Class 11

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Tamilnadu Samacheer Kalvi 11th English Notice Writing

Notice
A notice is a written or printed news, announcement or information. A notice may contain news/information about something that has happened or is likely to happen. It may be a formal announcement of public importance or an advance warning meant for compliance and information. A notice can be about a meeting, an event, an excursion/a historical trip/a picnic, lost and found, change of name/address/uniform/timings/venue, etc.

Purpose
Notices are effective means of disseminating information related to different issues or occasions. They reach to a large number of persons in a short time. Hence, a notice is written in simple and formal language. It is clear, brief and to the point.

Display
(a) School/College Notice Boards
(b) Newspapers/Magazines
(c) Public Notice Boards

Main Characteristics
(a) Format: It includes the word ‘notice’, date, heading, writer’s name and designation.
(b) Content: It must answer the questions What? When? Where? How? etc.
(c) Expression: It relates to the overall organisation and relevance of the content as well as grammatical accuracy and fluency.

Remember:

• It must contain complete information.
• The order of the presentation should be clear.
• State the purpose of notice clearly.
• Content should include all necessary information, e.g., for a meeting- the time, venue, date, and agenda.
• Use impersonal language, i.e., third person. Avoid ‘I’ and ‘You’,
• Give the designation of the writer just below the signature.
• The date of writing notice is generally at the top.

Solved Questions
(a) You are the president of the Cultural Society of your school. You are planning to organize a cultural program: Write a notice for the school notice-board inviting names of students willing to participate. You are Sudhir, the secretary of the society.
Answer:

Cultural Society St. Patrick School, Coimbatore 9 Aug. 20XX Notice Opportunity For Budding Artists Talented students are invited to submit their names for a musical evening to be held on 21st August 20XX in the school open-air theatre from 6 p.m. onwards: Items : (i) Light vocal music (solo) (ii) Group Song (iii) Group Dance (iv) Classical Dance (Solo) Contact the undersigned before 16th Aug. 20XX Sudhir Secretary Cultural Society

(b) The 10th International Book Fair is being held at YMCA Ground between 7 Feb. to 14 Feb 20XX. As Secretary of Literary Association, write a notice informing students about it.
Answer:

1 Feb. 20XX Notice The 10th International Book Fair is being organised as per details given below: Venue : YMCA Ground, Chennai Dates : 7 Feb. – 14 Feb. 20XX Time : 11a.m.-7 p.m. Entry fee : Free for students, conducted tours All students are requested to visit. Contact the undersigned for class-wise programme. Shashi/Sachin Secretary Literary Association

(c) You are Hari/Dipti, School Captain. The Principal has permitted you to organise a class picnic to Mahabalipuram under the supervision of your class teachers. Write a notice for the school notice-board inviting the names of those who would like to join the picnic.
Answer:

6 Aug. 2OXX Notice Picnic At Mahabalipuram A Picnic at Mahabalipuram is being organised on Sunday, the 14th August 2OXX for class XII. Departure : 8 a.m. (School bus) ArrivaI : 6 p.m. Fees : Rs 50 per head Attraction : Fun Games/Boating/Crafts Exhibition Guidance : Mr. J.P. Thilagan & Ms. S. Pushpa, class teachers Those interested may give their names to the undersigned by 11th August 2OXX Hari/Dipti School Captain

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Tamilnadu Samacheer Kalvi 11th English Speech Writing

(i) You are Arun/Akila. You have to deliver a speech on the topic ‘Education Gives One Power’. You have jotted down the following notes:

Education trains mind—sharpens skill and abilities—Education: a source of power— improve self—be independent—earn money—ignorance to knowledge—removes superstition—develops a free spirit—important for women: gives them freedom from social ills—independent—responsible.
Write your speech in 150-200 words.
Answer:

Education Gives Power

Respected Principal, teachers and friends!

Education provides us knowledge. It trains our mind and sharpens our skills and abilities. Education refines our tastes and temperaments and builds our thought process. Vocational courses help young boys to earn and learn together. They provide means of earning livelihood and open the route to employment. Professional courses, as is evident from the name itself, equip us for adopting various professions. Some of these highly skilled professionals seek placements or jobs in esteemed companies and business concerns. Thus education is important for our survival. Decent living is impossible without good income or high salary.

Education improves the quality of our life and frees us of superstition, foolish, meaningless mind-blocks and rituals. If women are educated the whole family benefits as the food is hygienically prepared, children are healthy, well-mannered and disciplined. Education gives us power over our environment. We can control the situation and shape our destiny. Education spreads awareness among people and gives them freedom from social ills. It makes people independent by providing them means to earn their living. They become responsible citizens and realise their rights and duties. In short, education gives one power.

Thank you.

(ii) Shweta has to deliver a speech in the morning assembly on the topic: ‘The Generation Gap is Destroying Family Life’.
Write her speech in about 150-200 words.
Answer:
The Generation Gap Is Destroying Family Life

Respected Chairman, honorable judges, members of the staff and my dear friends!

I stand before you to speak my mind on ‘The Generation Gap is Destroying Family Life’. There are many points to support this contention.

The generation gap has caused a chasm between the old and the young. There is a clash of ideas and ideals, tastes, way of thinking and life-style. The young hanker after luxury, comfort and material happiness. They believe in full enjoyment and complete freedom. The elders insist on moral and spiritual values. They advocate renunciation and control on desires. The children think that their parents are slave to customs.

The generation gap is evident in the behaviour and manners of the two classes. The elders believe in strict obedience to a superior authority. They want that children must respect their elders and leam to be polite. The children pine for freedom. They resent all sorts of curbs. They demand freedom of expression. They want to have a say in family affairs. They insist that their views must be given proper consideration. This leads to bickerings, heart-burning and . tension in the family.

The elders insist on discipline and strict compliance of their orders. They advocate smiling acceptance of punishment meted out for breach of discipline. The young insist on unrestrained freedom and frankness. They advocate freedom of self-expression and are unwilling to tolerate any interference in their personal affairs—career, love-affair or marriage. Thus there is a wide gap between the two generations. This difference in their way of thinking and behavior is destroying family life.

Hence, I conclude that ‘The generation gap is destroying family life’.

Thank you.

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Tamilnadu Samacheer Kalvi 11th English Debate Writing

(i) You are chosen for representing your school at the regional level inter-school debate contest. Prepare a debate for the same on the topic given below:
‘Newspapers ought to contain more news and fewer advertisements
Answer:

Newspapers Ought to Contain More News and Fewer Advertisements
(by Pradeepa)

Respected Chairperson, August faculty and dear friends,

It is painful to see that journalists have lost all ethics and professionalism today. They adopt diverse techniques to increase the revenue of their paper. They try to sensationalise the news to win more readers. However, even the newspaper having the largest circulation is not self-dependent. It must have plenty of commercial advertisements to meet its running costs. In fact, it is these ads which provide the owners the requisite funds. Thus, advertisements cannot be ruled out. They are a necessary evil and must stay.

The owners and editors of the newspapers must also realise their responsibility to the nation. The press is the strongest pillar of democracy. It creates sensible public opinion in favor of good policies and criticises the wrong policies. The newspapers must maintain a balance between news and advertisements. A common man buys a newspaper for news. It would be better that the editors publish a classified advertisement supplement twice or thrice a week and save the general reader from the proliferation of advertisements while scanning the pages for views and news.

(ii) Prepare a debate on the topic ‘Corruption’.
Answer:
Corruption
Yesterday we had a debate about corruption. Of course, everybody was against it, particularly in Third World countries where it undermines economic progress and social and political institutions. But when it comes to business some people weren’t so sure. Corruption is often hidden in the form of fees or taxes or commissions. If these are needed to help get the business instead of your competitor, then a little flexibility is needed.

Fortunately, I was faced with this very early in my business career. I told their Lordships a little cautionary tale. My company developed some new technology in the textile industry and the way it could be used in many countries was through licensing. On one occasion, I had to convince an official to give us a permit. In his bookcase were copies of Dickens, Shakespeare, the Oxford English Dictionary and so I complimented him on his interest in English literature. He looked at me and handed me a copy of Dombey and Son. I opened it up and inside was a cutout which exactly fitted American dollar bills.

As I said in the debate, I am not sure whether it was my distaste for corruption, my uncertainty about the law, my concern for our reputation or my love of books, but this deal never did go through.

However, we did sell that technology in 23 other countries and later several people told me that they bought our license instead of others exactly because we did not pay bribes. This gave them more confidence that our technology would work.

It was the cash flow from these licenses that helped the early business grow. It also convinced me that a strong ethical culture is good for a business.

This is why we should stop watering down the Bribery Act and bring it into force now.

(iii) Impact of Demonetization on Common Man
Answer:
At the stroke of the hour on midnight of 9th November 2016, India lost 86% of its monetary base. The print, electronic and social media has been praising Prime Minister’s masterstroke by which he has reportedly destroyed the base of corruption in India. In this single move, the Government has attempted to tackle all the three issues affecting the economy, /.<?., a parallel economy, counterfeit currency in circulation and terror financing. There is no doubt that Prime Minister has pulled out a major coop and substantially enhanced his reputation as a strong leader.

Views and Counterviews:

The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of.land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid.

Out of this, a lot of money is in circulation in an everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks, etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.

Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recaliberation of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.

Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not to tackle corruption per se or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.

People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.

It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth. If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs 300 or Rs 400 because of lack of proper information which is hitting them.

The stock of the black economy that constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going and gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

Conclusion:
So far, it can be said that this is a historical step and should be supported by all. One should look at the bigger picture which will definitely fetch results in the long term. This is what the people have been asking for a long time which has finally happened.

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Samacheer Kalvi 11th Commerce Solutions Chapter 8 Multi-National Corporations (MNCs)

Samacheer Kalvi 11th Commerce Multi-National Corporations (MNCs) Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
A Multinational Corporation can be defined as a firm which ……………..
(a) Is beyond the control of any government
(b) Is one of the top 200 firms in the world
(c) Owns companies in more than one country
(d) All the above
Answer:
(c) Owns companies in more than one country

Question 2.
Centralised control in MNC’s implies control exercised by ……………..
(a) Branches
(b) Subsidiaries
(c) Headquarters
(d) Parliament
Answer:
(c) Headquarters

Question 3.
Enterprises operating in several countries but managed from one country is termed as ……………..
(a) Government company
(b) Multinational Company
(c) Private company
(d) Joint Venture
Answer:
(b) Multinational Company

Question 4.
Dispersal of decision making power to branches/affiliates/subsidiaries by head office represents ……………..
(a) Centralisation
(b) Decentralisation
(c) Power
(d) Integration
Answer:
(b) Decentralisation

Question 5.
Coca – Cola company is an example of ……………..
(a) MNC
(b) Government company
(c) Joint Venture
(d) Public company
Answer:

II. Very Short Answer Questions

Question 1.
Define Multinational Company.
Answer:
According to Neil H.Jacoby, “A multinational corporation owns and manages the business in two or more countries”

Question 2.
Write any two advantages of MNC.
Answer:
1. Low-Cost Labour: MNC set up their facilities in low-cost countries and produce goods/ services at a lower cost.
2. Quality Products: The resource, experience, and expertise of MNCs in the sphere of research and development enable the host country to establish its research and development system which helps it in producing quality goods and services at the least possible cost.

Question 3.
Give two examples of MNC.
Answer:
Micromax informatics, Karbonn Mobiles.

Question 4.
Name the type of business enterprise which operates in more than one country.
Answer:
A multinational corporation is known by various names such as: global enterprise, international enterprise, world enterprise, transnational corporation etc.

III. Short Answer Questions

Question 1.
What are the advantages of MNC’s?
Answer:
The Following are the major advantages of MNC’s.

• It helps in providing low-cost labour
• It put an end to exploitative trade practices of local monopolists.
• It helps in producing quality products.
• It helps is the proper usage of Idle Resources.

Question 2.
What are the disadvantages of MNC’s?
Answer:

1. The danger for Domestic Industries: MNCs, because of their vast economic power, pose a danger to domestic industries; which are still in the process of development. Domestic industries cannot face challenges posed by MNCs.
2. Transfer of Outdated Technology: Where MNCs transfer outdated technology to the host nation, it serves no purpose.
3. No Benefit to Poor People: MNCs produce only those things, which are used by the rich. Therefore, poor people of host countries do not get, generally, any benefit, out of MNCs.
4. Danger to Independence: Initially MNCs help the Government of the host country, in a number of ways and then gradually start interfering in the political affairs of the host country.
5. Deprivation of Job Opportunity of Local People: MNCs may not generate job opportunities for the people of their home country.

