Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 8 Social Change students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 8 Social Change

→ All human societies and their cultures are dynamic and undergo continuous change.

→ Change is an integral part of human society. It may be cyclical.

→ The nature of change and the direction of change varies from one society to another, but change is inevitable.

→ Changes might be slow or rapid; the consequences of change may be constructive/positive or destructive/negative.

→ Changes proceed from one stage to another in a single direction known as linear change or changes can take place in several directions known as multi-linear change.

→ The view of looking at society from the point of view of structures and functions is called structural functionalism.

→ The term social change refers to changes that take place in the structure and functioning of social Institution.

Characteristics of Social Changes:

• University
• Continuous process.
• Temporal
• Interactional chain reaction
• Neutrality
• Short-term and Long-term change
• Planned or Unplanned change

Factors responsible for Social Changes:

• Social change is a result of the interaction of multiple factors.
• No single factor is responsible for the change in society.

Factors responsible for Social Changes:

• Physical factor
• Biological factor
• Socio-cultural factor
• Economic factor
• Technological factor
• Educational factor

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 7 Social Stratification students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 7 Social Stratification

→ Social stratification uses the division of society into strata based on social position or class.

→ Sociologists use the concept of social stratification to refer to a system by which a society ranks categories of people in a hierarchy.

→ One has to distinguish between social differentiation or division and social stratification.

→ Social differentiation involves the formation of horizontal social divisions whereas social stratification involves vertical ranking of social strata.

Characteristics of Social Stratification:

• It is social
• Persists over generations
• Universal but variable
• Involves inequality
• Consequential

Type of Social Stratification:

1. Closed Stratification
2. Open Stratification

Closed Stratification
Caste System:

1. Segmental division of society
2. Endogamv
3. Hierarchy
4. Restriction on feeding and social intercourse
5. Differential Civil and religious privileges and disabilities
6. Lack of unrestricted choice of occupation

Open Stratification

Class:

• Wealth and Income
  Occupation
• Education
• Prestige

Gender Stratification

• Refers to the unequal distribution of wealth power and privilege between two sexes.
  Social Mobility
• Refers to change in the position of an individual or a group of individuals from one status to another.

Types of Social Mobility:

1. Horizontal Mobility
2. Vertical Mobility
3. intergenerational Mobility
4. Intragenerational Mobility

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 6 Socialization students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 6 Socialization

→ Socialization refers to the lifelong social experience by which human beings are transformed into social beings.

→ Socialization is a process whereby an individual develops one’s personality and becomes a functioning member of society.

→ Hobbs and Blank: ‘Socialization transform the biological organism into a social being’.

→ Socialization transforms the individual self into a social self.

Socialization:

• A process of learning various form of behaviour acceptable in a particular culture
• An ongoing process of continuous learning
• A process through which an individual gradually becomes member of the society.

Types of Socialization:

1. Primary Socialization: The learning which happens in the early years.
2. Secondary Socialization: The learning which extends the entire life of a person

Process of Socialization:
George Herbert Mead has elaborated on the process of building social self. According to Mead formation of self occurs in three distinct stages.

Process of Socialization

1. Stage 1: Imitation
2. Stage 2 : Play Stage
3. Stage 3 : Game Stage

Agencies of Socialization:
The child gradually becomes a member of society by participating in different social groups and networks which can be termed as agencies of socialization.

Agencies of Socialization:

• Family
• Peer groups
• Schools
• Mass Media
• Neighborhood
• Workplace

Re-socialization:

• The individual needs to adapt and cope with new situations and environment sometimes by learning new things or sometimes even by unlearning. This process of unlearning old norms, roles, values and behavioural patterns and learning new patterns is called re-socialization.
• A prison sentence, is a good example, which not only leads to rehabilitation of an individual’s behaviour but also makes them accommodate the new norms.
• Severity of re-socialization depends on the context in which it is carried out.

Total Institution:

• Erving Goffman is credited for having popularized the term ‘total institution’, closely associated with re-socialization.
• Examples of Total Institutions are prisons, military camps, mental health facilities, and private boarding schools.
• Re-socialization is often a deliberate and an intensely social process.

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 5 Culture students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 5 Culture

→ The term culture refers to the way of life of a member of various societies or groups. Culture is that complex whole that includes knowledge, beliefs, values, morals, law, customs, and any other capabilities and habits acquired by man as a member of society.

Types of Culture

1. Material Culture: Consists of man-made objects which are concrete and tangible in nature.
2. Non-Material Culture: Refers to the ideas created by human beings which are abstract and intangible.

Classification of Culture:

1. High Culture
2. Folk Culture
3. Mass Culture
4. Popular Culture
5. Subculture

Components of Culture:

1. Symbols and Signs
2. Language
3. Knowledge
4. Values and Beliefs
5. Norms

Characteristics of Culture:

• Culture is acquired
• Culture is abstract
• Culture is shared
• Culture is man-made
• Culture is idealistic
• Culture is transmitted among members of society
• Culture is continuously changing
• Culture varies from society to society
• Culture is an integrated system
• Language is the chief vehicle of culture

→ Participating in culture can benefit individuals in many different ways. Culture helps build social solidarity and cohesion. It leads to improved learning and valuable skills for the future.

→ Ethnocentrism means treating one’s own culture as superior and every culture displays a sense of ethnocentrism. Ethnocentrism has positive as well as negative effects.

→ Cultural hybridization refers to the ways in which parts of one culture get recombined with the cultures of another. It is a process where two originally distinct cultures come together and create something new and exciting.

→ Glocalisation refers to global processes interacting with the local processes.

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 7 Consumer Protection students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 7 Consumer Protection

→ Lobby: A group of persons who try to influence legislators to vote in a certain way.

→ Adulterated product: Product that becomes impure after the addition of inferior materials. Consumption of such products may affect health adversely.

→ Spurious goods: Goods resembling real or original but are not genuine or real. Consumption of such goods may lead to harmful effects on health.

→ Redressal forum: Court or tribunal having the power to decide or give justice to the aggrieved party to the consumer disputes.

→ Compensation: Something, especially money given by the person responsible for a fault to the person to whom damage or loss is caused.

→ Misleading advertising: Advertising of the products or services which misleads and deceives the people. Unscrupulous traders or producers deceive the consumers through misleading advertising.

→ Rational decision: Decision in accordance with the principle of logic or reason.

→ Amendment: An alteration of or addition made to any Act after it is passed by the legislative body say Parliament of India.

→ Consumer disputes: Disputes between the consumer and the trader in respect to the product purchased and related issues.

→ Jurisdiction: The official power to make legal decisions and judgements about something or the . limits within which a legal authority can exercise its power.

→ Appellate: A court of law or higher court where decisions given by the lower court is challenged by the aggrieved party; an application made for this purpose is termed as “appeal”.

→ Exploitation: Taking advantage of especially a person for one’s own benefit or profit.

→ guasi-judicial: Having a partly judicial character by possession of the right to hold hearings on and conduct investigations into dispute claims and alleged violation of rules and regulations and to make decisions in the general manner of courts.

→ Public affairs: Public relations efforts of a firm that are associated with government agencies, mass media and public interest and pressure groups.

