Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

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

1. (B) Match the pairs

Question 1.

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

Answer:

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

Question 2.

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

Answer:

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

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

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

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

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

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

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

1. (E) Complete the sentence

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

1. (F) Select the correct option

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

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

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

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

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

1. (H) Answer in one sentences

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

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

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

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

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

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

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

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

2. Explain the following terms /concept.

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

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

Question 2.
Liberalization.
Answer:

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

Question 3.
Privatization.
Answer:

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

Question 4.
Globalisation.
Answer:

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

Question 5.
Social environment.
Answer:

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

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

Question 7.
Political environment.
Answer:

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

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

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

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

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

  1. Legal environment
  2. Natural environment
  3. Social environment
  4. Political environment
  5. Economic environment

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

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

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

  1. Political environment
  2. Technological environment
  3. Economic-environment

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

4. Distinguish between the following

Question 1.
Social Environment and Economic Environment.
Answer:

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

Question 2.
Political Environment and Legal Environment.
Answer:

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

Question 3.
Liberalization and Privatisation.
Answer:

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

Question 4.
Globalization and Liberalization.
Answer:

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

Question 5.
Privatization and Globalization.
Answer:

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

5. Answer in brief.

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

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

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

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

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

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

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

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

6. Justify the following statements.

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

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

Question 5.
Social trends provide business opportunities.
Answer:

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

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

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

7. Attempt the following

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

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

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

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

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

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

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

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

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

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

8. Answer the following

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

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

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

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

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

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

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

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

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

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

Maharashtra Board OCM 11th Commerce Solutions Chapter 7 Business Environment

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

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

Liberalisation policy has brought about the following measures:

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

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

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

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

The government of the country has followed a disinvestment policy.

Disinvestment means:

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

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

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

Features of Globalisation:

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

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

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 8 Social Change Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 8 Social Change

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Social change as a term is ………………
(value loaded / ethically neutral / prejudiced)
Answer:
Ethically neutral

Question 2.
The effects of an earthquake on people is a ………………. factor of change.
(geographical / biological / cultural)
Answer:
geographical

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

Question 3.
The study of sex ratio is a ………………. factor of change.
(biological / technological / natural)
Answer:
biological

Question 4.
The slum rehabilitation programme within a city is an example of ………………… social change.
(planned / unplanned / revolutionary)
Ans.
planned

1. (B) Correct the incorrect pair.

Question 1.
(a) Earthquake – Biological
(b) Fundamentalism – Economic
(c) Growing Urbanization – Technological
(d) E-governance – Physical
Answer:
(b) Fundamentalism – Socio – cultural factor

1. (C) Identify the appropriate term from the given options.

(Physical Factor, Educational Factor, Economic Factor)
Question 1.
Impact of rising sea water level on coastal regions.
Answer:
Physical factor

Question 2.
Creating awareness about the problem of sexual abuse.
Answer:
Educational factor

1. (D) Correct the underlined words and complete the sentence.

Question 1.
Social change is a linear process.
Answer:
Social change is a continuous process.

Question 2.
All teachers are expected to think about how they will teach a unit in the classroom. This is an example of unplanned change.
Answer:
All teachers are expected to think about how they will teach a unit in the classroom. This is an example of planned change.

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

2. Differentiate between.

Question 1.
Planned change and unplanned change.
Answer:

Planned change Unplanned change
(i) Planned change occurs when purposeful changes are promoted by the government or other agencies. (i) Unplanned change is a type of changes that is not planned. It happens suddenly.
(ii) In the case of planned cities in India, they have definite spaces marked for residence, parks, grounds, places of worship so on; the five years plans, educational plans, tribal welfare programmes, etc. (ii) In the case of natural disaster, there is a loss of human and animal lives as well as property. Rehabilitation programmes have to be immediately designed and implemented for the affected persons.
(iii) Planned change occurs when deliberate decisions are taken to bring change. (iii) Unplanned change is a result of unforeseen occurrences.
(iv) Planned social change is based on directions and goals. (iv) Unplanned social change occurs without any directions or goals.

Question 2.
Short-term change and Long-term change.
Answer:

Short-term change Long-term change
(i) Some social changes which may bring about immediate results are known as short-term change (i) Some social change which may take years or decades to produce results are known as long-term change.
(ii) The purchase of new gadgets like home theatre for the purpose of entertainment within the home is rapid. (ii) Giving up social evils like dowry, early marriage or domestic violence take decades to get rid of.
(iii) Short term change is change in material culture. (iii) Long term change is change in non¬material culture.
(iv) Technological changes such as inventions and discovery play important role in bringing short term changes. (iv) Social movements and revolutions play important role in bringing long term changes.

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

3. Explain the following concept with an example.

Question 1.
Social change is interactional chain reaction
Answer:
1. A single factor may trigger a particular change, but it is almost associated with other factors like physical, biological, technological, cultural, social, economic, which may together bring about a social change.

2. This is due to mutual interdependence of social phenomenon.
Example : A huge increase in school fees will have an impact on student enrolment. It may further result in higher dropouts especially for the girl child from the system of school. Increase in school fees is an economic factor which may give rise to social factor like problems of girls dropout.

Technological factor of social change:

  1. Today, as we live in a digitalized world, we have been increasingly loaded with technology from our homes to our workplace.
  2. Technological changes have affected our social, economic, religious, political, and cultural life.
  3. Technological development creates new conditions of life and new conditions for adaptation. It continues to be an index of the overall progress of society.

Example : During the British period in India, systems of transportation and communication were laid. These may have served the needs of colonizers then, but we still continue to benefit from the systems.

Dysfunctional of social system:

  1. The social system may become dysfunctional at times.
  2. Hence, human beings have to make conscious efforts to help bring stability, balance and equilibrium in society.

Example : Emile Durkheim makes reference to anomic suicide where there is a state of normlessness or chaos, which can trigger off suicidal feelings that makes the social system dysfunctional.

Change in performance of social roles of individuals is also social change:

  1. The social system comprises of social institutions like education, government, economy, etc., they regulate human contact, allocate roles and provide resources.
  2. Social change also refers to change in performance of social roles of individuals according to changing times.

Example : In today’s Information Age, the role of a teacher in school is radically different than it was during the early Vedic period. There was marked differences in terms of the size of the school, learners, content of education, educational philosophy, methods of teaching and evaluation, etc.

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

Question 2.
Long term change

4. (A) Complete the concept maps.

Identify the significant factor of change for each.
Question 1.

inventions ——–
Effects of earthquake ——–
Declining sex ratio ——–
Student exchange programme ——-
Cultural diffusion ——–
Materialism ——–

Answer:

inventions Technological factor
Effects of earthquake Physical factor
Declining sex ratio Biological factor
Student exchange programme Educational factor
Cultural diffusion Socio – cultural factor
Materialism Economic factor

4. (B) State whether the following statements are true or false with reasons.

Question 1.
Prejudice and fear of the unknown is an obstacle to change.
Answer:
This statement is True.

  1. Sometimes people are not open to change as they are too comfortable within their life.
  2. Sometimes people don’t perceive the need to change prejudice or attitude towards a change also becomes obstacles.
  3. Fear of unknown leads people to avoid difference.
    Hence, prejudice and fear of unknown is an obstacle to social change.

Question 2.
Social changes can be predicted accurately.
Answer:
This statement is False.

  1. The concept of social change involves a transition in society from one state to another through time. The change depends upon complex factors. Hence social change cannot be predicted accurately.
  2. Social change is not instant; it takes place over time. There is no inherent law of social change.
  3. The forces of social change may not remain the same and the process of social change does not remain uniform.

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

5. Give your personal response.

Question 1.
Do you think people do not accept change easily? Why?
Answer:
Yes, I think people do not accept change easily. Customs and traditions which are embedded in society do not allow people to accept new ideas and acts as an obstacle to social change. Sometimes lack of motivation or interest also causes hindrance to social change. Even though social change is universal, there are more often some quarters of resistance to change.

Question 2.
Do you think the Swachh Bharat Abhiyan has had a positive impact on society? Justify your response.
Answer:
The physical environment has also been adversely affected by human behaviour in the name of development. In this era of global warming and climate change, everyone is striving towards a clean and safe India. The campaign of clean India, i.e., the Swachh Bharat Abhiyan is the biggest step taken over as a cleanliness drive and has a huge possible impact on society.

11th Sociology Digest Chapter 8 Social Change Intext Questions and Answers

ACTIVITY (Textbook Page No. 83)

Question 1.
Do a Google search for ‘Punk Hairstyle’.
Answer:
Relate ‘Punk Hairstyle’ to cultural change in society. The inspiration for the hairstyle came from the punk rock music in the 70’s. People have long been in the practice of using hair dyes to change the colour of their hair as a means of making themselves more attractive. Punks use hair dyes to make themselves appear different from mainstream society. One of the most common punk hairstyles is the Mohawk and use of bright colours on the hair.

Question 2.
You have learnt about the physical factor of social change. Now, write one page about how the natural calamities affect the life of people and society by giving some suitable examples. (Textbook Page No. 86)
Answer:
Natural disaster in India, cause massive losses of life and property. Droughts, cyclones, landslides pose greatest threat. Landslides are common in the lower Himalayas. Parts of Western Ghats also suffer from low intensity landslides. Floods are the most common natural disaster in India. The heavy southwest monsoon rain causes the Brahmaputra and other rivers to over-cross their banks, often flooding the surrounding areas. The floods kill and displace many. Temperatures in three Indian cities of Chennai, Mumbai and Delhi in the last five decades have seen a steady rise. This rise in temperature has led to a higher incidence of natural disaster storms, floods and drought, which have increased. The cost of damages has gone up. The latest cyclone Vayu in Gujrat have led to widespread devastation along parts of the eastern coast of India.

Question 3.
Try to understand the meaning of globalisation and observe changes brought about by globalisation in the world around you. (Textbook Page No. 88)
Answer:
Globalization is a process of integrating a country’s economy with the world economy with a view to exploit global opportunities for local growth. Globalization has resulted in both advantage and disadvantage for the Indian society. On one hand it has promoted the process of industrialization but on the other small-scale industries are the worst affected by the entry of large-scale multinational companies. Though globalization has increased the export of Indian industrial and agricultural products, there are lot of hindrance in path of export.

Globalization has led to new and better employment opportunities but there has been also a negative impact of globalization on the employment situation in India, since it has to shift many of its workers from the organized sector to the unorganized sector of Indian economy. It has promoted international travel and tourism leading to cultural exchange.

Maharashtra Board Class 11 Sociology Solutions Chapter 8 Social Change

Question 4.
You have understood the importance of technological factor of social change. Now, try to collect the data from ten families in your neighbourhood, about the use of modern technology in their day-to-day life. (Textbook Page No. 89)
Answer:
Students should attempt this question on their own.

Question 5.
Study the educational transformation in the last 10 years e.g., Teach for India campaign (Textbook Page No. 90)
Answer:
Teach for India campaign have transformed the lives of children in low-income communities.
They have re-imagined education by being holistic and differentiated such that every single child learns and grows to his or her fullest potential. 37,920 children have learned across Teach for India classrooms; They are committed to a singular goal – an excellent education for all children. Teach for India is striving to end the problem of educational inequality in India.

Question 6.
Trace changes in fashions and eating habits followed by teenagers in the past decade. Make a pictorial album or photo essay to show the changes. (Textbook Page No. 91)
Answer:
Students should attempt this question of their own.

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

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

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

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

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

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

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

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

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

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

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

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

1. (B) Match the pairs

Question 1.

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

Answer:

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

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

Question 1.
Life blood of business.
Answer:
Finance

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

Question 3.
Advisor and mentor for MSMEs
Answer:
SIDBI

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

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

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

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

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

1. (D) State True or False

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

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

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

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

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

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

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

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

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

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

1. (E) Complete the sentences

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. (F) Select the correct option

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

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

Answer:

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

1. (G) Answer in one sentence

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Explain the following terms/concepts

Question 1.
Udyami Mitra.
Answer:

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

Question 2.
KVIC.
Answer:

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

Question 3.
World Bank.
Answer:

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

Question 4.
Self Help-Groups
Answer:

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

Question 5.
Collateral Free Loan
Answer:

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

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

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

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

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

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

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

4. Answer in brief

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5. Justify the following statements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  1. The World Bank work with governments, communities, civil societies, private sectors and the marginalized for the cause of social development.
  2. Social development promotes economic growth and leads to higher quality of life.
  3. The World Bank work on social development, brings voices of the poor and vulnerable into development process.
  4. World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis,
  5. Thus, World Bank plays a vital role in social development.

6. Attempt the following

Question 1.
State the different forms of finance provided by SIDBI.
Answer:
SIDBI offers the following finance facilities to its customers:

  1. Direct Finance : SIDBI offers direct financing to the MSMEs through financing Working Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Schemes etc.
  2. Indirect Finance : SIDBI offers indirect assistance by providing refinance to banks, State Level Financial Institutions, etc. with an extensive branch network across the country.
  3. Micro Finance : SIDBI offers micro-finance to small businessmen and entrepreneurs for establishing their business.

Question 2.
State the role of SIDBI in sustainable development.
Answer:
Role of SIDBI in sustainable development:

  1. SIDBI helps MSMEs in creation of economic wealth while preventing ecological wealth of the country.
  2. It promotes the culture of energy efficient and sustainable finance.
  3. It takes initiative to enhance awareness of benefits of climate control amongst MSMEs.
  4. It focuses on lending schemes, promoting investments in clean production and energy efficient technologies.
  5. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

Question 3.
Explain the role of NABARD in financing rural industries.
Answer:
Role of NABARD in financing rural industries:

  1. It plays an important role in providing refinance to small scale industries and other village and cottage industries.
  2. It provides loans to commercial and co-operative banks to promote rural employment.
  3. It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 4.
Explain the objectives of KVIC.
Answer:
Objectives of KVIC are:

  1. The objectives of KVIC are broadly classified into three, i.e. social objective, economic objectives and wider objective.
  2. Through social objective, KVIC aims at providing employment to the rural unemployed.
  3. Through economic objective, it tries to produce saleable articles which will give promotion to KVIC products.
  4. Through wider objective, it attempts to create self refinance amongst the poor and building a strong rural community spirit.

Question 5.
Explain the role of KVIC in employment generation.
Answer:
Role of KVIC in employment generation:

  1. Due to massive population growth agricultural sector is losing its ability to generate additional employment in rural areas.
  2. It is necessary to create employment opportunities for the fast increasing workforce in rural areas.
  3. Khadi and village industries are labour intensive in nature.
  4. The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.
  5. It also concentrates on the betterment of rural artisans and socio-economic weaker section of the society.

Question 6.
Explain in detail democratic setup in SHGs.
Answer:
Democratic set up in SHGs:

  1. SHG is group of the members, for the members and by the members.
  2. It is the group which reflects the people’s real participation in the process of development.
  3. Every member of the group actively participates in the functioning of SHGs.
  4. Members are responsible for their own future by organizing themselves into SHGs.
  5. They elect or select leader for proper functioning of the group.
  6. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

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

Question 7.
Explain organizational structure of World Bank.
Answer:
Organizational Structure of World Bank:

  1. The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members.
  2. Board of Governors is the supreme policy making body of the bank.
  3. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country.
  4. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

7. Answer the following

Question 1.
Write important features of SIDBI.
Answer:
Important features of SIDBI are as follows:
(i) Sustainable Development : SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

(ii) Nodal/Implementing Agency : SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in upgradation, modernization and expansion of business.

(iii) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.

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

(v) Forms of Finance : SIDBI offers the following facilities to its customers:

  • Direct Finance
  • Indirect Finance
  • Micro Finance

(vi) Digital Initiatives:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks at one platform. It helps in financing and development of new entrepreneurs. It also works as knowledge partner for State and Central Government.

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

(vii) Achievement of National Goals : SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in MSME sector. It promotes entrepreneurship among women and economically weaker section of the society.

(viii) Services of MSMEs : SIDBI provides different types of financial and non financial services through its associates and subsidiaries. These associates and subsidiaries are as follows:

  • SIDBI Ventures Capital Ltd.
  • Credit Guarantee Fund Trust for Micro and Small Enterprises
  • SME Rating Agency of India Ltd.
  • India SME Technology Services Limited
  • India SME Asset Reconstruction Company Ltd.
  • Micro Units Development & Refinance Agency

Question 2.
Write important features of NABARD.
Answer:
Important features of NABARD are as follows:
(i) Financing Rural Industries : It plays an important role in providing refinance for small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

(ii) Assistance to Financial Institutes : It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors implementation of developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations and development of human resources.

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

(iv) Credit for Rural Development: It takes initiative in development and promotion of different activities in rural area by providing funds to State government. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

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

(vi) Recommendations to Reserve Bank of India : It provides recommendations to Reserve Bank of India on issue of licenses to Co-operative Banks, opening of new branches by State Co-operative Banks and Regional Rural Banks.

(vii) Development of Nation: It plays an important role in the improvement of storage facilities for agricultural commodities by promoting development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in sustainable development of the country through Green, Blue and White revolution.

(viii) Supervision of Financial Institutes Engaged in Agricultural Finance :It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act, 1949. It can also undertake inspection of State Co-operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.

Question 3.
Write important features of KVIC.
Answer:
Important features of KVIC are as follows:
(i) Research and Development: To face the challenge of globalisation, KVIC has introduced a number of new products range like khadi denim jeans to cater the need of the market. The KVIC undertake trainings of sales staff for effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure genuineness of the khadi products. KVIC signed Memorandum of Understanding with National Institute of Design to provide design support, services in packaging, marketing, communication, publicity, disseminating materials and other design-related activities.

(ii) Other Functions : The KVIC is charged with the planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural area. It organizes training programme for artisans engaged in Khadi and Village Industries.

(iii) Marketing Promotion : In order to attract younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness and attraction amongst masses.

(iv) Financial Assistance : It finances the projects for rural industrialization and also provides for margin money by way of subsidy. There are provisions for higher rate of subsidies in case of beneficiaries of the weaker section, tribal areas and backward regions. KVIC also provides financial assistance to institutions and individuals for development and operation of Khadi and Village industries.

(v) Rural Development : The Khadi and Village Industries plays an important role in the development of Indian economy, particularly in the development of the rural areas. KVIC facilitates proper utilization of natural resources in rural India for generating income for the rural masses.

(vi) Employment Generation: Due to increasing workforce, it is necessary to create employment opportunities. KVIC are labour intensive in nature. The broader objective of KVIC is to promote non-farm employment opportunities in rural areas.

(vii) Entrepreneurship Development : KVIC helps to provide additional livelihood avenues to the village communities. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth.

Question 4.
Write important features of SHGs.
Answer:
Important features of SHGs are as follows:
(i) Formation : It is generally formed by NGO’s or team of the government. It is an informal group. It is recognized by the government and does not require any formal registration. SHGs have well-defined rules and by-laws, hold regular meetings and maintain records.

(ii) Membership : As per the National Urban Livelihood Mission at least 5 members are required. It is difficult to manage bigger group and members cannot actively participate. From one family only one person can become a member so that more families can participate. Mixed groups are generally not preferred.

(iii) Entrepreneurship Development : The poor individuals in rural area face scarcity of capital and managerial skills. SHGs provide them capital at low interest rate which give them opportunity to start micro enterprise. These micro enterprises use untapped manpower in the area which generates employment opportunities in rural area.

(iv) Collateral Free L oan: SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation is required to get loan. The rate of interest differs from group to group and it is little higher than the interest charged by banks. It ensures timely repayment of loans as all members of the group are responsible for collecting repayment amount from the members who borrowed the loan.

(v) Democratic Setup : SHG is group of members, for the members and by the members. It is the group which reflects the people’s real participation in the process of development. Members elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

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

(vi) Empowerment of Women : SHG is an emerging tool for socio-economic development of women all over the world. SHGs are working effectively in promoting women entrepreneurship. SHGs empower women by providing her knowledge, finance and opportunities.

