Maharashtra HSC Board 2022
Organisation Of Commerce And Management (51)
Q.1. (A) Select the Correct option and rewrite the sentences: (5) [20]
1) Member of organisation should receive orders from __________.
a) Many superiors b) One superior c) All superiors
2) The functions of management end with __________.
a) Directing b) Staffing c) Controlling
3) Startup India is an initiative of the __________.
a) RBI b) GOI c) World Bank
4) Making timely payment of proper taxes is the responsibility of organization toward _________.
a) Shareholders b) Customers c) Government
5) In online shopping customers put the product in the _________.
a) Shopping Mall b) Shopping Cart c) Shopping Bag
Q.1. (B) Match the Pairs:
Group 'A' Group 'B'
a) Agro tourism 1) Tangible in Nature
b) Business service 2) 1930
c) Scientific management theory 3) Use of Digital Media
d) Sale of Goods Act 4) Rural tourism
e) Digital Marketing 5) Henry Fayol
6) 1956
7) Intangible in nature
8) Use of traditional media
9) Medical tourism
10) F.W. Taylor
Q.1. (C) Correct the underlined word and rewrite the following sentences:
1) Decentralisation means concentration of powers and authorities at the specific position.
Ans: Centralisation
2) Overdraft facility is available for saving bank account holder.
Ans: Current
3) In India sellers are widely dispersed and are not united.
Ans: Customers
4) KPO includes less knowledge based and specialised work.
Ans: More
5) Insurance helps to maximize the risks in the business.
Ans: Minimize
Q.1. (D) Arrange in proper order:
1) Controlling, Organizing, Planning.
Ans: Planning, Organizing, Controlling.
2) Accident, Taking the policy, Claim.
Ans: Taking the policy, Accident, Claim
3) Placing an order, Cash on Delivery, Registration.
Ans: Registration, Placing an order, Cash on Delivery
4) District Judge, Supreme Court Judge, High Court Judge.
Ans: District Judge, High Court Judge, Supreme Court Judge.
5) Grading, Marketing planning, Distribution.
Ans: Marketing planning, Grading, Distribution.
Q.2 Explain the following terms/ concepts (Any FOUR): [8]
1) Organising
Ans: Organizing is the process of identifying, bringing the required resources together such as men, money, machines and method and arranging them in proper manner to achieve the goal of an organization.
2) Insurance
Ans: Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
3) E-business
Ans: E-business or electronic business, is the administration of conducting business via the internet.This would include the buying and selling of goods or services.
4) Place concept of market
Ans: i) The term market is commonly understood as the place where transaction of buying and selling of goods and services takes place in exchange of money or money's
ii) It is the place where buyers, sellers and other intermediaries come together and exchange goods or services.
iii) In olden days, place played an important role in defining market. But in the age of information technology the term 'Market' has wider meaning than just a place.
5) Lok Adalat
Ans: Lok Adalat can also referred to as 'People's Court'. It is established by the government to settle disputes by compromise. It is the effective and economical system for quick redressal of the public grievances. In Lok adalat, issues are discussed on the spot and decisions are taken immediately.
6) Outsourcing
Ans: Outstanding is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company make a formal agreement with the agency.
Q.3. Study the following case/ situation and express your opinion (Any TWO): [6]
1) In ABC company, Mr. Patil gives instructions to the employees working under him, provides guidance and motives them for their best performance. On the other hand Mr. Joshi takes effort to harmonize work done by the employees of different departments while achieving organisational goal. Mr. Dubai is looking after the arrangement of required resources to the business organisation.
Mention the name of employee engaged in the following functions:
a) Organisation
b) Directing
c) Co-ordinating.
2) Mr. Rajaram is young M.Sc (Agri) degree holder, Mr. Sitaram is commerce graduate, Mr. Rajaram is willing to start Agritourism centre at his village. Mr. Sitaram is willing to work as accountant in private company.
1) Find out desire of Mr. Sitaram.
2) What is the desire of Mr. Sitaram?
3) Which qualification is acquired by Mr. Sitaram?
3) Ajay purchases some electronic appliances online from www.amazon.com. At the same time Sanjay purchased old bike from olx.com.
a) Which website is related to C2C?
b) Which website is related to B2C?
c) What first step does Ajay need to follow?
