XII Commerce

PREFACE
Dear students!
“Commerce” as a field of knowledge is all pervasive in nature. If offers enormous
opportunities of higher education and employment both in India and abroad.
Commerce as a stream of education can be defined as a study of trade and business

activities such as the exchange of goods and services from produces to final consumer.
The commerce stream after completion on class 10 is quite a popular choice in India,
as most students feel that the stream offers them a wide arena of career options to pursue
after class 12. That would bring them both successes as well as financial security easily.
Students who wish to take up the commerce stream should keep in mind that this
subject is not an easy alternative as compared to science. Both science and commerce are
complex study areas in their own ways and cannot be compared.
Hence, if a student wishes to pursue the Commerce stream only because they feel
that science is not a suitable stream for them, they need to rethink their choice.
The Commerce stream should be pursued by students who have an aptitude as well
as an avid interest in it.
“CommerCe Changes the fate and genius of nations”
- Thomas Gray
.
K S .NARENDRAN M.COM.,M.PHIL.,B.ED.,
GOVERNMENT.HR.SEC.SCHOOL
YEDAPPALLI
THE NILGIRIS
OBJECTIVE QUESTIONS
K.S.NARENDRAN.M.Com.,M.Phil.,B.Ed.,
Choose the Correct Answers
CHAPTER -1
Principles of management
1. Management is what a _______ does?

a.Manager b. Subordinate c. Supervisor d. Superior
2. Management is an ________
a.Art b. Science c. Art and Science d. Art or Science
3. Scientific management is developed by
a.Fayol b. Taylor c. Mayo d. Jacob
4. Dividing the work into small tasks is known as
a.Discipline b. Unity c. Division of work d. Equity
5. With a wider span, there will be _______ hierarchical levels.
a. More b. Less c. Multiple d. Additional
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CHAPTER -2
Functions of management
6. Which is the primary function of management?

a.Innovating b. Controlling c. Planning d. Decision-
making
7. Which of the following is not a main function?
a.Decision-making b. Planning c. Organising d. Staffing
8. _________ is included in every managerial function.
a.Co-ordinating b. Controlling c. Staffing d. Organising
9. Which of the following is verification function?
a.Planning b. Organising c. Staffing d. Controlling
10. The goals are achieved with the help of ____
a. Motivation b. Controlling c. Planning d. Staffing
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CHAPTER – 3
Management by objectives management by exception
11. ___________ System gives full Scope to the Individual Strength and Responsibility.
a. MBO b. MBE c. MBM d. MBA
12. Which is the First step in Process of MBO?
a.Fixing Key Result Area b. Appraisal of Activities
c. Matching Resources with Activities d. Defining Organisational Objectives
13. _______ keeps Management Alert to Opportunities and Threats by Identifying Critical
Problems.
a. MBA b. MBE c. MBM d. MBO
14. Delegation of Authority is Easily Done with the Help of __________ .
a. MBM b. MBE c. MBO d. MBA
15. MBO is popularised in the USA by __________ .
a.Prof. Reddin b. George Odiorne c. Henry Fayol d. F.W Taylor
CHAPTER – 4
Introduction to financial markets
16. Financial market facilitates business firms

a.To rise funds b. To recruit workers
c. To make more sales d. To minimize fund requirement
17. Capital market is a market for
a.Short Term Finance b. Medium Term Finance
c. Long Term Finance d. Both Short Term and Medium Term Finance
18. Primary market is also called as
a.Secondary market b. Money market c. New Issue Market d. Indirect Market
19. Spot Market is a market where the delivery of the financial instrument and payment of
cash occurs
a.Immediately b. In the future c. Uncertain d. After one
month
20. How many times a security can be sold in a secondary market?
a. Only one time b. Two time c. Three times d. Multiple
times
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CHAPTER – 5
Introduction to financial markets
21. Capital market do not provide

a. Short term Funds b. Debenture Funds c. Equity Funds d. Long term
Funds
22. When the NSEI was established
a. 1990 b. 1992 c. 1998 d. 1997
23. Primary market is a Market where securities are traded in the
a. First Time b. Second Time c. Three Time d. Several Times
24. Participants in the capital market includes
a.Individuals b. Corporate c. Financial Institutions d. All of the
above
25. The _______ was set up by a premier financial institution to allow the trading of securities
across the electronic counters throughout the country.
a. OTCEI b. Factoring c. Mutual Funds d. Venture Funds Institutions
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CHAPTER – 6
Money market
26. The money invested in the call money market provides high liquidity with
_________________.
a.Low Profitability b. High Profitability
c. Limited Profitability d. Medium Profitability
27. A major player in the money market is the _________________.
a.Commercial Bank b. Reserve Bank of India
c. State Bank of India d. Central Bank.
28. Debt Instruments are issued by Corporate Houses are raising short-term financial
resources from the money market are called __________.
a.Treasury Bills b. Commercial Paper
c. Certificate of Deposit d. Government Securities
29. The market for buying and selling of Commercial Bills of Exchange is known as a
__________.
a.Commercial Paper Market b. Treasury Bill Market
c. Commercial Bill Market d. Capital Market
30. A marketable document of title to a time deposit for a specified period may be referred to
as a ___
Treasury Bill b. Certificate of Deposit c. Commercial Bill d. Government
Securities
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CHAPTER – 7
STOCK EXCHANGE
31. ____ is the oldest stock exchange in the world.

a.London Stock Exchange b. Bombay Stock Exchange
c.National Stock Exchange d. Amsterdam Stock Exchange
32. There are _____ stock exchange in the country.
a. 21 b. 24 c. 20 d. 25
33. Jobbers transact in a stock exchange
a.For their Clients b. For their Own Transactions
c.For other Brokers d. For other Members
34. A pessimistic speculator is
a.Stag b. Bear c. Bull d. Lame Duck
35. An optimistic speculator is
a.Bull b. Bear c. Stag d. Lame duck
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CHAPTER – 8
SECURITIES EXCHANGE BOARD OF INDIA SEBI
36. Securities Exchange Board of India was first established in the year ____
a.1988 b. 1992 c. 1995 d. 1998
37. The headquarters of SEBI is _______
a. Calcutta b. Bombay c. Chennai d. Delhi
38. Registering and controlling the functioning of collective investment schemes as _______
a.Mutual Funds b. Listing c. Rematerialisation d.
Dematerialization
39. SEBI is empowered by the Finance ministry to nominate ______ members on the
Governing body of every stock exchange.
a.5 b. 3 c. 6 d. 7
40. Trading is dematerialized shares commenced on the NSE is ________
a. January 1996 b. June 1998 c. December 1996
d. December 1998
CHAPTER – 9
Human resource management
41. Human resource is a -------- asset.

a.Tangible b. Intangible c. Fixed d.
Current
42. Human Resource management is both ------------ and -----------.
a.Science and art b. Theory and practice c. History and Geography d. None
of the above
43. Planning is a -------------- function.
a.selective b. pervasive c. both a and b d. none
of the above
44. Human resource management determines the --------------------- relationship.
a.internal, external b. employer, employee c. Owner, Servant d.
Principle, Agent
45. Labour turnover is the rate at which employees ---------- the organisation
a.enter b. leave c. Salary d. None
of the above
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CHAPTER – 10
Recruitment methods
46. Recruitment is the process of identifying ---------------.

a.right man for right job b. good performer c. Right job d. All of the above
47. Recruitment bridges gap between --------------- and --------------.
a.job seeker and job provider b. job seeker and agent
c. job provider and owner d. owner and servant
48. Advertisement is a --------------- source of recruitment
a.internal b. external c. agent d. outsourcing
49. Transfer is an --------------- source of recruitment.
a.internal b. external c. outsourcing d. None of the
above
50. E- recruitment is possible only through -------------- facility.
a.Computer b. internet c. Broadband d. 4G
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CHAPTER – 11
Employee selection process
51. The recruitment and Selection Process aimed at right kind of people.
a. At right people b. At right time c. To do right things d. All of the
above
52. Selection is usually considered as a----------------- process
a.Positive b. Negative c. Natural d. None of these
53. Which of the following test is used to measure the various characteristics of the
candidate?
a.physical Test b. Psychological Test c. attitude Test d. Proficiency
tests
54. The process of eliminating unsuitable candidate is called
a. Selection b. Recruitment c. Interview d. Induction
55. Job first man next is one of the principles of -----------.

a. Test b. Interview c. Training d. placement
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CHAPTER – 12
EMPLOYEE TRAINING METHOD
56. Off the Job training is given

a.In the class room b. On off days c. Outside the factory d. In the
playground
57. Improves Skill Levels of employees to ensure better job performance
a.Training b. Selection c. Recruitment d. Performance
appraisal
58. When trainees are trained by supervisor or by superior at the job is called
a.Vestibule training b. Refresher training c. Role play d. Apprenticeship training
59. ________ is useful to prevent skill obsolescence of employees
a.Training b. Job analysis c. Selection d. Recruitment
60. Training methods can be classified into ________ and ________ training.
a.Job rotation and Job enrichment b. On the Job and Off the Job
c. Job analysis and Job design d. Physical and mental
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CHAPTER – 13
Concept of market and marketer
61. One who promotes or. Exchange of goods or services for money is called as --------------.
a.Seller b. Marketer c. Customer d. Manager
62. The marketer initially wants to know in the marketing is --------------------.
a.Qualification of the customer b. Quality of the product
a.Background of the customers d. Needs of the customers
63. The Spot market is classified on the basis of ----------------------.
a.Commodity b. Transaction c. Regulation d. Time
64. Which one of the market deals in the purchase and sale of shares and debentures?
a.Stock Exchange Market b. Manufactured Goods Market
a.Local Market d. Family Market
65. Stock Exchange Market is also called------------------.
a.Spot Market b. Local Market c. Security Market d. National Market
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CHAPTER – 14
Marketing and marketing mix
66. The initial stage of Marketing system is…………………….

a.Monopoly system b. Exchange to Money
c. Barter system d. Self producing
67. Who is supreme in the Market?
a.Customer b. Seller c. Wholesaler d. Retailer
68. In the following variables which one is not the variable of marketing mix?
a. Place Variable b. Product Variable c. Program Variable d. Price
Variable
69. Marketing mix means a marketing program that is offered by a firm to its
target……………………. to earn profits through satisfaction of their wants.
a.Wholesaler b. Retailer c. Consumer d. Seller
70. Which one is the example of Intangible product?
a.Education b. Mobiles c. Garments d. Vehicles
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CHAPTER – 15
Recent trends in marketing
71. Selling goods/ services through internet is

a.Green marketing b. E- business c. Social marketing d. Meta
marketing
72. Which is gateway to internet?
a.Portal b. CPU c. Modem d. Webnaire
73. Social marketing deals with:
a.Society b. Social Class c. Social change d. Social evil
74. Effective use of Social media marketing increase conversion rates of –
a.Customer to buyers b. Retailer to customers
c. One buyer to another buyer’s d. Direct contact of marketer
75. Pure play retailers are called
a. Market creators b. Transaction brokers c. Merchants d. Agents
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CHAPTER – 16
Consumerism
76. The term ‘consumerism’ came into existence in the year ---------.
a. 1960 b. 1957 c. 1954 d. 1958
77. Who is the father of Consumer Movement?
a. Mahatma Gandhi b. Mr. Jhon F. Kennedy c. Ralph Nader d. Jawaharlal
Nehru
78. Sale of Goods Act was passed in the year?
a. 1962 b. 1972 c. 1930 d. 1985
79. The Consumer Protection Act came into force with effect from
a. 1.1.1986 b. 1.4.1986 c. 15.4.1987 d. 15.4.1990
80. ------- of every year is declared as a Consumer Protection Day to educate the public about
their rights and responsibilities.
a. August 15 b. April 15 c. March 15 d. September 15
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CHAPTER – 17
Consumer protection
81. The final aim of modern marketing is ______

a.Maximum profit b. Minimum profit
c. Consumer satisfaction d. Service to the society
82. --------- is the king of modern marketing.
a.Consumer b. Wholesaler c. Producer d. Retailer
83. As the consumer is having the rights, they are also having -------.
a.Measures b. Promotion c. Responsibilities d. Duties
84. Which of the following is not a consumer right summed up by John F. Kennedy
a.Right to safety b. Right to choose c. Right to consume d. Right to be
informed
85. It is the responsibility of a consumer that he must obtain-------as a proof for the purchase
of goods.
a.Cash receipt b. Warranty card c. Invoice d. All of these
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CHAPTER – 18
Grievance redressal mechanism
86. The Chairman of the National Consumer Disputes Redressal Council is ______
a.Serving or Retired Judge of the Supreme Court of India. b. Prime Minister
c. President of India d. None of the above
87. The Chairman of the State Consumer Protection Council is _____
a.Judge of a High Court b. Chief Minister c. Finance Minister d. None of the above
88. The Chairman of the District Forum is ________
a.District Judge b. High Court Judge
c. Supreme Court Judge d. None of the above
89. The State Commission can entertain complaints where the value of the goods or services
and the compensation, if any claimed exceed
a.₹2 lakhs but does not exceed ₹5 lakhs b. ₹20 lakhs but does not exceed ₹1 crore
c. ₹3 lakhs but does not exceed ₹5 lakhs d. ₹4 lakhs but does not exceed ₹20 lakhs
90. The International Organisation of Consumers Unions IOCU.was first established in
a.1960 b. 1965 c. 1967 d. 1987
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CHAPTER – 19
ENVIRONMENTAL FACTORS
91. VUCA stands for ____, _____,_____,______.