(vii) Saving Habits : The SHG encourages small saving habits at regular interval among its members. The Self Help Group inculcates the thrift and savings habit among the members of each group.

(viii) Mutual Trust : Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts. Through mutual trust thousands of the poor and marginalized individuals are building their lives, their families and their society.

Question 5.
Write important features of World Bank.
Answer:
Important features of World Bank are as follows:
(i) Organisation and Structure : The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the loan Committee and the President and other staff members. Board of Governors is the supreme policy making body of the bank. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

(ii) Innovation and Entrepreneurship : Innovation and Entrepreneurship helps in higher productivity which leads to increased economic growth. It helps in creation of employment to eradicate poverty. Young and growth oriented companies contribute in employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models and opening new markets. The World Bank brings global experience, knowledge, research and investments to help client countries develop effective innovation and entrepreneurship ecosystems, such as policies, strategies, regulations and institutions that foster investments and jobs.

(iii) Financial Products and Services : World Bank provides low-interest loans, zero to low interest credits, and grants to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management.

(iv) Innovative Knowledge Sharing : World bank sponsors, host or participates in many conferences and forums on issues of development. It also collaborates with partners on many developing issues. It also takes effort to provide access to the best global expertise to the developing countries.

(v) Goals :
The world bank group has set 2 goals to be achieved by 2030.

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

(vi) Social Development : Social Development focuses on the need to ‘put people first’ in development process. The World Bank’s work on social development, brings voices of the poor and vulnerable into development.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Balbharti Maharashtra Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 5 Forms of Business Organisation – II Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 5 Forms of Business Organisation – II

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

Question 1.
Departmental Organisation is financed through …………………… appropriations made by the legislature.
(a) annual budget
(b) monthly budget
(c) quarterly budget
Answer:
(a) annual budget

Question 2.
A ………………. is an autonomous corporate body created by the special Act of the parliament or State legislature.
(a) Statutory corporation
(b) government company
(c) MNC
Answer:
(a) Statutory corporation

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 3.
A statutory corporation is answerable to ……………… or state assembly whosoever creates it.
(a) Parliament
(b) public
(c) employees
Answer:
(a) Parliament

Question 4.
In government company minimum …………………. % paid up capital is held by government.
(a) 51
(b) 41
(c) 31
Answer:
(a) 51

Question 5.
The shares of government company are purchased in the name of ………………
(a) President of India
(b) Chief Minister
(c) Defence Minister
Answer:
(a) President of India

Question 6.
Government on the advice of ………………… appoints auditor of government company.
(a) Comptroller and Auditor General of India
(b) auditor
(c) chartered accountant
Answer:
(a) Comptroller and Auditor General of India

Question 7.
A government company is a ………………… entity separate from the government.
(a) natural
(b) legal
(c) human
Answer:
(b) legal

Question 8.
……………… company has public accountability.
(a) MNC
(b) Private
(c) Government
Answer:
(c) Government

Question 9.
MNCs are powerful ……………….. entities.
(a) economical
(b) political
(c) social
Answer:
(a) economical

1. (B) Match the pairs

Question 1.

Group A Group B
(a) BHEL (1) Special Legislature
(b) Statutory Corporation (2) 49% paid up capital by Government
(c) Departmental Organisation (3) Service Motive
(d) Private Sector (4) Railway
(e) Public Sector (5) Profit motive
(6) 51% paid up capital by Government

Answer:

Group A Group B
(a) BHEL (6) 51% paid up capital by Government
(b) Statutory Corporation (1) Special Legislature
(c) Departmental Organisation (4) Railway
(d) Private Sector (5) Profit motive
(e) Public Sector (3) Service Motive

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

Question 1.
Organisations which are owned by individual or group of individuals.
Answer:
Private Sector Organisations

Question 2.
Organisations which are owned by government.
Answer:
Public Sector Organisations

Question 3.
The sector which aims at profit maximization.
Answer:
Private sector

Question 4.
The sector which aims at providing reliable services to customers.
Answer:
Public sector Organisation

Question 5.
Organisations which are owned, financed, managed and controlled by government or combination of governments.
Answer:
Public sector Organisation

Question 6.
The organisation which is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 7.
The oldest form of business organisation under public sector.
Answer:
Departmental Organisation

Question 8.
The organisation which performs it’s all activities as an integral part for government only.
Answer:
Departmental Organisation

Question 9.
The organisation which is financed through annual budget appropriations made by the legislature.
Answer:
Departmental Organisation

Question 10.
The organisation in which there is direct and absolute control of government over the enterprise.
Answer:
Departmental Organisation

Question 11.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions and duties.
Answer:
Statutory Corporation

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 12.
An organisation which is answerable to parliament or state assembly whosoever creates it.
Answer:
Statutory Corporation

Question 13.
An organisation which is not subject to the budget, accounting and audit controls by the government.
Answer:
Statutory Corporation

1. (D) State True or False

Question 1.
Private sector organisations are owned by individual or group of individuals.
Answer:
True

Question 2.
Public sector organisations are owned by government.
Answer:
True

Question 3.
Private sector aims at providing reliable services to customers.
Answer:
False

Question 4.
Public sector was undertaken as a part of industrial policy, 1956.
Answer:
True

Question 5.
Departmental organisation is the oldest form of business organisation under public sector.
Answer:
True

Question 6.
Departmental organisation performs its all activities separately from government.
Answer:
False

Question 7.
The Minister-in-charge of ministry is the head of departmental organisation.
Answer:
True

Question 8.
There is always problem of red tapism and bureaucracy in departmental organisation.
Answer:
True

Question 9.
There is large scope for the initiative and skill in departmental organisation.
Answer:
False

Question 10.
In departmental organisation there is flexibility in operations.
Answer:
False

1. (E) Find the odd word out

Question 1.
Indian Post, Indian Railway, Bank of India, Air India.
Answer:
Bank of India

Question 2.
Life Insurance Corporation, Reserve Bank of India, Bharat Heavy Electricals Limited, ONGC.
Answer:
Bharat Heavy Electricals Limited

Question 3.
Pepsi, Coca Cola, Dabur, Proctor & Gamble.
Answer:
Dabur

Question 4.
Tata Motors, Hindustan Aeronautics Limited, Steel Authority of India Limited, Gas Authority of India Limited.
Answer:
Tata Motors

1. (F) Complete the sentences

Question 1.
A Government company is a ………………… entity separate from the government.
Answer:
Legal

Question 2.
………………… is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 3.
A ………………… has defined powers, functions and duties.
Answer:
Statutory corporation

Question 4.
All government companies are registered under ………………… Act, 2013.
Answer:
Companies

Question 5.
MNCs are powerful ………………… entities.
Answer:
economical

1. (G) Answer in one sentence

Question 1.
What is Government Company?
Answer:
The Company which is registered under Companies Act, 2013 having minimum 51% of paid up share capital held by central government or any state government or partly by central government and partly by one or more state governments is known as Government company.

Question 2.
What is Departmental Organisation?
Answer:
It is the oldest form of business organisation. Departmental Organisation performs its all activities as an integral part for government only.

Question 3.
What is Statutory Corporation?
Answer:
Statutory Corporation is an autonomous corporate body created by the special act of the parliament or state legislature with defined powers, functions and duties.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 4.
What is Multinational Corporation?
Answer:
A multinational corporation is a business organisation that operates in many different countries at the same time.

Question 5.
What is Public Sector?
Answer:
Public sector organisations are those organisations which are setup by the government with the main object of providing essential services to the general public.

Question 6.
What is Private Sector?
Answer:
Private sector business which are owned by private individuals or group of individuals are termed as private sector organisation.

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

Question 1.
Statutory Corporation is a natural person created by Special Act.
Answer:
Statutory Corporation is an artificial person created by special act.

Question 2.
A Statutory Corporation is not answerable to parliament or state assembly.
Answer:
A statutory corporation is answerable to parliament or state assembly.

Question 3.
MNC have existence only in single country.
Answer:
MNC have existence in many countries.

Question 4.
Departmental Organisation has separate existence from government.
Answer:
Departmental Organisation has no separate existence from government.

Question 5.
Private sector aims at providing essential services to customers.
Answer:
Public sector aims at providing essential services to customers.

2. Explain the following terms/concepts

Question 1.
Public Sector Organisation.
Answer:

  1. It is owned, managed, controlled and financed by government.
  2. It includes – Departmental Organisation, Statutory Corporation and Government Companies.
  3. Its main objective is to provide services to society.
  4. It is managed by government officials or Board of Director.
  5. It is large in size and operates on large scale.

Question 2.
Private Sector Organisation.
Answer:

  1. It is owned, managed, controlled and financed by individuals or group of individuals.
  2. It includes – Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Company and Co-operative Society.
  3. Its main objective is to maximise profit.
  4. It is managed by the owner himself or by their elected representatives.
  5. It generally operate in industrial and commercial areas only.

Question 3.
Departmental Organisation.
Answer:

  1. It is owned, managed, controlled and financed by government.
  2. It is managed by government officials of concerned ministry.
  3. They do not have autonomy in decision making.
  4. They do not have separate legal entity distinct from government.
  5. It is funded through annual budget of the government.

Question 4.
Statutory Corporation.
Answer:

  1. It is formed under a Special Act of Parliament or State Legislature.
  2. It is managed by Board of Director who are appointed by the government.
  3. They enjoy autonomy in decision making.
  4. They have separate legal entity distinct from government.
  5. It is funded by the government initially and also in need of additional capital.

Question 5.
Government Company.
Answer:

  1. It is a company where 51% of the paid up capital is held by Central Government or State Government jointly or individually.
  2. It is managed by Board of Directors appointed by Government and Shareholders.
  3. It is formed and registered under Companies Act, 2013.
  4. They can borrow funds by issuing shares to the public or through debentures, deposits, etc.

Question 6.
Multinational Corporation.
Answer:

  1. It is a business organisation that operates in many different countries.
  2. It conducts business activities in more then one country.
  3. It is controlled through centrally located head office.
  4. They are also called as transnational or international corporations.
  5. Example : Bata India, Infosys, Tata Motors, etc.

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

1. There is X company in which capital contribution by different entities are as follows : Madhya Pradesh Government 35%, Maharashtra Government 35% and Government of India 30% of company.

Question 1.
Find out type of this company.
Answer:
‘X’ company is a Government Company.

Question 2.
Tell any two features of this company.
Answer:
Separate legal entity and Registration under the Companies Act, 2013 are the features of “X Government Company.

Question 3.
Give an example of this type of company.
Answer:
Hindustan Machine Tools (HMT), State Trading Corporation (STC), are the examples of the Government Company.

2. There is a company which is having a registered office in Singapore and such company is having branch offices in Varanasi (India) and Hambantota (Sri Lanka). This company provides cellular services to host countries through their respective branch offices.

Question 1.
Find out type of organisation.
Answer:
This type of organisation is called as Multinational Corporation.

Question 2.
Comment on it.
Answer:
Multinational Corporation means the companies which undertake business activities in more than one country. So this company is registered in Singapore and having branches in India and Sri Lanka.

Question 3.
Name the business organisation, which is self-financed, delegates authority and run by government as an integral part of it.
Answer:
It is a Departmental Organisation.

Question 4.
State any two merits of this organisation.
Answer:
No separate legal entity and Government employees are the merits of Departmental Organisation.

3. A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to legislature.

Question 1.
Which type of organisation is this?
Answer:
It is a Statutory Corporation.

Question 2.
Give any three Features of this organisation.
Answer:
Corporate body, No political interference, Own staffing system are the features of Statutory Corporation.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 3.
Give any one example of this type of organisation.
Answer:
“Life Insurance Corporation of India” is the example of Statutory Corporation.

4. Distinguish between the following

Question 1.
Private Sector Organisation and Public Sector Organisation.
Answer:

Private Sector Organisation Public Sector Organisation
(1) Meaning Private enterprises are owned managed, controlled and financed by individuals or groups of individuals. Thus, ownership and management is with private organisations. Public enterprises are owned, managed and controlled by the state on behalf of the people.
(2) Management It is managed by industrialists through board of directors and other specialized executives. It is managed by government officials or board of directors.
(3) Size of Entity They are usually of small or medium size depending on volume of operation. They are usually large in sized and they operate on large scale.
(4) Capital provider Capital is contributed by owner from their own resources and borrowings from financial institutions. The capital of public sector organisation is contributed by government.
(5) Decision making Decision making is quick as very few officials are involved in decision making process. Decision making is delayed due to bureaucratic hurdles.
(6) Business area It generally operates in industrial and commercial areas only. It operates in utility services areas like – railways, post, etc. and also in industrial and commercial areas.
(7) Main motive Main motive of private sector organisation is to earn a profit. Main motive of public sector organisation is to provide services to society.
(8) Flexibility They are more flexible in nature as their policies can be modified as and when the need arises. There is no flexibility in their operations as any change or modification requires the approval of thp Government.
(9) Political Interference In private enterprises, there is no political interference and therefore executive enjoys complete autonomy and freedom of operations. Public enterprises working is always affected by political interference. There is constant danger of undue interference by political parties and their leaders.
(10) Competition Private enterprises operate in cut throat competition. Public enterprises are generally monopolies or oligopolies (only two sellers in market.)
(11) Economic Equalities Private sector increases economic inequalities. Public Enterprises reduce economic inequalities.
(12) Regional Balance Private enterprise increase regional imbalance because it wants to enjoy the advantages of location of industries. Public enterprises tries to reduce the regional imbalance as it intends to bring about balanced regional development.
(13) Efficiency Private Enterprises are more efficient due to profit maximisation, division of labour and specialisation. Public enterprises lack initiative, flexibility and efficiency because profit motive is absent.
(14) Constituents Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Companies, Co-operative Society are different forms private sector. Departmental Organisation, Statutory Corporations and Government companies are types of public sector.

Question 2.
Departmental Organisation and Statutory Corporation.
Answer:

Departmental Organisatio Statutory Corporation
Meaning The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation. The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Management It is managed by government officials of the concerned ministry. It is managed by board of directors nominated by government.
Legal Status There is no separate legal status distinct from the government. Statutory company has a separate legal status distinct from the government.
Borrowing Power Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government. Statutory Company can borrow from public by issue of shares and debentures.
Control It is controlled by the concerned ministry. It is controlled by government by the Act of Parliament or State Legislature.
Capital Capital of departmental organisation comes from annual budget appropriations of the government. Capital for statutory company comes from Central or State Government.
Formation It is formed through Executive decision taken by the concerned ministry. It is formed by passing a Special Act in the Parliament or in the State Legislature.
Suitability It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc. It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Staff Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants. Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration.
Flexibility It has low flexibility in its operation. It has moderate flexibility in its operation.
Autonomy It does not have autonomy in decision making. It has autonomy in decision making.

Question 3.
Government Company and Multinational Corporation.
Answer:

Government Company Multinational Corporation
Meaning Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually. Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Capital The capital is contributed by the Central Government or State Government or even by general public. The capital is contributed by the shareholders or financial institutions in several countries.
Management and Control Government Company is managed by Board of Directors appointed by government and shareholders. Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country.
Establishment Government companies are formed and registered under provisions of Companies Act, 2013. Multinational corporations have to seek permission from the government and host countries.
Borrowing power Government companies can borrow funds by the way of debt or issuing shares to the public. Multinational corporation use resources of different countries.
Area of Operations Government company operates within the local boundaries of a nation. MNC operates in several countries, having headquarters in one country.
Motive Government companies are service oriented and hence take interest in the social welfare activities of the country. MNCs are profit motivated rather than service oriented.
Accountability Government Company has to take its annual reports in the Parliament where its working is discussed and debated. Though it has autonomy in financial matters, it is indirectly accountable to the publics. MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency They have to deal with single currency. They have to deal with multiple currencies and exchange rates.
Resource availability Government company uses resources of government and its employees are government employees and are permanent. MNCS use resources of different countries and their employees are on contract basis.
Trust and Public Confidence Government company enjoy more public confidence as they have government backing and support. MNCS do not have government backing and support in host countries.
Example Steel Authority of India Ltd., State Trading Corporation, Indian Oil Corporation, BHEL, HMT, etc. Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

Question 4.
Departmental Organisation and Multinational Corporation.
Answer:

Departmental Organisation Multinational Corporation
Meaning The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation. Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Management Departmental Organisation is managed by government officials of the concerned ministry. Multinational Corporation is managed by parent company. It manages affairs of the subsidiary from the respective home country.
Legal status There is no separate legal status distinct from the government. It has separate legal status.
Borrowing power Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government. Multinational corporation use resources of different countries.
Control Departmental Organisations are controlled by the concerned ministry. Multinational corporations are controlled by respective parent companies and mostly home strategic.
Capital Capital of the Departmental Organisation comes from annual budget appropriations of the government. The capital is contributed by the shareholders or financial institutions in several countries.
Ownership Departmental undertaking is fully owned by the Government. Ownership of MNC is in hands of shareholder’s of the company.
Privileges & Concessions It receives highest government concessions and privileges. MNC do not have any concessions. They have to pay duties and taxes.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 5.
Government Company and Statutory Corporation.
Answer:

Government Company Statutory Corporation
Meaning Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually. The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Capital The capital is contributed by the Central Government or State Government or even by general public and financial institutions. Capital for the statutory corporation comes from Central or State government.
Managemen Government Company is managed by Board of Directors appointed by government and shareholders. Statutory Corporation is managed by Board of Directors nominated by government.
Control These companies are controlled by government or shareholders. Statutory corporation is controlled by government by the Act of Parliament or State Legislature.
Establishment Government companies are formed and registered under provisions of Companies Act, 2013. The statutory corporation is established by special Act of the Parliament or State Legislature.
Borrowing power Government companies can borrow funds by the way of debt or issuing shares to the public. tatutory corporation can borrow from public by issue of bonds.
Privileges & Concessions It has no privileges and concessions by government. It enjoys moderate privileges and concessions.
Suitability It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc. It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Political Interference It has less political interference in management of company as it has its own Board of Director. It has more political interference as it is controlled by State and Central Government.
Flexibility Government companies are more flexible in operations of business. They can change line of business as per market trend. Statutory company are rigid in operations they are formed for the particular purpose.
Accountability It is accountable to public. It is accountable to State and Central Government.
Autonomy It has full autonomy as its incorporated under Companies Act, 2013. It has theoretical autonomy as its established with certain purpose by Central or State Government.

Question 6.
Departmental Organisation and Government Company.
Answer:

Departmental Organisation Government Company
Meaning The organisation which is owned, managed, controlled, financed and operated by Government is known as Departmental Organisation. Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.
Management Departmental Organisation is managed by government officials of the concerned ministry. Government Company is managed by Board of Directors appointed by government and shareholders.
Legal Status There is no separate legal status distinct from the government. A Government company has legal status separate from the Government.
Borrowing power Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government. Government companies can borrow funds by the way of debt or issuing shares to the public.
Control Departmental Organisations is controlled by the concerned ministry. These companies are controlled by government or shareholders.
Capital Capital of the departmental Organisation comes from annual budget appropriations of the government. The capital is contributed by the Central Government or State Government or even by general public and financial institution.
Formation It is formed through Executive decision taken by the concerned ministry. It is formed through registration under Companies Act, 2013.
Privileges & Concessions It receives highest government concessions and privileges. It has no privileges and concessions by government.
Suitability It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc. It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc.
Staff Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants. Employees can be recruited independently and it does not have to necessarily follow civil service rules.
Political Interference It has high political interference with regards to the management. As compared to departmental organisation it has less political interference.
Flexibility It is rigid in operations as its managed through officers of the government. It is more flexible in operations as managed by Board of Directors.
Motive It is majorly concern with providing service to the people. It is concern with giving with profit making and service to the people.
Accountability Highly accountability to the respective the Minister in charge as they render their service. Low accountability to the people as they render their service.
Autonomy There is no autonomy as its owned, managed controlled, financed by government. It has full autonomy as per provisions to Companies Act, 2013.