Introduction-

The survival and success of a business organisation depends upon the customers. They are the backbone of economy of any country as whole economy revolves around them. All the manufacturing and production activities are carried out in anticipation of demand and also to give maximum satisfaction to the consumers. In today’s competitive market, the consumer is regarded as the ‘King of Market’. Even today the exploitation of the consumers by the traders and manufacturers in the form of adulteration, false weighing and measurement, price rise, artificial scarcity, black marketing, misleading advertisement cannot be denied. Therefore, every consumer must have adequate knowledge of product and services in respect of their quality, quantity, price, standard, etc. to choose right product or service.

Meaning and Definition of Consumer-

Meaning: The word ‘consumer’ is derived from the Latin word ‘consumere’ which means ‘to eat or drink’. Accordingly, consumer is one who consumes or uses any product or service available to him either from nature or through market. For instance, if a person purchases bananas to eat, or uses railway services he is called consumer. If he purchases 10 dozens of bananas to sell them at higher prices, then he is called seller and not consumer.

Need and Importance of Consumer Protection-

• Need of participation of consumers: Many a time it is noticed that most of the companies | take decisions which affect the consumers’ interest without consulting them.
• Lack of information: On account of vast distance between manufacturer and consumer, it is not easy to establish direct contact between them. It is also very difficult to get correct and reliable information about the products they want to buy. In both the cases consumers’ exploitation cannot be denied.
• Ignorance of consumers: In India, most of the consumers are ignorant about their rights, market conditions, price levels, product details, etc. Many a time consumers are being cheated.
• Unorganised consumers: The consumers are widespread, scattered and unorganised. They are not united. Hence, they are easily exploited by the producers and sellers. An individual or a single consumer cannot fight against united and powerful manufacturers or sellers.
• Spurious Goods: Some traders imitiate (duplicate) the popular brand names and cheat the consumers by supplying them duplicate or defective goods. Consumers find it difficult to recognise genuine and duplicate products. It is necessary to protect them by ensuring compliances and safety standards.
• Misleading Advertisement: Most of the traders make false claims and exaggerate the facts but do not disclose the drawbacks of the products in the advertisements. Most of the consumers are misled by the advertisement and do not know the real and true quality of the products.
• Malpractices of businessmen: To earn and make more money many unscrupulous traders adopt fraudulent, unethical and monopolistic trade practices. This leads to exploitation of consumers. Measures must be taken to protect the consumers.
• Trusteeship: According to Gandhian philosophy, businessmen are the trustees of the society’s wealth. So businessmen should not misuse the society’s wealth. They should use the. wealth of the society for the benefits of the people.

Rights of Consumer-

The President of USA, J. E Kennedy declared certain rights of the consumers on 15th March, 1962, therefore it is observed as ‘World Consumer Rights Day.’

The rights of consumer are explained as follows:

1) Right to Safety: The right to safety means the right to be protected against the products, production processes and service which are hazardous to consumer’s life, property or health.

2) Right to Information: According to this right, consumers should get adequate information about all aspects of goods and services like price, name of manufacturer, contents used, batch number, date of manufacture, expiry date, safety instructions, etc. It helps consumers to select right products or services.

3) Right to Choose: As per this right, consumer should be given full liberty to select an article as per his requirements, liking, financial ability, etc. According to this right, seller cannot force the buyer to purchase a particular product or services.

4) Right to be Heard: This right states that the consumers have right to lodge their complaint .to consumer forum. Consumers can also give suggestions to manufacturers or traders on certain matter like quality, quantity, price, packaging, etc. The consumers can also file online complaints through portal or mobile applications.

5) Right to Consumer Education: This right has made it clear that every consumer has right to know about consumer rights and solutions to their problems. This is to create awareness among the consumers to protect themselves from the exploitation of unscrupulous businessmen.

6) Right to Represent: The Consumer Protection Act, 2019 has given am opportunity to individual consumers and consumer groups to be represented by a person to represent consumers’ complaint before consumer forum.

7) Right to Redress: According to this right, every consumer has the right to receive a fair amount of compensation or get the article replaced or repaired free of cost for defective products and for poor services received from the manufacturer or dealer.

8) Right to Healthy Environment: According to this right all consumers have right to clean and healthy environment in present as well as in future. As per this right, consumer can demand actions against business organisations causing pollution. Businessmen and companies must take suitable measures to control pollution.

9) Right to protect against Unfair Business Practices: As per this right, the consumers have right to raise voice against unfair business practices adopted by any trader, e.g. using faulty weights and measures, hoarding products to create artificial scarcity, black marketing, profiteering, adulteration, charging high prices, selling goods after expiry dates, etc.

10) Right against Spurious Goods: This right is against the traders who sells goods which are health hazards, spurious (false or not genuine) and pose danger to life.

Responsibilities of Consumer:

• Consumer should use his rights: The consumers must be aware that they have many rights in respect to the products or services they have purchased. They can use their right if they are cheated or misled by advertisement or get faulty or defective articles.
• Cautious consumer: The consumer should be alert and cautious while dealing with trader. Before buying any product or service, he should make detail enquiry about the quality, quantity, utility, price, date of expiry, user manual, etc.
• Filing of complaint: If the consumer has any complaint about the products or services he has purchased, he should immediately approach the officer concerned and lodge complaint about the same. If consumers ignore the dishonest acts of the traders, it indirectly amounts to encourage unethical business practices.
• Quality conscious: The consumers should always buy quality products. They should never compromise on the quality of goods. They should always ensure about the quality symbols like ISI, AGMARK, Hallmark, etc. They indicate that the quality of goods is good.
• Beware from exaggerated advertisement: Many a time seller exaggerates the facts in their advertisements. It is the responsibility of the consumers to find out the truth of advertisement and then buy the products or services.
• Demand of Invoice and Guarantee, Warranty Card: After purchasing the products or services, consumers should always ask for or demand guarantee card, cash memo from the i seller or dealer. They should preserve these for future claim in case of any defects, inferior quality, etc.
• Pre-planned buying: The consumers should make proper planning before buying any product. He should make an estimate of products, j budget to spend, etc. He should also decide in advance from which place the buyer to buy the product. He should not buy any product in a hurry or without thought.
• Organised efforts: It is the responsibility j of the consumer to shoulder the responsibility to promote and protect the interest of his own and other consumers. He should join the group or organisation which is working for the welfare of j consumers.

Ways and Means of Consumer Protection-

1) Lok Adalat: Lok Adalat also referred as People’s Court is established by the government to settle disputes by compromise. The aggrieved party can directly lodge the complaint or grievances. Issues are discussed and judgement is given immediately. The order passed thereby is given statutory recognition. Railways, Insurance | companies, banks, etc. organise Lok Adalat regularly.

2) Public Interest Litigation (Janhit Yachika): Under this legal facility, any person can approach court of law in the interest of the public j or society and ask for justice. Its main objective is ) to provide legal remedy to unrepresented groups j of society. It can be directly filed in the High Court as well as in Supreme Court in some cases.

3) Redressal Forum: Under the Consumer Protection Act, 2019, consumer dispute redressal agencies have been established by the Government to protect the rights of consumers and to offer simple, speedy and inexpensive redressal for consumer complaints. These three tier quasi judicial consumer disputes redressal agencies are set up at District, State and National level.