Case Study

Public enterprises are established to achieve the goal of economic and social development of the country. They are managed and controlled by Central or State Governments through ministers or government officials. Many times their poor performance influences the policy formulation and running of the enterprise into a loss. Even the big business houses use their influence and get the policies formulated in their favour. State the role of ministers or government to frame the policies for the success of public enterprises.
Answer:
Role of Ministers or governments to frame the policies for the success of public enterprises.

1. The ministers or governments encourage to start multinational companies.
2. It is easy to form in our country.
3. The economic policy is favorable to the multination corporations.
4. The national income will increase by starting MNCs in India.
5. At low cost the products to be produced and sold to people with a minimum range of profits.
6. Tax relaxation can be permitted because the Government allowed them to start a business.
7. Tax revenue can be increased to the Government.
8. New technologies can be imported from developed countries.
9. Culture can be improved among the people.
10. Communication may be developed.

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Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 1 Introduction To Micro-Economics

Samacheer Kalvi 11th Economics Introduction To Micro-Economics Text Book Back Questions and Answers

Part – A
Multiple Choice Questions

Question 1.
‘Economics is a study of mankind in the ordinary business of life’ -It is the statement of
(a) Adam Smith
(b) Lionel Robbins
(c) Alfred Marshall
(d) Samuelson
Answer:
(c) Alfred Marshall

Question 2.
The basic problem studied in Economics is ……………………….
(a) Unlimited wants
(b) Unlimited means
(c) Scarcity
(d) Strategy to meet all our wants
Answer:
(c) Scarcity

Question 3.
Microeconomics is concerned with
(a) The economy as a whole
(b) Different sectors of an economy
(c) The study of individual economic units behaviour
(d) The interactions within the entire economy
Answer:
(c) The study of individual economic units behaviour

Question 4.
Which of the following is a microeconomics statement?
(a) The real domestic output increased by 2.5 percent last year
(b) Unemployment was 9.8 percent of the labor force last year
(c) The price of wheat determines its demand
(d) The general price level increased by 4 percent last year
Answer:
(c) The price of wheat determines its demand

Question 5.
Find the odd one out:
(a) “An inquiry into the nature and the causes of the Wealth of Nations”
(b) “Principles of Economics”
(c) “Nature and Significance of Economic Science”
(d) “Ceteris paribus”
Answer:
(d) “Ceteris paribus”

Question 6.
The equilibrium price is the price at which ……………………….
(a) Everything is sold
(b) Buyers spend their money
(c) Quantity demanded equals quantity supplied
(d) Excess demand is zero
Answer:
(c) Quantity demanded equals quantity supplied

Question 7.
Author of “An Inquiry into the Nature and Causes of Wealth of Nations”
(a) Alfred Marshall
(b) Adam Smith
(c) Lionel Robbins
(d) Paul A Samuelson
Answer:
(d) Paul A Samuelson

Question 8.
“Economics studies human behavior as a relationship between ends and scarce means which have alternative uses” is the definition of the economics of …………………………
(a) Lionel Robbins
(b) Adam Smith
(c) Alfred Marshall
(d) Paul A Samuelson
Answer:
(a) Lionel Robbins

Question 9.
Who is the Father of Economics?
(a) Max Muller
(b) Adam Smith
(c) Karl Marx
(d) Paul A Samuelson
Answer:
(b) Adam Smith

Question 10.
“Economics is a science” The basis of this statement is …………………………
(a) Relation between cause and effect
(b) Use of deductive method and inductive method for the formations of laws
(c) Experiments
(d) All of the above
Answer:
(d) All of the above

Question 11.
Utility means
(a) Equilibrium point at which demand and supply are equal
(b) Want-satisfying capacity of goods and services
(c) Total value of commodity
(d) Desire for goods and services
Answer:
(b) Want-satisfying capacity of goods and services

Question 12.
A market is ………………………
(a) Only a place to buy things
(b) Only a place to sell things
(c) Only a place where prices adjust
(d) A system where persons buy and sell goods directly or indirectly
Answer:
(d) A system where persons buy and sell goods directly or indirectly

Question 13.
Which one of the following is not a point in the Welfare Definition of Economics?
(a) Study of an ordinary man
(b) Economics does not focus on wealth alone
(c) Economics is the study of material welfare
(d) Economics deals with unlimited wants and limited means
Answer:
(d) Economics deals with unlimited wants and limited means

Question 14.
Growth definition takes into account ……………………….
(a) The problem of choice in the dynamic framework of Economics
(b) The problem of unlimited means in relation to wants
(c) The production and distribution of wealth
(d) The material welfare of human beings
Answer:
(a) The problem of choice in the dynamic framework of Economics

Question 15.
Which theory is generally included under microeconomics?
(a) Price Theory
(b) Income Theory
(c) Employment Theory
(d) Trade Theory
Answer:
(a) Price Theory

Question 16.
……………………….. have exchange value and their ownership rights can be established and exchanged.
(a) Goods
(b) Services
(c) Markets
(d) Revenue
Answer:
(a) Goods

Question 17.
Identify the correct characteristics of utility
(a) It is equivalent to ‘usefulness’
(b) It has moral significance
(c) It is same as pleasure
(d) It depends upon consumer’s mental attitude
Answer:
(d) It depends upon consumer’s mental attitude

Question 18.
Who has given a scarcity definition of economics?
(a) Adam Smith
(b) Marshall
(c) Robbins
(d) Robertson
Answer:
(c) Robbins

Question 19.
The process of reasoning from particular to general is
(a) Deductive method
(b) Inductive method
(c) Positive economics
(d) Normative economics
Answer:
(b) Inductive method

Question 20.
Total revenue is equal to total output sold multiplied by ………………………….
(a) Price
(b) Total cost
(c) Marginal revenue
(d) Marginal cost
Answer:
(a) Price

Part – B

Answer the following questions in one or two sentences

Question 21.
What is meant by Economics?
Answer:

1. The term or word ‘Economics’ comes from the Ancient Greek “oikonomikos” [oikos means “households” and nomos means “management” “custom” or “law”.
2. Thus, the term “Economics” means “management of households”.
3. The subject was earlier known as “Political Economy” is renamed as Economics.

Question 22.
Define microeconomics?
Answer:

1. Microeconomics is the study of the economic actions of individual units say households, firms, or industries.
2. It studies how business firms operate under different market conditions.
3. The combined actions of buyers and sellers determine prices.
   • Microeconomics covers:
   • Value theory [product pricing and factor pricing]
   • Theory of economic welfare.

Question 23.
What are the goods?
Answer:
Goods are also called:

1. Products
2. Commodities
3. Things
4. In Economics, the term ‘goods’ implies the term ‘services’.

Question 24.
Distinguish goods from services.
Answer:

S.No.	Goods	Services
1.	Material things, tangible	Intangible
2.	Exist independently of their owner	Inseparable from their makers
3.	Transferable have value – in – exchange	Services cannot be stored as inventories like goods.

Question 25.
Name any two types of utility?
Answer:

1. Time Utility: A sick man derives time utility from blood, not at the time of its donation. but only at the operation – time, i.e., when it is used.
2. Place Utility: A student derives place utility from a book not at the place of its publication (production centre) but only at the place of his education (consumption centre).

Question 26.
Define positive economics.
Answer:
Positive economics deals with what it is, its means, it analyses a problem on the basis of facts and examines its causes.

Question 27.
Give the meaning of the deductive method?
Answer:

1. The deductive method is also named an analytical or abstract method.
2. It consists in deriving conclusions from general truths.
3. It takes few general principles and applies them to draw conclusions.
4. The classical and neo-classical schools of economists notably, Ricardo, JS Mill, Malthus Marshall, Pigou applied the deductive method in their economic investigations.

Part – C

Answer the following questions in One Paragraph

Question 28.
Explain the scarcity definition of Economics and assess it.
Answer:
Lionel Robbins published a book “An Essay on the Nature and Significance of Economic Science”. In it, he defined “Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses”.
Assessment:

1. Robbins does not make any distinction between goods conducive to human welfare and goods that are not.
2. Economics deals not only with the microeconomic aspects but also with the macroeconomic aspects like how national income is generated. Robbins reduces economics merely to the theory of resource allocation.
3. Robbin’s definition does not cover the theory of economic growth and development.

Question 29.
What are the crucial decisions involved in ‘what to produce’?
Answer:

Every society much decides on what goods it will produce and how much of these it will produce.
In this process, the crucial decisions include:

1. Whether to produce more food, clothing, and housing or to have more luxury goods.
2. Whether to have more agricultural goods or to have industrial goods and services.
3. Whether to use more resources in education and health or to use more resources in military services.
4. Whether to have more consumption goods or to have investment goods.
5. Whether to spend more on basic education or higher education.

Question 30.
Explain different types of economic activities.
Answer:

1. Economics focuses on the behavior and interactions among economic agents, individuals, and groups in the economic system.
2. It deals with the consumption and production of goods and services and distribution of income among the factors of production.
3. It includes the activities of the rational human beings under the existing social, legal, and institutional arrangement.
4. It studies the way in which people use the available resources to satisfy their multiplicity of wants.

Question 31.
Elucidate different features of services?
Answer:
Along with goods, services are produced and consumed. They are generally, possess the following:

1. Intangible:

• Intangible things are not physical objects but exist in connection to other things, for example, brand image, goodwill, etc.
• The intangible things are converted and stored into tangible items such as recording a music piece into a pen drive.

2. Heterogeneous:

• Services vary across regions or cultural backgrounds.
• A single type of service yields multiple experiences, e.g., music, consulting physicians, etc.

3. Inseparable from their makers:

• Services are inextricably connected to their makes. For example, labour and labourers are inseparable.

4. Perishable:

• Services cannot be stored as inventories like assets.
• For example, it is useless to possess a ticket for a cricket-match once the match is over.
• It cannot be stored and it has no value-in-exchange.

Question 32.
What are the important features of utility?
Answer:
Utility: Utility is the want satisfying power of a commodity or a service. Features of utility :

1. Utility is psychological.
2. Utility is not equivalent to usefulness.
3. Utility is not the same as pleasure.
4. Utility is personal and relative.
5. Utility is the function of the intensity of human want.
6. Utility is a subjective concept.
7. Utility has no ethical or moral significance.

Question 33.
Distinguish between microeconomics and macroeconomics
Answer:

S.No.	Micro Economics	Macro Economics
1.	It deals with the economic decision-making of individual economic agents.	It deals with aggregates and averages of the entire economy.
2.	It accounts only small components of the whole economy.	It considers the economy of the country as a whole.
3.	It deals with the price determination of individual products and factors of pro­duction.	It deals with the general price – level in any economy.
4.	It is concerned with the optimization goals of individual consumers and producers	It is concerned with the optimization of the growth process of the entire economy.

Question 34.
Compare positive economics and normative economics.
Answer:
Positive economics deals with what it means, it analyses a problem on the basis of facts and examines its causes whereas, Normative economics responds to a question like what ought to be.

Positive Economics:

1. An increase in the money supply implies a price rise in an economy.
2. As the irrigation facilities and application of chemical fertilizers expand, the production of food – grains increases.
3. An increase in birth rate and a decrease in the death rate reflect the rate of growth of the population.

Normative Economics:

1. Inflation is better than deflation.
2. More production of luxury goods in not good for a less developed country.
3. Inequalities in the distribution of wealth and incomes should be reduced.

Part – D

Answer the following questions in about a page

Question 35.
Compare and contrast various definitions of Economics?
Answer:
1. Wealth Definition: “Adam Smith”
Adam Smith in his book “An inquiry into nature and causes of the wealth of nations” (1776) defines “Economics as the science of wealth”
Criticism:

1. For Smith, Economics consists of ‘Wealth getting’ activities and ‘Wealth – spending’ activities.
2. An undue emphasis is given to material wealth.
3. It ignores human welfare which is an essential part of economics.
4. Ruskin and Carlyle regard economics as a ‘dismal science’, “Pig Science” etc as it is against ethics.

