ ion is Cr²⁺ ion)

Question 44.
When does a substance appear coloured?
Answer:
A substance appears coloured when it absorbs a portion of visible light. The colour depends upon the wavelength of absorption in the visible region of electromagnetic radiation.

Question 45.
Why do the d-block elements form coloured compounds?
Answer:

• Compounds (or ions) of many d-block elements or transition metals are coloured.
• This is due to the presence of one or more unpaired electrons in (n – 1) d-orbital. The transition metals have incompletely filled (n – 1) cf-orbitals.
• The energy required to promote one or more electrons within the d-orbitals involving d-d transitions is very low.
• The energy changes for d-d transitions lie in visible region of electromagnetic radiation.
• Therefore transition metal ions absorb the radiation in the visible region and appear coloured.
• Colour of ions of d-block elements depends on the number of unpaired electrons in (n – 1) d-orbital. The ions having equal number of unpaired electrons have similar colour.
• The colour of metal ions is complementary to the colour of the radiation absorbed.

Question 46.
How is complementary colour of a compound identified?
Answer:

1. The transition metal ions absorb the radiation in the visible region and appeared coloured.
2. Metal ion absorbs radiation of certain wavelength from the visible region. Remaining light is transmitted and the observed colour corresponds to the complementary colour of the light observed.
3. The complementary colour can be identified (with the diagram given).

For example if red colour is absorbed then transmitted complementary colour is green.

Question 47.
Write outer electronic configuration (d-orbital) and colour of 3d-series of transition metal ions.
Answer:
Colour of 3d-transition metal ions

Question 48.
Mention the factors on which the colour of a transition metal ion depends.
Answer:
The factors on which the colour of transition metal ion depends are as follows :

• The presence of incompletely filled d-orbitals in metal ions. (The compounds with the configuration d° and d’0 are colourless.)
• The presence of unpaired electrons in d-orbitals.
• d → d transitions of electrons due to absorption of radiation in the visible region.
• Nature of groups (anions) (or ligands) linked to the metal ion in the compound or a complex.
• Type of hybridisation in metal ion in the complex.
• Geometry of the complex of the metal ion.

Question 49.
Give reasons : Zinc salts are colourless.
Answer:

• Colour of the ions of d-block elements depends on the number of unpaired electrons in (n – 1) d-orbitals.
• Zinc forms salts of Zn²⁺ ions.
• The electronic configuration of Zn⁺² is [Ar] 3d¹⁰.
• Since Zn⁺² does not have unpaired electrons in 3d-orbital, d→d transition cannot take place, hence, Zn⁺² ions form colourless salts.

Question 50.
Explain : The compounds of Cu(II) are coloured.
Answer:

• The electronic configuration of ₂₉Cu [Ar] 3d¹⁰ 4s¹ and Cu²⁺ [Ar] 3d⁹.
• In copper compounds Cu²⁺ ions have incompletely filled 3d-orbital (3d⁹).
• Due to the presence of one unpaired electron in 3 d-orbital, Cu²⁺ ions absorb red light from visible spectrum and emit blue radiation due to d → d transition. Therefore, copper compounds are coloured.

Question 51.
Explain why the solution of Ti³⁺ salt is purple in colour.
OR
Why is Ti³⁺ coloured? (atomic number Ti = 22)
Answer:

• Ti²⁺ ions in the aqueous solution exist in the hydrated complex form as [Ti(H₂O)₆]²⁺.
• The electronic configuration of Ti is, ₂₂Ti [Ar]¹⁸ 3d² 4s² and Ti³⁺ [Ar]¹⁸ 3d¹. Hence in complex, Ti³⁺ has one unpaired electron in 3d subshell.
• Initially, the 3d electron occupies lower energy d-orbital (in t_2g-orbitals).
• On the absorption of radiations of about 500 nm in yellow green region by a complex, 3d¹ electron is excited to the higher energy d-orbital (e_g-orbitals).
• When the electron returns back to the lower energy d-orbital (t_2g), it transmits radiation of complementary colour i.e. red blue or purple colour. Hence, the solution of hydrated Ti³⁺ is purple.

Question 52.
What will be the colour of Cd²⁺ salts? Explain.
Answer:

• The electronic configuration of, ₄₈Cd [Kr]³⁶ 3d¹⁰ 5s² and Cd²⁺ [Kr]³⁶ 3d¹⁰.
• Cd²⁺ ions have completely filled 3d subshell and there are no unpaired electrons in 3d-orbital.
• Hence d → d transition is not possible.
• Therefore, Cd²⁺ ions do not absorb radiations in the visible region and the salts of Cd²⁺ ions are colourless (or white).

Question 53.
Indicate which of the ions may be coloured- V³⁺, Sc³⁺, Cr³¹, Cu²⁺, Ti³⁺, Cu⁺
Answer:

• V³⁺ [Ar]¹⁸ 3d²-((green)
  Since there are two unpaired electrons available, for d → d transition, it will show a Green colour.
• Sc³⁺ [Ar]¹⁸ 3d° (colourless/white).
  Since there are no unpaired electrons in the 3d subshell, it will not show colour.
• Cr³⁺ [Ar]¹⁸ 3d³ – (violet)
  There are three unpaired electrons in the 3d subshell, hence due to d → d transition, it will show violet colour.
• Cu²⁺ [Ar]¹⁸ 3d⁹ (blue)
  It has one unpaired electron that can undergo a d → d transition, hence it will show the colour blue.
• Ti³⁺ [Ar]¹⁸ 3d¹ (purple)
  It has one unpaired electron that can undergo a d → d transition, hence it will show the colour purple.
• Cu¹⁺ [Ar]¹⁸ 3d¹⁰ (colourless)
  There are no unpaired electrons in the 3d subshell, hence it will not show colour.

Question 54.
Explain why is cobalt chloride pink in colour when dissolved in water but turns deep blue when treated with concentrated hydrochloric acid.
Answer:

• The electronic configuration of ₂₇Co : [Ar] 3d¹4s² and Co²⁺ [Ar] 3d¹.
• When dissolved in water cobalt chloride, Co²⁺ forms pink complex, [Co(H₂O)₆]²⁺.
• The complex has octahedral geometry.
• Due to absorption of radiation in the visible region and d – d transition, it forms pink coloured solution.
• When CoCl₂ solution is treated with concentrated HCl solution it turns deep blue.
• This change is due to the formation of another complex, [CoC1₄]²⁺ which has a tetrahedral geometry.
• Thus due to a change in geometry of the complex formed the colour of the solution changes from pink to deep blue.

Question 55.
Explain the catalytic properties of the rf-block or transition metals.
Answer:

• d-block elements or transition metals and their compounds or complexes influence the rate of a chemical reaction and hence act as catalysts.
• In homogeneous catalysis a catalyst forms an unstable intermediate compound which decomposes into products and regenerates the catalyst. But transition metals involve heterogeneous catalysis.
• The transition metals have incompletely filled d-subshells which adsorb reactants on the surface and provide a large surface area for the reactants to react.
• Since transition metals have variable oxidation states they are very good catalysts.
• Hence, compounds of Fe, Co, Ni, Pt, Pd, Cr etc are used as catalysts in many reactions.

Question 56.
Explain the use of different transition metals as catalysts.
Answer:
The transition metals are very good catalysts.

• MnO₂ is used as a catalyst in the decomposition of KClO₃.
  
• In the manufacture of ammonia by Haber’s process, Mo/Fe is used as a catalyst.
  
• In the synthesis of gasoline by Fischer Tropsch process, Co-Th alloy is used as a catalyst.
• Finely divided Ni (formed by reduction of heated oxide in hydrogen) is very efficient catalyst in hydrogenation of ethene to ethane at 140 °C.
  
• Commercially, hydrogenation with Ninkel as catalyst is used to convert inedible oils into solid fat for the production of margarine.
• In the contact process of industrial production of sulphuric acid, sulphur dioxide and oxygen (from air) react reversibly over a solid catalyst of platinised asbestos.
  
• Carbon dioxide and hydrogen are formed by the reaction of carbon monoxide and steam at 500 °C with Fe-Cr catalyst.
  

Question 57.
What are interstitial compounds of transition metals?
Answer:

• The interstitial compounds of the transition metals are those which are formed when small atoms like H, C or N are trapped inside the interstitial vacant spaces in the crystal lattices of the metals.
• Sometimes, sulphides and oxides are also trapped in the crystal lattices of transition elements.
• Presence of these elements in the crystal lattices of metals provide new properties to the metals.

Question 53.
Give one example of an interstitial compound.
Answer:
Steel and cast iron are examples of interstitial compounds of carbon and iron.

Question 54.
Give examples of interstitial compounds where the property of the transition metal is changed.
Answer:
Steel and cast iron are interstitial compounds of carbon and iron (carbides of iron). Due to the presence of carbon, the malleability and ductility of iron is reduced while its tenacity increases.

Question 55.
What are the properties of the interstitial compounds of transition metals?
Answer:

• The chemical properties of the interstitial compounds are the same as that of parent transition metals.
• They are hard and show the metallic properties like electrical and thermal conductivity, lustre, etc.
• Since metal-non-metal bonds in the interstitial compounds are stronger than metal-metal bonds in pure metals, the compounds have very high melting points, higher than the pure metals.
• They have lower densities than the parent metal.
• The interstitial compounds containing hydrogen (i.e., hydrides of metals) are powerful reducing agents.
• The compounds containing carbon, hence behaving as carbides, are chemically inert and extremely hard like diamond.
• In these compounds, malleability and ductility are changed. For example steel and cast iron.

Question 56.
What are interstitial compounds? Why do these compounds have higher melting points than corresponding pure metals?
Answer:

1. The interstitial compounds of the transition metals are those which are formed when small atoms like H, C or N are trapped inside the interstitial vacant spaces in the crystal lattice of the metals.
2. Since metal-nonmetal bonds in the interstitial compounds are stronger than metal-metal bonds in pure metals, the compounds have very high melting points, higher than the pure metals.

Question 57.
Explain the formation of alloys of transition metals.
Answer:

• The transition metals form a large number of alloys among themselves, which are hard with high melting points.
• During alloy formation atoms of one metal are distributed randomly in the lattice of another metal.
• The metals with similar atomic radii and similar properties readily form alloys.
• These alloys have industrial importance.
• The alloys can be ferrous alloys or nonferrous alloys.

Question 58.
How are the transition metal alloys classIfied?
Answer:
The transition metal alloys are classified into

• Ferrous alloys
• Nonferrous alloys.

Question 59.
Explain what are
(1) ferrous alloys and
(2) nonferrous alloys.
Answer:

1. Ferrous alloys: In ferrous alloys, atoms of other elemems are distributed randomly in atoms of iron in the mixture. As the percentage of iron is more in these alloys, they are termed as ferrous alloys. For expamle : nickel steel, chromium steel, stainless steel, (All steels have abot 2% carbon)
2. onferrous alloys : These are formed by mixing atoms of transition metal other than iron with a non transition elemeni. For example, brass is an alloy of Cu and Zn. Bronze is an alloy of Cu and Sn.

Question 60.
What are the uses of alloys?
Answer:

Name of alloy	Important use in industry
(1) Bronze (Cu + Sn)	In making statues, medals and trophies (as it is tough, strong and corrosion-resistant)
(2) Cupra-nickel (Cu + Ni)	In making machinery parts of marine ships, boats, marine conden­ser tubes.
(3) Stainless steel	In the construction of the outer fuselage of ultra-high-speed aircraft.
(4) Nichrome : (Ni+ Cr in the ration 80 : 20)	For gas turbine engines.
(5) Titanium alloys	For ultra-high-speed flight, fireproof bulkheads and exhaust shrouds (as they withstand high temperatures).

Question 61.
Write the preparation of potassium permanganate.
Answer:
Potassium permanganate (KMnO₄) is prepared in the following steps,

(1) Chemical Oxidation : When finely divided manganese dioxide (Mn0₂) is heated strongly with fused caustic potash (KOH) and an oxidising agent potassium chlorate (KCIO₃), dark green potassium manganate (K₂MnO₄) is obtained. (In neutral or acidic medium K₂MnO₄ disproportionates.)

The liquid is filtered through glass wool or sintered glass and evaporated. Potassium manganate crystallises as small, blackish crystals.

(2) Oxidation of K₂MnO₄ by
(i) Electrolytic oxidation : An alkaline solution of manganate ion is electrolysed between iron electrodes separated by a diaphragm. Manganate ion \(\left(\mathrm{MnO}_{4}^{2-}\right)\) undergoes oxidation at anode forming permanganate ion \(\left(\mathrm{MnO}_{4}^{-}\right)\). Oxygen evolved at anode converts \(\left(\mathrm{MnO}_{4}^{2-}\right)\) to \(\left(\mathrm{MnO}_{4}^{-}\right)\).

The overall reaction is as follows :
2K₂MnO₄ + H₂O + [O] → 2KMnO₄ + 2KOH

The electrolytic solution is filtered and evaporated to obtain deep purple black crystals of KMn0₄.

(ii) By passing CO₂ through the solution of K₂MnO₄ :
3K₂MnO₄ + 4CO₂ + 2H₂O → 2KMnO₄ + MnO₂ + 4 KHCO₃

Question 62.
What is meant by the disproportionation of an oxidation state? Explain giving example of manganese.
Answer:

1. Disproportionation reaction is a chemical reaction in which atom or an ion of an element forms two or more species having different oxidation states, one lower and one higher.
2. Manganese (Mn) shows different oxidation states + 2 to +7.
3. When one oxidation state, lower or higher oxidation state becomes unstable as compared to another oxidation state, it undergoes disproportionation reaction.
4. For example, + 6 oxidation state of Mn is less stable than + 7 and + 4.
   • Hence, in acidic medium \(\mathrm{Mn}^{6+} \text { in } \mathrm{MnO}_{4}^{2-}\) undergoes disproportionation reaction.
     
   • In neutral medium green K₂MnO₄ disproportionates to KMn04 and MnO₂.
     

Question 63.
Give examples of oxidising reactions of KMnO₄.
Answer:
(1) KMnO₄ in acidic medium :

(2) KMnO₄ in neutral or alkaline medium in neutral or weakly alkaline medium :
(i) Iodide is oxidised to iodate ion.

(ii) Thiosulphate ion is oxidised to sulphate ion.

(iii) Manganous salt is oxidised to MnO₂.

Question 64.
Balance the following equations :
KI + KMnO₄ + H₂SO₄ → K₂SO₄ + MnSO₄ + 8H₂O + I₂
H₂S + KMnO₄ + H₂SO₄ → K₂SO₄ + MnSO₄ + H₂O + S.
Answer:
10 KI + 2KMnO₄ + 8H₂SO_{4 →} 6K₂SO₄ + 2MnSO₄ + 8H₂O + 5I₂
5H₂S + 2KMnO₄ + 3H₂SO₄ → K₂SO₄ + 2MnSO₄ + 8H₂O + 5S.

Question 65.
Give the uses of potassium permanganate.
Answer:
Uses of potassium permanganate :

• as an antiseptic.
• as a powerful oxidising agent in laboratory and industry.
• in the detection of unsaturation in organic compounds in the laboratory. (Baeyer’s reagent, alkaline KMnO₄).
• for detecting halides in qualitative analysis.
• in volumetric analysis for the estimation of H₂O₂, FeSO₄ etc.)

Question 66.
Write the formula of chromite ore.
Answer:
FeOCr₂O₃.

Question 67.
How is potassium dichromate manufactured from chromite ore (FeOCr₂O₃)?
Answer:
Manufacture of potassium dichromate (K₂Cr₂O₂) from chrome iron ore (FeOCr₂O₃) involves following steps :
(1) Concentration of ore : The chromite ore (FeOCr₂O₃) is powdered and washed with current of water.
(2) Conversion of chromite ore into sodium chromate : The concentrated ore is mixed with anhydrous sodium carbonate (Na₂CO₃) and a flux of lime in excess air and heated in a reverberatory furnace.

Sodium chromate (Na₂CrO₄) formed in the reaction is then extracted with water so that Na₂CrO₄ dissolves into solution and insoluble substances separate out.
(3) Conversion of Na2CrO₄ into sodium dichromate (Na₂Cr₄O₇) : Na₂CrO₄ solution is acidified with concentrated H₂SO₂, so that sodium chromate is converted into sodium dichromate.

Less soluble sodium sulphate crystallises out as Na₂SO₄.10H₂O. which is filtered off.
(4) Conversion of Na₂Cr₂O₇ into K₂Cr₂O₇ : Concentrated solution of Na₂Cr₂O₇ is treated with KCl on by double decomposition, K₂Cr₂O₇ is obtained.
Na₂Cr₂O₇ + 2KCl → K₂Cr₂O₇ + 2NaCl
On concentrating and cooling the solution, less soluble orange coloured K₂Cr₂O₇ crystallises out which is filtered and purified by recrystallisation.

Question 68.
What happens when hydrogen sulphide gas (H₂S) is passed through acidified K₂Cr₂O₇ solution?
Answer:
When hydrogen sulphide (H₂S) gas is passed into solution of K₂Cr₂O₇, H₂S is oxidised to a pale yellow solid (precipitate) of sulphur. Orange coloured solution becomes green due to formation of chromic sulphate (green coloured).

In the reaction, H₂S is oxidised to S and K₂Cr₂O₇ is reduced to Cr₂(SO₄)₃.

Question 69.
What are the common physical properties of d-block elements?
Answer:
The common physical properties of d-block elements are :

• All d-block elements are lustrous and shining.
• They are hard and have high density
• They have high melting and boiling points.
• They are good electrical and thermal conductors.
• They have high tensile strength and malleability.
• They can form alloys with transition and nontransition elements
• Many metals and their compounds are paramagnetic.
• Most of the metals are efficient catalysts.

Question 70.
What are the common chemical properties of d-block elements?
Answer:
The common chemical properties of the d-block elements are :

• All d-block elements are electropositive metals.
• They exhibit variable oxidation states and form coloured salts and complexes.
• They are good reducing agents.
• They form insoluble oxides and hydroxides.
• Iron, cobalt, copper, molybdenum and zinc are biologically important metals.
• They catalyse biological reactions.

Question 71.
Give examples to show that elements of first row of d-block elements differ from second and third row with respect to the stabilisation of higher oxidation states.
Answer:

• Highest oxidation state for the first row element is + 7 as in Mn.
  For the second row, the highest oxidation state is + 8 as in Ru (RuO₄).
  For the third row, the highest oxidation state is + 8 as in Os (OsO₄).
• Compounds of Mo(V) of 2nd row and W(VI) of 3rd row of transitional elements are more stable than Cr(VI) and Mn (VIII) of first row elements.

Question 72.
How do metals occur in nature?
Answer:
In nature, few metals occur in earth’s crust in free state or native state while other metals occur in the combined form.
(1) Elements in free state or native state : The metals which are non-reactive with air, water, CO₂ and non-metals occur in free state or native state. For example, gold, platinum, palladium occur in free state. Metals like Cu, Ag and Hg occur partly in the free state.

(2) Combined form : The metals which are reactive occur in the combined state with other elements forming compounds like oxides, sulphides, sulphates, carbonates, silicates, etc.

Question 73.
What are minerals?
Answer:
Minerals : They are naturally occurring chemical substances in the earth’s crust containing metal in free state or in combined form and obtainable from mining are called minerals. For example, haematite Fe203, galena PbS, etc.

Question 74.
What are ores?
Answer:
Ores : The minerals containing a high percentage of metals from which metals can be profitably extracted are called ores.
[Note : Every ore is a mineral but every mineral is not an ore.]

Question 75.
Write names of minerals and ores of Iron, Copper and Zinc.
Answer:

Metals	Mineral	Ore
Iron	Haematite Fe2O3 Magnetite Fe3O4 Limonite 2Fe2O3, 3H2O Iron pyrites FeS2 Siderite FeCO3	Haematite
Copper	Chalcopyrite CuFeS2 Chalcocite Cuprite Cu2O	Chalcopyrite Chalcocite
Zinc	Zinc blende ZnS Zincite ZnO Calamine ZnCO3	Zinc blende

Question 76.
What is metallurgy?
Answer:
Metallurgy : The process of extraction of metal in a pure state from its ore is called metallurgy.

Question 77.
Define the following:
(1) Pyrometallurgy
(2) Hydrometallurgy
(3) Electrometallurgy.
Answer:

1. Pyrometallurgy : It is a process of extraction of metal from metal oxide from concentrated ore by reduction with a suitable reducing agent like carbon, hydrogen, aluminium, etc. at high temperature.
2. Hydrometallurgy : It is a process of extraction of metals by converting their ores into aqueous solutions of metal compounds and reducing them by suitable reducing agents.
3. Electrometallurgy : It is a process of extraction of highly electropositive metals like Na, K, Al, etc. by electrolysis of fused compounds of the metals where metal ions are reduced at cathode forming metals.

Question 78.
What is gangue?
Answer:
Gangue : The earthly and undesired impurities of various substances like sand (SiO₂), metal oxides, etc. present in the ore are called gangue or matrix.

Question 79.
Define concentration of an ore.
Answer:
Concentration : A process of removal of gangue or unwanted impurities from the ore is called concentration of an ore. It is also called benefaction or dressing of an ore.

Question 80.
What are common methods of concentration of an ore?
Answer:
The concentration of an ore involves different methods depending upon the differences in physical properties of compounds or the metal present and the nature of the gangue.

The common methods of concentration of ore are as follows :

1. Gravity separation or hydraulic washing :
   This can be carried out by two processes as follows :
   • Hydraulic washing by using Wilfley’s table method
   • Hydraulic classifier methods.
2. Magnetic separation
3. Froth floatation process.
4. Leaching.

The method depends upon the nature of ore.

Question 81.
What is leaching?
Answer:
Leaching : ft is a (chemical) process used in the concentration of an ore by extracting soluble material from an insoluble solid by dissolving in a suitable solvent. This method is used in the concentration process of ores of Al, Ag, Au, etc.

Question 82.
What is roasting of an ore?
Answer:
Roasting : It is a process of strongly heating a concentrated ore in the excess of air below melting point of metal, to convert it into oxide form. It is used for a sulphide ore. For example, ZnS ore on roasting forms ZnO.

Question 83.
Write an equation to show how zinc blende (ZnS) is converted to ZnO.
Answer:
When zinc blende is roasted, it is converted to ZnO.
\(\mathrm{ZnS}+\mathrm{O}_{2} \stackrel{\Delta}{\longrightarrow} \mathrm{ZnO}+\mathrm{SO}_{2}\)

Question 84.
Explain the term : Smelting
Answer:
Smelting : The process of extraction of a metal from its ore by heating and melting at high temperature is called smelting. Reduction of ore is carried out during smelting.

Question 85.
What is calcination?
Answer:
Calcination is a process in which the ore is heated to a high temperature below the melting point of the metal in the absence of air or limited supply of air in a reverberatory furnace.

It is generally used for carbonate and hydrated oxides to convert them into anhydrous oxides.

Question 86.
Define the terms :
(1) Flux
(2) Slag
Answer:
(1) Flux : A flux is a chemical substance which is added to the concentrated ore during smelting in order to remove the gangue or impurities by chemical reaction forming a fusible mass called slag.
(2) Slag : It is a waste product formed by combination of a flux and gangue (or impurities) during the extraction of metals by smelting process.

Iron is the fourth most abundant element in the earth’s crust.

Question 87.
What is the composition of haematite ore?
Answer:
Composition of Haematite ore is Fe2O₃ + SiO₂ + Al₂O₃ + phosphates

Question 88.
Which impurities (gangue) are present in haematite ore?
Answer:
SiO₂ and Al₂O₃ are the impurities present in the haematite ore.

Question 89.
Which reducing agents are used to reduce haematite ore into metallic iron?
Answer:
Haematite ore is reduced using coke and CO. Carbon in the coke is converted to carbon monoxide. Carbon and carbon monoxide together reduce Fe203 to metallic iron.

Fe₂O₃ + 3C → 2Fe + 3CO.
Fe₂O₃ + 3CO → 2Fe + 3CO₂.

Question 90.
Why is limestone used in the extraction of iron?
Answer:

• The ore of iron contains acidic gangue or impurity of silica, SiO₂.
• To remove silica gangue, basic flux like calcium oxide CaO, is required, which is obtained from the decomposition of limestone, CaCO₃. \(\mathrm{CaCO}_{3} \stackrel{\Delta}{\longrightarrow} \mathrm{CaO}+\mathrm{CO}_{2}\)
• Silica reacts with CaO and forms a fusible slag of CaSiO₃.
  \(\mathrm{SiO}_{2}+\mathrm{CaO} \stackrel{\Delta}{\longrightarrow} \mathrm{CaSiO}_{3}\)

Therefore in the extraction of iron, lime is used.

Question 91.
Name the furnace in which iron is extracted from Haematite ore.
Answer:
Extraction of iron is carried out in Blast furnace.

Question 92.
Explain the extraction of iron from haematite.
Answer:
Iron is mainly extracted from haematite, Fe₂O₃ by reduction process.
Haematite ore contains silica (SiO₂), alumina (Al₂O₃) and phosphates as impurity or gangue.

Coke is used for the reduction of ore.

To remove acidic gangue SiO₂, a basic flux CaO is used which is obtained from lime stone CaCO₃.

The extraction process involves following steps :
(1) Concentration of an ore : The powdered ore is concentrated by gravity separation process by washing it in a current of water. The lighter impurities (gangue) are carried away leaving behind the ore.
(2) Roasting : The concentrated ore is heated strongly in a limited current of air. During this, moisture is removed and the impurities like S, As and phosphorus are oxidised to gaseous oxides which escape.

After roasting, the ore is sintered to form small lumps.
(3) Reduction (or smelting) : The roasted or calcined ore is then reduced by heating in a blast furnace.

The blast furnace is a tall cylindrical steel tower about 25 m in height and has a diameter about 5-10m lined with fire bricks inside.

Blast furnace has three parts :

• the hearth,
• the bosh and
• the stack.

At the top, there is a cup and cone arrangement to introduce the ore and at the bottom, tapping hole for withdrawing molten iron and an outlet to remove a slag.

The roasted ore is mixed with coke and limestone in the approximate ratio of 12 : 5 : 3.

A blast of hot air at about 1000 K is blown from downwards to upwards by layers arrangement. The temperature range is from bottom 2000 K to 500 K at the top. The charge of ore from top and the air blast from bottom are sent simultaneously. There are three zones of temperature in which three main chemical reactions take place.

(i) Zone of combustion : The hot air oxidises coke to CO which is an exothermic reaction, due to which the temperature of furnace rises.
C + ^1/2 O₂ → CO ΔH= – 220kJ
Some part of CO dissociates to give finely divided carbon and O₂.
2CO → 2C + O₂
The hot gases with CO rise up in the furnace and heats the charge coming down. CO acts as a fuel as well as a reducing agent.

(ii) Zone of reduction : At about 900 °C, CO reduces Fe₂O₃ to spongy (or porous) iron.
Fe₂O₃ + 3CO → 2Fe + 3CO₂
Carbon also reduces partially Fe₂0₃ to Fe.
Fe₂O₃ + 3C → 2Fe + 3CO

(iii) Zone of slag formation : At 1200 K limestone, CaCO₃ in the charge, decomposes and forms a basic flux CaO which further reacts at 1500 K with gangue (SiO₂, Al₂O₃) and forms a slag of CaSiO₃ and Ca₃AlO₃.
CaCO₃ + CaO + CO₂.
CaO + SiO₂ → CaSiO₃
12CaO + 2Al₂O₃ → 4Ca₃AlO₃ + 3O₂

The slag is removed from the bottom of the furnace through an outlet.

(iv) Zone of fusion : The impurities in ore like MnO₂ and Ca₃(PO₄)₂ are reduced to Mn and P while SiO₂ is reduced in Si. The spongy iron moving down in the furnace melts in the fusion zone and dissolves the impurities like C, Si, Mn, phosphorus and sulphure. The molten iron collects at the bottom of furnace. The lighter slag floats on the molten iron and prevents its oxidation.

The molten iron is removed and cooled in moulds. It is called pig iron or cast iron. It contains about 4% carbon.