Q.4 Distinguish between (Any THREE): [12]
1) Planning and Controlling
|
|
Planning |
Controlling |
|
1 Meaning |
Planning is
deciding in advance what to do how to do it, when to do it and who is to do it. |
Controlling
is the process of taking steps to bring actual results and desired results
closer together. |
|
2. Objective |
To set goals
and choosing the means to achieve these goals. |
To ensure
that the objectives are achieved according to the plan. |
|
3. Area of Function
|
It includes
setting objectives by identifying the ways of attaining the goal and
selecting the best plan |
It includes
setting up of standards, measurement, and comparison with actual performance
and taking corrective steps whenever necessary |
|
4. Factor |
Internal
and external factors are considered in planning process. |
Internal and
external factors are taken into account for taking corrective action. |
|
5. Order |
It is the
basic first function of management process |
It is an end
function of management process. |
|
6. Resources |
Planning is
done as per the requirement and availability of resources. |
It is related
to all organizational resources which help to achieve goal of organization. |
|
7. Nature |
It is
continuous in nature. It exists in the whole life of origination. |
It is the
process which starts once the actual plan is executed |
|
8. Level of
Management |
Top
management is concerned with planning the activities. |
Top and
middle level management are responsible for controlling the activities. |
2) Life Insurance and Fire Insurance
|
|
Life Insurance |
Fire Insurance |
|
1. Meaning |
A contract
where by the insurance company undertakes to pay a certain sum of money
either on death or maturity (whichever is earlier) for a consideration
(premium) |
A contract
in which insurer promises to pay compensation to insured if something happens
to the subject matter due to fire or related events. |
|
2. Policy Taken By |
It can be
taken by an individual for his own life or for his family members. |
It can be
taken by individual for their properties or by businessman. For their goods,
properties business liabilities |
|
3. Subject
matter |
In life
insurance, the life of the insured is a subject matter |
In Fire
insurance, the goods and assets or property of the insured is the subject
matter |
|
4. Tenure |
The policy
can be issued for any number of years, even until the death of the assured. |
It is
generally for a short period like one year. |
|
5. Compensation |
It is paid
either on death or maturity whichever is earlier. |
It is
paid only if there is loss causing event during the term of the policy |
|
6. Principle of
Indemnity |
It is not
applicable as a human life cannot be valued in terms of money for calculating
the actual loss. |
It is
applicable as insurance company compensates for the financial loss and the
insured is brought back to the same fi[1]nancial
condition that he was before the event. |
|
7. Number of
Policies |
Insured can
take any number of policies on the same life.\ Compensation is paid on all
hte policies. |
Generally,
only one policy can be taken but double insurance is possible. However,
compen[1]sation
does not exceed the ac[1]tual
loss. |
|
8. Beneficiary |
The
beneficiary can be insured (if he survives the selected term) or else the
nomine or the legal heir on the death of the assured |
The
beneficiary is the insured who has insured the property or goods. |
3) District Commission and National Commission
|
Points of
Distinction |
District Commission |
National Commission |
|
1.Meaning |
A consumer
dispute redressal forum at the district level established by the State
Government is known as District Commission. |
A consumer
dispute redressal forum at the National level established by the Central
Government by notification is known as National Commission |
|
2. President |
A person who
is sitting or retired or qualified to be District Judge. |
A person who
is or has been a judge of the Supreme Court, shall be appointed by the
Central Govern[1]ment
by notification is known as National Commission. |
|
3. Member |
Not less than
two and not more than such number of members as may be prescribed, in
consultation with the Central Government |
Not less
than four and not more than such number of members as may be prescribed. |
|
4.Membership
Tenure |
The
members can have the membership for a term of five years or upto the age
sixty five years, whichever is earlier. |
The
members can have the membership for a term of five years or up to the age
sixty seven years and president upto sev[1]enty
years, whichev[1]er
is earlier |
|
5. Area Covered |
It covers
particular district |
It covers the
entire country |
|
6. Monetary
Jurisdiction |
o entertain
com[1]plaints
where the value of the goods or services paid as consideration does not
exceed Rs. one crore. |
To entertain
com[1]plaints
where the value of the goods or services paid as con[1]sideration
exceeds Rs. ten crore. |
|
7. Appeal |
Appeal
against the District Commission can be made to the State Commission. |
Appeal
against the National Commis[1]sion
can be made to the Supreme Court |
4) Staffing and Directing
|
|
Staffing |
Directing |
|
1 Meaning |
The staffing
function pertains to the recruitment, selection, development, training and
compensation of subordinate managers. |
Directing is
the guidance inspiration, the leadership of those men and women constitute
the real case responsibilities of management. |
|
2. Objective |
To appoint
right type of people at the right posi[1]tions
and the right time. |
To
appoint right type of people at the right posi[1]tions
and the right time. |
|
3. Area of Function
|
It includes
recruitment, selection, training, development and com[1]pensation
of human resources. |
It includes
instructing, guiding, inspiring, communicating and motivating the human
resources |
|
4. Factor |
Staffing
is mostly concerned with internal factors. |
Directing is
concerned directly with internal factors i.e. human resources |
|
5. Order |
It follows
organizing function. |
It follows
organising and staffing for execution of planning. |
|
6. Resources |
It is the
process relating to organization of human resources. |
It gives
direction to the employees regarding use of other resources. |
|
7. Nature |
It is a
continuous process as it deals with employees i.e. human resources. |
Tt gives
direction to the employees regarding use of other resources. |
|
8. Level of
Management |
Middle level
management is related with recruitment, training and selection Top level is
concerned with promotion and compensation |
Middle level
management is involved in directing the employees. |
Q.5. Answer in brief (Any TWO): [8]
1) Explain 4p's of product marketing mix.