a.Volatility, Uncertainty, Complexity and Ambiguity
b. Value, Unavoidable, Company and Authority
c. Volatility, Uncontrollable, Company and Auction d. All of the above
92. GST stands for ______,______,______.
a.Goods and Social Tax b. Goods and Service Tax
c. Goods and Sales Tax d. Goods and Salary Tax
93. Factors within an organisation constitutes _________ environment.
a. Internal Thinker b. External Thinker
c. Fellow human beings d. All of the above
94. Macro Environment of business is an _________ factor.
a. Uncontrollable b. Controllable c. Manageable d. Immanageable
95. The two major types of business environment are _______ and ___________.
a Positive and Negative b. Internal and External
c. Good and Bad d. Allowable and Unallowable
CHAPTER – 20
Liberalization, privatization and globalization
96. __________ is the result of New Industrial Policy which abolished the ‘License System’.
a.Globalisation b. Privatisation c. Liberalisation d. None of these
97. _________means permitting the private sector to setup industries which were previously
reserved for public sector.
a.Liberalisation b. Privatisation c. Globalisation d. Public Enterprise
98. _________ ownership makes bold management decisions due to their strong foundation
in the international level.
a.Private b. Public c. Corporate d. MNC’s
99. __________ results from the removal of barriers between national economies to
encourage the flow of goods, services, capital and labour.
a.Privatisation b. Liberalisation c. Globalisation d. Foreign Trade
100. New Economic Policy was introduced in the year _______
a. 1980 b. 1991 c. 2013 d. 2015
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CHAPTER – 21
The sale of goods act ,1930
101. Sale of Goods Act was passed in the year

a.1940 b. 1997 c. 1930 d. 1960
102. Which of the below constitutes the essential element of contract of sale?
a.Two parties b. Transfer of property c. Price d. All of the
above
103. Which of the below is not a good?
a.Stocks b. Dividend due c. Crops d. Water
104. In case of the sale, the ____ has the right to sell
a.Buyer b. Seller c.Hirer d. Consignee
105. The property in the goods means the
a.Possession of goods b. Custody of goods c. Ownership of goods d. Both a. and b.
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CHAPTER – 22
The negotiable instruments act ,1881
106. Negotiable Instrument Act was passed in the year ______.

a.1981 b. 1881 c. 1994 d. 1818
107. Number of parties in a bill of exchange are
a.2 b. 6 c. 3 d. 4
108. Section 6 of Negotiable Instruments Act 1881 deals with
a.Promissory Note b. Bills of exchange c. Cheque d. None
of the above
109. _______ cannot be a bearer instrument.
a.Cheque b. Promissory Note c. Bills of exchange d. None
of the above
110. A cheque will become stale after _____ months of its date:
a. 3 b. 4 c. 5 d. 1
CHAPTER – 23
ELEMENTS OF ENTREPRENEURSHIP
111. Which of the below is a factor of production?

a. Land b. Labour c. Entrepreneurship d. All of the
above
112. Entrepreneur is not classified as
a. Risk Bearer b. Innovator c. Employee d. Organizer
113. What are the characteristics of an entrepreneur?
a. Spirit of enterprise b. Flexibility c. Self Confidence d. All of the
above
114. Which of the below is not classified into managerial functions?
a. Planning b. Marketing c. Organizing d. Controlling
115. Which of the below is a commercial function?
a. Accounting b. Coordination c. Discovery of idea d. Planning
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CHAPTER – 24
TYPES OF ENTREPRENEURS
116. Which of the following is the Activity of a Business Entrepreneur?

a. Production b. Marketing c. Operation d. All of the above
117. Find the odd one out in context of Trading Entrepreneur.
a. Selling b.Commission c. Buying d. Manufacturing
118. Corporate Entrepreneur is also called as _____
a. Intrapreneur b. Promoter c. Manager d. Shareholder
119. Which of these is based on Technology?
a. Modern b. Professional c. Corporate d. Industrial
120. Which of the below is not a Characteristic of a Fabian Entrepreneur?
a. Conservative b. Risk averse c. Skeptical d. Adaptive
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CHAPTER – 25
Government schemes for entrepreneurial development
121. The _______ initiative was launched to modernize the Indian economy to make all
governments services available electronically.
a. Standup India b. Startup India c. Digital India d. Make in India
122. ________ is designed to transform India to a global design and manufacturing hub.
a. Digital India b. Make in India c. Startup India d. Design India.
123. ______ is the Government of India’s endeavour to promote culture of innovation and
entrepreneurship.
a.AIM b. STEP c. SEED d. AIC
124. ___________ should cover aspects like sources of finance, technical know-how, source of
labour and raw material, market potential and profitability.
a.Technical Report b. Finance Report c. Project Report d. Progress
Report
125. ____________has to include the mechanism for managing venture in the project report.
a.Banker b. Government c. Lending Institutions d. Entrepreneur
CHAPTER – 26
Company act 2013
126. The Company will have to issue the notice of situation of Registered Office to the Registrar of
Companies within _____ days from the date of incorporation.
a. 14 days b. 21 days c. 30 Days d. 60 Days
127. How does a person who envisages the idea to form a company called?
a. Director b. Company Secretary c. Registrar d. Promoter
128. Which of the following types of shares are issued by a company to raise capital from the existing
shareholders?
a. Equity Shares b. Rights Shares c. Preference Shares d. Bonus Shares
129. The shares which are offered to the existing shareholder at free of cost is known as ___________.
a. Bonus Share b. Equity Share c. Right Share d. Preference
Share
130. The shares which are offered first to the existing shareholder at reduced price is known as
_____________.
a. Bonus Share b. Equity Share c. Right Share d. Preference
Share
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CHAPTER – 27
COMPANY MANAGEMENT
131. A person Shall hold office as a director in ________ companies as per the Companies Act, 2013.
a. 5 companies b. 10 companies c. 20 companies d. 15 companies
132. A Private Company shall have a minimum of ________.
a. Seven directors b. Five directors c. Three directors d. Two directors
133. A Public Company having a paid up Share Capital of Rs. ___________ or more may have a Director,
elected by such small shareholders.
a. One crore b. Three crores c. Five crores d. Seven crores
134. What is the statue of Directors who regulate money of the company.
a. Banker b. Holder c. Agent d. Trustees
135. According to Companies Act, the Directors must be appointed by the.
a. Central Government b. Company Law Tribunal
c. Company in General Meeting d. Board of Directors.
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CHAPTER – 28
COMPANY SECRETARY
136. Mention the status of a Company Secretary in a company.

a. A member b. A director c. An independent contractor d. An employee
137. Who can become a secretary for a company?
a. Individual person b. Partnership firm c. Co-operative societies d. Trade unions
138. Which meeting will be held only once in the life time of the company?
a. Statutory b. Annual General c. Extra - ordinary d. Class General
139. Who is not entitled to speak at the annual general meeting of the company.
a. Auditor b. Shareholder c. Proxy d. Directors
140. From the date of its incorporation the First Annual General Meeting is to be conducted within ___
months.
a. Twelve b. Fifteen c. Eighteen d. Twenty one
YEDAPPALLI
THE NILGIRIS
TWO MARK QUESTIONS
CHAPTER -1
PRINCIPLES OF MANAGEMENT
1. What is management?
 Management helps to achieve the organizational mission and determines the future of the
business enterprises.
 Management is the art of getting things done with and through others.
2. List out the management tools
*Accounting * Business Law * Psychology * Statistics
*Econometrics * Data Processing
3. State the meaning of authority
 Authority means the right of a superior to give the order to his subordinates.
4. What do you mean by Span of Management?
 The Span of management refers to the number of sub-ordinates who can be
managed efficiently by a superior.
 The manager having the group of subordinates who report him directly is called
span of management.
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CHAPTER-2
FUNCTIONS OF MANAGEMENT
5. Write a shorts note about planning

*It refers to deciding Advance * Primary function of Management
*It should take place before doing * Nothing can be performed without planning
6. What is meant by motivation?
Motivation includes increasing the speed of Performance of a work and developing
willingness on the part of workers.
7. List the subsidiary functions of Management.
*Innovation * Decision Making * Representation * Communication
8. What is the traditional Proverb used in planning
“Think before you Act” or “Look before you leap”
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CHAPTER -3
MBO AND MBE
9. What are the objectives of MBO?

 To measure and judge Performance
 To relate individual performance to organization goals
 To stimulate the subordinates
10. Bring out the meaning of MBE.
MBE is a style of business management that focuses on identifying and handling cases that
deviate from the norm.
11. Mention any 2 advantages of MBO
 MBO gives the Criteria of Performance
 Delegation of Authority is easily done with the help of MBO
 Decisions taken by the management very quickly.
12. What is known as KRA?
 It is fixed on the basis of organizational objectives Premises
 KRA arranged on a priority basis
 It indicates strength of a organization
 Ex. Profitability Market standing. Innovation etc.
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CHAPTER -4
INDRODUCTION TO FINANCIAL MARKET
13. What are the components of organized sectors?

*Regulators *Financial markets * Financial Institutions * Financial
services
14. What is spot Market?
It is market where delivery of financial instrument and payment of cash occurs
immediately.
15. What is debt market?
It is the financial market for trading in debt Instrument. (i.e) Govt Bonds or securities,
Corporate Debentures or Bonds).
16. How is price decided in a secondary market?
 The Prices are decided by demand and supply force.
 It allows for the determination of the price of traded financial assets through
interaction of buyers and sellers.
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CHAPTER- 5
CAPITAL MARKET
17. What is capital market?

Capital market is a market where buyers and sellers engage in trade of financial
securities like bonds and stocks.
18. Write a note on OTCEI
 OTCEI was setup by Premier financial Institution to allow the trading of securities across the
electronic counters throughout the country.
 It shows transparency of Transaction and better liquidity.
19. Who are the participants in a capital market?
*Individuals *Corporate sectors * other financial Institutions *Govt *Banks
20. How is Price determined in a capital market?
The price of securities determined on demand and Supply
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CHAPTER -6
MONEY MARKET
21. What is a CD market?

 These are short term deposit instruments issued by banks and financial instruments.
 These are issued in the form of usance promissory notes.
 It is transferable from one party to another.
 Also called as “Negotiable certificate of deposits”
 The Market for buying and selling of Certificate of deposits is known as CD market.
22. What is govt securities market?
A market where by the govt or gilt – Edged securities can be bought and sold is called “govt
securities market.
23. What do you mean by auctioning?
A method of trading whereby merchants bid against one another and where the securities
are sold to the highest bidder is known as “auctioning”
24. What do you mean by switching?
The purchase of one security against the sale of another security carried out by the RBI in
the secondary market as a part of its open market operations described as “Switching”.
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CHAPTER -7
STOCK EXCHANGE
25. What is meant stock Exchange?

 It is an organized market provides a place for the investors to buy and sell securities freely.
 Also called stock market or share market.
26. Write any 5 stock exchange in India.
*Bombay stock Exchange * Calcutta stock Exchange
* Madras stock Exchange *Bangalore stock Exchange *Ahmadabad stock Exchange
27. What is meant by remiser?
 He acts as agent of a member of stock exchange
 He obtains business for his principal .i-e the member and gets a commission for that service.
28. Who is called Broker?
 Brokers act as intermediaries between buyers and sellers of securities.
 Brokers charge a commission from both the parties.
 They bring together the buyers and sellers and help them in making deal.
29. What are the types of Speculator?
*Bull * Stag * Bear * Lame duck
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CHAPTER-8
SECIRITIES EXCHANGE BOARD OF INDIA
30. Write short note on SEBI

 Securities and Exchange board of India established in 1988
 Given statutory powers in 1992
 It is an autonomous body by the govt. of India
31. Write any 2 objectives of SEBI
 REGULATION OF STOCK EXCHANGE
SEBI is to regulate stock exchanges so that efficient services may be provided to all the
parties operating there.
 PROTECTION TO THE INVESTORS
It means protecting them from the wrong information given by the companies in their
prospectus, reducing risk of payment
32. Mention the headquarters of SEBI
 SEBI has its headquarters at Bandrakula complex in Mumbai
 Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkatta, Chennai
Ahmedabad.
33. What are the Various Id Proofs?
*PAN card * Voter Id * Passport * Driving License
*Electricity bill *Telephone bill * Bank Passbook * IT returns
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CHAPTER -9
FUNDAMENTALS OF HUMAN RESOURE MANAGEMENT
34. What is Human resources management?

The branch of management that deals with managing human resources is known as
“Human Resources management”.
35. State two features of HRM
* UNIVERSALLY RELEVANT
HRM – has universal relevance and applicable at all levels.
* IT IS INTANGIBLE
HRM – is a intangible function which can be measured only by results.
36. Mention two characteristics of Human resource
 Human resources is the only factor of Production that lives
 Human resources created all other resources
 Human resources are emotional beings
37. What are the managerial functions of HRM ?
 Managerial functions – Planning , Organizing, Directing, Controlling
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CHAPTER- 10
RECRUITMENT METHODS
38. Give the meaning of recruitment?

Recruitment is the process of finding suitable candidates for the various posts in an
organization.
39. What is promotion?
Based on seniority and merits of the employees they are given opportunity to move up
in the organizational Hierarchy.
40. Write two internal source of recruitment. .
*TRANSFER
The employee can be filled is through transfer of employee from one department with surplus
staff to that of another with deficit staff.
*DEPENDANTS
The legal heir or the dependant employee may be given a chance to replace the deceased.
41. What is meant by poaching?
 It is also called “Raiding”
 Organizations instead of training and developing their own employees hire employees of
other competitive companies by paying them more financial and non- financial benefits.
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CHAPTER-11
EMPLOYEE SELECTION PROCESS
42. What is selection?

Selection is the process of choosing the most suitable person for the vacant position in
the organization.
43. What is an interview?
Interview represents a face to face interaction between the interviewer and
Interviewee.
44. What is Intelligence test?
Intelligence tests are one of the psychological test, that is designed to measure a
variety of mental ability, Individual capacity of a candidate.
45. What do you mean by placement?
The process of placing the right man on the right job is called “Placement”
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CHAPTER -12
EMPLOYEE TRAINING METHODS
46. What is meant by training?

Training is the act of increasing the knowledge and skills of an employee for doing
particular jobs.
47. What is mentoring training method?
 Mentoring is the process of sharing knowledge and experience of an employee
 The focus in this training is on the development of attitude of trainees. Mostly used for
managerial employees.
48. What is Role play?
 Under this method, trainees have to act out the roles assigned to them without any rehearsal.
 Ex. Role of customer and salesman, foremen and worker.
49. State e-learning method
 E- learning is the use of technological process of a traditional class room or office
 Also known as “Online learning” or “ web based learning”
CHAPTER -13
CONCEPT OF MARKETING AND MARKETER
50. What is market?

Market means a place where goods are bought or sold.
51. Define Marketer?
“A person whose duties include the identification of goods and services desired by a
set of consumers, as well as the marketing of those goods and services on behalf of a
company- Business dictionary.
52. What is meant by Regulated market?
 The market which are organized controlled and regulated by statutory measures.
 Ex- stock exchange of Chennai, Mumbai, Kolkatta
53. What is meant by spot market?
In such markets, goods are exchanged and the physical delivery of goods takes place
immediately.
54. What is meant by commodity market?
A commodity market is a place where produced goods or consumption goods are bought
and sold.
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CHAPTER -14
MARKETING AND MARKETING MIX
55. What is marketing?