Question 93.
Write the reaction involved in the zone of reduction in blast furnace during extraction of iron.
Answer:
Zone of reduction : At about 900 °C, CO reduces Fe₂O₃ to spongy (or porous) iron.
Fe₂O₃ + 3CO → 2Fe + 3CO₂
Carbon also reduces Fe₂O₃ to Fe.
Fe₂O₃ + 3C → 2Fe + 3CO

Question 94
Write reactions involved at different temperatures in the blast furnace.
Answer:

Temperature K	Change taking place in the blast furnace	Reactions
1. 500 K	Haematite ore loses moisture	ore xH2O → ore
2. 900 K	Reduction of ore by CO	Fe2O3 + 3CO → 2Fe + 3CO
3. 1200K	Limestone decomposes	CaCO3 → CaO + CO2
4. 1500K	Reduction of ore by C	Fe2O3 + 3C → 2Fe + 3CO
5. 1600 K	(i) Reduction of FeO by C (ii) Fusion of iron and slag formation	FeO + C → Fe + CO CaO + SiO2 → CaSiO3
6. 2000 K	Combustion of coke	2C + O2 → CO

Question 95.
What is the action of carbon on Fe203 in blast furnace?
Answer:
Fe₂O₃ + 3C → 2Fe + 3CO

Question 96.
What is refining of metals?
Answer:
Refining of metals : The purification of impure or crude metals by removing metallic and nonmetallic impurities is known as refining of metals. H

Question 97.
How is pure iron obtained from crude iron?
Answer:
Pure iron can be obtained by electrolytic refining.

Question 98.
Name the methods of refining of metals.
Answer:
Methods of refining of metals :

• Electrorefining
• Liquefaction
• Distillation
• Oxidation m

Question 99.
What are the factors that govern the choice of extraction technique of metals?
Answer:
The choice of extraction technique is governed by the following factors.

• Nature of ore
• Availability and cost of reducing agent. (Generally, cheap coke is used).
• Availability of hydraulic power.
• Purity of metal required.
• Value of by-products. For example. SO₂ obtained during the roasting of sulphide ores is important for the manufacture of H₂SO₄.

Question 100.
Which are the commercial forms of iron?
Answer:
Commercial forms of iron are :

• Cast iron
• wrought iron
• steel. H

Question 101.
(A) What are f-block elements?
(B) What are inner transition elements?
Answer:
(A)

• Elements in which differentiating electron enters into the pre-penultimate shell the (n – 2) f-orbital are known as f.block elements.
• They include 28 elements with atomic numbers ranging from 58-71 and atomic numbers 90 to 103 collectively.
• There are two f-series or two f-block elements, namely 4f and 5f series.
• The f-block includes two inner transition series namely the lanthanoid series. Cerium (58) to LuteUum (71) or the 4 f-block elements and the actinoid series. Thorium (90) to I.awrencium (103) or the 5f block elements.

(B) f-block elements are called inner transition elements since f-orbital lies much inside the f-orbital in relation to the transition metals, These elements have 1 to 14 electrons in their f-orbital.

Question 102.
What are fIrst inner transition elements?
Answer:

1. 4f-hlock elements are called (first) inner transition elements and have partly filled inner orbitaIs or (4f) orbitais.
2. They have general outer electronic configuration \((n-2) f^{1-14},(n-1) d^{0-1}, n s^{2}\).
3. There are two f-series, namely 4f and 5f series, called lanthanoids and acùnoids respectively.
4. They shos intermediate properties as compared to electropositive s-block elements and electronegative p-block elements. Hence they are called (first) inner transition elements.

Question 103.
What are lanthanoids (or lanthanides)?
OR
What is the lanthanoid series?
Answer:

• Lanthanoids or Lanthanoid series or Lanthanones : The series of fourteen elements from ₅₈Ce to ₇₁Lu in which a differentiating electron enters 4f sub-shell and follows lanthanum is called lanthanoid series and the elements are called lanthanoids.
• They have general electronic configuration, [Xe] 4f^1-14 ,5d^0-1, 6s².
• They follow Lanthanum (Z = 57) in 3d-series.

Question 104.
What are rare earths?
Answer:

• Lanthanoids or 4f-block elements are called rare earths.
• Lanthanoids are never found in free state, and their minerals are not pure.
• They exhibit similar chemical properties hence cannot be extracted and separated by normal metallurgical processes.
• Lanthanoid metals are available on small scale. Therefore they are called rare earths.

Question 105.
Explain the position of lanthanoids in the periodic table.
OR
How is the position of lanthanoids justified?
Answer:

1. Position of Lanthanoids in the periodic table : Group – 3; Period – 6.
2. They interrupt the third transition series of t/-block elements (i.e. 5 d series) in the sixth period.
3. They are 14 elements from ₅₈Ce to ₇₁Lu and their position is in between La and Hf. Since they follow lanthanum, they are called lanthanoids.
4. They are called 4f-series elements and for the convenience, they are placed separately below the main periodic table.
5. The actual position of lanthanoids is in between Lanthanum (Z = 57) and Hafnium (Z = 72).
6. Their position is justified due to following reasons :
   • All these elements have the same electronic configuration in ultimate and penultimate shells, one electron in 5d-orbital and two electrons in 6s-orbital.
   • Group valence of all lanthanoids is 3.
   • All lanthanoids from ₅₈Ce to ₇₁Lu have similar physical and chemical properties.

Question 106.
Explain the meaning of inner-transition series.
Answer:
A series of f-block elements having electronic configuration (n – 2)f^1-14 (n – I) d^0-1 ns² placed separately in the periodic table represents inner transition series. The f-orbitals lie much inside the e/ orbitals.

Since the last electron enters pre-penultimate shell, these elements are inner transition elements.

There are two inner transition series as follows :
4f-series ₅₈Ce → ₇₁Lu
5f-series ₉₀Th → ₁₀₃Lr

Question 107.
Draw a skeletal diagram of the periodic table to show the position of d and/- block elements.
Answer:

Question 108.
What are the properties of lanthanoids?
Answer:

• Lanthanoids are soft metak with silvery white colour, Colour and brightness reduces on exposure to air.
• They are good conductors of heat and electricity.
• Except promethium (P_m), all are non-radioactive in nature.
• The atomic and ionic radii decrease from La to Lu. (Lanthanoid contraction).
• Coordination numbers arc greater than 6.
• They are paramagnetic.
• They become ferromagnetic at lower temperature.
• Their magnetic and optical properties are independent of environment.
• They are called rare earths as their exiractioli was difficult.
• They are abundant in earth’s crust
• All lanthanoids fonn hydroxides which are ionic and basic. l3asicity decreases with atomic number,
• They react with nitrogen to give nitrides and with halogen to give halides.
  
• When heated with carbon at very high temperature give carbides
  

Question 109.
Explain the variations in ionisation enthalpy of lanthanoids.
Answer:

• The first ionisation enthalpy of lanthanoids is nearly same. It is very high for Gd and Yb.
• The ionisation enthalpy increases from first (IE₁] to third (IE₃).

First, second and third ionization enthalpies of lanthanoids in kj/mol

Lanthanoid	IE1	IE2	IE3
La	538.1	1067	1850.3
Ce	528.0	1047	1949
Pr	523.0	1018	2086
Nd	530.0	1034	2130
Pm	536.0	1052	2150
Sm	543.0	1068	2260
Eu	547.0	1085	2400
Gd	592.0	1170	1990
Tb	564.0	1112	2110
Dy	572.0	1126	2200
Ho	581.0	1139	2200
Er	589.0	1151	2190
Tm	596.7	1163	2284
Yb	603.4	1175	2415
Lu	523.5	1340	2022

Question 110.
Give the general electronic configuration of 4f-series elements (OR lanthanoids).
Answer:

• The general electronic configuration of 4f-series elements is, Ln[Xe]⁵⁴ 4f^1-14 5d^0-1 6s² where Ln is a lanthanoid.
• Xenon has electronic configuration, [Xe] : Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹⁰ 4s² 4p⁶ 4d¹⁰ 5s² 5p⁶.
• In lanthanoids, the differentiating electron enters prepenultimate shell, 4f m

Question 111.
What are the important features of the electronic configuration of lanthanoids?
Answer:

1. Lanthanoids show two types of electronic configurations
   (a) an expected or idealized
   (b) an observed electronic configuration.
   In the idealized electronic configuration, the filling of the 4/-orbitals is regular but in the observed configuration, there is the shift of a single electron from 5d to 4/ sub-shell.
2. Lanthanum (57) has an electronic configuration [Xe] 4f° 5d¹6s². It does not have any f-electron.
3. The next incoming electron does not enter the 5d sub-shell but goes to the 4f sub-shell.
4. 14 electrons are progressively filled in the 4f sub-shell as the atomic number increases by one unit from La to Lu.
5. La, Gd and Lu are the only elements which possess one electron in a 5d orbital, while in all other lanthanoids the 5d sub-shell is empty.
6. La-(4f°), Gd-(4f⁷) and Lu-(4f¹⁴) posses extra stability due to their empty, half-filled and completely filled 4f-orbitals respectively.
7. The 4f-electrons in the prepenultimate shell are shielded by the outermost higher orbitals, 5s², 5p⁶, 5d¹, 6s², i.e. by eleven electrons, hence they are less effective in chemical bonding.

Electronic configuration (Idealised and observed)

[Xe]⁵⁴ ls²2s²2p⁶3s²3p⁶3d¹⁰4s²4p⁶4d¹⁰5s²5p⁶

Question 112.
Write the expected electronic configuration of (a) Nd (Z = 60) (b) Tm (Z = 69).
Answer:
Expected electronic configuration :
(a) Nd = [Xe] 4f³ 5d¹ 6s²
(b) Tm= [Xe] 4f¹⁴5d¹6s²

Question 113.
Write electronic configurations of
(i) Gd
(ii) Yb.
Answer:
(i) ₆₄Gd [Xe] 4f⁷5d¹6s² (Observed)
(ii) ₇₀Yb [Xe] 4f¹⁴5d°6s² (Observed)

Question 114.
Write expected and observed electronic configurations of
(i) Ce
(ii) Tb.
Answer:

Element	Expected (Idealised)	Observed
(i) 58Ce	[Xe] 4f15d16s2	[Xe] 4f25d°6s2
(ii) 65Tb	[Xe] 4f85d16s2	[Xe] 4f95d°6s2

Question 115.
Why are the expected and observed ground state electronic configurations of gadolinium and lawrencium same?
Answer:

• The degenerate orbitals like 4f and 5f acquire extra stability when they are half filled (4f⁷) or completely filled (5f¹⁴).
• The expected and observed electronic configuration of gadolinium is, ₆₄Gd [Xe] 4f⁷ 5d¹ 6s².
• The expected and observed electronic configuration of lawrencium is ₁₀₃Lr [Rn] 5f¹⁴ 6d¹ 7s².

Question 116.
Explain oxidation states of lanthanoids.
Answer:

• The common oxidation state of the Lanthanoids is 3 + due to the loss of 2 electrons from outermost 6s orbital and one electron from the penultimate 5d sub-shell.
• Gd³⁺ and Lu³⁺ show extra stability due to their half-filled and completely filled f-orbitals, Gd³⁺ = [Xe]4f⁷, Lu³⁺ = [Xe]4f¹⁴
• Ce and Tb attain the 4f° and 4f⁷configurations in the 4 + oxidation states. Eu and Yb attain the 4f⁷ and 4f¹⁴ configurations in the 2 + oxidation states. Sm and Tm also show the 2+ oxidation state although their stability can be explained based on thermodynamic factors.
• Some lanthanoids show 2 + and 4 + oxidation states even though they do not have stable electronic configuration of 4f°, 4f⁷ or 4f¹⁴. E.g. Pr⁴⁺ (4f¹), Nd²⁺ (4f⁴), Sm²⁺ (4f⁶), Dy⁴⁺ (4f⁸) etc

Question 117.
Write the. electronic configuration of the following ions :
(1) La^{3 +} ;
(2) Gd³⁺;
(3) Eu³⁺;
(4) Ce³⁺.
Answer:
(1) La^{3 +} = [Xe]
(2) Gd³⁺ = [Xe] 4f⁷
(3) Eu³⁺ = [Xe] 4f⁶
(4) Ce³⁺ = |Xe] 4f¹

Question 118.
Write the electronic configuration of
(1) Nd²⁺
(2) Nd³⁺
(3) Nd⁴⁺.
Answer:
(1) Nd²⁺ [Xe] 4f⁴
(2) Nd³⁺ [Xe] 4f³
(3) Nd⁴⁺ [Xe] 4f²

Question 119.
Among the following lathanoids, which elements show only one oxidation state 3 +? Why? Dy, Gd, Yb, Lu.
Answer:
Gd and Lu show only one oxidation state 3 +, since they acquire electronic configurations with extra stability namely 4f⁷ and 4f¹⁴ respectively.

Question 120.
Write the expected electronic configurations of :
(1) europium (Z = 63),
(2) erbium (Z = 68).
Answer:
(1) Europium (₆₃Eu) [Xe]⁵⁴4f⁶ 5d¹ 6s²
(2) Erbium (₆₈Er) [Xe]⁵⁴4f¹¹ 5d¹ 6s²

Question 121.
Why does lanthanum form La³⁺ ion, while cerium forms Ce⁴⁺ ion? (Atomic number La = 57 and Ce = 58).
Answer:

1. Electronic configuration Lanthanum is La [Xe] 4f° 5d¹ 6s². By losing three electrons, La acquires stable electronic configuration of Xe and forms La³⁺.
2. Electronic configuration of Cerium is Ce [Xe] 4f¹ 5d¹ 6s². By losing four electrons, Ce acquires stable electronic configuration of Xe and forms Ce⁴⁺.

Question 122.
₆₃EU and ₇₀Yb show 2 + oxidation state. Explain.
Answer:
₆₃EU has electronic configuration, [Xe] 4f⁷ 5d°6s². By losing 2 electrons from 6s orbital, it acquires stable configuration and 4f-orbital is half-filled.
₇₀Yb has electronic configuration, [Xe] 4f¹⁴ 5d° 6s². By losing 2 electrons from 6 s orbital, it acquires stable configuration and 4/-orbital is completely filled.
Hence Eu and Yb show 2 + oxidation states.

Question 123.
Display electronic configuration, atomic and ionic radii of lanthanoids.
Answer:
Answers are given in bold.

Electronic configuration and atomic ionic radii of lanthanoids

Question 124.
Explain the trend in atomic and ionic sizes of lanthanoids.
Answer:

• From ₅₇La (187 pm) to first element of 4f-series ₅₈Ce (183 pm), the contraction in atomic radius is very large, 4 pm.
• But from Ce onwards as atomic number increases atomic radius decreases very steadily so that total decrease in atomic radius from Ce to Lu is only 10 pm.
• In case of tripositive ions due to large pull by nucleus, the decrease in ionic radii is slightly more, i.e. 18 pm. For example, Ce³⁺ (103 pm) to Lu³⁺ (85 pm ).
• Hence all lanthanoids have similar properties. Therefore they cannot be separated from each other easily by normal metallurgical methods but require special methods.
  

Question 125.
What is meant by lanthanoid contraction?
Answer:
Lanthanoid contraction : The gradual decrease in atomic and ionic radii of lanthanoids with the increase in atomic number is called lanthanoid contraction.

Question 153.
Explain the causes of the lanthanoid contraction.
Answer:
The causes of the lanthanoid contraction are as follows :

• As the atomic number of lanthanoids or 4f-block elements increases the positive nuclear charge increases and correspondingly electrons are added to the prepenultimate 4f sub-shell.
• The attraction of nucleus on 4 f-electrons increases with the increase in atomic number.
• The outer eleven electrons namely, 5s², 5p⁶, 5d³ and 6s² do not shield inner 4 f-electrons from the nucleus.
• There is imperfect shielding of each 4f-electron from other 4 f-electrons.
• As compared to d sub-shell, the extent of shielding for 4 f-electrons is less.
• Due to these cumulative effects, 4 f-electrons experience greater nuclear attraction and hence valence shell is pulled towards the nucleus to the greater extent decreasing atomic and ionic radii appreciably.
• From 57La to 58Ce, there is a sudden contraction in atomic radius from 187 pm to 183 pm but the further decrease up to the last 4f-element, ₇₁Lu is comparatively low (about 10 pm).

Question 126.
Explain lanthanoid contraction effect with respect to (1) decrease in basicity, (2) ionic radii of post-lanthanoids.
Answer:
The lanthanoid contraction has a definite effect on the properties of lanthanoids as well as on the properties of post-lanthanoid elements.
(1) Decrease in basicity :

• In lanthanoids due to lanthanoid contraction, as the atomic number increases, the size of the lanthanoid atoms and their try positive ions decreases, i.e. from La³⁺ to Lu³⁺.
• As size of the cation decreases, according to Fajan’s rule, the polarizability increases and thus the covalent character of the M-OH bond increases, and ionic character decreases.
• Therefore the basic nature of the hydroxides decreases.
• Basicity and ionic character decrease in the order La(OH)₃ > Ce(OH)₃ > … Lu(OH)₃.

(2) Ionic radii of post-lanthanoids :

• Elements following the lanthanoids in the 6th period (third transition series, i.e. 5d-series) are known as post-lanthanoids.
• Due to lanthanoid contraction the atomic radii (size) of elements which follow lanthanum in the 6th period (3rd transition series – Hf, Ta, W, Re)-are similar to the elements of the 5th period (4d-series Zr, Nb Mo, Tc).
• Due to similarity in their size, post-lanthanoid elements (5d-series) have closely similar properties to the elements of the 2nd transition series (4d-series) which lie immediately above them.
• Pairs of elements namely Zr-Hf(Gr-4), Nb-Ta (Gr-5), Mo-W(Gr-6), Tc-Re (Gr-7) are called chemical twins since they possess almost identical sizes and similar properties.

Question 127.
Why do lanthanoids form coloured compounds?
Answer:

• The colour in lanthanoid ions is due to the presence of unpaired electrons in partially filled 4f sub-shells.
• Due to the absorption of radiations in the visible region there arises the excitations of the unpaired electrons from f-orbital of lower energy to the f-orbital of higher energy-giving f → f transitions.
• The observed colour is complementary to the colour of the light absorbed.
• The colour of try positive ions (M³⁺) depends upon the number of unpaired electrons in f-orbitals. Hence the lanthanoid ions having equal number of unpaired electrons have similar colour.
• The colours of M³⁺ ions of the first seven lanthanoids, La³⁺ to Eu³⁺ are similar to those of seven elements Lu³⁺ to Tb³⁺ in the reverse order.

Question 128.
Explain, why Ce³⁺ ion is colourless.
Answer:

• The electronic configuration of Ce³⁺ is, [Xe] 4f⁷
• Even though there is one unpaired electron in 4f sub-shell, the f → f transition involves very low energy. Hence, Ce³⁺ ion does not absorb radiation in the visible region.

Therefore Ce³⁺ ion is colourless.

Question 129.
Explain why Gd³⁺ is colourless.
Answer:

• Gd³⁺ has electronic configuration, [Xe] 4f⁷
• Due to extra stability of half filled orbital, it does not allow f → f transition, and hence does not absorb radiations in the visible region.

Hence Gd³⁺ is colourless.

Question 130.
The salts of (1) La³⁺ and (2) Lu³⁺ are colourless. Explain.
Answer:
(1) (i) La³⁺ has electronic configuration, [Xe] 4f°
(ii) Since there are no unpaired electrons in 4 f-orbital, f → f transition is not possible. Hence La³⁺ ions do not absorb radiations in visible region, and they are colourless.

(2) (i) LU³⁺ has electronic configuration [Xe] 4 f¹⁴
(ii) Since there are no unpaired electrons in 4f-orbital, f → f transition is not possible. Hence Lu³⁺ ions do not absorb radiations in visible region and they are colourless.

Question 131.
Explain giving examples, the colour of nf electrons is about the same as those having (14-n) electrons.
Answer:
(1) Consider Pr³⁺ and Tm³⁺ ions.
Tm³⁺ (4f¹²) has nf electron 12 electrons.
Pr²⁺ (4f²) has (14 – n) = (14 – 2) = 12 electrons. Both, Tm³⁺ and Pr³⁺ are green.

(2) Consider Nd³⁺ and Er³⁺ ions. Er³⁺ (4f¹¹) has nf electrons 11.
Nd³⁺ (4f³) has (14 – n) is (14 – 3) = 11 electrons. These both ions Er³⁺, Na³⁺ are pink in colour.

Question 132.
Lu³⁺ has observed magnetic moment zero. How many unpaired electrons are present?
Answer:
Since magnetic moment is zero, it has no unpaired electrons.

Question 133.
What are the application of lanthanoids?
Answer:

1. Lanthanoid compounds are used inside the colour television tubes and computer monitor. For example mixed oxide (Eu, Y)₂ O₃ releases an intense red colour when bombarded with high energy electrons.
2. Lanthanoid ions are used as active ions in luminescent materials. (Optoelectronic application)
3. Nd : YAG laser is the most notable application. (Nd : YAG = neodymium doped ytterium aluminium garnet)
4. Erbium doped fibre amplifiers are used in optical fibre communication systems.
5. Lanthanoids are used in cars, superconductors and permanent magnets.

Question 134.
What are actinoids? Give their general electronic configuration.
Answer:

• Actinoids : The series of fourteen elements from ₉₀Th to ₁₀₃Lr which follow actinium (₈₉Ac) and in which differentiating electrons are progressively filled in 5f-orbitals in prepenultimate shell are called actinoids.
• Their general electronic configuration is, [Rn]⁸⁶ 5f^1-14 6d^0-1 7s².

Question 135.
Why are actinoids called inner transition elements?
Answer:

• Actinoids are 5f-series elements in which electrons progressively enter into 5f-orbitals, which are inner orbitals.
• They have electronic configuration [Rn]⁸⁶ 5f^1-14 6d^0-1 7s².
• They show intermediate properties as compared to electropositive 5-block elements and electronegative p-block elements. Hence they are called second inner transition elements.

Question 136.
Explain the position of actinoids in the periodic table.
OR
What is the position of actinoids in the periodic table?
Answer:

• Position of actinoids in the periodic table : Group-3; Period-7.
• They interrupt the fourth transition series (6d series) in the seventh period in the periodic table.
• After Actinium, 89Ac which has electronic configuration [Rn] 6d¹7s², the electrons enter progressively 5f orbital and they have general electronic configuration, [Rn] 5f^{1 – 14} 6d^{0 – 1} 7s².
• They are fourteen elements from ₉₀Th to ₁₀₃Lr and since they follow actinium, they are called actinoids.
• They are called 5f series or second inner transition series elements and for the convenience they are placed separately below the periodic table.

Question 137.
Write idealised and observed electronic configuration of actinoids.
Answer:

Question 138.
Explain the oxidation states of actinoids.
Answer:

• Due to availability of electrons in 5f, 6d and 7s sublevels, lanthanoids show varied oxidation states.
• The most common oxidation state is + 3 due to loss of one electron from 6d and two electrons from 6s-orbitals.
• Ac, Th and Am show + 2 oxidation state.
• Th, Pa, U, Np, Pu, Am and Cm show + 4 oxidation state.
• Np and Pu show the highest oxidation state + 7.
• U, Np, Bk, Cm and Am show stable oxidation state + 4.
• In + 6 oxidation state, due to high charge density the actinoid ions form oxygenated ions, e.g. \(\mathrm{UO}_{2}^{+}, \mathrm{NpO}_{2}^{+},\) etc.

Question 139.
Why do actinoids show variable oxidation states?
Answer:

• The large number of variable oxidation states of actinoids is due to very small energy difference between 5f, 6d and 7s subshells.
• The electronic configuration of actinoids is, [Rn] 5f^1-14 6d^0-1, 7s²
• Due to the loss of three electrons from 6d¹ and 7s², the common oxidation state is + 3, but due to further loss of electrons from 5f subshell, actinoids show higher oxidation states.
• The variable oxidation states are + 2 to + 7.

Electronic configuration of actinoids and their ionic radii in + 3 oxidation state

Question 140.
What is meant by actinoid contraction?
Answer:
Actinoid contraction: The gradual decrease in atomic and ionic radii of actinoids with the increase in atomic number is called actinoid contraction.

Question 141.
The extent of actinoid contraction is greater than lanthanoid contraction. Explain Why?
Answer:

• The electronic configurations of :
  Lanthanoids [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²
  Actinoids [Rn] 5f^{1 – 14}, 6d^{0 – 1} 7s²
• The mutual screening offered in case of 5f-electrons is less than that in the 4f-electrons.
• Hence, the outer orbitals are pulled to the greater extent by nuclei in actinoids (5f-series) than in lanthanoids (4f-series).
• Therefore, actinoid contraction is greater than lanthanoid contraction.

Question 142.
Describe the important properties of actinoids.
Answer:
Properties of actinoids :

• Actinoids are silvery white ( similar to lanthanoids).
• They are highly reactive radioactive elements.
• Most of these elements are not found in nature. They are radioactive and man made.
• They experience decrease in the atomic and ionic radii from Ac to Lw, known as actinoid contraction.
• The common oxidation state is +3. Elements of the first half of the series exhibit higher oxidation states.

Question 143.
What are the applications of actinoids?
Answer:

• Thorium oxide (ThO₂) with 1% CeO₂ is used as a major source of indoor lighting, as well as for outdoor camping.
• Uranium is used in the nuclear reactors.
• The isotopes of Thorium and Uranium have very long half-life, so that we get very negligible radiation from them: Hence they can be used safely.

Question 144.
What are transuranic elements?
Answer:

• The man-made elements heavier titan Uranium (Z = 92) in the Actinoid señes are called transuranic elements.
• These are synthetically or artificially prepared (man-made) elements starting from Neptunium (Z= 93).
• Transuranic elements arc generally considered to be from Neptunium (Z = 93) to Lawrencium (Z = 103).
• Recently elements from atomic number 104 (Rf) to atomic number 118 (Og) or (Uuo) in 6 d series have also been identified as transuranic elements.
• All transuranic elements are radioactive.

Question 145.
What are post actinoid elements?
Answer:

• Elements from atomic number 104 to 118 are called postactinoid elements.
• The post actinoid elements known so far are transition metals.
• They can be synthesised in the nuclear reactions.
• As they have very short half life period, it is difficult to study their chemistry.
• Ruiherfordium forms a chloride (RfCl₄) similar to zirconium and hafnium in + 4 oxidation state.
• Dubniurn resembles niobium and protactinium.

Question 146.
Name the transuranic elements.
Answer:
Names of transuranic elements

Name	Symbol	Atomic number
Neptunium	Np	93
Plutonium	Pu	94
Americium	Am	95
Curium	Cm	96
Berkelium	Bk	97
Californium	Cf	98
Einsteinium	Es	99
Ferminum	Fm	100
Mendelevium	Md	101
Nobelium	No	102
Lawrencium	Lr	103
Rutherfordium	Rf	104
Dubnium	Db	105
Seaborgium	Sg	106
Bohrium	Bh	107
Hassium	Hs	108
Meitnerium	Mt	109
Darmstadtium	Uun/Ds	110
Roentgenium	Uuu/Rg	111
Copernicium	Uub/Cn	112
Ununtrium	Uut	113
Ununquadium	Uuq	114
Ununpentium	Uup	115
Ununhexium	Uuh	116
Ununseptium	Uus	117
Ununoctium	Uuo	118

In the transuranic elements, elements from atomic number 93 to 103 are actinoids and from atomic number 104 to 118 are called postactinoid elements.

Question 147.
What are the similarities between lanthanides and actinides.
Answer:
Lanthanides and actinides show similarities as follows :

• Both, lanthanides and actinides show+ 3 oxidation state.
• In both the series, the f-orbitals are filled gradually.
• Ionic radius of the elements in both the series decreases with increase in atomic number.
• Electronegativity in both the series is low for all the elements.
• They all are highly reactive.
• The nitrates, perchlorates and sulphates of all elements are soluble while their hydroxides, theorides and carbonates
  are insoluble.