Ans: The 4P's of marketing mix were introduced by E. Jerome McCarthy in 1960. It
was further extended by Booms & Bitner in 1981 by adding 3 new elements to the 4 Ps Principle.
The four Ps are the key factors that are involved in the marketing of goods or services.
They are the product, price, place, and promotion.
1) Product:
Product refers to the goods or services that are offered to the customers for sale and are capable
of satisfying the need of the customer. The product can be intangible or tangible, as it can be
in the form of services or goods. The business need to decide the right type of product through
extensive market research. Success of the business depends on the impact of the product in the
minds of the customer.
2) Price:
The price of the product is basically the amount that a customer pays for the product. Price
plays an important role in creating demand for the product. The business needs to take utmost
care to decide the price of the product. Cost of the product and willingness of the customer to
pay for the product play an important role in pricing the product. Too high price may affect the
demand for the product and pricing too low may affect the profitability of the business. While
deciding the prices, the value and utility of the product to its customers are to be considered.
3) Place:
Place is also known as distribution channel. Placement or distribution is a very important part
of the marketing. Making a right product at the right price is not enough. Businessman needs
to make the product available to potential customer at the right place too. Business needs to
distribute the product in a place that is accessible to potential buyers. It covers location, distribution and ways of delivering the product to the customer. Better the chain of distribution
higher the coverage of the product in the market.
4) Promotion:
Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication which helps to publicize the product to the customer. It helps to convey product features to the potential buyer and inducing them to buy it.
Promotion mix includes tools such as advertising, direct marketing, sales promotion, personal
selling, etc. Combination of promotional strategies depend on budget, the message business
wants to communicate and the target market.
5) Pricing of Product:
Pricing is one of the most important as well as challenging function of the marketing. Many
times price of the product decides the success or failure of the product. Pricing plays an important role in the market where there is cut throat competition. While determining the price of the
product businessman needs to consider factors like cost, desired profit, price of the competitor's product, demand for the product, market condition etc.
6) Promotional Channels
Promotion is the process of informing the consumers about the products, their features, uses,
prices etc and encouraging them to buy these products. Advertising, Personal selling, Publicity
and Sales Promotion are some of the important tools of promotion. Business uses combination
of all or some of these four methods for promotion as per the need of the business. Promotional
activities help to increase brand awareness in the market.
2) Explain any four responsibilities of business towards employees.
Ans:
Responsibilities Towards Employees:
Employees are human resource to the organisation. They must be treated with dignity and respect. The management and employees should develop mutual understanding and trust. Government
has passed various labour laws to safeguard the interest of employees.
Business has following responsibility towards employees.
1) Job security:
Security of job provides mental peace and employees can work with full dedication and
concentration. Commitment with the work will raise their morale and loyalty towards the
organisation.
2) Fair Remuneration:
The business should pay attractive salaries to all their employees. Other incentives like bonus,
overtime allowance etc. should be given to them. Remuneration should be fixed according to
the nature of work. Suitable wage plans providing increments and revision of wages is also
essential.
3) Health and safety Measures:
Business should protect health and hygiene of employees. Canteen facilities, medical facilities
and proper sanitation must be provided to the workers. Proper maintenance of machines and premises
must be done to prevent accidents and to control pollution. Safety equipment like hand gloves, safety
shoes, helmets, goggle, masks etc. should be provided to concerned employees.
4) Good Working Condition:
The employees should be provided with good working conditions such as adequate lighting,
ventilation, drinking water etc. Necessary steps should be taken to avoid air, water and sound
pollution. There should be proper working hours with lunch breaks and rest pauses etc.