2. Welfare Definition: “Alfred Marshall”
Alfred Marshall is his book “Principles of Economics” (1890) defines economics as: “Political Economy” or economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being. Thus, it is on one side a study of wealth; and on the other and more important side, a part of the study of man.
Criticism:

1. Marshall regards only material things.
2. He does not consider immaterial things, such as the services of a doctor, a teacher, and so on.
3. The concept of welfare is not clearly defined.
4. Welfare varies with the person, country, and time period.
5. Welfare not only depends on the stock of wealth possessed but also on the political, social, and cultural activities of the nation.

3. Scarcity Definition: “Lionel Robbins”
Lionel Robbins published a book “An essay on the nature and significance of economic science (1932). In it, he defined “Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
Criticism:

1. Robbins does not make any distinction between goods conducive to human welfare and goods that are not.
2. Economics deals not only with the microeconomic aspects but also with the macro-economic aspects like how national income is generated.
3. Robbin’s definition does not cover the theory of economic growth and development.

4. Growth Definition: “Samuelson”
Paul Samuelson defines economics as “The study of how men and society choose, with or without the use of money to employ scarce productive resources which could have alternative uses, to produce various commodities over time, and distribute them for consumption now and in the future among various people and groups of society”.
Criticism:

1. Like Kohbin Samuelson states that the means are scarce in relation to unlimited ends.
2. Samuelson makes his definition dynamic by including the element of time in it.
3. It covers various aspects like production, distribution, and consumption.
4. Samuelson treats economics as a social science in contrast to Robbins regards it as a science.

Conclusion:
Of all the definitions discussed above the growth definition stated by Samuelson appears to be the most satisfactory.

Question 36.
Explain various steps of deductive and inductive methods.
Answer:
Steps of deductive method :

1. Should have a clear and precise idea of the problem.
2. Definition of technical terms and assumptions.
3. Deducing hypothesis.
4. Verification of hypotheses

Steps of inductive method :

1. Data collection and arrangement.
2. By observing the data conclusions are drawn easily.
3. Generalization of data and hypothesis formulation.
4. Verification of hypothesis.

Question 37.
Elaborate on the nature and scope of Economics.
Answer:
Economics nature:

1. The nature of a subject refers to its contents and how and why they find a place in the subject.
2. This nature is understood by studying the various definitions given by notable economists.
3. The existence of a multiplicity of definitions makes some scholars comment that a search for a clear definition of economics is an exercise in futility.
4. “Political economy is said to have strangled itself with definitions.”
5. Their presence makes studying a subject interesting, exciting, enjoyable or worthwhile.
6. In fact, their presence in a social science subject is a clear sign of the growth of the science.
7. It indicates that there exists freedom for people associated with such as science to formulate fresh definitions.

Scope of Economics:

1. The scope of the subject of Economics refers to the subject matter of economics.
2. It throws light on whether it is an art or science and if science, whether it is a positive science or normative science.

Economics – Its Subject Matter:

1. Economics focuses on the behaviour and interactions among economic agents, individuals, and groups belonging to an economic system.
2. Economics studies the ways in which people use the available resources to satisfy their multiplicity of wants.
3. The activities of rational or normal human beings are the subject-matter of Economics.

Question 38.
Explain basic problems of the economy with the help of the production possibility curve. Production possibility curve :
Answer:
The Problem of choice between relatively scarce commodities due to limited resources can be illustrated with the help of a geometric device, is known as the production possibility curve

Basic problems of the Economy:

(i) The problem of choice :

1. The problem of choice arises because of the given limited resources and unlimited wants.
2. It may be related to the allocation of resources between people of different standards.
3. Since PPC is the locus of the combination of the goods the problem of choice will not arise.

(ii) The Notion of scarcity :

1. We can explain the notion of scarcity with the help of PPC.
2. Every society possesses only a specific amount of resources, which can produce only a limited amount of output even with the help of the best technology.
3. The PPC reflects the constraints imposed by the element of economic scarcity.

(iii) Solution of central problems :

1. The central problems of an economy can be explained with the help of PPC.
2. The solution for what to produce involves the decision regarding the choice of location on the production possibility curves.
3. A production combination represented by any point inside the PPC indicates that the economy is using inefficient methods of production and a combination of resources.

Samacheer Kalvi 11th Economics Introduction To Micro-Economics Additional Questions and Answers

Part – A

Choose the best options

Question 1.
In Economics, we make use of ………………………
(a) Deductive Method
(b) Inductive Method
(c) Both
(d) None
Answer:
(c) Both

Question 2.
Adam Smith wrote “Wealth of Nations” in
(a) 1723
(b) 1890
(c) 1776
(d) 1932
Answer:
(c) 1776

Question 3.
Who wrote the book “Principles of Economics” in 1890?
(a) Adam Smith
(b) Alfred Marshall
(c) Lionel Robbins
(d) Samuelson
Answer:
(b) Alfred Marshall

Question 4.
Lionell Robbins book, “An essay on the nature and significance of economic science” was published in
(a) 1932
(b) 1776
(c) 1723
(d) 1890
Answer:
(a) 1932

Question 5.
Production refers to the creation of ……………………….
(a) Price
(b) Market
(c) Cost
(d) Utilities
Answer:
(d) Utilities

Question 6.
is the unit of measurement of utility.
(a) Price
(b) Utils
(c) Consumption
(d) Human wants
Answer:
(b) Utils

Question 7.
Perishable goods are ………………………..
(a) Long Term Lived
(b) Short Term Lived
(c) Medium Term Lived
(d) Longer Life Time Lived
Answer:
(b) Short Term Lived

Question 8.
“The proportion of total expenditure incurred on food items declines as total expenditure goes on increasing” is
(a) Marshall’s law
(b) Adam Smith’s law
(c) Engel’s law
(d) Samuelson’s law
Answer:
(c) Engel’s law

Question 9.
……………………… The economy is the other name for economics.
(a) Wealth
(b) Welfare
(c) Scarcity
(d) Political
Answer:
(d) Political

Question 10.
The utility can be measured indirectly using the ‘Measuring rod of money’ is the statement of
(a) Adam Smith
(b) Samuelson
(c) Marshall
(d) Lionel Robbins
Answer:
(c) Marshall

Question 11.
……………………. goods don’t directly satisfy the consumer.
(a) Capital
(b) Consumer
(c) Free
(d) Economic
Answer:
(a) Capital

Match the following and choose the answer using the codes given below 

Question 1.

(a)	Adam Smith	(1)	Nature and significance of economic science
(b)	Alfred Marshall	(2)	Net economic welfare
(c)	Robbins	(3)	Principles of Economics
(d)	Samuelson	(4)	Wealth of nations

(a) 3 4 2 1
(b) 1 2 3 4
(c) 4 2 3 1
(d) 2 4 3 1
Answer:
(a) 3 4 2 1

Question 2.

(a)	Goods	(1)	Man-made
(b)	Services	(2)	Nature
(c)	Free good	(3)	Tangible
(d)	Consumer good	(4)	Intangible

(a) 1 2 3 4
(b) 2 4 3 1
(c) 4 3 2 1
(d) 3 4 2 4
Answer:
(c) 4 3 2 1

Choose the correct statement

Question 3.
(a) Utility is equal to the usefulness
(b) Utility is the same as pleasure
(c) Utility is an objective concept
(d) Utility has no ethical or moral significance
Answer:
(d) Utility has no ethical or moral significance

Question 4.
(a) Consumption is the result of the co-ordination of factors of production
(b) Macro Economics is the obverse of micro Economics
(c) Macro Economics is called price theory
(d) production studies about the pricing of factors of production
Answer:
(b) Macro Economics is the obverse of micro Economics

Choose the incorrect pair

Question 5.

(a)	Micro Economics	i	Value theory
(b)	Macro Economics	ii	Income theory
(c)	International Economics	iii	Happiness index
(d)	Public finance	iv	Financial Administration

Answer:
(c) International Economics – Happiness index

Question 6.

(a)	Adam Smith	i	Classical era
(b)	Marshall	ii	Neoclassical era
(c)	Robbins	iii	New age
(d)	Samuelson	iv	Old age

Answer:
(d) Samuelson iv Old age

Choose the odd one out

Question 7.
(a) Form unity
(b) Place utility
(c) Time utility
(d) Total utility
Answer:
(d) Total utility

Question 8.
(a) Net economic
(b) Wealth definition
(c) welfare definition
(d) scarcity definition
Answer:
(a) Net economic

Choose the correct pair

Question 9.

(a)	International economics	i	Public investment
(b)	Health economics	ii	Drug price control
(c)	Developmental economics	iii	Ecology and environment
(d)	Environment economics	iv	Human development index

Answer:
(b) Health economics (ii) Drug price control

Question 10.

(a)	Equilibrium	i	Keynes
(b)	Utils	ii	Marshall
(c)	Ragnar Frisch	iii	England
(d)	Neo-classical school	iv	Adam smith

Answer:
(b) Utils (ii) Marshall

Choose the incorrect statement

Question 11.
(a) Macroeconomics is concerned with the economy as a whole
(b) Microeconomics is the study of economic actions of individual units
(c) Health economics is an area of applied economics
(d) International economics analyses the interrelationship between economy and environment.
Answer:
(d) International economics analyses the interrelationship between economy and environment.

Question 12.
(a) Economics is an art – A.C. Pigou, Marshall
(b) Economics is a science – Robbins, Jordan
(c) Economic laws are a statement of tendencies – Adam Smith
(d) Political economy is said to have strangled itself with definitions – Keynes
Answer:
(c) Economic laws are a statement of tendencies – Adam Smith

Analyze the reason for the following

Question 13.
Assertion (A): Deductive method derives conclusions from general truth.
Reason (R): Hypotheses can be verified through direct observation and statistical methods
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)
(c) (A) is true, (R) is false.
(d) Both (A) and (R) are false.
Answer:
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)

Question 14.
Assertion (A): In every society, certain choices have to be made.
Reason (R): Resources are always scarce but wants are numerous.
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)
(c) (A) is true, (R) is false.
(d) (A) is false (R) is true.
Answer:
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)

Fill in the blanks with the suitable option given below

Question 15.
The value of goods expressed in money terms is
(a) Revenue
(b) Market
(c) Price
(d) Cost
Answer:
(c) Price

Question 16.
Alfred Marshall wrote “Principles of Economics” in
(a) 1776
(b) 1932
(c) 1723
(d) 1890
Answer:
(d) 1890

Question 17.
______ is the assumption in economics that makes the economic laws hypothetical
(a) Other things remaining the same
(b) Time remaining the same
(c) Money remaining the same
(d) Wants to remain the same
Answer:
(a) Other things remaining the same

Choose the best option

Question 18.
Examples for perishable goods
(a) Television, furniture
(b) Table, chair
(c) Fish, fruits, flowers
(d) Vehicles, capital goods
Answer:
(c) Fish, fruits, flowers

Question 19.
The proportion of total expenditure incurred on food items declines as total expenditure goes on increasing is
(a) Marshall’s law
(b) Samuelson’s law
(c) Adam smith’s law
(d) Engel’s law
Answer:
(d) Engel’s law

Question 20.
The utility can be measured indirectly using the ‘Measuring rod of money’ is the statement of
(a) Marshall
(b) Samuelson
(c) Robbins
(d) Frisch
Answer:
(a) Marshall

Part – B

Answer the following questions in one or two sentences

Question 1.
What is scarcity?
Answer:
Scarcity is the gap between what people want and what they are able to get.

Question 2.
Define normative economics?
Answer:

1. Inflation is better than deflation.
2. More production of luxury goods is not good for a less-developed country.
3. Inequalities in the distribution of wealth and incomes should be reduced.

Question 3.
Explain Value.
Answer:
Value is the power of a commodity to command other commodities in exchange.

Question 4.
What is Income?
Answer:
Income is the amount of monetary or other returns, either earned or unearned, accruing over a period of time.

Question 5.
Give the meaning of the Inductive method.
Answer:
Induction is a process in logic facilitative or arriving at an inference, moving from particular to the general.