Question 148.
Differentiate between lanthanoids and actinoids.
Answer:

Lanthanoids	Actinoids
Electronic configuration [Xe] 4f1-14 5d0-1, 6s2	Electronic configuration [Rn] 5f1-14 6d0-1, 7s2
The differentiating electron enters the 4f subshell.	The differentiating electron enters the 5f subshell.
Except for Promethium all other elements occur in nature.	Except for Uranium and Thorium, all others are synthesized in the laboratory.
The binding energy of 4f electrons is higher.	5f-orbitals have lower binding energy.
Only Promethium is radioactive.	All elements are radioactive.
Besides 3 + oxidation state they show 2 + and 4 + oxidation states.	Besides 3 + oxidation state they show 2 + , 4 + , 5 + , 6 + , 7 + oxidation states.
They have a less tendency to form complexes.	They have greater tendency to form complexes.
Many lanthanoid ions are colourless. Their colour is not as deep and sharp as actinoids.	Actinoids are coloured ions. Their colour is deep, e.g. U3+ is red and U4+ is green.
Lanthanoids cannot form oxo-cations.	Actinoids form oxo-cations such as – UO2+, PuO2+, UO22+, PuO22+.
Lanthanoid hydroxides are less basic.	Actinoid hydroxides are more basic.
Lanthanoid contraction is relatively less.	Actinoid contraction from element to element is comparatively more.
Mutual shielding of 4f electrons is more.	Mutual shielding effect of 5f electrons is less.

Question 149.
Compare Pre-transition metals, Lanthanoid and transition metals.
Answer:

Multiple Choice Questions

Question 150.
Select and write the most appropriate answer from the given alternatives for each sub-question :

1. In transition elements, the different electron enters into
(a) ns subshell
(b) np subshell
(c) (n – 1) d subshell
(d) (n – 2)f subshell
Answer:
(c) (n – 1) d subshell

2. Chromium (Z = 24) has electronic configuration
(a) [Ar]4d^A 4s²
(b) [Ar] 4d⁵ 45¹
(c) [Ar] 3d⁵ 3s¹
(d) [Ar] 3d⁵ 4s¹
Answer:
(d) [Ar] 3d⁵ 4s¹

3. Manganese achieves the highest oxidation state in its compounds
(a) Mn₃O₄
(b) KMnO₄
(c) K₂MnO₄
(d) MnO₂
Answer:
(b) KMnO₄

4. The group which belongs to transition series is
(a) 2
(b) 7
(c) 13
(d) 15
Answer:
(b) 7

5. The last electron of transition element is called
(a) s-electron
(b) p-electron
(c) d-electron
(d) f-electron
Answer:
(c) d-electron

6. Which one of the following elements does NOT belong to first transition series?
(a) Fe
(b) V
(c) Ag
(d) Cu
Answer:
(c) Ag

7. The incomplete d-series is
(a) 3d
(b) 4d
(c) 5d
(d) 6d
Answer:
(d) 6d

8. The electronic configuration of Sc is
(a) [Ar] 3d² 4s²
(b) [Ar] 3d¹ 4s²
(c) [Kr] 3d¹ 4s²
(d) [Kr] 3d² 4s¹
Answer:
(b) [Ar] 3d¹ 4s²

9. The observed electronic configuration of copper is
(a) [Ar]¹⁸ 3d⁹ 4s²
(b) [Kr] 3d¹⁰ 45¹
(c) [Kr] 3d⁹ 4s²
(d) [Ar] 3d¹⁰ 45¹
Answer:
(d) [Ar] 3d¹⁰ 45¹

10. Fe belongs to the
(a) 3d-transition series elements
(b) 4d-transition series elements
(c) 5d-transition series elements
(d) 6d-transition series elements
Answer:
(a) 3d-transition series elements

11. Which one of the following elements does not exhibit variable oxidation states?
(a) Iron
(b) Copper
(c) Zinc
(d) Manganese
Answer:
(c) Zinc

12. In KMnO₄, oxidation number of Mn is
(a) 2+
(b) 4 +
(c) 6 +
(d) 7+
Answer:
(d) 7+

13. Which one of the following transition elements shows the highest oxidation state?
(a) Sc
(b) Ti
(c) Mn
(d) Zn
Answer:
(c) Mn

14. The colour of transition metal ions is due to
(a) s → s transition
(b) d → d transition
(c) p → p transition
(d) f → f transition
Answer:
(b) d → d transition

15. Which one of the following compounds is expected to be coloured?
(a) AgNO₃
(b) CuSO₄
(c) ZnCl₂
(d) CuCl
Answer:
(b) CuSO₄

16. The metal ion which is NOT coloured, is
(a) Fe³⁺
(b) V²⁺
(c) Zn²⁺
(d) Ti³⁺
Answer:
(c) Zn²⁺

17. A pair of coloured ion is
(a)Cu²⁺, Zn²⁺
(b)Cr³⁺ , Cu⁺
(c) Cd²⁺, Mn⁵⁺
(d) Fe²⁺, Fe³⁺
Answer:
(d) Fe²⁺, Fe³⁺

18. The highest oxidation state is shown by
(a) Fe
(b) Mn
(c) Os
(d) Cr
Answer:
(c) Os

19. Transition elements are good catalysts since
(a) they show variable oxidation states
(b) they have partially filled d-orbitals
(c) they have low I.P
(d) they have small atomic radii
Answer:
(a) they show variable oxidation states

20. Highest magnetic moment is shown by the ion
(a) V³⁺
(b) Co³⁺
(c) Fe³⁺
(d) Cr³⁺
Answer:
(c) Fe³⁺

21. The most common oxidation state of lanthanoids is
(a) +4
(b) +3
(c) +6
(d) +2
Answer:
(b) +3

22. Which one of the following elements belong to the actinoid series?
(a) Cerium
(b) Lutetium
(c) Thorium
(d) Lanthanum
Answer:
(c) Thorium

23. The total number of elements in each of f-series is
(a) 10
(b) 12
(c) 14
(d) 15
Answer:
(c) 14

24. The general electronic configuration of Lanthanoids is
(a) [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²
(b) [Xe] 4f^{2 – 14} 5d^{0 – 1} 6s²
(c) [Xe] 4f^{1 – 13} 5d^{0 – 1} 6s²
(d) [Xe] 4f^{0 – 14} 5d^{0 – 1} 6s¹
Answer:
(a) [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²

25. f-block elements are called ………………….
(a) transition elements
(b) representative elements
(c) inner transition elements
(d) alkalin earth metals
Answer:
(c) inner transition elements

26. Actinoids form coloured salts due to the transition of electrons in
(a) d – d
(b) f – f
(c) f – d
(d) s – f
Answer:
(b) f – f

27. In the periodic table, Gadolinium belongs to
(a) 4th Group 6th period
(b) 4th group 4th period
(c) 3rd group 5th period
(d) 3rd group 7th period.
Answer:
(d) 3rd group 7th period.

28. The transuranic elements are prepared by
(a) addition reaction
(b) substitution reactions
(c) decomposition reaction
(d) nuclear reactions
Answer:
(d) nuclear reactions

Balbharti Maharashtra State Board 12th Commerce Book Keeping & Accountancy Solutions Chapter 3 Reconstitution of Partnership (Admission of Partner) Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Book Keeping & Accountancy Solutions Chapter 3 Reconstitution of Partnership (Admission of Partner)

1. Objetive type questions.

A. Select the most appropriate alternatives from the following and rewrite the sentences.

Question 1.
Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3 : 2. They decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be __________
(a) 12 : 8 : 5
(b) 4 : 3 : 1
(c) 12 : 8 : 1
(d) 12 : 3 : 1
Answer:
(a) 12 : 8 : 5

Question 2.
Excess of proportionate capital over actual capital represents __________
(a) equal capital
(b) surplus capital
(c) deficit capital
(d) gain
Answer:
(c) deficit capital

Question 3.
__________ is credited when unrecorded asset is brought into business.
(a) Revaluation Account
(b) Balance Sheet
(c) Trading Account
(d) Partners Capital Account
Answer:
(a) Revaluation Account

Question 4.
When goodwill is withdrawn by the partner __________ account is credited.
(a) Revaluation
(b) Cash/Bank
(c) Current
(d) Profit and Loss Adjustment
Answer:
(b) Cash/Bank

Question 5.
If asset is taken over by the partner __________ Account is debited.
(a) Revaluation
(b) Capital
(c) Asset
(d) Balance Sheet
Answer:
(b) Capital

B. Write the word/phrase/term, which can substitute each of the following statements.

Question 1.
The method under which calculation of goodwill is done on the basis of extra profit earned above the normal profit.
Answer:
Super Profit Method

Question 2.
An account is opened to adjust the value of assets and liabilities at the time of admission of a partner.
Answer:
Revaluation A/c or Profit and Loss A/c

Question 3.
The reputation of a business is measured in terms of money.
Answer:
Goodwill

Question 4.
The ratio in which general reserve is distributed to the old partners.
Answer:
Old Ratio

Question 5.
Name the method of the treatment of goodwill where a new partner will bring his share of goodwill in cash.
Answer:
Premium Method

Question 6.
The proportion in which old partners make a sacrifice.
Answer:
Sacrifice Ratio

Question 7.
Capital employed × NRR/100 = __________
Answer:
Normal Profit

Question 8.
An Account is debited when the partner takes over the asset.
Answer:
Partner’s Capital A/c or Partner’s Current A/c

Question 9.
Profit and Loss Account balance appearing on the liability side of the Balance Sheet.
Answer:
Undistributed Profit or Accumulated Profit

Question 10.
Old ratio – New ratio = __________
Answer:
Sacrifice Ratio

C. State True or False with reasons:

Question 1.
A new partner can bring capital in cash or kind.
Answer:
This statement is True.
As per the provision of partnership deed, when any person is admitted in the firm, he has to bring some amount as capital which can be in cash or in-kind of assets to get rights in the assets and definite share in the future profit of the firm.

Question 2.
When goodwill is paid privately to the partners, it is not recorded in the books.
Answer:
This statement is True.
When goodwill is paid privately to the partners, by a newly admitted person, then in such case no transaction takes place in the business, and the firm as such is not all benefited. Hence it is not recorded in the books of accounts.

Question 3.
The gain ratio is calculated at the time of admission of a partner.
Answer:
This statement is False.
At the time of admission of a person, in the business, sacrifices are made by the old partners in favour of the new partner. It means there is no question of any gain to the partners, so we can say that the Gain ratio is not calculated at the time of admission of a partner.

Question 4.
Revaluation profit is distributed among all partners including new partners.
Answer:
This statement is False.
Revaluation profit arises due to efforts and hardworking of the old partners in the past and hence profit earned on revaluation of assets and liabilities at the time of admission of a person as a partner in the business belongs to old partners. So, such profit is not distributed among all partners including the new partners. It is distributed only among old partners.

Question 5.
Change in the relationship between the partners is called as Reconstitution of Partnership.
Answer:
This statement is True.
When any person joins the business as a partner, a change in the relationship takes place. The old agreement is terminated and a new agreement is prepared. There is the change in profit or loss sharing ratio and relationship of the partners which is known as Reconstitution of Partnership.

Question 6.
New partners always bring their share of goodwill in cash.
Answer:
This statement is False.
When a new person is admitted to the partnership firm, the old partners surrender a certain share in profit and give it to a new partner. In exchange for that new partner is required to bring goodwill in cash or in kind. If he is unable to bring cash for goodwill, then Goodwill is raised and adjusted to the new partner’s capital A/c.

Question 7.
When the goodwill is written off, the goodwill account is debited.
Answer:
This statement is False.
To write off goodwill means to decrease or wipe out the value of goodwill. When goodwill as an asset of the business is raised, Goodwill A/c is debited in the books of Account. Conversely, when Goodwill is written off from the business, the Goodwill A/c is credited in the books of business.

Question 8.
The new ratio minus the old ratio is equal to the sacrifice ratio.
Answer:
This statement is False.
When a new partner is admitted, old partners have to sacrifice their profit share in favour of the new partner and their old ratio gets reduced and whatever ratio is left becomes a new ratio. Hence, as per equation:
New Ratio = Old Ratio – Sacrifice Ratio.
By interchanging the terms,
Sacrifice Ratio = Old Ratio – New Ratio.

Question 9.
Usually, when a new partner is admitted to the firm, there will be an increase in the capital of the firm.
Answer:
This statement is True.
When a new partner is admitted to the firm, he brings his share of capital and goodwill, in cash or in-kind, to enjoy the right of sharing the future profit, and hence there will be an increase in the capital of the firm.

Question 10.
Cash/Bank Account is credited when goodwill is withdrawn by the old partners.
Answer:
This statement is True.
When a new partner brings his share of goodwill, old partners have the right to withdraw it in cash. Therefore, when old partners withdraw the amount of goodwill, cash goes out from the firm and not goodwill. Hence Cash/Bank A/c is credited.

D. Find the odd one.

Question 1.
General reserve, Creditors, Machinery, Capital
Answer:
Machinery

Question 2.
Decrease in Furniture, Patents wrote off, Increase in Bills payable, R.D.D. written off
Answer:
R.D.D. written off

Question 3.
Super profit method, Valuation method, Average profit method, Fluctuating capital method
Answer:
Fluctuating capital method

E. Calculate the following:

Question 1.
A and B are partners in a firm sharing profit and losses in the ratio of 1 : 1. C is admitted. A surrenders 1/4th share and B surrenders 1/5th of his share in favour of C. Calculate new profit sharing ratio.
Solution:
Old ratio of A and B = 1 : 1 or \(\frac{1}{2}\) : \(\frac{1}{2}\)
A’s sacrifice = \(\frac{1}{4} \times \frac{1}{2}=\frac{1}{8}\)
B’s sacrifice = \(\frac{1}{5} \times \frac{1}{2}=\frac{1}{10}\)
Sacrificing ratio of A and B = \(\frac{1}{8}\) : \(\frac{1}{10}\) = 5 : 4
C’s share = A’s share + B’s share = \(\frac{1}{8}+\frac{1}{10}=\frac{5+4}{40}=\frac{9}{40}\)
A’s new share = Old ratio – Sacrifice ratio = \(\frac{1}{2}-\frac{1}{8}=\frac{4-1}{8}=\frac{3}{8}\)
B’s new share = Old ratio – Sacrifice ratio = \(\frac{1}{2}-\frac{1}{10}=\frac{5-1}{10}=\frac{4}{10}\)
Therefore, New ratio of A, B and C = \(\frac{3}{8}: \frac{4}{10}: \frac{9}{40}\) = 15 : 16 : 9
(Making denominator equal)

Question 2.
Anika and Radhika are partners sharing profit in the ratio of 5 : 1. They decide to admit Sanika to the firm for 1/5th share. Calculate the Sacrifice ratio of Anika and Radhika.
Solution:
Balance = 1 – share of new partner
= 1 – \(\frac{1}{5}\)
= \(\frac{4}{5}\) (Remaining share)
New ratio = Old ratio x Balance of 1
Anika’s New ratio = \(\frac{5}{6} \times \frac{4}{5}=\frac{20}{30}\)
Radhika’s New ratio = \(\frac{1}{6} \times \frac{4}{5}=\frac{4}{30}\)
Sanika’s New ratio = \(\frac{1}{5} \times \frac{6}{6}=\frac{6}{30}\) (Making denominator equal)
∴ New Profit and Loss ratio = \(\frac{20}{30}: \frac{4}{30}: \frac{6}{30}\) = 20 : 4 : 6 i.e. 10 : 2 : 3
Sacrifice ratio = old ratio – New ratio
Anika’s Sacrifice ratio = \(\frac{5}{6}-\frac{20}{30}=\frac{25-20}{30}=\frac{5}{30}\)
Radhika’s Sacrifice ratio = \(\frac{1}{6}-\frac{4}{30}=\frac{5-4}{30}=\frac{1}{30}\)
∴ Sacrifice ratio = \(\frac{5}{30}: \frac{1}{30}\) = 5 : 1

Question 3.
Pramod and Vinod are partners sharing profits and losses in the ratio of 3 : 2. After the admission of Ramesh the New ratio of Pramod, Vinod and Ramesh are 4 : 3 : 2. Find out the Sacrifice ratio.
Solution:
Sacrifice Ratio = Old ratio – New ratio
Pramod’s Sacrifice ratio = \(\frac{3}{5}-\frac{4}{9}=\frac{27-20}{45}=\frac{7}{45}\)
Vinod’s Sacrifice ratio = \(\frac{2}{5}-\frac{3}{9}=\frac{18-15}{45}=\frac{3}{45}\)
∴ Sacrifice ratio = \(\frac{7}{45}: \frac{3}{45}\) = 7 : 3.

F. Answer in one sentence.

Question 1.
What is Revaluation Account?
Answer:
An account opened and operated by any partnership firm for recording changes in the value of assets and liabilities and to ascertain profit or loss made on revaluation of assets and liabilities is called Revaluation Account.

Question 2.
What is meant by Reconstitution of Partnership?
Answer:
Reconstitution of partnership means a change in the relationship between/among partners and in the form of partnership.

Question 3.
Why is the new partner admitted?
Answer:
A new partner is admitted to the existing partnership firm to increase the capital resources of the firm and to secure advantages of a new entrant’s skill and business connections, i.e. goodwill.

Question 4.
What is the sacrifice ratio?
Answer:
A ratio that is surrendered or given up by the old partners in favour of a newly admitted partner is called the sacrifice ratio.

Question 5.
What do you mean by raising the goodwill at the time of admission of a new partner?
Answer:
Raising the Goodwill at the time of admission of a new partner means debiting Goodwill Account up to the value it is raised and crediting. Old partners’ Capital Accounts in their old ratio in the books of the firm.

Question 6.
What is the super profit method of calculation of goodwill?
Answer:
Super profit method of calculation of Goodwill is a method in which Goodwill is valued at a certain number of years purchases of the super profit of the partnership firm.

Question 7.
When is the ratio of sacrifice calculated for the distribution of goodwill?
Answer:
The ratio of sacrifice is calculated when the benefits of goodwill contributed by a new partner in cash is to be transferred to existing partners’ Capital/Current Account.

Question 8.
What is the treatment of accumulated profits at the time of admission of a partner?
Answer:
Accumulated profits at the time of admission of a partner are transferred to old partners’ Capital/Current Accounts in their old profit sharing ratio.

Question 9.
State the ratio in which the old partner’s Capital A/c will be credited for goodwill when the new partner does not bring his share of goodwill in cash.
Answer:
When the new partner does not bring his share of goodwill in cash, Goodwill is raised up to a certain value and credited to old partners’ Capital/Current A/cs in their old profit sharing ratio.

Question 10.
What does the excess of debit over credits in the Profit and Loss Adjustment Account indicate?
Answer:
The excess of debit over credits in the Profit and Loss Adjustment Account indicates loss on revaluation of assets and liabilities.

G. Complete the table.

Question 1.

Answer:
Average Profit = \(\frac{Total Profit}{Number of years}\)

Question 2.

Answer:
Normal Profit = Capital Employed × \(\frac{NPR}{100}\)

Question 3.

Answer:
The stock shown in Balance Sheet → Stock undervalued by 20% → Cost of Stock
₹ 1,60,000 → ₹ 40,000 → ₹ 2,00,000

Practical Problems

Question 1.
Vikram and Pradnya share profits and losses in the ratio 2 : 3 respectively. Their Balance Sheet as of 31st March 2018 was as under.
Balance Sheet as of 31st March 2018

They agreed to admit Avani as a partner on 1st April 2018 on the following terms:
1. Avani shall have 1/4th share in future profits.
2. He shall bring ₹ 37,500 as his capital and ₹ 30,000 as his share of goodwill.
3. Land and building to be valued at ₹ 45,000 and furniture to be depreciated by 10%.
4. Provision for bad and doubtful debts is to be maintained at 5% on the Sundry Debtors.
5. Stock to be valued ₹ 82,500.
The Capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.
Prepare Profit and Loss Adjustment Account, Capital Accounts, and New Balance Sheet.
Solution:
In the books of Partnership Firm

Balance Sheet as of 1st April 2018

Working Notes:
1. Calculation of new profit ratio = 1 – share of new partner
= 1 – \(\frac{1}{4}\)
= \(\frac{3}{4}\) (Remaining share)
New ratio = old ratio × balance 1 (Remaining share)
Vikram’s new ratio = \(\frac{2}{5} \times \frac{3}{4}=\frac{6}{20}\)
Pradnya’s new ratio = \(\frac{3}{5} \times \frac{3}{4}=\frac{9}{20}\)
Avani’s ratio = \(\frac{1}{4}=\frac{1}{4} \times \frac{5}{5}=\frac{5}{20}\)
∴ New profit sharing ratio = 6 : 9 : 5.
Capital amount adjusted in their new profit and loss ratio:
Total Capital of the Partnership Firm = (Reciprocal of New Partner’s Share) × (Capital of New Partner)
= (Reciprocal of \(\frac{1}{4}\)) × 37,500
= 4 × 37,500
= ₹ 1,50,000
Vikram’s Capital balance = (Vikram’s New Ratio) × (Total Capital of the firm)
= \(\frac{6}{20}\) × 1,50,000 = ₹ 45,000
Pradnya’s Capital balance = \(\frac{9}{20}\) × 1,50,000 = ₹ 67,500

Question 2.
Amalendu and Sameer share profits and losses in the ratio 3 : 2 respectively. Their Balance Sheet as of 31st March 2017 was as under:
Balance Sheet as of 31st March 2017

On 1st April 2017 they admit Paresh into partnership. The term being that:
1. He shall pay ₹ 16,000 as his share of Goodwill 50% amount of Goodwill shall be withdrawn by the old partners.
2. He shall have to bring in ₹ 20,000 as his Capital for 1/4 share in future profits.
3. For the purpose of Paresh’s admission it was agreed that the assets would be revalued as follows:
A. Land and Building is to be valued at ₹ 60,000.
B. Plant and Machinery to be valued at ₹ 16,000.
C. Stock valued at ₹ 20,000 and Furniture and Fixtures at ₹ 4,000.
D. A Provision of 5% on Debtors would be made for Doubtful Debts.
Pass the necessary Journal Entries in the books of a new firm.
Solution:
Journal entries in the books of Partnership Firm


Working Notes:

Question 3.
Vasu and Viraj share profits and losses in the ratio of 3 : 2 respectively. Their Balance Sheet as on 31st March, 2019 was as under:
Balance Sheet as on 31st March, 2019

They admit Hari into partnership on 1-4-2019. The terms being that:
1. He shall have to bring in ₹ 60,000 as his Capital for 1/4 share in future profits.
2. Value of Goodwill of the firm is to be fixed at the average profits for the last three years.
The Profit were:
2015-16 – ₹ 48,000
2016-17 – ₹ 81,000
2017-18 – ₹ 73,500
Hari is unable to bring the value of Goodwill in cash. It is decided to raise Goodwill in the books of accounts.
3. Reserve for Doubtful debts is to be created at ₹ 1,500.
4. Closing stock is valued at ₹ 22,500.
5. Plant and Building are to be depreciated by 5%.
Prepare Profit and Loss-Adjustment A/c, Capital Accounts of Partners and Balance Sheet of the new firm.
Solution:
In the books of the firm __________

Balance Sheet as on 1st April 2019

Working Notes:
1. Average Profit = \(\frac{Total Profit}{No. of years}\)
= \(\frac{48,000+81,000+73,500}{3}\)
= ₹ 67,500
∴ Goodwill value = ₹ 67,500
Vasu’s share in Goodwill = ₹ 40,500 (67,500 × \(\frac{3}{5}\))
Viraj’s share in Goodwill = ₹ 27,000 (67,500 × \(\frac{2}{5}\))

2. Hari is not able to bring a share in goodwill and it is decided to raise the goodwill in the book.
Therefore, Goodwill is recorded in the Asset side ₹ 67,500.

Question 4.
Mr. Deep & Mr. Karan were in partnership sharing profits & losses in the proportion of 3 : 1 respectively. Their Balance Sheet on 31st March 2018 stood as follows:
Balance Sheet as of 31st March 2018

They admit Shubham into Partnership on 1 April 2018. The terms being that:
1. He shall have to bring in ₹ 20,000 as his capital for 1/5 share in future profits & ₹ 10,000 as his share of Goodwill.
2. A provision for 5% doubtful debts to be created on sundry debtors.
3. Furniture to be depreciated by 20%.
4. Stock should be appreciated by 5% and Building be appreciated by 20%.
5. Capital A/c of all partners be adjusted in their new profit sharing ratio through cash account.
Prepare Profit and Loss-Adjustment A/c, Partners’ Capital A/c, Balance Sheet of the new firm.
Solution:
In the books of the firm __________


Balance Sheet as of 1st April 2018

Working Note:
Calculation of new ratio : Balance of 1 = 1 – share of new partner
= 1 – \(\frac{1}{5}\)
= \(\frac{4}{5}\) (Remaining share)
New ratio = Old ratio × balance 1 (Remaining share)
Deep’s new ratio = \(\frac{3}{4} \times \frac{4}{5}=\frac{3}{5}\)
Karan’s new ratio = \(\frac{1}{4} \times \frac{4}{5}=\frac{1}{5}\)
Shubham’s new ratio = \(\frac{1}{5}=\frac{1}{5}\)
∴ New profit and loss sharing ratio = 3 : 1 : 1
Capital amount to be adjusted in Partner’s new profit and loss ratio:
Total Capital of the firm = (Reciprocal of New partner’s share) × (New partner’s capital)
= 5 × 20,000
= ₹ 1,00,000
Deep’s capital balance = \(\frac {3}{5}\) × 1,00,000 = ₹ 60,000
Karan’s capital balance = \(\frac {1}{5}\) × 1,00,000 = ₹ 20,000

Question 5.
Mr. Kishor & Mr. Lai were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively.

They decided to admit Ram on 1 April 2018 on the following terms:
1. He should be given 1/5th share in profit and for that, he brought in ₹ 60,000 as capital through RTGS.
2. Goodwill should be raised at ₹ 60,000.
3. Appreciate Land and Building by 20%.
4. Furniture and Stock are to be depreciated by 10%.
5. The capitals of all partners should be adjusted in their new profit sharing ratio through Bank A/c.
Pass necessary Journal Entries in the books of the partnership firm and a Balance Sheet of the new firm.
Solution:
Journal entries in the books of the firm


Balance Sheet as of 1st April 2018

Working Notes:
1.

2. Calculation of new profit sharing ratio:
New Ratio = (Balance of 1) × (old ratio)
Kishor’s New ratio = \(\left(1-\frac{1}{5}\right) \times \frac{3}{4}=\frac{4}{5} \times \frac{3}{4}=\frac{3}{5}\)
Lal’s New ratio = \(\left(1-\frac{1}{5}\right) \times \frac{1}{4}=\frac{4}{5} \times \frac{1}{4}=\frac{1}{5}\)
Ram’s ratio = \(\frac{1}{5}\)

3. Total capital of the firm = (Reciprocal of Ram’s ratio) × (His capital contribution)
= \(\frac{5}{1}\) × 60,000 = ₹ 3,00,000
Kishor’s new closing capital balance = 3,00,000 × \(\frac{3}{5}\) = ₹ 1,80,000
Lai’s new closing capital balance = 3,00,000 × \(\frac{1}{5}\) = ₹ 60,000
Ram’s new closing capital balance = ₹ 60,000

Question 6.
Vrushali and Leena are equal partners in the business. Their Balance Sheet as of 31st March 2013 stood as under.
Balance Sheet as of 31st March 2018

They decided to admit Aparna on 1st April 2018 on the following terms:
1. The Machinery and Building be depreciated by 10%. Reserve for Doubtful Debts to be increased by ₹ 5,000.
2. Bills receivable are taken over by Vrushali at a discount of 10%.
3. Aparna should bring ₹ 60,000 as capital for her 1/4th share in future profits.
4. The Capital accounts of all the partners be adjusted in proportion to the new profit sharing ratio by opening the Current accounts of the partners.
Prepare Profit and Loss-Adjustment A/c, Partners’ Capital A/c, Balance Sheet of the new firm.
Solution:

Balance Sheet as on 1st April 2018

Working Notes:
1. R.D.D. to be increased by ₹ 5,000 means subtract ₹ 5,000 from Debtors.

2. Bills receivable taken by Vrushali at 10 % discount i.e. 12,000 – 1,200 = ₹ 10,800.
Write this amount on the debit side of the partners’ Capital Account in Vrushali’s column.