5) Recognition of Trade Unions:
It is the responsibility of business organisation to maintain industrial peace. Employer must
recognize the workers' right to join trade union. Employer should not restrict employees from
forming trade union. 'Divide and Rule' policy should not be followed. Management should sort
out various problems of workers by holding talks or negotiations with such unions. Management and union should agree to ban strikes and lockouts to protect interest of both the parties.
6) Education and Training:
Organisation should make every possible attempt to educate employees. Guidance and methods of training depend on the nature of job. 'Introduction Training', 'Refresher Training' is
conducted to keep employees updated on the latest development. Training makes employees
confident and also it increases their efficiency.
7) Workers Participation in Management:
The workers must be encouraged to take part in management by forming workers committee.
Suggestion schemes, profit sharing can be encouraged by management. It will raise their morale and give them a sense of belonging.
8) Promotion and Career Opportunities: Business should offer adequate opportunities of promotion to their talented employees. They
should give proper information about qualifications, skills and experience required to obtain
promotion. It will increase awareness among employees and they will also be motivated to
take efforts.
9) Proper Grievance Procedure:
There should be proper grievance procedure to handle employees' complaints. All queries
should be sorted quickly. The employees must feel satisfied. Investigations and necessary
actions should be taken to settle their grievances.
10) Miscellaneous
a. Fair treatment to all employees.
b. To recognize, appreciate and encourage special skills of employees.
c. To introduce code of conduct.
d. To provide opportunity for meaningful work and to recognize goals.
e. To protect religious, social, political rights of employees.
f. Allowing formation of informal groups.
3) State any four rights of consumers.
Ans:
Q.6 Justify the following statements (Any TWO) : [8]
1) Principles of management are flexible in nature.
Ans:
Management principles are flexible in nature. It means they can be changed or modified
according to the situation. Managers can be flexible while implementing principles to suit
the requirement. The business situations keep on changing. Management principles can be
adjusted or modified and can be used in the organisation according to its need.
2) There are many ways and means to consumer protection.
Ans:
We have enumerated several instances of exploitation and malpractices on the part of
manufacturers, traders, dealers and services provider. Now the question arises as to how can these be
eliminated? The prevailing judiciary system is not sufficient enough to protect consumers, therefore,
there are various ways and means of consumer protection.
They are as follows.
1) Lok Adalat:
Lok adalat is the effective and economical system for quick redressal of the public grievances.
It can also be referred to as 'People's Court'. It is established by the government to settle disputes by compromise.
The aggrieved party can directly approach the adalat with grievance, and issues are discussed
on the spot and decisions are taken immediately. Resolution of disputes by Lok Adalat gets
statutory recognition. e.g. MSEDCL, MSRTC, Railway authority, Insurance Companies,
Banks etc. organize regular Lok Adalat.
2) Public Interest Litigation (Janahit Yachika)
Public Interest Litigation means a legal action initiated in a court of law regarding a matter of
general public interest. It is a legal facility under which any person can approach to the court
of law in the interest of the society. Its aim is to provide legal remedy to unrepresented groups
of society. The party which is not related to grievance can also file public interest litigation. It
is filed in the High Court as well as Supreme Court directly in some cases.
3) Redressal Forums:
Under the Consumer Protection Act, 2019, a system has been set up to deal with the consumer
grievances and disputes at district, state and national level. Any individual consumer or association of consumers can file a complaint with respective commission depending on the value
of goods and claim for compensation. The main aim of these commissions is to provide for
simple, speedy and inexpensive redressal of consumer's grievances.
As per the Act, Consumer Protection Councils at district, state and national level can be set up
for promotion and protection of rights of consumers.
4) Awareness Programme:
To increase the level of awareness among the consumers the Government of India has initiated
various publicity measures. State and Central Government regularly publishes journals, brochures, booklets and various posters depicting the rights and responsibilities of consumers, redressal machineries etc. Several audio-video programmes on consumer awareness are broadcasted on various channels and through social media. 15th March is observed as 'International
Consumer Rights Day' and 24th December is observed as 'National Consumer Day'.
5) Consumer Organizations:
Consumer Organizations have been active in India to promote and protect consumer interests.
Consumer movement is well settled in India and helping individuals to seek quick and adequate
redressal of their grievances. It is necessary to strengthen consumer movement throughout the
country.
6) Consumer Welfare Fund (CWF):
Department of Consumer Affairs has created consumer Welfare Fund for providing financial
assistance to strengthen the voluntary consumer movement particularly in rural area. This
fund is used for training and research in consumer education, complaint handling, counselling
and guidance mechanisms, product testing labs and so on.