Question 6.
What are the kinds of goods?
Answer:

1. Consumer goods
2. Capital goods
3. Perishable goods
4. Durable goods

Part – C

Answer the following questions in One Paragraph

Question 1.
What are the four definitions of economics?
Answer:
Based on the particular stage of the growth of the subject of economics, the four definitions are presented here.

1. Smith’s wealth definition, representing the classical era.
2. Marshall’s welfare definition, representing the Neo-classical era.
3. Robbin’s scarcity definition representing the new age.
4. Samuelson’s growth definition representing the modern age.

Question 2.
Explain the steps of the deductive method?
Answer:
Steps of deductive method:

• Step 1: The analyst must have a clear and precise idea of the problem to be inquired into.
• Step 2: The analyst clearly defines the technical terms used in the analysis. Further, the assumptions of the theory are to be precise.
• Step 3: Deduce hypothesis from the assumptions taken.
• Step 4: Hypotheses should be verified through direct observation of events in the real world and through statistical methods. [e.g.] There exists an inverse relationship between price and quantity demanded of a good.

Question 3.
Whether economics is an art or science? Explain.
Answer:
1. Economics as an art:
Art is the practical application of knowledge for achieving particular goals. Economics provides guidance to the solutions to all the economic problems.
A.C. Pigou, Alfred Marshall, and others regard economics as an art.

2. Economics as a science :
Science is a systematic study of knowledge. Science develops the co-relation between cause and effect based on facts.
Economics examines the relationship between the cause and effect of the problems. Hence, it is rightly considered as both an art and a science.

Question 4.
State the importance of microeconomics.
Answer:

1. To understand the operation of an economy.
2. To provide tools for economic policies.
3. To examine the condition of economic welfare.
4. Efficient utilization of resources.
5. Useful in international trade.
6. Useful in decision making.
7. Optimal resource allocation.
8. The basis for prediction.
9. Price determination.

Question 5.
What are the methods of economic analysis?
Answer:
There are two types of methods used in economics.
i. Deductive Method :

1. It is also named as an analytical or abstract method.
2. It is a process in logic facilitating or arriving at an inference, moving from general to particular.
3. It consists of deriving conclusions from general truths.

ii. Inductive method :
The inductive method is also called as empirical method. It involves the process of reasoning from particular facts to the general principles. In this method, economic generalizations are derived based on

1. Experimentations
2. Observations
3. Statistical methods

Alfred Marshall has rightly remarked “Inductive and Deductive methods are both needed for scientific thought as the right and left foot are both needed for walking”

Part – D

Answer the following questions in about a page

Question 1.
Explain the production possibility curve with a diagram.
The problem of choice between relatively scarce commodities can be illustrated with a help of a geometric device known as the production possibility curve.
Assumptions:
The analysis of the production possibility curve is based on certain assumptions :

1. The time period remains constant.
2. Techniques of production are fixed.
3. Only two goods can be produced from the given resources.
4. There is full employment in the economy.
5. Resources of production are fully mobile.
6. The factors of production are given in quantity and quality.
7. The law of diminishing returns operates in production.

Production possibility schedule:

Production Possibilities	Quantity of food production in tons	No. of car produced
I	0	25
II	100	23
III	200	20
IV	300	15
V	400	8
VI	500	0

Explanation :
The above schedule suggests that if all resources are used for food production a maximum of 500 tons of food can be produced, given the existing technology. Instead, if all resources are used for producing cars, 25 cars can be produced. In between these two extreme possibilities exist, if we are willing to give up some food, we can have some cars.

Diagram Explanation :

• The quantity of food is shown on the x-axis and the number of cars on the y-axis.
• Six different production possibilities P₁, P₂, P₃, P₄, P₅, P₆ are shown.
• Point outside the curve P cannot be attained due to limited resources.
• A point inside the curve P₇ can be attained but at these points, resources are not fully employed

Question 2.
What are the basic economic problems?
Answer:
Basic economics problems:

1. If resources are abundant and wants are so few, then there would be no economic problem.
2. But this situation can never exist.
3. Resources are always scarce and our wants are numerous.

Hence in every society, certain choices have to be made.

The Economic Problem:

1. Wants desires; unlimited
2. Resources: Scarce – Not freely available
3. Economic choice
4. Economics – How people use scarce resources to satisfy unlimited wants.

What and how much to produce?

1. Every society must decide on what goods it will produce and how much of these it will produce.

In this process, the crucial decisions include:

1. Whether to produce more food, clothing, and housing or to have more luxury goods.
2. Whether to have more agricultural goods or to have industrial goods and services.
3. Whether to use more resources in education and health or to use more resources in military services.
4. Whether to have more consumption goods or to have investment goods.
5. Whether to spend more on basic education or higher education.

How to produce?

1. Every society has to decide whether it will use labor-intensive technology on capital-intensive technology; that is whether to use more labor and less more machines and vice versa.

For whom to produce?

1. Every society must also decide how its produce be distributed among the different sections of the society.
2. It must also decide who gets more and who gets less.
3. It should also decide whether or not a minimum amount of consumption be ensured for everyone in the society.
4. Due to the scarcity of resources, society faces the compulsion of making choices among alternatives.
5. It faces the problem of allocating the scarce resources to the production of different possible goods and services and of distributing the produced goods and services among individuals within the economy.

Students can Download Samacheer Kalvi 11th English Reading Note-Making and Summarizing, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Reading Note-Making and Summarizing

Notes are short written record of facts to aid the memory. Notes are usually taken to record a speech or dictation while listening to it or after reading a book, magazine or article. They are referred back whenever needed and may be reproduced in the desired way.

The Necessity Of Note-Making

Knowledge is vast and unlimited, but our memory is limited. We cannot remember all the information all the time. Hence note-making is necessary. With the help of notes we can recall the entire information read/heard months ago. It is quite useful to students preparing for many subjects. At the time of examinations, it is not possible to go through voluminous books. At such critical times, notes are quite handy. Hence note-making fulfils three useful functions:
(i) It keeps a lot of information at our disposal for ready reference.
(ii) It helps us reconstruct what was said or written and thus accelerates the process of remembering/recall.
(iii) It comes in handy in delivering a speech, participation in a debate/discussion, writing an essay and revising lessons before an examination.

How Note-Making Helps Us

While making notes we do not simply read the passage/listen to speech but consider various points made by the writer/speaker and draw our own inferences about what is being presented. Thus note-making helps us in understanding the passage in a better way and organising our thoughts systematically.

Characteristics Of Good Notes

• Short and Compact: Good notes must be short and compact.
• Complete Information: They must contain all the important information.
• Logical: They must be presented in a logical way.
• Understandable: They should be understandable when consulted at a later stage.

Mechanics Of Note-Making

While making notes we follow certain standard practices. These may be listed as follows:
(a) Heading and Sub-headings
(b) Abbreviation and Symbols
(c) Note-form
(d) Numbering and Indentation

Heading And Sub-Headings
The heading reflects the main theme whereas the sub-headings point out how it has been developed. The selection of proper heading and sub-heading reveals the grasp of the passage by the students. In the absence of proper assimilation of main ideas and subsidiary points it is impossible to make notes.

Abbreviations And Symbols
They are used for precision and economy of words and hence quite helpful in note-making. At least four recognisable abbreviations are to be used in note-making in your board examination. These are essential components of note-making. Students often make use of abbreviations and symbols in doing their written work.

Solved Questions
Read the following passages carefully:

Passage 1
1. The conversation is indeed the most easily teachable of all arts. All you need to do in order to become a good conversationalist is to find a subject that interests you and your listeners. There are, for example, numberless hobbies to talk about. But the important thing is that you must talk about other fellow’s hobby rather than your own. Therein lies the secret of your popularity. Talk to your friends about the things that interest them, and you will get a reputation for good fellowship, charming wit, and a brilliant mind. There is nothing that pleases people so much as your interest in their interest.

2. It is just as important to know what subjects to avoid and what subjects to select for good conversation. If you don’t want to be set down as a wet blanket or a bore, be careful to avoid certain unpleasant subjects. Avoid talking about yourself, unless you are asked to do so. People are interested in their own problems, not in yours. Sickness or death bores everybody. The only one who willingly listens to such talk is the doctor, but he gets paid for it.

3. To be a good conversationalist you must know not only what to say, but how also to say it. Be mentally quick and witty. But don’t hurt others with your wit. Finally, try to avoid mannerisms in your conversation. Don’t bite your lips or click your tongue, or roll your eyes or use your hands excessively as you speak.

4. Don’t be like that Frenchman who said, “How can I talk if you hold my hand?”

Questions:
A. On the basis of your understanding of the above passage make notes on it using headings and sub-headings. Use recognizable abbreviations wherever necessary. Give an appropriate title.
B. Write a summary of the above passage in about 80 words.
Answers:
A. TITLE: The Art of Conversation NOTES:
1. Conv’n—most easily tch’ble art
(i) Reqd. interest’g subject – hobbies
(ii) Talk abt other fellow’s int./hobby
(iii) Win’g reptn. as good conversationalist
(a) good f ’ship
(b) charm’g wit
(c) brl. mind

2. Fit subs, for conversationalist
(i) What subs, to avoid/select?
(ii) Avoid unpl’nt subs.
(a) sickness
(b) death
(iii) Avoid talk’g abt self

3. Qualities A a good conversationalist
(i) What to say & how to say it
(ii) ment’y quick & witty
(iii) pleasant & unhurt’g
(iv) avoid mannerisms

Key to Abbreviations and Symbols used

• Conv’n – Conversation
• tch’ble – teachable
• Reqd. – Required
• interest’g – interesting
• abt – about
• int. – interest
• Win’g – Winning
• reptn. – reputation
• f’ship – friendship
• charm’g – charming
• brl. – brilliant
• subs. – subjects
• unpl’nt – unpleasant
• talk’g – talking
• A – of
• ment’y – mentally
• & – and
• unhurt’g – unhurting

B. Summary
Conversation is the easiest and the most effective tool than other arts. To have such attractive quality, you need to pick a subject that interests your listeners more than you. Talk to your friends on topics that can indulge your friends in the conversation for a longer period of time. Being a good conversationalist, you have to be quick and witty. You should have a pleasant and unhurting quality. Mannerism should be avoided.

Passage 2
1. A good business letter is one that gets results. The best way to get results is to develop a letter that, in its appearance, style and content, conveys information efficiently. To perform this function, a business letter should be concise, clear and courteous.

2. The business letter must be concise: don’t waste words. Little introduction or preliminary chat is necessary. Get to the point, make the point, and leave it. It is safe to assume that your letter is being read by a very busy person with all kinds of papers to deal with. Re-read and revise your message until the words and sentences you have used are precise. This takes time, but is a necessary part of a good business letter. A short business letter that makes its point quickly has much more impact on a reader than a long-winded, rambling exercise in creative writing. This does not mean that there is no place for style and even, on occasion, humour in the business letter. While it conveys a message in its contents, the letter also provides the reader with an impression of you, its author: the medium is part of the message.

3. The business letter must be clear. You should have a very firm idea of what you want to say, and you should let the reader know it. Use the structure of the letter—the paragraphs, topic sentences, introduction and conclusion—to guide the reader point by point from your thesis, through your reasoning, to your conclusion. Paragraph often, to break up the page and to lend an air of organisation to the letter. Use an accepted business-letter format. Re-read what you have written from the point of view of someone who is seeing it for the first time, and be sure that all explanations are adequate, all information provided (including reference numbers, dates, and other identification). A clear message, clearly delivered, is the essence of business communication.

4. The business letter must be courteous. Sarcasm and insults are ineffective and can often work against you. If you are sure you are right, point that out as politely as possible. Explain why you are right, and outline what the reader is expected to do about it. Another form of courtesy j is taking care in your writing and typing of the business letter. Grammatical and spelling errors (even if you call them typing errors) tell a reader that you don’t think enough of him or can > lower the reader’s opinion of your personality faster than anything you say, no matter how idiotic. There are excuses for ignorance; there are no excuses for sloppiness.

5. The business letter is your custom-made representative. It speaks for you and is a permanent record of your message. It can pay big dividends on the time you invest in giving it a concise message, a clear structure, and a courteous tone.