3. Calculation of new ratio = 1 – share of new partner
= 1 – \(\frac{1}{4}\)
= \(\frac{3}{4}\) (Remaining share)
New ratio = Old ratio × Balance 1 (Remaining Share)
Vrushali’s new ratio = \(\frac{1}{2} \times \frac{3}{4}=\frac{3}{8}\)
Leena’s new ratio = \(\frac{1}{2} \times \frac{3}{4}=\frac{3}{8}\)
Aparna’s ratio = \(\frac{1}{4}\)
∴ Partner’s new profit and loss ratio = \(\frac{3}{8}: \frac{3}{8}: \frac{1}{4}\) = 3 : 3 : 2
Now, capital amount to be adjusted in partners new profit and loss ratio.
Total capital of the firm = (Reciprocal of New Partner’s Share) × (New Partner’s Capital)
= (Reciprocal of \(\frac{1}{4}\)) × 60,000
= 4 × 60,000
= ₹ 2,40,000
Vrushali’s capital balance = \(\frac {3}{8}\) × 2,40,000 = ₹ 90,000
Leela’s capital balance = \(\frac {3}{8}\) × 2,40,000 = ₹ 90,000
The deficit of these capital balances is to be adjusted through the Current account.
To keep the balance of Vrushali’s and Leena’s capital ₹ 90,000 each, deficit of ₹ 53,850 and ₹ 58,050 are incurred which is transferred to the respective Partner’s Current A/cs and recorded on the Asset side of Balance Sheet [As it is to be recovered from Partners].

Question 7.
The balance sheet of Medha and Radha who share profit and loss in the ratio 3 : 1 is as follows:
Balance Sheet as of 31st March 2018

They decided to admit Krutika on 1st April 2018 on the following terms:
1. Krutika is taken as a partner on 1st April 2017. She will pay 40,000 as her capital for 1/5th share in future profits and ₹ 2,500 as goodwill.
2. 5% provision for bad and doubtful debt be created on debtors.
3. Furniture be depreciated by 20%.
4. Stocks be appreciated by 5% and plant & machinery by 20 %.
5. The Capital accounts of all partners be adjusted in their new profit sharing ratio by adjusting the amount through a loan.
6. The new profit sharing ratio will be 3/5 : 1/5 : 1/5 respectively.
You are required to prepare Profit and Loss-Adjustment A/c, Partners’ Capital A/c, Balance Sheet of the new firm.
Solution:


Balance Sheet as of 1st April 2018

Working Notes:
1. Total capital of the firm = (Reciprocal of New Partner’s Profit Sharing ratio) × (Capital contributed by new partner)
= (Reciprocal of \(\frac{1}{5}\)) × 40,000
= 5 × 40,000
= ₹ 2,00,000
Medha’s closing capital, balance = \(\frac{3}{5}\) × 2,00,000 = ₹ 1,20,000
Radha’s closing capital balance = \(\frac{1}{5}\) × 2,00,000 = ₹ 40,000

2. General reserve is distributed among old partners in their old profit and loss ratio.

3. Cash Balance = 78,000 + 40,000 + 2,500 = ₹ 1,20,500 [Amount brought in by new partner.]

Question 8.
The Balance Sheet of Sahil and Nikhil who share profits in the ratio of 3 : 2 as of 31st March 2017 is as follows:
Balance Sheet as of 31st March 2017

Varad admitted on 1st April 2017 on the following terms:
1. Varad was to pay ₹ 1,00,000 for his share of capital.
2. He was also to pay ₹ 40,000 as his share of goodwill.
3. The new profit sharing ratio was 3 : 2 : 3.
4. Old partners decided to revalue the assets as follows:
Building ₹ 1,00,000. Furniture ₹ 48,000, Debtors ₹ 38,000 (in view of likely bad debts)
5. It was found that there was a liability for ₹ 3,000 for goods in March 2017 but recorded on 2nd April 2017.
You are required to prepare:
(a) Profit and Loss-Adjustment account
(b) Capital accounts of the partners
(c) Balance Sheet after the admission of Varad.
Solution:


Balance Sheet as of 1st April 2017

Working Notes:
1. Cash in hand = Opening balance + Varad’s capital + Varad’s goodwill (amount brought in)
= 20,000 + 1,00,000 + 40,000
= ₹ 1,60,000

2. Sacrifice ratio = Old ratio – New ratio
Sahil’s sacrifice = \(\frac{3}{5}-\frac{3}{8}=\frac{24-15}{40}=\frac{9}{40}\)
Nikhil’s sacrifice = \(\frac{2}{5}-\frac{2}{8}=\frac{16-10}{40}=\frac{6}{40}\)
i.e. sacrifice ratio = \(\frac{9}{40}: \frac{6}{40}\) = 9 : 6 = 3 : 2.
Goodwill is distributed among old partners in the sacrifice ratio.

Question 9.
Mr. Amit and Baban share profits and losses in the ratio 2 : 3 respectively. Their Balance Sheet as of 31st March 2018 was as under:
Balance Sheet as of 31st March 2018

They agreed decided to admit Kamal on 1st April 2018 on the following terms:
1. Kamal shall have 1/4th share in future profits.
2. She shall bring 50,000 as her capital and 40,000 as her share of goodwill.
3. Land and building to be valued at 60,000 and furniture to be depreciated by 10%.
4. Provision for bad and doubtful debts is to be maintained at 5% on the sundry debtors.
5. Stocks to be valued at 1,10,000.
The Capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.
Prepare Profit and Loss-Adjustment A/c, Capital A/cs, and New Balance Sheet.
Solution:

Balance Sheet as of 1st April 2018

Working Notes:
1. Cash balance = Opening balance + Amount brought in by Kamal
= 1,10,000 + 50,000 + 40,000
= ₹ 2,00,000

2. For calculation of new profit and loss ratio:
Calculation of new profit ratio = 1 – share of new partner
= 1 – \(\frac{1}{4}\)
= \(\frac{3}{4}\) (Remaining share)
New ratio = old ratio × balance 1 (Remaining share)
Amit’s new ratio = \(\frac{2}{5} \times \frac{3}{4}=\frac{6}{20}\)
Baban’s new ratio = \(\frac{3}{5} \times \frac{3}{4}=\frac{9}{20}\)
Kamal’s ratio = \(\frac{1}{4}=\frac{1}{4} \times \frac{5}{5}=\frac{5}{20}\)

3. New profit and loss ratio = 6 : 9 : 5
Capital amount adjusted in their new profit and loss ratio by taking new partner Kamal’s capital (₹ 50,000) as a base.
For part 5 capital = ₹ 50,000 (Kamal’s capital)
For part 6 capital = ₹ 60,000 (Amit’s capital)
For part 9 capital = ₹ 90,000 (Baban’s capital)

4. After keeping these capital balances difference of the amount of Amit’s capital ₹ 63,520 and of Baban’s capital ₹ 45,280 are taken as partner’s loan to the firm and as a liability of the firm it is recorded in the Liabilities side of the Balance Sheet.

Question 10.
The following is the Balance Sheet of Om and Jay on 31st March 2018, they share profits and losses in the ratio 3 : 2.
Balance Sheet as of 31st March 2018

They take Jagdish into partnership on 1st April 2018. The terms being:
1. Jagdish should pay ₹ 3,000 as his share of Goodwill. 50% of goodwill withdrawn by partners in cash.
2. He should bring ₹ 9,000 as capital for 1/4th share in future profits.
3. Building to be valued at 18,000, Machinery and Furniture to be reduced by 10 %.
4. A provision of 5% on debtors to be made for doubtful debts.
5. Stock to be taken at the value of ₹ 15,000.
Prepare Profit and Loss A/c, Partners’ Current A/c, Balance Sheet of the new firm.
Solution:

Balance Sheet as of 1st April 2018

Working Notes:
1.

2. Write partner’s capital accounts balance as fixed capital balance in the Balance Sheet and transferred current account balance in the Balance Sheet as Partners Current A/c.

3. As shown in the cash account partners’ withdrew half amount of goodwill amount share.

Balbharti Maharashtra State Board 12th Commerce Book Keeping & Accountancy Solutions Chapter 5 Reconstitution of Partnership (Death of Partner) Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Book Keeping & Accountancy Solutions Chapter 5 Reconstitution of Partnership (Death of Partner)

1. Objective questions:

A. Select the most appropriate answer from the alternative given below and rewrite the sentences.

Question 1.
Benefit Ratio is the ratio in which _______________
(a) The old partner gain on the admission of a new partner
(b) The Goodwill of a new partner on admission is credited to old partners
(c) The continuing partners’ benefits on retirement or death of a partner
(d) All partners are benefitted.
Answer:
(c) The continuing partner’s benefits on retirement or death of a partner

Question 2.
The ratio by which existing partners are benefitted _______________
(a) gain ratio
(b) sacrifice ratio
(c) profit ratio
(d) capital ratio
Answer:
(a) gain ratio

Question 3.
Profit and Loss Suspense Account is shown in the new Balance Sheet on _______________ side.
(a) debit
(b) credit
(c) asset
(d) liabilities
Answer:
(c) asset

Question 4.
Death is a compulsory _______________
(a) Dissolution
(b) Admission
(c) Retirement
(d) Winding up
Answer:
(c) Retirement

Question 5.
The balance on the Capital Account of a partners, on his death is transferred to _______________ Account.
(a) Relatives
(b) Legal Heir’s Loan/Executors Loan
(c) Partners’ Capital
(d) Partners’ Loan
Answer:
(b) Legal Heir’s Loan/Executors Loan.

B. Write a word, term, phrase, which can substitute each of the following statements.

Question 1.
Excess of credit side over the debit side of Profit and Loss Adjustment Account.
Answer:
Profit

Question 2.
A person who represents the deceased partner on the death of the partner.
Answer:
Legal Heir’s or Executor

Question 3.
Accumulated past profit kept in the form of reserve.
Answer:
Reserve fund or General reserve

Question 4.
The partner who died.
Answer:
Deceased partner

Question 5.
The proportion in which the continuing partners benefit due to the death of a partner.
Answer:
Gain/Benefit ratio

C. State whether the following statements are True or False with reasons.

Question 1.
A deceased partner is not entitled to the Goodwill of the firm.
Answer:
This statement is False.
A deceased partner’s contribution was there in the development of business and goodwill is the value of the business in terms of money. Hence, a deceased partner is entitled to receive goodwill from the firm.

Question 2.
A deceased partner is entitled to his share of General Reserve.
Answer:
This statement is True.
General reserve is created out of past undistributed profit. Past profit is earned due to the efforts and hard work of all the partners including the partner who is now dead. Hence a deceased partner has right on it and therefore a deceased partner is entitled to receive his share of General reserve.

Question 3.
If goodwill is written off, a Deceased Partner’s Capital Account is debited.
Answer:
This statement is False.
When the benefits of goodwill are given to the deceased partner, his capital account is credited and when such goodwill is written off, capital accounts of remaining partners are debited.

Question 4.
After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner.
Answer:
This statement is True.
After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner as he is the only person who has the legal right to that amount.

Question 5.
For recording the profit or loss up to the death, the Profit and Loss Appropriation Account is operated.
Answer:
This statement is False.
For recording the profit or loss up to the death, the Profit and Loss suspense Account is created and operated. This is because final accounts cannot be prepared on the date of death of a partner. Till that period a separate account called Profit and Loss Suspense A/c is prepared.

D. Fill in the blanks and rewrite the following sentence.

Question 1.
Deceased Partners’ Executors Account is shown on the _______________ side of the Balance Sheet.
Answer:
Liabilities

Question 2.
On the death of a partner, a ratio in which the continuing partners get more share of profits in future is called as _______________ Ratio.
Answer:
Gain

Question 3.
Deceased partners share of profit up to the death is shown on _______________ side of Balance Sheet.
Answer:
Assets

Question 4.
Benefit Ratio = New Ratio – _______________
Answer:
Old Ratio

Question 5.
When Goodwill is raised at its full value and it is written off _______________ Account is to be credited.
Answer:
Goodwill

E. Answer in one sentence only.

Question 1.
What is Gain Ratio?
Answer:
The profit-sharing ratio which is acquired by the surviving or continuing partners on account of the death of any partner is called gain ratio or benefit ratio.

Question 2.
In which ratio general reserve is distributed on the death of a partner?
Answer:
General reserve is distributed on the death of a partner in their old profit sharing ratio.

Question 3.
To whom do you distribute general reserve on the death of a partner?
Answer:
On the death of a partner general reserve is distributed among all partners in their old profit and loss ratio.

Question 4.
How the death of a partner is a compulsory retirement?
Answer:
After the death of a partner, the business is not able to get any kind of services from the deceased partner and so we can say that the death of a partner is like a compulsory retirement.

Question 5.
To which account profit is to be transferred up to the date of his death?
Answer:
Profit of the deceased partner, up to the date of his death, is transferred to his Legal Heir’s/Executor’s Account.

Practical Problems

Question 1.
Rajesh, Rakesh, and Mahesh were equal Partners on 31st March 2019. Their Balance Sheet was as follows 31st March 2019.
Balance Sheet as of 31st March 2019

Mr. Rajesh died on 30th June 2019 and the following adjustment was agreed as:
1. Furniture was to be adjusted to its market price of ₹ 3,40,000.
2. Land and Building were to be depreciated by 10%.
3. Provide R.D.D. @ 5% on debtors.
4. The profit up to the date of death of Mr. Rajesh is to be calculated on the basis of last year’s profit which was ₹ 1,80,000.
Prepare:
1. Profit and Loss Adjustment A/c
2. Partners’ Capital Account
3. Balance Sheet of the continuing firm.
Solution:
In the books of the Partnership Firm


Balance Sheet as of 1st July 2019

Working Note:
The profit of the firm of last year was ₹ 1,80,000.
Proportionate profit up to the date of death for Rajesh is as follows
= 1,80,000 × \(\frac{3}{12} \times \frac{1}{3}\) (Period) (P & L ratio)
= ₹ 15,000 (Profit and Loss Suspense A/c)

Question 2.
Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as of 31st March, 2017 was as follows:
Balance Sheet as of 31st March 2017

On 1st October 2017, Ramesh died and the Partnership deed provided that
1. R.D.D. was maintained at 5% on Debtors.
2. Plant and Machinery and Investment were valued at ₹ 80,000 and ₹ 4,10,000 respectively.
3. Of the creditors an item of ₹ 6,000 was no longer a liability and hence was properly adjusted.
4. Profit for 2017-18 was estimated at ₹ 1,20,000 and Ramesh’s share in it up to the date of his death was given to him.
5. Goodwill of the firm was valued at two times the average profit of the last five years, which were
2012-13 – ₹ 1,80,000
2013-14 – ₹ 2,00,000
2014-15 – ₹ 2,50,000
2015-16 – ₹ 1,50,000
2016-17 – ₹ 1,20,000
Ramesh’s share in it was to be given to him.
6. Salary ₹ 5,000 p.m. was payable to him.
7. Interest on capital at 5% i.e. was payable and on Drawings ₹ 2,000 were charged.
8. Drawings made by Ramesh up to September 2017 were ₹ 5,000 p.m.
Prepare Ramesh’s Capital A/c showing the amount payable to his executors.
Give working of Profit and Goodwill.
Ramesh Capital Balance ₹ 3,41,000
Solution:
In the books of the Partnership Firm

Working Notes:
1. Calculation of share of Goodwill:
(a) Average profit = \(\frac{Total Profit}{No. of years}\)
= \(\frac{1,80,000+2,00,000+2,50,000+1,50,000+1,20,000}{5}\)
= \(\frac{9,00,000}{5}\)
= ₹ 1,80,000

(b) Goodwill = Average profit × No. of years
= 1,80.000 × 2
= ₹ 3,60,000

(c) Share of Goodwill to Ramesh = Goodwill of the firm × Ramesh’s share
= 3,60,000 × \(\frac{1}{6}\)
= ₹ 60,000

2. Calculation of share of profit due to Ramesh:
Share of profit = Last year profit × Share of profit × Period
= 1,20,000 × \(\frac{1}{6} \times \frac{6}{12}\)
= ₹ 10,000 (Profit and Loss Suspense A/c)

3. Interest on Capital is calculated for six months.
∴ Interest = 2,40,000 × \(\frac{6}{12} \times \frac{5}{100}\) = ₹ 6,000

4.

Question 3.
Ram, Madhav, and Keshav are partners sharing profit and losses in the ratio 5 : 3 : 2 respectively. Their Balance Sheet as of 31st March, 2018 was as follows:
Balance Sheet as of 31st March 2018

Keshav died on 31st July 2018 and the following adjustments were agreed by as per the partnership deed.
1. Creditors have increased by ₹ 10,000.
2. Goodwill is to be calculated at 2 years purchase of average profits of 5 years.
3. The profits of the preceding 5 years was
2013-14 – ₹ 90,000
2014-15 – ₹ 1,00,000
2015-16 – ₹ 60,000
2016-17 – ₹ 50,000
2017-18 – ₹ 50,000 (Loss)
Keshav’s share in it was to be given to him.
4. Loose Tools and livestock were valued at ₹ 80,000 and ₹ 1,20,000 respectively.
5. R.D.D. was maintained at ₹ 10,000.
6. Commission ₹ 2,000 p.m. was payable to Keshav. Profit for 2018-19 was estimated at ₹ 45,000 and Keshav’s share in it up to the date of his death was given to him.
Prepare Revaluation A/c, Keshav’s Capital A/c showing the amount payable to his executors.
Solution:
In the books of the Partnership Firm

Working Notes:
1. Calculation of share of Goodwill:
(a) Average profit = \(\frac{\text { Total profit }}{\text { No. of years }}\)
= \(\frac{90,000+1,00,000+60,000+50,000-50,000}{5}\)
= \(\frac{2,50,000}{5}\)
= ₹ 50,000

(b) Goodwill = Average profit × No. of years
= 50,000 × 2
= ₹ 1,00,000

(c) Share of Goodwill to Keshav = Goodwill of the firm × Keshav’s share
= 1,00,000 × \(\frac{2}{10}\)
= ₹ 20,000

2. Calculation of share of profit due to Keshav
Share of profit = Last year profit × Share of Keshav × Period
= 45,000 × \(\frac{2}{10} \times \frac{4}{12}\)
= ₹ 3,000 (Profit and Loss Suspense Account)

Question 4.
Virendra, Devendra, and Narendra were partners sharing profit and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as of 31st March 2019 was as follows.
Balance Sheet as of 31st March 2019

Mr. Virendra died on 31st August 2019 and the partnership deed provided that the event of the death of Mr. Virendra his executors be entitled to be paid out.
1. The capital to his credit at the date of death.
2. His proportion of Reserve at the date of last Balance Sheet.
3. His proportion of Profits to date of death is based on the average profits of the last four years.
4. His share of Goodwill should be calculated at two years purchase of the profits of the last four years for the year ended 31st March were as follows:
2016 – ₹ 40,000
2017 – ₹ 60,000
2018 – ₹ 70,000
2019 – ₹ 30,000
5. Mr. Virendra has drawn ₹ 3,000 p.m. to date of death, There is no increase and decrease in the value of assets and liabilities.
Prepare Mr. Virendra Executors A/c.
Solution:
In the books of the Partnership Firm

Working Notes:
1. Calculation of share of profit:
(a) Average Profit = \(\frac{\text { Total profit }}{\text { No. of years }}\)
= \(\frac{40,000+60,000+70,000+30,000}{4}\)
= \(\frac{2,00,000}{4}\)
= ₹ 50,000

(b) Goodwill = Average profit × No. of years
= 50,000 × 2
= ₹ 1,00,000

(c) Share of Goodwill to Virendra = Goodwill of the firm × Virendra’s share
= 1,00,000 × \(\frac{3}{6}\)
= ₹ 50,000

2. Share of profit due to Virendra
Share of profit = Last year profit × Share of Virendra × Period
= 50,000 × \(\frac{3}{6} \times \frac{5}{12}\)
= ₹ 10,417 (Profit and Loss Suspense A/c)

Question 5.
The Balance Sheet of Sohan, Rohan, and Mohan who were sharing profits and losses in the ratio of 3 : 2 : 1 is as follows:
Balance Sheet as of 31st March 2019

Mr. Rohan died on 1st October 2019 and the following adjustments were made:
1. Goodwill of the firm is valued at ₹ 30,000.
2. Land and Building and Machinery were found to be undervalued by 20%.
3. Investments are valued at ₹ 60,000.
4. Stock to be undervalued by ₹ 5,000 and a provision of 10% as debtors were required.
5. Patents were valueless.
6. Mr. Rohan was entitled to share in profits up to the date of death and it was decided that he may be allowed to retain his drawings as his share of profit. Rohan’s drawings till the date of death were ₹ 25,000.
Prepare Partners’ Capital Accounts.
Solution:
In the books of the Partnership firm

Working Notes:
1.

2. Firm’s goodwill = ₹ 30,000.
DistrIbute among partners in their profit and loss ratio 3 : 2 : 1.

3. Revised value of Land & Building = \(\frac{\text { Book value }}{(100-20)} \times 100\)
= \(\frac{40,000}{80} \times 100\)
= ₹ 50,000.
∴ Increase In the value of Land & Building = Revised value – Book value
= 50,000 – 40,000
= ₹ 10,000.

4. Revised value of Machinery = \(\frac{\text { Book value }}{(100-20)} \times 100\)
= \(\frac{80,000}{80} \times 100\)
= ₹ 1 ,00,000.
∴ Increase in the value of Machinery = 1,00,000 – 80,000 = ₹ 20,000.

5. Patents were valueless means it is a loss for the business.

6. Rohan’s share In profit is ₹ 25,000 and his drawings are ₹ 25,000. Rohan is allowed to retain his drawings as his share of profit. Means write ₹ 25,000 as drawings on the debit side and write ₹ 25,000 as Profit and Loss Suspense A/c on the Credit side of Partners’ Capital A/c.

Balbharti Maharashtra State Board 12th Commerce Book Keeping & Accountancy Solutions Chapter 4 Reconstitution of Partnership (Retirement of Partner) Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Book Keeping & Accountancy Solutions Chapter 4 Reconstitution of Partnership (Retirement of Partner)

A. Select the most appropriate alternatives from those given below and rewrite the sentence.

Question 1.
The profit or loss from revaluation on retirement of partner is shared by ______________
(a) the remaining partners
(b) all the partners
(c) only retiring partner
(d) bank
Answer:
(b) all the partners

Question 2.
Descrease in the value of assets should be ______________ to Profit and Loss Adjustment Account.
(a) debited
(b) credited
(c) added
(d) equal
Answer:
(a) debited

Question 3.
The balance of the capital account of retired partner is transferred to his ______________ account if it is not paid.
(a) loan
(b) personal
(c) current
(d) son’s
Answer:
(a) loan

Question 4.
Gain ratio = ______________ Ratio less Old Ratio.
(a) New
(b) Equal
(c) Capital
(d) Sacrifice
Answer:
(a) New

Question 5.
New Ratio = Old Ratio + ______________ Ratio.
(a) Gain
(b) Capital
(c) Sacrifice
(d) Current
Answer:
(a) Gain

Question 6.
Apte, Bhate and Chitale are sharing 1/2, 3/10, and 1/5 if Apte retire their new ratio will be ______________
(a) 5 : 2
(b) 3 : 2
(c) 5 : 3
(d) 2 : 5
Answer:
(b) 3 : 2

B. Write the word, term, phrase, which can substitute each of the following statement.

Question 1.
Credit balance of Profit and Loss Adjustment Account.
Answer:
Profit on Revaluation Accounts

Question 2.
The ratio in which the continuing partners are benefited due to retirement of partner.
Answer:
Gain Ratio

Question 3.
Debit balance of Revaluation Account.
Answer:
Loss on Revaluation

Question 4.
The ratio which is obtained by deducting Old Ratio from New Ratio.
Answer:
Gain Ratio

Question 5.
Money value of business reputation earned by the firm over a number of years.
Answer:
Goodwill

Question 6.
Partner’s Account where Loss or Profit on revaluation is transferred.
Answer:
Capital/Current Account

C. State whether the following statement are true or false with reasons.

Question 1.
Gain ratio means New ratio minus Old ratio.
Answer:
This statement is True.
As per definition, profit sharing ratio which is acquired by the continuing partners from the retiring partner is called gain ratio. If gain ratio added to old ratio we will get New ratio. It means New ratio = Old ratio + Gain ratio by interchanging the terms, we will get Gain ratio = New ratio – Old ratio.

Question 2.
Retiring partner’s share in profit up to the date of his retirement will be debited to Profit and Loss Suspense Account.
Answer:
This statement is True.
If a partner retires from the firm during the accounting year, the profit or loss for the period from the date of last balance sheet to the date of retirement is calculated on the basis of last year’s profit or average profit and it is credited to retiring partner’s capital A/c and for time being it debited to new account called Profit and Loss Expense A/c. This is because final accounts cannot be prepared on any date during the accounting year.

Question 3.
On retirement of a partner, sacrifice ratio is considered.
Answer:
This statement is False.
On retirement of a partner, his share is acquired by continuing partners in certain proportion and it is nothing but gain for them. Therefore, on retirement of a partner instead of sacrifice ratio gain ratio is considered.

Question 4.
Retiring partner is called an outgoing partner.
Answer:
This statement is True.
When a person retires from the firm due to health issues, financial issues or personal reasons then it is known as person retires from the business and for the business, he is an outgoing partner.

Question 5.
On retirement of a partner, remaining partner will share the goodwill in their profit sharing ratio.
Answer:
This statement is False.
On retirement of a partner, after giving retiring, partner’s share in goodwill and if goodwill is written off, then remaining partners will adjust the goodwill in their new profit sharing ratio. (If raised to full extent and written off)

Question 6.
Retiring partner is not entitled to share in general reserve and accumulated profit.
Answer:
This statement is False.
General reserve and accumulated profit are created out of past undistributed profit, such profits are the outcome of hard work of all the partners including retiring partner. Hence, retiring partner’s has right to share general reserve and accumulated profit. He is therefore, entitled to get share in general reserve and accumlated profit.

D. Fill in the blanks and rewrite the following sentence:

Question 1.
New Ratio (less) ______________ = Gain ratio.
Answer:
Old ratio

Question 2.
Retiring partner’s share of goodwill is ______________ to remaining Partner’s Capital Account.
Answer:
debited

Question 3.
Revaluation A/c is also known as ______________ Account.
Answer:
Profit and Loss Adjustment

Question 4.
On retirement, the balance at a Current Account of a partner is transferred to his ______________ Account.
Answer:
Capital

Question 5.
A proportion in which the continuing partners get the share of retiring partner is known as ______________ Ratio.
Answer:
Gain

E. Answer in one sentence.

Question 1.
What is meant by Retirement of a Partner?
Answer:
Retirement of a partner refers to a process in which a partner leaves the firm or severes his relations with other partners on account of his old age, continued ill health, loss of interest in the firm, misunderstanding amongst the partners, etc.

Question 2.
What is Benefit Ratio?
Answer:
Profit sharing ratio which is acquired by the continuing partners on account of retirement or death of a partner is called Benefit Ratio or Gain Ratio.

Question 3.
What is New Ratio?
Answer:
The ratio in which profits or losses are shared by the continuing partners after retirement of a partner is called New Profit Sharing Ratio.

Question 4.
How is the amount due to the retiring partner settled?
Answer:
The amount due to a retiring partner is settled as per the terms of partnership agreement or otherwise mutually agreed upon either in lumpsum or in instalments.

Question 5.
How is Gain Ratio calculated?
Answer:
Gain ratio is calculated at the time of retirement of a partner by deducting old ratio from new ratio.

Question 6.
Why is retiring partner’s capital account credited with goodwill?
Answer:
Goodwill is an intangible assets or benefits accrued to the firm and its benefits are transferred to retiring partner’s Capital A/c by giving credit.

Practical Problems

Question 1.
The Balance Sheet of Mr Mama, Kaka and Mr Baba who shared profits and losses as 4 : 3 : 3 respectively.
Balance Sheet as on 31st March, 2018

Kaka retires on 1st April, 2018 on the following terms.
1. The share of Kaka in Goodwill of the firm is valued at ₹ 2,700.
2. Furniture to be depreciated by 10% and Motor car by 12.5%.
3. Live Stock to be appreciated by 10% and Plant by 20%.
4. A provision of ₹ 2,000 to be made for a claim of compensation.
5. R.D.D. is no longer necessary.
6. The amount payable to Kaka should be transferred to his Loan A/c.
Prepare Profit and Loss Adjustment A/c, Partners’ Capital A/cs and Balance Sheet of the new firm.
Solution:
In the books of Partnership Firm

Balance Sheet as on 1st April, 2018


Working Notes:
1. R.D.D. is no longer require means it is a gain for firm.
2. A provision of ₹ 2,000 to be made for a claim of compensation, ₹ 2,000 is recorded on debit side of Profit and Loss Adjustments A/c and then on liability side of Balance Sheet.
3. Total payable amount to Kaka ₹ 20,175 is recorded as Kaka’s Loan A/c.