7) Legislative Measures:
A number of laws have been enacted in India to safeguard the interest of consumers and
protect them from unethical practices of businessman.
Some of these laws are as follows:
● Sale of Goods Act, 1930
● Essential Commodities Act, 1955
● Standard of Weights and Measures Act, 1956
● Bureau of Indian Standards Act, 1969
● Food Safety and Standards Act, 2006
● National Food Security Act, 2013
3) Principle of subrogation is application to all contracts of indemnity.
Ans:
This principle is applicable to all contracts of indemnity. As per this principle, after the insured
is compensated for the loss due to damage of the property insured, then the right of ownership
of such property passes on to the insurer. This principle is applicable only when the damaged
property has any value after the event causing the damage.
For example, Mr. A owns a two-wheeler . The vehicle was stolen and subsequently Mr.A filed
a complaint in local police station. Upon receiving report from police,. the insurance company
compensated fully Mr.A for the loss of the vehicle. Later on the stolen vehicle was recovered by
police. In this situation, the owner of the vehicle does not have any claim over the vehicle as he has
already subrogated i.e. transferred the ownership rights of the vehicle to the insurer. The insurer gets
every right to sell or to scrap the said vehicle.
4) Marketing is significant to the consumers.
Ans:
Importance of Marketing to the Consumers
1) Promotes Product Awareness:
Through different marketing activities companies promote their products and services. This
helps consumers to know about different products and services available in the market. It
helps the consumer in making buying decision. It also creates awareness among the consumers
about different brands and features of the product available in the market. Consumer can compare product features, price, availability and other essentials because of marketing. Marketing
helps to improve the quality of life of the consumer.
2) Provides Quality Products
There is increasing competition in the market. Consumers are getting easy access to the information about the products and services available in the market. It creates moral pressure on
the businesses to provide quality goods to the consumers. Supplying defective products may
create negative image of the business which affects the consumer's loyalty.
3) Provides Variety of Products
Marketing creates awareness among the consumers about the product. At the same time,
it attracts the consumers to buy the same. With the customer population and preferences becoming wider, and the competitive options becoming more available, market segmentation
has become critical in any business or marketing plan. In fact, business launch products
keeping the market segmentation in mind. Businessman needs to provide variety of goods
to cater to the needs of the different market segments of the consumers. Variety may change
according to the price, size and quality of the product.
4) Helps in Selection
Variety of products with different brands are available in the competitive markets. Marketing helps the consumer to choose the best products and services from the different options
available.
5) Consumer Satisfaction
The first and foremost objective of any sound marketing policy is to satisfy the consumers by
assurance of good quality product. When an offering meets the customer's expectations, the
customer is satisfied. Marketing leads to consumer satisfaction through honest advertising,
assurance of quality products and availability of innovative products. Thus, marketing takes
every effort to satisfy the consumer.
6) Regular supply of goods:
Through efficient distribution channel of marketing regular supply of goods is possible. It helps
to maintain the balance between demand and supply. It results into stable prices.
Q.7. Attempt the following (Any TWO): [10]
1) Explain any five principles of management given by Henry Fayol.
Ans:
Meaning:-
"Principle is defined as a fundamental truth or proposition that serves as the foundation for a
system of belief or behaviour or for a chain of reasoning."
Five principles are summarized as follows:
1) Principle of Division of Work:
According to this principle, the work is divided into different kinds such as technical, financial,
commercial, security operations, accounting and managerial. It is assigned to employees as
per their qualities and capabilities. It helps in improving efficiency and expertise of employees
which ultimately turns into expected productivity level.
2) Principle of Authority and Responsibility:
Authority is the right to take decisions. It is necessary to get the things done appropriately
from subordinates. Authority always comes with the responsibility. If the manager is given the
authority to complete a task within a given time, he should be held responsible if he does not
complete the work in given time. Manager should have proper authorities to take managerial
decision on his own in respect to the goal.
3) Principle of Discipline:
According to Fayol, discipline is the most essential thing in the organisation. Employees must
obey and respect the rules that govern the organisation. Discipline helps to achieve the goals
in the organisation. Good discipline is the result of effective leadership. There must be a clear
understanding between the management and workers regarding the organisation's rules. Basic
discipline should be observed at all levels of management.
4) Principle of Unity of Direction:
This principle states that 'there should be one head and one plan' in every organization. Each
group in the organization should have the same objective and the group should be directed by
one manager using single plan.