Marketing is the performance of buying activities that facilitate to more flow of goods and
services from producer to ultimate user.
56. Define marketing mix
According to Jerome Me.Certhy,” Marketing mix is a pack or product mix, price mix,
place and promotion mix.”
57. What is meant by grading?
Grading means classification of standardized product into certain well defined classes.
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CHAPTER -15
RECENT TREND IN MARKETING
58. What is service marketing?

Service marketing denotes the processing of selling service goods like
telecommunication, banking Insurance, Health care, tourism, professional services,
repairs etc .
59. What is Green marketing?
 It refers to holistic marketing concept with growing awareness about the implications of
global warming, non- biogradable solid waste, harmful impact of pollutants etc.
 Also called Environmental marketing.
60. What is ambush marketing ?
 It is a new technique where by a particular advertiser seeks to connect his product
to the event in the mind of potential customer without paying sponsoring expenses
to the event.
 It is method of building branch in covert ways.
 Bigger companies engage in ambush marketing tactics to undermine official event
sponsors.
61. What is social marketing?
It is the systematic application of marketing philosophy and techniques to achieve
specific behavioral goals which ensure social good.
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CHAPTER – 16
CONSUMERISM
62. Who is a consumer?

A consumer is one who consumes goods manufactured and sold by others or created by
nature and sold by others.
63. Give 2 examples of adulteration.
 Mixing of coconut oil with Palmolein
 Chilli powder is adulterated with brick powder
 Mixing of stones with grains
 Coffee powder with tamarind seed.
64. What is Caveat Emptor?
 It serves as a warning to the buyers that they have no recourse with the seller if the
product does not meet their expectations.
 Caveat Emptor means “Let the buyer beware”
65. What is Caveat Venditor?
It means “Let the seller beware” by which goods are covered by an implied warranty of
merchantability.
66. Write a short notes on consumer Protection Act 1986
 The central govt enacted a comprehensive Law called consumer Protection Act 1986.
 Act was came into force with effect from 15-04-1987
 Further this Act amended in the year 1993
 In short it was called as “COPRA”.
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CHAPTER-17
CONSUMER PROTECTION
67. Write a short notes on, Right to be informed”

 It implies that manufactures and dealer are expected to disclose all the material facts
relevant and relating to the product.
 Consumers should be given all the relevant facts.
68. What are the rights of consumers according to John. F. Kennedy?
*Right to safety * Right to choose * Right to be informed * Right to
be heard
69. Which are the supreme objectives of the business?
Satisfaction of consumer needs / requirement is state to be supreme objectives of
business.
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CHAPTER-18
GRIEVANCE REDRESSEL MECHANISM
70. What do you mean by Redressal Mechanism?

 Redressal mechanism started at district, state and central Levels for the purpose of spreading
consumer awareness.
 It is a management and governance related process used commonly in India.
 It covers the receipt and processing of complaints from citizens and consumers.
 It includes the action taken on any issue raised by them to avail services more effectively.
71. What do you know about National commission?
 It is a quasi – Judicial commission
 Setup in the year 1988
 Head office at New Delhi
 Headed by retired judge of supreme court of India
 Members consists of 5, one president and 4 members
 Claim exceeds Rs.1 Crore
72. State the meaning of the term state commission
 The state consumer Protection council is also known as “Consumer Disputes Redressal
commission”
 It has the function at state level
 Members consist of 3, One President and 2 members
73. What is a term District forum?
 As per the COPRA Act,1986 at the district level each state established a consumer forum called
“District forum”
 Members consists of 3, one President and 2 members
 Claim exceeds the limit of 20 lakhs
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CHAPTER -19
74. What is internal environment?

Internal environment refers to those factors within an organization. Ex. Policies,
Programmes,Organizational structure etc.
75. Give the meaning of corporate governance
 Corporate governance is a set of rules and policies which governs a company.
 It provides frame work for managing company and achieving its objectives.
76. What is GST?
 It is the indirect tax levied on goods and services
 It is comprehensive, Multi stage, destination based tax.
77. Expand VUCA
V- Volatility U- Uncertainty C- Complexity A – Ambiguity
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CHAPTER-20
LIBERALIZATION, PRIVATIZATION, GLOBALISATION
78. State the branches of New Economic Policy.
*Liberalization *Privatization * Globalization
79. What is privatization?
It is the process of transferring ownership of business enterprises from the govt to the
private sector.
80. Mention any 3 disadvantages of Liberalization
*Increase in Unemployment * Unbalanced development * Loss to domestic units
* Increased Dependence on foreign nations
81. Give any two advantages of Globalization
*Expansion of market *Technological development
* Increase in foreign collaboration *Reduction in braindrain.
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CHAPTER-21
THE SALE OF GOODS ACT 1930
82. What is a contract of sale of goods?

It is a contract where by the seller transfer or agrees to transfer the property
(ownership) of the goods to the buyers for a price.
83. List the elements of contract of sale
*Two parties * transfer of property * Goods *Price
* Includes both “Sale” and ‘Agreement to sell”
84. What is meant by goods?
 The term goods include every kind of movable property stock and shares, growing crops etc.
 Goodwill, Trade mark, Copyrights, Patent rights also regarded as goods.
85. What is a contingent goods?
 Contingent goods are the goods the acquisition of which by the seller depends upon a
contingency.
 Contingent goods are a part of future goods.
CHAPTER- 22
NEGOTIABLE INSTRUMENT ACT 1881
86. What is meant by Negotiable Instrument?

It is a document which entitles a person to a certain sum of money and which is transferable from
one person to another by mere delivery or by endorsement and delivery.
87. List three characteristics of Promissory note.
 A Promissory note must be in writing
 The promise to pay must be unconditional
 It must be signed by the maker
88. What is meant by a cheque?
A Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand.
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CHAPTER – 23
ELEMENTS OF ENTREPRENEURSHIP
89. Mention any two features on entrepreneurs

*Spirit of Enterprises *Self confidence * Flexibility * Innovation * Hard work
*Leadership
90. List down the managerial functions of entrepreneurs.
*Planning *Directing * Co-ordination * organizing *controlling
91. List down the Promotional functions of Entrepreneurs.
*Discovery of Idea *Determining the business Prospective
* detailed Investigation *Choice of form of enterprises
*Fulfillment of the formalities * Preparation of business plan
*Procurement. * Mobilization of funds
92. List the problems faced by the women entrepreneur
*Problem of finance *Stiff competition *Limited mobility * Sensitivity
*Lack of Education *Lack of Information *Lack of Network support
*Dependent culture
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CHAPTER-24
93. What is the other name of business entrepreneur?

Business entrepreneur is called “Solo entrepreneur”.
94. Mention the other name for corporate entrepreneur
Corporate entrepreneur is called “Promoter”
95. Who are agricultural entrepreneur?
Agricultural entrepreneur are those entrepreneurs who raise farm products and
market them.
96. Give some examples of pure entrepreneur
*T.V.Sundram Iyengar *Dhirubai Ambani * Birla * Narayana Murthi
*Seshadriji * Azim Premiji * Jamshadji Tata
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CHAPTER-25
GOVT- SCHEMES FOR ENTREPRENEURIAL DEVELOPMENT
97. Name any 2 government entrepreneurial schemes

*Make in India * Digital India * Atal Innovation mission * Startup India
* Standup India * STEP, JAM, SEED
98. Give a note on “Digital India”
 It has been launched to the modernize the Indian Economy.
 It aims at transforming India into a digitally empowered society and knowledge economy with
universal access to goods and services.
99. List down the two types of finance
*Long term finance *Short term finance
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CHAPTER-26
COMPANIES ACT 2013
100. What are the four stages of formation of a company?

*Promotion *Registration *Capital subscription
*Commencement of business
101. What is bonus shares?
Bonus shares mean to utilize the company’s reserves and surpluses, issue of share to
existing shareholders without taking any consideration is known as “bonus shares”.
102. What is a right share?
The right shares are primarily issued to the existing equity share holders through a letter of
an issue, on pro rata basis.
103. What is debenture?
The company can borrow from the general public by issuing certificates for a fixed period
of time and at a fixed rate of interest such a loan certificate is called a debenture.
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CHAPTER -27
COMPANY MANAGEMENT
104. Name the companies required to appoint KMP

 Every listed company
 Every public company (Having paid up capital of Rs.10crores or more)
105. Who is whole time director?
A director is one who devotes whole of his time of working hours to the company and has a
significant personal interest in the company as the source of his income.
106. Who is called managing director?
A director is one who is employed by the company and has substantial powers of
management over the affairs of the company subject to superintendence, direction and control of
the board.
107. Who can be executive director?
An executive director is a chief Executive director or managing director of an organization,

company or corporation, who is responsible for making decisions to complete the mission and for
the success of the organization.
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CHAPTER -28
COMPANY SECRETARY
108. Who is a secretary?
The Person who steers the company holding the administrative, financial and overall
performance of the company is called “Company Secretary”.
109. Define meeting
A company meeting must be convened and held in perfect compliance with the various
provisions of the Act and the rules framed there under.
110. Write a short not on Proxy
 A Person being the representative of a shareholder at the meeting of the company.
 Proxy can attend the meeting and he cannot vote
111. What is vote?
 The word “Vote” originated in Latin word “Votum” indicating one wishes or desire
 Declaring his opinion against a proposal of a candidate.
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YEDAPPALLI
THE NILGIRIS
THREE MARKS
CHAPTER -1
1. Define the term management

“To manage is to forecast, to plan, to organize, to command to co-ordinate and to control”
– Henry Fayol
“Management is a multipurpose organ that manages a business and manages manager and
manages workers and work”. –Peter S.Drucker.
2. Differentiate management from Administration
Basis Management Administration
Meaning An Organised way of managing people and The process of Administering an
things of business organisation called organization by a group of people
“Management” known as “Administration”
Authority Middle and Lower level Top Level

Role Executive Decisive
Concerned with Policy Implementation Policy formulation
Area of Works under administration Control over the activities of the
operation organization.
3. What are Principles of Taylor?
 Science , Nit Rule of thumb
 Harmony, Not discord
 Mental Revolution
 Co-Operation, Not Individualism
 Development of each and every person to his other greatest efficiency and Prosperity.
4. What determines the span of management?
 CAPACITY OF SUPERIOR - Each manager or superior may heve different capacity and ability in
respect of leadership, communication and control affecting management of sub ordinates.
 CAPACITY OF SUB –ORDINATES – It affects the spen of management trained and experience
sub – ordinates.
 NATURE OF WORK - Span of management can be wider as sub-ordinates would not require
frequent guidance from the supervisor.
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CHAPTER-2
5. List out the main functions of management

*Planning * Directing *Co-ordinating * Organising *Motivating
* Staffing * Controlling
6. State the Importance of staffing
 Staffing refers to placement of right persons in the right job.
 It comprises the activities of selection and placement of competent personnel.
 The success on any enterprises depends upon the staffing functions.
7. How the employees are informed about the important matters in a company?
 Circulars
 Instructions manual
 News letter
 Notice board
 Meetings etc,.
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CHAPTER -3
MBO AND MBE
8. Write the features of MBO

- MBO tries to combine the long run goals of organization with short –run goals
- It increases the organizational capability of achieving goals.
- Management tries to relate the organization goals with society goals.
- Encourages a climate of trust, goodwill and a will to perform.
- Aims at replacing the exercise of Authority with consultations.
- MBO interegratet the goals of organization and individuals.
9. What are the process of MBE
 MBE is necessary to set objectives or norms with Predictable or Estimated results.
 These performances are assessed and equated to the actual performance
 If the actual performance deviates significantly, the issue needs to be passed to the senior
managers, as an exception has occurred.
 Finally, the aim is to solve this “exception” immediately.
10. List out any 4 process of MBO.
*Defining organizational objectives * Fixing key results Areas
*Goals of each section * Setting sub -ordinates objectives
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CHAPTER -4
INTRODUCTION TO FINANCIAL MARKETS
11. Give the meaning of financial market

 A market where in financial instruments such as financial claims, assets and securities are
traded known as “financial market”
 According to Brigham, Eugene. F, “The Place where people and organisations wanting to
borrow money are brought together with those having surplus funds called “financial
market”
12. Write a note on secondary market
 It is the market for securities that are already issued
 It is an important institution for the stock exchange and over the counter market.
13. Bring out the scope of financial market in India
 It provides financial assistance to individual, agricultural section, industrial and service
sectors etc.
 Though the financial market, the institutions get their short term as well as long term
financial assistance.
 It leads to the overall economic development.
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CHAPTER- 5
CAPITAL MARKET
14. What are the various kinds of capital market? Explain

Capital market is divided into primary and secondary market.
 PRIMARY MARKET - The Primary market deals with those securities which are issued to the
public for the first time. Also called “New issue market Primary market facilitates capital
formation.
 SECONDARY MARKET – The securities which are previously issued in the primary market are
traded here. It covers both stock exchange and over the counter market.
15. Explain any two functions of capital market
 SAVINGS AND CAPITAL FORMATION
In capital market, various types of securities help to mobilize savings from various sectors
of population (Individual, Corporate, Govt etc) this accelerates the capital formation in the
country.
 EASY LIQUIDITY
With the help of secondary market investors can sell off their holding and convert them
into liquid cash.
 SEBI emerged as an effective regulatory body for Primary and secondary market to protect
the small investors. New financial services such as credit rating were introduced.
16. Explain about Factoring and venture capital Institutions
FACTORING - It is arrangement whereby a financial institution provides financial accomodation on
the basis of assignment / sale of accounts receivables. Ex – SBI factors, commercial services
private ltd, can banks factors limited.
VENTURE FUND INSTITUTIONS - It is a form of Equity financing designed especially for funding
new and innovative project ideas. They include Risk capital foundation of IFCI, Venture fund of IDBI,
SIDBI and TDICI.
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CHAPTER -6
MONEY MARKET
17. What are the features of Treasurery Bills?

*Issuer * Liquidity *Monetary management * Finance bills * Vital source
18. Who are the participants of money market?
*Govt and central banks * Insurance companies * state govt * RBI and SBI
* Commercial banks * Public * Mutual funds *Non-banking financial institutions
19. Explain the types of treasurer y bills
Treasurery bills may be classified into three
 91 days Treasurery bills - Issued at fixed discount rate of 4% as well as through auctions.
 182 days Treasurery bills - RBI holds 91 days and 182 days bills and they are issued on tap
basis throughout the week.
 364 days Treasurery bill - These bills do not carry any fixed rate.
20. What are the types of commercial bill?
 Demand and Usance bills
 Clean and documentary bills
 Inland and foreign bills
 Indigenous bill
 Accommodation and supply bills
 DEMAND AND USANCE BILLS - A demand bill is one where in no specified time of payment is
mentioned.
 INDIGENOUS BILLS - The drawing and acceptance of indigenous bills are governed by native
custom or usage of trade.
 ACCOMODATION AND SUPPLY BILLS – These bills are those which do not arise out of genuine
trade of transactions.
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CHAPTER -7
STOCK EXCHANGE
21. What are the limitations of stock exchange?