4) Awareness Programmes: The Government of India has adopted various publicity measures such as use of journals, brochures, posters, observation of World (International) Consumer Rights Day on 15th March and National Consumer Day on 24th December every year. Various consumer related programmes are also telecast on various TV channels and social media and broadcasted on All India Radio and FM channels.

5) Consumer Organisations: Many consumer organisations such as Consumer Guidance Society of India, Grahak Panchayat, Grahak Shakti, Consumers’ Association, etc., are active throughout India to fight for consumers’ rights through protest, campaigning, lobbying, etc. It is now required to strengthen consumer movement throughout the country.

6) Consumer Welfare Fund (CWF): This fund is created by the Department of Consumer Affairs for providing financial help to voluntary consumer movement specially in rural areas. This financial assistance is used for consumer education, complaint handling, counselling, guidance, etc.

7) Legislative measures: The Government of India has passed several Acts such as Sales of Goods, Act, 1930; Essential Commodities Act, 1955; Standards of Weights and Measures Act, 1956; Bureau of Indian Standards Act, 1969; Food Safety and Standard Act, 2006 and National Food Security Act, 2013, etc. to protect the interest of consumers.

However, these laws could not protect the consumers as such and therefore the Government of India has passed a powerful act known as Consumer Protection Act, 2019 to protect the interest of consumers.

Consumer Protection Act, 2019-

The Consumer Protection Act was passed by the Parliament on 24th December, 1986 to provide for expeditious and inexpensive settlement of consumer disputes. In 2019, the Ministry of Law and Justice has proposed new act as ‘Consumer Protection Act, 2019’ which got the President’s assent on 9th August 2019. This Act, provided for the establishment of three-tier quasi-judicial consumer dispute redressed agencies known as District Commission, State Commission and National Commission at District Level, State Level and National Level respectively. National Commission also acts as an Apex body at the central level. This act provides and covers all the complaints in respect to goods, services and unfair business practices.

1) District Commission: A consumer dispute redressal commission called the District Commi¬ssion is established by the State Government in each district to entertain complaints where the value of the goods or services paid as consideration does not exceed ₹ 1 crore. Each district commission shall consist of the President who is sitting or retired as a district Judge and who is not less than 35 years. The members will hold office for a term of 5 years or up to the age of 65 years whichever is earlier. Territorial jurisdiction of district commission is entire district in which it is established. Any person not satisfied with the order of District Commission can appeal against such order to the State Commission within a period of 45 days from the date of such order.

2) State Commission: A Consumer Dispute Redressal Commission called the State Commission is established by the State Government in each state to entertain complaints where the value of the goods or services paid as consideration, exceeds ₹ 1 crore but does not exceed ₹10 crore. Each State Commission shall consist of President who is sitting or retired Judge of High Court and not less than 4 members. The members will hold office for a term of 5 years or up to the age of 67 years whichever is earlier. It can entertain original cases as well as appeals against the order of District Commission which are within the territorial jurisdiction of the entire state in which it is established. Any person not satisfied with the order of State Commission can appeal against such order to the National Commission within a period of 30 days from the date of such order.

3) National Commission: A Consumer Dispute Redressal Commission at the national level established by the Central Government by notification is referred to as National Commission. It entertains complaints where the value of the goods or services paid as consideration exceeds ₹ 10 crore. National Commission consists of President who is sitting or retired as judge of the Supreme Court and not less than 4 members. The members will hold office for a term of 5 years or up to the age prescribed whichever is earlier. It entertains original cases and appeals against the order of State Commission which are within the territorial jurisdiction of the entire nation. Any person not satisfied with the order passed by the National Commission may appeal against such order to the Supreme Court within a period of 30 days from the date of such order.

Role of Consumer Organisations and NGOs-

Non-Government Organisations (NGOs) are non-profit and non-political organisation which aim at promoting the welfare of the people.
The Role of consumer organisation and NGOs in Consumer Protection and Education:

• To arrange and organise campaigns and different programmes on the topics of consumers to create social awareness.
• To arrange training programmes for consumers to make them aware of their rights and different modes of redressal of their complaints and grievances.
• To publish journals, periodicals to make consumers understand about various consumer related development.
• To provide free legal advice to the members on the issues of consumer’s interest and help them to put up grievances before appropriate authority.
• To communicate with the businessmen, Chambers of Commerce and Industry for ensuring a better deal for consumers.
• To file Janahit Yachika (Public interest litigation) on vital consumers issues like ban on sale of products injurious to public health.

The following are the examples of NGOs: Consumer Guidance Society of India (CGSI), Voluntary Organisation in Interest of Consumer Education (VOICE), Consumer Education and Research Centre (CERC), Consumers Association of India (CAI), Mumbai Grahak Panchayat (MGP), Grahak Shakti (GS).

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 8 Marketing students can recall all the concepts quickly.

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

→ Marketing: An action or business of promoting and selling products including market research and advertising.

→ Consumer: Consumer is a person or group of persons that are final user of goods or services, i.e., end-user.

→ Customer: An individual or organisation who acquires goods or services from a business organisation for a price.

→ Standard of living: Level of economic welfare or level of material well-being of an individual or household. It is usually determined by quantities of the goods and services consumed. It is also referred to a level of wealth, comfort, material goods and necessities available to people to satisfy their wants.

→ Market research: The study of the consumers’ needs and preferences. It is branch of research for business management studying markets and economic opportunities or promotion and distribution of sales.

→ Consideration: Anything given or promised by one party in exchange for the promise or undertaking of another.

→ Misrepresentation: False or incorrect statement made by one party to other with the intention to deceive the other or to make unlawful gain.

→ Image: The character or reputation of a person or thing as generally received.

→ Brand: A name or symbol, number, letter or combination of these given to a product by which the product and its manufacturer are identified.

→ Advertising: An impersonal sales efforts aimed at inducing people to buy the product. It gives information about the products with a view to creating and maintaining demand for the same.

→ Promotion: In marketing, the term ‘promotion’ implies the process of giving information and thereby inducing or persuading prospective customers to buy products or services.

→ Finance (Financing): In marketing ‘financing’ implies, the provision and management of money and credit required to get goods from producer to the consumer or industrial user. It also involves supplying money and credit necessary to meet the expenses of getting goods or products in the hands of consumers.

→ Media: Media is a channel which connects government, business and other organisations with the people at large in society. Radio, television, newspapers, etc. are the examples of media.

→ Environment: The factors which affect surroundings of anything including human beings as well as organisations.

→ Strategies: A plan or method for achieving a business goal, a general method or policy for achieving specific objectives of the business.

→ Production: The total series of stages by which material is changed from one form into another by utilisation of labour, tools and machinery according to plan.

→ Substitutes: Two or more goods or services are said to be substitutes if a rise in the price of one causes an increase in demand for the other, e.g., tea would be a substitute for coffee.

→ Merger: The amalgamation or combination of two or more businesses.

→ After sales service: A continuing service of maintenance, repair, supply of information on possible uses, etc. provided to the buyers of a product by the seller or manufacturer.

→ Industrialisation: Increasing the number of different types of industries in an economy; to develop industry on an extensive scale in a country, region, etc.