5) Principle of Subordination of Individual Interest to Organisational Interest:
According to this principle the interest of an individual must be given less importance than
the interest of the organisation. While taking decision in the organisation the manager should
always consider the interest of the whole group rather than the interest of a single employee.
Similarly the employee should protect the interest of the organisation first and his personal
interest should be subordinated. For example, in every game, the players are always thinking
about winning the match as a team rather than their individual records.
6) Principle of Centralization:
Centralization refers to the concentration of powers and authorities. In some organisations this
power is vested in one hand or few hands. This situation occurs in the small organisations. But,
if the size of organisation is large then there is a decentralization of the power or authority.
7) Principle of Remuneration:
Appropriate remuneration to staff or employees is the principle to keep them satisfied financially
as well as retain them for long span of time within the organization. The fair remuneration
affects on the productivity and efficiency level in total. The remuneration should be fixed by
taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend,
profitability of organization etc.
2) Explain any five social responsibilities of a business organisation towards the government.
Ans:
Responsibilities Towards Government:
The government regulates and controls the business with the objectives of systematic economic
development of the country and safeguarding the interests of the common man. Government provides
incentives and subsidies to business.
Following are the responsibilities of organization towards
government.
1) Timely Payment of Taxes:
The government imposes various types of taxes like sales tax, income tax, wealth tax etc. Business units should pay these taxes from time to time. It would be difficult for the government to
undertake development projects without availability of funds.
2) Observing rules and regulations:
The rules framed by the government for business should be fully complied with. The business
should follow the laws regarding obtaining license for a specified business, the operation of
the business, price determination and production etc. They should conduct business in lawful
manner.
3) Earning Foreign Exchange:
The government also expects from business organization that it will earn foreign exchange by
exporting goods. The government requires this foreign exchange for importing various goods.
valuable and important products.
4) Economic Development:
The government sets the targets for balanced and rapid economic development of the country.
The business organization should provide necessary cooperation to the government.
5) Implementing Socio Economic Policies:
The government expects cooperation and help from the business sector in implementing socio-economic programmes and policies.
6) Suggestions to the Government:
The business organisation can provide suggestions to the government before framing impor-
121
tant policies such as Industrial Policy, Import Export Policy, Licensing Policy etc. Such suggestions are helpful for framing organisation-friendly policies.
7) No favours:
The commercial organization should not take any favour from the government officials by
bribing or influencing them.
8) Contributing to Government Treasury:
The Commercial organization must contribute the funds to government during the emergencies
and natural calamities like floods, earthquakes etc.
3) Explain types of warehouses.
Ans:
Types:
1) Private Warehouses:
The private warehouses are owned and operated by big manufacturers and merchants to fulfill
their own storage needs. Big business firms which need large storage capacity on a regular
basis and who can afford money, construct and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the
country.
2) Public Warehouses:
A public warehouse is a specialised business establishment that provides storage facilities
to the general public for a certain charge. It may be owned and operated by an individual or
a cooperative society. It works under a license from the government in accordance with the
prescribed rules and regulations. Public warehouses provide storage facilities to small manufacturers and traders at low cost. These warehouses are well constructed and guarded round
the clock to ensure safe custody of goods. Public warehouses are generally located near the
junctions of railways, highways and waterways.
3) Bonded Warehouses:
Bonded warehouses are licensed by the government to accept imported goods for storage until
the payment of custom duty. These warehouses work under the control of custom authorities.
The warehouse keeper is required to give an undertaking or 'Bond' that it will not allow the
goods to be removed without the consent of the custom authorities. The goods are held in
bond and cannot be withdrawn without paying the custom duty. If an importer is unable or
unwilling to pay customs duty immediately after the arrival of goods he can store the goods in
a bonded warehouse. He can withdraw the goods in installments by paying the customs duty
proportionately.
4) Duty paid Warehouses:
If an importer faces any problem in transportation of goods, after making payment of duty,
then goods can be stored at a duty paid warehouse. All duty paid warehouses are public
warehouses which are available to all importers. Duty paid warehouses help the importer as
proper care of goods is taken, processing of goods can be done like sorting, re-packing etc.
Such warehouses are more useful for re-export of the goods. These are located near port &
dock area.
5) Government Warehouses:
These warehouses are owned, managed and controlled by central and state governments or
public authorities. It is difficult for small farmers, businessmen, traders to own a warehouse,
so these government warehouses assist them in storing their goods at nominal charge. Central
Warehousing Corporation of India (CWC), State Warehousing Corporation (SWC) and Food
Corporation of India (FCI) are having warehouses across different states and country.