Questions:
A. On the basis of your understanding of the above passage make notes on it using headings and sub-headings. Use recognizable abbreviations wherever necessary. Give an appropriate title.
B. Write a summary of the above passage in about 80 words.
Answers:
A. TITLE: Writing a Business Letter
Notes:
1. Features of a gd. busns. letter
(i) conveys info efficiently to get results
(ii) is concise
(iii) is clear
(iv) is courteous

2. How to write a gd. busns. letter
(i) Making letter concise
(a) Intro shd be brief
(b) make ur pt in precise words and sent’s
(c) short letr more effective
(d) style is imp.—may ocasnly have hum’
(ii) Achieving clarity
(a) Have a clear idea of what you wish to say
(b) structr the letter—intro & conclsn.
(c) use accepted format; para, topic, sent’s
(d) check facts, expl’ns, refs.
(iii) Bejng courteous
(a) Expin. ur pt. politely—avoid sarcasm/insults.
(b) careful wrtg & typg.
(c) gram. & spel’g errors to be avoided

3. Importance of busns. letr
(i) a representative
(ii) permanent rec. message

Key to Abbreviations and Symbols used

• gd – good
• busns – business
• info – information
• shd – should
• letr – letter
• pt – point
• sent’s – sentences
• ur – your
• imp – important
• ocasnly – occasionally
• hum’r – humour
• & – and
• structr – structure
• intro – introduction
• conclsn – conclusion
• para – paragraphs
• expl’ns – explanations
• refs – references
• Expln – Explain
• wrtg – writing
• typg – typing
• gram – grammar
• spel’g – spelling
• rec – record

B. Summary
A good business letter is that lends you positive and quality results. To get such results, a business letter should be effective in appearance, style and content. Apart from this a letter should be concise, clear and courteous. The business letter should be to the point as the message can be clear to the reader with an impression of you. The structure of letter should have topic sentence, introduction, paragraphs to conclusion. Re-read the points you have written to avoid sarcasm and insults that can work against your motive. Further more grammar and spelling errors need to be avoided.

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Samacheer Kalvi 11th Commerce Solutions Chapter 3 Classification of Business Activities

Samacheer Kalvi 11th Commerce Classification of Business Activities Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The industries engaged in extraction of iron ore are known as
(a) Construction industries
(b) Manufacturing Industries
(c) Extraction industries
(d) Genetic Industries
Answer:
(c) Extraction industries

Question 2.
Auxiliaries to trade is also called as
(a) Trade
(b) Advertisement
(c) Warehousing
(d) Aids to trade
Answer:
(d) Aids to trade

Question 3.
Production which involves several stages for manufacturing finished products is known as
(a) Analytical industry
(b) Synthetic Industry
(c) Processing industry
(d) None of the above
Answer:
(c) Processing industry

Question 4.
Normally high level risk is involved in
(a) Industry
(b) Commerce
(c) Trade
(d) All the above
Answer:
(a) Industry

Question 5.
Commerce is mainly concerned with
(a) Connecting producer and consumer
(b) Pricing of goods
(c) Buying and selling of goods
(d) Manufacturing of goods
Answer:
(a) Connecting producer and consumer

II. Very Short Answer Questions

Question 1.
Define Commerce.
Answer:
Commerce is the part and parcel of human life.It is emerged as an economic activity, mainly as a barter system which means the exchange of goods for goods. It is defined as an “Organized system for the exchange of goods and services between members of the industrial world”.

Question 2.
What do you mean by industry?
Answer:
The industry refers to economic activities, which are connected with the conversion of resources into useful goods. The production side of business activity is referred to as an industry.

Question 3.
What is trade?
Answer:
Trade denotes the activity of buying and selling or exchanging goods or services between people, firms or countries. A system or network that allows trade is called a market.

Question 4.
Write a short note on transportation.
Answer:
The medium which moves men and materials from one place to another is called transport. Selling all the goods produced at or near the production places is not possible. Hence, goods are to be sent to different places where they are demanded.

III. Short Answer Questions

Question 1.
Distinguish between Extractive industries and genetic industries.
Answer:
Extractive industries are concerned with drawing out products from natural sources such as soil, sea, and air. The products of such industries are generally used for producing finished goods.

Following are some of the examples of extractive industries

• Farming
• Mining
• Fishing

Genetic industries are concerned with activities like reproduction, breeding, and multiplication of animals and plants.
Following are the examples of genetic industries:

• Agricultural activities for the production of crops
• Animal husbandry
• Dairy farming
• Poultry farming

Question 2.
What do you mean by tertiary industries?
Answer:
They do not produce goods. These industries produce utility services and sell them at a profit. They help trade, industry, and commerce. This term also includes auxiliaries to trade like banking, insurance, warehouse, advertisement etc.

Question 3.
Write any three characteristics of commerce.
Answer:
The main features of Commerce:

1. Economic Activity: Commerce is treated as an economic activity since it consists of activities which are undertaken for earning profits. A trader buys goods with the aim of selling them at a profit.
2. Exchange of Goods and Services: The exchange and distribution of goods and services are done through commerce. Goods may be purchased or produced for sale. Commerce comprises both trade and aids to trade.
3. Profit Motive: Commercial activities always aims at a profit. Any activity which does not have the aim of profit will not be a part of commerce. For example, if a trader offers some goods as a gift to his friend it is not commerce.

Question 4.
Narrate commerce with an example.
Answer:
Commerce refers to all those activities which are necessary for bringing goods from the place of production to the place of their consumption. Commerce includes not only trade but also services such as transport, warehousing, packaging, insurance, banking and sales promotion which are incidental or auxiliaries to trade.

IV. Long Answer Questions

Question 1.
Explain the various kinds of industries on the basis of size.
Answer:
Meaning: The industry refers to economic activities, which are connected with the conversion of resources into useful goods. It also used to mean a group of firms producing similar or related goods. Under the Micro, Small and Medium Enterprises (MSME) Development Act, 2006, the types of industries can be classified into four.

On the basis of size or scale of operations industries may be classified as follows:

• Micro units: A unit wherein investment in plant and machinery is upto Rs.25 lakhs in case of manufacturing and upto 10 lakhs in case of service enterprises.
• Small units: A manufacturing unit wherein investment in plant and machinery is more than 25 lakhs but does not exceed Rs.5 acre. In the case of service enterprises, these hunts are Rs.10 lakhs and Rs.2 crore respectively.
• Medium units: A manufacturing unit wherein investment in plant and machinery is more than 5 crores but does not exceed Rs. 10 crores In the case of service enterprises, these limits are Rs.2 crore and Rs.5 crore respectively.
• Large units: A manufacturing unit wherein investment in plant and machinery exceeds Rs.10 crore. In the case of a service unit investment in equipment exceeds Rs.5 crore.

Question 2.
Compare industry, commerce, and trade.
Answer:

Question 3.
What are the characteristics of Commerce?
Answer:
Definition of Commerce:
According to Evelyn Thomas, “Commercial operations deal with the buying and selling of goods, the exchange of commodities and the contribution of finished products”. Commerce includes not only trade but also services which are incidental or auxiliaries to trade.

The main features of Commerce:

•  Economic Activity: Commerce is treated as an economic activity since it consists of activities which are undertaken for earning profits. A trader buys goods with the aim of selling them at a profit.
• Exchange of Goods and Services: The exchange and distribution of goods and services are done through commerce. Goods may be purchased or produced for sale. Commerce comprises both trade and aids to trade.
• Profit Motive: Commercial activities always aims at a profit. Any activity which does not have the aim of profit will not be a part of commerce. For example, if a trader offers some goods as a gift to his friend it is not commerce.
• The regularity of Transaction: The transactions should be done continuously to make it commerce. An isolated transaction does not imply commerce. For example, if a person sells his typewriter it is not commerce.
• Creation of Utilities: Commerce creates several types of utilities. It creates place utility by carrying goods to the place where they are needed. It makes goods available as and when demanded thereby creating time utility. By creating these utilities commerce helps to increase the volume of trade. demanded. The medium which moves men and materials from one place to another is called transport.
• Part of business: Commerce is a branch of economics. Economics is the study of human beings as consumers and producers.

Question 4.
Write short notes on:

1. Analytical industry
2. Genetic industry and
3. Construction industry.

Answer:
1. Analytical Industry: It analyses and separates different elements from the same materials, as in the case of oil refinery.

2. Genetic Industries: These industries remain engaged in breeding plants and animals for their use in further reproduction. The seeds, nursery companies, poultry, diary, piggeiy, hatcheries, nursery, fisheries, apiary etc are classic examples of genetic industries.

3. Construction Industries: These industries are involved in the construction of buildings, dams, bridges, roads, as well as tunnels, and canals.

Question 5.
Briefly explain the auxiliaries of trade.
Answer:
All activities that facilitate the smooth flow of goods from manufacturing centers to the consumption centers are called auxiliaries to trade or aids to trade. It may be classified into five categories. They are:

1. Transportation:
It is not possible for the producers to sell all the goods produced by them near the production centre. So the goods had to be sent to different places where they are demanded. The medium which moves men and materials from one place to another is called transport.

2. Banking and Finance:
Without banks, the business cannot be run smoothly. Banks supply money. A bank is an organization which accepts deposits of money from the public, withdrawals on demand or otherwise, and lends the same to those who need it. Business activities cannot be undertaken unless funds are available for acquiring assets, purchasing raw materials, and meeting other expenses. A businessman can obtain funds from banks. Thus banking helps business activities to overcome the problem of finance.

3. Insurance:
Business involves various kinds of risks. The factory assets must be protected against fire, theft, and other risks. The stock in the warehouse and in transit is subject to the risk of loss or damage. Employees also need protection against occupational hazards. Insurance provides protection in all such cases. On payment of a nominal premium, the amount of loss or damage and compensation for injury if any can be recovered from the insurance company.

4. Warehousing:
There is a time gap between the goods production and the final consumption. The goods produced have to be maintained as stock to make them available as and when required. Special arrangements must be made for the storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilitates the availability of goods when needed. The price of the product should be maintained at a reasonable level through a continuous supply of goods.

5. Advertising:
The sale of the products has been increased with the help of advertising. Fast-moving consumer goods like soaps, detergents, electronic goods, and automobiles need advertisement to reach people. It is not possible for the producer and the trader to reach each and every consumer. Thus for promoting sales information about the goods and services available their features, price, etc., must reach potential buyers.

Also, there is a need to persuade potential buyers about the uses, quality, prices, competitive information about the goods and services, etc. Advertising helps in providing information about available goods and services and inducing customers to buy particular items.

Samacheer Kalvi 11th Commerce Classification of Business Activities Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
All business activities can be classified into ……………. broad categories.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(a) Two

Question 2.
Where is the mechanical appliances and technical skills used?
(a) Industry
(b) Commerce
(c) Business
(d) Trade
Answer:
(a) Industry

Question 3.
Horticulture is an example for …………….
(a) Primary industry
(b) Secondary industry
(c) Tertiary industry
(d) Local industry
Answer:
(a) Primary industry

Question 4.
……………. industry assembles different component parts to make a new product, as in the case of television, car, computer, etc.
(a) Assembling
(b) Processing
(c) Analytical
(d) Construction
Answer:
(a) Assembling

Question 5.
Professional or specialized skills and high technology are used to provide ……………. type of services.
(a) Personalised
(b) Public
(c) Distributive
(d) Quaternary
Answer:
(d) Quaternary

Question 6.
Banking, factoring, accounting and insurance come under ……………. type of service.
(a) Mechanical
(b) Financial
(c) Personal
(d) Quinary
Answer:
(b) Financial

Question 7.
Commerce represents ……………. side of goods and services.
(a) Demand
(b) Profit
(c) Supply
(d) Cost
Answer:
(a) Demand

Question 8.
Special arrangements must be made for goods to prevent loss or damage.
(a) Transportation
(b) Pricing
(c) Storage
(d) Advertising
Answer:
(c) Storage

II. Very Short Answer Questions

Question 1.
What is the Extractive industry?
Answer:
Extractive industries extract or draw out products from natural sources. Extractive industries supply some basic raw materials that are mostly products of the geographical or natural environment.

Question 2.
What is Primary industry?
Answer:
Primary industry is concerned with the production of goods with the help of nature. It is a nature-oriented industry, which requires very little human effort.

Question 3.
What is the Secondary industry?
Answer:
Secondary Industries are concerned with using the materials which have already been extracted at the primary stage. These industries process such materials to produce goods for final consumption or for further processing by other industrial units.