Question 7.
Statutory Corporation and Multinational Corporation.
Answer:

Statutory Corporation Multinational Corporation
Meaning The company which is formed under a Special Act of Parliament or State Legislature is known as Statutory Corporation. Multinational corporation is a company which is incorporated in one country and has business units in several countries.
Capital Capital for the statutory corporation comes from Central or State government. The capital is contributed by the shareholders or financial institutions in several countries.
Management Statutory Corporation is managed by Board of Directors nominated by government. Multinational Corporation is managed by parent company and it manages affairs of the subsidiary from the respective home country.
Control Statutory Corporations are controlled by government by the Act of Parliament or State Legislature. Multinational Corporations are controlled by respective parent companies.
Establishment The Statutory Corporation is established by Special Act of the parliament or State Legislature. Multinational Corporations have to seek permission from the Government and host countries.
Borrowing power Statutory company can borrow from public by issue of shares and debentures. Multinational Corporation use resources of different countries.
Area of Operations Statutory corporation operates within the local boundaries of a nation. Hence, the area of operations is not large. MNC operates in several countries, having headquarters in one country. Hence, the area of operations is large.
Motive Statutory Corporation are service oriented and hence take interest in the social welfare activities of the country. MNCs are profit motivated rather than service oriented. They render service in those areas where the opportunities for profit maximisation are more.
Accountability Statutory corporation has to take its annual reports in the Parliament where its working is discussed and debated. MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency They have to deal with single currency. They have to deal with multiple currencies and exchange rates.
Resource availability Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration. MNC’s use resources of different countries and their employees are on contract basis.
Trust and Public Confidence Statutory corporation enjoy more public confidence as they have government backing and support. MNC’s do not have government backing and support in host countries.
Example UTI, LIC, RBI, ONGC, Air India, etc. Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

5. Answer in brief

Question 1.
State any four features of Departmental Organisation.
Answer:
Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(ii) Organizational Structure : The internal organizational structure is of line type. The department is headed by minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.

(iii) Government Employees : The employees of departmental organization are civil servants and they are selected through Union Public Service Commission. Staff selection Board, Railway Recruitment Board etc. and as such they are treated as Government employees.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

Question 2.
State any four features of Statutory Corporation.
Answer:
Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(v) Independent Identity : They have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

Question 3.
State any two demerits of Multinational Corporation.
Answer:
Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) C reate Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) O utsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(iv) Misuse of Mighty Status : Multinational Corporations have powerful financial strength because of huge capital. They can afford to bear losses for a long while in the hope of earning huge profits. They have ended local competition and achieved monopoly. This may be unfair.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 4.
State any four merits of Government Company.
Answer:
Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(ii) Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers and so on.

(iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. Government always promotes public welfare.

(iv) Foreign Capital and Technical Know how : As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.

6. Justify the following statements

Question 1.
Departmental Organisations are run for providing public services.
Answer:

  1. Departmental Organisations are the oldest forms of public enterprises.
  2. Indian railways, post office, defence, All India Radio are the Departmental Organisations.
  3. Indian Railways give services to public.
  4. Main objective of Departmental Organisations is to provide services to public.
  5. Private sector aims at profit maximization while public sector aims to providing reliable services to customers.
  6. Thus, Departmental Organisations are run for providing public services.

Question 2.
There is direct control of Government on departmental organisation.
Answer:

  1. Departmental organisations are run by the Government.
  2. Departmental organisations are financed through annual budget of Government.
  3. Revenues of departmental organisation is directly paid to Government treasury.
  4. Departmental organisation has no separate existence from Government.
  5. The staff of enterprises is treated equally with other civil servants.
  6. Thus, there is direct control of Government on departmental organisation.

Question 3.
There is no political interference in statutory corporation.
Answer:

  1. A Statutory corporation is an autonomous corporate body.
  2. Statutory corporation is an artificial person created by law and it has an independent legal entity.
  3. Employees are not government servants.
  4. A statutory corporation enjoys financial autonomy or independence.
  5. A statutory corporation comes into existence by following particular act, therefore, there is no political interference in formation.
  6. Thus, all statutory corporations are free from political interference.

Question 4.
There is professional management in statutory corporation.
Answer:

  1. A statutory corporation is able to manage its affairs with independence and flexibility.
  2. Management of statutory corporation is done without any government interference.
  3. The statutory corporation is relatively free from red tapism.
  4. There is less file work and less formality to be completed before taking decisions.
  5. Board of directors of statutory corporation consists of business experts and the representatives of various groups such as labour, consumers, etc. who are nominated by the government.
  6. Thus, there is professional management in statutory corporation.

Question 5.
MNC helps to end local monopolies.
Answer:
Multinational corporation helps to end local monopolies.

  1. Multinational corporations lead to competition in the host countries.
  2. Local monopolies of host countries either start improving their products or reduces their prices.
  3. Multinational corporation put an end to exploitative practices of local monopolists.
  4. As a matter of fact, MNCs compel domestic companies to improve their efficiency and quality.
  5. Thus, MNC helps to end local monopolies.

Question 6.
MNC has worldwide existence.
Answer:

  1. As multinational corporation is operating on a global basis.
  2. Multinational corporation have marketing operations in several countries operating through a network and branches.
  3. They have production facilities in several countries.
  4. Advanced Technology and international business operations are done by MNC.
  5. It brings in much needed foreign capital for the rapid development.
  6. Multinational corporation integrate economies of various nations with the world economy.
  7. Thus, MNC has worldwide existence.

Question 7.
MNC has mighty economic powers.
Answer:

  1. As MNC is operating on a global basis, they have huge physical and financial assets.
  2. In terms of assets and turnover, many MNCs are bigger than national economies of several countries.
  3. Multinational corporations are powerful economic entities.
  4. Multinational corporation keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.
  5. Thus, MNC has mighty economic powers.

7. Attempt the following

Question 1.
Merits of Departmental Organisation.
Answer:
Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

2. Proper Use of Funds : The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concern ministry. Charges for misuse of funds are less in departmental organization.

3. Social Welfare : Government undertakes socio-economic activities to promote social welfare. Providing essential comlhodities to people at reasonable price is top priority of the state. Thus, socio-economic objectives are achieved with Government control.

4. Public Accountability : The concerned minister incharge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of this enterprises on behalf of public at large.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 2.
Demerits of Departmental Organisation.
Answer:
Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

Question 3.
Merits of Statutory Corporation.
Answer:
Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(iii) Efficient Staff : In Statutory Corporation, employees are given fair wages, better working conditions and proper training and development programs are initiated for the employees. As a result, employer-employee relations are very cordial and staff is highly motivated to perform better.

(iv) Motivated Staff: In Statutory Corporations, employees are given fair wages, better working conditions and proper training and development programmes are initiated for the employees. As a result, employer- employee relations are very cordial and staff is highly motivated to perform better.

Question 4.
Demerits of Statutory Corporation.
Answer:
Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iii) Rigid Structure : Though statutory corporation have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is difficult task. This reduces its flexibility.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

Question 5.
Features of Government Company.
Answer:
Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

Question 6.
Demerits of Government Company.
Answer:
Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(iii) Domination of Ministers and Politicians : The ministers of the concerned departments are in charge of the Government Company. In view of Government ownership, political interference is quite common. The Directors try to serve and achieve their political motives rather than realisation of business goals as they are nominated for political gains and not on merits.

(iv) Red Tapism and Delay : The bureaucratic management delays in taking decision and implementing. There is no time frame and the employees are not devoted. There is often delay in preparing various documents and forwarding the same for taking action. Thus, delay, red tape, corruption, avoidance of work and shirking from the responsibility is common sight in Government Company.

Question 7.
Features of Multinational Corporation.
Answer:
Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(ii) Legal Existence : MNCs are registered in their home country as per their laws and as such they enjoy separate legal status. It can sue and be sued, enter into contracts and own property in their own name.

(iii) Government: MNCs have to bring about the necessary changes in their functioning based upon the laws prevailing in the countries of their operations. For e.g. advertisement about various products on TV is given in local languages in India and in national language Hindi, to cover maximum target audience. In some cases they have to change the menu to suit local demands for e.g. McDonalds had to change its menu for its business in India.

(iv) Origin: The MNCs have origin in one country and the country to which they belong is called home country. The country in which they operate their business activities is called host country. These companies are registered in their home country and have a place of business in different countries of the world. The head office controls the operations of different branches through a network of internet. They also appoint their representatives in host countries for smooth business operations.

Question 8.
Merits of Multinational Corporation.
Answer:
Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iii) Promotion of International Brotherhood and Culture: MNCs integrate economies of various nations with the world economy and promote international brotherhood and culture with peace and prosperity in the world.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(v) Technical Development: Multinational corporations gives lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The research and development is undertaken for finding out new product, new system, and new technology of doing business in an economical way.

8. Answer the following in details

Question 1.
Explain Departmental Organization and its features.
Answer:
(A) Meaning:
Departmental organizations are oldest form of public enterprises. These are run by Government departments headed by a minister who guides and controls the activities of the undertaking e.g. Indian Railways, all India Radio, Indian Post, Defence etc. A Departmental organization is organized, financed and controlled by Government like any other Government department. Under this type of organization, no distinction is made between public sector and traditional Government functions.

(B) Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(ii) Organizational Structure : The internal organizational structure is of line type. The department is headed by minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.

(iii) Government Employees : The employees of departmental organization are civil servants and they are selected through Union Public Service Commission. Staff selection Board, Railway Recruitment Board etc. and as such they are treated as Government employees.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

(v) Useful for Secret: matters like defence, atomic energy, etc.

(vi) No Legal Status : A government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government. Thus, the above are the features of Departmental Organization.

(vii) Government Sanction for Expansion : Public Enterprises need to take the sanction of the Government for expansion and diversification of business or for changing the policies, etc.

(viii) Examples of Departmental Organisation : Ordinance factories, Railways, Broadcasting, Post and Telegraph, BHEL, Indian Drug and Pharmaceuticals Ltd. Hindustan Aeronautics Ltd. Army Clothing Factory, Gun Factory and so on.

(ix) Run by Government : Different procedures like accounting, auditing and budgeting are at par with Government department.

(x) Managed by Government : The Departmental organization is managed by Government officials of the concern ministry.

(xi) Accounting Control : The organisation is subject to accounting and audit procedures and controls as applicable to government departments or to the concerned ministry.

(xii) Accountability : The enterprise is funded by the government and hence the government controls its affairs. In other words, it is answerable to the Parliament.

(xiii) No Separate Legal Entity : A Government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 2.
Explain merits and demerits of Departmental Organization.
Answer:
(A) Meaning:
Departmental organizations are run by the Government departments headed by a minister who guides and controls the activities of the undertaking.

(B) Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

2. Proper Use of Funds : The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concern ministry. Charges for misuse of funds are less in departmental organization.

3. Social Welfare : Government undertakes socio-economic activities to promote social welfare. Providing essential comlhodities to people at reasonable price is top priority of the state. Thus, socio-economic objectives are achieved with Government control.

4. Public Accountability : The concerned minister incharge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of this enterprises on behalf of public at large.

5. Maintain Secrecy: In matters of strategic, national importance, secrecy is essential and confidentiality can be maintained in certain business activities such as defence deals, atomic plants, drugs and pharmaceuticals etc.

6. Easy Formation : These organisations are very easy to form. They do not require any special statute or registration.

7. Direct Control: These organizations are properly managed and supervised by the qualified Government Staff Minister at the top is responsible to the Parliament for its operations.

8. Direct Revenue to Government : The revenue of departmental organizations directly goes to the jr Government treasury.

9. Less Overheads : The administrative expenses are less as government only operate it.

10. Easy Finance : These organisation get the required finance by the government through direct allocation of funds from the concerned ministry.

11. Development of Public Utilities : The departmental organisation provides public utilities or basic r necessities. People require essential services and products such as Railways, Transport and Communications, Telephone services, etc. Thus, essential services are made available by the Government department at a very reasonable rate.

(C) Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

(vi) Lack of Flexibility : The Departmental organization lacks flexibility in decision making. This is because there is centralization of authority.

(vii) Incurring Losses/Huge Losses : Most of the government undertakings incur heavy losses due to lack of business skills and approach as they are not professional.

(viii) Absence of Professionalism : There is lack of professionalism in the management of departmental organization. Often the decisions are taken unsystematically, moreover the data collected is often out dated and there is no proper analysis of such data. Hence, the decisions are taken hastily.

(ix) Political Interference : The Ministers, bureaucrats, Government officials interfere in the day to day working of the undertaking.

(x) Red Tapism and Bureaucracy : The Departmental organisations are controlled by government. Departmental organisations are facing delays, red tapism, corruption, lack of initiative, bureaucracy, etc.

(xi) Insensitive to Consumer Needs : The officials of this organisation are insensitive to the needs of consumers. The officials are not bothered about consumer needs and consumer satisfaction as they are more worried about their security of service in view of monopolistic position.

(xii) Lack of Autonomy : Departmental organisation lack autonomy and freedom in working and decision making.

Question 3.
Explain Statutory Corporation and its features.
Answer:
(A) Meaning:
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.
Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(v) Independent Identity : They have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(vi) Special Act : They are established under a special Act passed by the Parliament. Its objectives, powers 98and functions are regulated by the Act.

(vii) Corporate Body : Statutory Corporation is a corporate body. It has a separate legal entity distinct from its members and thereby can enter into contracts and acquire property on its own name.

(viii) Answerable to the Legislature : A statutory corporation is answerable to Parliament or State Assembly whomsoever creates it. Parliament has no right to interfere. Though the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(ix) Legal Status : As a body corporate, it has a separate legal entity, distinct from its members and thereby can enter into contracts and acquire property in its own name.

(x) Independent Accounting System : They are not subject to budget accounting and audit laws and procedures applicable to government departments. But financial reports are placed in the Parliament for discussion.

(xi) Public Accountability : It’s accounts are audited by the Comptroller and Auditor General of India. Its annual reports and results are placed in Parliament or Legislative Assembly for discussion and hence answerable for their working and results to the Parliament.

(xii) Objective : It is service oriented and not profit oriented. It works efficiently to earn profit which is used for its day to day functioning.

Question 4.
Explain merits and demerits of statutory corporation.
Answer:
(A) Introduction
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.

Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(iii) Efficient Staff : In Statutory Corporation, employees are given fair wages, better working conditions and proper training and development programs are initiated for the employees. As a result, employer-employee relations are very cordial and staff is highly motivated to perform better.

(iv) Motivated Staff: In Statutory Corporations, employees are given fair wages, better working conditions and proper training and development programmes are initiated for the employees. As a result, employer- employee relations are very cordial and staff is highly motivated to perform better.

(v) Service Motive : They are formed to provide public utility services and promote consumer satisfaction. It provides essential commodities to people at reasonable rates.

(vi) Easy to Raise Capital : Being owned by government, these corporations can raise required funds by floating bonds at low rate of interest.

(vii) Administrative Autonomy : Due to administrative and financial autonomy, statutory corporation take quick decisions and are flexible in its policy framing and working as per the changing business needs.

(viii) Public Accountability : These organisations enjoy public accountability, flexibility and autonomy in its working. The accounts are audited by Comptroller and Auditor General of India and final accounts are tabled before Parliament or Legislature.

(ix) Initiative and Flexibility : Statutory Corporation have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(x) Enjoys Economies of Scale : As these organisations are large scale undertakings which promote social welfare, it enjoys economies of large scale business operations.

(xi) Creates Employment Opportunities : Statutory organisations generate employment opportunities for the people at large. LIC, ONGC, Air India and others employ lakhs of people in the country. This reduces government burden of providing jobs to teeming millions and as such they help government.

(xii) Enjoy Monopoly : Most of statutory organisations are monopolistic or semi-monopolistic in their areas of functioning.

(C) Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iii) Rigid Structure : Though statutory corporation have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is difficult task. This reduces its flexibility.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

(v) Unfair Practices : Before 1991, these corporations enjoyed monopolistic and semi monopolistic position. They were charging high prices from the consumers to cover up their inefficiencies. After 1991, due to liberalization, most of them lost their monopolistic position but skill, in practice the lack competition as they are not aware of consumer needs.

Question 5.
Explain Government Company and its features.
Answer:
(A) Meaning:

  1. A Government Company is one in which atleast 51% of its paid up capital is held by the Central Government and / or the State Government.
  2. State Trading Corporation (STC), Steel Authority of India (SAIL), Bharat Heavy Electricals Ltd (BHEL) etc. are some of the examples of Government Companies.
  3. These companies are registered under the Indian Companies Act, 2013 and its working is governed by the rules and regulations of the act.
  4. Government Companies are established for purely business purpose and to complete with the private sector. The shares of the company are purchased in the name of the President of India.
  5. Government Companies may be registered as public or private limited companies.

(B) Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

(v) Own Staff: The employees are appointed as per the rules and regulations set by the company. Its employees are not governed by respective Government.

(vi) Promotes Social Welfare : Government Companies aims to optimise national and natural resources such as land, water, electricity, etc. It produces arms, ammunition and other defence equipments. It also brings about balanced regional development and leads to equality of income.

(vii) Objective : It operates on commercial principles and as such its aim is to make profit.

(viii) Separate Legal Entity : A Government Company is a corporate body created under the Companies Act. It has all features of a company such as legal entity, common seal, limited liability, etc. It can enter into contracts and acquire property in its own name.

(ix) Exemptions : Government Company is exempted from budget, accounting and audit laws applicable to government departments. Its accounts are audited by the Government Auditor. The Government has a right to exempt the company from any provisions of Companies Act which may come in its way of providing welfare services to the public at large.

(ix) Suitability : Government Companies are suitable for conducting manufacturing and marketing activities.

Question 6.
Explain Merits and Demerits of Government Company.
Answer:
(A) Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(ii) Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers and so on.

(iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. Government always promotes public welfare.

(iv) Foreign Capital and Technical Know how : As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.

(v) Acquisition of Sick Units : A government company can acquire a sick unit in the private sector without rationalisation. It can be acquired by purchasing 51% of the share capital of a private company.

(vi) Concessions and Privileges : As government owns Government Company, it enjoys various concessions, privileges, subsidies, etc. It may also get orders for the products or services from various government departments and agencies. It also has access to use financial resources of the Government.

(vii) Efficiency : Government company has to compete with the private sector companies. Hence, it tries to promote efficiency at all levels and avoids wastages wherever possible. It tries to improve its services to consumers and promotes consumer satisfaction by providing quality goods at reasonable prices.
From the above points, it could be seen that the Government Company enjoys various benefits as it is owned by the Government and blends the objectives of privately owned companies with State owned control and maximise public welfare.

(viii) Professional Management: The management of Government Company is in the hands of the Board of Directors appointed by the Government. Government exercises control on various matters through Board of Directors. They are highly qualified.

(ix) Easy Formation : The formation of Government Company is easy as there is no procedural delay and legal constraints. It does not require special Act or Parliament approval. It comes into existence through executive decision of the Government.

(x) Flexibility : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xi) Easy to Alter : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xii) Enjoys Private and Public Objective : In a Government Company, attempt is made to combine the operating flexibility of privately owned companies with the advantage of state regulation and control in public interest.

(B) Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(iii) Domination of Ministers and Politicians : The ministers of the concerned departments are in charge of the Government Company. In view of Government ownership, political interference is quite common. The Directors try to serve and achieve their political motives rather than realisation of business goals as they are nominated for political gains and not on merits.

(iv) Red Tapism and Delay : The bureaucratic management delays in taking decision and implementing. There is no time frame and the employees are not devoted. There is often delay in preparing various documents and forwarding the same for taking action. Thus, delay, red tape, corruption, avoidance of work and shirking from the responsibility is common sight in Government Company.

(v) Autonomy only in Name : Though there is administrative autonomy, these companies face a lot of interference from the government in all the matters. Appointment of Directors, employees and its working, there is no autonomy. Autonomy is only on paper and not in practice.