Question 2.
The Balance Sheet of Ram, Shyam and Ghanshyam sharing profits and losses in 3 : 2 : 1 respectively and their position on 31-3-19 were as follows:
Balance Sheet as on 31st March, 2019

Ghanshyam retired on 1st April, 2019 on the following terms:
1. Building and Investment to be appreciated by 5% and 10% respectively.
2. Provision for Doubtful Debts to be created at 5% on Debtors.
3. The provision of ₹ 3,000 be made in respect of Outstanding Salary.
4. Goodwill of the firm is valued at ₹ 90,000 and partners decide that goodwill should be written back.
5. The amount payable to the retiring partner be transferred to his Loan A/c.
Prepare: Profit and Loss Adjustment A/c, Partners’ Capital A/c, Balance Sheet of new firm.
Solution:
In the books of Partnership Firm


Balance Sheet as on 1st April, 2019

Working Notes:
1. Provision of ₹ 3,000 for outstanding salary is recorded on debit side of Profit and Loss Adjustment A/c and then on the Liability side of Balance Sheet.
2. Goodwill of the firm is valued at ₹ 90,000 and share of retiring partner in it is ₹ 15,000 (\(\frac{1}{6}\)th part) and it is to be written back means it is to be shared by remaining partners in their profit-loss ratio.

Question 3.
The Balance Sheet of the Anu, Renu and Dinu is as follows, and the partners are sharing profits and losses in the proportion of 2 : 2 : 1 respectively.
Balance Sheet as on 31st March, 2019

Dinu retires from the firms on 1st April, 2019 on the following terms:
1. The assets are to be revalued as : freehold property ₹ 30,000, Machinery ₹ 5,000, Furniture ₹ 12,000, All debtors are good.
2. Goodwill of the firm be valued at thrice the average profit for preceding five years. Profits of the firm for the year.
2014-15 – ₹ 14,500
2015-16 – ₹ 10,500
2016-17 – ₹ 10,000
2017-18 – ₹ 16,000
2018-19 – ₹ 10,000
3. Dinu should be paid ₹ 3,000 by cheque.
4. The Balance of Dinu’s Capital A/c should be kept in the business as loan.
Prepare: Profit and Loss Adjustment A/c, Capital Accounts of Partners, Balance Sheet of the new firm.
Solution:
In the books of Partnership Firm

Balance Sheet as on 1st April 2019

Working Notes:
1. Average profit = \(\frac{\text { Total Profit }}{\text { No. of years }}\)
= \(\frac{1000+10,500+10,000+16,000+10,000}{5}\)
= \(\frac{47,500}{5}\)
= ₹ 9,500
Goodwill = Avg. profit × No. of years
= 9,500 × 3 years
= ₹ 28,500
Goodwill value given in balance sheet = ₹ 30,000
New value arrived at = ₹ 28,500
Loss due to revaluation = ₹ 1,500
To be recorded in P & L Adj. A/c – Dr. Side.
In asset side of Balance sheet, write ₹ 28,500 for Goodwill.

2. Balance of Bank A/c = Opening Balance – Cheque given to Dinu
= 5,000 – 3,000
= ₹ 2,000

Question 4.
Rohan, Rohit and Sachin are partners in a firm sharing profits and losses in the proportion 3 : 1 : 1 respectively. Their balance sheet as on 31st March, 2018 is as shown below:
Balance Sheet as on 31st March, 2018

On 1st April, 2018 Sachin retired and the following adjustments have been agreed upon:
1. Goodwill was revalued on ₹ 50,000.
2. Assets and Liabilities were revalued as follows:
Debtors ₹ 50,000, Live stock ₹ 45,000, Building ₹ 1,25,000, Plant and Machinery ₹ 30,000, Motor truck ₹ 95,000 and Creditors ₹ 30,000.
3. Rohan and Rohit contributed additional capital through Net Banking of ₹ 50,000 and ₹ 25,000 respectively.
4. Balance of Sachin’s Capital Account is transferred to his Loan Account.
Give Journal entries in the books of new firm.
Solution:
Journal entries in the books of Partnership Firm

Working Notes:
1. Calculation of Profit on Revaluation of Assets and Liabilities.

Question 5.
Shah, Lodha and Dhole were partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as on 31st March, 2019 is given below:
Balance Sheet as on 31st March, 2019

On 1st April, 2019 Mr. Lodha retired from the firm on the following terms:
1. Goodwill is to be valued at an average profits and losses of the last five years which were as follows:
Year – Profit/Loss
2015 – ₹ 35,000
2016 – ₹ 20,000
2017 – ₹ 30,000
2018 – ₹ 20,000
2019 – ₹ 25,000
2. Computers to be depreciated by 10%.
3. Furniture to be revalued at ₹ 27,500.
4. Vehicles appreciated by 20%.
5. R.D.D. was no longer necessary.
6. Shah and Dhole will share the future profits and losses in the ratio of 2 : 1.
7. It was decided that goodwill should not appear in the books of a new firm and amount payable to Lodha is to be transferred to his Loan A/c.
Prepare: Profit and Loss Adjustment A/c, Partners’ Capital Accounts, Balance Sheet of new firm.
Solution:
In the books of Partnership Firm

Balance Sheet as on 1st April 2019

Working Note:
Average profit = \(\frac{\text { Total Profit }}{\text { No. of Years }}\)
= \(\frac{35,000+20,000+30,000+20,000+25,000}{5}\)
= \(\frac{1,30,000}{5}\)
= ₹ 26,000
∴ Goodwill = ₹ 26,000
Goodwill should not appear in the books of accounts.
Therefore, ₹ 26,000 credited in Partners’ Capital Account in partners’ old profit and loss ratio. ₹ 26,000 will be debited in Partners’ Capital Account in partners’ new profit-loss ratio.

Balbharti Maharashtra State Board 12th Biology Textbook Solutions Chapter 7 Plant Growth and Mineral Nutrition Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Biology Solutions Chapter 7 Plant Growth and Mineral Nutrition

1. Multiple choice questions

Question 1.
Which of the hormone can replace vernalization ?
(a) Auxin
(b) Cytokinin
(c) Gibberellins
(d) Ethylene
Answer:
(c) Gibberellins

Question 2.
The principle pathway of water translocation in angiosperms is ………………..
(a) Sieve cells
(b) Sieve tube elements
(c) Xylem
(d) Xylem and phloem
Answer:
(c) Xylem

Question 3.
Abscissic acid controls ………………..
(a) cell division
(b) leaf fall and dormancy
(c) shoot elongation
(d) cell elongation and wall formation
Answer:
(b) leaf fall and dormancy

Question 4.
Which is employed for artificial ripening of banana fruits?
(a) Auxin
(b) Ethylene
(c) Cytokinin
(d) Gibberellin
Answer:
(b) Ethylene

Question 5.
Which of the following is required for stimulation of flowering in plants?
(a) Adequate oxygen
(b) Definite photoperiod
(c) Adequate water
(d) Water and minerals
Answer:
(b) Definite photoperiod

Question 6.
For short day plants, the critical period is ………………..
(a) light
(b) dark/night
(c) UV rays
(d) Both (a) and (c)
Answer:
(b) dark/night

Question 7.
Which of the following is NOT day neutral plant?
(a) Tomato
(b) Cotton
(c) Sunflower
(d) Soybean
Answer:
(d) Soybean

Question 8.
Essential macro elements are ………………..
(a) manufactured during photosynthesis
(b) produced by enzymes
(c) obtained from soil
(d) produced by growth hormones
Answer:
(c) obtained from soil

Question 9.
Function of Zinc is ………………..
(a) closing of stomata
(b) biosynthesis of 3-IAA
(c) synthesis of chlorophyll
(d) oxidation of carbohydrates
Answer:
(b) biosynthesis of 3-LAA

Question 10.
Necrosis means ………………..
(a) yellow spot on the leaves
(b) death of tissue
(c) darkening of green colour in leaves
(d) wilting of leaves
Answer:
(b) death of tissue

Question 11.
Conversion of nitrates to nitrogen is called ………………..
(a) ammonification
(b) nitrification
(c) nitrogen fixation
(d) denitrification
Answer:
(d) denitrification

Question 12.
How many molecules of ATP are required to fix one molecule of nitrogen?
(a) 12
(b) 20
(c) 6
(d) 16
Answer:
(d) 16

2. Very short answer questions

Question 1.
Enlist the phases of growth in plants.
Answer:
The three phases of growth are phase of cell division, phase of cell enlargement and phase of cell maturation.

Question 2.
Give full form of IAA.
Answer:
Full form is Indole Acetic Acid.

Question 3.
What does it mean by ‘open growth’?
Answer:
In plants the growth is indeterminate and takes place throughout the life at specific regions having meristems.

Question 4.
Plant stress hormone.
Answer:
Abscissic acid.

Question 5.
What is denitrification?
Answer:
Anaerobic bacteria can convert nitrates of soil back into nitrogen gas. That process performed by denitrifying bacteria is denitrification.

Question 6.
Bacteria responsible for conversion of nitrite to nitrate.
Answer:
Nitrobacter.

Question 7.
What is the role of gibberellins in rosette plants?
Answer:
In rosette plants like beet and cabbage, bolting, i.e. elongation of internodes before flowering is observed due to effect of gibberellins.

Question 8.
Vernalization
Answer:
The response of plant to the influence of low temperature on flowering in plants is called vernalization.

Question 9.
Photoperiodism
Answer:
The response of plant to the influence of light for initiation of flowering is known as photoperiodism.

Question 10.
What is grand period of growth?
Answer:
There are three phases of growth and the total time required for all phases to occur is called grand period of growth.

3. Short Answer Questions

Question 1.
(i) Differentiation
Answer:

1. It is a process of maturation of cells derived from apical meristems.
2. Differentiation is a permanent change in structure and function of cells that leads to its maturation.
3. Cell undergoes major anatomical and physiological change during differentiation process.
4. In hydrophytic plants parenchyma cells develop large schizogenous cavities which help them in aeration, buoyancy and mechanical support.

(ii) Redifferentiation
Answer:

1. It is a process in which cells produced by de-differentiation lose their capacity of division and become mature.
2. The cells mature to perform specific function.
3. Interfascicular cambium is formed by process of dedifferentiation loses its capacity to divide.
4. Secondary xylem and secondary phloem is formed form this cambium in vascular cylinder.

Question 2.
Arithmetic growth and Geometric growth
Answer:

Arithmetic growth	Geometric growth
1. In arithmetic growth only one daughter cell continues to divide, while the other undergoes differentiation and maturation.	1. In geometric growth both the daughter cells continue to divide and redivide again and again.
2. Rate of growth is constant.	2 Rate growth is initially slow but later on rapid rate.
3. Linear curve is obtained.	3. Exponential curve is obtained.
4. Mathematical expression is Lt = Lo + rt whereLt = length of time ‘t’ Lo = Length at time zero rt = growth rate, t = time of growth	4. Mathematical expression is Wt = Woe rt where, Wt = final size, Wo = initial size, r = growth rate, t = time of growth E = base of natural logarithm
5. e.g. Elongation of root	5. e.g. Divisions of zygote during embryo development.

Question 3.
Enlist the role and deficiency symptoms of: (a) nitrogen (b) phosphorus (c) potassium.
Answer:
(a) Nitrogen:
Role : Constituent of proteins as amino acids, nucleic acids, vitamins, hormones, coenzymes, ATP and chlorophyll molecule.
Deficiency symptoms : stunted growth and chlorosis.

(b) Phosphorus:
Role : Constituent of cell membrane, certain proteins, nucleic acids and nucleotides, required for all phosphorylation reactions.
Deficiency symptoms : Poor growth, leaves dull green

(c) Potassium :
Role : Determination of anion – cation balance in cell, necessary for protein synthesis, involved in formation of cell membrane, opening and closing of stomata, activates enzymes, helps in maintenance of turgidity of cells.
Deficiency symptom : Yellow edges in leaves, premature death.

Question 4.
What is short day plant? Give any two examples.
Answer:
The plants which flower when the day length or light period is shorter than the critical photoperiod are called short day plants or SDP
SDPs usually flower during winter and late summer.
Examples – Dahlia, Aster, Tobacco, Chrysanthemum, Soybean (Glycine max) and Cocklebur (Xanthium).

Question 5.
What is vernalization? Give its significance.
Answer:
A low temperature or chilling treatment that induces early flowering in plants is known as vernalization.

Significance:

1. Due to chilling treatment crops can be produced earlier.
2. Crops can be grown in areas where they do not grow naturally.

4. Long answer questions

Question 1.
Explain sigmoid growth curve with the help of diagram.
Answer:

1. When growth occurs in plants three distinct phases of growth are noticed.
2. Phase of cell formation is first phase where meristematic cells divide and new cells added.
3. In phase of cell enlargement newly formed cells elongate and with turgidity there is cell enlargement.
4. In phase of cell maturation cells get differentiated.
5. When we compare the growth rate it differs in these three phases.
6. In first phase or lag phase it is slow, while in log phase or exponential phase, growth rate accelerates and it reaches maximum.
7. In stationary phase of maturation growth rate slows down and comes to steady state.
8. When this changing rate of growth is plotted against time duration in a graph a sigmoid or S-shaped growth curve is obtained.

Question 2.
Describe the types of plants on the basis of photoperiod required, with the help of suitable examples.
Answer:

1. Effect of light duration on flowering of plants is known as photoperiodism.
2. Depending on photoperiodic response, plants are categorised into three types – Short day plants, long day plants and day neutral plants.

1. Short day plants : Plants that flower under short day length conditions are called short day plants. Plants such as Dahlia, Xanthium, Soybean, Aster, Tobacco and Chrysanthemum are short day plants or SDR. Short day plants require a long uninterrupted dark period for flowering. Therefore, they are also called long night plants.

2. Long day plants : Plants that flower only when they are exposed to light period longer than their critical photoperiod are called long day plants or LDP Long day plants require a short dark or night period for flowering. Hence, they are also called short night plants. Plants such as radish, spinach, wheat, poppy, cabbage, pea, sugar beet, etc. are long day plants.

3. Day neutral plants : Plants in which the flowering is not affected by the day length period are called day neutral plants or DNP or photoneutral plants. Plants such as cucumber, sunflower, cotton, balsam, maize, tomato, etc. are day neutral plants.

Question 3.
Explain biological nitrogen fixation with example.
Answer:

1. Conversion of atmospheric nitrogen into nitrogenous salts to make it available to plants for its update is described as nitrogen fixation.
2. When living organisms are involved in nitrogen fixation process it is known as biological nitrogen fixation.
3. The process is mainly carried out by prokaryotic organisms, i.e. different kinds of bacteria present in soil.
4. The nitrogen fixing organisms are known as diazotrophs or nitrogen fixers and about 70% nitrogen is fixed by them.
5. The nitrogen fixers are either free living bacteria or symbiotic associated with other higher plants e.g. Rhizobium.
6. The cyanobacteria have specialized cells heterocysts which help in process of nitrogen fixation.
7. Nitrogen fixation is high energy requiring process and 16 ATP molecules are needed for fixation of one molecule of nitrogen to ammonia.
8. Soil bacteria like Nitrosomonas, Nitrosocyccus convert ammonia to nitrate and the Nitrobacter convert nitrite to nitrate. This is known as nitrification, biological oxidation.
9. These bacteria are chemoautotrophic and utilize these processes for their metabolism.
10. Fabaceae plants like pea, bean have root nodules which harbour symbiotic bacterium Rhizobium which fixes nitrogen. It is host specific, soil bacterium, Nitrogen is made available to host plant.

Question 4.
Write on macro and micro nutrients required for plant growth.
Answer:

1. Plants absorb mineral nutrients from their surroundings.
2. For a proper growth of plants about 35 to 40 different elements are required.
3. Plants absorb these nutrients in ionic or dissolved form from soil with their root system e.g. Phosphorus as PO₄^–, Sulphur as SO₄^2- etc.
4. Based on their requirement in quantity, they are classified as major nutrients or macronutrients and those needed in small amounts Eire minor or micronutrients.
5. Macroelements are required in large amounts, as they play nutritive and structural roles e.g. C, H, O, R Mg, N, K, S and Ca. – Ca pectate cell wall component, Mg component of chlorophyll.
6. C, H, O are non-mineral major elements obtained from air and water e.g. CO₂ is source of carbon, Hydrogen from water.
7. Microelements are required in traces as they mainly have catalytic role as co-factors or activators of enzymes.
8. Microelements may be needed for certain activity in life cycle of plant e.g. B for pollen germination, Si has protective role during stress conditions and fungal attacks, Al enhances availability of phosphorus.
9. The important micronutrients for plant growth are Mn, B, Cu, Zn, Cl.

Balbharti Maharashtra State Board 12th Chemistry Textbook Solutions Chapter 8 Transition and Inner Transition Elements Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Chemistry Solutions Chapter 8 Transition and Inner Transition Elements

1. Choose the most correct option.

Question i.
Which one of the following is diamagnetic
a. Cr^3⊕
b. Fe^3⊕
c. Cu^2⊕
d. Sc^3⊕
Answer:
d. Sc^3⊕

Question ii.
Most stable oxidation state of Titanium is
a. +2
b. +3
c. +4
d. +5
Answer:
c. +4

Question iii.
Components of Nichrome alloy are
a. Ni, Cr, Fe
b. Ni, Cr, Fe, C
c. Ni, Cr
d. Cu, Fe
Answer:
(c) Ni, Cr

Question iv.
Most stable oxidation state of Ruthenium is
a. +2
b. +4
c. +8
d. +6
Answer:
(b) +4

Question v.
Stable oxidation states for chromium are
a. +2, +3
b. +3, +4
c. +4, +5
d. +3, +6
Answer:
d. +3, +6

Question vi.
Electronic configuration of Cu and Cu⁺¹
a. 3d¹⁰, 4s⁰; 3d⁹, 4s⁰
b. 3d⁹, 4s¹; 3d⁹4s⁰
c. 3d¹⁰, 4s¹; 3d¹⁰, 4s⁰
d. 3d⁸, 4s¹; 3d¹⁰, 4s⁰
Answer:
c. 3d¹⁰, 4s¹; 3d¹⁰, 4s°

Question vii.
Which of the following have d0s0 configuration
a. Sc^3⊕
b. Ti^4⊕
c. V^5⊕
d. all of the above
Answer:
d. All of the above

Question viii.
Magnetic moment of a metal complex is 5.9 B.M. Number of unpaired electrons in the complex is
a. 2
b. 3
c. 4
d. 5
Answer:
d. 5

Question ix.
In which of the following series all the elements are radioactive in nature
a. Lanthanoids
b. Actinoids
c. d-block elements
d. s-block elements
Answer:
b. Actinides

Question x.
Which of the following sets of ions contain only paramagnetic ions
a. Sm^3⊕, Ho^3⊕, Lu^3⊕
b. La^3⊕, Ce^3⊕, Sm^3⊕
c. La^3⊕, Eu^3⊕, Gd^3⊕
d. Ce^3⊕, Eu^3⊕, Yb^3⊕
Answer:
d. Ce^3⊕, Eu^3⊕, Yb^3⊕

Question xi.
Which actinoid, other than uranium, occur in a significant amount naturally?
a. Thorium
b. Actinium
c. Protactinium
d. Plutonium
Answer:
a. Thorium

Question xii.
The flux added during extraction of Iron from hematite are its?
a. Silica
b. Calcium carbonate
c. Sodium carbonate
d. Alumina
Answer:
b. Calcium carbonate

2. Answer the following

Question i.
What is the oxidation state of Manganese in
\(\text { (i) } \mathrm{MnO}_{4}^{2-}(\mathrm{ii}) \mathrm{MnO}_{4}^{-} \text {? }\)
Answer:
Oxidation state of Manganese in
\((i) \mathrm{MnO}_{4}^{2-} is +6
(ii) \mathrm{MnO}_{4}^{-}is +7\)

*Question ii.
Give uses of KMnO₄

Question iii.
Why salts of Sc^3⊕, Ti^4⊕, V^5⊕ are colorless?
Answer:
(i) Sc³⁺ salts are colourless :

• The electronic configuration of ₂₁Sc [Ar| 3d¹ 4s² and Sc³⁺ [Ar] d°.
• Since there are no unpaired electrons in 3d subshell, d → d transition is not possible.
• Therefore, Sc³⁺ ions do not absorb the radiations in the visible region. Hence salts of Sc³⁺ are colourless (or white).

(ii) Ti⁴⁺ salts are colourless :

• The electronic configuration of ₂₂Ti [Ar] 3d²4s² and Ti⁴⁺ : [Ar] d°
• Since there are no unpaired electrons in 3d subshell, d-*d transition is not possible.
• Therefore, Ti³⁺ ions do not absorb the radiation in visible region. Hence salts of Ti³⁺ are colourless.

(iii) Vs⁵⁺ salts are eolourless :

• The electronic configuration of ₂₃V : [Ar] 3d³4s² and V⁵⁺ : [Ar] 3d°
• Since there are no unpaired electrons in 3d-subshell, d – d transition is not possible.
• Therefore, V⁵⁺ ions do not absorb the radiations in the visible region. Hence, V⁵⁺ salts are colourless, a

Question iv.
Which steps are involved in the manufacture of potassium dichromate from chromite ore?
Answer:
Steps in the manufacture of potassium dichromate from chromite ore are :

• Concentration of chromite ore.
• Conversion of chromite ore into sodium chromate (Na₂CrO₄).
• Conversion of Na₂CrO₄ into sodium dichromate (Na₂Cr₂O₇).
• Conversion of Na₂Cr₂O₇ into K₂Cr₂O₇.

Question v.
Balance the following equation
(i) KMnO₄ + H₂C₂O4 + H₂SO₄ → MnSO₄ + K₂SO₄ + H₂O + O₂
(ii) K₂Cr₂O₇ + KI + H₂SO₄ → K₂SO₄ + Cr₂(SO₄)₃ + 7H₂O + 3I₂
Answer:
(i) 2KMnO₄ + 3H₂SO₄ + 5H₂C₂O₄ → K₂SO₄ + 2MnSO₄ + 8H₂O + 10CO₂
(ii) Acidified potassium dichromate oxidises potassium iodide (KI) to iodine (I2). Potassium dichromate is reduced to chromic sulphate. Liberated iodine turns the solution brown K₂Cr₂O₇ + 6KI + 7H₂SO₄ → 4K₂SO₄ + Cr₂(SO₄)₃ + 7H₂O + 3I₂ [Oxidation state of iodine increases from – 1 to zero]

Question vi.
What are the stable oxidation states of plutonium, cerium, manganese, Europium?
Answer:
Stable oxidation states :
Plutonium + 3 to + 7
Cerium + 3, + 4
Manganese + 2, + 4, + 6, + 7
Europium +2, +3

Question vii.
Write the electronic configuration of chromium and copper.
Answer:
Chromium (₂₄Cr) has electronic configuration,
₂₄Cr (Expected) : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁴ 4s²
(Observed) : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵ 4s¹

Explanation :

• The energy difference between 3d- and 45-orbitals is very low.
• d-orbitals being degenerate, they acquire more stability when they are half-filled (3d⁵).
• Therefore, there arises a transfer of one electron from 45-orbital to 3d-orbital in Cr giving more stable half-filled orbital. Hence, the configuration of Cr is [Ar] 3d⁵ 4s¹ and not [Ar] 3d⁴ 4s².

Copper (₂₉CU) has electronic configuration,
₂₉Cu (Expected) : Is² 2s³ 2p⁶ 3s³ 3p⁶ 3d⁹ 4s²
(Observed) : Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹⁰ 4s¹

Explanation :

• The energy difference between 3d- and 45-orbitals is very low.
• d-orbitals being degenerate, they acquire more stability when they are completely filled.
• Therefore, there arises a transfer of one electron from 45-orbital to 3d-orbital in Cu giving completely filled more stable d-orbital.

Hence, the configuration of Cu is [Ar] 3d¹⁰ 4s¹ and not [Ar] 3d⁹ 4s².

Question viii.
Why nobelium is the only actinoid with +2 oxidation state?
Answer:

• Nobelium has the electronic configuration ₁₀₂NO : [Rn] 5f¹⁴6d°7s²
• No²⁺ : [Rn] 5f¹⁴6d°
• Since the 4f subshell is completely filled and 6d° empty, + 2 oxidation state is the stable oxidation state.
• Other actinoids in + 2 oxidation state are not as stable due to incomplete 4f subshell.

Question ix.
Explain with the help of balanced chemical equation, why the solution of Ce(IV) is prepared in acidic medium.
Answer:
Ce⁴⁺ undergoes hydrolysis as, Ce⁴⁺+ 2H₂O → Ce(OH)₄ + 4H⁺.
Due to the presence of H⁺ in the solution, the solution is acidic.

Question x.
What is meant by ‘shielding of electrons’ in an atom?
Answer:
The inner shell electrons in an atom screen or shield the outermost electron from the nuclear attraction. This effect is called the shielding effect.

The magnitude of the shielding effect depends upon the number of inner electrons.

Question xi.
The atomic number of an element is 90. Is this element diamagnetic or paramagnetic?
Answer:
The 90th element thorium has an electronic configuration, [Rn] 6d²7s². Since it has 2 unpaired electrons it is paramagnetic.

3. Answer the following

Question i.
Explain the trends in atomic radii of d-block elements
Answer:

1. The atomic or ionic radii of 3-d series transition elements are smaller than those of representative elements, with the same oxidation states.
2. For the same oxidation state, there is an increase in nuclear charge and a gradual decrease in ionic radii of 3d-series elements is observed. Thus ionic radii of ions with oxidation state + 2 decreases with increase in atomic number.
3. There is slight increase is observed in Zn²⁺ ions. With the higher oxidation states, effective nuclear charge increases. Therefore ionic radii decrease with increase in oxidation state of the same element. For example, Fe²⁺ ion has ionic radius 77 pm whereas Fe³⁺ has 65 pm.

Question ii.
Name different zones in the Blast furnace. Write the reactions taking place in them.
Answer:
(i) Zone of combustion : The hot air oxidises coke to CO which is an exothermic reaction, due to which the temperature of furnace rises.
C + ^1/2 O₂ → CO ΔH= – 220kJ
Some part of CO dissociates to give finely divided carbon and O₂.
2CO → 2C + O₂
The hot gases with CO rise up in the furnace and heats the charge coming down. CO acts as a fuel as well as a reducing agent.

(ii) Zone of reduction : At about 900 °C, CO reduces Fe₂O₃ to spongy (or porous) iron.
Fe₂O₃ + 3CO → 2Fe + 3CO₂
Carbon also reduces partially Fe₂0₃ to Fe.
Fe₂O₃ + 3C → 2Fe + 3CO

(iii) Zone of slag formation : At 1200 K limestone, CaCO₃ in the charge, decomposes and forms a basic flux CaO which further reacts at 1500 K with gangue (SiO₂, Al₂O₃) and forms a slag of CaSiO₃ and Ca₃AlO₃.
CaCO₃ + CaO + CO₂.
CaO + SiO₂ → CaSiO₃
12CaO + 2Al₂O₃ → 4Ca₃AlO₃ + 3O₂

The slag is removed from the bottom of the furnace through an outlet.

(iv) Zone of fusion : The impurities in ore like MnO₂ and Ca₃(PO₄)₂ are reduced to Mn and P while SiO₂ is reduced in Si. The spongy iron moving down in the furnace melts in the fusion zone and dissolves the impurities like C, Si, Mn, phosphorus and sulphure. The molten iron collects at the bottom of furnace. The lighter slag floats on the molten iron and prevents its oxidation.

The molten iron is removed and cooled in moulds. It is called pig iron or cast iron. It contains about 4% carbon.

Question iii.
What are the differences between cast iron, wrought iron and steel?
Answer:

Cast iron	Wrought iron	Steel
(1) Hard and brittle (2) Contains 4% carbon. (3) Used for making pipes, manu­facturing automotive parts, pots, pans, utensils	(1) Very soft (2) Contains less than 0.2% carbon. (3) Used for making pipes, bars for stay bolts, engine bolts and rivets.	(1) Neither too hard nor too soft. (2) Contains 0.2 to 2% carbon (3) Used in buildings infrastruc­ture, tools, ships, automobiles, weapons etc.