Question 4.
What is the tertiary industry?
Answer:
They do not produce goods. These industries produce utility services and sell them at a profit. They help trade, industry, and commerce. This term also includes auxiliaries to trade like banking, insurance, warehouse, advertisement, etc.

Question 5.
What are the auxiliaries to trade?
Answer:

1. Transportation
2. Banking and Finance
3. Insurance
4. Warehousing
5. Advertising

III. Short Answer Questions

Question 1.
Write any three categories of Manufacturing industries.
Answer:

1. Analytical Industry analyses and separates different elements from the same materials, as in the case of an oil refinery.
2. The synthetic Industry combines various ingredients into a new product, as in the case of cement.
3. The processing Industry involves successive stages for manufacturing finished products, as in the case of sugar and paper.

 

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Samacheer Kalvi 11th Commerce Solutions Chapter 2 Objectives of Business

Samacheer Kalvi 11th Commerce Objectives of Business Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The Primary objective of a business is …………………….
(a) Making Profit
(b) Not Making Profit
(c) Special skill
(d) None of the above
Answer:
(a) Making Profit

Question 2.
Occupation of a Doctor is …………………….
(a) Employment
(b) Business
(c) Profession
(d) Sole Proprietor
Answer:
(c) Profession

Question 3.
The following does not characterize business activity?
(a) Production of goods and services
(b) Presence of Risk
(c) Sale or exchange of goods and services
(d) Salary or wages
Answer:
(d) Salary or wages

Question 4.
Activities undertaken out of love and affection or with social service motive are termed as …………………….
(a) Economic activities
(b) Monetary activities
(c) Non Economic Activities
(d) Financial Activities
Answer:
(c) Non-Economic Activities

II. Very Short Answer Questions

Question 1.
Define Economic Activities.
Answer:
Activities undertaken with the object of earning money are called economic activities. E.g Production of goods by manufacturer, selling by the retailer, accounting practice by chartered accountants.

Question 2.
What do you mean by Business?
Answer:
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

Question 3.
Define Profession.
Answer:
A profession is any type of work that needs special training or a particular skill, often one that is respected because it involves a high level of education. It is something which is more than a job. Those engaged in a profession are called professionals and they earn income by charging professional fees.

Question 4.
What do you mean by Employment?
Answer:
It refers to the occupation in which people work for others and get remuneration in the form of wages or salaries.

III. Short Answer Questions

Question 1.
What do you mean by human activities? Explain.
Answer:
An activity performed by a human being to meet his/her needs and wants or maybe for personal satisfaction. It can be categorized into economic and non-economic activities.

Economic Activities: Activities undertaken with the object of earning money are called economic activities.
E.g Production of goods by manufacturer, selling by the retailer, accounting practice by chartered accountants.

Non-Economic Activities: Activities undertaken to satisfy social and psychological needs are called non-economic activities. E.g: Cooking food for the family, Doing meditation, Celebrating festivals.

Question 2.
Write short notes on:

1. Business
2. Profession

Answer:
1.Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

2. Professions are those occupations which involves rendering of personal services of a special and expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas.

Question 3.
Explain the concept of ‘Business’.
Answer:
Any human activity is undertaken on a regular basis with the object to earn profit through production, distribution, sale, or purchase of goods and services. It can be defined as “an activity involving regular production or purchase of goods and services for sale, transfer, and exchange with an object of earning profit”. Business activities are connected with increasing, producing, or processing goods. It is done by the industries. Industries brought goods for intermediate consumption (i.e., semi-finished goods into finished goods) or final consumption by consumers.

Question 4.
Briefly state the human objectives of a business.
Answer:
Human objectives refer to the objectives aimed at the well – being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human objectives of business may thus include economic well – being of the employees, social and psychological satisfaction of employees and development of human resources.

IV. Long Answer Questions

Question 1.
Explain the characteristics of Business.
Answer:
Definition of Business: According to Stephenson, “The regular production pi purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants.

The essential characteristics of the business are as follows:

1. Production or procurement of Goods: Goods must be produced or procured in order to satisfy human wants.

2. Sale, Transfer, or Exchange: There must be a sale or exchange of goods or services. Then a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

3. Dealing in Goods and Services: Goods produced or procured may be consumer goods like cloth, pen, brush, bag, etc., or producer-goods like plant and machinery. Services refer to activities like a supply of electricity, gas or water, transportation, banking, insurance, etc.

4. The regularity of Dealings: The business activities should be a regular and continuous process. A single dealing in buying and selling does not constitute a business. The process of buying and selling must be recurrent to constitute a business.

5. Profit motive: An important feature of the business is profit motive. Human beings make their living through business. By the attraction of the profit, only people are interested to do business.

6. The element of Risk: The profit in a business is uncertain. It depends upon a number of factors beyond the control of the businessman. The factors may be in the following forms, i.e change in consumer preference, shortage of raw material, transport bottlenecks, power crisis, etc., the undefined changes may lead to a loss. That is why profit is said to be a reward for risk-taking. Thus any business activity includes an element of risk too.

Question 2.
Compare business with profession and employment.
Answer:

Question 3.
Discuss any five objectives of the business.
Answer:
Every business enterprise has certain objectives which regulate and generate its activities. Objectives are needed in every area where performance and results directly affect the survival and prosperity of a business.

The following are the various objectives:

Economic Objectives:
It refers to the objective of earning profit and also other objectives are necessary to be pursued to achieve the profit objective, which includes the creation of customers, regular innovations, and the best possible use of available resources.

Social Objectives:
The objectives are desired to be achieved for the benefit of society. Since business operates in society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed at giving any kind of trouble to the society.

Organizational Objectives:
to accomplish during the course of its existence in the economy like expansion and modernization, supply quality goods to consumers, customer’s satisfaction, etc.

Human Objectives:
The objectives aimed at the well-being as well as the fulfillment of expectations of employees as also of people who are disabled, handicapped, and deprived of proper education and training. The human objectives of business may thus include economic well-being of the employees, social and psychological satisfaction of employees, and development of human resources.

National Objectives:
The goal of the country may be to provide employment opportunities to its citizen, earn revenue for its exchequer, become self-sufficient in the production of goods and services, promote social justice, etc. Business activities should be conducted keeping these goals of country in mind, is known as national objectives of the business. These are all the objectives of the business.

Question 4.
Distinguish between economic and non – economic activity.
Answer:

Samacheer Kalvi 12th Commerce Objectives of Business Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
Human activities can be categorised into …………….. types.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(b) Two

Question 2.
Activities undertaken with the object of earning money are called …………….. activities.
(a) Economic
(b) Non – economic
(c) Financial
(d) Money
Answer:
(a) Economic

Question 3.
Occupations may be classified into ……………. categories.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(c) Three

Question 4
………………. refers to the occupation in which people work for others and get remuneration in the form of wages or salaries.
(a) Employment
(b) Profession
(c) Business
(d) Industry
Answer:
(a) Employment

II. Very Short Answer Questions

Question 1.
What do you mean by non – economic activities?
Answer:
Activities undertaken to satisfy social and psychological needs are called non – economic activities.

Question 2.
How many types of occupations are there?
Answer:

1. Employment
2. Profession
3. Business

Question 3.
What are Private Enterprises?
Answer:
An enterprise is said to be a private enterprise where it owned, managed and controlled by persons other than Government.

Question 4.
What is Public Enterprises?
Answer:
An enterprise is said to be a public enterprise where it is owned, managed, and controlled by the Government or any of its agencies or both.

Question 5.
What is Joint Enterprise?
Answer:
An enterprise is said to be a joint enterprise where it is owned, managed and controlled by Government and private entrepreneurs. Example – Maruti Suzuki

III. Short Answer Questions

Question 1.
Give three examples of Economic Activities.
Answer:

1. Production of goods by the manufacturer
2. Distribution of goods by a wholesaler
3. Selling by retailers

Question 2.
Write any three characteristics of Business.
Answer:
1. Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.

2. Sale, Transfer, or Exchange:
There must be a sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

3. Dealing in Goods and Services:
Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer goods like plant and machinery. Services refer to activities like a supply of electricity, gas or water, transportation, banking, insurance, etc.

For Own Thinking 

Question 1.
Do you know that there are white-collar, blue-collar, pink-collar jobs? Collect the information and discuss.
Answer:
Examples:

1. White-collar jobs – managerial positions
2. Blue-collar jobs – skilled or unskilled working class, mechanics
3. Pink collar jobs- nursing, teaching, etc.

Students can Download Commerce Chapter 1 Historical Background of Commerce in the Sub-Continent Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 1 Historical Background of Commerce in the Sub-Continent

Samacheer Kalvi 11th Commerce Historical Background of Commerce in the Sub-Continent Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The place where the goods are sold is ……………
(a) Angadi
(b) Market
(c) Nalangadi
(d) Allangadi
Answer:
(a) Angadi

Question 2.
Hindrance of place is removed by ……………
(a) Transport
(b) Warehouse
(c) Salesman
(d) Insurance
Answer:
(a) Transport

Question 3.
Who wrote “Arthasasthra”?
(a) Kautilya
(b) Chanakiya
(c) Thiruvalluvar
(d) Elangovadigal
Answer:
(a) Kautilya

Question 4.
Trade and Commerce was common to …………… Dynasty.
(a) Pallava
(b) Chola
(c) Pandiya
(d) Chera
Answer:
(c) Pandiya

Question 5.
…………… was first sultan who paved way in the dense forest and helped traders to move from one market place to others place for their commercial caravans.
(a) Balban
(b) Vasco da Gama
(c) Akbar
(d) Alauddin Khilji
Answer:
(a) Balban

II. Very Short Answer Questions

Question 1.
What is meant by Barter system?
Answer:
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange such as money.

Question 2.
What is meant by Nalangadi?
Answer:
The place where the goods were sold was called ‘Angadi’ in the Pandiya period. Day market was called as Nalangadi.

Question 3.
What is meant by Allangadi?
Answer:
According to St.Poet Ilango, in Silapathigaram, a Night Market was called Allangadi.

III. Short Answer Questions

Question 1.
Explain the meaning of the term “Vanigam”.
Answer:
The word ‘Vanigam’ has been widely used in Sangam literature like Purananuru and Thirukkural. The earliest trading population of India was the Indus valley people, who used the word ‘trade’. The word vaniyam or vanipam would have had a Dravidian origin.

Question 2.
State the meaning of Maruvurapakkam and Pattinapakkam.
Answer:
Big city like Poompuhar had the ‘Maruvurappakam’ (inland town) and ‘Pattinapakkam’ (Coastal Town), had markets and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and food stuff. These places were always seen as busy with marts and markets with activities related to imports and exports.

Question 3.
What is the role of Sangam in the trade development of ancient Tamil Nadu?
Answer:
Sangam work refers to great traders, their caravans, security force, markets, marts, and guilds of such great traders.

Question 4.
What are the ports developed by the Pandiya kingdom?
Answer:
Tondi, Korkai, puhar, and Muziri were the port towns developed in the Padiya Kingdom. People were engaged in different kinds of fishing pearls and conches and produced salts and built ships. Various check posts were installed to collect customs along the highways and the ports. Korkai, Saliyur, Kayal, Marunguar Pattinam, and Kumari are some of the important Ports.

Question 5.
What was focused in Arthasasthra about the creation of wealth?
Answer:
Arthasasthra focused on the creation of wealth as the means to promote the well-being of the state. Kautilya advocated the maintenance of a perfect balance between State management and people’s welfare through trading activities.