(vi) Weak Public Accountability : Absence of Government audit is a major draw back in case of Government company which does not assure proper utilisation of funds. There is no control on misappropriation of funds which leads to weak public accountability.

(vii) Fear of Exposure : The working of Government Company like annual report is placed before the parliament or State Legislature. It is exposed to press and public criticism. Therefore, management of the government company often gets demoralized.

(viii) Lack of Expertise: The managerial key personnel of a Government Company are deputed from government departments. Such person, generally, lack expertise and commitment leading to lower operational efficiency of the Government Company.

(ix) Ineffective Control of Parliament : There is lack of control of the Parliament in the working of the Government company. Parliament is not having direct control, due to which the officers shirk from responsibility and postpone decision making. It affects efficiency of Government company.

(x) Poor Labour Management Relations : The employer-employee relations in the Government companies are poor. This is the result of corrupt and inefficient management of selfish trade unions. Proper work culture is found absent in Government companies.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

Question 7.
Explain Multinational Corporation and its features.
Answer:
(A) Meaning:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(ii) Multinational Corporation played an important role in the Indian Economy since 1991. They have become a common feature of developing economies in the world.
A Multinational Corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.

(B) Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(ii) Legal Existence : MNCs are registered in their home country as per their laws and as such they enjoy separate legal status. It can sue and be sued, enter into contracts and own property in their own name.

(iii) Government: MNCs have to bring about the necessary changes in their functioning based upon the laws prevailing in the countries of their operations. For e.g. advertisement about various products on TV is given in local languages in India and in national language Hindi, to cover maximum target audience. In some cases they have to change the menu to suit local demands for e.g. McDonalds had to change its menu for its business in India.

(iv) Origin: The MNCs have origin in one country and the country to which they belong is called home country. The country in which they operate their business activities is called host country. These companies are registered in their home country and have a place of business in different countries of the world. The head office controls the operations of different branches through a network of internet. They also appoint their representatives in host countries for smooth business operations.

(v) Research & Development: MNCs give lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The R&D is undertaken for finding out new product, new system, new technology, new methods of doing business in an economical way.

(vi) International Operations : Multinational Corporation play a significant role in world trade. Nearly 40% of the world is contributed by the multinational companies.

(vii) Target Profit Oriented : Earning profit is the main motive of MNCs. For this purpose they introduce new and novel products, launch new marketing schemes, organize trade fairs and exhibitions, does lots of publicity and adopts professional approach in all its dealings.

(viii) Huge Assets and Turnover : Multinational Corporation have huge financial strength because of huge capital and assets. This enables it to develop its business potential in developing and under developing nations where they can earn handsome profits.

(ix) Mighty Economic Power: Multinational Corporation has a huge capital and assets so they have a mighty economic power. They keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.

(x) Centralized Control: Multinational Corporation is managed by parent company. It manages affairs of the subsidiary company from the respective home country. Multinational corporations are controlled by parent companies and mostly home strategic.

(xi) Area of Operation : MNCs operate in different countries of the world and deal in multiple products on a large scale. They operate in those countries where chance of maximizing profit is more. MNCs of developed nations dominate the global market and they undertake production or marketing activities and so on. For . e.g. Coca Cola, Tata Tea and so on have global presence.

(xii) Professional Management: A MNC employs professionally qualified personnel to handle huge funds, advanced technology and international operations.

Question 8.
Explain Merits and Demerits of Multinational Corporation
Answer:
(A) Introduction:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(ii) Multinational Corporation played an important role in the Indian Economy since 1991. They have become a common feature of developing economies in the world.
A Multinational Corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.

(B) Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iii) Promotion of International Brotherhood and Culture: MNCs integrate economies of various nations with the world economy and promote international brotherhood and culture with peace and prosperity in the world.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(v) Technical Development: Multinational corporations gives lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The research and development is undertaken for finding out new product, new system, and new technology of doing business in an economical way.

(vi) Improvement of Standard of Living : Multinational Corporations supply their product at very reasonable prices in the global market. E.g. the price of wrist watches, cell phones, etc. This helps to improve the standard of living of people of host countries.

(vii) Managerial Development : Multinational corporations have highly specialized and expert team of management. These experts are hired from different countries of the world. Also their functioning is highly professional. They adopt new technology and use huge resources.

(viii) Employment Generation : MNCs create large scale employment opportunities in host countries and . helps in reducing unemployment.

(C) Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) Create Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) Outsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(iv) Misuse of Mighty Status : Multinational Corporations have powerful financial strength because of huge capital. They can afford to bear losses for a long while in the hope of earning huge profits. They have ended local competition and achieved monopoly. This may be unfair.

(v) Multinational Corporations Import Skilled Labour : Most companies in this position imports the skilled labour they require from other economic to meet their needs. That means the best jobs, especially in the developing world, are given to people who don’t even live in the local economy. Those wages do not offer the same economic benefits because spending occurs internationally instead of at the local level.

(vi) Interference : Multinational Corporations are gigantic organizations with huge finance and efficient management. They try to bring about expansion of business through mergers, acquisitions and amalgamations. As they are huge corporations they exert influence on political parties and try to spread political ideology of their home country.

Maharashtra Board OCM 11th Commerce Solutions Chapter 5 Forms of Business Organisation – II

(vii) Take away Profits to Home Country : Profits made by multinational corporations are not used in the same country from where they are earned. They are not interested in development of other countries. They do not use their profits on infrastructural development of other countries.

(viii) E ncourage Political Corruption : To get favourable terms and conditions in host country multinational corporations bribe to political parties.

(ix) Repatriation of Profiles : Multinational Corporations get huge profit. Repatriation of profit by Multinational Corporation adversely affects the foreign exchange reserves of the host country. If means that a large amount of foreign exchange goes out of host country.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

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

Question 1.
Representatives of shareholders are ____________
(a) directors
(b) employees
(c) servants
Answer:
(a) directors

Question 2.
The notice of the meeting of the Board of Directors must be accompanied by ____________
(a) agenda
(b) minutes
(c) resolution
Answer:
(a) agenda

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 3.
____________ looks after the management of a company.
(a) Board of Directors
(b) Auditor
(c) Company Secretary
Answer:
(a) Board of Directors

Question 4.
The Directors take decisions at ____________ meeting.
(a) Annual General
(b) Board
(c) Statutory
Answer:
(b) Board

Question 5.
According to Section 167(1)(b) of the Companies Act 2013, if a director absents himself from all the meetings of the Board, for a period of ____________ months or more, with or without the leave of the Board, he shall be deemed to have vacated his office.
(a) 12
(b) 10
(c) 9
Answer:
(a) 12

Question 6.
Every company except OPC and the small company shall hold minimum ____________ Board Meetings in each year.
(a) 4
(b) 3
(c) 5
Answer:
(a) 4

Question 7.
The gap between two consecutive Board Meetings should not be more than ____________ days.
(a) 120
(b) 110
(c) 130
Answer:
(a) 120

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

1B. Match the pairs.

Question 1.

Group ‘A’ Group ‘B’
(a) Directors (1) At least 2 Directors
(b) Absenteeism of Director in Board Meetings (2) At least 3 Directors
(c) Public Company (3) Disqualification of director
(d) Private Company (4) Representatives of shareholders
(e) Notice of a Routine Board Meeting (5) 21 clear days
(6) 7 days
(7) 70 days
(8) Representative of the public
(9) At least 20 directors
(10) At least 30 directors

Answer:

Group ‘A’ Group ‘B’
(a) Directors (4) Representatives of shareholders
(b) Absenteeism of Director in Board Meetings (3) Disqualification of director
(c) Public Company (2) At least 3 Directors
(d) Private Company (1) At least 2 Directors
(e) Notice of a Routine Board Meeting (6) 7 days

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

Question 1.
Elected body of representatives of shareholders.
Answer:
Board of Directors

Question 2.
An employee of a company who provides guidance and advice to the Board of Directors about business matters.
Answer:
Company Secretary

Question 3.
A meeting of all the directors of a company.
Answer:
Board Meeting

Question 4.
A written invitation was given to the Director to attend the meeting.
Answer:
Notice of Board Meeting

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

Question 1.
A director can be removed before the expiry of his term.
Answer:
True

Question 2.
Directors act as trustees of the company.
Answer:
True

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 3.
A director can remain absent for any number of Board Meetings.
Answer:
False

Question 4.
Directors act as agents and trustees of the company.
Answer:
True

Question 5.
Company Secretary need not attend the board meetings.
Answer:
False

Question 6.
Director can take decisions individually.
Answer:
False

1E. Complete the sentences.

Question 1.
The elected representatives of the shareholders are called as ____________
Answer:
Board of Directors

Question 2.
The meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 3.
The notice period for Board Meeting shall not be less than ____________
Answer:
7 days

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

1F. Select the correct option from the bracket.

Question 1.

Group ‘A’ Group ‘B’
(1) Notice of Board Meeting ………………………..
(2) ………………….. Meeting of all directors
(3) Duty of Directors ………………………….

(Board Meeting, Not less than 7 days, Disclosure of personal interest)
Answer:

Group ‘A’ Group ‘B’
(1) Notice of Board Meeting Not less than 7 days
(2) Board Meeting Meeting of all directors
(3) Duty of Directors Disclosure of personal interest

1G. Answer in one sentence.

Question 1.
When does a Director vacate his office due to absenteeism at Board Meeting?
Answer:
When the director is absent for all meetings of the Board held during a period of twelve months, with or without the leave of absence from the board, he shall be deemed to have vacated his office.

Question 2.
Can a Director who was absent at the Board Meeting get a copy of the minutes of that Board Meeting?
Answer:
If the director is absent for a board meeting he has the right to get a copy of the minutes of that Board Meeting.

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

Question 1.
Secretary is an elected representative of the shareholders.
Answer:
Director is an elected representative of the shareholders.

Question 2.
Secretary is responsible for the decision-making and framing policies of a company.
Answer:
Director is responsible for the decision-making and framing policies of a company.

2. Explain the following terms/concepts.

Question 1.
Director
Answer:
Director is any person occupying a position by whatever name called, Directors are authorized by shareholders to conduct the activities of the company. Director prepares policies to achieve the aims of the company.

Question 2.
Board of Directors
Answer:
Directors are elected representatives of shareholders. Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set. They have to exercise proper control, direction, and supervision. Directors exercise their powers and authorities collectively as a “Board”.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 3.
Conciseness
Answer:
Business letters to directors must be brief and to the point. Unnecessary details, irrelevant matters must not be written, conciseness refers to ‘briefness’. It is said that ‘brevity is the soul of correspondence’.

Question 4.
Politeness
Answer:
While corresponding with Directors, simple words and language must be used. A letter must show empathy, respect, and mutual understanding. It helps to create goodwill. Unnecessary big terms, long sentences should be avoided. Secretary should not use any harsh words while corresponding with directors.

Question 5.
Initiative
Answer:
The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.

Question 6.
Notice and Agenda of board meeting
Answer:
The notice of the Board meeting is a document that is sent to all directors of the company. All types of companies are required to give notice of at least 7 days along with agenda before the actual day of the meeting. Notice of Board meetings is generally sent by hand delivery or by post or by electronic means.

3. Answer in brief.

Question 1.
What are the points to be considered by a secretary while corresponding with the directors?
Answer:
Following are the points or precautions to be taken by the secretary while corresponding with Directors.

  • Initiative: The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.
  • Accuracy: In correspondence with directors “accuracy” or perfectness is very much important. Whatever information, action, data, or reply is to be given, must be given accurately. Secretary should provide correct, accurate, and perfect information.
  • Promptness: Every letter must be dealt with promptly, whatever might be the subject matter. Prompt replies always create a good impression about your organization, delays in correspondence may prove to be costly in a later stage.
  • Brevity: The letter acts as a representative of the organization. Hence, the secretary should always provide all information in a compact manner. A letter should not be lengthy. Secretary should provide maximum information in minimum words.
  • Politeness: In correspondence with directors simple and words and language must be used. Unnecessary use of big terms, long sentences should be avoided. Secretary should not use any harsh words.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 2.
Under what circumstances will a secretary correspond with a director?
Answer:
Following are the circumstances when a company secretary corresponds with a Director:

  • Sending Notice and Agenda of routine Board Meeting.
  • Requesting a director to disclose his interest in a particular contract.
  • Forwarding the minutes of the meeting to the directors who were absent from the meeting.
  • Intimation to the director about the provisions regarding absenteeism at board meetings.

4. Justify the following statements.

Question 1.
Directors exercise their powers and authorities collectively as a Board.
Answer:

  • The Directors occupy a very important position in the company’s management.
  • They are elected representatives of the shareholders.
  • Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set.
  • They have to exercise proper control, direction, and supervision.
  • Directors exercise their powers and authorities collectively as a “Board”.

Question 2.
The Secretary should take certain precautions while corresponding with Directors.
Answer:

  • The company secretary is an executive officer of a Joint Stock Company.
  • The decisions taken by the board of directors are implemented by the secretary.
  • The secretary acts as a link between the directors and other management personnel.
  • The secretary provides assistance to the directors and guidance to the directors.
  • Directors occupy key positions and are superiors, so the communication with them should be cautious and tactful.

Question 3.
The Board of Directors is the elected representative of the shareholders.
Answer:

  • A Joint Stock Company is a business organization with a wide scope of business activity.
  • Though shareholders of the company are the part of owners as well as the members of the Joint Stock Company, they cannot participate in the management and day-to-day functioning of the company since they are scattered over a large geographical area.
  • So, as such the shareholders during the Annual General Meeting elect the directors to act as their representatives and carry on the business activities of the company.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 4.
The Secretary has to correspond with Directors on important occasions.
Answer:

  • The company secretary is an executive officer of a joint-stock company.
  • The decisions taken by the board of directors are implemented by the secretary.
  • The secretary acts as a link between the directors.
  • The secretary is said to be the ears, eyes, hands, and mouthpiece of the Board.
  • So under the following circumstances, the secretary writes letters to Directors:
    • Sending Notice and Agenda of the routine Board meeting.
    • Requesting directors to disclose their interest in a particular contract.
    • Forwarding the minutes of the meeting to the directors, who were absent for the meeting.
    • Intimating the director, the provisions regarding absenteeism at consecutive board meetings.

5. Answer the following questions.

Question 1.
Draft the notice and agenda of routine board meetings.
Answer:

INFORT TECHNOLOGY LIMITED
Registered Office: 12, Swaraj Excellency,
British Library Lane, F.C. Road, Pune-411004
CIN: BOO160MH20375JLB400180

Phone:020-21173428
Fax: 020-32194237

Website: www.inforttechnology.com.
E-mail: infort@technology.com.

Date: 25th March 2019

Ref. No.: D/MR/13/19-20
The Director,
Mr. Anvit Gaurav Gaikwad,
Vastushodh, Building 42, Flat No. 107,
Urbangram, Kirkutwadi, Pune.

Sub: Notice of the Board Meeting dated 28th April 2019.

Dear Sir,

I wish to inform you that the monthly Board meeting will be held on 28th April 2019 at 10.00 a.m. at the registered office of the company to transact the following business.

AGENDA

  1. To confirm the minutes of the last meeting.
  2. To confirm the applications of shares.
  3. To consider the financial position of the company.
  4. To decide the date of the next board meeting.
  5. To discuss any other matter with the permission of the Chairman.

You are requested to be present at the meeting.
Thanking you,

Yours faithfully,
for Infort Technology Ltd.
Sign
Company Secretary

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 2.
Write a letter to the director requesting him to disclose his personal interest in a contract.
Answer:

CHAUDHARI KANCHWALA LIMITED
Registered Office: S.N.1960, Kolhar Ghoti Highway,
Sangamner Akole Road,
Mangalapur.
CIN: B40408MH2019ABC1205

Phone: 02425-227244
Fax: 02425-221974

Website: www.chaudharikanchwala.com.
E-mail: chaudhari60@gmail.com

Date: 1st January 2019

Ref. No.: D/CK/23/19-20
The Director,
Mrs. Rajshri Atul Chaudhari,
Janata Raja Madian,
Vidyanagar, Sangamner.

Sub: Disclosure of personal interest.

Dear Madam,

I wish to inform you that the meeting of the Board of Directors of the company will be held on 21st January 2019. The Board decided to appoint Public Relations Officer for developing relations with customers and wholesalers.

As per information received from a reliable source, Mr. Vinayak Nehulkar your relative has applied for the post of PRO.

I wish to know whether the said information is true or false. In this case, if you have a personal interest in his appointment, kindly disclose your nature of interest as per Section 184 of the Companies Act, 2013.

Kindly revert as early as possible.

Thanking you,

Yours faithfully,
for Shri Chaudhari Kanchwala Ltd.
Sign
Company Secretary

Question 3.
Write a letter to the director who was absent for a Board Meeting to inform him about the proceeding of the meeting.
Answer:

PRABHAT OPTICAL COMPANY LTD.
Registered Office: Yuga Tower, Nashik-Pune Road,
Ganesh Nagar, Sangamner.

Phone: 02425-222697
Fax: 02425-232697

Website: www.prabhatoptical.com.
E-mail: ritivinayak@gmail.com.

Date: 20th May 2019.

Ref. No.: D/LB/16/19-20
The Director,
Mr. Vijay Kodur,
Tajane Mala, Navine Nagar Road,
Sangamner – 422605.

Sub: Information about the proceedings of the meeting.

Dear Sir,

Please find enclosed herewith a copy of the minutes of the Board Meeting held on 1st May 2019 for your information and record.

I invite your attention to paragraph No.25 of the minutes. A proposal to establish a branch office in Mumbai was moved by Mr. Laxman Gadekar. It was seconded by Mr. Atul Chaudhari. After a detailed discussion, the chairman finally concluded the meeting by accepting the proposal. The motion was passed with an 80% majority.

The other items on the agenda being of routine nature require no explanation.

Thanking you,

Yours faithfully,
for Prabhat Opticals Company Ltd.
Sign
Company Secretary

Encl.:- Copy of Minutes

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

Question 4.
Write a letter to the director reminding him about the provision relating to absenteeism at the Board Meeting.
Answer:

SURESH CABLES NETWORK COMPANY LIMITED
Registered Office: Shubham Heights,
Old Mumbai Agra Road, Ghoti.
CIN: H25301MH1999ABC14708

Phone: 042530
Fax: 312240

Website: www.sureshcnc.com
E-mail: sureshcable@gmail.com.

Date: 13th December 2019.

Ref. No.: D/CB/17/19-20
The Director,
Mrs. Archana Sumit Pawar,
Juna Adgaon Naka, Chavan Nagar,
Tapovan Road, Nashik.

Sub: Information about absenteeism in the board meeting.

Dear Madam,

This is to bring to your attention the fact that you have remained absent for two consecutive board meetings held on 15th October 2018 and 17th November 2018. The chairman has not received any intimation from you regarding your absence from these board meetings.

You are requested to note that Section 167(1)(b) of the Companies Act, 2013 provides that a director has to vacate his office if such absence is with or without the chairman’s permission.

The next board meeting of the company is to be conducted on 13th January 2019. Please make it convenient to attend this meeting or intimate the cause of absence to avoid disqualification under Section 167(l)(b). The notice and agenda of the Board Meeting have been already forwarded to you.

Thanking you,

Yours faithfully,
for Suresh Cable Network Company Ltd.
Sign
Company Secretary

 

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 6 Stress Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 6 Stress

1A. Complete the following statements.

Question 1.
When the demand of a situation exceeds personal and social resources an individual can mobilise, it leads to __________
a. worries
b. stress
c. depression
Answer:
b. stress

Question 2.
__________ leads to boredom.
a. Eustress
b. Hypo stress
c. Distress
Answer:
b. Hypo stress

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question 3.
__________ is necessary for better performance.
a. High stress
b. Moderate stress
c. Low stress
Answer:
b. Moderate stress

Question 4.
Low level of intelligence may act as __________ stressor while facing a difficult exam.
a. internal
b. external
c. imposed
Answer:
a. internal

Question 5.
__________ results when a goal-directed activity is blocked by some obstacle.
a. Frustration
b. Anger
c. Conflict
Answer:
a. Frustration

1B. State whether the following statements are true or false. If false, correct them, If true, explain why.