→ Layout: The arrangement of written material, photography or other artwork in an advertisement or page in a book, newspaper, etc.

→ Research and development: TWo closely related activities in modern industry by which new products and processes are being continually developed especially by engineers and designers.

Introduction-

The important objective of all business organisations is to fulfil the needs and wants of the society. This is possible only through marketing of goods and services. Marketing is therefore considered as centre point of all business activities. Production of goods and services become meaningless if business organisations are not able to market their goods and services effectively. Thus, nowadays marketing is indispensable feature of the business. Marketing now becomes part and parcel of modern days of life. Individual as well as social needs are satisfied only through marketing.

Marketing helps to improve standard of living and to gain loyal customers by providing wide variety of goods and services. It also helps to generate and increase employment opportunities. Marketing is pervasive in nature and it influences our daily life. Marketing is a science and an art competitive, growing and cut throat competition inspires organisations to know marketing as a discipline of management.

Meaning and Definition of Marketing-

Marketing is considered as a main function of modern management. Marketing is a social process: through which need (desire) is created, offered and exchange via products and services. Marketing is a wider concept which includes selling and other functions. Marketing and selling though interchangeably used and seem to be similar concept, ‘Marketing’ involves a process of satisfying consumer needs. It includes all those activities which effect transfer of ownership and possession of goods and services for physical distribution, Satisfaction of consumer is the centre point of marketing concept. It is consumer oriented. In brief, marketing is the activity, set of institutions and processes for creating, communicating, handing over and exchanging offerings that have value for the consumers, clients, partners and society at large, it is an indirect activity and integrated process of identification, assessment and satisfaction of human wants.

American Marketing Association, defines Marketing as “the activity, set of institutions, and processesfor creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

Concept of Market-

The word ‘Market’ has originated from the Latin word ‘mercatus’. It means ‘to trade’, to trade merchandise’ or ‘a place where business is being carried out’. In brief, market is a place where two or more parties called buyer, seller and intermediary are involved in the buying and selling of goods and services, with the exchange of money called price. In the modern days, buyers and sellers can conduct trade by telephone, internet, mail, social media platforms, etc.

The different concepts associated with the term market are explained briefly as follows:

1) Place concept of market: In the place concept of market emphasis is given on the place where transaction of trading (i.e buying and selling) of goods and services is done in the exchange of money or money’s worth. In ancient days, place played a significant role in defining the term market. But due to development of information technology the meaning of the term market has widened to great extent.

2) Commodity concept of market: In this concept of market, buying and selling of goods and services are given more importance. In this process, commodity/parties to the transaction, viz. buyer and seller play an important role.

3) Exchange concept of market: This concept of market gives more stress on the exchange of goods or services between buyer and seller. It further states that there should be free or voluntary consent and mutual trust. During the exchange neither any fraud nor misrepresentation should be committed by either party. Similarly coercion or undue influence should not be applied during the exchange.

4) Area concept of market: This concept ot market gives stress on free association between buyer and seller to determine (fix) the price of goods for its trading. According to this concept, buyer and seller can fix the price by taking help of modern communication means and exchange goods or service without meeting each other personally.

5) Demand or Customer concept of market: This concept of market states that customer is the king of the market and market should be studied from the angle of demand or customer. It is further stated that the aggregate (total) demand of potential buyers for the products is considered as market.

6) Space or Digital concept of market: On account of advent of information technology, new concept of market, i.e. space or digital concept comes into existence. Now sophisticated e-commerce portals and mobile applications, internet, computer, etc. have made trading of goods and services easy and convenient for buyers and sellers.

The use of information technology has made it easier for customers to make direct contact with sellers, know about the features, v price, quality, terms and conditions, etc. of any product or service across the globe. Accordingly, the market that uses information technology for trading of the products or services is called digital market. It facilitates communication of quality, features, price and terms of exchange among them.

Types of Market-

The chart showing different types of market is as follow:

The different types of markets are explained as follows:

1) On the basis of Area Covered:

• Local Market: Market which is established in the local geographical area of a region within which goods and services are bought and sold is called local market, e.g. purchase of goods from nearest shop.
• National Market: Market which is established within a country with which goods and services are bought and sold is called national market, e.g. purchase of clothes from Ahmedabad by a customer residing in Kochi.
• International Market: The market where the goods and services produced in one country are sold in many other countries is called international market, e.g. import of advanced technology from U.S.A. by India.

2) On the basis of time:

• Very Short Period Market: The market which has its existence for very short period of time is called very short period market. This market has existence for few hours, e.g. market for perishable goods such as fish, vegetables, fruits, etc.
• Short Period Market: The market which is organised and continued for short period is called short period market, e.g. a weekly market, market during festival, fairs, etc. They deal in semi- durable and perishable goods.
• Long Period Market: The market which is organised and continued for long period of time is called long period market, e.g. market for durable commodities.

3) On the basis of Volume of Transaction:

• Wholesale Market: The market in which goods and services are bought and sold in large quantities at cheaper rates is called wholesale market. In this market, goods are sold to retailers in moderate quantities who then sell them to ultimate consumers in very small quantities, e.g. wholesale market for yarn.
• Retail Market: The market in which goods are directly sold by retailers to ultimate consumers in very small quantity is called retail market, e.g. grocery shop located in residential area.

4) On the basis of Importance:

• Primary market: The market where primary products are bought and sold is called primary market, e.g. grain market, fruit market, etc.
• Secondary market: The market where semi-processed and semi-manufactured goods are traded is called secondary market, e.g. iron-ore market.
• Terminal market: The market where finished goods are traded to ultimate consumers is called terminal market, e.g. industrial goods market.

5) On the basis of Nature of Goods:

• Commodity Market: The market where goods, materials or produce, viz. consumer goods and industrial goods are sold is called commodity market, e.g. consumer goods market.
• Capital Market: The market where long term funds are borrowed and given is called capital market, e.g. new issue market.

6) On the basis of Regulation:

• Regulated Market: The market which is governed, regulated and controlled by the statutory or legal provisions of the country is called regulated market, e.g. Stock Exchanges, Foreign Exchanges, etc.
• Unregulated or Free Market: The market which is not regulated or controlled by any specific act of parliament but is operated as per forces of demand and supply is called unregulated or free market, e.g. market for different products or services.

(7) On the basis of Competition:

• Perfect Market: The market where large number of buyers and large number of sellers buy and sell homogeneous product at a prevailing single price is called perfect market. Neither single buyer nor single seller can influence the price. They have perfect knowledge of market condition.
• Imperfect competition : A market which has certain features of imperfection such as single seller, imperfect knowledge of market conditions on the part of buyers and sellers, failure to make adjustment in demand and supply, etc. is called imperfect market, e.g. monopoly market.

Imperfect market is further classified as:

• Monopoly : A market structure which is characterised by a single seller selling unique product which has no close substitute is called monopoly market. Monopoly controls the entire supply in the market. He the price maker.
• Duopoly : A market situation in which two sellers who either sell a homogeneous product or differentiated product is called duopoly market. Sellers enjoy a monopoly in the product produced and sold by them.
• Oligopoly : A market situation in which there are limited (few) number of sellers or producers selling either a homogeneous product or differentiated product is called oligopoly.
• Monopsony : A market situation in which there is only one buyer and purchaser of goods and services offered by many producers or sellers is called monopsony, e.g. labour market, a firm is the sole buyer of certain kind of labour.