Question iv.
Iron exhibits +2 and +3 oxidation states. Write their electronic configuration. Which will be more stable? Why?
Answer:
The electronic configuration of Fe^{2 +} and Fe³⁺ :
Fe²⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁶
Fe³⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵

Due to loss of two electrons from the 4.v-orbital and one electron from the 3d-orbital, iron attains 3⁺ oxidation state. Since in Fe³⁺, the 3d-orbital is half-filled, it gets extra stability, hence Fe³⁺ is more stable than Fe²⁺.

Question v.
Give the similarities and differences in elements of 3d, 4d and 5d series.
Answer:
Similarity :

• They are placed between .s-block and p-block of the periodic table.
• All elements are metals showing metallic characters.
• Some are paramagnetic.
• Most of them give coloured compounds.
• They have catalytic properties.
• They form complexes.
• They have variable oxidation states.

Differences :

• In 4d and 5d series lanthanide and actinoid contraction is observed. In 3d series atomic size changes are less marked.
• 4d and 5d elements have high coordination numbers compared to 3d elements.
• 4d and 5d series have similar properties whereas 3d series have different properties.

Question vi.
Explain trends in ionisation enthalpies of d-block elements.
Answer:

1. The ionisation enthalpies of transition elements are quite high and lie between those of 5-block and p-block elements. This is because the nuclear charge and atomic radii of transition elements lie between those of 5-block and p-block elements.
   
2. As atomic number of transition elements increases along the period and along the group, first ionisation enthalpy increases even though the increase is not regular.
3. If IE_1; IE₂ and IE₃ are the first, second and third ionisation enthalpies of the transition elements, then IE₁ < IE₂ < IE₃.
4. In the transition elements, the added last differentiating electron enters into (n – 1) d-orbital and shields the valence electrons from the nuclear attraction. This gives rise to the screening effect of (n – 1) d-electrons.
5. Due to this screening effect of (n – 1) d electrons, the ionisation enthalpy increases slowly and the increase is not very regular.

Question vii.
What is meant by diamagnetic and paramagnetic metal? Give one example of diamagnetic and paramagnetic transition metal and lanthanoid metal.
Answer:

1. Paramagnetic substances : When a magnetic field is applied, substances which are attracted towards the applied magnetic field are called paramagnetic substances. Example : Ni²⁺, Pr⁴⁺
2. Diamagnetic substances : When a magnetic field is applied, substances which are repelled by the magnetic fields are called diamagnetic substances. Example : Zn²⁺, La³⁺
3. Ferromagnetic substances : When a magnetic field is applied, substances which are attracted very strongly are called ferromagnetic substances. These substances can be magnetised. For example, Fe, Co, Ni are ferromagnetic.

Question viii.
Why the ground-state electronic configurations of gadolinium and lawrencium are different than expected?

Question ix.
Write steps involved in the metallurgical process
Answer:
The various steps and principles involved in the extraction of pure metals from their ores are as follows.:

• Concentration of ores in which impurities (gangue) are removed.
• Conversion of ores into oxides or other reducible compounds of metals.
• Reduction of ores to obtain crude metals.
• Refining of metals giving pure metals.

Question x.
Cerium and Terbium behaves as good oxidising agents in +4 oxidation state. Explain.
Answer:

• The most stable oxidation state of lanthanoids is +3.
• Hence, Ce⁴⁺ (cerium) and Tb⁴⁺ (terbium) tend to get + 3 oxidation state which is more stable.
• Since they get reduced by accepting electron, they are good oxidising agents in + 4 oxidation state.

Question xi.
Europium and Ytterbium behave as good reducing agents in +2 oxidation state explain.
Answer:

• The most stable oxidation state of lanthanoids is + 3.
• Hence, Eu²⁺ and Yb²⁺ tend to get + 3 oxidation states by losing one electron.
• Since they get oxidised, they are good reducing agents in + 2 oxidation state.

Activity :
Make groups and each group prepare a PowerPoint presentation on the properties and applications of one element. You can use your imagination to create some innovative ways of presenting data.

You can use pictures, images, flow charts, etc. to make the presentation easier to understand. Don’t forget to cite the reference(s) from where data for the presentation is collected (including figures and charts). Have fun!

12th Chemistry Digest Chapter 8 Transition and Inner Transition Elements Intext Questions and Answers

Do you know? (Textbook Page No 165)

Question 1.
In which block of the modern periodic table are the transition and inner transition elements placed?
Answer:
The transition elements are placed in d-block and inner transition elements are placed in f-block of the modern periodic table.

Use your brain power! (Textbook Page No 167)

Question 1.
Fill in the blanks with correct outer electronic configurations.
Answer:
Answers are given in bold.

Try this….. (Textbook Page No 168)

Question 1.
Write the electronic configuration of Cr and Cu.
Answer:
₂₄Cr : [Ar] 3d⁵4s¹ ₃₀Cu : [Ar] 3d¹⁰4s¹

Can you tell? (Textbook Page No 168)

Question 1.
Which of the first transition series element shows the maximum number of oxidation states and why?
Answer:

• ₂₅Mn shows the maximum number of oxidation states, + 2 to +7.
• ₂₅Mn : [Ar] 3d⁵4s³
• Mn has incompletely filled J-subshell.
• Due to small difference in energy between 3d and 4s -orbitals, Mn can lose (or share) electrons from both the orbitals.
• Hence Mn shows oxidation states from + 2 to +7.

Question 2.
Which elements in the 4d and 5d-series will show maximum number of oxidation states?
Answer:
In 4d-series maximum number of oxidation states are for Ruthenium Ru ( + 2, +3, + 4„ +6, +7, + 8). In 5d-series, maximum number of oxidation states are for Osmium, Os ( + 2 to + 8).

Try this ….. (Textbook Page No 168)

Question 1.
Write the electronic configuration of Mn⁶⁺, Mn⁴⁺, Fe⁴⁺, Co⁵⁺, Ni²⁺.
Answer:

Ions	Electronic configuration of valence shell
Mn6+	[Ar] 3d1
Mn4+	[Ar] 3d3
Fe4+	[Ar] 3d4
Co5+	[Ar] 3d4
Ni2+	[Ar] 3d8

Try this ….. (Textbook Page No 171)

Question 1.
Pick up the paramagnetic species from the following : Cu¹⁺, Fe³⁺, Ni²⁺, Zn²⁺, Cd²⁺, Pd²⁺.
Answer:
The following ions are paramagnetic : Fe³⁺, Ni²⁺, Pd²⁺

Try this ….. (Textbook Page No 171)

Question 1.
What will be the magnetic moment of transition metal having 3 unpaired electrons?
(a) equal to 1.73 B.M.?
(b) less than 1.73 BM.
(c) more than 1.73 B.M.?
Answer:
By spin-only formula, \(\mu=\sqrt{n(n+2)}\) where n is number of unpaired electrons.
\(\mu=\sqrt{3(3+2)}=\sqrt{3(5)}=3.87 \mathrm{~B} . \mathrm{M}\)
Thus the value is more than 1.73 B.M.

Use your brain power! (Textbook Page No 171)

Question 1.
A metal ion from the first transition series has two unpaired electrons. Calculate the magnetic moment.
Answer:
\(\)\begin{aligned}
\mu &=\sqrt{n(n+2)} \\
&=\sqrt{2(2+2)} \\
&=\sqrt{8} \\
&=2.84 \text { B.M. }
\end{aligned}\(\)

Problem (Textbook Page No 172)

Question 1.
Calculate the spin-only magnetic moment of divalent cation of a transition metal with atomic number 25.
Answer:
For element with atomic number 25. electronic configuration of its divalent cation will be : [Ar] 3d⁵.

Try this….. (Textbook Page No 172)

Question 1.
Calculate the spin-only magnetic moment of a divalent cation of element Slaving atomic number 27.
Answer:
Electronic configuration of divalent ion of an element with atomic number 27 : [Ar] 3d⁷;

Can you tell? (Textbook Page No 172)

Question 1.
Compounds of s and p-block elements are almost white. What could be the absorbed radiation? (uv or visible)?
Answer:
The white colour of a compound indicates the absorption of uv radiation.

Can you tell? (Textbook Page No 181)

Question 1.
Why f-block elements are called inner transition metals?
Answer:
f-block elements are called inner transition elements since f-orbital lies much inside the f-orbital in relation to the transition metals, These elements have 1 to 14 electrons in their f-orbital.

Question 2.
Are there an similarities between transition and inner transition metals?
Answer:
There are some properties similarity between transition and inner transition metals.

• They are placed between s and p-block elements.
• They are metals with filling of inner suhshells in their electronic configuration.
• They show variable oxidation slates.
•  They show magnetism.
• They form coloured compounds.
• They have catalytic property.

Problem (Textbook Page No 184)

Question 1.
Which of the following will have highest fourth ionisation enthalpy, La⁴⁺, Gd⁴⁺, Lu⁴⁺.
Answer:
La : 4f°5d¹6s²
Gd : 4f¹5d¹6s²
Lu : 4f¹⁴5d¹6s²
Lu will have the highest fourth ionisation enthalpy since Lu³⁺ has the most stable configuration of 4f¹⁴.

Use your brain power! (Textbook Page No 185)

Question 1.
Do you think that lanthanoid complex would show magnetism?
Answer:
Lanthanoid complexes may show magnetism.

Question 2.
Can you calculate the spin only magnetic moment of lanthanoid complexes using the same formula that you used for transition metal complexes?
Answer:
You cannot calculate magnetic moment of lanthanoid complexes using spin only formula as you have to consider orbital momentum also.

Question 3.
Calculate the spin only magnetic moment of La³⁺. Compare the value with that given in the table.
Answer:
La³⁺ ion has no unpaired electron.

La³⁺ ion has zero value of magnetic moment same as given in the table.

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

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

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

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

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

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

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

1. (B) Match the pairs

Question 1.

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

Answer:

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

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

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

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

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

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

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

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

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

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

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

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

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

1. (E) Find the odd one

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

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

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

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

1. (F) Complete the sentences

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

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

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

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

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

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

Answer:

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

1. (H) Answer in one sentence

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

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

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

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

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

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

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

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

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

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

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

1. (J) Arrange in proper order

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

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

2. Explain the following terms/concepts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4. Answer in brief

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5. Justify the following statements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Attempt the following

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7. Answer the following

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

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

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

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

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

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

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

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

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

Question 2.
Explain different types of market in detail.
Answer:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. (B) Match the pairs

Question 1.

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

Answer:

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

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

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

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

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

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

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

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

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

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

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

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

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

1. (E) Find the odd one

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

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

1. (F) Complete the sentences

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

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

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

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

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

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

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

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

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

Answer:

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

1. (H) Answer in one sentence

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

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

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

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

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

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

1. (I) Arrange in proper order

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

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

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

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

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

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

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

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

2. Explain the following term/concept:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4. Distinguish between

Question 1.
District Commission and State Commission
Answer:

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

Question 2.
State Commission and National Commission
Answer:

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

Question 3.
District Commission and National Commission
Answer:

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

5. Answer in brief

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Justify the following statements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7. Attempt the following

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

8. Answer the following

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. Composition : Each District Commission shall consist of-

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

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

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

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

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

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

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

B. Composition : Each State Commission shall consist of:

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

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

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

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

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

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

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

B. Composition: The National Commission shall consist of:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. (B) Match the pairs

Question 1.

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

Answer:

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

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

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

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

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

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

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

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

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

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

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

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

Question 2.
Business ethics is a code of conduct.
Answer:
True

Question 3.
The commercial organisation are expected to uplift the weaker section of the society.
Answer:
True

Question 4.
It is the responsibility of commercial organisation to maintain industrial peace.
Answer:
True

Question 5.
Owners should not get complete and accurate information about the financial position.
Answer:
False

Question 6.
Media does not play important role in public life.
Answer:
False

Question 7.
Social responsibility is broader than legal responsibility of business.
Answer:
True

1. (E) Find the odd one

Question 1.
Job security, health and safety measures, good working condition, reasonable profit.
Answer:
reasonable profit

Question 2.
Good quality products, fair prices, honest advertising, prevent congestion in cities.
Answer:
prevent congestion in cities

Question 3.
Timely payment of taxes, earning foreign exchange, creating goodwill, political stability.
Answer:
creating goodwill

Question 4.
Protection of environment, maintain transparency, employment generation, development of backward region.
Answer:
maintain transparency

Question 5.
Proper conduct of meeting, careful use of capital, fair prices of products, maintain solvency and prestige.
Answer:
fair prices of products.

1. (F) Complete the sentences

Question 1.
Business organisation can maximise profitability by …………….. wastage.
Answer:
minimising

Question 2.
Social responsibility is broader than …………….. responsibility.
Answer:
legal

Question 3.
The concept of trusteeship was propounded by ……………….
Answer:
Mahatma Gandhi

Question 4.
Business should earn ………………. profit.
Answer:
reasonable

Question 5.
……………….. should be fixed according to the nature and importance of work.
Answer:
Remuneration

Question 6.
The word ‘Ethics’ is derived from the Greek word ………………..
Answer:
Ethos

1. (g) Select the correct option

(Responsibilities towards shareholders, Responsibilities towards consumers, Responsibilities towards government. Responsibilities towards society)

	Group A	Group B
1.	(1) After sales service	————–
2.	(2) Timely payment of proper taxes	————–
3.	——————	Protest Anti-Social activities
4.	—————–	Fair practices on Stock Exchange

Answer:

	Group A	Group B
1.	After sales service	Responsibilities towards consumers
2.	Timely payment of proper taxes	Responsibilities towards Government
3.	Responsibilities towards Society	Protest Anti-Social activities
4.	Responsibilities towards shareholders	Fair practices on Stock Exchange

1. (H) Answer in one sentence

Question 1.
Who can raise voice against business malpractices?
Answer:
Media can raise voice against business malpractices.

Question 2.
What should be done by management to keep workers updated?
Answer:
Guidance methods like ‘Introduction Training’, Refresher Training should be conducted to keep employees updated on the latest development to increase their efficiency and confidence.

Question 3.
What type of advertising should be avoided?
Answer:
False, misleading and vulgar advertisement should be avoided by the organisations.

Question 4.
What organisation should do to improve quality of goods and to reduce cost of production?
Answer:
Organisation should conduct research and development to improve the quality of goods and to reduce the cost of production which in turn will minimise the final prices charged to consumers.

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

Question 1.
Social responsibility is narrower term than legal responsibility of business.
Answer:
Social responsibility is broader term than legal responsibility of business.

Question 2.
All sorts of fair practices related to stock exchange should be avoided.
Answer:
All sorts of unfair practices related to stock exchange should be avoided.

Question 3.
Management and union should agree strikes and lockouts to protect the interest of both the parties.
Answer:
Management and union should ban strikes and lockouts to protect the interest of both the parties.

Question 4.
MRP (Maximum Retail Price) should not be printed on every packet.
Answer:
MRP (Maximum Retail Price) should be printed on every packet.

Question 5.
Dishonest advertising can be appreciated by customers in the long run.
Answer:
Honest advertising can be appreciated by customers in the long run.

Question 6.
Financial help should be provided by business organisation for anti-social activities.
Answer:
Financial help should not be provided by business organisation for anti-social activities.

Question 7.
Business ethics is a compulsory term.
Answer:
Business ethics is a voluntary term.

Question 8.
Business ethics is not a relative term.
Answer:
Business ethics is a relative term.

Question 9.
Social values are based on perceptions of right or wrong.
Answer:
Moral values are based on perceptions of right or wrong.

Question 10.
Moral values provide general guidelines for social conduct.
Answer:
Social values provide general guidelines for social conduct.

2. Explain the following term/concept

Question 1.
Social Responsibility.
Answer:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

Question 2.
Concept of Trusteeship.
Answer:
(1) Trusteeship is a socio-economic philosophy that was propounded by Mahatma Gandhi. According to the principle of trusteeship, “A business must be carried out in trust, legally and morally for the benefit and welfare of the people.” Businessmen are treated to be trustees of society.

(2) Trusteeship provides a means through which rich or wealthy people become trustees of different trusts that take care or look after the welfare (well-being) of the people in the society. Business organisations function and operate within society. They are the part and parcel of the society to which they belong. Therefore, it is now realised that the activity which is harmful to the society is not good (suitable) for the business organisations.

Question 3.
Business Ethics.
Answer:
Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business

Question 4.
Moral Values.
Answer:
(1) Moral values are the standards of right and wrong which govern an individual’s behaviour and choices. Moral values may be derived from society, government, religion or self. Moral values are based on the understanding of right and wrong. Business ethics deals with morality in the business environment.

(2) Business may be guided by some moral principles such as not to get involved in unfair trade practices, to be honest and truthful about quality, not to sell adulterated products as pure product, not to give false and misleading advertisements, charging fair prices, paying taxes, duties and fees to the government honestly, and in schedule time, etc.

Question 5.
Social Values.
Answer:
(1) Social values are set of moral principles that provide the general guidelines for our social conduct. Social values constitute an important aspect of the culture of the society. They are based on tradition, ego, honesty, integrity, fairness, hard work, co-operation, forgiveness, etc.

(2) Social values are the values (standards) concerned with the social aspects of human life, e.g. truth, justice, kindness, generosity, tolerance, patriotism, respect for seniors, excellence, etc. The business organisations should develop social, values through educative advertising, cultural programmes, national integration programmes, assistance to the educational institutes, etc.

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

Question 1.
Yashwant Co. Ltd. is providing facilities for their female staff like day care centre for kids and work from home facility. Even management takes their suggestions while taking the decisions though they are members of trade union.

(i) By doing this they are following social responsibilities towards which interest groups?
(ii) What values are they presenting?
(iii) What kind of responsibilities employer follows in above case?
Answer:
(i) By treating the staff with dignity and respect the company follows the social responsibilities towards the employees.
(ii) Yashwant Co. Ltd. are presenting social values by showing co-operation to their female staff.
(iii) Management takes the employees’ suggestions while taking the decisions even though they are members of trade union. By doing this, management recognizes the right of employees to join, Trade Unions. The company also does not restrict employees from forming Trade Union. Thus they follow social responsibility towards employees.

Question 2.
An organisation manufacturing paints has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank: which has created many health problems for the nearby villages.

(i) Which responsibility is neglected by manufacturing organisation?
(ii) What kind of pollution are they doing?
(iii) What precautionary measures they need to take?
Answer:
(i) Responsibility towards protection of environment is regulated by manufacturing industries.
(ii) They are creating water pollution by dumping its untreated poisonous waste on the river bank.
(iii) Proper waste management techniques should be adopted by the organisation under which waste should be reduced, effort should be made to reuse the waste. Waste that cannot be reduced or reused should be recycled.

Question 3.
A vehicle manufacturing company has adopted the following practices:
(A) Only those components will be used by the company which are environment-friendly.
(B) There will be discharge of harmful wastes only after their proper treatment.
(C) Pollution level of every vehicle will be maintained as per international standards.

(i) By doing this, business organisation follows social responsibility towards which interest group?
(ii) What kind of pollution do they want to avoid ?
(iii) What kind of message do they want to convey ?
Answer:
(i) Business organisation follows social responsibility towards society for protection of environment.
(ii) They want to avoid air pollution.
(iii) They want to convey the message that business should be committed to protect the environment and should not create imbalance in nature.

4. Answer in brief

Question 1.
Give any four types of social responsibilities towards consumers.
Answer:
The social responsibilities of commercial organisation towards consumers are explained as follows:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

(4) Honest Advertising : The advertisement conveys varied information of the products like the facts, features, side effects, advantages, uses, etc. to the customers. The commercial organisations must see to it that their advertisement should not mislead the consumers by exaggerating the actual facts. The commercial organisations must not indulge in vulgar, false and misleading advertisement. Honest advertisements are always appreciated by the consumers and become beneficial in the long run.

(5) After Sales Service: The commercial organisation should offer quick, satisfactory and efficient after sales service specially in the case of consumer durable products for their maintenance during the period of warranty. Effective and efficient after sales services enable them to establish and maintain good relation with the consumers.

Question 2.
What is Business Ethics ? What are elements of business ethics ?
Answer:
[A] Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business.

[B] Elements of business ethics : The elements of business ethics are explained as follows:
(1) Trustworthiness : Every business unit or organisation must work in all areas to maintain trustworthiness. This increases the confidence of clients or customers in the organisation. The clients usually believe in organisations for reliability and quality performance. Company or organisation functions and prospers on character, i fairness, truth, honour and ability.

(2) Honest service delivery : It is much better to be honest about what one can do rather than making empty promises. Empty or false promises ruin the reputation of the business organisation. Business organisation should fulfil or complete all its commitments and obligations and leave every customer feeling well served and satisfied.

(3) Confidentiality : The company or business organisation should strictly obey and follow its i internal confidential policy. It is utmost important for every business organisation to keep in secret the confidential details of its own clients. For private gain it should not disclose such information to any one. Similarly, it should not use any means to get information from competitors about certain formulae or methods of production.

(4) Openness : Good business ethics and continuous improvement also come from keeping an open mind. Business unit should follow the principle of openness. It should regularly demand opinions and feedback from both clients and team members. Even in times of business disagreement, business unit should welcome other’s opinions and ideas with respect and courtesy.

(5) Other common business ethics : (1) A large portion of our society is composed of common people with low purchasing power. Business enterprises should consider likes, dislikes and financial position of these people and accordingly manufacture and provide goods and services. (2) The guaranties and warranties given by the manufacturer should be proper and acceptable by the customers. (3) Advertisements given by the businessmen should not cross limit of decency.

Question 3.
State responsibilities of business towards government.
Answer:
Responsibilities of business towards government:
(1) Timely payment of taxes : Business organisations are expected to pay various taxes such as sales tax, income tax, corporate tax, excise duty, wealth tax, etc. levied by the government from time to time. These funds enable the government to undertake various development projects.

(2) Observing rules and regulations : The business organisations are expected to comply with the various laws, rules and regulations enacted by the government. The company should follow the laws regarding obtaining license of business operation, price determination and production, etc. They should conduct business in lawful manner.

(3) Earning foreign exchange : The business organisations Eire expected to export their products to foreign countries to earn foreign exchange. Foreign exchange is required by the government to import various goods, valuable and important products.

(4) Economic development : The government sets the targets for balanced growth and rapid economic development of the country. The business organisation is expected to provide necessary support to the government.

(5) Implementing socio-economic policies : The business organisations are expected to provide co-operation and required funds to the government in implementing various socio-economic programmes and policies.

Question 4.
State any four CSR activities.
Answer:
CSR, supports the following activities:

1. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water.
2. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently abled & livelihood enhancement projects.
3. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines.
4. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water.
5. Employment enhancing vocational skills, etc.

5. Justify the following statements.

Question 1.
Role of media has major influence on business organisation.
Answer:
(1) Media refers to the various means used by advertisers to inform the public about the products or services. The mass media include the press, social media, radio and television. Active media plays crucial role in the life of the people. Through internet, reach of social media to common people has become very easy.

(2) Media has efficiency to disburse any information, wrong policy, unfair trade practice adopted by any business organisation at a very fast pace to public at large that too at every corner of the world. Media is very vibrant and active.

(3) Media connects the people and creates influence on masses. It can make propaganda (or raise voice) against business malpractices and exploitation of consumers. It can do publicity through repetition of messages by different means.

(4) Newspapers, radio, television, internet, social media, etc. can easily give publicity to unfair practices of business organisations. So, media makes business organisations understand social values and exerts major influence.

Question 2.
Business should allow workers participation in management.
Answer:
(1) Workers are the real architects of success in any business unit. Investments in human resources (capital) gives rich rewards in the long run.

(2) The success and failure of the business organisations to greater extent depend on the support and participation of employees. Therefore, business organisations should encourage workers to participate in management through various schemes like giving suggestions, saving costs, quality circles, profit sharing co-ownership, etc.

(3) When workers are given opportunity to participate in the management, it will raise their morale. This in turn will give the workers a sense of belongingness. They will take an active part in completion of the work assigned to them.

(4) Workers’ participation in the management r enables the organisation to win the confidence of employees. It creates and maintains good, healthy and improved relationship between labour and management which is necessary for the success of any organisation.

Question 3.
Expectations of society towards business are changing.
Answer:
(1) Today the world is changing and expanding very fast. Social demands have changed gradually over the years. The business has to respond them positively.

(2) Now the people all over the globe are well aware of their rights. Overall knowledge level has also increased. In order to fulfil the growing needs of the people, the business firms must operate as per the expectations of society. Business units must give society what it actually wants.

(3) Consumer satisfaction is the ultimate purpose of business activities. A business organisation must give priority to consumer satisfaction over profit motive. Its survival, progress and reputation depend upon the consumer satisfaction. It must win the confidence of its customers by giving them useful services.

(4) Business organisations are expected to act in broad public interest and serve the objectives of mankind and society at large along with the objectives of earning profit. It must provide quality products to society at reasonable prices and above all contribute to the social welfare.

Question 4.
Business organisations should avoid environmental pollution and ecological imbalance.
Answer:
(1) Functioning of business units and industrialisation create air, water and sound pollution. The carbon particles, dust, harmful gases, chemicals, etc. create air pollution.

(2) Harmful chemicals, untreated sewage, industrial waste, fertilizers, pesticides, refuse, e-waste, etc. when get mixed with water, creates water pollution. Aeroplanes, motor vehicles, construction machines and industrial equipment create sound pollution.

(3) The business organisations are expected to take all possible measures to prevent air, water and sound pollution and to maintain the ecological balance. For the well-being of society every organisation should assist the concerned organisations engaged in pollution control programmes such as plantation of trees, preservation of wildlife and natural resources.

(4) Protecting the environment and maintaining ecological balance in the following manner:

1. Business organisations save cost and money through minimising waste
2. Business organi¬sations which follow green practices (plantation of more and more trees) get support from customers
3. Business organisations which take precautions to protect environment create awareness among employees
4. Protection of environment process cut carbon emission and create conditions for green growth which is beneficial to society
5. Business organisations showing awareness towards environment protection get support and encouragement from the government.
   Thus, business organisation should avoid environmental pollution and ecological imbalance.

Question 5.
All sorts of unfair practices related to stock exchange should be avoided.
Answer:
(1) The persons who provide finance for short term as well as for long term to the company are called owners or investors. They invest their money and accept risk factor. Management is expected to provide full and factual information about the financial performance of the company to the owners and investors.

(2) Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating and maintaining the interests of investors in the securities market. Law prohibits any sort of activity that are manipulative or unfair in the securities market. Thus, business organisations must avoid unfair practices related to stock exchange like insider trading, providing wrong and secret information about buying/selling or dealing with securities, etc. Any breach in the above mentioned practices may be considered unlawful and be made accountable by SEBI.

(3) Therefore, business organisation should consider responsibilities toward the owners and should avoid all sorts of unfair practices related to stock exchange.

Question 6.
Business ethics contains moral and social values for doing business.
Answer:
(1) Business Ethics refer to code of conduct that a business organisation are expected to follow while doing a business. According to ‘Wheeler’, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as recognizing the moral responsibility for right or wrong conduct of business. ”

(2) Moral values are based on perceptions of right and wrong. They provide the general guidelines for distinguishing between wrong and right path of business, between good and bad, fair and unfair, just and unjust, legal and illegal, proper and improper in respect to human actions. Ethics contain moral values for doing business, Honesty, transparency, fairness, integrity, etc. are moral values that create goodwill and gives economic gain in the long run.

(3) Social values form an important part of the culture of the society. They provide general guidelines for social conduct. Values such as fundamental rights, patriotism, respect for human dignity, rationality, sacrifice, equality, democracy, etc. influence our behaviour in many ways. These social values made the business socially acceptable. As business is a part of society, it can be successful in the long run by adopting social values.

Question 7.
Business ethics can be considered as a tool for social development.
Answer:
(1) Business ethics is a code of conduct evolved for regulating the activities of business towards the society and others.

(2) It calls for the importance of fair treatment to be given to the consumers, workers, suppliers, shareholders, competitors, government and the community at large. Business ethics promote the principles of honesty, sincerity, fairness, justice in business dealings.

(3) It protects the interests of all the constituents of the society. It creates healthy and competitive business atmosphere. It induces businessmen to introduce social security and welfare measures.

(4) The businessmen promote activities enhancing the cultural values of the society. Thus, business ethics, if practised by businessmen in the right spirit, can be considered as a tool for social development.