Question 1.
Well-adjusted person does not experience stress at all.
Answer:
False
Reason: A well-adjusted person may experience stress and discomfort at times because the degree of adjustment changes according to the situation and time.

Question 2.
Stress can be good sometimes.
Answer:
True
Explanation: Sometimes stress can be good because we can achieve optimum performance under moderate stress.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question 3.
Hyper stress leads to the best performance.
Answer:
False
Reason: Hyper stress does not lead to the best performance. Moreover, under the influence of hyper stress, a person may undergo panic leading to frustration.

Question 4.
Hypo stress is a bliss.
Answer:
False
Reason: Hypo stress leaves a person demotivated, unenthusiastic, bored and restless.

Question 5.
Hyper stress leads to panic and exaggerated response.
Answer:
True
Explanation: Hyper stress leads to panic and exaggerated response because it occurs under extremely pressurising situations. In such a situation, a person may also throw temper tantrums leading to frustration.

Question 6.
Conflict of motives is an internal stressor.
Answer:
True
Explanation: Conflict of motives is an internal stressor because the conflict is within the individual who has to choose between two or more equally strong and incompatible motives.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question 7.
Approach-Avoidance conflict is extremely difficult to resolve.
Answer:
True
Explanation: Approach-Avoidance conflict is extremely difficult to resolve because an individual is attracted and repelled by the same goal which has both positive and negative values.

Question 8.
Compromise is emotion focused coping strategy.
Answer:
False
Reason: Compromise is a problem focused coping strategy.

1C. Identify the odd item from the following.

Question i.
Unchallenging job, Unemployment, Leisure, Lack of purposeful activity
Answer:
Leisure

Question ii.
Eustress, Hyper stress, Frustration, Distress, Hypo stress
Answer:
Frustration

Question iii.
Attack, Withdrawal, Defence mechanism, Compromise
Answer:
Defence mechanism

Question iv.
Withdrawal, Projection, Sublimation, Rationalisation, Displacement
Answer:
Withdrawal

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

1D. Match the following pairs.

Question 1.

A B
1. Two negative goals a) Defence mechanism
2. Problem-focused coping b) Hypo stress
3. Vacation after sufficient work c) Avoidance-Avoidance conflict
4. Lack of challenging work d) Direct way of coping with stress
5. Emotion-focused coping e) Approach-Avoidance conflict
f) Leisure

Answer:

A B
1. Two negative goals c) Avoidance-Avoidance conflict
2. Problem-focused coping a) Defence mechanism
3. Vacation after sufficient work e) Approach-Avoidance conflict
4. Lack of challenging work b) Hypo stress
5. Emotion-focused coping d) Direct way of coping with stress

2. Answer the following questions in around 35-40 words each.

Question (i).
What are the ill effects of distress?
Answer:
Distress is a negative type of stress. Its ill effects are as follows:

  • Our body is flooded with emergency response hormones such as adrenaline and cortisol.
  • It can cause physical conditions like headaches, digestive issues, and sleep disturbances.
  • It can cause psychological and emotional strains like confusion, anxiety, and depression.

Question (ii).
Explain the relationship between the level of stress and performance with the help of an appropriate diagram.
Answer:

  • Everybody deals with stress in different ways.
  • When stress is too less or when it exceeds the limit, it deteriorates performance.
  • Optimum performance can be achieved only under moderate stress.
  • This can be explained with the help of a diagram:
    Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress 2 Q2

Question (iii).
Explain the internal and external stressors with examples.
Answer:

  • Internal stressors: These are stressors within us and we have to deal with them ourselves, e.g. a paralyzed individual may not be able to do any work which can lead to stress.
  • External stressors: These are stressors from the outside environment which result in frustration, e.g. forgetting the PIN while using an ATM machine.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question (iv).
What are the effects of hypo stress?
Answer:
Hypo stress is an insufficient amount of stress which is caused when a person has nothing to do at all. Its effects are as follows:

  • It leads to boredom.
  • It causes feelings of restlessness.
  • People become demotivated and unenthusiastic.

Question (v).
Why the approach-avoidance conflict is most difficult to resolve?
Answer:
Approach-Avoidance conflict is most difficult to resolve because:

  • An individual is attracted and repelled by the same goal.
  • There is only one goal that has both positive and negative values.
  • An individual has no choice. He has to accept the consequences of his choice.

3. Compare and contrast with examples.

Question 1.
Eustress and Distress
Answer:

  • Eustress means good or a positive form of stress having a beneficial effect on health, motivation, performance, and emotional well-being (Merriam Webster). Conversely, distress is a negative type of stress and is experienced when the normal routine of an individual is constantly altered and adjusted.
  • e.g. After a lot of practice, Amit is ready for his football match. He will experience eustress. e.g. Ajay is fired from his job and is not able to find a job anywhere else. He will experience distress.

Question 2.
Hypo stress and Hyper stress
Answer:

  • Hypo stress is an insufficient amount of stress and is caused when an individual has nothing to do at all while hyper stress is caused due to extremely pressurizing conditions.
  • Hypo-stress makes an individual demotivated, unenthusiastic, and restless while in case of hyper stress, a person may panic and engage in exaggerated reactions leading to frustration and agitation.
  • e.g. When one cannot use his full potential in a job, it results in hypo stress. e.g. When one is stuck in a traffic jam, has forgotten to carry important documents for the meeting, and is late to work, it results in hyper stress.

Question 3.
Emotion-focused coping and Problem-focused coping
Answer:

  • In emotion-focused coping, an individual focuses on the emotions resulting from stress. On the other hand, in problem-focused coping, an individual focuses effort on the problem and accepts the reality as it is.
  • e.g. Nilesh tries to avoid negative emotions by keeping his mind stable with meditation or stuff down negative emotions by fighting with others. This is emotion-focused coping, e.g. When a chef gets negative feedback about a dish he has made, he makes more efforts to improvise the dish. This is problem-focused coping.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question 4.
Attack and Withdrawal
Answer:

  • In an attack strategy, an individual directly attacks the conflict as a direct way to resolve it. On the other hand, in withdrawal strategy, an individual may indulge in beating retreat or withdraw from the goal when he cannot achieve it after putting in his best efforts.
  • e.g. When an employee wants a promotion and gets negative feedback on his presentation, he tries to improvise his presentation, learns, and asks for help from his seniors to get promoted (attack), e.g. If the employee is not promoted due to flaws in his presentation, he may leave the job altogether (withdrawal).

Question 5.
Compromise and Withdrawal
Answer:

  • In compromise strategy, a person readjusts the goal to the nearest possible goal when he cannot achieve the original goal due to lack of capacity. Alternatively, in withdrawal strategy, a person may indulge in beating retreat or withdraw from the goal when he cannot achieve it after putting in his best efforts.
  • e.g. An individual who wanted to become an orthopedic surgeon but could not manage to get admission. So, he took up physiotherapy as a career (compromise), e.g. On not getting admission, the individual may give up the field of medicine and his dream of becoming a doctor and pursue something else (withdrawal).

Question 6.
Projection and Rationalization
Answer:

  • Projection involves the individual attributing his own thoughts, feelings, and motives to another person while rationalization occurs when a person attempts to explain or create excuses for his failure. By doing so, the individual avoids accepting the true cause of his failure.
  • e.g. when a student has not studied for the exam, he may say that the questions were out of the syllabus (projection), e.g. when a person cannot afford a car, he says that cars are not environment friendly (rationalization).

4(1). What are the possible consequences?

Question (a).
Mehul is sufficiently prepared for his exams but feels tremendously stressed.
Answer:

  • It is possible that Mehul might panic and go blank while writing the paper.
  • So, Mehul should be confident about what he has studied and hope that he does well in the exam.

Question (b).
Sujata has nothing to do as her husband is a multimillionaire, nor does she have any hobby.
Answer:

  • Sujata is facing hypo-stress as she has nothing to do at all. It is possible that she feels very bored, demotivated, unenthusiastic, and restless.
  • In order to feel good about herself, she should pursue something she likes and diverts her mind.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question (c).
Kalpesh sets his goals similar to his top ranker brother, without considering his ability.
Answer:

  • Kalpesh will feel very stressed if he does not have the level of intelligence or ability required to meet the goals. It would lead to anger and frustration.
  • There is also a possibility that he would feel extremely demotivated and leave the goal permanently.

Question (d).
Mohsin resorts to blaming others every time he fails.
Answer:

  • Mohsin is using the defense mechanism called projection to protect his ego from shattering. But at some point, he will have to face the reality.
  • At such a point in time, his ego would no longer be protected and may lead to mental health problems.

4(2). Identify the defense mechanism used in each of the following examples.

Question (a).
Rahul who is interested in football was not selected for the college football team. He says he never wanted to be a part of the college football team.
Answer:
Displacement

Question (b).
Vipasha comes from an extremely poor family. She sleeps into imagining herself driving her own car.
Answer:
Sublimation

Question (c).
Arnav got a scolding by his teacher and he could not answer back. After coming home, he started beating his younger brother for no reason.
Answer:
Daydreaming

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question (d).
Ajay loved a girl who turned down his proposal. Later he became a successful composer.
Answer:
Rationalization

4(3). Identify the conflict of motive that is experienced by the person in the following situation.

Question (a).
Rashmi has got a promotion in her company and so has to go abroad. She wants to take this opportunity but at the same time, she is not willing to leave her parents.
Answer:
Approach – Avoidance conflict

Question (b).
Yogesh has got selected by two reputed companies at the same time and both are his dream offers.
Answer:
Approach – Approach conflict

Question (c).
Julius doesn’t want to go to a wedding ceremony with his family as it’s too boring there but doesn’t want to stay alone at the same time.
Answer:
Avoidance – Avoidance conflict

Question (d).
Shanaya is very conscious about her figure, but she is also very tempted to eat sweets.
Answer:
Approach – Avoidance conflict

Question (e).
Vishal has got the invitation from his school friends for a reunion party on the same day as his fresher’s party in his college.
Answer:
Double Approach – Avoidance conflict

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

5. Write short notes in 35-40 words each.

Question 1.
Types of stress
Answer:

  • Hypo stress: It is caused when one has nothing to do at all.
  • Hyper stress: It is caused due to extremely pressurizing conditions.
  • Eustress: It is a positive form of stress.
  • Distress: It is a negative type of stress. Two types of distress are:
    • Acute distress: Intense and short-term
    • Chronic distress: Long-lasting and recurrent

Question 2.
Relationship between stress level and performance
Answer:

  • When stress is too little or when it exceeds the limits, it deteriorates performance.
  • Optimum performance can be achieved only under moderate stress.

Question 3.
Direct ways to cope with stress
Answer:

  • Attack: An individual directly attacks the conflict to resolve it.
  • Compromise: If a person cannot achieve the goal, he may readjust the goal to the nearest possible goal.
  • Withdrawal: When a person cannot achieve a goal after putting in their best efforts, he may withdraw from the goal altogether.

Question 4.
Defense mechanisms
Answer:

  • Defense mechanisms are an indirect way to combat stress.
  • They are unconscious strategies used to protect the ego from breaking due to unacceptable/harsh reality. It functions as a shock absorber.

6. Answer the following questions in 150-200 words each.

Question 1.
Give the definition of stress and explain different types of stress.
Answer:
According to Richard Lazarus, ‘stress is a feeling experienced when an individual feels that the demands exceed the personal and social resources an individual is able to mobilize’.
The types of stress are as follows:

  • Hypo stress: It is an insufficient amount of stress and may be due to work under load. When people have nothing to do, they get bored and if this feeling persists for a longer time, it results in hypo-stress. People with hypo-stress are demotivated, unenthusiastic, and restless.
  • Hyper stress: It is a result of extremely pressurizing conditions. Due to hyper stress, a person may experience panic attacks and may engage in exaggerated reactions like throwing temper tantrums. It leads to frustration and agitation.
  • Eustress: It is a good form of stress which has a positive effect on health, motivation, performance, and emotional well-being. It is a state when an individual is excited, determined, inspired, energized, and ready to go. While experiencing eustress, the body is temporarily and intensely flooded with hormones like oxytocin and dopamine.
  • Distress: It is a negative type of stress. An individual experiences it when the normal routine is constantly adjusted and altered. While experiencing distress, our body is flooded with emergency response hormones like adrenaline and cortisol. Distress is divided into two types:
    • Acute distress: It is intense, short-term negative stress.
    • Chronic distress: It is a long-lasting, recurrent negative stress.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Question 2.
What is meant by conflict of motives? Explain the different types of conflicts with examples. Illustrate your answer with appropriate figures.
Answer:
Conflict of motives refers to the clash between two or more equally strong and incompatible motives occurring at the same time that compels an individual to make a choice, which in turn leads to stress.
The types of conflict are:
i. Approach-Approach conflict: There is a conflict between two positive and attractive goals. The decision will depend on the attractiveness of the goal and its valence may change, e.g. Bhoomi wants to take up two courses but they are both scheduled at the same time.
Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress 6 Q2

ii. Avoidance-Avoidance conflict: The conflict involves two goals with negative values. An individual is forced to make a choice between two negative and unattractive goals, e.g. Ritu must work at a job which she dislikes, or else she must remain unemployed.
Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress 6 Q2.1

iii. Approach-Avoidance conflict: There is only one goal and it has positive as well as a negative value. This type of conflict is very difficult to resolve. There are three possible reactions in such a situation: give importance to a positive value, be cautious about the negative value and leave the goal altogether, e.g. Aryan receives a letter of acceptance from a college of his choice but it is very expensive.
Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress 6 Q2.2

iv. Double Approach-Avoidance conflict: An individual faces conflict between two or more goals that have an equal positive or negative value. However, an individual is always disappointed with the choice he makes as he has to lose the other goal, e.g. Richa has to choose between two boys for marriage. One is handsome but boring. The other one is fun but not good-looking.
Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress 6 Q2.3

Activities

[Note: The answers to activities will be very subjective. The answers provided are for reference. Students are expected to perform these activities on their own.]

Activity 2 (Textbook Page No. 61)

Look at the following examples of stress. Try to find a pattern in them and make a definition of stress for yourself.
i. Meena needs fees for her higher education. But her father has less money than required. He feels very stressed.
ii. Rashid is late for an appointment and he is stuck up in a traffic jam. He is stressed about reaching on time.
iii. Parminder is supposed to make a model for the Science examination which is not working. Parminder feels stressed.
Answer:
Stress is the body’s reaction to any change that requires adjustments. It refers to a situation in which an individual’s expectations cannot be fulfilled due to a lack of resources.

Maharashtra Board Class 11 Psychology Solutions Chapter 6 Stress

Activity 6 (Textbook Page No. 66)

Try to find examples of the given types of conflicts in your life or around you. How are these types of conflicts resolved? Are they? How does one deal with the resulting stress?
Answer:
Everyone faces all types of conflicts at one time or the other. I have to choose between two of my favourite destinations for the upcoming vacations. My uncle loves to eat sweets but he is a diabetic and so, he is always thinking about how to resolve this conflict. My younger brother has to choose between doing homework and going to tuition. He dislikes both.

All these types of conflicts are difficult to resolve but solving them is also very important. Everybody deals with the resulting stress in different ways. Ideally, we should weigh the pros and cons of every situation and then come to a conclusion.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

1A. Complete the following statements.

Question 1.
One of the criteria of well-adjusted behaviour is ___________
(a) intelligence
(b) openness to new experience
(c) success
(d) artistic ability
Answer:
(b) openness to new experience

Question 2.
According to the humanistic perspective, every individual strives for ___________
(a) absence of problems
(b) absence of mental disorder
(c) enjoyment in life
(d) development of one’s abilities to the fullest
Answer:
(d) development of one’s abilities to the fullest

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 3.
According to ___________ perspective, one of the causes of abnormality is ‘genetic predisposition’.
(a) behavioural
(b) biological
(c) sociocultural
(d) cognitive
Answer:
(b) biological

Question 4.
___________ face the identity crisis.
(a) Children
(b) Adolescents
(c) Young adults
(d) Old people
Answer:
(b) Adolescents

1B. State whether the following statements are True or False and justify your answer with reason.

Question 1.
Sucheta has an IQ that falls into the category of genius which is rare to find. ‘Genius’ is statistical deviance. Therefore, she is abnormal.
Answer:
False
Reason: Although Sucheta’s IQ is statistically deviant, she does not exhibit other criteria of being abnormal such as personal distress and impaired functioning. Hence, she can’t be considered as being abnormal.

Question 2.
It is very rare to find a person possessing all the criteria of a well-adjusted person.
Answer:
True
Explanation: A well-adjusted person has 5 main criteria. Some people may show some criteria while others may be high on some other criteria.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 3.
Over-expectation from the parents can lead to a lack of self-confidence.
Answer:
True
Explanation: If parents expect their child to do more than what he/she is capable of, they are pushing their child too hard. It will lead to anxiety, underperformance, and consequently, low self-confidence.

Question 4.
A well-adjusted individual does not encounter failure at all.
Answer:
False
Reason: A well-adjusted individual will encounter failure. But he knows that success or failure is temporary. He understands that hard work and consistency is important in the long run.

Question 5.
Abnormality is always hereditary.
Answer:
False
Reason: Apart from being hereditary, the abnormality could also result due to environmental factors (i.e. nurture) including social, cultural, and psychological factors.

Question 6.
Self-awareness is being passionate about fulfilling one’s needs.
Answer:
False
Reason: Self-motivation is being passionate about fulfilling one’s needs while self-awareness is the ability to recognize one’s own emotions, strengths, and weaknesses.

Question 7.
Social skill is the ability to interact well with others.
Answer:
True
Explanation: Social skills include active listening, effective verbal and non-verbal communication, leadership, etc. which are all necessary to interact well with others.

Question 8.
Openness to new experience leads to dangerous situations, therefore, it should not be encouraged
Answer:
False
Reason: Openness to new experience is the trait of a well-adjusted individual and enables him to deal with strangers and new places comfortably. Simply being open does not lead to dangerous situations.

1C. Identify the odd item from the following.

Question 1.
Self-awareness, Self-regulation, Self-motivation, Sympathy, Social skills
Answer:
Sympathy

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 2.
Cognitive perspective, Humanistic perspective, Psychoanalytic perspective, Motivational perspective
Answer:
Motivational perspective

Question 3.
Failure, High anxiety, Negative thoughts, High self-esteem, Self-blame
Answer:
High self-esteem

Question 4.
Deviance, Personal distress, Low intelligence, Impaired functioning
Answer:
Low intelligence

1D. Match the following.

Question (i).

A B
1. The emphasis upon the unconscious mind a. Biological
2. Survival and reproduction are the purpose of mental processes b. Cognitive
3. Chemical changes in the brain c. Psychoanalytic
4. Abnormal behaviour is due to faulty learning d. Evolutionary
5. Emphasis upon thinking process e. Sociocultural

Answer:

A B
1. The emphasis upon unconscious mind c. Psychoanalytic
2. Survival and reproduction are the purpose of mental processes d. Evolutionary
3. Chemical changes in the brain a. Biological
4. Abnormal behaviour is due to faulty learning e. Sociocultural
5. Emphasis upon thinking process b. Cognitive

Question (ii).

A B
(i) Stress and storm (1) Used for gaining more power
(ii) Body image (2) Adolescence
(iii) Bullying (3) May lead to a lack of self-confidence
(iv) Low self-esteem (4) Childhood
(v) Nurturance (5) Anorexia
(6) Feminine trait

Answer:

A B
(i) Stress and storm (2) Adolescence
(ii) Body image (5) Anorexia
(iii) Bullying (1) Used for gaining more power
(iv) Low self-esteem (3) May lead to lack of self-confidence
(v) Nurturance (6) Feminine trait

2. Answer the following questions in 35-40 words each.

Question 1.
Explain the concept of realistic perception of self with an example.
Answer:

  • This is an important hallmark of a well-adjusted individual.
  • It involves a good understanding of one’s own emotions, strengths, and weaknesses.
  • It ensures that personal lives are effectively managed.
  • Example: Neha likes singing and knows that she has an excellent voice (her strength). Hence, she joins the singing classes to improve herself.