IV. Long Answer Questions

Question 1.
What are the hindrances of business?
Answer:

• Hindrance of person:
  Manufacturers do not know the place and face of the consumers. It is the retailer who knows the taste, preference and location of the consumers. The chain of middlemen consisting of wholesalers, agents, and retailers establish the link between the producers and consumers.
• Hindrance of place:
  Production takes place in one centre and consumers are spread throughout the country and world. Rail, air, sea and land transports bring the products to the place of the consumer.
• Hindrance of time:
  Consumers want products whenever they have money, time and willingness to buy. Goods are produced in anticipation of such demands. They are stored in warehouses in different regional centres so that they can be distributed at the right time to the consumers.
• Hindrance of risk of deterioration in quality:
  Proper packaging and modem air-conditioned storage houses ensure that there is no deterioration in quality of products. Goods are protected against insects, rats, evaporation etc.
• Hindrance of risk of loss:
  Fire, theft, floods and accidents may bring huge loss to the business. Insurance companies serve to cover the risk of such losses.
• Hindrance of knowledge:
  Advertising and communication help in announcing the arrival of new products and their uses to the people.
• Hindrance of exchange:
  Money functions as a medium of exchange and enables the buying and selling of any product or service by payment of the right price.
• Hindrance of finance:
  Producers and traders may not have the required funds at the time of their need. Banks and other financial institutions provide funds and help in the transfer of funds to enable the functioning of business smoothly.
• Hindrance of developing the exact product:
  Research and development help in developing the exact product or service which can satisfy the specific wants of consumers and thus improve the standard of living of the people.
• Hindrance of both selection and delivery at doorsteps:
  buyers and sellers do not have surplus then no barter was possible.

Question 2.
State the constraints in barter system.
Answer:
1. Lack of double coincidence of Wants: Unless two persons who have surplus have the demand for the goods possessed by each other, baiter could not materialize. If this “coincidence of wants” does not exist, Barter cannot take place.

2. Non – existence of common measure of value: Barter system could not determine the value of commodities to be exchanged as they lacked commonly acceptable measures to evaluate each and every commodity.

3. Lack of direct contact between producer and consumers: It was not possible for buyers and sellers to meet face to face in many contexts for exchanging the commodities for commodities.

4. Lack of surplus stock: Absence of surplus stock was one of the impediments in barter system. If the buyers and sellers do not have a surplus then no barter was possible.

Question 3.
Explain the development of Commerce and Trade in North India.
Answer:
India was prosperous during the medieval period from the 12th to 16th centuries Balban was the first sultan who paved the way in the dense forest and helped traders and their commercial caravans to move from one place to others. AlauddinKhilji encouraged the import of foreign goods from Persia and subsidized the goods. Arabs were the dominant players in India’s trade. The trade between central and west Asia was in the hands of Multanis who were Hindus and Khurasanis who were Afghans, Iranians, and so on.

India’s handicraft commanded a good foreign market. Indian products were exported to East Africa, Malaya, China, and the Far East. The traders of Malabar, Gujarat, and foreign settlers in the ports of Calicut, Khumbat, and Mangalore controlled a major business sector in port cities. India conducted foreign trade via a land route with Quetta, Khyber pass, Iraq, and Bukhara.

Question 4.
Briefly explain the coastal trade in ancient Tamil Nadu.
Answer:
Big cities like Poompuhar had the ‘Maruvurappakam’ (inland town) and ‘Pattinapakkam’ (coastal town), had market and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and foodstuff. Port towns like Tondi, Korkai, Puhar, and Muziri were always seen as busy with marts and markets with activities related to imports and exports. In such a brisk trade, people of the coastal region engaged themselves in coastal trade and developed their intercontinental trade contacts.

They were engaged in different kinds of fishing pearls, and conches and produced salts and built ships. Boats like ‘Padagu’, ‘Thimil’, ‘Thoni’, ‘Ambu’, ‘Odampunai’, etc., were used to cross rivers for domestic trade while ‘Kalam’, ‘Marakalam’, ‘Vangam’, ‘Navai’, etc., were used for crossing oceans for foreign trade.

Question 5.
What do you know about the overseas trading partners of ancient Tamil Nadu?
Answer:
Many merchants met one another for the purpose of selling or buying different kinds of commodities and foodstuff. Port towns like Tondi, Korkai, Puhar, and Muziri were involved in imports and exports. People were engaged in different kinds of fishing pearls, and conches and produced salts, and built ships. Kalam, Marakalam, Vangam, Navai, etc. were used for crossing oceans for foreign trade.

Besides the state transport, the infrastructure for shipping such as ports, lighthouse, warehouse etc. was expanded to promote overseas trade. Kaveripattinam was the chief port of the Kingdom of Cholas. The state governments installed check posts to collect customs along the highways and the ports. Cholas had a strong trading relationship with the Chinese Song Dynasty. During 16th & 18th centuries, India’s overseas trade expanded due to trading with European Companies.

Samacheer Kalvi 12th Commerce Historical Background of Commerce in the Sub-Continent Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
…………….. is part and parcel of human life.
(a) Commerce
(b) Banking
(c) Insurance
(d) Warehousing
Answer:
(a) Commerce

Question 2.
…………….. means exchange of goods for goods.
(a) Insurance
(b) Money
(c) Barter System
(d) Transport
Answer:
(c) Barter System

Question 3.
Commerce activities are heading for a cashless system through ……………..
(a) e-commerce
(b) banking
(c) insurance
(d) warehousing
Answer:
(a) e-commerce

Question 4.
…………….. in Sangam period was both internal and external.
(a) Sales
(b) Education
(c) Industry
(d) Trade
Answer:
(d) Trade

Question 5.
Day market was called as ……………..
(a) Nalangadi
(b) Angadi
(c) Business
(d) Trade
Answer:
(a) Nalangadi

Question 6.
The night market was called as ……………..
(a) Allangadi
(b) Street store
(c) Shop
(d) Maligai
Answer:
(a) Allangadi

Question 7.
Which is called a sleepless city?
(a) Chennai
(a) Allangadi
(c) Tuticorin
(d) Salem
Answer:
(a) Allangadi

Question 8.
Boats like …………….. were used to cross rivers for domestic trade.
(a) Fishings
(b) Kalam
(c) Marakalam
(d) Thimil
Answer:
(d) Thimil

Question 9.
Boats like …………….. were used for crossing oceans for foreign trade.
(a) Vangam
(b) Thimil
(c) Ambu
(d) Thoni
Answer:
(a) Vangam

Question 10.
…………….. was the chief port of the Kingdom of Cholas.
(a) Marakannam
(b) Arikamedu
(c) Kayal
(d) Kaveripumpattinam
Answer:
(d) Kaveripumpattinam

Question 11.
…………….. Who advocated the maintenance of perfect balance between State management and people’s welfare through trading activities.
(a) Kautilya
(b) Pandiya
(c) Hebrew
(d) Chola
Answer:
(a) Kautilya

Question 12.
The profit margin allowed for traders ranged from 5% for indigenous goods and …………….. for imported goods.
(a) 10%
(b) 5%
(c) 15%
(d) 20%
Answer:
(a) 10%

Question 13.
Who encouraged the import of foreign goods from Persia and subsidized the goods?
(a) Balban
(b) Sultan
(c) Alauddin Khilji
(d) Kautilya
Answer:
(c) Alauddin Khilji

Question 14.
Which one helps in announcing the arrival of new products and their uses to the people?
(a) Advertising
(b) Banking
(c) Trade
(d) Transport
Answer:
(a) Advertising

Question 15.
…………….. functions as a medium of exchange.
(a) Transport
(b) Banking
(c) Money
(d) Warehousing
Answer:
(c) Money

II. Very Short Answer Questions

Question 1.
What is the cashless system?
Answer:
Commerce activities are heading for a cashless system through e-commerce which means business activities enabled through electronic modes like Online trading, Mobile banking, and e-marketing.

Question 2.
What is ‘Angadi’?
Answer:
The place where the goods were sold was called ‘Angadi’ in Pandiya Dynasty.

Question 3.
Which city was called sleepless city?
Answer:
Madurai was called a sleepless city due to round – the – clock business activities.

Question 4.
What type of boats were used to cross rivers for domestic trade?
Answer:
Boats like ‘Padgu’, ‘Thimil’, ‘Thom’, ‘Ambu’ ‘Odampunai’, etc., were used to cross rivers for domestic trade.

Question 5.
What type of boats were used to cross oceans for foreign trade?
Answer:
Boats like ‘Kalam’, ‘Marakalam’, ‘Vangam’, ‘Navai’, etc., were used for crossing oceans for foreign trade.

Question 6.
How were the foreigners called in Ancient Tamil Nadu?
Answer:
Foreigners who transacted business were known as ‘yavanars’.

Question 7.
What was the role of the state in trade?
Answer:
The role of the state in trade related to two aspects namely adequate infrastructure to sustain the trade and administrative machinery for taxation.

Question 8.
What was advocated by Kautilya?
Answer:
Kautilya advocated the maintenance of a perfect balance between State management and people’s welfare through trading activities.

Question 9.
With whom Cholas had a strong trading relationship?
Answer:
Cholas had a strong trading relationship with the Chinese Song Dynasty.

Question 10.
What are the constraints of the Barter System? (any two)
Answer:

1. Lack of double coincidence of wants
2. Non – existence of common measure of value

III. Short Answer Questions

Question 1.
How has the commerce activities emerged how?
Answer:
The whole of commerce activity has emerged from barter system into a multidimensional and multifaceted scientific system consisting of courses like Monetary system, Mail order business, Hire purchase system, Instalment purchase system and so on.

Question 2.
What is the course of commercial activities in today’s technology-driven society?
Answer:
In a technology-driven society today again the course of commercial activities is heading for a cashless system through e-commerce which means business activities enabled through electronic modes like Online trading, Mobile banking and e-marketing.

Question 3.
What were the constraints in the barter system? (Any three)
Answer:
1. Lack of Double Coincidence of Wants:
Unless two persons who have surplus have the demand for the goods possessed by each other, barter could not materialize. If this “coincidence of wants” does not exist, barter cannot take place.

2. Non – existence of Common Measure of Value:
The barter system could not determine the value of commodities to be exchanged as they lacked commonly acceptable measures to evaluate each and every commodity.

3. Lack of Direct Contact between Producer and Consumers:
It was not possible for buyers and sellers to meet face to face in many contexts for exchanging the commodities for commodities.

Question 4.
Write any three hindrances of commerce.
Answer:
1. Hindrance of Person: Manufacturers do not know the place and face of the consumers. The chain of middlemen consisting of wholesalers, agents, and retailers establish the link between the producers and consumers.

2. Hindrance of Place: Production takes place in one centre and consumers are spread throughout the country and world. Rail, air, sea, and land transports bring the products to the place of the consumer.

3. Hindrance of Time: Consumers want products whenever they have money, time, and willingness to buy. Goods are produced in anticipation of such demands.

IV. Long Answer Questions

Question 1.
How did the ancient Tamil country trade with Rome, China, and Europe?
Answer:
Roman and Greek traders frequented the ancient Tamil country and forged trade relationship with ancient Kings of Pandiya, Chola, and Chera dynasties. Cholas had a strong trading relationship with the Chinese Song Dynasty. The Cholas conquered the Sri Vijaya Empire of Indonesia and Malaysia to secure a sea trading route to China. During the 16^th and 18^th centuries, India’s overseas trade expanded due to trading with European companies. The discovery of new all sea routes from Europe to India via the Cape of Good Hope by Vasco da Gama had a far-reaching impact on the civilized world. The arrival of the Portuguese in India was followed by the advent of other European communities. They gained a strong foothold in India’s maritime trade by virtue’ of their strong naval power.

Students can Download Commerce Chapter 6 Joint Stock Company Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 6 Joint Stock Company

Samacheer Kalvi 11th Commerce Joint Stock Company Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The relationship between outsiders and the company is defined in …………………..
(a) Prospectus
(b) Articles of Association
(c) Memorandum of Association
(d) Certificate of Incorporation
Answer:
(a) Prospectus

Question 2.
Table A of the Companies Act is a …………………..
(a) Model minutes book
(b) Model form of Balance Sheet
(c) Model of AOA
(d) Model of MOA
Answer:
(c) Model of AOA

Question 3.
Which of the’following is created by a Special Act of Parliament or in State Assemblies?
(a) Chartered company
(b) Foreign company
(c) Government company
(d) Statutory company
Answer:
(d) Statutory company

Question 4.
The Board of directors of a company is elected by
(a) Creditors
(b) Debtors
(c) Debenture holders
(d) Share holders (members)
Answer:
(d) Share holders (members)

Question 5.
Companies established as a result of a charter granted by the King or Queen of a country is called
(a) Chartered companies
(b) Statutory companies
(c) Registered companies
(d) Foreign companies
Answer:
(a) Chartered companies

II. Very Short Answer Questions

Question 1.
What are the different types of companies?
Answer:
The Companies can be classified on the basis of the following:

• Incorporation
• Membership
• Member liability
• Control
• Nationality

Question 2.
Define a Company.
Answer:
“A company is an artificial person created by law having a separate entity with a perpetual succession and a common seal.” – L.H. Haney.