Importance of marketing-

The importance of marketing is shown in the following diagram:

Importance of marketing is explained as follows:

(A) Importance of Marketing to the Society:

1) Increase in standard of living: Marketing helps to find out the needs of consumers and accordingly make efforts to supply quality products at cheaper rates to fulfil their needs. This in turn raises and maintains standard of living of the consumers. In recent years, the large scale production of goods and services has considerably reduced the prices which helps to enhance standard of living of the poor and middle class people.

2) Provides employment: Modern marketing undertakes almost all functions of organisations ; such as buying, selling, financing, transport, warehousing, risk bearing, research and development, etc. which require more human power. This generates more job opportunities in different capacities and helps to solve the problem of unemployment.

3) Decreases distribution costs: Effective and proper utilisation of channel of distribution reduces overall cost of production of products and services. Thus, marketing makes goods and services available at cheaper prices.

4) Consumer awareness: Marketing helps the society by educating the consumers providing them information of availability of goods and services in the market. Marketing also helps in making right purchases.

5) Increases in National Income: Well organised and effective marketing of products and i services facilitates industrialisation, increase job opportunities and develops the economy rapidly. This makes the economy more stronger and stable I which in turn increases national income.

6) Managing consumer expectations: Marketing research enables the business organisations to understand the requirements of the consumers which arc useful in development of products. By studying and considering customers’ review, business organisations make major changes in the products. Government regulations stop marketers to make false and misleading claims.

(B) Importance of Marketing to the Firm:

1) Increases awareness: Marketing provides detailed information and creates awareness among the consumers about the existing products, new arrivals and the company selling specific products in the market.

2) Increases sales: After providing information about the products or services among the customers, marketing attracts them to buy the products or services. Successful marketing campaign enables the business organisations to enhance the sales of the organisation. Expansion in sales increases profit which can be reinvested in the business to earn more profits in the future.

3) Creates trust: The consumers usually prefer to buy goods and services from those business organisations which have trustworthy reputation in the market. Trustworthiness creates customer loyalty and earns loyal customers.

4) Basis for making decisions ; The business organisations are required to take several decisions before delivering the products to the ultimate consumers. The business organisations are required to have several decisions before delivering the products to ultimate consumers. They are required to face many problems in relation to production of goods and services. When business expands, decision making process becomes more complex. Effective marketing facilitates organi¬sations to take right decisions at the right time.

5) Source of new ideas: Marketing facilitates business organisations to know the needs of the consumers. Feedbacks received from the consumers are useful to make improvement in the existing products. Due to marketing, organisations, understand the changing tastes and preferences of the consumers. By considering these changes and new demand pattern, research and development department develops new products in which 4 Ps of marketing mix play major role.

6) Tackling the competition: Due to increasing competition it is now difficult to create monopoly. Marketing creates brand loyalty in the minds of potential buyers. Marketing conveys salient features, advantages, uses, etc. of the goods ! and services to the consumers and induces them to buy the same. The business organisations can make use of modern technology for effective marketing.

(C) Importance of Marketing to the Consumers:

1) Promotes product awareness: The business enterprises undertake marketing activities to promote various marketing activities ; to promote their products. Marketing creates awareness among the customers about different products and brands available in the market. It facilitates consumers to take right decisions on the purchases. The consumers can compare product features, their availability, price, etc. and select right products. Marketing also improves the: quality of life of the consumers.

2) Provides quality products: Due to increasing competition in the market, consumers get information about the products and services available in the market. Marketing also creates moral pressure on the organisations to sell quality products and services to the consumers. If business organisations supply defective products, it will create negative image of the organisations which in turn affects customers’ loyalty adversely.

3) Provides variety of products: Marketing: provides information about the products to the consumers and thereby induces them to purchase them. The business organisations are required to ! launch product by considering market segments. They are required to make available variety of goods to fulfil the requirements of different market segments of the consumers.

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

5) Customer satisfaction: The main aim of marketing policy is to give assurance of good quality products to the consumers. When the needs of the consumers are fulfilled, the consumers get satisfied. Marketing efforts result into customers’ satisfaction by way of honest advertising, assurance of quality products and accessibility of innovative products. In this way marketing makes efforts to give satisfaction to the consumers.

6) Regular supply of goods: Regular supply of goods to the consumers is practicable through effective and efficient distribution channel of marketing. Marketing also helps to stabilise the prices of products in the market.

Functions of Marketing-

1) Marketing research: The marketing research assists the organisations to assess the need in the market, identify the requirement of consumers, time of purchases, quantity of their purchases and prices at which products and services are traded, etc. Marketing helps the business organisations to take decisions on the marketing of products and services.

2) Buying and assembling: This function is related to purchase of raw materials from various places and to bring them at one place for further processing and production. This function is more important because quality and price of raw materials fix the cost and quality of final products.

3) Market planning: This function is concerned with preparing outline of market plan and strategies to accomplish the objectives of the organisation. Market planning means defining, determining and organising the marketing aims and objectives of the business and preparing strategies to achieve those aims and objectives.

4) Product development: Every business organisation is required to develop its products to suit the needs of the consumers. Most of the customers prefer to buy better and attractively designed products. Good and attractive design of the products also increase its turnover and profit. Product development is ongoing (continuous) process due to changing needs and preferences of the customers.

5) Standardisation and grading: Standisation means setting up certain norms in relation to design, quality, size, process, weight, colour, etc. of the products. It ensures uniformity of products and helps to gain customers’ loyalty towards products. Grading means physical sorting and classifying the products according to standard set up. Usually, grading is done in case of agricultural commodities.

6) Packaging and labelling: Designing the package for the products in an attractive manner is called packaging. It protects the products from breakage, leakage, damage and destruction. A slip providing information of product and its producer pasted or affixed on the product container is called ] label and its processing is called labelling, Packaging and labelling give protection to the product and serve an effective tool of marketing.

7) Branding: Giving a distinct name to product to identify it, is called branding. A brand which is registered is called Trademark. It gives separate identity and recognition among the consumers which helps to expand business and increase brand awareness.

8) Customers support service: The business organisations, must take every possible step to ; render support services to the customers. It increases customers’ loyalty towards the business, The customers support services include pre-sales services, after sales services, customer helpline, i technical assistance, product demonstration, etc.
It facilitates organisation to get, increase and retain the customers.

9) Pricing of products: Fixing the prices of the products is an important and challenging function of marketing. While determining the price the business organisation is required to consider several factors such as cost, desired profit, price of the competitors’ product, etc. The price fixed should neither be too high which may lose customers nor too low which compel the organisation to incur loss.

10) Promotional channels: The process of convening the consumers’ information of the products, their features, prices, uses, etc. and inducing them to buy the products is called promotion. Personal selling advertisement, publicity and sales promotion are the important tools of promotion. Promotional activities increase brand awareness in the market.

11) Distribution: The activities which are related to movement of finished products from the place of business to the doorsteps of consumers are called distribution. It comprises of transportation, order processing, material handling, warehousing, inventory control, market forecasting, etc. The importance of distribution mostly depends on the type of product and level of customer satisfaction.