6. Attempt the following

Question 1.
What is social responsibility of commercial organisation towards consumers ?
Answer:
The social responsibilities of commercial organisation towards consumers are explained as follows:
(1) Good Quality Products : It is the responsibility of a commercial organisation to produce and supply good quality products and services. To improve the quality, every business unit must have quality control department to reject inferior and substandard products. In this respect, International Standards Organisation (ISO) is the latest trend towards quality control. This ensures customers’ loyalty to products.

(2) Fair Prices : The commercial organisation must charge fair and reasonable prices for its goods. Maximum Retail Price (M.R.E) inclusive of all taxes must be printed on all packed products. The customers should not be cheated by being charged higher prices. It is not fair and practicable to fool the customers every time. Such practices bring disrepute to the organisation and spoil its image in the long run.

(3) Customer’s Safety : The organisation must ensure that the product supplied has no adverse effect on the life and health of the consumers. Unsafe products must not be marketed by the organisation. The manufacturers of the genuine products must warn the consumers about the imitation and unsafe products well in time.

(4) Honest Advertising : The advertisement conveys varied information of the products like the facts, features, side effects, advantages, uses, etc. to the customers. The commercial organisations must see to it that their advertisement should not mislead the consumers by exaggerating the actual facts. The commercial organisations must not indulge in vulgar, false and misleading advertisement. Honest advertisements are always appreciated by the consumers and become beneficial in the long run.

(5) After Sales Service: The commercial organisation should offer quick, satisfactory and efficient after sales service specially in the case of consumer durable products for their maintenance during the period of warranty. Effective and efficient after sales services enable them to establish and maintain good relation with the consumers.

(6) Research and Development: The commercial organisation is expected to conduct research and development for the purpose of improving the quality of the product and reducing the cost of production. The commercial organisations must provide quality and branded products such as BIS – Bureau of Indian Standards, AGMARK – Agricultural Marketing, ISI – Indian Standards Institute, etc.

(7) Regular Supply: The commercial organisations are expected to provide goods and services to the consumers regularly as and when needed by them. The commercial organisations are not supposed to create artificial scarcity of goods by hoarding. They should not indulge in black marketing.

(8) Attend Complaints : The commercial organisations must attend to the complaints of consumers without any delay. For this, every organisation should implement quick, effective and suitable grievances redressal system. Suggestions of the customers for the improvement of products should be welcomed and gratefully acknowledged. Required modification in the products should be carried out.

(9) Training: The commercial organisation should organise training to their regular and potential consumers, from time to time, either free of cost or by charging nominal fees.

(10) Avoid Customer Exploitation : In order to avoid exploitation of consumers, the commercial organisations should not indulge in unfair trade practices. To protect the interest of consumers, organisations should avoid monopolistic competition in the market.

Question 2.
State different types of responsibilities towards society.
Answer:
The following are the social responsibilities of a business unit towards society community/ public in general:
(1) Protection of environment : In recent years, pollution becomes one of the major problems. Industries, chemical plants, cement plants, etc. create air pollution and water pollution. The business organisations must take all possible measures to prevent or minimise air and water pollution and maintain ecological balance.

(2) Better and maximum use of resources : The business firms must make proper and optimum use of available resources in the larger interest of the society. The resources such as water, land, fuel, raw materials, etc. should be used fairly and efficiently. However, care should be taken not to misuse or waste such resources.

(3) Reservation for weaker section : For upliftment of economically weaker section of society, the business organisations are expected to reserve certain positions in their organisations. They should also provide financial and other necessary help to them wherever expected.

(4) Development of backward regions : The society expects that the business firms should start their industries in less developed (backward) areas to create employment opportunities. It will increase purchasing power among these people. In this manner, business organisations should make development in backward regions.

(5) Protect against anti-social activities : The business organisations should neither undertake nor participate in anti-social activities. They should not provide any financial assistance to anti-social elements. The business firms should avoid anti-social activities such as smuggling, association with underworld (criminal) people, bribing government officials, etc.

Question 3.
Describe the responsibilities of commercial organisation towards investors.
Answer:
Responsibilities of business towards investors:
(1) Proper conduct of meetings : Whenever need arises, a company should call and organise meetings of investors to provide information about the business. Prior to meeting, proper notice and agenda should be sent well in advance. During the period of financial crisis, investors should be convinced and taken into confidence. Reasons for failure should be explained to the investors to gain their confidence.

(2) Return on Investment : Investors invest their money in the company by accepting risk. They are entitled by get fair returns on their investment at regular interval in the form of interest. Investors expect the following from the business organisations : (a) fair returns on their investment, (b) safety of their investment and (c) steady and gradual appreciation of the business.

(3) Handling grievances : A company is required to pay attention and handle the grievances and complaints of the investors amicably. There should be orderly procedure to solve and deal with grievances without any delay. The business management should answer all the queries of investors regarding any issue in satisfactory manner.

(4) Maintain transparency : Investors supply funds for long term and for working capital to carry on business more efficiently. Investors expect that business firms should maintain high degree of transparency in their operations.

(5) Proper disclosure of information : A company is expected to disclose full and factual information through regular reports, circulars and statement of profit. The company must provide its financial performance more correctly so that prospective investors are able to take right decisions to invest their money in future.

(6) Maintain solvency and prestige : Business organisation or a company is expected to maintain sound financial position, prestige, solvency and goodwill to gain confidence of investors. For this, company should undertake innovation, research and expansion programme on the continuous basis.

Question 4.
Describe the features of Business Ethics.
Answer:
The features of Business Ethics are explained as below:
(1) Code of conduct : Business ethics is a code of conduct developed and evolved for regulating business activities toward welfare of society. It explains what activities one is suppose to do and not do for the welfare of the society. All business units must follows this code of conduct.

(2) Based on moral and social values : Business ethics comprises social and moral principles i.e. rules for carrying out business activities smoothly. This contains self control, consumer protection and welfare, fair treatment to social group, service to society, not to harm (exploit) others, etc.

(3) Gives protection to social groups : Business ethics protects the interests of all the constituents (groups) of the society which include consumers, creditors, employees, small businessmen, shareholders, government, etc.

(4) Provides basic framework : Business ethics specifies the social, cultural, legal, economic and other limits of business within which business units are expected to plan, work out and conduct their functions and activities.

(5) Voluntary : The businessmen must follow (accept) business ethics voluntarily, i.e. on their own. Business ethics must be similar to self¬discipline. It should not be made compulsory by law.

(6) Requires education and guidance : Prior to introduction of business ethics in the organisation, businessmen must be properly educated, trained and given guidance. The businessmen must be convinced and motivated to implement business ethics.

(7) Relative term : Business ethics is a relative term. It differs or changes from one business to another business and from one country to another.
In one country whatever is considered good may be banned or bad for other country.

(8) New concept : Business ethics is considered as newer concept. It is strictly followed and applied in developed, i.e. advanced countries. It is not accepted and followed in developing and poor (backward) countries.

Question 5.
What is Corporate Social Responsibility?
Answer:
(1) Corporate Social Responsibility (CSR) is the recent and newest management strategy which creates positive impact on society while doing business. It is a global concept. It is self regulating business model which aims at contributing towards social welfare and support ethically oriented practices. CSR makes a company socially accountable and responsible. CSR makes a company accountable towards itself, its stakeholders, public in general, etc. By undertaking and practising social responsibility company can be alert and awake about social, economic and environmental aspects of the society.

(2) According to UNIDO (United Nations Industrial Development Organization), “Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders”.

According to Section 135 of the Companies Act, 2013 and Companies (CSR Policy) Rules 2014, the companies having net worth of 1500 Cr. or more or turnover of 1000 Cr. or more; or net profit of 15 Cr. or more during any financial year have to form a Corporate Social Responsibility Committee of the Board. The Board’s report will give information about the compositions of CSR committee with effect from 1st April, 2014.

(3) In every financial year, all companies should spend at least 2% of average net profits of last 3 years on their CSR policy. The CSR committee consists of 4 directors who meet at least 2 times in a year to discuss and review the CSR policy and CSR activities, prepare budget, explain the way to implement projects and to establish a transparent means to check progress.

(4) CSR, supports the following activities:

1. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water.
2. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently abled & livelihood enhancement projects.
3. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines.
4. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water.
5. Employment enhancing vocational skills, etc.

(5) Penalties for non-compliance of CSR activities (duties) would attract a fine of not less than Rs 50,000 which may increase to Rs 25,00,000 and every officer of the company in default is given punishment of imprisonment for 3 years or with fine of Rs 50,000 which may increase to Rs 5,00,000 or with both.

7. Answer the following

Question 1.
Explain the responsibilities of business towards employees.
Answer:
The responsibilities of business towards employees are explained as follows:
(1) Job security: Job security (guarantee) gives mental peace to the employees. In order to encourage employees to work with full concentration, dedication and commitment, the business organisation must give job security and frame rules for confirmation of their service and strictly adhere to them. This will in turn raise their morale, interest and loyalty towards the organisation.

(2) Fair remuneration : The business organisation should pay adequate and attractive salaries along with incentives like overtime allowance, bonus, etc. to all employees. Wages or salaries payable to employees should be fixed by considering nature of work. The business organisations should frame suitable wage plans for increments and timely revision of wages.

(3) Health and safety measures : The business organisations is expected to take necessary steps for protecting the health and hygiene of the employees. Proper sanitation, canteen, medical facilities, hygienic conditions, etc. must be provided to them. Proper maintenance of machines and premises must be done to prevent accidents and control pollution. Business organisation should provide safety equipment such as helmets, safety goggles, gloves, shoes, masks, etc. to the employees.

(4) Good working condition : The business organisations must provide good working conditions to their employees such as adequate lighting, ventilation, safe drinking water, etc. The business organisations are expected to take necessary steps to avoid and minimise air, sound and water pollution. The business organisation must fix proper working hours and norms (shiftwise, if any) with due provisions for lunch break, tea intervals, restrooms, etc.

(5) Recognition of Trade Unions : The business organisation must recognise the right of a worker to join a recognised trade union. The management or employer should not prevent workers from forming a trade union. The management should not follow the policy of “Divide and Rule”. Further, the management should solve the problems of the workers amicably by holding face to face interactions, talks, meetings and negotiations with unions. The management and union should agree to ban lockouts and strikes to protect the interest of both the parties. A business organisation is expected to maintain industrial harmony and peace.

(6) Education and training : The business organisations are expected to take efforts to educate and train the employees. Depending on the nature of job, the business organisation should offer education, training and guidance to their employees free of cost. To update their knowledge, on the latest development and to increase the S efficiency of the employees, the organisation should arrange ‘Refresher in service training’ and ‘Introduction Training’ at regular intervals.

(7) Workers participation in management : The business organisations are expected to encourage workers to participant in the management by forming workers’ committee. The management should encourage the workers ; through different schemes like suggestion schemes, profit sharing, etc. These schemes enable the management to raise employees’ morale and help the management to give them a sense of belonging.

(8) Promotion and career opportunities : Business organisations should offer enough opportunities of promotion to their qualified and talented employees. They should give detailed information about qualification, skills and I experience required to get promotions. This will increase awareness and motivate the workers to work hard.

(9) Proper grievance procedure : The organi-sation must introduce a suitable grievance (redressal) procedure to deal with the employees’ complaints. All their queries or problems should be sorted out and solved quickly and amicably.

The employees must feel satisfied that their complaints are attended properly. Management or employer must investigate and take necessary actions to settle the grievances and complaints.

(10) Miscellaneous : Management or employer should-

1. give fair treatment to all employees.
2. recognise, appreciate and encourage special skills and talents of the employees.
3. introduce code of conduct for the employees.
4. protect religious, social, political rights of the employees.
5. allow employees to form informal groups.

Question 2.
Define the concept of Social Responsibility and what is the need for social responsibility.
Answer:
[A] Meaning and Definition : Social responsibility is an obligation of the business organisation to take those decisions and perform those actions which are desirable to fulfil the objectives and add values to our society. The business organisations are expected to perform all the activities of their business in such a manner that such activities will not cause any harm to any part of the society.

In other words, the business enterprises should undertake such activities which will protect and contribute to the interest of society and fulfil their expectations. According to Howard D. Bowen “Social Responsibility is to pursue those policies to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.” In brief, social responsibility comprises of an element of voluntary action taken by the business people for the benefit of the society.

[B] Need for social responsibility:
(1) Concept of Trusteeship : Trusteeship is a socio-economic philosophy that was advocated by Mahatma Gandhi. According to it, rich (wealthy) people would be trustees of the trusts that take care of the welfare of the people in general. Businessmen are treated as trustees of society.

(2) Changing expectations of society : Over the years, society’s expectations from the business organisation have undergone severe change. In earlier days, business firms were recognised as the providers of goods and services. However in recent years society expects that every business organisation as a responsible citizen should contribute towards social welfare of the people in the society.

(3) Reputation : Business organisations spend large amount of money in brand building and in creating and strengthening their favourable image. The business organisations which care for every organ of the society and contribute to social well¬being enjoy a good reputation in the society. Such organisations always get good support from the public which in turn increases sales, profitability, attraction of talent and sustained growth.

(4) Protection of environment : It is the social responsibility of the business organisations to make proper and careful use of country’s natural resources. They should not cause environmental pollution (degradation) like contamination pollution of water resources, depletion of ozone layer, etc. Such type of pollutions result in poor health of the community and put a question mark on the survival of human species/race.

(5) Optimum utilisation of resources : Usually, large business organisations have huge amount of resources such as manpower, talent, finance and expert at their disposal to use. It is the social responsibility of business organisations to make optimum use of available resources to protect society’s interests. The organisation should always avoid wastage of resources.

(6) Pressure of trade union : The workers have now become more conscious of their rights and privileges. In recent years, trade unions play significant role in business environment. The workers have realised that their efforts contribute to the profits of the business organisation and expect management to pay them fair wages, bonus, etc. to minimise or avoid conflicts between trade unions and management. The business organisations should understand the responsibility towards employees to avoid conflicts and act accordingly.

(7) Growth of consumer movement : Advancement and growth in education, development of mass media and growing competition in the market create awareness among the consumers about their rights and powers. Hence, business organisation are required to follow consumer-oriented policies.

(8) Government control : From the side of business organisation, government rules and regulations are not desirable. This is because government put certain restrictions and limit the freedom of business organisations. In order to put moral and legal pressure on business, the government has enacted several laws such as Consumer Protection Act, 1986, Air Pollution Act, Food Adulteration Act, etc.

(9) Long term self interest : A business organisation and its image stand to earn handsome profit in the long run if its motive is providing services to the society. When the workers, consumers, shareholders, government officials and members of the public feel that a business organisation is indifferent to the social interests, they may withdraw their support to end co¬operation. Therefore, it is in the long-term interest of the business organisation to be socially useful and fulfil its social responsibility.

(10) Complexities of social problems : Many a time some business organisations themselves create social problems such as discrimination in treatment, unsafe workplaces, different types of pollutions, etc. It is the moral and social obligation of the business organisation to solve these social problems.

(11) Globalisation : In globalisation, business activities are conducted throughout the world. In recent years, the entire globe (world) has becomes the market place for buying and selling goods and services produced in any part of the world. Globalisation creates and provides more opportunities, threats and challenges to the business organisations. Those countries in the world which have followed good and fair trade practices capture and influence the entire world trade.

(12) Role of media : By using internet, it is easier to approach the common people. Media is dynamic and active which can influence large number of people in the society. Media is useful to raise voice against malpractice and exploitation of the consumers. Media plays important and active role in public life. Thus, Business organisation should not neglect the social values.

Question 3.
Explain the responsibilities of a business unit towards society at a large.
Answer:
The following are the social responsibilities of a business unit towards society community/ public in general:
(1) Protection of environment : In recent years, pollution becomes one of the major problems. Industries, chemical plants, cement plants, etc. create air pollution and water pollution. The business organisations must take all possible measures to prevent or minimise air and water pollution and maintain ecological balance.

(2) Better and maximum use of resources : The business firms must make proper and optimum use of available resources in the larger interest of the society. The resources such as water, land, fuel, raw materials, etc. should be used fairly and efficiently. However, care should be taken not to misuse or waste such resources.

(3) Reservation for weaker section : For upliftment of economically weaker section of society, the business organisations are expected to reserve certain positions in their organisations. They should also provide financial and other necessary help to them wherever expected.

(4) Development of backward regions : The society expects that the business firms should start their industries in less developed (backward) areas to create employment opportunities. It will increase purchasing power among these people. In this manner, business organisations should make development in backward regions.

(5) Protect against anti-social activities : The business organisations should neither undertake nor participate in anti-social activities. They should not provide any financial assistance to anti-social elements. The business firms should avoid anti-social activities such as smuggling, association with underworld (criminal) people, bribing government officials, etc.

(6) Financial assistance : The society expects financial helps and donations from the business organisations for various social welfare activities such as eradication of poverty, illiteracy, etc. The society also expects financial assistance from them to organise various awareness programmes like anti-drug campaigns, antinoise pollution campaigns, etc.

(7) Prevent congestions : The society expects that the business firms start industries in industrial zones and at different locations. It will minimise the adverse effects like pollution and overcrowded cities in residential areas. This facilitates business firms to provide jobs to local people. This in turn avoids congestion in big cities.

(8) Employment generation : The business units should generate and provide better job opportunities to young and well qualified people in all sections of the society. It should make maximum efforts to generate employment through expansion and diversification of its business. This will avoid unemployment and poverty in the society.

Question 4.
What are the responsibilities of business towards investors and government?
Answer:
[A] Responsibilities of business towards investors:
(1) Proper conduct of meetings : Whenever need arises, a company should call and organise meetings of investors to provide information about the business. Prior to meeting, proper notice and agenda should be sent well in advance. During the period of financial crisis, investors should be convinced and taken into confidence. Reasons for failure should be explained to the investors to gain their confidence.

(2) Return on Investment : Investors invest their money in the company by accepting risk. They are entitled by get fair returns on their investment at regular interval in the form of interest. Investors expect the following from the business organisations : (a) fair returns on their investment, (b) safety of their investment and (c) steady and gradual appreciation of the business.

(3) Handling grievances : A company is required to pay attention and handle the grievances and complaints of the investors amicably. There should be orderly procedure to solve and deal with grievances without any delay. The business management should answer all the queries of investors regarding any issue in satisfactory manner.

(4) Maintain transparency : Investors supply funds for long term and for working capital to carry on business more efficiently. Investors expect that business firms should maintain high degree of transparency in their operations.

(5) Proper disclosure of information : A company is expected to disclose full and factual information through regular reports, circulars and statement of profit. The company must provide its financial performance more correctly so that prospective investors are able to take right decisions to invest their money in future.

(6) Maintain solvency and prestige : Business organisation or a company is expected to maintain sound financial position, prestige, solvency and goodwill to gain confidence of investors. For this, company should undertake innovation, research and expansion programme on the continuous basis.

[B] Responsibilities of business towards government:
(1) Timely payment of taxes : Business organisations are expected to pay various taxes such as sales tax, income tax, corporate tax, excise duty, wealth tax, etc. levied by the government from time to time. These funds enable the government to undertake various development projects.

(2) Observing rules and regulations : The business organisations are expected to comply with the various laws, rules and regulations enacted by the government. The company should follow the laws regarding obtaining license of business operation, price determination and production, etc. They should conduct business in lawful manner.

(3) Earning foreign exchange : The business organisations Eire expected to export their products to foreign countries to earn foreign exchange. Foreign exchange is required by the government to import various goods, valuable and important products.

(4) Economic development : The government sets the targets for balanced growth and rapid economic development of the country. The business organisation is expected to provide necessary support to the government.

(5) Implementing socio-economic policies : The business organisations are expected to provide co-operation and required funds to the government in implementing various socio-economic programmes and policies.

(6) Suggestions to the Government: The business organisations are expected to give suggestions to the government in framing important policies such as Industrial Policy, Import-Export Policy, Licensing Policy, etc. They are helpful to government in framing organisation friendly policies.

(7) No favours : The business organisation should not take any favour from the government officials by giving bribes or influencing them in any matter.

(8) Contributing to government treasury: The business organisation must contribute by extending financial aid to the government during emergencies and natural calamities like floods.

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 5 Emerging Modes of Business Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Organisation of Commerce and Management Solutions Chapter 5 Emerging Modes of Business

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

Question 1.
For online transactions ……………… is required.
(a) registration
(b) trading
(c) business
Answer:
(a) registration

Question 2.
The term ‘e-business’ is derived from the term ……………….. and e-commerce.
(a) Cash
(b) e-pay
(c) e-mail
Answer:
(c) e-mail

Question 3.
The transactions under ………………. are between consumers and consumers.
(a) B2B
(b) C2C
(c) B2C
Answer:
(b) C2C

Question 4.
The process of contracting a business function to someone else is called as …………….
(a) Outsourcing
(b) Trading
(c) e-business
Answer:
(a) Outsourcing

Question 5.
In online shopping customers put the product in the ……………..
(a) shopping mall
(b) shopping cart
(c) shopping bag
Answer:
(b) shopping cart

1. (B) Match the pairs

Question 1.

Group A	Group B
(A) E-business	(1) Consumer to consumer
(B) B2C	(2) Exist everywhere
(C) Outsourcing	(3) First step
(D) Digital cash	(4) Business to Consumer
(E) Registration	(5) Electronic business
	(6) BPO
	(7) RTO
	(8) Efficient business
	(9) Exist only in cyberspace
	(10) Last step

Answer:

Group A	Group B
(A) E-business	(5) Electronic business
(B) B2C	(4) Business to Consumer
(C) Outsourcing	(6) BPO
(D) Digital cash	(9) Exist only in cyberspace
(E) Registration	(3) First step

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

Question 1.
The stage where the goods bought are delivered to the customer.
Answer:
delivery stage

Question 2.
The term derived from the terms e-mail and e-commerce.
Answer:
e-business

Question 3.
The transaction which is done with the help of the internet.
Answer:
online transactions

Question 4.
The first step in online transaction.
Answer:
Registration

Question 5.
The process of contracting a business function to specialized agencies.
Answer:
outsourcing

Question 6.
Subset of outsourcing.
Answer:
BPO

Question 7.
Sub segment of BPO.
Answer:
KPO

Question 8.
One of the value added BPO service which involves legal work.
Answer:
LPO.

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

Question 1.
It is easy to set up e-business as compared to traditional business.
Answer:
True

Question 2.
The term e-business is derived from the term e-mail and e-commerce.
Answer:
True

Question 3.
e-business allows you to work across the globe in any field.
Answer:
True

Question 4.
LPO stands for legal product outsourcing.
Answer:
False

Question 5.
KPO requires advanced analytical and technical skills.
Answer:
True

Question 6.
With the help of outsourcing, company cannot focus on the core areas.
Answer:
False

1. (E) Find the odd one

Question 1.
BPO, RTO, LPO, KPO
Answer:
RTO

Question 2.
B2B, B2C, A2Z, C2C.
Answer:
A2Z

Question 3.
Debit card, Credit card, Aadhar card, ATM card.
Answer:
Aadhaar card

1. (F) Complete the sentences

Question 1.
E-business is an abbreviation for ………………….
Answer:
Electronic business

Question 2.
The term e-business came into existence in the year ………………..
Answer:
1997

Question 3.
E-business means using the …………….. to connect people and process.
Answer:
Internet

Question 4.
E-business is …………….. of e-commerce.
Answer:
superset

Question 5.
E-commerce is …………….. of e-business.
Answer:
subset

Question 6.
The process of contracting a business function to specialized agencies is known as ……………….
Answer:
Outsourcing

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

(Business to Business, First step, e-commerce, Payment mechanism, e-business)

	Group A	Group B
A.	Registration	—————
B.	Superset of e-commerce	————–
C.	——————	Last step
D.	Subset of e-business	————-
E.	—————–	B2B

Answer:

	Group A	Group B
A.	Registration	First step
B.	Superset of e-commerce	e-business
C.	Payment mechanism	Last step
D.	Subset of e-business	e-commerce
E.	Business to Business.	B2B

1. (H) Answer in one sentence

Question 1.
What is E-business?
Answer:
E-business i.e. electronic business means and includes buying and selling of goods and services along with providing technical or consumer support through internet.

Question 2.
What is outsourcing?
Answer:
Outsourcing is the process of contracting (transferring) any specific business activity, the non-core functions, of the business to specialised agencies to carry out for some money consideration.

Question 3.
What is online transaction?
Answer:
Online transaction refers to a process of buying and selling of goods and services with the help of internet.

Question 4.
What is Shopping cart?
Answer:
Shopping cart is an online record of what buyer has picked up while browsing the online store, i.e. number of units, quantity, price, etc.

Question 5.
What is digital cash?
Answer:
A form of electronic currency that exists only in cyberspace and has no real physical properties but offers the ability to use as real currency in am electronic format.

Question 6.
What is BPO?
Answer:
Business Process Outsourcing (BPO) refers to the outsourcing (transferring to perform) of peripheral (not important) activities (functions) of the organisation to am external organisation or a service provider to minimise cost and increase efficiency.

Question 7.
What is KPO?
Answer:
KPO i.e. Knowledge Process Outsourcing ; described as the functions related to knowledge and information outsourced (transferred to perform) to third party which may be in the same country or in an off shore location.

Question 8.
What is LPO?
Answer:
Legal Process Outsourcing (LPO) is a form of outsourcing in which legal services, ranging from drafting legal documents, performing legal research to offering legal advice are hired or obtained from outside law firm or legal support services company for money consideration.

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

Question 1.
E-business is hard to start.
Answer:
easy

Question 2.
There are five stages of online transactions.
Answer:
three

Question 3.
Registration is the Last step in online transaction.
Answer:
First

Question 4.
Digital cash is form of plastic currency.
Answer:
electronic currency

Question 5.
KPO includes less knowledge based and specialized work.
Answer:
more

1. (J) Arrange in proper order

Question 1.
Purchase or sale, Delivery stage, Pre purchase or sale.
Answer:
Pre purchase or sale, Purchase or sale, Delivery stage.

Question 2.
Placing an order, Cash on delivery, Registration
Answer:
Registration, Placing an order, cash on delivery

2. Explain the following term/concept:

Question 1.
E-business.
Answer:
(1) E-business is abbreviated form of electronic business which implies application and use of information and communication technologies (ICT) to conduct and complete all business activities. In 1997, International Business Machines (IBM) used this term. It refers to the use of the web, internet, intranets, extranets, etc. to connect people, process and to conduct business.

(2) The entire process of settling up a website, helping the customers navigate through the website, offering available products, discounts, to attract the prospective buyers, e-business establishes more closer relationship between partners, employees, suppliers and helps companies to manage their business efficiently.

In India, till today most of the business firms are managed as per traditional methods. Now most of the businesses are well aware of benefits of e-business and hence they started incorporating e-business in their business policy and strategy. Google pay, swiggy, ola, ebay are the examples of e-business. Various types of ’e’ business transactions are B2B, B2C, C2B, C2C, B2A, and C2A.

Question 2.
B2B.
Answer:
Business to Business (B2B) : The transactions under B2B include the transactions between one business firm with other business firms. In this type of transactions individual consumers are not involved. In order to get raw materials, catering services, manpower, components of machinery, etc., business firms interact with each other. B2B transactions include supplying ancillary parts/components to manufacturers, providing value added services like catering, providing man power, etc. The business must depend upon one another in order to survive.

Question 3.
B2C.
Answer:
Business to Consumer (B2C) : The transactions under B2C include transactions between business firms and consumers. When consumer identifies a need or requirement, he searches for the product or services to fulfil his need. He then selects a vendor, negotiates the price, receives product or services, makes payment and gets service and warranty claims. The business firms use their website for different range of marketing activities such as sales or product promotion, product information, reviews about the product or service and delivery of the products at doorstep. In order to get more response from the customers, the cost of products and services is kept low through this method and the speed of transaction is faster, e.g. www.flipkart.com, www.yebhi.com, etc.

Question 4.
C2C.
Answer:
Consumer to Consumer (C2C) : The transactions under Consumer to Consumer are between two people. Using e-business facility on internet, the consumers can buy and sell goods and services to other consumers, through some third party. A common consumer posts the product or services for sale with the price and other details online and other consumers tries to buy them. The sites are performing the role of intermediaries, just to match the consumers. For buying and selling, internet allows a lot of space for consumers group to be formed. The consumer forums interact with each other for best variety of goods and services. Through such groups redressal of complaints is also possible. One may sell his products through an online retail space operated by eBay or Yahoo! shopping, etc.