Question 3.
What is meant by Limited liability?
Answer:
The liability of the members in a company is limited by shares only to the unpaid value of the shares subscribed by them. No personal property of the members can be made use of, for the satisfaction of the company’s debt beyond the limit of the shareholding or guarantee money.

Question 4.
Explain any two characteristics of a company.
Answer:
1. Separate Legal Entity:
Under Incorporation, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members.

2. Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him.

Question 5.
What is meant by Chartered Company?
Answer:
Chartered companies are established by the King or Queen of a country. The powers and privileges of the chartered company are specified in the charter. Power to cancel the charter is, vested with King/Queen. Companies Act does not apply to them. It cannot be started in India. E.g. East Indian Company, Standard Chartered Bank, Bank of England.

III. Short Answer Questions

Question 1.
What are the advantages of Companies? (Any 3)
Answer:
1. Large Capital:
A company can secure large capital compared to a sole trader or partnership. A large amount of capital is necessary for conducting business on a large scale.

2. Limited liability:
The liability of a shareholder is limited. In the case of a company limited by guarantee, his liability is restricted to the amount that he has guaranteed to contribute in the event of winding up of the company.

3. Transferability of Shares:
Transaction of shares between two individuals is easy. So there is the liquidity of the investment. Any shareholder can easily convert his shares into money by selling his shares.

Question 2.
What is meant by Private Company?
Answer:
A private limited company is a type of company which is formed with minimum of two shareholders and two directors, the minimum requirement with respect to authorised or paid-up capital of Rs. 1,00,000 has been omitted by the Companies (Amendment) Act, 2015 w.e.f. 29^th of May, 2015.

Another crucial condition of a private limited company is that it by its articles of association restricts the right to transfer its shares and also prohibits any invitation to the public to subscribe for any securities of the company.

Question 3.
What is meant by Government Company?
Answer:
A public enterprise incorporated under the Indian Companies Act, 1956 is called a government company. These companies are owned and managed by Central or the State government. 51% of the paid-up share capital of the company should be held by Central or state governments.

Question 4.
What is meant by Foreign Company?
A Foreign company means a company which is incorporated in a country outside India under the law of that country. After the establishment of business in India, the following documents must be filed with the Registrar of Companies within 30 days from the date of establishment:

1. A certified copy of the charter or statutes under which the company is incorporated or the memorandum and articles of the company translated into English.
2. The full address of the registered office of the company.
3. A list of directors and secretary of the company.
4. The name and address of any person resident of India who is authorised to accept, on behalf of the company, service of the legal process and any notice served on the company.

IV. Long Answer Questions

Question 1.
What are the contents of the Memorandum of Association?
Answer:
Meaning:
A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders.

Name Clause:
The name clause requires stating the legal and recognized name of the company. The company name is allowed to be registered if it does not bear any similarities with the name of an existing company only.

Situation Clause:
The registered office clause requires to ‘ show the physical location of the registered
office of the company. It is required to keep all the company registers in this office. The registered office should be established prior to commencing business activities.

Objective Clause:
The objective clause requires summarizing the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. The objectives should be free of any provisions or declarations that contravene laws or public good.

Liability Clause:
The liability clause requires stating the extent to which shareholders of the company are liable to the debt obligations of the company in the event of the company dissolving. There are companies limited by shares and limited by guarantee.

Capital Clause:
The capital clause requires to state of the company’s authorized share capital, the different categories of shares, and the nominal value (the minimum value per share) of the shares. It is also required to list the company’s assets under this clause.

Association Clause:
The association clause confirms that shareholders bound by the MOA are willingly associating and forming a company. It is required seven members to sign an MOA for a public company and not less than two people for an MOA of a private company. The sighing must be done in the presence of witnesses who must also append his signature.

Question 2.
What are the contents of the Articles of Association?
Answer:
Contents of Articles of Association (AOA):

1. Amount of shares, capital, value, and type of shares.
2. Rights of each class of shareholders regarding voting, dividend, the return of capital.
3. Rules regarding the issue of shares and debentures.
4. Procedures as well as regulations in respect of making calls on shares.
5. Manner of transfer of shares.
6. Declaration of dividends.
7. Borrowing powers of the company.
8. Rules regarding the appointment, remuneration, removal of directors.
9. Procedure for conducting proxy, quorum, meetings, etc.,
10. Procedures concerning the keeping of books and audits.
11. Seal of the company.
12. Procedures regarding the winding up of the company.

Question 3.
What is meant by Prospectus?
Answer:
Meaning:
A prospectus is “the only window through which a prospective investor can look into the soundness of a company’s venture”. Hence it must specify at least the following matters as per Schedule II:

• The prospectus contains the main objectives of the company, the name and addresses of the signatories of the Memorandum of Association and the number of shares held by them.
• The name, addresses and occupation of directors and managing directors.
• The number and classes of shares and debentures issued.
• The name and addresses of the vendors of any property acquired by the company and the amount paid or to be paid.
• Particulars about the directors, secretaries and the treasures and their remuneration. ® The amount for the minimum subscription.

Question 4.
What is meant by a Multi-National Company?
Answer:
A Multi-National Company (MNC) is a huge industrial organisation which:

1. Operates in more than one country.
2. Carries out production, marketing, and research activities on an international Scale in those countries.
3. Seeks to maximize profits the world over.
4. Examples: Micro Soft Corporation, Nokia Corporation, Nestle, Coca – Cola, International Business Machine, Pepsico, Sony Corporation.

Question 5.
What is meant by a Holding and Subsidiary company?
Answer:
Holding Company:
A company is known as the holding company of another if it has control over that company. The following are the circumstances under which a company becomes a holding company.

• A company which controls the composition of the Board of directors of a company.
• A company which holds the majority of shares in company and
• A company which is a subsidiary of another company.

Subsidiary Company:
“Subsidiary company” or “Subsidiary”, in relation to any other company means a company in which the holding company.
controls the composition of the Board of Directors; or exercises or controls more than one half of the total share capital either at its own or together with one or more of its subsidiary companies:
Examples:
H Ltd. holds more than 50% of the equity share capital of S Ltd. Now H Ltd. is the holding company of S Ltd., and S Ltd. is the subsidiary of H Ltd.

Samacheer Kalvi 11th Commerce Hindu Undivided Family and Partnership Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
The maximum number of members in a private limited company is ……………..
(a) 25
(b) 50
(c) 100
(d) 200
Answer:
(d) 200

Question 2.
…………….. is considered as an artificial person.
(a) Sole trader
(b) Joint Hindu family business
(c) Joint-stock company
(d) Co-operative society
Answer:
(c) Joint-stock company

Question 3.
A new class of company is of “One Person Company” and it is included in …………….. Act.
(a) 1956
(b) 1952
(c) 2013
(d) 2015
Answer:
(c) 2013

Question 4.
One share – one vote principle is followed in ……………..
(a) Company
(b) Partnership
(c) Cooperative
(d) Sole trading concern
Answer:
(a) Company

Question 5.
…………….. companies are established by a Special Act made in Parliament/State Assembly.
(a) Chartered
(b) Statutory
(c) Private
(d) Unlimited
Answer:
(b) Statutory

Question 6.
East India Company is an example of …………….. companies.
(a) Chartered
(b) Statutory
(c) Public
(d) Private
Answer:
(a) Chartered

Question 7.
The share capital of the government company must not be less than ……………..
(a) 75%
(b) 60%
(c) 95%
(d) 51%
Answer:
(d) 51%

Question 8.
…………….. company operates in more than one country.
(a) Multinational
(b) Foreign
(c) Domestic
(d) Private
Answer:
(a) Multinational

Question 9.
…………….. is a document containing rules and regulations for the internal management of a company.
(a) Table A
(b) Memorandum
(c) Prospectus
(d) Statutory declaration
Answer:
(a) Table A

Question 10.
…………….. is “the only window through which a prospective investor can look into the soundness of a company’s venture”.
(a) Prospectus
(b) Memorandum
(c) Articles
(d) Minutes
Answer:
(a) Prospectus

II. Very Short Answer Questions

Question 1.
What is Perpetual succession?
Answer:
A company does not cease to exist unless it is specifically wound up or the task for which it was formed has been completed. Membership of a company may keep on changing from time to time but that does not affect the life of the company.

Question 2.
What is a Common seal?
Answer:
A company is an artificial person and does not have a physical presence. Thus, it acts through its Board of Directors for carrying out its activities and entering into various agreements. Such contracts must be under the seal of the company. The common seal is the official signature of the company.

Question 3.
What is a Domestic company?
Answer:
A company which cannot be termed as a foreign company under the provision of the Companies Act should be regarded as a domestic company.

Question 4.
What is the Situation clause?
Answer:
The registered office clause requires you to show the physical location of the registered office of the company. You are required to keep, all the company registers in this office in addition to using the office in handling all the outgoing and incoming communication correspondence.

Question 5.
What is the Objective clause?
Answer:
The objective clause requires you to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. You also need to state ancillary objectives; that is, those objectives that are required to facilitate the achievement of the main objectives.

III. Short Answer Questions

Question 1.
What is meant by Joint and Several Liability?
Answer:
Every partner is jointly and severally liable for all acts of the firm. It means that in case the assets are inadequate for meeting the claims of creditors, even their personal properties should be made available. The creditors can recover their claims from all the partners.

Question 2.
What do you mean by Company limited by Guarantee?
Answer:
A company limited by guarantee is a company in which the liability of its members is limited by its memorandum to such an amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up. Such companies are generally formed for the promotion of Commerce, Art, Science, Religion, Charity or any other useful object. The companies limited by guarantee may be either private companies or public companies.

Question 3.
What do you mean by Holding Companies?
Answer:
As per Section 2(87) “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company –

1. Controls the composition of the Board of Directors; or
2. Exercises or controls more than one – half of the total share capital either at its own or together with one or more of its subsidiary companies.

Case Study

Case 1:
Ashok is an industrial designer by training. He had the opportunity to learn the technology of fiberglass manufacture while he was in Germany for his training. He plans to set up a plant for the manufacture of fiberglass in India and is able to interest some financiers and technologists. It is estimated that the initial investment in the plant will be of the order of ₹ 50 lakhs. Ashok and others decide to set up a company for this purpose. Should they set up a public limited company for the purpose? If so, how should they go about it? If not, what alternative would you suggest? What formalities will be required of Ashok and his associates if they choose the alternative form of organization suggested by you?
Answer:
1. If he and his friends selected to start a public limited company. They can start with more formalities.

• Issue of prospectus
• Huge capital
• Shares can be issued and substituted in a huge level of capital (i.e. Authorized capital)
• Minimum 7 members to start a public company.
• Maximum limit
• The public company does not restrict the right to transfer its share

2. If he decides to start a private limited company, my suggestions are as follows

• Investment arranged privately with his friends
• He can collect capital with limited capital
• A private company cannot issue prospectus
• One person company also can start, but the capital of initial investment can be arranged privately.

Case 2:
Collect any 10 items of daily use (Packed items) and list the names of the companies manufacturing those items. Classify those companies as public and private limited companies. Which of them are Multinational Companies?

Edible items:

1. Milk – AAVINFSSAT, Chennai – 98.
2. Tea powder – Brook Bond – Red Label
   Hindustan Unilever Ltd., (HUL)
   Mumbai – 400099
3. Bread – Modem Foods Enterprises Private Ltd.
   Haryana, India – 122002
4. Biscuit – Britannia Industries Ltd., Chennai.

Other uses:

1. Toothpaste – Anchor Health & Beauty Care Private Ltd.,
2. Tooth Brush – Uttarkhand – 249404
3. Soap – Hamam
   Hindustan Unilever Limited
   Himachal Pradesh – 174103
4. Detergent powder – Ariel – The Procter & Gamble
   Home Products Private Ltd.,
   Mumbai – 400099
5. Shampoo – Oriflame,
   Oriflame India Private Ltd.,
   New Delhi – 110076
6. Hand wash – Cosmic Product Private Ltd.,
   Palghar (E) – 401404.