 Lack of Uniformly and control of stock exchange
 Failure to control unhealthy speculation
 Allowing more than one charge in the place.
 No proper regulation of listing of Securities.
22. Explain BULL and BEAR
 BULL -Bull is an operator who expects a rise in prices of securities in future. Also called
“Optimistic speculator” or “ Tejiwala”
 BEAR – A bear or Mendiwala expects prices to fall in future and sells securities at present
with a view to purchase them at lower prices in future. Also called “Pessimistic speculator”
23. Explain stag and lame duck
 STAG - A stag is a cautious speculator
- He applies for shares in new companies and expects to sell them at a premium, if
he gets an allotment.
- Also called “Premium hunter”
 LAMEDUCK – When a bear finds if difficult to fulfil his commitment, he is said to be
struggling like lame duck.
CHAPTER-8
SECURITIES EXCHANGE BOARD OF INDIA
24. What is meant by Dematerialization?

 Dematerialization is the process by which physical share certificates of an investor are taken
back by the company and destroyed.
 The Electronic from are credited to the investors account with his depository participant
 Dematerialized shares do not have any distinctive number
 All the holding of a particulars security will be identical and Interchangeable.
 BSE commenced dematerialization of shares in Dec1997
25. What are the documents required for a Demat Account?
 PROOF OF IDNENTIFY – PAN card, voters ID, Passport, driving license, bank attestations, IT
returns, Electricity bills, Telephone bills and ID cards.
 PROOF OF ADDRESS – Ration card, Passport, Voter Id, driving license, bank pass book or bank
statement, verified copies of electricity bills.
26. Draw the organization structure of SEBI?
Director
Additional / Joint Director Additional Director Technical /Joint director
Deputy / Assistant Director Deputy Director Deputy Director
Assistant Director Assistant Director
Section officers Technical Assistants

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CHAPTER -9
27. Define the term Human resource Management

In the words of E.F.L Brech HRM as the part of management process which is primarily
concerned with the human constituents of an organization.
28. What are the characteristics of Human resource ?
 Human resources is the only factor of Production that lives
 Human resources created all other resources
 Human resources are movable
 Human resources can work as a team
 Human resources exhibit innovations and creativity.
29. What is the significance of Human resource?
 HR are well protected by legislative frameworks
 HR can be utilized at all levels of management
 Industrial relations depends upon human resource
 Human relations is possible only through human resources
 HR manages all other factors of production
 HR can be improved through training and Development Programmes.
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CHAPTER- 10
RECRUITMENT METHODS
30. What is meant by unsolicited applicants?

These are the applications of job seekers who voluntarily apply for the vacancies not yet
notified by the organization.
31. What is mean by job portals? .
Using internet job portals organization can screen for the prospective candidates and fill up
their vacancies.
32. State the steps in recruitment process outsourcing
 Requirement outsourcing
 Advertise and source
 Screening
 Validation
 Profile submission
 Interview process and feedback
 Selection and follow up
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CHAPTER-11
33. What is stress interview?

 It is conducted to test the temperament and emotional balance of the candidate interviewed.
 Interviewer creates stressful situation by directing the candidate to do irrational and irritating
activities.
34. What is structured interview?
 Under this method, a series of questions to be asked by the interviewer are pre- prepared by
the interviewer and only those questions are asked in the interviews.
 Also called “Guided” or “Planned Interview”.
35. Name the types of selection test?
ABILETY TESTS PERSONALITY TESTS
- Aptitude - Interest
- Achievement - Personality
- Intelligence - Projective
- Judgement - Attitude
36. What do you mean by achievement test?
 This test measures a candidate’s level of skills in certain areas, accomplishment and knowledge
in a particular subject.
 Also called “Proficiency test”.
 Ex. Music student may be asked to play a given instrument.
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CHAPTER -12
37. What is vestibule training?

 It is training of employees in an organization / environment similar to actual work
environment artificially created for training purpose.
 This training is given to avoid any damage or loss to machinery
 It is given to Drivers, pilots, space scientists etc.
38. What do you mean by on the job training?
 It refers to the training by which is given to the employee at the work place by his
immediate supervisor
 It is based on the Principle “Learning by doing and Learning while earning
 The employee learns the job in the actual work environment.
39. Write down various steps in a training programme
*Whom to train * Where to conduct the training programme
*Who is the trainee * what should be the level of training
*Who is the trainer * what method will be used for training
40. Write short notes on Trainer and Trainee
 TRAINER – Trainer is a person who teaches skills to employee and prepares them for a job
activity. He is also called “Instructor, Mentor, Guru, Guide, Counsellor etc.
 TRAINEE - A person who is learning and practicing the skills of particular job is called
“Trainee”
CHAPTER- 13
CONCEPT OF MARKETING AND MARKETER
41. What can be marketed in the market?

*Goods *Places
*Services *Properties
*Experiences * Organization
*Events *Information
*Persons *Ideas
42. Mention any three Role of Marketer.
*Instigator * Innovator *Integrator *Implementer
43. Explain the types of market on the basis of time
 VERY SHORT PERIOD MARKET – Market which deals in perishable goods like fruits, milk,
vegetables etc, are called “Very short period market”
 SHORT PERIOD MARKET – In certain goods, supply is adjusted to meet the demand. The
demand is greater than supply.
 LONG PERIOD MARKET - This market deals in durable goods. Where the goods and services
are dealt for longer period usages.
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CHAPTER- 14
44. What are the objectives of marketing?

 To develop the marketing field.
 To develop guiding policies
 To suggest solutions by studying the problems
 To revive existing marketing functions
 To find sources for further information concerning the market problems
45. What are the concept of marketing?
NEED FOR MARKET CONCEPT OF MARKETING
*To Exchange goods and services * Production concept
*To Introduce new modes of life * Product concept
*To improve the quality of life * selling concept
* Marketing concept
* Societal marketing concept
46. What do you mean by marketing mix? Describe any two elements
 Marketing mix is a pack of 4 variables namely, Product, Price, Place and promotion.
 PRODUCT – Product is the main element of marketing. Without a product, there can be no
marketing.
 PRICE - Price is the value of a product expressed in monetary terms. It is the amount
charged for the product.
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CHAPTER – 15
RECENT TRENDS IN MARKETING
47. What are the advantages of E-Marketing?

 Products bought through E-Marketing become cheaper
 Customer can buy whatever they want /need just by browsing the various sites.
 E-Marketing provides 24 hours and 7 days “24 7” service to its user.
48. Discuss the objectives of E-Marketing
*Expansion of market share *Achieving higher brand awareness
*Strengthening data base *Reduction of Distribution and promotional
Expenses
49. Explain in detail about Niche marketing?
 Niche marketing denotes a strategy of directing all marketing efforts towards one well
defined segment of the population.
 It aimed at being a big fish in a small pond instead of being a small fish in a big pond.
 Actually there is no market in niche market.
 The sports channels like STAR SPORTS, ESPN, and STAR CRICKET and FOX sports target the
niche market of sports enthusiasts.
 It is found by company, by identifying the needs of customers.
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CHAPTER -16
CONSUMERISM
50. What are the important legislations related to consumerism in India?

*Indian contract Act 1872 *Air Act 1981
*Sale of goods Act 1930 *ISI Act 1952
*Essential commodities Act 1955
*Weights and Measurers Act 1958
* Trade mark Act 1999
*Competition Act 2002
51. What is meant by artificial scarcity?

 Even though there is plenty of stock in the store, the shopkeepers put the board “No stock” in
front of their store and try to raise the price of goods.
 Ex- black market of cinema ticket, petrol, Hoarding of onion.
52. Write the importance of consumerism
*Awakening and Uniting consumers * Protecting against exploitation
*Awakening the government * providing complete and latest information
*Discouraging Antisocial activities * Discouraging unfair trade practices.
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CHAPTER-17
CONSUMER PROTECTION
53. What do you understand by “Right to Redressal”?

 The complaints and protests are not just to be heard. But the aggrieved party is to be granted
compensation within a reasonable time period.
 This will boost consumer confidence and help render justice to buyers
 There should be fair and just settlement of deserving claims in a definite time frame.
54. What do you understand about “Right to protection of health and safety”
 There may be few products that are more likely to cause physical danger to customers health,
lives and properly.
 The best examples of this kind are food additives , colour, Preservative, eradicated or reduced
altogether
 Recent legislations have shifted the responsibility for the production of such unsafe items on to
the shoulders of sellers rather than on buyers.
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CHAPTER-18
55. Who are the members of the National commission?

 National commission should have 5 members
 One should be from judiciary.
 Four other members of ability. Knowledge and experience from any field.
 It should include women.
56. Who are the members of the state commission?
 A person has been a high court judge as its president.
 Two other member relating in the field of Economics, Law, Commerce Industry, Public
affairs
 One shall be women among it.
57. Write a note on the Voluntary consumer organisation?
 Voluntary consumer organization formed to protect their rights and interests.
OBJECTIVES
 To enhance transparency and to digitalize the govt interface with its citizens.
 To strengthen consumer protection and welfare and to provide counselling and guidance.
 Consumer welfare fund is to strengthen the consumer Advocacy movement in India.
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CHAPTER -19
58. What is the Political environment factor?

 Legislative
 Executive
 Judiciary
59. Write about any 3 internal environmental factors of business?
 VISION AND OBJECTIVES - The vision and objectives of a business guides its operations and
strategic decisions.
 MANAGEMENT STRUCTURE - The structure of management / board and their style of
functorining which affects the decision making.
 VALUE SYSTEM - The success of an organization depends upon the sharing of Value system
by all members.
60. What do you know about technological environment?
 Technology is widely used in conducting market research for understanding the special needs
of the customer.
 The dynamic environment includes the following
 The level of technology available within the country
 Rate of change in technology
 Technological obsolescence.
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CHAPTER-20
61. What do you mean by Libralisation?

 It refers to Laws or rules being liberalized or relaxed by a govt.
 It’s done in order to make economics free to enter in the market and establish their venture in
the country.
62. State any 3 impacts on Globalization
 Globalization has led to a boom in consumer Products market.
 MNC can manufacture buy and sell goods worldwide
 The advent of foreign companies and growth in economy has led to job creation.
63. Write a short note on New Economic policy.
 Liberalization - It refers to Laws or rules being liberalized or relaxed by a govt.
 Privatization -It means permitting the private sector to set up industries which were
previously reserved for the public sector.
 Globalization - It means the interaction and integration of the domestic economy with the
rest of the world.
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CHAPTER-21
64. Discuss in detail about existing goods
 Existing goods are those owned or Possessed by the seller at the time of contract of sale.
 Goods Possessed even refer to sale by agents or by pledgers.
 Existing goods may be either
 Specific goods
 Ascertained goods
 Generic goods
65. Discuss the implied conditions and Warranties in sale of goods contract?
The term implied conditions and warrants means which can be indirect from or
guessed from the context of the contract.
Implied conditions Implied warranties
- Conditions as to title - Quiet Possession
- Conditions as to description - Free from any Encumbrances
- Sale by sample - Warranty in the case of
dangerous goods
- Conditions as to Quality or fitness
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CHAPTER- 22
NEGOITABLE INSTRUMENT ACT 1881
66. Distinguish between Negotiability and Assignability.

Basis Negotiability Assignability
 Consideration It is Presumed It is Proved

 Nature of Title Transferee gets the right of holder in due course Assignees titles is subject to
the title of Assignor
 Notice Notice is not necessary Must be served by assignee

on his debtor.
67. What are the Characteristics of bill of exchange?

 It is a document in writing.
 It must contain an order to pay.
 The order must be unconditional.
 The instrument must be signed by the person who draws it.
 The bill may be payable on demand or after a specified period.
68. Discuss the two different types of crossing.
 GENERAL CROSSING – Sec 123
Where a cheque bears across the face in addition to the words “&co”and“Not negotiable”
is called general crossing.
 SPECTIAL CROSSING – Sec 124

Where a chque across the face an addition of the bank name, with or without the words called
“Special crossing”
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CHAPTER – 23
ELEMENTS OF ENTREPRENURSHIP
69. Distinguish between entrepreneur and Manager.

Basis Entrepreneur Manager
 Motive To start a venture by setting of an To render service is an
organisation entity to setup for
execution of venture.
 Status He is owner of the entity Manager is a salaried
Employee
 Rewards Rewarded by profit Manager’s reward salary,
bonus, Allowance
70. List down the commercial functions of Entrepreneur and Explain shortly.
Or
Explain the commercial functions of entrepreneur.
 Production
 Marketing
 Accounting
 Finance
 Human resource management
 PRODUCTION – The Entrepreneur has to take decision making relating to selection of site,
design and layout, Types of products to be manufactured etc.
 ACCOUNTING – Entrepreneur has to prepare profit and loss A/c and balance sheet to know
the financial status of the business.
 FINANCE - The Entrepreneur has to take decisions regarding type of financing, framing
dividend policy and investing of funds effectively.
71. Explain the Promotional functions of entrepreneur
 DISCOVERY OF IDEA – A person may conceive his own ideas or develop the ideas
contributed by others.
 DETERMINIG BUSINESS OBJECTIVES – Entrepreneur has to develop business objectives in
nature of business and business activity types
 DETAILED INVESTIGATION – Entrepreneur has to analyse in detail the product proposes to
produce.
 CHOICE OF FORM OF ENTERPRISE – Entrepreneur has to choose the form of organization
to implement the venture.
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CHAPTER-24
72. Who is Private entrepreneur?

Venture started by individual either singly or collectively at their own risk after
mobilizing various resources in order to earn profit are called, “Private entrepreneur”
73. Explain about the imitative entrepreneur.
 Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology
already in place in advance countries.
 Ex – many electronic products invented in advance countries are simply reengineered in
developing countries.
74. Write about Fabian entrepreneur
 They are said to be conservatives and skeptical about plasticizing any changing in their
organization.
 They are of Risk – Averse type
 Their dealings are governed by customs, religion, tradition and past practices
 Ex.Nursus coffee.
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CHAPTER-25
75. What is startup India?