12) Transportation: The physical movement of products, raw materials, etc. from place of origin to the place of production or to the place of consumers is called transportation. It creates place utility. The modes of transport include road, air, water, railways, pipeline transport, etc.

13) Warehousing: Warehousing refers to storing of goods, in a godown to hold them in stock from the time of production or purchase till the time of their sale. Warehousing maintains balance between supply and demand of products and helps to stabilise the prices in the market. Warehousing creates time utility.

Marketing Mix-

Marketing mix refers to the mixture or combination of various marketing variables that business enterprises intermix and control to get expected results from the target market. In other words, it means placing the right product at right price, at right place and at right time. Every business organisation must develop appropriate marketing mix to expand turnover and achieve its objective.

The 4 Ps of marketing mix viz. Product, Price, Place and Promotion were introduced by E. Jerome McCarthy in 1960. Then in 1981, it was further extended by Booms & Bitner by adding of 3 new elements, viz. People, Process and Physical Environment. The first 4 Ps are called product marketing mix and last 3 Ps are called services marketing mix. 7 Ps of marketing mix are shown in the following diagram.

1) Product: An article, goods, commodity, or service that is offered to the customers for sale is called ‘product’. It has capacity to satisfy the needs of customers. The product may be either tangible or intangible. It may be in the form of goods or services. Through market research the business organisations decide the right type of products to be produced and sold. Products sold create impact on the mind of customers on which success or failure of business depends.

2) Price: The amount of money given or required to buy a product is called ‘price’. The factors such as cost of product, willingness of the customers to pay for the product, value, utility, etc. are required to be considered while determing the price of a product. Price of the product should not be too high which affects the demand adversely. Similarly it should not be too low which reduces the profitability.

3) Place: Place is the element of marketing mix that ensures that right product is distributed and made available to the potential buyers at right location and at right time too. The organisations need to distribute the products at a place easily approachable to the potential consumers.

4) Promotion: Promotion refers to any type of marketing communication used to inform and
persuade potential buyers or consumers to buy the products. Promotion mix comprises of different tools such as advertising, sales promotion, direct marketing, personal selling, etc. Promotional strategies to be used depend on the budget, target market and the message to be communicated.

5) People: The people inside and outside the business create impact or influence on the business. People include all individuals, that play key role in offering the products or services to the customers. Right people appointed to work at right place add value to the business. Organisations must recruit right people, train them and retain them for their success.

6) Process: The steps taken by the business organization to carry the products from the place of business to the place of consumers are called process. Process are significant to provide quality service. Good process saves time and cost and ensures same standard of service by enhancing efficiency.

7) Physical Environment: The marketing environment in which the interactions between the customers and firm takes place is called the physical environment. While offering services, the service providers always try to incorporate certain tangible elements into their offering to increase customer experience. In the service market, physical evidence is necessary to ensure that service is provided successfully. The physical evidence creates an impact on the customers’ satisfaction. Physical evidence comprises location, layout, packaging, branding, interior design, the dress of the employees, their action, waiting area, etc.

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 4 Business Services students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 4 Business Services

→ Shares: ‘Share’ is a share/part in the share capital of a company. It is an interest of a person in the share capital of a company which is measured by the sum of money.

→ Debentures: A document containing an acknowledgment of indebtedness issued by a company under its common seal. It is a most common form of long-term loan borrowed by a company from the general public by issuing certificates called debenture certificates or simply called debentures.

→ Foreign exchange: The currency of a country other than one’s own; the exchanging of the currency of one country for that of another.

→ Hundies: Negotiable (transferable) instrument (document) like the bill of exchange or promissory note. It can be drafted in any one of the Indian languages.

→ Promissory Note: A written promise to pay money; a document stating that a person promises to pay another a specified sum of money at a certain date.

→ Bill of exchange: A document in writing which consists of acknowledgement of debts and promise to pay such debts after a specific period of time.

→ Cash credit: Facility similar to the overdraft given to an accountholder for a comparatively larger amount and for longer period.

→ Discounting of bills of exchange: Borrowing loan from the bank for a short duration against the security of bill of exchange.

→ Dividend warrant: A dividend warrant is a written order given by the company to its banker to pay the amount mentioned in it to the shareholder whose name is specified therein.

→ Interest warrant: A draft for the payment of interest due on Government bonds, debentures and other fixed interest securities. It can be crossed like a cheque.

→ Bonds: Fixed interest securities issued by the Government or companies after borrowing funds from the public.

→ Portfolio: The entire collection of investments belonging to an investor or held by a financial organisation such as bank, mutual fund, etc.

→ Tax returns: Statement giving detailed information of taxes due and payable to the government.

→ Demand Draft or Bank Draft: A written order made by a bank to its branch or vice versa to pay on demand a specified amount of money to the payee or his order. It is a cheque drawn by one bank on its branch or head office.

→ Underwriting of shares: A new issue of shares in a company may be underwritten. In such case, the underwriter for a certain consideration (underwriting commission) agrees to take up any shares which are not applied for by the public and thus guarantees the success of the issue.

→ Demat account: Account opened by investor with Depository Participant (DP- Bank) for converting his shares in electronic form. DP keeps records of trading of shares and their holdings.

→ Gift cheque: Cheques printed in decorative form bought by paying equivalent amount and are used as presents / gifts on the occasion of weddings, birthdays, etc.

→ Standardisation: Setting up of standards; a mental process of fixing certain norms or specifications as indicators of certain quality.

→ Branding: Giving a name, symbol, mark or numeral to a manufactured product for the purpose of giving a distinct identity to that product.

→ Economic development: The process of growth in total and per capita income of developing countries, accompanied by fundamental changes in the structure of their economics. These changes usually consists of increasing importance of industrial as opposed to agricultural activity, migration of labour from rural to urban industrial areas, etc.

→ Letter of Credit: A letter from one party usually a bank to another party usually also a bank by which a third party usually a customer named in the letter is given the right to obtain the money or credit for which the writer of the letter takes responsibility. It is a method of settling debt between parties in different countries.

→ Standard of living: Level of economic welfare or level of material well-being of an individual or household. It is usually determined by the quantities of the goods and services consumed by a person.

→ Wharf: A platform built parallel to the waterfront at a harbour or navigate river for docking, loading, unloading of ships.

→ e-mail: Electronic mail is an electronic device which transmits information from one end of the world to another, through computer network.

→ Pollution: Any cause or action which affects or makes the environment impure.

→ Physical resources: Tools, machinery, vehicles, power supply, employees, etc., that an enterprise uses to carry out its activities.

→ Natural calamities: A disaster or misfortune, especially one causing distress or misery produced by nature, e.g. cyclone, storms, earthquake, famine draughts, etc.

→ Environment: The factors which affect surroundings of anything including human beings as well as organisations.

→ Internet: Worldwide network of computers which allows its user to share and exchange information. It is the largest network of the computers in the world globally allowing many computers to be connected to each other through servers, using communication system.

→ Infrastructure: The basic facilities like roads, electricity, water, etc. that are required for the smooth running of a business, factory, etc. in particular and economy in general.

→ Perils of sea: Exposure to risk or harms; danger of sea.