Question 2.
What is emotional intelligence? Mention the components of emotional intelligence.
Answer:

  • Mayer and Salovey define emotional intelligence as ‘the ability to perceive one’s own and others’ emotions, to discriminate among them, and to use that information to guide one’s thinking and action’.
  • It has five components, viz. self-awareness, self-regulation, self-motivation, social skills, and empathy.
  • If a person is on the low end of the emotional intelligence spectrum, he or she may have a condition known as alexithymia. Alexithymia is the inability to understand or express emotions.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 3.
What are the conditions that lead to low self-esteem? Give examples.
Answer:
Some conditions that cause low self-esteem are:

  • Overly harsh or critical parents
  • Negative peer influence
  • Consistent poor academic performance
  • Stressful or traumatic events
  • Abusive relationships
  • Negative thoughts and high anxiety

Example: Anmol’s parents would always criticize them if he tried doing something new. As a result, he started feeling that he is good for nothing and developed low self-esteem.

Question 4.
What is the significance of openness to new experiences?
Answer:
Openness to new experiences is a trait of a well-adjusted individual. It is only due to being open that one can:

  • try out different experiences
  • can explore new places
  • be confident about himself or herself
  • talk and meet strangers comfortably
  • can take risks regarding unknown things
  • is confident in voicing honest opinions

Question 5.
How does self-awareness affect psychological well-being?
Answer:
Self-awareness is the ability to recognize and understand your own emotions, capabilities, actions, and moods. It affects our psychological well-being since:

  • being aware of one’s own capabilities makes it easy to use strengths effectively and improve upon weaknesses.
  • because of self-awareness, one can learn to avoid impulsive behaviour and take better care of mental health.

Question 6.
What is the significance of self-motivation?
Answer:

  • Self-motivated individuals are eager to take action without needing any external reward or push.
  • If one is self-motivated, he would rise against all the inhibitions and hesitations.
  • It is significant because it not only makes one determined but it also keeps one going despite setbacks and hardships.

Question 7.
Enlist the qualities a person requires for having healthy relationships with others.
Answer:
Well-adjusted individuals have healthy relations with others. It requires qualities such as:

  • Being honest
  • Being fair
  • Being respectful
  • Being non-threatening
  • Being a responsible parent
  • Having shared responsibilities
  • Having an economic partnership
  • Having trust and offering support to others

Question 8.
How important are social skills? Give example.
Answer:
All human beings are social animals and hence, social skills play an important role in their lives.

  • These skills are required to effectively interact with each other.
  • They help us to co-exist with others and create harmonious relationships.
  • Some examples of social skills are effective communication, conflict resolution, and cooperation.
  • Example: Excellent communication skills enabled Mahesh to develop healthy relations with colleagues and relatives.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 9.
State the biological perspective to abnormal behaviour with an example.
Answer:
According to the biological perspective,

  • Biological and physiological factors cause abnormality.
  • The abnormality is treated as a disease or mental illness. It is diagnosed through symptoms.
  • Abnormality is cured through treatment that involves drugs and hospitalization.
  • Example: Abnormalities caused due to chemical imbalance in the brain may be cured through medicines.

Question 10.
Explain the humanistic perspective.
Answer:
According to the humanistic perspective,

  • People are intrinsically driven to do better and advance their own growth.
  • Abnormal behaviour is learned due to blocked personal growth.
  • Abnormalities can be corrected by creating conditions that enable them to grow, change, and develop to their fullest possible potential.

Question 11.
Explain the sociocultural perspective to abnormal behaviour.
Answer:
According to the sociocultural perspective,

  • Abnormal behaviour is learned within a social context. It includes social norms and one’s family, friends, society, etc.
  • Abnormalities can be attributed to problems in cultural values and belief systems.
  • Example: A young girl may follow a strict diet, even when it is not good for her health because being slim is associated with attractiveness in her culture.

3. Compare and contrast.

Question (i).
Realistic perception of self and Unrealistic perception of self
Answer:

  • Realistic perception of self means being aware of our own strengths and weaknesses. It also means using strengths for the betterment and modifying the weaknesses. Realistic people do not get upset when they are confronted with failure. All of this enables them to deal with life more effectively.
  • Unrealistic perception of self makes an individual expect things that are not feasible. They are likely to face dejection, frustration, and sadness. They may not be able to recognize their own strengths and may feel incompetent. They even blame others for their shortcomings.

Question (ii).
Openness to new experiences and Inhibitions/Fear of new experiences
Answer:

  • People who can comfortably deal with strangers and are confident in voicing honest opinions are open to new experiences. They are eager to take on life, try out new trends, go to new places and reach out to people from different backgrounds, communities, and locations. They are confident and dare to take risks regarding unknown experiences,
  • People who are fearful and hesitant are not open to changes, new places, new people, and experiences. These individuals find it hard to deal with changes and get anxious while interacting with strangers.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question (iii).
High self-esteem and low self-esteem
Answer:

  • People having high esteem like themselves and radiate confidence and assertiveness. They are happy with themselves and are liked by all because of it. It also results in better relationships. Well-adjusted individuals have high self-esteem.
  • People with low self-esteem don’t think that they are loved, valued, or considered worthy. They don’t have a positive image of themselves. This leads to anxiety and poor performance. Consequently, they indulge in self-blame and continue to feel incompetent.

Question (iv).
Sympathy and Empathy
Answer:

  • Sympathy is feeling sorry and having pity for the hardship or losses that another person faces. In this case, an individual genuinely feels bad for the hardships or grief faced by others.
  • Empathy is putting yourself into someone else’s shoes. It refers to understanding the situation from that person’s point of view and actually feeling his pain. Hence, empathy is a more intense level of emotion than sympathy.

For your understanding

Empathy Sympathy
Meaning Understanding what others are feeling because you have either experienced it yourself or can put yourself in their shoes. Acknowledging another person’s emotional problems and trying to comfort or console them.
Example Situation: Tushar fails in his preliminary exam and is upset.
Empathetic response by Tushar’s friend: “I have been through this situation in the past so I know how it feels. But don’t worry. You can do better in final exam.” Sympathetic response by Tushar’s friend: “I understand your situation. But failure is a part of life. So instead of being upset, let’s focus on how you can do better in final exam.”

Question (v).
Behavioural perspective and Humanistic perspective to abnormality
Answer:

  • Behavioural perspective looks at the observable behaviour of an individual. This perspective believes that ineffective learning and conditioning can lead to abnormal behaviour. Behavioural psychologists treat such abnormalities with the help of the principles of reinforcement and punishment.
  • Humanistic perspective looks at the ways human beings are driven to grow, change and develop into the best versions of themselves. This perspective believes that abnormalities get formed when personal growth is blocked. Humanistic psychologists treat such abnormalities by creating conditions that allow positive and healthy growth of the individual.

4(i). What are the possible consequences of

Question (a).
Geeta is more interested in literature but being the only daughter of a well-established orthopaedic surgeon having his own hospital, she is under pressure of choosing medical profession as her career.
Answer:

  • It is possible that Geeta follows her father’s footsteps and becomes a doctor. But she will not be self-motivated and may resent her work. She is likely to get frustrated when encountered with setbacks.
  • It is also possible that she (firmly but gently) tells father of her interest in literature and convinces him that literature is where her heart and passion lies. In this case, she will not blame anyone during rough times and will be motivated to resolve the difficulties that may arise.

Question (b).
Sujata is an intelligent girl but she is extremely sensitive to criticism and perceives herself as less competent.
Answer:

  • Sujata will keep getting disheartened when criticised. There are chances that this may happen frequently since she has no control over other’s behaviour.
  • If faced with constant criticism, she will continue to feel less competent and may get trapped in the vicious cycle of low self-esteem.

Question (c).
Trisha is not able to make friends. She cannot initiate conversation with strangers at all. She is placed as a leader of one of the teams for campus-cleaning.
Answer:

  • Her team mates may make fun of her and won’t look up to her as a leader. She may end up taking the cleaning activity all by herself and the team will not listen to her at all.
  • However, if she views it as a challenge and responds positively to the situation, she might be able to overcome her weaknesses.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

4(ii). What will you do if?

Question (a).
You see your best friend bullying your classmate.
Answer:

  • I will intervene and use my friendship to stop the bullying immediately. Then I will talk to my friend to figure out why she was resorting to bullying.
  • I will also try to make her understand why engaging in such behaviour is wrong.

Question (b).
You see a girl in your class who is not included in many of the class room activities, who does not have any friend and who faces rejection from everyone.
Answer:

  • I will myself go up to her and befriend her. I will also help her in whatever way I can. I will not worry if others isolate me for helping her as I can understand that she needs support.
  • I will try to talk to others at a later point in time to change their view towards her.

Question (c).
You got very less marks in the First Terminal exam.
Answer:

  • I will certainly be very disappointed and upset at first. But then I will try to analyse the causes of getting such less marks.
  • I will study more, waste less time in leisure activities, pay more attention in class and clarify my doubts immediately. It will help me to get good marks in the next term.

Question (d).
You are very much interested in taking part in a drama to be performed in the annual function of your college, but you are not selected.
Answer:

  • I will feel disappointed for some time. But then I will try to analyse the reasons behind getting rejected and work on it.
  • I will also join a work shop to hone my skills and practice hard to win similar parts in future.

5. Write short notes in 50-60 words each.

Question 1.
Criteria of well-adjusted person
Answer:

  • A well-adjusted person is a well-balanced person, both mentally and emotionally.
  • They see themselves as well as the world as worthy and valuable.
  • The criteria of a well-balanced individual are:
    • Openness to new experiences
    • Healthy relationships
    • High self-esteem
    • Emotional intelligence
    • Realistic perception of self and the world
  • Besides these criteria, other criteria of well-adjusted individuals include expressing gratitude, kindness and sharing as well as accepting success and failure as a part of life.

For your understanding
Characteristics of maladjusted individuals: They get panic attacks, hesitate to meet new people, resist changes, are withdrawn, shy and self-conscious, throw tantrums, feel isolated, have poor relations and low self-esteem.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 2.
Criteria of abnormal behaviour
Answer:

  • Abnormal behaviour is disturbing (socially unacceptable), distressing and maladaptive (self-defeating).
  • There are three major criteria of abnormal behaviour:
    • Personal distress: Feeling very low or depressed on continuous basis.
    • Deviance: Behaviour going against the laws or set social and statistical standards.
    • Failure to function normally: Day-to-day functioning is impaired.
  • It is wrong to judge someone as being abnormal based on only one criterion. All above criteria need to be considered.

Question 3.
Psychoanalytic perspective
Answer:

  • The psychoanalytic perspective focuses on unconscious mind, early childhood experiences and interpersonal relations to explain human behaviour.
  • According to this perspective, abnormal behaviour is the consequence of anxiety produced by unresolved and unconscious conflicts of childhood.
  • This perspective tries to treat people displaying abnormal behaviour by focusing on identification and the resolution of these conflicts.
  • Freud has also explained that certain unconscious motives or conflicts have base of primitive sexual and aggressive instincts.

Question 4.
Cognitive perspective
Answer:

  • The cognitive perspective says that individuals behave abnormally due to faulty thinking patterns. They may hold certain false assumptions and behave in accordance with them.
  • This perspective tries to treat people displaying abnormal behaviour by helping them to adapt to new thinking process.
  • This is done by unlearning maladaptive thinking and replacing it with more adaptive one.

Question 5.
Bullying
Answer:

  • Adolescents may face the problem of being bullied. They may be humiliated or fall victim to other people’s aggression when they have less power or prestige.
  • Bullying can be physical, emotional or mental. The intent of bullying is always negative.
  • Almost all bullies are victims themselves. Both, bullies and victims are low in self-esteem.
  • Bullies are aggressive, ruthless manipulators who don’t trust others, break their promises and take unfair advantage of others. They respond to stress with aggression or by engaging in self-destructive behaviour.
  • Boys generally indulge into bullying to gain power while girls indulge in bullying when they are depressed.

Question 6.
Sexual orientation
Answer:

  • Sexual orientation refers to an individual’s pattern of physical and emotional arousal, towards another person.
  • Heterosexual individuals are attracted to persons of the opposite sex.
  • Homosexual individuals are attracted to persons of the same sex.
  • Bisexual individuals are attracted to person of both sexes.
  • During adolescence, sex hormones become active and adolescents become conscious of their sexual orientation.
  • Adolescents who are homosexual or bisexual become confused when they realise that their sexual orientation is different from their peers.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 7.
Emotional intelligence
Answer:

  • The term emotional intelligence was coined by Michel Beldoch in 1964.
  • Emotional intelligence is explained as the ability to understand and manage one’s own and others’ emotions.
  • Its proposed abilities include perceiving, using, understanding and managing emotions appropriately.
  • Having high emotional intelligence is one of the criteria of well-adjusted individuals.
  • Individuals with high emotional intelligence are balanced. They do not easily get panic or nervous. They are able to handle stressful situations effectively.

6. Case study

Read the following case carefully and answer the questions based upon that.

Pritha was a merit holder girl from a middle class family. She joined a college where majority of students were from a rich background. Although she was capable of following lectures and was doing well in her studies, she felt lonely as she could not get acceptance in the groups of her classmates coming from affluent families. She tried to dress like them, and started asking for extra pocket money from her parents. Her classmates joked at her dressing sense. She could not tolerate the mockery and stopped going to the college.

Instead, she started spending time visiting strange places like public parks, railway stations and shopping malls. She did not appear for any of her exams. Her parents were unaware of all these things and on asking about college or studies, Pritha answered them without revealing the truth. It the end of the year, her parents received her report card by post from her college with a remark that ‘Your ward has to take College Leaving certificate.

On confronting Pritha, she became violent and started damaging the furniture uttering bad words about the middle class people and there after her utterance was incomprehensible for her parents. This continued for a very long time.

Question 1.
Which problems did Pritha face in her college?
Answer:
Pritha got isolated with her peers because of her economic background. She also faced bullying as her affluent classmates made fun of her dressing sense. She felt humiliated and unaccepted. It affected her mental well-being. She probably felt that she could not discuss those issues at her home and felt helpless.

Question 2.
Could Pritha, according to you, have avoided her condition of feeling lonely?
Answer:
It was a very difficult and disturbing phase in her life. But she could have talked to her teachers and parents and sought their guidance. She could have also shared everything with her friends outside college.

Question 3.
What would you do if you were in Pritha’s place?
Answer:
I would have talked to my parents and discussed everything openly. My parents would have surely guided me on how to deal with peers coming from different backgrounds and provided me their thoughts and ideas. I would also have concentrated more on my studies.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 4.
Do you think Pritha should have spoken to her parents about her feelings at college? If yes, how it would have helped her?
Answer:
Yes, Pritha should have spoken and informed her parents of what was going on in her college life, instead of lying about going to college. Lying was only multiplying her troubles. They could have given her support and also maybe talked to her teachers and managed to get the situation under control.

7. Answer the following questions in 150-200 words.

Question 1.
What are the criteria of abnormal behaviour? Explain with examples.
Answer:
All of the following criteria need to be considered together in order to determine if a person displays abnormal behaviour.

Personal distress: Personal distress refers to subjective feeling of an individual in response to persons and events creating extreme discomfort. It includes feeling very low, depressed, facing problems like social withdrawal, e.g. A person feeling down and sad every day is considered abnormal.

Deviance: Behaviour against the set laws of the state or behaviours different than standard social and statistical patterns exhibited by most of the people, e.g. Deliberately engaging in behaviour which is harmful to self and others.

Failure to perform functions normally: Day-to-day functioning getting impaired, i.e. inability to fulfil appropriate and expected roles in family, social and work related situations, e.g. A person is not able to perform his daily chores and fulfil work commitments due to lethargy.

Question 2.
What are the causes of abnormal behaviour?
Answer:
There are primarily seven psychological perspectives of abnormal behaviour. All these perspectives indicate different factors as the causes of abnormal behaviour. Additionally, Stress Diathesis Model and Biopsychosocial Model also discuss the causes of abnormal behaviour.
The causes of abnormal behaviour can be explained as follows:

  • Biological perspective: Abnormal behaviour results due to chemical imbalance or physiological factors.
  • Sociocultural perspective: Abnormal behaviour is learnt within the social context.
  • Behavioural perspective: Abnormal behaviour is learnt due to ineffective learning and conditioning.
  • Evolutionary perspective: Abnormal behaviour is an exaggerated form of adaptive action.
  • Humanistic perspective: Abnormal behaviour arises from blocked personal growth.
  • Psychoanalytic/Psychodynamic perspective: Abnormal behaviour is due to unconscious and unresolved conflicts.
  • Cognitive perspective: Abnormal behaviour arises due to false assumptions and faulty thinking.
  • Stress-Diathesis model: Disorder = Nature (Biological and genetic factors) + Nurture (Life experiences)
  • Biopsychosocial model: Abnormal behaviour = Biological factors + Psychological factors + Sociocultural factors

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Question 3.
Describe the challenges faced by adolescents with examples.
Answer:
Adolescence is the transitional period associated with a number of physiological and psychological changes. It is called the period of ‘storm and stress’. Since adolescents are neither children nor adult, they face many challenges as follows:

  • Sexual orientation issues: Adolescents who are homosexual or bisexual become confused when they realise that their sexual orientation is different from peers.
  • Gender identity issues: Some adolescents may show traits typically thought to be of the other gender. If they are not allowed to behave in a way that is natural to them, they become rebellious.
  • Bullying issues: Adolescents may face the problem of being bullied. They may be humiliated or fall victim to other people’s aggression when they have less power or prestige.
  • Other challenges:
    • Self-identity issues since they are neither adult nor children.
    • May feel inferior, shy and have difficulty in mixing with peers.
    • Lack of self-confidence may perceive others negatively.
    • May become conscious about their physical features.
    • May become moody and unpredictable due to hormonal changes.
    • May feel excessive pressure due to expectations of oneself and parents.

Activities

[Note: The answers of activities will be very subjective. The answers provided are for reference. Students are expected to perform these activities on their own.]

Activity 8 (Textbook Page No. 50)

Think about the following situations. Try and apply the criteria for abnormality that you came up with, to these cases and try to judge if they could be called abnormal.

  1. Sameer likes to dress up like girls.
  2. Kushal is confused about his sexual orientation.
  3. After marriage, Shoaib went to live with his in-laws.
  4. Joseph loves to be alone and travels alone.
  5. Delnaz is introvert and does not like to mix with any one.

Answer:

  1. Sameer may be having gender identification issues and must be feeling more feminine than masculine. But I think it is not abnormal.
  2. Kushal may not be aware that there can be heterosexuals, homosexuals and bisexuals and it is perfectly normal to be any of them.
  3. Although usually it is the bride who lives with in-laws after marriage, I don’t think of Shoaib’s behaviour as abnormal. It is just different than a normal social pattern.
  4. If Joseph wants to be alone and travel alone at times, it seems to be alright. Maybe he’s going through a phase of self discovery. However, if this pattern continues for a longer duration and hampers his social relationhips, then it is abnormal as human beings are social beings.
  5. Delnaz can be considered abnormal if she doesn’t like interacting with anyone, including her near ones and family. However, being introvert does not mean someone is abnormal.

Maharashtra Board Class 11 Psychology Solutions Chapter 5 Healthy Me – Normal Me

Activity 11 (Textbook Page No. 54)

You are all adolescents now. Think about how you are today and how you were in 5th/6th standard. Make two columns and note down the changes you see in these five domains: your self-image, your confidence, relationships with your parents, physical changes, and importance of friends in your life.
Answer:

Self-image Has become more positive
Confidence Improved significantly as I know what I am capable of
Relation with parents Continues to be warm and close
Physical changes Increase in height, weight and chainge in overall appearance
Importance of friends Increased importance as we understand each other better

 

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 4 Human Development Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 4 Human Development

1A. Complete the following statements.