 Launched in Jan2016
 Through the startup India initiative the govt-of India Promotes entrepreneurship by mentoring,
Nurturing and facilitating startups throughout their life cycle.
76. Expand
 STEP - Support to training and Employment Programme for women
 JAM - Jan – Dhan –Aadhar – Mobile
 TREAD – Trade related entrepreneurship Assistance and Development
 M-SIPS – Modified special Incentive package scheme
 SEED – Science for Equity empowerment and Development
 New GEN IEDC - New Gen Innovation and Entrepreneurship Development Centre
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CHAPTER -26
COMPANY ACT 2013
77. What do you understand issue of securities at premium?
 When shares are issued at a price above the face or nominal value is called “issued at
Premium”
 For.Ex – Face value of shares Rs.10, issued at Rs.12 Here Rs.2 is the premium.
 The amt of share premium transferred to “Securities Premium Account.
78. Explain different kinds of Preference shares
 CONVERITIBLE PREFERENCE SHARES - These share can be converted in equity share after a time
period.
 NON – CONVERITIBLE PREFERENCE SHARES - These shares cannot be converted into equity shares.
 REDEEMABLE PREFERENCE SHARES - Such shares can be claimed after a fixed period or after giving
due notice.
 NON – REDEEMABLE PREFERENCE SHARES - Such shares cannot be redeemed during the life time
of the company.
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CHAPTER -27
COMPANY MANAGRMENT
79. When are alternative directors appointed?
 Alternative directors are appointed by board of directors, who may be absent from India. For
a period which is not less than 3 months.
 Appointment authorized by passing a resolution in the meeting.
 He is not a representative or agent.
80. Who is a shadow director?
A person who is not the member of board but has some power to run it can be
appointed as the director but according to his / her wish.
81. State the minimum no. of director for a private company
 In case of one Person Company, the requirement of director is one.
 In case of Private Company, the requirement of directors is two.
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CHAPTER -28
COMPANY SECRETARY
82. What is special resolution?
 A special resolution is the one which is passed by not less than 75% of majority.
 The no. of votes, cast infovour of the resolution should be three times, the no. of votes cast
against it
83. What do you mean by statutory meeting?
 The first general meeting of the public company is called “statutory Meeting”
 This meeting is conducted only once in life time of the company.
 A Private or Public company having no share capital need not conduct a statutory meeting.
 The company gives the circular to share holders before 21 days of the meeting.
84. Give any 3 cases in which an ordinary resolution need to be passed.
*To redeem debentures * To declare dividends
*To appoint directors * To alter the share capital
YEDAPPALLI
THE NILGIRIS
FIVE MARKS
CHAPTER -1
1. Explain the concept of management

 BODY OF KNOWLEDGE
Management knowledge is the best passport to enter the world of employment either
in business world or govt or private.
 MANAGEMENT TOOLS
Tools of management have been developed such as accounting, business Law,
psychology, statistics, econometrics, data processing etc.
 SEPARATE DISCIPLINE
Management studied in many Universities and institutions of higher learning are
recognized as a separate discipline.
Seminars, special courses, training programmers are becoming fashionable and
popular fro orientation and retraining in management Areas.
 SPECILISATION
There is a growing tendency to select and appoint highly qualified, trained and
experienced persons to manage the business in each functional areas of management.
 CODE OF CONDUCT
Enlightened business men have recognized that business management is a social
institution and it has social responsibilities to be fulfilled towards, customers, employees
and the public or community
 DEVELOPMENT OF EACH AND EVERY PERSON TO HIS OR HER GREATEST EFFICIENCY AND
PROSPERTIY
- Efficiency of any organization also depends on the skills and capabilities of its employees
to a great extent.
- This ultimately helps to attain efficiency and prosperity for both organization and the
employees.
2. Explain the Principles of modern management.
 DIVISION OF WORK
- The whole work is divided into small tasks.
- It leads to specialization which increases the efficiency of labour.
 AUTHORITY AND RESPONSIBILITY
- Authority means the right of a superior to his sub – ordinates.
- Responsibility means obligation for performance.
 DISCIPLINE
- It is obedience, proper conduct in relation to others, respect of authority.
- It is essential for the smooth functioning of all organizations.
 UNITY OF COMMAND
It states that each sub ordinate should receive orders and be accountable to one and
only one superior.
 REMUNERATION
Workers must be paid sufficiently as this is a chief motivation of employees and
therefore greatly influences productivity.
 THE DEGREE OF CENTRALISATION
The amount of power wielded with the central management depends on company
size.
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CHAPTER-2
3. Explain the various functions of management

MAIN FUNCTIONS
 PLANNING
- It is the primary function of management.
- Nothing can be performed without planning.
- It refers to deciding in advance.
 ORGANISING
Organizing is the process of establishing harmonious relationship among the
members of an organization.
 STAFFING
- It refers to placement of right person in the right jobs.
- It is the Activity of selection and placement of competent Personnel.
 DIRECTING
It denotes motivating, leading, guiding, and communicating with subordinates.
SUBSIDIARY FUNCTIONS
 INNOVATION
- It refers to the preparation of personnel and organization to face the changes made in
the business world.
- It includes developing new materials, New products, New techniques new design of a
product and cost reduction.
 DECISION MAKING
- It helps in smooth functioning of organization.
- Every employee of an organization has to take a number of decision every day.
 COMMUNICATION
It is the process of transmission of human thoughts, views or opinions from one
person to another person.
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CHAPTER -3
MBO AND MBE
4. What are the major advantages of MBO

- Helps the manager to understand their role in the total organization.
- Provides a foundation for participative management.
- MBO gives the criteria of Performance
- Delegation of authority is easily done with the help of MBO
- Motivates the workers by job enrichment
- The responsibility of worker is fixed through MBO
- Decision is taken by the management very quickly.
- Manager recognizes the need for planning and appreciates the planning.
5. What are the advantages of MBE?
 It saves the time of managers
 It focuses managerial attention on major problems
 It results in better utilization of managerial talents and energy
 It facilitates delegations of authority
 It leads to motivation and development of subordinates
 MBE provides better yardsticks for judging results.
 It forces manager to review past history and study related business data
 MBE keeps management alert to opportunities and threats by identifying critical problems.
6. Discuss the disadvantages of MBE.
 The main disadvantage of MBE is, only managers have the power over really important
decisions, which can be demotivating for employees at lower level.
 Furthermore, it takes time to pass the issues to managers.
 Managing employees who deviate from the normal procedures.
 Because of compliance failures are considered difficult to manage and typically find themselves
with limited job duties and ultimately terminated.
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CHAPTER -4
INTRODUCTION TO FINANCIAL MARKETS
7. Distinguish between New Issue market and Secondary market.

Basis of comparison New Issue market Secondary market
Meaning The market place for New The place where formerly
shares is called “Primary issued securities are traded is
Market” known “Secondary market”
Buying Direct Indirect
Price Fixed Price Fluctuates
Buying and selling between Company and Investors Investors
Intermediary Underwriters Brokers
Gained person Company Investors
8. Enumerate the different kinds of financial markets.

 On the basis of type of financial claim
- Debt market – It is the financial market for trading in debt instrument (i.e.
Government bonds or securities)
- Equity market – It is the financial market for trading in equity shares of comapanies
 On the basis of maturity of financial claim
- Money market – It is the market for short term financial claim. ( eg: Commercial
paper and treasurery bills)
- Capital market – It is the market for long term financial claim ( eg: shares and
debentures)
 On the basis of time of Issue
- Primary market – It is a market for new issues or new financial claims. Also called
New issue market.
- Secondary market – It is the market foe securities that are already issued.
 On the basis of time of delivery
- Cash/ spot market – It is a market where the delivery of the financial instrument
and payment of cash occurs immediately.
- Forward or future market – It is market where the delivery of assets and payment
of cash takes place at a predetermined time.
 On the basis of organization of structure
- Exchange traded market – It is a centralized organization with standardized
procedures.
- Over the counter market – It is a decentralized market with customized
procedures.
9. Discuss the role financial market.
 SAVINGS MOBILISATION
Obtaining funds from the savers of surplus units such as house hold individuals,
business firms, public sector units, and government is an important role played by
financial market.
 INVESTMENT
Financial market plays a key role in arranging the investment of funds thus collected in
those units which are in need of the same.
 NATIONAL GROWTH
Financial markets contribute to a nation’s growth by ensuring an unfettered flow of
surplus funds to deficit units. It leads to overall economic growth.
 INDUSTRIAL DEVELOPMENT
The different components of financial markets help an accelerated growth of Industrial
and Economic development of a country.
 ENTREPRENEURSHIP GROWTH
Financial market contributes to the development of the entrepreneurial class by
making available the necessary financial resources.
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CHAPTER- 5
CAPITAL MARKET
10. Discuss the characters of a capital market.

 SECURITIES MARKET
- Also called “Capital market”
- Deals with securities like shares, debentures etc.
 PRICE
Price determined based on demand and supply prevailing in capital market
 PARTICIPANTS
Participants include individuals, corporate sectors, govt, banks and other financial institutions.
 MARKET FOR FINANCIAL ASSETS
Capital market provides a transaction platform for long term financial Assets.
 LOCATION
Capital market is not confined to certain specific locations, although it is true that parts of the
market known centers known as stock Exchange.
11. Briefly explain the functions of capital market
 SAVINGS AND CAPITAL FORMATION
In capital market, various types of securities help to mobilize savings from various sectors
of population like individuals, corporate, govt etc.
 PERMANENT CAPTIAL
The Existence of a capital market/ stock Exchange enables companies to raise permanent
capital.
 INDUSTRIAL GROWTH
The stock Exchange is a central market through which resources are transferred to the
Industrial sector of the company. Stock exchange encourages people to invest in productive
channels.
 READY AND CONTINUOUS MARKET
The stock exchange provides a central convenient place where buyers and sellers can easily
purchase and sell securities.
 EASY LIQUIDITY
With the help of secondary market investors can sell off their holding and convert them
into liquid cash.
 DEVELOPMENT OF BACKWARD AREA
Capital market provides funds for projects in backward area. This facilitates economic
development of backward area.
12. Explain the various types of new financial Institutions.
 VENTURE FUND INSTITUTIONS
Venture capital financing is a form of Equity financing designed especially for funding new
and innovative project Ideas – It includes Risk fund of IFCI, IDBI, SIDBI, and TDICI
 MUTUAL FUNDS
Financial Institutions that provide facilities for channeling saving of small investors into
avenues of productive investments are called ‘Mutual funds” Like LIC, UTI, etc.
 FACTORING INSTITUTIONS
Factoring is an arrangement whereby a financial institution. Provides financial
accommodation on the basis of sale of Accounts Receivable. Ex-SBI factors and commercial
services Private limited.
 OVER THE COUNTER EXCHANGE OF INDIA
It was setup to allow the trading of securities across the electronic counters throughout the
country. OTCEI are transparency of transactions, quick deals, faster settlements and better
Liquidity.
 NATIONAL STOCK EXCHANGE OF INDIA LIMITED (NSEI)
NSEI was established in 1992. It is a nationwide electronic screen based “Scripless” and
“Floorless” trading system in Securities. It is expected to allow for an efficient and
transparent system of securities trading.
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CHAPTER -6
MONEY MARKET
13. Differentiate between money market and capital market.

Features Money market Capital market
Duration of funds Short term for a period of Long term for a period of
not exceeding one year more than one year.
Deals with Instruments Deals with commercial bills. Deals with shared,
Treachery bill, commercial debentures, Govt bonds etc.
paper etc.
Role of major Institutions The central bank and Development banks and
commercial banks are major Insurance companies are
players major players.
Place of Transaction There is no formal places Place at formal place.
Ex. Stock Exchange.
Risk Low credit and Market Risk High credit and High Risk
Liquidity High Liquidity Low Liquidity
Regulator Central bank is the regulator Besides central bank, special

Regulatory Authority like
SEBI etc.
Underwriting Underwriting is not a primary It is a primary function
function
Price Discovery No price Discovery exists Price Discovery mechanism
Exists.
14. Explain the characteristics of Money market?

 SHORT TERM FUNDS
It is purely for short term funds or financial assets called Near money.
 MATURITY PERIOD
Maturity period upto one year only.
 CONVERSION OF CASH
It deals with only those assets which are easily converted into cash without loss and
minimum transaction cost.
 NO FORMAL PLACE
There is no formal place like stock exchange.
 SUB MARKETS
It comprises of several sub markets like call money market. Acceptance market, bill market.
 WHOLE SALE MARKET
It is a wholesale market and the volume of funds traded in the market is very large.
 EXISTENCE OF SECONDARY MARKET
There should be an active secondary market for these instruments.
15. What are the characteristics of government securities?
 AGENCIES
- Govt – securities issued by central govt, state, govt, semi govt authorities
- Like Municipalities, autonomous, institution, port trust etc.
 ISSUE MECHANISM
The public depth office of the RBI undertakes to issue govt securities.
 TAX REBATE
A striking feature of these securities is that they offer wide- range of tax incentives to
investors.
 LIQUIDITY PROFILE
Liquidity profile of securities issued by central govt is high.
 RBI SPECIAL ROLE
RBI takes a special and an active role in the purchase and sale of these securities as
part of its monetary management exercise.
 ISSUE OPENING
A notification for the issue of the securities is made of few days before the public
subscription is open.
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CHAPTER -7
STOCK EXCHANGE
16. Explain the functions of stock Exchange?

 READY AND CONTINUOUS MARKET
- Stock Exchange is a market for existing securities.
- If an investor wants to sell his securities, he can easily and quickly dispose them off on a
stock Exchange.
 CORRECT EVALUTION OF SECURTIES
- The Prices at which securities are bought and sold are recorded and made public.
- These Prices are called “Market quotations”.
 PROTECTION TO INVESTDRS
- All dealings in a stock exchange are in accordance with well-defined rules and regulations.
- For Ex – Brokers cannot high rate of commission. Any malpractice will be severely
punished.
 AID TO CAPITAL FORMATION
Stock Exchanges thus ensure a steady flow of capital into industry and assists industrial
development.
 PROPER CHANNALISATION OF CAPITAL
The savings of individuals are directed towards promising companies which declare
good dividends over a period of time..
17. Explain the features of stock Exchange
 MARKET FOR SECURITIES
It is a market, where securities of corporate bodies, government and Semi- government
bodies are bought and sold.
 DEALS IN SECOND HAND SECURITIES
- It deals with shares, debentures, bonds and such securities already issued by companies.
- Hence stock exchanged called “Secondary market”.
 ASSOCIATION OF PERSONS
A stock exchange is an association of persons or body of individuals which may be
registered or unregistered.
 RECOGNITION FROM CENTRAL GOVT
Stock exchange is an organized market. It requires recognition from the central
govt.
 WORKING AS PER RULES
Stock exchange is governed by the rules and regulations of stock exchange as well
as SEBI Guidelines.
18. Distinguish between stock exchange and commodity exchange
Feature Stock Exchange Commodity Exchange
Meaning It is an organized market for A commodity exchange is
the purchase and sale of and exchange where
Industries and financial commodities are traded.
securities
Participants Investors and speculators Producers, Dealers, Traders

and body of speculators.
Object Facilitating capital formation Facilitating goods flow
and make use of capital through risk reduction.
resources
Period of Dealings Dealings for account for a Period of 2 or 3 months of
fortnight. future market dealings.
Articles traded Stock bonds and govt Only durable graded and
securities goods having large volume of
trade.
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CHAPTER-8
SECIRITIES EXCHANGE BOARD OF INDIA
19. What are the functions of SEBI?