6) Co-operative Warehouses:
These warehouses are owned, managed and controlled by co-operative societies. They mainly
provide warehousing facilities at most economical rates. These type of warehouses are very
useful for farmers and traders and general public.
7) Cold storage Warehouses:
Cold storage warehouses provide facilities for perishable commodities like fruits, flowers,
vegetables, dairy products etc. In cold storage warehouses, goods are stored and refrigerated
at very low temperatures so as to preserve them and use them in future. International trade has
become possible due to these warehouses.
Q.8 Answer the following (Any ONE): [8]
1) Define Bank. Explain different types of banks.
Ans:
Meaning: As per The Indian Banking Regulation Act, 1949 banking company means "any company
which transacts the business of banking in India" and the word banking has been defined as "accepting
for the purpose of lending or investment of deposits of money from public, repayable on demand or
otherwise, and withdrawable by cheque, draft and order or otherwise. "
1) Central Bank :
The central bank is the apex financial institution in banking industry in the country. Every
country has their own central bank. In India, The Reserve Bank of India (RBI) is the central
bank. The RBI was established in 1935 under the Reserve Bank of India Act, 1934.
Some
functions of RBI are as follows:
i) Frames monetary policy
ii) Issues currency notes
iii) Acts as a banker to the Government
iv) Acts as a banker's bank to commercial and other banks in India.
2) Commercial Bank:
The commercial banks play an important role in economic and social development of a country.
Commercial banks perform important functions such as:
Primary Functions i.e. accepting of deposits and lending of money and Secondary Functions
i.e. agency functions and utility functions.
In India, commercial banks are divided into three
groups:
a) Public sector banks where majority of capital is held by government such as Bank of India,
State Bank of India etc.
b) Private sector banks are owned by group of individuals such as AXIS bank, HDFC bank etc.
c) Foreign banks are those banks which are established outside India but these banks have
branches in India such as Citi bank, HSBC, Standard Chartered etc.
List down public, private and foreign banks in your area.
3) Co-operative Bank:
In India, co-operative banks are registered under Indian Co-operatives Societies Act and
regulated under Banking regulation Act. Co-operative banks are popular in semi-urban and
rural areas. The main aim of co-operative bank is to provide credit to economically backward
people, farmers and small scale units.
Generally, the co-operative bank works at three different
levels:
a) Primary Credit Societies:
Primary Credit Co-operative society's work at village level. They collect deposits from members and common public. They also get funds from the State Co-operative Bank and District
Co-operative Banks for the purpose of lending.
b) District Central Co-operative Bank:
These banks operate at district level. They obtain deposits from the public at the district level
and also get funds from the State Co-operative Bank for the purpose of lending.
c) State Co-operative Bank:
This bank operates at state level. They provide funds to central co-operative bank and primary
credit societies as required. State co-operative bank also performs function of monitoring over
district bank and credit cooperative societies.
4) Industrial Development Banks:
These are financial institutions that provide medium and long term funds to the business
firms Examples of development bank are Industrial Finance Corporation of India (IFCI),
State Finance Corporation (SFC), Maharashtra State Finance Corporation(MSFC) etc.
Some
functions of development bank are as follows:
i) Provision of medium and long term funds to business units for the purpose of expansion and
modernisation.
ii) Underwriting of shares issued by public limited companies.
iii) Purchase of debentures and bonds.
5) Exchange Banks:
The exchange banks as well as large commercial banks facilitates foreign exchange transactions. Examples of exchange banks are Barclays Bank, Bank of Tokyo etc.
Some functions of
exchange bank are as follows:
i) Financing foreign trade transactions.
ii) Issue of letter of credit (LC)
iii) Discounting of bills of exchange.
iv) Remittances of dividend, interests and profits etc.
6) Regional Rural Bank:
Regional Rural Banks (RRBs) were established in 1975. These banks are sponsored by
large public sector banks. The capital of RRB is contributed by Central Government 50%, State
Government 15% and Sponsored Banks 35%.
RRBs mobilise deposits primarily from rural and semi-urban areas and provide loans and
advances mostly to small and marginal farmers, agricultural laborers and rural artisans.
7) Savings Bank:
The main objective of savings bank is to encourage savings of the people, especially in rural
areas. Examples of such banks include postal saving bank, commercial banks and cooperatives banks.
8) Investment Bank:
These banks provide financial and advisory assistance to their customers. Their clients generally include business firms and government organisations. Investment banks facilitate mergers
and acquisitions by undertaking research and providing advice on investment decisions. Generally, investment banks do not directly deal with general public.