Question 1.
The rate of development in each stage is ____________
a. same
b. different
c. slow
Answer:
b. different

Question 2.
Developmental changes occur in ____________ pattern.
a. predictable
b. unpredictable
c. uncertain
Answer:
a. predictable

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 3.
The period between conception to birth is called ____________
a. post-natal
b. perinatal
c. prenatal
Answer:
c. prenatal

Question 4.
____________ period is also known as the period of identity crisis.
a. Childhood
b. Middle age
c. Adolescence
Answer:
c. Adolescence

1B. Match the following pairs.

Question 1.

A B
1. Early childhood a. A single fertilized cell
2. Adolescence b. From the second week to two years after birth
3. Infancy c. Age of questioning
4. Zygote d. Adjusting to the new environment after birth
5. Neonatal period e. Storm and stress

Answer:

A B
1. Early childhood c. Age of questioning
2. Adolescence e. Storm and stress
3. Infancy b. From the second week to two years after birth
4. Zygote a. A single fertilized cell
5. Neonatal period d. Adjusting to the new environment after birth

1C. State whether the following statements are true or false.

Question 1.
Development has a specific and continuous pattern.
Answer:
True

Question 2.
Development proceeds from specific to general.
Answer:
False

Question 3.
Development proceeds from dependency to independence.
Answer:
True

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 4.
All the changes in an individual are due to development.
Answer:
False

1D. Identify the odd item from the following.

Question 1.
Zygote, Neonate, Embryo, Foetus
Answer:
Neonate

Question 2.
Early childhood, Neonate, Foetus, Infancy
Answers:
Foetus

2. Explain the following concepts.

Question 1.
Explain characteristics of human development.
Answer:
The characteristics of human development are as follows:
i. Development follows a specific pattern:
Like other species, human beings follow a specific pattern and sequence of development in the prenatal and postnatal periods. They may skip a particular stage, but the order or pattern will remain the same. The specific pattern is observed in behavioral development as well. Sexual development also starts at a specific age.

ii. Development takes place in a specific direction: Development takes place during the prenatal and postnatal stages based on the two principles of development, viz. Cephalocaudal principle (development proceeds from the head to toe) and Proximodistal principle (development proceeds from the center of the body to outward).

iii. Development is continuous: There are various stages of the human life span like prenatal, infancy, early childhood, late childhood and adolescence, early youth, adulthood, and old age. One stage of development lays the foundation for the next stage. The rate of development varies across stages.

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

iv. Development proceeds from general to specific: The infant’s first motor movements are very generalized; like reflexes and non-directional waving arms or kicking before being able to reach or crawl towards an object. The child uses his full hand before developing finger dexterity.

v. There are individual differences in development: Although the pattern and sequence for growth and development are usually the same for all, the rate at which every individual reaches that stage is different. Some individuals attain a particular stage very early while others mature late.

vi. The rate of development is different for different body parts: The child first develops control over his neck then raises his head resting on his chest, then sits, crawls, and finally starts walking.

vii. Development leads to integration: A child starts producing sounds first, then monosyllable, then words, then sentences, and then complex sentences. This is how development leads to integration. In this process, physical and mental growth does not occur simultaneously.

viii. Behavioural problems are normal for a particular stage: There are certain behavioural patterns observed in every stage. Any variation in that pattern need not necessarily be labelled as abnormal. This is because some behavioural patterns perceived as problems by parents may subside with age.

ix. Development is predictable: The rate of development is fairly constant for every child. So, it is possible to predict a child’s development.

x. The child develops as a unified whole: Physical and mental development, as well as socio-cultural factors, influence each other and in turn, affect the development of an individual as a whole.

Question 2.
Why is the prenatal period the most crucial period in development?
Answer:
A period between conception till birth is called a prenatal period. It is the most crucial period in development due to the following factors:

  • Heredity serves as the foundation for later development.
  • Favourable conditions in the mother’s womb can foster the development of hereditary potentials while unfavourable conditions can block their development.
  • Sex determination takes place during the first three months of life.
  • Proportionally faster growth and development take place during the prenatal period as compared to an individual’s entire life.
  • Failure to take proper care of the mother may lead to physical and psychological hazards to the unborn child.

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 3.
What are the developmental tasks?
Answer:
There is a set of expectations about changes in an individual at a certain age based upon the norms of development. This set is known as a developmental task. The developmental tasks at different stages are as follows:

  • Prenatal stage: In this stage, the child is completely dependent on the mother for nourishment. There is the rapid development of physical systems and organs.
  • Neonatal stage: The child is still dependent on the mother and there is the development of initial reflexes.
  • Infancy: This stage is associated with motor, cognitive and psychosocial development as well as rapid physical development.
  • Early childhood: Although physical development is comparatively slow, we observe increased cognitive and linguistic development. It is also associated with the beginning of socialization.
  • Late childhood: School provides an opportunity for overall development during this stage. There is the development of physical, mental, cognitive, and psychosocial abilities.
  • Adolescence: Rapid visible physical changes occur in this stage. Also, the concept of self-identity and career-related awareness begins to develop.
  • Early adulthood: Individual completes education and chooses his career. He also chooses a suitable partner and gives importance to family responsibilities.
  • Late adulthood: There are more family and occupational responsibilities. Adults in this stage take responsibility of their parents. Also, women go through menopause and men experience andropause.
  • Old age: Retirement life begins in this stage. Leisure is forced on people due to old age. People also experience many health problems. Also, they start thinking about death.

Question 4.
Describe the neonatal stage.
Answer:
The neonatal stage is the period from birth to two weeks.

  • During this period, a newborn starts adjusting to the external environment, e.g. outside temperature.
  • The neonate sleeps for around 18 to 20 hours.
  • The characteristics of the neonatal stage are as follows:
    • It is the shortest of all developmental periods.
    • It is the time of radical adjustment.
    • It can be a hazardous period, both physically (because the neonate has to make radical adjustments to the new and different environment) and psychologically (because it is the time when the attitudes of significant people in neonate’s life will have an effect on his development).

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 5.
What are the characteristics of early childhood?
Answer:
The early childhood stage extends from two years to about six years. The characteristics of early childhood are as follows:

  • Parents call this age ‘toy age’ as children play with toys.
  • Educators call this age ‘preschool age’ as the child starts going to preschool.
  • Psychologists term this age as ‘pre-gang age’ as in the previous stage the child plays alone and does not share his toys but now he starts mixing around.
  • Children in this stage experience stranger anxiety or separation anxiety.

Question 6.
Write the characteristics of late childhood.
Answer:
The late childhood stage ranges from six years to 11 years of age. The characteristics of late childhood are as follows:

  • Children in this stage are curious by nature and experiment with new ideas. They are not satisfied with lame answers. For many parents, late childhood is a troublesome age.
  • Educators regard late childhood as a critical period in the achievement drive. According to educationalists, this is the age of skill development.
  • For psychologists, late childhood is the gang age. During this stage, boys and girls make their separate gangs.

Question 7.
Describe the problems during adolescence.
Answer:

  • Internet addiction: Adolescents indulge more in social media (WhatsApp, Facebook) and online games. Their addiction to the internet due to these applications results in problems like lack of concentration and social interaction.
  • College dropouts: Some adolescents may leave college before completing their graduation due to financial or academic problems.
  • Identity crisis: Adolescents are confused about ‘who they are because they are neither children nor adults. Parents treat them differently in different situations. Some adolescents pursue a psychological moratorium, i.e. a period in which they take time off from the upcoming responsibility of adulthood to explore various roles and possibilities.
  • Depression: When adolescents experience a breakup in a relationship, failure in exams, or death of a loved one, they experience feelings of sadness, loss, or grief. Sometimes, they feel so hopeless that they stop following normal routines. Depression could be due to genetic and environmental factors.
  • Suicide: Although girls attempt suicide more frequently than boys, the rate of adolescent suicide is higher for boys. This is because boys use violent means to commit suicide. Social inhibition, perfectionism, and a high level of stress/anxiety create a higher risk of suicidal attempts.

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 8.
Write a note on adulthood.
Answer:

  • Adulthood ranges from 21 years to 40 years.
  • The prime concerns for a young adult are personal career choice and economic independence.
  • At this stage, an individual tries to settle in his life. Men and women take responsibility for their families and start earning money.
  • The characteristics of Adulthood are as follows:
    • Adulthood is the age of settling down. Once they are legally mature, adults have to shoulder their own responsibility.
    • Adulthood is the reproductive age.
    • Problems faced in this stage are different from those faced at earlier stages.
    • An adult tries to establish himself in life and so, experiences tension.
    • As adults start working and get married, they don’t get time to mingle around with their friends like earlier.
    • They have to adjust to new patterns of life.
    • Adulthood is a time of changing experiences and changes in the value system.
    • Early adulthood is the time of adjustment to the new lifestyle.

Question 9.
Explain the adjustment problems in middle age.
Answer:
The middle age or late adulthood period ranges between 40 years to 60 years. The adjustment problems in this stage are as follows:

  • It is a time of transition where both men and women leave their physical and behavioural characteristics of adulthood.
  • It is a dreaded period due to mental and physical deterioration. The capacity of reproduction, as well as mental and physical capacities, slowly begins to decline.
  • It is the time of more responsibilities. They assist the next generation to be competent.
  • It is a time of stress as there is a radical financial burden.
  • People in this stage may experience nervous breakdown and anxiety.
  • It is the time of ‘Empty Nest’ as children go out for higher education, job or get married.

Question 10.
Discuss the application of the principles of human development in different fields.
Answer:

  • There are two principles of development, viz. Cephalocaudal principle (development proceeds from the head to toe) and Proximodistal principle (development proceeds from the center of the body to outward).
  • These principles prove helpful to doctors while evaluating the development of an individual. Further, the application of the cephalocaudal principle can also be seen in corporate organizations where decisions taken by the board of directors at the top level are communicated to and implemented by managers and workers. Similarly, the proximodistal principle applies to the development of cities from the center to the outward peripheries.

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

3. Compare and contrast.

Question 1.
Growth and development
Answer:

  • Growth is quantitative change and it refers to physical changes. On the other hand, development is qualitative change and it includes physical as well as mental changes.
  • Growth is perceived through changes in size, weight as age advances and it is a part of development. Development is perceived through changes in behaviour and it is all-inclusive in nature.

Question 2.
Maturation and development
Answer:

  • Maturation refers to a natural unfolding of the genetic potential at the appropriate time in the course of development. Maturation denotes changes in specific behavioural patterns while development denotes qualitative changes.
  • Maturation changes are genetic and cannot be speeded up. On the other hand, development results from an interaction between maturation and exposure to training as well as environmental factors.

Maharashtra Board Class 11 Psychology Solutions Chapter 4 Human Development

Question 3.
Prenatal and post-natal stages of development
Answer:

  • A period between conception till birth is called the prenatal period while the period after birth till death is called a post-natal period.
  • The stages in prenatal period are the germinal stage, embryonic stage, and fetal stage while the post-natal period consists of a neonatal stage, early childhood, late childhood, adolescence, early adulthood, late adulthood, and old age.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 3 Self Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 3 Self

1A. Complete the following statements.

Question 1.
The self-concept begins to form when ___________
a. a one and half-year-old child recognizes her image in the mirror
b. an infant is able to distinguish his body from the rest in his surrounding
c. a child recognizes his/herself as a boy or a girl
Answer:
b. an infant is able to distinguish his body from the rest in his surrounding

Question 2.
According to Carl Rogers, every individual strives for ___________
a. achievement
b. self-actualization
c. status in society
Answer:
b. self-actualisation

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 3.
Self-esteem is a sense of self-worth that depends upon ___________
a. actual performance of an individual
b. self-perception of one’s own performance
c. other people’s performance perception of one’s
Answer:
b. self-perception of one’s own performance

Question 4.
Ability to monitor our actions and feelings, is called ___________
a. self-regulation
b. self-awareness
c. self-efficacy
Answer:
a. self-regulation

1B. State whether the following statements are true or false and give a reason for your answer.

Question 1.
Congruence between the real self and ideal self is an indicator of good mental health.
Answer:
True
Explanation: Congruence between the real self and ideal self leads to a greater sense of self-worth and thereby, indicates good mental health.

Question 2.
Namrata aspires to become a pilot but she should not be encouraged because one must choose a profession appropriate to their gender.
Answer:
False
Reason: It is wrong to think that profession should be chosen based on one’s gender. Gender roles are diluting in modern times.

Question 3.
People with high self-esteem are not necessarily the ones who are always successful.
Answer:
True
Explanation: People with high self-esteem may not always succeed. But they have high self-worth even when they encounter failure.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 4.
Accepting mistakes helps improving self-esteem.
Answer:
True
Explanation: Accepting mistakes enables a person to take steps to correct them in the future and thereby, improve self-esteem.

Question 5.
Self-awareness is a necessary attribute to have a healthy self-concept.
Answer:
True
Explanation: Self-awareness enables a person to have realistic perception of oneself and thereby, helps in the formation of healthy self-concept.

1C. Identify the odd item from the following.

Question 1.
Goal-orientation, Internal values, Feeling of superiority, Positivity
Answer:
Feeling of superiority

Question 2.
Fear of risks, Fear of uncertainty, Self-confidence, Impression management
Answer:
Self-confidence

Question 3.
Self-indulgence, Self-awareness, Self-efficacy, Self-esteem
Answers:
Self-indulgence

1D. Match the following pairs.

Question 1.

A B
1. Rentsch and Heffener model a. A sense of self-worth
2. Carl Rogers b. Monitoring one’s own actions
3. Congruence between ideal and real self c. Confidence in one’s own abilities to complete a task
4. Self-esteem d. Categories of self-concept
5. Self-regulation e. Fully functioning person
6. Self-efficacy f. Good mental health

Answer:

A B
1. Rentsch and Heffener model d. Categories of self-concept
2. Carl Rogers e. Fully functioning person
3. Congruence between ideal and real self f. Good mental health
4. Self-esteem a. A sense of self-worth
5. Self-regulation b. Monitoring one’s own actions
6. Self-efficacy c. Confidence in one’s own abilities to complete a task

2. Answer the following questions in around 35-40 words each.

Question 1.
How do we develop a concept of our ‘self’ as we grow?
Answer:

  • Till six months: A child is unaware of himself.
  • As the child grows, he develops a distinction between ‘me’ and ‘what is not me’.
  • By the age of two: The child becomes aware of general expectations.
  • By the age of three: The child starts recognizing himself and others as boys or girls.
  • At the age of five-six: The child begins to compare himself to others.
  • Between the age of three-twelve: Self-concept is based on developing talents and skills.
  • Adolescence: It involves perspective taking, i.e. understanding other’s points of view.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 2.
Explain the sex identity and sex role as a part of the self-concept.
Answer:

  • Gender identity is the perception of oneself as male or female. It is the biological aspect of self-concept.
  • Gender role is psycho-social in nature as it is determined by the family atmosphere and cultural influences through which the child learns. It is an acquired attribute of self-concept.

Question 3.
What are the ways in which we can achieve congruence between the ideal self and the real self?
Answer:
Some of the ways in which we can achieve congruence between the ideal self and the real self are:

  • Recognizing one’s own potential
  • Taking steps to achieve one’s full potential
  • Having trust in one’s own competence
  • Being positive and rational

Question 4.
Why is the congruence between the ideal self and the real self is very significant to enjoy psychological well-being?
Answer:

  • High congruence between the real self and ideal self leads to the formation of accurate self-concept.
  • It also results in a greater sense of self-worth and contributes to a healthy productive life.
  • Hence, congruence between the ideal self and the real self is significant to enjoy psychological well-being.

Question 5.
What is meant by self-esteem?
Answer:

  • Self-esteem is a general evaluation of an individual along a dimension. It is the respect one has for himself.
  • According to Seligman, ‘self-esteem is your overall evaluation of your worth as a person, high or low, based on all positive and negative self-perceptions.

Question 6.
Describe the characteristics of individuals with high self-esteem.
Answer:
Some characteristics of individuals with high self-esteem are as follows:

  • Positive
  • Responsible
  • Committed to goals
  • Strong internal values
  • Genuine and forgiving
  • Desire for self-improvement

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 7.
What are the ways to improve one’s self-esteem? Give example.
Answer:

  1. Some ways to improve one’s self-esteem are as follows:
    • Eliminate negative self-talk
    • Recognize your strengths
    • Recognize self-worth
    • Accept mistakes
    • Accept rejection
  2. e.g. When Neha accepted rejection in interviews as a part of life, she started looking at it in a positive way. This improved her self-esteem.

Question 8.
What are the characteristics of individuals with self-efficacy? Give examples.
Answer:

  • Individuals with high self-efficacy have accurate self-evaluation and are willing to take risks. They are confident and experience a sense of accomplishment. e.g. Emerging entrepreneurs often have high self-efficacy.
  • Individuals with low self-efficacy fear uncertainty and failure. They are afraid to take risks. e.g. After losing five games in a row, players in the football team suffered from low self-efficacy.

Question 9.
What is self-image?
Answer:

  • Self-image is a personal view or mental picture that we have of ourselves. It is a collection of an individual’s assets (strengths) and liabilities (weaknesses).
  • Body image, i.e. how we think, feel, and react to our physical attributes, is also a part of self-image.

Question 10.
What are the ways to regulate self? Give examples.
Answer:

  1. Some ways to regulate self are as follows:
    • Being aware of one’s own actions
    • Being able to evaluate the impact of one’s actions
    • Being able to predict others’ reactions
  2. e.g. When Aditya realized that his anger outbursts scare his toddler, he felt guilty and decided to stop it. He used anger management techniques to regulate himself during such situations.

3. Compare and contrast

Question 1.
Ideal self — Real self
Answer:

  • The ideal self is what we want to be while the real self is what we actually are.
  • The ideal self represents our dynamic ambitions and goals. It comprises of some goals which are beyond our reach. On the other hand, the real self is our inner personality. It may not be perfect but it is our real part.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 2.
Private self — Objective self-awareness
Answer:

  • The development of the private self takes place between the age of five to six while objective self-awareness develops during adolescence.
  • Private self begins to develop when children learn that they can lie and keep secrets. There is the hidden side of the self which includes thoughts, feelings, and desires which parents are unaware of. On the other hand, objective self-awareness develops when adolescents seek to become the center of attraction and popularity. To achieve this, they accept a group’s mannerisms and behavioural patterns.

Question 3.
People with high self-esteem and People with low self-esteem
Answer:

  • People with high self-esteem are positive, responsible, genuine, and committed to their goals. On the other hand, people with low self-esteem are negative, need externally oriented goals, and are impatient with themselves as well as others.
  • People with high self-esteem have strong internal values and forgiving nature. They continuously seek to improve themselves. Conversely, those with low self-esteem are unhappy and experience anxiety. They may also have a superiority or inferiority complex.

4. How will you deal with the following situations if it were you in those situations?

Question (a).
Grishma thinks she is extremely good-looking – which is not true in reality – she aspires to become a star model.
Answer:
I feel few important characteristics to become a star model are confidence, physical fitness, gracefulness, and determination.

I will talk to Grishma about the incongruence between her ‘real self’ (self-image) and ‘ideal self. I will also make her understand that even though she is not extremely good-looking, she can actualize her potential by taking efforts to sharpen her other positive attributes.

Question (b).
Harshad is avoiding places where he has to meet many people as he wears spectacles and he has got lot of pimples.
Answer:

  • I will make Harshad realize that his pimples or spectacles do not define ‘who he is’ or, determine his worth as a person. So, he should not let it impact him in a negative manner.
  • I will also highlight his strengths to make him understand that his ‘self-concept’ should be based on a broader range of aspects than just a body image. I will also encourage him to engage in diverse social interactions to improve his sense of self-worth.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question (c).
Sushma is too short so she does not mix with others.
Answer:

  • I will talk to Sushma that being short is not something she should be ashamed of. Her height is just one aspect of her personality. She should not let it come in the way of her social interactions.
  • I will also motivate Sushma to interact with others so that she can build strong and long-lasting social connections. It will make her feel positive and happy.