 Safeguarding the interest of investors by means of adequate education and guidance.
 Regulation and controlling the business on stock markets.
 Barring insider trading in securities.
 Promoting self- regulatory organization of intermediaries.
 Carrying out steps on order to develop the capital market.
 Prohibiting deceptive and unfair methods used by intermediaries.
 SEBI issues guidelines and instructions to business concerning capital issues.
 SEBI regulates mergers and acquisitions to protect the interest of investors.
 Registering and controlling the functioning of collective investment scheme such as mutual
funds.
 Performing functions that may be assigned to it by the central govt. Of India.
20. Explain the powers of SEBI?
 POWER RELATING TO STOCK EXCHANGES AND INTERMEDIARIES
SEBI can ask the information from the stock exchanges and intermediaries
regarding their business transactions for inspection or scrutiny and other purpose.
 POWER TO REGULATE INSIDER TRADING
SEBI has power to regulate insider trading or can regulate the functions of
merchant bankers.
 POWER TO IMPOSE MONETARY PENALTIES
SEBI has been empowered to impose monetary penalties on capital market
intermediaries and other participants for a range of Violations.
 POWER TO INITIATE ACTIONS IN FUNCTIONS ASSIGNED
SEBI can issue guidelines to different intermediaries or can introduce specific rules
for the protection of interest of investors.
 POWER TO REGULATE BUSINESS OF STOCK EXCHANGES
SEBI is also empowered to regulate the business of stock exchange relating to
securities and regulation of acquisition of shares and takeovers of companies.
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CHAPTER -9
21. Explain the characteristics of Human resource

 Human resources are movable
 Human resource can work as a team
 Human resource created all other resources
 Human resources behavior are unpredictable
 Human resource alone can think, act analyses and interpret.
 Human resource is the only factors of production that lives
 Human resource exhibits innovation and creativity
22. Describe the significance of Human resource management
 TO IDENTITY MANPOWER NEEDS
Determination of man power needs in an organization is very important as it is a
form of investment.
 TO SELECT RIGHT MAN FOR RIGHT JOB
Human resource management ensures the right talent available for the right job.
 TO IMPROVE COMPETITIVE ADVANTAGE
Organizations with capable and competent employees can truly gain competitive
advantage in the globalised market.
 TO DETERMINE EMPLOYEE COMMITMENT
Human resource management determines the level of commitment of employees
to their work either through interview or questionnaire.
 TO ENSURE THE CORRECT REQUIREMENT OFMAN POWER
The organization should not offer from shortage or surplus manpower which is
possible through human resource management.
23. Discuss the operative functions of HRM
 PROCURMENT
Acquisition deals with job analysis, Human resource planning, recruitment, selection,
placement, transfer and promotion.
 DEVELOPMENT
It includes performance appraisal, training, carrier planning and development,
organizational development.
 RETENITION
This is made possible through health and safety, welfare , social security, job satisfaction
and quality of work life.
 INTEGRAION
It is concerned with those activities that aim to bring about reconciliation between
personal interest and organisaional interest.
 COMPENSATION
It deals with wages and salary, bonus, incentives, fringe benefits and social security
schemes.
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CHAPTER- 10
RECRUITMENT METHODS
24. Explain the internal sources of Recruitment.

 TRANSFER
The employee can be filled is through transfer of employee from one department with
surplus staff to that of another with deficit staff.
 DEPENDANTS
The legal Heir or the dependent employee may be given a chance to replace the deceased.
 ACQUISITIONS AND MERGERS
This is another way by which the organization acquires another business unit or merging
with another establishment.
 RETIRED EMPLOYEES
The employees who have already retired can be called to fill the vacancy as they have the
required qualification and experience.
 RETENION
The retiring employees can be used to meet the requirement after superannuation as per
management discretion.
25. Explain the external source of Recruitment

 ADVERTISEMENTS
The employer can advertise in details, journals magazines etc about the vacancies in the
organization specifying the nature of work, qualification, experience, salary offered, nature of
vacancy etc.
 UNSOLICITED APPLICANTS
These are the applications of job seekers who voluntarily apply for the vacancy not yet
notified by the organization.
 CAMPUS RECURITIMENT
The organization visits the educational institutions to identify and recruit suitable
candidates.
 WALKINS
Walk –in- applicants with suitable qualification and requirement can be another source of
requirement.
 E-RECRUITMENT
- The organizations which carry out recruitment online method said to follow e- recruitment
- It has become inevitable external source of recruitment.
26. What are the recent trends in Recruitment? .
 OUTSOURCING
Out sourcing firms that help in the process of recruiting through screening of applications
and finding the right person for job for which job they are paid service charges.
 POACHING
- It is also called “Raiding”
- Organisation instead of training and developing their own Employees of other
competitive companies by paying them more both financial and Non- financial benefits.
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CHAPTER-11
27. Briefly explain the various types of tests?
Selection Test
Ability Test Personality Test
Aptitude Interest
Achievement Personality
Intelligence Projective
Judgment Attitude
 ABILITY TEST
- A test is designed to measure an individual cognitive function in specific area.
- It is used to find the suitability of a candidate for a given job role.
 APITIDE TEST
- It is a test to measure suitability of the candidates for the post /role.
- Aptitude test can be measured by the following ways
*Numerical Reasoning test * Situational Judgment
*Verbal Reasoning test * Spatial Reasoning
*Inductive *Mental Arithmetic
*Mechanical * Vocabulary test
*Diagrammatic * Number sequence test
 ACHIEVEMENT TEST
- This test measures a candidate’s capacity to achieve in a Particular field.
- Ex. Music student may be asked to play a given instrument.
- Also called “Proficiency test”
 INTELLIGENCE TESTS
- It is one of the psychological test, is designed to measure a variety of mental ability,
individual capacity of a candidate.
 JUDGEMENT TEST
It is conducted to test the presence of mind and reasoning capacity of the candidates.
 PERSONALITY TESTS
- It is conducted to find out the temperament, emotional response, capability and stability
- It comprises the following test
 Interest test
 Personality Inventory
 Projective
 Attitude test
28. Explain the important methods of Interview?
 STRUCTURED INTERVIEW
- Also called “Planned” or “Guided Interview”.
- A series of questions to be asked by the interviewer are Pre-prepared by the interviewers
and only these questions are asked in the interview
 PRELIMINARY INTERVIEW
- It is conducted to know the general suitability of the candidates who have applied for the
job.
- This interview helps to cut cost and time.
 STRESS INTERVIEW
It is conducted to test the temperament and emotional balance of the candidate
interviewed.
 ONLINE INTERVIEW
- Due to technological development, these days’ interviews are conducted by means of
internet.
- Via Skype, we chat, Google Duo, viber, whatsapp
 DEPTH INTERVIEW
- It is conducted to test the level of knowledge of the interviewee in a particular field
intensively and extensively.
29. Differentiate Recruitment and Selection
Basis Recruitment Selection
Meaning It is an activity of searching candidates and It is the process of selecting
encouraging them to apply for it. suitable candidates in a job.
Approach Positive approach Negative approach
Sequence First Second
Method Economical Expensive
Process Very simple Very complex and complicated
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CHAPTER -12
30. Discuss the various types of training

Trading Methods
On the Job Training Off the job training
Coaching method Lecture method

Mentoring method Group Discussion method
Job rotation method Case study method
Internship training Role play method
Committee Assignment Seminar
 ON THE JOB TRAINING
It refers to the training given to employee at the work place by his immediate
supervisor.
 OFF THE JOB TRAINING
It is the method where the employees learn the job role away from the actual work
floor.
 LECTURE METHOD
Under this method trainees are educated about concepts, theories Principles and application of
knowledge in any particular area.
 E-LEARNING METHOD
It is the use of technological process to access of a traditional classroom or office. It is
also referred to “web based Training”.
 DEMONSTRATION METHOD
Demonstration involves showing by reason or Proof Explaining or making clear by use
of examples or experiments.
 VESTIBULE TRAINING
It refers an environment similar to actual work environment artificially created for
training purpose.
 PROGRAMMED INSTRUCTION METHOD
- Under this method, the subject matter to be learnt is presented in a series of units.
- It consists of Presenting facts, New knowledge and question and answer.
31. What is the difference between on the job and off the job training?
Basis On the job training Off the job training
Meaning The employee learns the job Training of employees outside
in the actual work the actual work location
environment
Location At the work place Away from the work place
Approach Practical Approach Theoretical approach
Principle Learning by performing Learning by acquiring
knowledge
Carried out By experienced employee By Experts
Work disturbance Distraction is more There is no distraction
Methods Coaching Mentoring, Job Role play, seminar, Vestibule
rotation etc. etc.
32. Explain the benefits of Training.
 BENEFITS TO THE ORGANISATION
- Reduce wastage of material
- Improves skill of employees
- Minimizes the time for supervision
- Reduces the Labor turnover.
 BENEFITS TO THE EMPLOYEES
- Improves the employees productivity
- Enhances the morale of the employee
- Builds up the confidence of employee
- Employees get higher earnings by incentives and rewards.
 BENEFITS OF CUSTOMER
- Customers get innovative products or Value added products
- Customers get better quality of Product / Service.
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CHAPTER- 13
CONCEPT OF MARKET AND MARKETER
33. How the market can be classified?

*On the basis of Area * On the basis of Volume
- Family - Wholesale
- Local - Retail
- National *On the basis of Regulation
- World - Regulated
*On the basis of Time - Unregulated
-Very short *On the basis of Economics
- Short - Perfect
- Long - Imperfect
* On the basis of Importance * On the basis of Transaction
- Primary - Spot
- Secondary - Future
- Terminal
* On the basis of goods
- Commodity market (Produce, Manufactured, Bullion)
- Capital market (Money, Foreign, Stock)
* FAMILY MARKET
When exchange of goods or services are confined with in a family or closed members
of the family is called family market.
* LOCAL MARKET
Participation of both the buyers and sellers belonging to a local area or areas maybe a
town or village is called local market.
* BULLON MARKET
It deals with purchase or sale of gold and silver. Mumbai,Kolkata and Kanpur are the
examples of bullion market.
* FOREIGN EXCHANGE MARKET
This type of markets helps exporter and importers in converting their currencies into
foreign currencies.
* WORLD MARKET
It is one where the buyers and sellers of goods are from different countries.
34. How the market can be classified on the basis of Economics?
 PERFECT MARKET
A market is said to be a perfect market, it satisfies the following
- Buyers and sellers have perfect knowledge of market
- The goods are identical or homogenous
- Prices should be Uniform
- Goods can be moved from one place to another
- Large numbers of buyers and sellers are there
 IMPERFECT MARKET
A market is said to be imperfect when
- Products are similar but not identical
- Prices are not Uniform
- There is Lack of communication
- Restrictions on movement of goods.
CHAPTER- 14
35. Discuss about the Evolution of marketing?

 BARTER SYSTEM - The goods are exchanged against goods, without any other medium of
Exchange like money.
 PRODUCTION ORIENTATION - It is concerned with the consumer preferences, concentration on
the mass production of goods.
 SALES ORIENTATION - It is the dominant factor, without any efforts for the satisfaction or the
consumer needs.
 MARKETING ORIENTATION - Aggressive advertising, Personal selling, large scale promotions are
used to boost sales.
 CONSUMER ORIENTATION - Under this stage satisfying the tastes, preferences and
expectations of the consumer satisfaction.
 MANAGEMENT ORIENTATION - A managerial role to Co – ordinate all interaction of business
activities with the objective of planning, promoting and distributing goods and services.
36. Narrate the Elements of marketing Mix
 PRODUCT
- It is the main element of marketing.
- Without a product, there can be no marketing
- It can be offered to a market for attention, acquisition, use or consumption that satisfy a
want or a need.
 PRICE
- It is the value of a product expressed in monetary terms
- It is the amount charged for the product
- Internal factors affecting price of a product are cost, objectives, marketing mix and
organizational considerations.
- External factors are customer’s suppliers, legal factors, market and demand.
 PLACE
Movement of products from the place of manufacture to the place of consumption at the
right time.
 PROMOTION
An Excellent product with competitive price cannot achieve a desired success and
acceptance in market, unless its special features and benefits.
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CHAPTER – 15
RECENT TRENDS IN MARKETING
37. Explain in detail how traditional marketing differ from E- marketing

E-Marketing Traditional Marketing
 It is very Economical and faster way It is very expensive and takes more time
 It is very expensive and time consuming to
It is quiet easier to promote the product
promote the product.
 Expand their operation with minimum man It needs more man power
power
 Product can be sold or bought 24 x7 That is not possible in traditional marketing
38. Discuss any two new methods of marketing?
 REFERRAL MARKETING
- It refers to spreading the word about a product or service through existing customers of
business enterprises rather than through traditional advertising.
- It is the method of promoting products or service to new customers through referrals.
- It is also called. “World – of- mouth” marketing.
 CONTENT MARKETING
- It is said to be the art of communicating with customers and prospects without selling.
- Under this concept product/ services are presented impressively to target market which
responds to the content delivered in the form of good sales response and greater loyalty.
- It is also called “Non – Interruption marketing”.
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CHAPTER -16
CONSUMERISM
39. How consumer is exploited?