9) Specialised Banks:
These banks cater to the requirements and provide overall support for setting up business in
specific areas.
i) Export and Import Bank (EXIM):
This bank provides financial assistance to exporters and importers and functions as the principal financial institution for coordinating the working of institutions engaged in financing
export and import of goods and services with a view to promoting the country's international
trade.
ii) Small Industries Development Bank of India (SIDBI):
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act
of Indian Parliament, acts as the principal financial institution for promotion,
financing and development of the Micro, Small and Medium Enterprise (MSME) sector as
well as for co-ordination of functions of institutions engaged in similar activities.
iii) National Bank for Agriculture and Rural Development (NABARD): It is an apex institution for financing agricultural and rural sector. NABARD provides both
short term and long term credit through regional rural banks. It is concerned with policy planning
and operations relating to agricultural credit and credit for other activities in rural India. It provides
finance to financial institutions and not to the individuals.
2) Explain the functions of marketing in detail.
Ans: Success of business is difficult without effective marketing. Marketing deals with exchange of
goods and services to satisfy needs of consumers. Marketing functions help to study the needs of the
consumers and facilitate to satisfy it. Following are some of the important functions of marketing :
1) Marketing Research:
Effective marketing is possible when business takes initiative to identify the needs and wants
of the consumers in the market. To identify the needs of the consumers, there is a need to
collect information from the consumers and analyse the same is known as Market Research.
Analysis of the information helps in the assessment of the need in the market. It helps to find
out what do consumers want to buy, when do consumers buy, in what quantity they want to
buy and at what price. Marketing Research helps to take various decisions regarding successful marketing of products
2) Buying and Assembling:
It involves collecting raw material from different sources at one place for production. This
function is important as quality and price of raw material determine cost and quality of the
final product.
3) Market Planning:
After assessing the need of the marketing, business needs to chalk out the marketing plan and
strategies to achieve the desired objective. Market planning is the process of organizing and
defining the marketing objectives of the business and creating strategies to achieve them. It
is the comprehensive blueprint that will help to draw outline of business's overall marketing
efforts.
4) Product Development; Product development and design play an important role in the selling of the product. There is
a need to develop the product that suits the needs of the consumer. Product design includes
decision related to quality, standards, shape, design, packing, colour etc. of the product. Consumer always prefer better and attractively designed product. Good design of the product gives
competitive advantage to the business. Product development is continuous process as the requirements of the customer change from time to time.
5) Standardisation and Grading:
Standardisation means to determine standards related to process, size, quality, design, weight,
colour etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps
in achieving customers' loyalty towards the product.
Grading is the process of classification of products according to similar characteristics and/or
quality. Grading is done on the basis of their features like size, shape quality etc. Generally
grading is done in case of agricultural products like wheat, rice, potatoes etc.
6) Packaging and Labelling: Package and Label creates the first impression on the consumer about the product. Attractive
package and label can help to make product successful. Packaging means designing the
package for the product. It helps to avoiding breakage, damage and destruction of the product.
Packing material includes bottles, container, plastic bags, tin, wooden boxes, jute bags, bubble
bags, packing foam etc.
Label is a slip which is found on the product and provides all the information regarding the
product and its producer. The slip on which all this information is provided is called as label
and its process is called as labeling. Packaging and labelling not only provide protection to the
product but also act as an effective tool of marketing.
7) Branding :
Every businessman wants to have special identity in the market for his product. Branding is
a process of giving special identity to a product through unique brand name to differentiate it from
competitor's products. In simple words giving of distinct name to one's product is called as branding.
Registered brands are known as Trademarks.
Trademarks can not be copied. Branding helps to get recognition among the consumers. It can
help to get new business and increase brand awareness in the market.
8) Customer Support Service:
Customer is the king of the market hence business needs to take necessary steps for the satisfaction of the customer. Business needs to take every possible effort to provide support services to the customer. Timely support services help to gain customer's loyalty.
The business can provide the support services like Pre-sales service, consumer helpline, after
sales service, technical assistance, product demo.
___________________________________________________________________________________
FYJC Commerce - Maharashtra State Board Textbook Solutions
HSC Commerce 12th Board Exam- Maharashtra State Board Textbook Solutions
Chapter 1 - Partnership Final Accounts
Chapter 2 - Not for Profit Concerns
Chapter 4 - Retirement of Partner
Chapter 5 - Death of Partner
Chapter 6 - Dissolution of Partner
Chapter 7 Bill of Exchanges
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