5. Write short notes in 50-60 words each.

Question 1.
Gender role
Answer:

  • Gender role is an acquired attribute of self-concept which is psycho-social by nature.
  • It is determined by the family atmosphere as well as cultural influences where the child learns through observation and imitation.
  • e.g. if a girl is assertive and practical, she may be considered to be ‘masculine. This is because these attributes are usually associated with boys.
  • However, gender-based roles are diluting in modern times. Society is approving and accepting these changes with an open mind.
  • e.g. Pt. Birjoo Maharaj, Sanjeev Kapoor, Vikram Gaikwad are famous in female-dominated areas while Phogat sisters, Kalpana Chawla, Kiran Bedi are successful in male-dominated areas.

For your understanding

  • Due to societal expectations, both males and females are expected to behave in certain ways, e.g. men are taught that they should be strong. If they cry, it is considered to be ‘girl’.
  • However, now people have begun to realize that there is nothing wrong if a man takes up a feminine role or a woman behaves in a masculine way.

Question 2.
Carl Rogers’ theory of self
Answer:

  • According to Carl Rogers, every individual has a tendency to actualize himself.
  • Two important concepts related to Roger’s theory are the real self and the ideal self.
  • The real self is what we actually are while the ideal self is what we want to be. The real self has a tendency to actualize himself. But the ideal self may consist of some goals which are beyond our reach.
  • High congruence between the real self and ideal self leads to healthy productive life while a large gap or incongruence between them leads to maladjustment.
  • By trying to achieve our full potential, we strive to be fully functioning individuals, i.e. achieve self-actualization.
  • People who achieve self-actualization are well-balanced, well-adjusted, and interesting.

Question 3.
Self-efficacy
Answer:

  • Self-efficacy is a person’s belief in his ability to accomplish some specific goal or a task.
  • It depends on his trust in his own competency. Competence can vary between different situations, e.g. a person’s self-efficacy may be high in painting but low in cooking.
  • Self-efficacy is based on ‘Social cognitive theory. The theory holds that humans actively shape their lives rather than passively reacting to the environment.
  • Maddux defined self-efficacy as ‘what I believe I can do with my skills under certain conditions.
  • Two factors related to efficacy are outcome expectancies (skills required to complete the goal) and efficacy expectancies (person’s analysis about whether he has those capacities).
  • Self-efficacy can be improved by reinforcing oneself, developing one’s own skillset, choosing a role model for a particular activity and following him, seeking constructive feedback from others, and learning techniques to control one’s own emotional arousal.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 4.
Self-awareness
Answer:

  • Self-awareness is the quality or trait that involves conscious awareness of one’s thoughts, feelings, behaviours, and traits.
  • In order to have a proper self-concept, one must have some level of self-awareness, i.e. understanding that a person has a separate identity from others.
  • According to Piaget, self-consciousness starts emerging between 15-24 months.
  • Self-awareness is necessary before the child becomes aware of being a focus of attention. It enables him to understand what others are feeling. It also enables him to identify what belongs to him and what belongs to others.

Question 5.
Self-esteem
Answer:

  • According to Seligman, ‘self-esteem is your overall evaluation of your worth as a person, high or low, based on all positive and negative self-perceptions. It is the respect one has for himself.
  • A person may have various levels of self-esteem, e.g. a girl may have high self-esteem about her intelligence but may have low self-esteem about her looks.
  • People with high self-esteem are positive, responsible, genuine, and committed to their goals. They have strong internal values and forgiving nature. They continuously seek to improve themselves.
  • On the other hand, people with low self-esteem are negative, need externally oriented goals, and are impatient with themselves as well as others. They are unhappy and experience anxiety. They may also have a superiority or inferiority complex.
  • Some of the ways to improve one’s self-esteem are as follows:
    • Eliminate negative self-talk
    • Recognize your strengths
    • Recognise self-worth
    • Accept mistakes
    • Accept rejection

Question 6.
Self-regulation
Answer:

  • Self-regulation is being able to control our own thoughts, feelings, and actions for our own benefit.
  • It involves monitoring one’s own actions and reactions. When one engages in self-regulation, he avoids impulsive reactions.
  • It also involves predicting the consequences of our behaviour and avoiding behavioural patterns which can negatively affect ourselves or others in the future.
  • Self-regulation also involves focusing on certain parts of life and ignoring some other parts for the time being, e.g. as exams approach, a person will stop spending time on Netflix and focus on studies.
  • Higgins’ research on regulatory focus showed that people either have promotion regulatory focus or prevention regulatory focus.
  • It means people either focus on achieving positive outcomes or don’t do anything in order to prevent negative outcomes.
  • Self-regulation has crucial implications in our life.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

6. Answer the following questions in 150-200 words.

Question 1.
Give a detailed account of the development of an individual’s self-concept through the stages of life.
Answer:

  • On average, till the age of six months, the child is unaware of himself. As the child grows, he starts making distinctions between his own body and everything else.
  • In normal children, face recognition with a mirror occurs at the average age of one and half years. They are capable of pretend play. They also start using personal pronouns, (I, me, mine).
  • By the age of two, the child becomes aware of general expectations (what is good/ bad behaviour). They smile when people smile at them and frown when others get angry. They also develop a sense of self by comparing themselves with the standard role model (beginning of self-esteem).
  • By the age of three, children start recognizing themselves and others as boys or girls.
  • Between the age of three to twelve, the self-concept is defined mainly in terms of sex, age, family, and what the child believes he or she can or can’t do.
  • When schooling starts at the age of five-six, a child begins to compare himself to others (beginning of social comparison). Also, the development of the private self-concept takes place during this stage.
  • The final unfolding of self-concept during adolescence involves perspective taking, i.e. thinking and understanding other’s point of view. They might even enter into the stage of objective self-awareness.

Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self

Question 2.
Explain the theory of the self as proposed by Carl Rogers.
Answer:

  • According to Carl Rogers, every individual has a tendency to actualize himself.
  • Rogers also asserted that mentally healthy individuals have congruence between their experience and their self-concept while neurotic individuals deny awareness of their sensory and emotional experience.
  • Two important concepts related to Roger’s theory are the real self and the ideal self.
  • The real self (self-image) is what we actually are while the ideal self is what we want to be. The real self is our inner personality while the ideal self represents our dynamic ambitions and goals.
  • The real self has a tendency to actualize himself. But the ideal self may consist of some goals which are beyond our reach. This may result in the gap between the real self and the ideal self.
  • High congruence between the real self and ideal self leads to a greater sense of self-worth and healthy productive life while a large gap or incongruence between them leads to maladjustment.
  • By trying to achieve our full potential, we strive to be fully functioning individuals, i.e., achieve self-actualization.
  • Self-actualization means recognizing and exploring one’s full potential. People who achieve self-actualization are well-balanced, well-adjusted, and interesting.

Congruent
Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self 6 Q2
The self-image is similar to the ideal self.
There is more overlap.
This person can self-actualize.

Incongruent
Maharashtra Board Class 11 Psychology Solutions Chapter 3 Self 6 Q2.1
The self-image is different from the ideal self.
There is only a little overlap.
Here self-actualization will be difficult.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Balbharti Maharashtra State Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

1A. Complete the following statements.

Question 1.
The branches of Psychology that explore relationships among different variables and human behaviour are known as ___________ Psychology.
a. Theoretical
b. Applied
c. Common
Answer:
a. Theoretical

Question 2.
The study of human behaviour at the workplace is the concern of ___________ Psychology.
a. Social
b. Industrial
c. Experimental
Answer:
b. Industrial

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Question 3.
One can study the problems of adolescence in ___________
a. Developmental
b. Social
c. Cognitive
Answer:
a. Developmental

Question 4.
___________ Psychology is concerned with diagnosis and treatment of psychological disorders.
a. Counselling
b. Cognitive
c. Clinical
Answer:
c. Clinical

1B. Identify the odd item from the following.

Question 1.
Experimental Psychology, Social Psychology, Industrial Psychology, Cognitive Psychology
Answer:
Industrial Psychology

Question 2.
Clinical psychology, Industrial Psychology, Sports Psychology, Abnormal Psychology
Answer:
Abnormal Psychology

1C. Match the following pairs.

Question 1.

A B
1. Developmental Psychology a) Studies organisations, human factor design, and employee training
2. Criminal Psychology b) Studies how people become who they are from conception to death
3. Educational Psychology c) Studies thinking process
4. Industrial Psychology d) Helps educators to promote learning
5. Social Psychology e) Studies criminal behaviour
6. Cognitive Psychology f) Studies the influence of other people upon an individual’s behaviour

Answer:

A B
1. Developmental Psychology b) Studies how people become who they are from conception to death
2. Criminal Psychology e) Studies criminal behaviour
3. Educational Psychology d) Helps educators to promote learning
4. Industrial Psychology a) Studies organisations, human factor design, and employee training
5. Social Psychology f) Studies the influence of other people upon an individual’s behaviour
6. Cognitive Psychology c) Studies thinking process

2. Compare and contrast.

Question 1.
Theoretical and applied branches of Psychology.
Answer:
In theoretical branches, psychologists concentrate on carrying out research and forming theories while applied branches help individuals to use the knowledge gained from research to solve their problems.

The main aim of theoretical branches is to develop principles and establish laws in order to explain behaviour of human beings while the main objective of applied branches is to put knowledge into practice by helping individuals to adjust to their real-life situations.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Some theoretical branches are Developmental Psychology, Child Psychology, Social Psychology, Cognitive Psychology, Experimental Psychology, Abnormal Psychology while some applied branches are Educational Psychology, Clinical Psychology, Counselling Psychology, Criminal Psychology, Sports Psychology, Industrial Psychology.

For your understanding
The activities of applied psychology range from conducting field studies for finding practical solutions to problems to directly providing services to concerned individuals or organizations.

Question 2.
Abnormal Psychology and Clinical Psychology
Answer:
Abnormal Psychology is a theoretical branch that studies the unusual behavioural, emotional, and thinking patterns in individuals while Clinical Psychology is an applied branch that studies diagnoses and treats emotional and behavioural problems.

Abnormal Psychology aims to study the causes and factors leading to abnormal reactions like excessive suspiciousness, mental retardation, extreme mood swings, etc. On the other hand, Clinical Psychology deals with the diagnosis and treatment of mental illness, marital and familial conflicts, drug addiction, depression, delinquency, etc.

3. Write Short Notes.

Question 1.
Clinical Psychology
Answer:

  • Clinical Psychology is an applied branch that studies, diagnoses, and treats emotional and behavioural problems in individuals like mental illness, marital and familial conflict, drug addiction, severe depression, alcoholism, delinquency, etc.
  • For diagnosis, clinical psychologists collect detailed information regarding the client through psychological tests and by conducting interviews of clients as well as their family and friends.
  • Once the problem is diagnosed, they use appropriate psychotherapy to help the client overcome his problem.
  • Clinical psychologists usually work in hospitals and community health centers or they may have their private practice.
  • Clinical Psychology is the largest subfield of Psychology.

Question 2.
Cognitive Psychology
Answer:

  • Cognitive Psychology concentrates on higher mental processes such as thinking, reasoning, and decision making.
  • It is concerned with the study of attention, perception, language development, thinking, memory, and problem-solving.
  • It also answers questions related to the disruption of memory, different types of learning styles and disorders, causes of speech impairment as well as the functioning of decision-making mechanisms.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Question 3.
Developmental Psychology
Answer:

  • Developmental Psychology studies changes in behaviour from conception to death.
  • It is the scientific study of how and why human beings change over the course of their life.
  • It examines changes across three major dimensions, viz. physical, cognitive, and social development.
  • It aims to explain how thinking, feeling, and behaviour change throughout life.
  • It may study a specific period of life like childhood, adolescence, adulthood, and old age.

Question 4.
Industrial Psychology
Answer:

  • Industrial Psychology is concerned with behaviour of people working in an organization.
  • Industrial psychologists play a crucial role in selection and placement, workforce motivation, and job satisfaction as well as appraisals and grievances.
  • They help to enhance motivation, group morale, and leadership skills among the employees.
  • Consumer Psychology is a branch of Industrial Psychology that deals with consumer behaviour, quality of products, brand loyalty, and influence of advertisement on purchasing.

4. Suggest an appropriate branch of psychology related to the following situations.

Question 1.
A husband and wife do not understand each other so they keep fighting.
Answer:
Counselling Psychology

Question 2.
My friend’s father lost his job and he is in depression.
Answer:
Clinical Psychology

Question 3.
A 5th standard student is unable to concentrate.
Answer:
Educational Psychology

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Question 4.
I want to study the process of thinking and learning.
Answer:
Cognitive Psychology

Question 5.
I want proper information about attitude, prejudice, or conflicts in a group.
Answers:
Social Psychology

5. Answer the following questions in detail.

Question 1.
Explain any five theoretical branches of Psychology.
Answer:
Some theoretical branches of Psychology are as follows:

Child Psychology: It deals with the biological, psychological, and emotional changes that occur during childhood. These changes occur as the individual progresses from being dependent to becoming independent. Child psychologists study problems related to children such as lying, bunking school, stealing, bedwetting. They also conduct researches on effective child-rearing practices and the role of reinforcement in motivating children.

Social Psychology: It studies how an individual influences other people and gets influenced by them. According to Myers, Social Psychology is the scientific study of how an individual’s behaviour is affected by others. The primary focus of Social Psychology is to understand how individuals are affected by other people. It examines issues such as co-operation or conflicts within groups, attitudes, prejudices, friendliness, and leadership qualities of an individual.

Experimental Psychology: It attempts to understand the fundamental causes of behaviour. It studies how people learn, remembers, reason, and respond emotionally. It deals with problems related to sensation, perception, learning and memory. Experimental psychologists conduct laboratory experiments to study how people react to sensory stimuli and perceive the world.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Cognitive Psychology: It concentrates on higher mental processes such as thinking, reasoning, and decision making. It also answers questions related to the disruption of memory, different types of learning styles and disorders, causes of speech impairment as well as the functioning of decision-making mechanisms.

Abnormal Psychology: It studies unusual patterns of behaviour, emotions, and thinking. It aims to study the causes and factors leading to abnormal reactions such as excessive suspiciousness, extreme mood swings, perceiving objects or situations which are not real, mental retardation, extreme fear of objects, animals, or situations, etc.

Question 2.
Describe any five applied branches of Psychology.
Answer:
Some applied branches of Psychology are as follows:

Educational Psychology: It studies all factors related to education. It is concerned with increasing the efficiency of the teaching and learning process. It also focuses on the learning difficulties of slow learners, exceptional as well as average children. Educational psychologists are primarily associated with schools, colleges, and universities. They try to design intervention programs to develop motivation, effective study habits, and a better classroom environment. They also deal with behavioral issues of children such as learning disorders, hyperactivity, lack of concentration, ADHD.

Counselling Psychology: It deals with milder behavioural problems. Counselling psychologists offer guidance about adjustment issues faced by a person, e.g. difficulties experienced by a person in studies, personal life issues, or workplace issues. Counselling psychologists are also involved in vocational and career guidance.

Criminal Psychology: It deals with the motives behind criminal behaviour. Criminal psychologists are concerned with identifying the causes of crime, studying the personality of criminals, suggesting preventive measures to control criminal behaviour, and implementing plans for criminal rehabilitation. They play a significant role in the forensic department to uncover the scene of the crime. They generally work with the law enforcement department or the criminal investigation department or social organisations working for rehabilitation.

Sports Psychology: It helps sportspersons to maintain their motivation and stamina during the actual performance. It also aids sportspersons to maintain themselves when they are not on the field. Sports psychologists help players to maintain composure when they are under pressure, maintain emotional balance when they go through a bad patch, and maintain wellness when they are recovering from personal injuries.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Industrial Psychology: It is concerned with the behaviour of people working in an organisation. Industrial psychologists play a crucial role in selection and placement, workforce motivation, and job satisfaction as well as appraisals and grievances. Consumer Psychology is a branch of Industrial Psychology that deals with consumer behaviour.
applied branch of Psychology. The development of aviation and space exploration programmes has accelerated growth in Engineering Psychology.

Question 3.
Write any five career opportunities in Psychology.
Answer:
Counselling Psychology: An individual can become an educational counsellor or vocational counsellor or marriage counsellor and help people to solve career-related or personal problems.

Social Psychology: An individual can become a public relations officer or social welfare officer or labour welfare officer.
These officers attempt to solve various social problems.

Sports Psychology: An individual can become a sports counsellor and work in gyms, schools, or professional sports teams. These counsellors help to improve the confidence, concentration, and morale of players.

Military Psychology: An individual can become an army mental health specialist or army psychologist, navy psychologist, air force psychologist, or marine psychologist. These psychologists play a role in the selection of army officers. They also improve the morale of people in defense services.

Rehabilitation Psychology: An individual can become a special educator or rehabilitation psychologist or disaster management and rehabilitation officer. A special educator works for specially-abled persons while a rehabilitation psychologist works in remand homes. A disaster management and rehabilitation officer helps in disaster management and rehabilitation.

Activities

Activity 3. (Textbook Page No. 14)

Try to find at least one example that can fit into each of the above sub-branches of theoretical Psychology.
Answer:

  • Developmental Psychology: Mr. Mehta conducted a comparative study of physical and cognitive development during early childhood and late childhood.
  • Child Psychology: Mr. Singh studied the impact of parental divorce on the social behaviour of a child.
  • Social Psychology: Mrs. Joshi examined the effect of peer pressure on a person’s dressing style.
  • Cognitive Psychology: Mr. Dsouza studied factors influencing the attention span of students during lectures.
  • Experimental Psychology: Mr. Iyer studied the reactions of individuals in a laboratory to disgusting events.
  • Abnormal Psychology: Mrs. Ajmera conducted a study on the genetic factors influencing depression.

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Activity 4. (Textbook Page No. 15)

Can you think of at least one problem that educational psychologists can find solutions to, concerning the following areas?

  1. Behaviour of the student
  2. Teaching methods
  3. Teacher’s behaviour in the class

Answer:

  1. Why do students bunk lectures?
  2. Do interactions with students during lectures improve learning outcomes?
  3. Is it possible to use reward and punishment techniques to motivate students?

Activity 6. (Textbook Page No. 16)

Can you think of at least one problem that a counselling psychologist can find solutions to, concerning the following areas?

  1. Adjusting with peers
  2. Adjusting with parents and siblings
  3. Making decisions about a career

Answer:

  1. How conflict with peers affects an individual’s mood?
  2. How generation gap may lead to a difference of opinion?
  3. How to choose a career that matches one’s interests and aptitude?

Activity 8. (Textbook Page No. 16)

Think of at least one problem that a sports psychologist can find solutions to, concerning the following areas.

  1. Improving team spirit
  2. Emotional management
  3. Improving self-confidence

Answer:

  1. How to build healthy relations with team members?
  2. How to remain calm and composed even after a failure?
  3. How to believe in one’s capabilities during challenging tournaments?

Maharashtra Board Class 11 Psychology Solutions Chapter 2 Branches of Psychology

Activity 9. (Textbook Page No. 17)

  1. Talk to your parents/teachers and enlist the factors that give them satisfaction at their work.
  2. While buying something from the market, which factors affect your desires? Enlist these factors that influence your choice. For example advertisements, brands, etc.

Answer:

  1. Some of the factors that are associated with job satisfaction are the extent to which one enjoys his work, relation with superiors and colleagues, rate of remuneration and other incentives as well as the scope of growth in the future.
  2. Some of the factors that influence consumer choices are quality of the product, price of the product, price of substitute and complementary products, the income of a person, latest trends, personal choices, habits, and opinions of significant others.