 SELLING AT HIGH PRICE
The price charged by the seller for a product /service may not be commensurate with the
quality but a times it is more than the fair price.
 ARTIFICIAL SCARCITY
Even though there is plenty of stock in the store, the shopkeeper put the board “No stock” in
fornt of their store and tries to raise the price of goods.
 FALSE ADVERTISMENT
- Many times advertisement makes false representation about the quality, price, grade,
composition, utility guaranteed, performance.
- Consumers who buy the products on the faith of claims made in advertisement are
cheated.
 ADULITERATION
- It refers to mixing or substituting undesirable material in food.
- Adulteration is quite common in food Articles
- It is a crime which cannot be pardoned as it spoils the very healthy of consumers.
- Ex. Mixing of stones with grains,Papayes Seed is added to black Pepper
 DUPLICATE
- Duplicate produces are illegally produced and sold
- A consumer is not in a position to distinguish duplicate from Original
- Duplicates are in radios, machines, pen, jewellery, clothes etc.
40. Explain the role of business in consumer protection.
 AVOIDANCE OF PRICE HIKE
Business enterprises should desist from hiking the price in the context of acute shortage of
goods.
 AVOIDANCE OF HOARDING
Business Enterprises should not indulge in hoarding and black marketing to earn maximum
possible profit in the short term at the cost of consumer.
 GUARANTEES FOR GOOD QUALITY
Business enterprises should not give false warranty for the Products. It should ensure supply of
good quality.
 TRUTH IN ADVERTISING
Business enterprises should not convey false, untrue, bogus information relating to the product
through the advertisement.
 PROTECTION FROM THE HAZARD
Business enterprises should not market the product which is potentially hazardous and
harmful.
41. What are the objectives of consumer protection Act, 1986?
 Protecting consumer from unfair trade practices of trader.
 Educating the consumers of their rights and duties.
 Ensuring better standard of living for consumers.
 Protection of consumers against marketing of goods which are hazardous and dangerous to life.
 Providing quality, quantity of goods purchased by consumers.
 Empowering consumers to seek Redressal against exploitation.
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CHAPTER-17
RIGHT, DUTIES, AND RESPONSIBILITIES OF CONSUMERS
42. Explain the duties of consumers

 BUYING QUALITY PRODUCTS AT REASONABLE PRICE
- The consumer should enquire about the Price from certain shops and if possible from
govt. Stores to get an idea of its price.
- It is the responsibility of a consumer to purchase a product after gaining a thorough
knowledge about price, quality, terms and condition.
 READING THE LABEL CAREFULLY
- It is the duty of the consumer to thoroughly read the label of the Product.
- It should have correct complete and true information about the product.
 BEWARE OF FALSEAND ATTRACITIVE ADVERTISEMENT
- Often the products are not as attractive as shown in the Advertisement by the sellers
- It is the prime duty of consumer not to get misled by such fraudulent advertisements.
 BUYING STANDARDISED PRODUCTS
It is the duty of the consumer to buy products with standardization marks which is supposed
to be safe in every respect.
 NEVER PURCHASE FROM BLACK MARKET
- The consumer should discharge his duties as responsible citations.
- He should not buy things from black market and in excess of his requirement.
43. What are the responsibilities of consumer?
 The consumer must pay price according to terms and conditions.
 The consumer should not be carried away by exaggerating the quality of the goods through
advertisement.
 The consumer has every right to safety, right to informed, rights to choose, right to represent,
and right to seek Redressal and right to seek information.
 The consumer must file a complaint with the seller concerned about the defects or short
comings.
 The consumer must watch for ISI, Agmark, FPO, the standard quality certification, marks.
 The consumer is bound to pay any interest and special damages caused to the seller.
 The consumer seeks to collect information about quality, quantity, price of the product.
 The consumer must get cash receipt as a proof of goods purchase from the seller.
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CHAPTER-18
44. Explain the overall performance of National commission.

 NATIONAL COMMISSION
- It was setup in 1988
- Head office in New Delhi
- Headed by retired judge of Supreme Court of India.
- Also called as “National consumer Disputes Redressed Commission”(NCDRC)
 MEMBERS
- It should have 5 members
- One should be from judiciary and 4 other member from ability, knowledge and
experience from any fields.
- It should include women.
 JURISDICION
- To entertain a compliant valued more than one crore.
- Revised the orders of state commission.
- To call for records and orders from state commission and District forum.
 APPELLATE FOREUF
National commission may prefer an appeal against such orders to Supreme Court of
India within a Period of 30 days.
45. Explain the overall performance of state Commission.
STATE COMMISSION
- It is also known as “Consumer Disputes Redressal Commission”.

- It is functioned at state level.
 MEMBERS
- It should have 3 members.
- One members appointed by state govt. retired judge of High court
- Two others member from ability in Economics, Law, Commerce them, one shall be a
women.
 JURISICTION
- To Entertain a claim exceed Rs.20 lakhs and below rupees one crore.
- To entertain appeals against the orders of any District forum.
 APPELLATE FORUM
- State commission may prefer an appeal to National Commission within 30 days from the
date of such order.
- The state commission may reverse or confirm the orders passed by the district forum.
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CHAPTER -19
46. Discuss the role of Macro environment of business

 ECONOMIC ENVIRONMENT
The business is an integral part of the economic system prevalent in a nation. The multiple
variables in the macro environment system which has bearing on a business include.
 Nature of Economy based on the stage of development
 Nature of Economic system
 The Economic policies of a nation
 Development of financial market
 Economic structure.
 SOCIAL –CULTURAL ENVIRONMENT
Business is a part of the society. It refers to the sum total of factors of the society in which
the business is located. Social and cultural environment of society affects the business. It
includes.
*Caste system * Role of marriage
*Social institutions and groups * Life style of people
*Customs, beliefs and values * Family structure.
 TECHNOLOGICAL ENVIRONMENT
- The Development of IT and telecommunications has created a global market.
- Technology used in managing inventory. Storing goods in warehouses, in distributing
goods and in receiving payment.
- It includes level of technology, technological obsolescence, rate of change in
technology.
 POLITICAL AND LEGAL ENVIRONMENT
- The framework for running a business in given by the political and legal Environment.
- The legislative, executive and judiciary are three political instructions which directs and
influences a business.
 GLOBAL ENVIRONMENT
With the growth of technology the physical boundaries are fast disappearing and the new
global market is emerging. It affects the following
- Differences in currencies
- Difference in culture and Language
- Differences in faster and preferences of people
- Differences in norms and practices
- Differences in degree of adoption of technology.
47. Explain the micro environment factors of business.
 FINANCIERS
The financiers of a business which includes the debenture holders and financial institutions
play a significant part in the running of a business.
 SUPPLIERS
- In any organization the suppliers of raw materials and other inputs play a vital role.
- Organisations have realized the importance of nurturing and maintaining good
relationship with the suppliers.
 MARKETING CHANNEL MEMBERS
Market Research agencies help the firm to understand the needs of the customers while
advertising agencies help in promoting the products and services.
 CUSTOMERS
- The aim of any business is to satisfy the needs of its customers.
- Customer relationship management aims at creating and sustaining cordial relations
with customers.
 COMPETITORS
- Competitors may be for the same product or for similar products.
- It is important for a business to its competitions and modifies their business strategies
in the face of competition.
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CHAPTER-20
48. Explain the advantages and disadvantages of liberalization.

 ADVANTEGS
INCREASE IN CONSUMPTION
- Liberalization increases the number of goods available for consumption within a
country due to increase in production.
CONTROL OVER PRICE
- The removal of tariff barriers can lead to lower prices for consumers.
REDUCTION IN EXTERNAL BORROWINGS

- Liberalization reduces the dependence on external commercial borrowings by
attracting more foreign investments.
 DISADVANTAGES
INCREASE IN UNEMPLOYMENT
- Liberalization often leads to a shift in the balance of an economy.
- There may often be structural unemployment from certain industries closing.
UNBALANCED DEVELOPMENT
- Liberalisation may be damaging for developing economice.
- Liberalisation other benefits developed countries rather than developing
Economice.
49. What are the highlights of LPG policy ?
 Introduction of new foreign trade agreements
 Foreign investments
 Deregulation
 Tax reforms
 Abolition of license
 MRTP ACT 1969
 Steps to regulate inflation
 Opportunities for overseas trade.
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CHAPTER-21
50. Explain in detail the elements of contract of sale.

 TWO PARTIES
- A contract of sale involves two parties, the seller and the buyer
- The buyer and the seller should be two different persons
- If a person buys his own goods, there is no sale.
 TRANSFER OF PROPERTY
- The seller must transfer to agree to transfer the ownership to the buyer.
- A mere transfer of possession does not amount to sale
 GOODS
- The term “goods “includes every kind of moveable property, stock and shares, growing
crops etc.
- Goodwill, Trademark, copy rights, patent rights also regarded as goods.
 PRICE
- The monetary consideration for the goods sold is called ‘Price”
 INCLUDES BOTH “SALE” AND “AGREEMENT TO SELL”
- If the property in goods is transferred immediately to the buyer it is called a ‘sale”
- If the property takes place at a future date, it is called an ‘Agreement to sell.
51. Distinguish between conditions and warranty.
Basis Condition Warranty
Meaning It is a stipulation which is essential to the It is a stipulation which is collateral
contract of sale to the contract.
Significance It is so essential to the contract It is a subsidiary or Interior
character.
Transfer of Ownership on goods cannot be Ownership on goods can be
ownership transferred transferred.
Remedy The affected party can cancel the The affected party cannot cancel the
contract and claim damages contract but can claim damages.
Treatment Breach of condition may be treated as Breach of warranty cannot be treated
breach of warranty as breach of condition.
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CHAPTER- 22
NEGOITABLE INSTRUMENT ACT 1881
52. Distinguish a cheque and bill Exchange
Basis Bill of Exchange Cheque

Drawn It can be drawn on any banker It can be drawn only on
particular bank
Grace period 3 days of grace are Allowed No days of grace are
allowed
Discounting A bill cannot be crossed A cheque can be crossed
either generally or specially.
Crossing A bill cannot be crossed A cheque can be crossed
either generally or specially
Notice Notice of Dishonour Necessary Notice is not necessary for
dishonor.
Stamping Bills are to be sufficiently stamped Cheques need not be
stamped
Payability Payable on demand or on the expiry It is payable on demand
of certain period. only
Sets Foreign bills of exchange are drawn It is not so incase of cheque.
in sets of three
53. Discuss in detail the features of a cheque.
 INSTRUMENT IN WRITINGS
 A cheque must be an instrument in writing.
 Cheque being written in Pencil, bankers never accept
 DRAWN ON A SPECIFIED BANKERS
 The cheque is always drawn on a specified banker
 The customer of a banker can draw the cheque only on the particular branch of the bank
where he has an account.
 CERTAIN SUM OF MONEY ONLY
 The order must be for payment of only money
 It the banker is asked to deliver securities, the document cannot be called a cheque.
 PAYEE TO BE CERTAIN
The cheque must be made payable to a certain person or to the order of a certain person
or to the bearer of the instrument.
 SIGNECE BY THE DRAWER
 The cheque is to be signed by the drawer.
 It should tally with specimen signature at the time of opening the account.
54. What are the requisites of a valid Endorsement?
 It is usually made on the back of negotiable Instrument
 Endorsement must be in link.
 Endorsement for only a part of the amount of the instrument is invalid
 Signing in block letters does not constitute regular Endorsement
 If the payee is an illiterate person, he can endorse it by affixing his thumb impression on the
instrument.
 Endorsement is complete only when delivery of the instrument is made.
 When there is no space for making further endorsement a piece of paper can be attached
called as “Allonge”
 It is presumed that negotiable instruments were made in the order in which they appear.
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CHAPTER – 23
ELEMETS OF ENTREPRENEURSHIP
55. What are the characteristics of an entrepreneur?

 SPIRIT OF ENTEPRISE
 Entrepreneur should be bold enough to encounter risk arising from the venture
undertaken.
 He should not get discouraged by frustrations or setbacks.
 SELF - CONFIDENCE
Entrepreneur should have a self confidence in order to achieve high goals in the business.
 FLEXIBILITY
Entrepreneur should change the decision made already in the light of ever- changing
business environment.
 HARDWORK
Entrepreneur should put in strenuous efforts and constant endeavors top accomplish the
goals of the venture successfully.
 FORESIGHT
Entrepreneur should foresee the likely changes to take place in market, consumer
attitude, technological developments etc.
56. Distinguish between entrepreneur and Intrapreneur
Basis Entrepreneur Intrapreneur
Thinking Free thinker Forced to think independently
Dependency Independent person Dependent on the Entrepreneur
Reward Rewarded by profit Gets, Salary, Perquisites,
Incentives for the service.
Status Entrepreneur is owner Intrapreneur is salaried
Employee.
Operation Operates mostly outside the enterprise Operator within the Enterprise.
Risk –bearing He bears the risk involved in the venture He does not bear any risk.
57. Discuss the problems faced by women entrepreneur.

 PROBLEM OF FINANCE
 Financial institutions do not consider women in general creditworthy as they are skeptical
of their entrepreneurial capabilities of woman.
 Because of limited funds, women entrepreneur are not able to effectively and efficiently to
run the business.
 DEPENDENT CULTURE
 In India, Women are to be dependent on their parents, life partners and children during the
various phases of their life cycle.
 The cultural barrier does not allow them to start and manage their ventures.
 STIFF COMPEITION
 Women entrepreneurs have to face acute competition for their goods from organized
sector and from their male counterparts.
 They are not able to compete effectively and efficiently in the market.
 LACK OF NETWORK SUPPORT
 The successful operation of any venture depends upon the various constituencies like
family members, friends, relatives, neighbors, institutions and so on.
 Women entrepreneur have lack of knowledge or limited knowledge about subsidies
prevents them from availing special concessions, benefits and incentives awarded by govt
and other agencies.
 LACK OF INFORMATION
Women entrepreneur have lack of knowledge or limited knowledge about subsidies
prevents them from availing special and incentives awarded by govt and other agencies.
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CHAPTER-24
58. Explain in detail on classification according to the type of business.