Question 5.
Outsourcing.
Answer:
(1) Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

(2) When services such as security, canteen, sanitation, etc. are outsourced by a company, then the security guards, waiters, cooks, sanitation scavangers, etc. are not the employees of the company although they work inside the company premises. They directly work under the control of service provider or contractor. Many organisations, companies, corporate houses, establishments, hospitals, shops, malls, housing societies, offices, etc. outsource their non-core (less important) areas of business such as canteen, sanitation, security services, etc. to outside agencies.

Question 6.
BPO.
Answer:
(1) BPO stands for Business Process Outsourcing. BPO basically refers to the outsourcing of some work or functions of the organisation to third party or service provider to save overall cost of the organisation. In other words, BPO is a business system in which one company hires another company or service provider to do certain process of work (or task) for certain money consideration.

(2) In brief, BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities to a third party to minimise cost and increase efficiency.

Question 7.
LPO.
Answer:
(1) LPO stands for Legal Process Outsourcing. LPO is a type of KPO that renders legal services ranging from drafting legal documents, performing legal research to offering legal advice. LPO implies practice of law firm. It refers to obtaining legal services from outside legal support service company or law firm for certain consideration.

(2) In some industry or organisation in house legal department or a company outsourced legal work to such law firms where it can be done or performed at less cost. For instance, many companies in Europe or US outsource their legal work to Indian law firms where it can be done at considerably lower cost.

Question 8.
KPO.
Answer:
(1) KPO stands for Knowledge Process Outsourcing. In KPO, the important functions related to knowledge and information are outsourced (assigned to perform) to third party service providers. KPO is the sub-part (Section) of BPO in which services of outside or third party service provider are hired not only for its ability to do particular business process or function but also to provide expertise it has.

(2) KPO is nothing but the allotment of more important or relatively high level tasks or functions to an outside organisation or to a different group specially in a different geographic location. KPO is a subset of Business Process Outsourcing (BPO). KPO implies outsource of more important or core functions or business process to third party service provider or organisation to perform which may or may not reduce its cost of the parent company but surely assists in value addition.

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

Question 1.
Abhay purchases some gift articles online from www.flipkart.com. At the same time Sheetal purchased gift from e-bay.com.

(i) Which website is related to C2C?
(ii) Which website is related to B2C?
(iii) What first step does Abhay need to follow?
Answer:
(i) eBay.com website is related to Consumer to Consumer (C2C).
(ii) www.flipkart.com website is related to Business to Consumer (B2C).
(iii) Before online shopping, Abhay has to register with the www.flipkart.com by filling up a registration form. Registration is the first step in online transaction. Abhay needs to login a particular website to buy particular gift articles.

Question 2.
Satvik purchases watch from Titan shop and his friend Shambhavi purchases watch from online shopping site.

(i) Which shopping is from traditional business?
(ii) Which shopping is from e-business?
(iii) Which business involved high risk ?
Answer:
(i) Purchase of watch by Satvik from Titan shop is an example of traditional business.
(ii) Purchase of watch by Shambhavi from online shopping site is an example of e-business.
(iii) e-business i.e. purchase of watch from online shopping site involves high risk as there is no direct contact between Shambhavi and e-business owner.

Question 3.
Mr. Ved made his payment by cheque at the same time Mr. Shlok made his payment by fund transfer.

(i) Whose payment is faster?
(ii) Whose payment is related to traditional business?
(iii) Whose payment is related to e-business?
Answer:
(i) The payment made by Mr. Shlok by fund transfer is faster than payment made by Mr. Ved through cheque.
(ii) The payment made by Mr. Ved by cheque is related to traditional business.
(iii) The payment made by Mr. Shlok by fund transfer is related to e-business.

4. Distinguish between

Question 1.
Traditional business and E-business
Answer:

	Traditional business	E-business
1. Meaning	Business which is managed and carried out in accordance with specific custom or a trading practice for long time is called traditional business.	Business which is managed and carried out by using information technology i.e. the internet is called e-business.
2. Formation	Traditional business is comparatively difficult to form as it requires lengthy and complicated procedure to start.	E-business is comparatively easy to form.
3. Setting up cost	To start, establish and manage traditional business large amount of capital is required.	To start, establish and manage e-business very less amount of capital is required.
4. Risk involved	In traditional business, less risk is involved as interaction between parties is possible due to personal contact.	In e-business, high risk is involved as there is no direct contract between the parties.
5. Scope of business	Traditional business is limited to specific area so its scope is limited.	E-business covers the entire world so its scope is vast and unlimited.
6. Physical inspection and delivery of goods	In traditional business, goods can be inspected physically before they are purchased and their delivery is instant.	In e-business, goods cannot be inspected physically before they are purchased and their delivery takes time.

Question 2.
E-business and E-commerce
Answer:

	E-business	E-commerce
1. Meaning	E-business means buying and selling of goods or services along with providing technical or customer support through the internet.	E-commerce is the trading aspect of e-business where commercial transaction are done over internet.
2. What is it?	E-business is superset of E-commerce.	E-commerce is subset of E-business
3. Features	E-business involves all types of re-sale and post¬sale efforts.	E-commerce just involves buying and selling of products and services.
4. Concept	E-business is broader concept. This is because it involves market surveying, supply chain, logistic management and using determining.	E-commerce has narrow scope. This is because it is restricted to buying and selling of product and services.
5. Transaction	E-business is used in the context of Business to Business (B2B) transactions.	E-commerce is more suitable in Business to Consumer (B2C) transactions.
6. Which network is used?	E-business includes the use of internet, intranet or extranet.	E-commerce involves the compulsory use of internet.

Question 3.
BPO and KPO
Answer:

	BPO	KPO
1. Meaning	BPO implies the outsourcing of non-primary peripheral activities of the organisation to an external organisation to decrease cost and increase efficiency of parent organisation.	KPO is a form of outsourcing in which knowledge related and information related work are outsourced to third party service providers to help in value addition and to get cost benefits.
2. Degree of complexity	BPO is comparatively less complex.	KPO is relatively more complex.
3. Requirement	BPO requires process expertise.	KPO requires knowledge expertise.
4. Talent required in employees	BPO requires personnel having good communication skills.	KPO requires professional qualified personnel.
5. Focus on	BPO focus on low level process.	KPO focus on high level process.

5. Answer in brief

Question 1.
What is Outsourcing? Illustrate with suitable example.
Answer:
(1) Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

(2) When services such as security, canteen, sanitation, etc. are outsourced by a company, then the security guards, waiters, cooks, sanitation scavangers, etc. are not the employees of the company although they work inside the company premises. They directly work under the control of service provider or contractor. Many organisations, companies, corporate houses, establishments, hospitals, shops, malls, housing societies, offices, etc. outsource their non-core (less important) areas of business such as canteen, sanitation, security services, etc. to outside agencies.

(3) Similarly arrangements for wedding, anniversary, birthday celebration, etc. can also be outsourced to such agencies. This is because many a time an organisation cannot handle all the functions or aspects of business process internally. Some processes are temporarily required to be performed. In such cases, organisation does not want to recruit and appoint professionals to perform such tasks. Most of the services require finely tuned skills which organisation cannot provide. With increasing global competition, most of the companies are focussing their attention on the improvement of quality of their products. Hence, they outsource their non-core business areas so that they can concentrate fully on their core business activities.

(4) Outsourcing benefits the organisation in two ways, viz. (i) It helps to reduce overall costs and (ii) It can use the expertise of the specialised agencies to perform certain tasks more efficiently.

Question 2.
What is BPO? Explain in detail.
Answer:
(1) BPO stands for Business Process Outsourcing. BPO basically refers to the outsourcing of some work or functions of the organisation to third party or service provider to save overall cost of the organisation. In other words, BPO is a business system in which one company hires another company or service provider to do certain process of work (or task) for certain money consideration.

(2) In brief, BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities to a third party to minimise cost and increase efficiency.

(3) It refers to the outsourcing of less important (non-core) or non-primary activities of the organisation to an external organisation or service provider to minimise the cost and increase efficiency of the organisation.

(4) For instance, customer care centres for various banks, service providers, etc. BPO is less complex and requires process expertise. It also requires good communication skills. It focuses on low level process.

Question 3.
What is KPO? Explain in detail.
Answer:
(1) KPO stands for Knowledge Process Outsourcing. In KPO, the important functions related to knowledge and information are outsourced (assigned to perform) to third party service providers. KPO is the sub-part (Section) of BPO in which services of outside or third party service provider are hired not only for its ability to do particular business process or function but also to provide expertise it has.

(2) KPO is nothing but the allotment of more important or relatively high level tasks or functions to an outside organisation or to a different group specially in a different geographic location. KPO is a subset of Business Process Outsourcing (BPO). KPO implies outsource of more important or core functions or business process to third party service provider or organisation to perform which may or may not reduce its cost of the parent company but surely assists in value addition.

(3) Thus, in KPO the business processes which are outsourced are exceptionally more specialised and knowledge based in comparison to Business Process Outsourcings. In brief, KPO is a form of outsourcing in which knowledge related and information related work is done or carried out by the workers working in different company or by a subsidiary of the some organisation which may be in the same country or on off shore location to save cost.

(4) In KPO, both core as well as non-core activities are performed. It requires advanced analytical and technical skills and high degree of specialist expertise. Margarent Rouse defines KPO as, “KPO is the allocation of relatively high- level tasks to an outside organisation or a different group within the same organisation’’

Question 4.
What is LPO? Explain in detail.
Answer:
(1) LPO stands for Legal Process Outsourcing. LPO is a type of KPO that renders legal services ranging from drafting legal documents, performing legal research to offering legal advice. LPO implies practice of law firm. It refers to obtaining legal services from outside legal support service company or law firm for certain consideration.

(2) In some industry or organisation in house legal department or a company outsourced legal work to such law firms where it can be done or performed at less cost. For instance, many companies in Europe or US outsource their legal work to Indian law firms where it can be done at considerably lower cost.

(3) In recent years, LPO an high end industry has been growing rapidly in India. LPO is superficially a media invention which is derived from BPO. LPO has made tremendous progress in India in past few years.

(4) LPO gained success by producing and rendering services such as document review, legal research and writing, drafting of briefings, etc. Important benefits of outsourcing legal functions is cost savings and to access high level talent and niche expertise that may not exist within the firm or company.

6. Justify the following statements

Question 1.
It is easy to set up e-business as compared to traditional business,
Answer:
(1) e-business is run, managed and carried out with the help of information technology, i.e. web (internet). However, traditional business is run, managed and carried out in accordance with specific old custom or a trading practices of long lasting.

(2) In traditional business large, physical space is needed, to arrange and display the variety of goods. It needs large amount of capital to have infrastructure, staff and other required facilities, e-business can be started, managed and operated with the help of the internet from any place or even from one’s own home. Naturally, it requires very less capital. It is also easy to set up.

(3) In traditional business, time is required to travel, to convince, to negotiate and to interact with the customers. In such process lot of time, energy and money are wasted. While in e-business required information is provided and accepted with terms and conditions more instantly.

(4) e-business is also free from most of the problems as faced by the traditional business. Thus, it is easy to set up e-business.

Question 2.
E-business allows user to work across the globe in any field.
Answer:
(1) e-business i.e. electronic business may be defined as the application of information and technologies to support all the activities of business. It involves electronic buying and supply, chain management, processing orders electronically, online payments via debit or credit cards, handling customer service, etc.

(2) In order to begin with e-business, a business owner must have an internet presence. He has to obtain an e-mail address for communicating the same to the customers and other business associates. This helps speedy communication between business firms and customers. Communication is easy as there is no face to face interaction.

(3) Once the owner of e-business has acquired an electronic means of contact, he may sell goods to the customers residing in any part of the world. There is no need of any wholesalers, retailers, etc. This reduces costs and increases profit. In e-business, goods can be purchased on internet from any place across the globe, payments can be made with the help of debit, credit card, internet banking and the goods are physically delivered at the doorstep of the buyer.

(4) Similarly, he can do trading in any field, e-business uses internet to connect people and processes. The World Wide Web (WWW) offers lot of exposure to e-business on a global platform. International relationship is very strong in e-business. The Government also offers lot of support to e-business. Thus, it allows one to work across the globe in any field he likes.

Question 3.
Online transaction is done with the help of the internet.
Answer:
(1) Online transactions take place when a process of buying and selling are completed through the internet. For online transaction, registration is required. The consumer needs to login a particular website to buy a particular article or service. The customer’s email ID, name, address and other details are saved and safe with the website for further contact.

(2) When a customer likes a product or service, he/she selects, pick ups and drops the items or things in the shopping cart. The shopping cart keeps the systematic and detail record of what items have been picked up while browsing the online store.

(3) The buyer then proceeds to the payment option after selecting all the products. Payment can be made by accepting cash on delivery mode of payment, after receiving physical delivery of goods. The customer may pay in cash or by debit or credit card. The buyer also sends a cheque to the seller and the seller sends the products after the realisation of the cheque.

(4) If the payment is transferred by the buyer from his account to the seller’s account electronically, then after the payment is received by the seller, he sends the goods to buyer. The credit card or debit card is also used by the card holder for. making payment of purchases. The amount gets immediately transferred to vendor’s bank account. After the successful transfer of funds, goods are delivered by the vendor to buyer. Thus, all the aspects of online transaction are completed with the help of the internet.

7. Attempt the following

Question 1.
What are the advantages and disadvantages of e-business?
Answer:
[A] Advantages of e-business : The advantages of e-business are explained as follows:
(1) Ease of formation : In comparison to the traditional method of business, e-business is very easy to set up. The advent of internet has afforded entrepreneurs the ability to open small businesses with a minimal overhead.

(2) Lower investment requirements : As compared to traditional business, the investment requirements of e-business are very low. This is because for conducting e-business, the entrepreneurs do not need a large store or professional space, e-business can be managed with minimum manpower. If entrepreneurs have good contact (network), they can do extremely good business with less investments.

(3) Convenience : In e-business, seller and buyer get advantages of internet platform. Internet offers the convenience of 24 × 7 × 365 days a year to both buyer and seller. Business can be done any time with great flexibility. Truly speaking, e-business has enabled and enhanced by electronics. It offers benefits of accessing anything, anytime and from anywhere.

(4) Speed : Web facilitates direct communication between the seller and buyer. It helps the customer to direct or point out his needs and expectation. Similarly, using website seller can show the available products, offer discount and do everything 1 possible to sell his products. Thus, much of buying or selling involves exchange of information through internet at the click of mouse.

(5) Global access : Truly speaking, internet is boundaryless. Internet facilitates and allows the seller an access to the national as well as global market. Internet also offers freedom to buyer to select products from any part of world. There is no need of face to face interaction between buyer and seller. All the things are completed by using internet.

(6) Movement towards a paperless society : Use of internet has considerably reduced its dependence on the paperwork. Due to use of internet, recording and referencing of information are very easy and less time consuming.

(7) Government support : In e-business transactions, cost reduction and availability of products at relatively low prices are possible. This is beneficial to society at large. Hence, government always supports or favours e-business by providing favourable environment for establishing e-business. This support facilitates maximum transparency in the business.

(8) Easy payment : The payment in e-business can be done by credit card, debit card, fund transfer, etc. These facilities are available round the clock.

[B] Disadvantages of e-business : The disadvantages of e-business are explained as follows:
(1) Lack of personal touch : Before buying the products most of the customers want to see, handle, touch, inspect or test the products which is not possible in e-business system. Because of this reasons, most of the customers do not look for online purchase of products on the internet.

(2) Delivery time : In e-business, the delivery of products takes considerable time. In traditional business, immediate delivery of products is given to buyer after he buys the products. The considerable time lag discourages the customer to buy products from e-business. Now a days most of the e-business assures one day delivery. This improvement does not solve the issue completely.

(3) Security issues : The scam through online business by many people cannot be denied. It is also easier for hackers to obtain one’s financial details which can be misused for their personal gain. Thus, online business has less security and integrity issues. Because of these reasons the potential buyers are also discouraged to buy anything from e-business.

(4) Government interference : Many a time, the government monitors, interferes and controls the e-business system. This may put a great hurdle on its growth and prosperity.

(5) High risk : In e-business system, transaction risks such as supply of inferior quality of goods, supplied products do not match with the sample shown, high prices, defects in products, cheating, etc. cannot be denied. In case of any fraud, it becomes very difficult to take legal action due to lack of direct contact between the parties.

Question 2.
What are the types of e-buslness? Explain.
Answer:
The types of e-business is shown in the following:
e-business-

1. Business to Business (B2B)
2. Business to Consumer (B2C)
3. Consumer to Business (C2B)
4. Consumer to Consumer (C2C)
5. Business to Administration (B2A)
6. Consumer to Administration (C2A)

The type of e-business are explained as follows:
(1) Business to Business (B2B) : The transactions under B2B include the transactions between one business firm with other business firms. In this type of transactions individual consumers are not involved. In order to get raw materials, catering services, manpower, components of machinery, etc., business firms interact with each other. B2B transactions include supplying ancillary parts/components to manufacturers, providing value added services like catering, providing man power, etc. The business must depend upon one another in order to survive.

(2) Business to Consumer (B2C) : The transactions under B2C include transactions between business firms and consumers. When consumer identifies a need or requirement, he searches for the product or services to fulfil his need. He then selects a vendor, negotiates the price, receives product or services, makes payment and gets service and warranty claims.

The business firms use their website for different range of marketing activities such as sales or product promotion, product information, reviews about the product or service and delivery of the products at doorstep. In order to get more response from the customers, the cost of products and services is kept low through this method and the speed of transaction is faster, e.g. www.flipkart.com, www.yebhi.com, etc.

(3) Consumer to Business (C2B) : Consumer to Business is rapidly growing where the consumer demands or requests a specific service from the business lender. In this transaction, buyers quote their own price for specific product or services. A consumer who is in need of product or services posts his request with a specific budget. The companies interested in providing services or products review the customer’s requirement, negotiate price and finalise the deal. Pest control service, doorstep food delivery, taxi services, etc. are the examples of Consumer to Business transaction.

(4) Consumer to Consumer (C2C) : The transactions under Consumer to Consumer are between two people. Using e-business facility on internet, the consumers can buy and sell goods and services to other consumers, through some third party. A common consumer posts the product or services for sale with the price and other details online and other consumers tries to buy them. The sites are performing the role of intermediaries, just to match the consumers.

For buying and selling, internet allows a lot of space for consumers group to be formed. The consumer forums interact with each other for best variety of goods and services. Through such groups redressal of complaints is also possible. One may sell his products through an online retail space operated by eBay or Yahoo! shopping, etc.

(5) Business to Administration (B2A) : The transactions under Business to Administration are between the business and public administration. This part of e-commerce entirely includes all transactions conducted online between firm at one end and public administration on the other end. For instance, registration of companies, filing returns, payment of taxes, getting permits, etc.

(6) Consumer to Administration (C2A) : The transactions under Consumer to Administration are between the Consumer and Public Administration. This part of e-commerce includes entirely all transactions conducted online between consumer at one end and public administration on the other end. For instance, obtaining passport, aadhaar card, licenses, etc.

Question 3.
What are the advantages of outsourcing?
Answer:
Advantages : The advantages of outsourcing are explained as follows:
(1) Overall cost advantages : Outsourcing reduces cost. Outsourcing avoids the need to hire employees in houses. Hence, recruitment and training costs can be eliminated or minimised. It S also saves time and efforts on training the employees. Similarly, cost of outsourcing services is much less than recruiting work force for the company.

(2) Stimulates entrepreneurship, employment and experts : Outsourcing encourages and stimulates entrepreneurship, employment and expertness in the country from where outsourcing is done.

(3) Low manpower cost : In every organisation manpower is required to operate machineries, to do routine work, to perform jobs, to administer and manage business affairs. Recruitment and appointment of personnel on permanent basis are costly. Manpower through outsourcing is available at a lower cost. Outsourcing is beneficial in some portions of business process.

(4) Access to professional, expert and high quality services : Usually the non-core areas or tasks are given to the people who are expert, specialised and skilled in that particular field. These people provide better level of services. They commit less errors and avoid wastage and misuse.

(5) Emphasis on core process rather than the supporting ones : Outsourcing supporting the business processes, facilitates the organisation to concentration on its core (more important) areas to improve the quality of its products and services. This in turn leads to better profits and increase output and turnover.

(6) Investment requirements are reduced : By outsourcing the non-core areas, the organisation can easily save on investing in the latest technology. These organisation allow the outsourcing partners to handle the entire infrastructure. Thus, the organisation itself is required to manage only remaining portion of business process. Hence, investment requirements of the organisation are very less.

(7) Increased efficiency and productivity : Many a time tasks are outsourced to the vendors who are specialised in their fields. Outsourced vendors have deep knowledge, experience, specific equipment and technical expertise. They give performance or do assigned task much better than the ones at the outsourcing organisation. As a result the tasks can be completed faster, with greater efficiency and with better quality output.

(8) Knowledge sharing : Most of the times tasks are outsourced to the vendors who are specialised and expert in their fields. While working together outsourced partners (vendors) share their knowledge, experience, technical expertise, etc. with the employees of the organisation. This is one of the prime advantages of outsourcing. Organisation also uses and shares particular kind of service. Thus, outsourcing helps to develop both the companies and also boosts goodwill in the industry.

Question 4.
What are the disadvantages of outsourcing ?
Answer:
Disadvantages of outsourcing : The disadvantages of outsourcing are explained as follows:
(1) Lack of customer focus : An outsourced vendor may be catering to the expertise needs of several companies at a time. In such cases, the vendors may lack complete focus on outsourcing company’s needs or tasks. As a result, the quality of the outsourced service may not be up to the mark.

(2) A threat to security and confidentiality : When an organisation outsources some portions of business process, it involves a risk of exposing its confidential information to a third party. Similarly, there is danger of the misuse of company’s confidential information by the contractors. So outsourcing involves security issues.
(3) Dissatisfactory services : In case the organisation does not select right partner for outsourcing, it has to face several problems such as substandard quality output, delayed delivery, inappropriate categorisation of responsibilities, etc. It has to compromise on the quality of outsourcing.

(4) Ethical issues : In some cases, the company outsourcing its non-core areas, ignores ethical issues related to outsourcing. When the functions of the organisation are outsourced to a company from another country, the employment opportunities from one’s own country get reduced, which in turn aggravates the unemployment problem.

(5) Other disadvantages :

1. Misunderstanding of contracts ultimately creates many problems for the organisations.
2. Lack of effective communication also creates many problems to the organisations outsourcing their functions.
3. Some times the quality of the outsourced service is not up to the mark, poor and delayed services. In such cases company has to suffer heavy loss on account of wastage.

8. Answer the following

Question 1.
Explain the steps involved in online transaction.
Answer:
In online transaction there are three stages, viz. pre-purchase/sale, actual purchase/ sale and delivery stage. Online transaction involves the following steps:
(1) Registration : Registration is compulsory for online transactions. One who wants to do online shopping is required to register his name with online vendor by filling up a registration form. The consumer is required to login a particular website. The customer’s details such as email ID, name, address and other information are saved and are safe with the website along with a ‘Password’ relating to the registered ‘account’ and ‘Shopping cart’. To avoid misuse by anyone ‘Account’ and ‘Shopping Cart’ are password protected.

(2) Placing an order : The online shopper can select, pick up and drop the items or things in the shopping cart. The shopping cart keeps the systematic and detail record of what items or things have been picked up, quantity to be bought, the price of each product while browsing the online store. After confirmation, the customer or shopper has to choose a payment option.

(3) Payment : Making payment is the last step in online transaction. The buyer is required to select the payment option. The payment systems in online transactions are secured with very high level encryption. Because of these arrangements, the personal financial information gets completely secured. Payment can be made in one of the following ways:
(i) Cash on Delivery (COD) : According to Cash on Delivery mode of payment, after receiving physical delivery of goods, payments is effected at the doorstep of the customer. The customer can make payment in cash or through debit or credit card.

(ii) Cheque : Under this mode of payment, the S vendor collects the cheque from the customer and j after realisation of the cheque, delivery of the goods is given to the buyer.

(iii) Net banking transfer : Under this mode, the payment is made by buyer to vendor by transfer of funds through the internet. The buyer transfers the agreed purchase amount to the online vendor’s account. It is an electronic facility i of transferring funds though the internet. After receiving the amount, the vendor delivers the goods to the buyer.

(iv) Credit or Debit Cards : Credit card and Debit card are also called Plastic Money. The vendor gets the amount from the buyer through credit or debit card. The amount gets immediately transferred to vendor’s bank account. After the successful transfer of funds, goods are delivered by the vendor to buyer.

(v) Digital Cash : Digital cash is a form of electronic currency which has no reed physical properties. However, digital cash offers the ability to use real currency in an electronic format.

Question 2.
What is Outsourcing? Explain the advantages and disadvantages of outsourcing.
Answer:
[A] Meaning : Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration. In outsourcing, the service provider or contractor enters into an agreement or formal contract with the company or the firm for providing services against certain monetary charges. After this the service provider, will take the responsibility of carrying out the tasks as per the expectation of the company.

[B] Advantages : The advantages of outsourcing are explained as follows:
(1) Overall cost advantages : Outsourcing reduces cost. Outsourcing avoids the need to hire employees in houses. Hence, recruitment and training costs can be eliminated or minimised. It is also saves time and efforts on training the employees. Similarly, cost of outsourcing services is much less than recruiting work force for the company.

(2) Stimulates entrepreneurship, employment and experts : Outsourcing encourages and stimulates entrepreneurship, employment and expertness in the country from where outsourcing is done.

(3) Low manpower cost : In every organisation manpower is required to operate machineries, to do routine work, to perform jobs, to administer and manage business affairs. Recruitment and appointment of personnel on permanent basis are costly. Manpower through outsourcing is available at a lower cost. Outsourcing is beneficial in some portions of business process.

(4) Access to professional, expert and high quality services : Usually the non-core areas or tasks are given to the people who are expert, specialised and skilled in that particular field. These people provide better level of services. They commit less errors and avoid wastage and misuse.

(5) Emphasis on core process rather than the supporting ones : Outsourcing supporting the business processes, facilitates the organisation to concentration on its core (more important) areas to improve the quality of its products and services. This in turn leads to better profits and increase output and turnover.

(6) Investment requirements are reduced : By outsourcing the non-core areas, the organisation can easily save on investing in the latest technology. These organisation allow the outsourcing partners to handle the entire infrastructure. Thus, the organisation itself is required to manage only remaining portion of business process. Hence, investment requirements of the organisation are very less.

(7) Increased efficiency and productivity : Many a time tasks are outsourced to the vendors who are specialised in their fields. Outsourced vendors have deep knowledge, experience, specific equipment and technical expertise. They give performance or do assigned task much better than the ones at the outsourcing organisation. As a result the tasks can be completed faster, with greater efficiency and with better quality output.

(8) Knowledge sharing : Most of the times tasks are outsourced to the vendors who are specialised and expert in their fields. While working together outsourced partners (vendors) share their knowledge, experience, technical expertise, etc. with the employees of the organisation. This is one of the prime advantages of outsourcing. Organisation also uses and shares particular kind of service. Thus, outsourcing helps to develop both the companies and also boosts goodwill in the industry.

[C] Disadvantages of outsourcing : The disadvantages of outsourcing are explained as follows:
(1) Lack of customer focus : An outsourced vendor may be catering to the expertise needs of several companies at a time. In such cases, the vendors may lack complete focus on outsourcing company’s needs or tasks. As a result, the quality of the outsourced service may not be up to the mark.

(2) A threat to security and confidentiality : When an organisation outsources some portions of business process, it involves a risk of exposing its confidential information to a third party. Similarly, there is danger of the misuse of company’s confidential information by the contractors. So outsourcing involves security issues.
(3) Dissatisfactory services : In case the organisation does not select right partner for outsourcing, it has to face several problems such as substandard quality output, delayed delivery, inappropriate categorisation of responsibilities, etc. It has to compromise on the quality of outsourcing.

(4) Ethical issues : In some cases, the company outsourcing its non-core areas, ignores ethical issues related to outsourcing. When the functions of the organisation are outsourced to a company from another country, the employment opportunities from one’s own country get reduced, which in turn aggravates the unemployment problem.

(5) Other disadvantages :

1. Misunderstanding of contracts ultimately creates many problems for the organisations.
2. Lack of effective communication also creates many problems to the organisations outsourcing their functions.
3. Some times the quality of the outsourced service is not up to the mark, poor and delayed services. In such cases company has to suffer heavy loss on account of wastage.