→ Import duty: A tax imposed by a government on goods of specified types entering the country. The object of imposing an import duty may be to raise money or to it may be to protect the markets of domestically produced goods by making imports more expensive.

Business Service And Banking –

Introduction:
Services of different types satisfy human wants are intangibles, heterogeneous, inseparable, inconsistent and perishable. They are neither manufactured non-tranported. Services cannot be stored for future use or consumption. Services of any kind are produced and consumed simultaneously.

Meaning:
Service is an act of performance that one party offers to another for certain consideration or without consideration essentially intangible and does not result in ownership of any thing, e.g. services of teacher.
Services are provided to the customers to fulfil their needs. Services are closely associated with the goods and hence it is difficult to identify and separate the services. The ownership and possession cannot be transferred on sale of services. Services come into existence only at the time they are bought and consumed. E.g. banking, insurance, transport, warehousing, telecom, etc. Business cannot run and manage without business services.

Definition-

According to Philip Kotler, “A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.”

Features of services:

• Intangibility: A service is intangible because it cannot touched, seen or smelt. Services can be experienced by the receiver. They lack material form and hence services cannot be demonstrated as like goods. Service providers must deliver qualify services on time to the consumers to win their confidence.
• Inseparability: One of the important features of service is that the service and the service: provider cannot be separated from each other. The presence of service provider is necessary at the time of providing the service. The production and consumption of service take place simultaneously.
• Inconsistency: Services are inconsistent and heterogeneous. Services lack perfect standardisation. The quality of service may differ person to person and from time to time although service provider remain the same.
• Perishability: Services are perishable in nature. The production and consumption of services cannot be separated and hence services cannot be stored for future consumption.
• Non-Transferability: The ownership of services cannot be transferred from service provider to the user. All consumer services are non-transferable in nature.
• Consumer participation: The service provider cannot offer or render services without the presence of consumer. Similarly customer cannot get services in the absence of service provider. Hence, participation of consumer and presence of service provider is equally important.

Business Services-

Business cannot be run and operated in isolation. Services of different types facilitate the business to grow and develop rapidly. Business services are necessary for smooth functioning of all business activities.

Types of business services:
The different types of business services are shown In the following chart:

Banking-

Meaning:
The word ‘Bank’ is derived from the French word ‘Banco’ which implies ‘bench’. In olden days, moneylenders used to display coins and different currencies on the benches or tables for the purpose of lending or exchanging.

Accordingly, bank refer to the financial organisation which deals with money and offers certain financial services such as accepting deposits and lending money to the consumers as per their financial requirements.

According to the Indian Banking Regulation Act, 1949 banking company means, “any company which transacts the business of banking in India.” and further defines the term ‘banking’ as “accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise.”

Types of Banks:

(1) Central Bank: The central bank in a country is the apex institution at the top of all the banking institutions operating in the country. Every country has its own central bank. In India, the Reserve Bank of India (RBI) is a central bank which was established in 1945 under a separate statute called Reserve Bank of India Act, 1944. It performs certain functions such as issuing currency notes, framing monetary policy, acting as bankers to the Government and banker’s bank to all the banks in the country.

(2) Commercial bank: It plays key role in economic and social development of a country. It performs primary functions which include accepting of deposits and leading of money and secondary functions which include agency functions and utility functions.

The commercial banks are grouped into three categories:

• Public Sector Banks: The banks in which majority of the share capital is held by the Government of India are called public sector
• Private Sector Banks: The banks in which majority of the share capital is held by private individuals are called Private Sector Banks e.g. HDFC Bank, ICICI Bank, etc.
• Foreign Banks: The banks which are registered outside India but operate through their branches in India are called Foreign banks, e,.g. Standard Chartered Bank, American Express Bank, etc.

(3) Co-operative Banks: Co-operative banks are formed and organised under the Indian Co¬operative Societies Acts and regulated under Banking Regulation Act. They are very popular in semi-urban and rural areas. They are primarily meant for catering to the financial needs of economically backward people, farmers and small scale units.
There are three types of co-operative banks at different levels:

(a) Primary Credit Societies: The primary credit societies are formed and established at village level. These credit societies collect funds in the form of accepting deposits from members and common people. They also get funds from the District and State Co-operative Banks for the purpose of lending.

(b) District Central Co-operative Bank: The District Central Co-operative Banks are established and operate at district levels. These banks collect funds in the form of deposits from people at district level and also get funds from the State Co¬operative Banks for lending purposes.

(c) State Co-operative Banks: The State Co-operative Banks work at state level. These banks supply the funds to the District Centred Co-operative Banks and Primary Credit Societies as and when required and monitor the functions of both.

(4) Industrial Development Banks: The banks which provide medium and long term finance for the purpose of expansion and modernisation of business are called Development

Banks, e.g. Industrial Finance Corporation of India (IFCI). Functions of these banks are underwriting of shares issued by public limited companies, providing medium and long loans and purchase debentures and bonds.

(5) Exchange Banks: These banks and large number of commercial banks undertake foreign exchange transactions e.g. Barclays bank, HSBC are exchange banks. They perform the different functions such as financing foreign trade transactions, issue letter of credit, discount foreign bills of exchange, remits dividend, interest, profits, etc.

(6) Regional Rural Banks (RRBs): These banks were established in 1975. 50%, 35% and 15% of the capital of these banks are provided by the Central Government, Sponsored banks and State Government respectively. These banks collect deposits from rural and semi-urban areas, provide loans and advances to the small and marginal farmers, agricultural workers and rural artisans.

(7) Savings Bank: A saving bank is one which has the main object of inculcating the habit of saving especially among rural community. The postal saving bank, commercial banks and co¬operative banks, act as saving banks.

(8) Investment Bank: Investment banks offer financial and advisory assistance to the business firms and government organisations. These banks provide advice on investments, helps in mergers and acquisitions by undertaking research. These banks do not directly deal with common public.

(9) Specialised Banks: These banks fulfil the requirements and provide possible support for establishing business in specified areas, The different types of specialised banks are:

• Export and Import Bank (EXIM): These banks provide the financial assistance and support to set up business for export and import of goods and services. Thus, these banks also help in promoting international trade of India.
• Small Industries Development Bank of India (SIDBI): This bank was established on 2nd April 1990 under the Act of Indian Parliament.

It acts as the main financial institution for financing, promoting and developing the Micro, Small and Medium Enterprises (MSMEs) and acts as co-ordinator of the institutions engaged in similar activities.

(c) National Bank for Agricultural and Rural Development (NABARD): This bank provides short term and long term credit to the people engaged in agricultural and allied activities through Regional Rural banks. It is also concerned with the functions of policy planning and operations relating to agricultural credit and credit for other activities in rural areas. It does not deal with common people.

New Models of Banking:

(i) Small Finance Banks: Small finance banks are the type of banks suitable for specific groups of the society which is not served (helped) by the other banks. These banks provide basic banking services of acceptance of deposits and lending money. These banks specially provide ! financial assistance to the small business units, small and marginal farmers, micro and small industries and unorganised sector entities. Existing Non-Banking Financial Companies (NBFC), Micro Finance Institutions (MFI), Local Area Banks (LAB) can apply to become small finance banks, These Banks are set up as public limited companies under the Companies Act 1956 and are governed by the provisions of Reserve Bank of India Act, 1934 and Banking Regulation Act 1949. Their two main objectives are: (i) to make provision of savings for unserved and underserved sections of the population and (ii) to supply credit to small business units, small and marginal farmers, micro and small industries and unorganised sector. Jana Small Finance Bank, Equitas Small Finance Bank, etc. are the examples of Small Finance Banks.