 BUSINESS ENTREPRENEUR
 He is also called “Solo Entrepreneur”
 He /she is the one who conceives an idea for a new product/ service and established
business enterprises to translate his idea into reality.
 TRADING ENTREPRENEUR
 Trading Entrepreneur are those who restrict themselves to buying and selling finished
goods.
 They get their income by way of commission and marketing
 SERVICE ENTREPRENEUR
 Service Entrepreneur enters into the venture of supplying service products to end
consumers.
 Examples- Hoteliers, Airlines, banking, Insurance, advertising firms, Train service etc.
 AGRICULTURE ENTREPRENEUR
 Agricultural Entrepreneurs are those entrepreneurs who raise farm products and market
them.
 These entrepreneur pursue their venture in agriculture and allied sector.
 CORPORATE ENTREPRENEUR
 Also called “Promoter”
 He takes initiative necessary to start an entity under corporate format.
 He arranges to fulfill the formalities to start a corporate entity under company Law.
59. Discuss the nature of functional entrepreneurs.
 ACCORING TO FUNCTION
 Innovative
 Imitative
 Fabian
 Drone
 INNOVATIVE ENTREPRENEUR
 Innovate entrepreneur is one who is always focused on introducing a new project or
introducing something new in the venture.
 Innovation may take the form of new product, upgraded product new method of
distributions of product etc.
 IMITATIVE ENTREPRENEUR
Imitative Entrepreneur is one who simply imitates existing skill, knowledge or technology
already in place in advanced countries.
 FABIAN ENTREPRENEUR
 They are said to be conservatives and skeptical about plasticizing any change in their
organization.
 They are of Risk – averse type
 Their dealings are governed by customs, religion, tradition and past practices.
 Ex. Nursus coffee.
 DRONE ENTREPRENEUR
 Drone Entrepreneur is those who are totally opposed to changes unfolding in the
environment.
 They are similar to Fabian entrepreneur in doggedly pursuing their conventional practices.
 They used to operate in the niche market
 Ex. Gopal tooth powder.
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CHAPTER-25
60. Explain any 5 Govt – Entrepreneurial schemes.

 STARTUP INDIA
 This scheme promotes entrepreneurship by mentoring, nurturing and facilitating startups
throughout their life cycle.
 It was launched in January 2016
 A “Fund of funds” has been created to help startups.
 MAKE IN INDIA
 This is designed to transform India into a global design and manufacturing hub.
 It was launched in September 2014
 This has in turn helped procure investments, foster innovation, develop skills, protect
intellectual property etc.
 DIGITAL INDIA
 It has been launched to modernize the Indian Economy to make all govt services available
electronically.
 It aims at transforming India into a digitally- empowered society and knowledge economy
with universal access to goods and services.
 NATIONAL SKILL DEVELOPMENT MISSION
 It was unveiled in July 2015
 It aims at building synergies across the sectors interms of skill training activities.
 It is designed to expedite decision- making across the sectors to provide skills at scale.
 ATAL INNOVATION MISSION
 This is to promote a culture of innovation and entrepreneurship,
 It serves as a platform for promotion of world – class innovation hubs, grand challenges,
startup business and other self- employment Activities.
61. Describe the steps promoting entrepreneurial venture.
 SELECTION OF THE PRODUCT
An entrepreneur may select a product according to his aspiration, capacity and motivation
after a through scrutiny of micro and macro environment of business.
 SELECTION OF FROM OF OWNERSHIP
Entrepreneur has to choose the form of organization suitable and appropriate for his
venture namely family ownership, partnership and private limited company.
 SELECTION OF SITE
Entrepreneur has to choose suitable plot for accommodating his venture; he has four
options open to him for housing his venture.
 DESIGNING CAPTIAL STRUCTURE
Entrepreneur has to determine the source of finance for funding the venture; He may
mobilize funds from his own savings loans from friends and relatives.
 PREPARATION OF PROJECT REPORT
The project report should cover aspects like sources of finance, technical know- how,
sources of labour and raw materials. Market potential and profitability.
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CHAPTER -26
COMPANIES ACT 2013
62. Write the differences between Debentures and shares.

Debentures Shares
Debentures constitutes a loan Shares are part of capital of a company
Middle and lower level Top level
Debenture holders do not have any Shareholders enjoy voting right.
voting right
It can be issued at a discount Shares cannot be issued at a discount.
Gets fixed Rate of Interest Gets dividends with a varying rate
Interest on debentures allowable as Dividend is not allowable deduction
deduction from profits
Debentures have a charge on the assets Shares do not carry any such charge
of the company
The rate of Interest is fixed Dividend varies depends upon the
profit of the company.
63. What are the various kinds of debentures’

 On the basis of convertibility
- Non convertible Debentures – These instruments retain the debt character and cannot be
converted into equity shares.
- Partly convertible Debentures – A part of these instruments are converted into equity
shares in the future.
- Fully convertible Debentures – These are fully convertible into equity share at the issuers
notice.
- Optionally convertible Debentures
 On the basis of security
- Secured Debentures – These instruments are secured by a charge on the fixes assets of the
issuer company.
- Unsecured Debentures – These instruments are unsecured in the sense that if the issuer
defaults on payments of the interest or principal amount.
 On the basis of Redeem ability
- Redeemable debentures – The debentures which are issued with a condition that the
debentures will be redeemed at a fixed rate.
- Irredeemable Debentures – A debenture in which no specific time is specified by the
companies to pay back the money is called irredeemable debentures.
 On the basis of Registration
- Registered Debentures – It refers who’s name appears on the debenture certificate and
who is registered by the company as a holder on the register of debenture holders.
- Bearer Debentures - These are issued to bearer and are negotiable instrument and so
transferable by mere delivery like share warrants.
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CHAPTER -27
COMPANY MANAGRMENT
64. Who are the KMP?

Sec 2(5) of companies Act 2013, contains the following as KMP
 The Chief executive officer
 The manager of managing Director
 The company secretary
 The whole time Director
 The chief financial officer
 Such other officer as may be prescribed.
65. Brief different types of directors.

 RESIDENTIAL DIRECTOR
Every company should appoint a director who has stayed in India for a total period of not
less than 182 days in the previous calendar years.
 INDEPENDENT DIRECTOR
An Independent Director is an alternate director other than a managing director who is
known as “Whole time director” or “Nominee Director”
 ADDITIONAL DIRECTIORS
Any Individual can be appointed as additional directors by a company.
 SHADOW DIRECTOR
A person who is not the member of board but has some power to run it can be appointed as the
director but according to his/ her wish.
 ALTERNATE DIRECTORS
Alternate directors is appointed by the board of directors as a substitute to a director who
may be absent from India, for a period which is not less than 3 months.
 SMALL SHARE HOLDERS DIRECTORS
Small shareholders can appoint a single director in listed company.
66. State the qualification of Directors.
 A director must be a person on unsound mind.
 A director must hold share qualification, if the article provides such
 A director must be an individual
 A director should be a solvent person
 A director should not be convicted by the court for any offence etc.
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CHAPTER -28
COMPANY SECRETARY
67. Briefly state different types of company meetings

STATUTORY MEETING
 Every public company should hold a meeting of the shareholders within 6 months but
not earlier than one month from the date of commencement of business of the
company.
 Meeting is conducted only once in the life time of the company.
 This is the first general meeting of the public company is called the “Statutory meeting”.
ANNUAL GENERAL MMETING
 Every year a meeting is held to transact the ordinary business of the company is called
“Annual general meeting”
 It should be held within 18 months from date of its registration.
 The difference between two annual meeting should not be more than 15 months.
 Annual general meeting should be conducted by both private and public ltd
companies.
EXTRA ORDINAREY GENERAL MEETING
 All other general meetings other than statutory and annual general meetings are
called “Extra ordinary general meeting”.
 It is conducted to deal with some urgent or special business.
BOARD MEETINGS
 Meetings of directors are called board meetings
 First meetings of directors should be convened within 30 days from the date of
incorporation of the company.
CLASS MEETING
Meetings, which are held by particular class of share of debenture holders e.g. preference
shareholders or debenture holders is known as “Class meeting”.
COMMITIEE MEETINGS
 Every listed company and every other public company having paid up share capital
of Rs.10 crore is required to have audit committee
 This committee should meet at least 4 times in a year.
68. Explain different types of open and secret types voting.

I. OPEN PROCEDURE
This type of voting has no secrecy as the members assembled can see voting. The methods are
 BY VOICE
 Voice voting means allows the members to raise their voice as “Yes” for approval and
“No” for rejection.
 It is an unscientific method.
 BY SHOW OF HANDS
 The chairman requests the members to raise their hands of those who are in favour of
the candidates and those who are against.
 The chairman counts the number of hands can announce the results on the basis of
hands counted.
II. SECRET PROCEDURE
It is a popular voting method that could maintain secrecy of the voter. The methods are.
 BY BALLOT
Under this system, ballot paper bearing serial number is given to the members to
record their opinion by marking with the symbol to cast their vote in a chamber and put the
ballot paper into the ballot box.
 POSTAL BALLOT
The members or voters fill in the ballot papers and return them in sealed covers
which are opened when the ballot box is opened for counting the votes.
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XII – COMMERCE
2 MARKS
In Board Exams, the way of
asking questions will be done on
the basis of following Analysis.
DEFINITION SHORT NOTES

 Define Marketer  Write a note on OTCEI
 Define Marketing Mix  Write a note on SEBI
 Write a Short Note on Consumer
ADVANTAGES
Protection Act 1986
 Two Advantages of MBD
 Note on “Right to be Informed”
 Two Advantages of Globalization
 Note on “Digital India”
FEATURES / CHARACTERISTICS  Note on “Proxy”
 Features of HRM
 Characteristics of Human Resource OBJECTIVES
 Characteristics of a Promissory note  Objectives of MBO
 Mention 2 characteristics of  Two Objectives of SEBI
Entrepreneurs  Supreme Objective of Business
TYPES/KINDS WHO
 List out Management tools  Who are the participants in capital
 List subsidiary functions of management market
 Components of organized sector  Who is broker?
 5 Stock Exchanges  Who is Consumer?
 Types of Speculators  Who are Agricultural Entrepreneurs?
 What are the various ID Proofs  Who is whole time director?
 Name the types of selection test  Who is called as “Managing Director”
 Branches of New Economic Policy  Who can be Executive Director?
 List down Essential Elements of contract  Who is Secretary?
of sale
 List down Managerial Function of DISADVANTAGES
Entrepreneur  Two disadvantages of Liberalization
 List down Pronountial Functions of
Entrepreneur
 List the challenges faced by Women
Entrepreneur
 Name 2 Govt. Entrenurial Schemes
XII – COMMERCE
3 MARKS
DEFINITION WHO
 Define the term Management  Who are the participants of money
 Define the term Human Resource market
Management  Who are the members of the National
Commission
ADVANTAGES/IMPORTANCE/ BENEFITS
 Importance of Staffing  Who are the member of state
 Significance of Human Resource commission
 Advantages of E-Marketing  Who is a Private Entrepreneur
 Importance of Consumerism  Who is a shadow Director?
FEATURES/CHARACTERISTICS
 Features of MBD OBJECTIVE
 Features of Treasury bills  What are the objectives of marketing
 Characteristics of Human Resource  Objectives of E-Marketing
 Characteristics of Human Resource
 Characteristics of Bill of Exchange
D/B
 Management & Administration
SHORT NOTES
 Entrepreneur & Manager
 Note on Secondary market
 Negotiability & Assignability
 Note on Trainer and Trainee
 Note on Voluntary Consumer
Organization LIMITATIONS/DISADVANTAGES
 Note on New Economic Policy  Limitations of stock Exchange
TYPES/KINDS
 Various kinds of capital Markets
 Types of Treasury bills
 Types of Commercial bill
 Types of Selection test
 Types of Market on the basis of time
 Different types of crossing
 Different kinds of preference share
FUNCTIONS/PROCESS
 List the main functions of Management
 Two functions of Capital Market
 Process of MBE
 Process of MBO
XII – COMMERSE
5 MARKS
TYPES/KINDS D/B
 Different types of financial market  New Issue Market & Secondary Market
 Types of New financial institutions  Money Market & Capital Market
 Types of test  Stock Exchange & Commodity Exchange
 Methods of Interview  Recruitment & Selection
 Types of Training  On the job & Off the job Training
 How the market can be classified  Sale & Agreement to Sell
 How the market classified on the basis of  Condition & Warranty
Economics  Cheque & Bill of Exchange
 New methods of marketing  Entrepreneur & Intrapreneur
 Classification according to types of  Shares & Debentures
business
 Kinds of Debentures FUNCTIONS
 Types of Directors  Functions of Management
 Types of Company meeting  Functions of Capital Market
 Types od open and secret types of voting  Functions of Stock Exchange
 Functions of SEBI
ADVANTAGES & DISADVANTAGES  Operative Functions of HRM
 Advantages of MBO
 Advantages of MBE FEATURES OR CHARACTERISTICS
 Disadvantages of MBE  Character of Capital market
 Advantages & Disadvantages of  Character of Money Market
Liberalization  Character of Government Security
 Features of Stock Exchange
OBJECTIVES  Character of Human Resource
 Objectives of Consumer production act  Features of Cheque
1986  Character of Entrepreneur

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PREFACE

Commerce as a stream of education can be defined as a study of trade and business

“CommerCe Changes the fate and genius of nations”

1. Management is what a _______ does?

6. Which is the primary function of management?

16. Financial market facilitates business firms

21. Capital market do not provide

31. ____ is the oldest stock exchange in the world.

41. Human resource is a -------- asset.

46. Recruitment is the process of identifying ---------------.

55. Job first man next is one of the principles of -----------.

56. Off the Job training is given

66. The initial stage of Marketing system is…………………….

71. Selling goods/ services through internet is

81. The final aim of modern marketing is ______

91. VUCA stands for ____, _____,_____,______.

101. Sale of Goods Act was passed in the year

106. Negotiable Instrument Act was passed in the year ______.

111. Which of the below is a factor of production?

116. Which of the following is the Activity of a Business Entrepreneur?

136. Mention the status of a Company Secretary in a company.

TWO MARK QUESTIONS

5. Write a shorts note about planning

9. What are the objectives of MBO?

13. What are the components of organized sectors?

17. What is capital market?

21. What is a CD market?

25. What is meant stock Exchange?

30. Write short note on SEBI

34. What is Human resources management?

38. Give the meaning of recruitment?

42. What is selection?

46. What is meant by training?

50. What is market?

55. What is marketing?

58. What is service marketing?

62. Who is a consumer?

67. Write a short notes on, Right to be informed”

70. What do you mean by Redressal Mechanism?

72. State the meaning of the term state commission

74. What is internal environment?

82. What is a contract of sale of goods?

86. What is meant by Negotiable Instrument?

89. Mention any two features on entrepreneurs

93. What is the other name of business entrepreneur?

97. Name any 2 government entrepreneurial schemes

100. What are the four stages of formation of a company?

104. Name the companies required to appoint KMP

An executive director is a chief Executive director or managing director of an organization,

1. Define the term management

Authority Middle and Lower level Top Level

5. List out the main functions of management

8. Write the features of MBO

11. Give the meaning of financial market

14. What are the various kinds of capital market? Explain

17. What are the features of Treasurery Bills?

21. What are the limitations of stock exchange?

24. What is meant by Dematerialization?

Additional / Joint Director Additional Director Technical /Joint director

91. VUCA stands for __, _,_,____.