(ii) Payment Bank: Payment bank is a new model of banking started by the Reserve Bank of India. Its main objective is to provide financial services to small businesses and low income group people. It carries out functions such as, mobile banking, ATM cards, net banking, etc. These banks are not allowed to lend money and render services of credit cards. It can accept demand deposits up to ₹ 1 lakh. Paytm (Payment bank), Airtel Payment Bank, Indian Post Payment Bank, etc. are its examples.

Functions of Commercial Bank:

(A) Primary Functions: The primary functions of commercial banks are also known as core banking functions. They are:

(1) Accepting deposits: The commercial banks accept deposits from public and business organisations under two heads viz. Time Deposits and Demand Deposits.
(i) Time Deposits: The deposits which are repaid to the customers after the expiry of decided time period are called time deposits. They are further classified as:

(a) Fixed Deposit: It is a type of deposit account where lumpsum amount is kept for certain specified period of time bearing fixed rate of interest. Withdrawal of amount is not permitted before maturity period. The depositor is given Fixed Deposit Receipt (FDR). He can borrow money against FDR from the bank.

(b) Recurring Deposit: It is a type of deposit account where depositor is required to deposit certain fixed amount every month for specific period of time. On the maturity, the deposit holder gets the entire amount deposited plus interest accumulated on it. Rate of interest is usually higher depending on the length of time. The depositor is given pass book by the bank to know the position of the RD account.

(ii) Demand Deposit: It is a type of deposit account in which deposited amount is repaid to the depositors as and when they demand. Money can be withdrawn as per the wish of the customers through withdrawal slip, cheques, ATM Card, online transfer, etc. There are two types of account in this.

(a) Savings Account: A bank account designed for the personal savings is called savings account. This account is suitable for those people who have fixed and regular income like salary. Although there is no restriction on the depositing money but frequent withdrawals are not permitted by the bank. Interest on balance amount is credited in this account after every 3 months, six months or 1 year period. The accountholder get pass book facility, balance on SMS, account statements, etc. to know financial position.
In this account some banks provide the facility of flexi deposit which combines the advantages of saving account and fixed deposit account. In this option, the excess funds over particular limit get transferred automatically to fixed deposit account and in case there is shortage of fund in the account or to honour any cheque payment, funds from fixed deposit get transferred to savings account.

(b) Current Account: The bank account most convenient to traders and commercial organisations is the current account. It places no restrictions on the number of times money is deposited or withdrawn from such account. Generally no interest is paid on the balance in this account. Under this type of deposit, accountholders are entitled to get overdraft facility from the bank.

(2) Granting Loans and advances:

(i) Loans: The banks grant loans and advances to industry and common people at higher rate of interest for different period.

• Short Term loans are given by the banks for a period up to 1 year. It is taken by the borrower to meet the need of working capital.
• Medium term loans are given by the banks for a period of 1 year to 5 years to meet the need of working capital and fixed capital.
• Long term loans for a period of 5 years or more to meet the requirement of long term capital.

(ii) Advances: Banks give advances to fulfil the different financial requirements of the businessman. The types of advances are as follows:

(a) Cash Credit: Under this arrangement, the bank opens a separate account (as in the case of loan) and credits a certain amount to this account. This facility is given to both current accountholder as well as savings accountholders. Interest rate charged on this account is higher.

(b) Overdraft: Overdraft is a kind of temporary loan on which the bank charges interest on the actual amount overdrawn. This facility is given only to current accountholders to meet the need of working capital. The period of overdraft varies from 15 to 60 days. All entries are shown ih current account.

(c) Discounting of Bills: A customer holding a bill of exchange can discount it at a bank. The bank pays the amount of the bills after deducting certain amount towards discount. On maturity, the bank collects the proceeds of the bill from its drawee.

(B) Secondary Functions: The secondary functions are grouped into two categories. They are explained below:
(a) Agency Functions: The commercial bank acts as an agent of his clients and performs the following agency functions:

• Periodic collections and payments: As per the standing instructions of the customers, bank collects salary, dividends, interests, cheques, drafts, etc. and makes various payments such as taxes, bills, premiums, rent, etc. For these services bank charges certain service charges quarterly or annually.
• Portfolio management: Most of the commercial banks undertake the functions of buying and selling of securities such as shares, bonds, debentures etc. on behalf of the clients, This is called portfolio management. On account of this facility, more customers are attracted towards commercial banks.
• Fund transfer: The commercial banks provide services of fund transfer from one branch to another branch and also to the branch of another bank.
• Dematerialisation: The banks offer dematerialisation facility to their clients and hold ; their securities in electronic form. As per the instructions, banks undertake transfer of securities like purchase or sale.
• Forex transactions: Forex stands for foreign exchange. The bank purchases foreign exchange from its clients and pay them in Indian currencies. The bank also sells foreign exchange to its clients when they need to settle foreign transactions.

(b) Utility Functions:

• Issue of drafts and cheques: The bank issues cheques book to its accountholders only and issues drafts to both accountholders as well as to non-accountholders for making payments to third parties. Bank charges commission for issue of bank drafts.
• Locker facility: The bank provides safe deposit vaults (lockers) to the customers on rental basis for keeping their valuables like gold, ornaments, jewels, securities, valuable documents, etc. in safe custody.
• Project report: As per the request of the client, bank prepares project report and feasible studies on their behalf to enable them to obtain funds from the market and clearance from government authorities.
• Gift cheques: The bank issues gift cheques i and gold coins to both accountholders as well as to non-accountholders, for the purpose of gifting on different occasions such as wedding, birthday,  anniversaries, etc.
• Underwriting services: The banks acts as underwriter to buy shares and other securities issues by the newly established company if their shares or securities are not fully subscribed.
• Gold related services: Now banks have also started providing gold services to its clients. They buy and sell gold and gold ornaments from customers on large scale. They also provide advisory services on the investment of gold funds, gold EFF, etc.

E-banking service-

E-Banking implies electronic banking i.e. virtual banking or online banking. The following services are provided under e-banking:

(i) Automated Teller Machine (ATM): With the help of ATM card, we can deposit or withdraw cash from ATM machine. It provides 24 hours service, privacy and convenience to the bank customers. ATM can also be used for other banking transactions, like balance inquiry, request of cheque book, etc.

(ii) Credit cards: It is a payment card which allows the cardholder to pay for different transactions. Issuing bank grants credit to the cardholder and later on recover the dues from the user. Credit card gives convenience to users as they need not carry cash with them.

(iii) Debit cards: Nowadays, most of the banks issue debit cards to accountholders as soon as account is opened. By using this card, the cardholders can make purchases and avail of services at different places through payment from bank. The amount is deducted from or debited to the account of the debit cardholders immediately.

(iv) Real Time Gross Settlement (RTGS): it is a fund transfer system where transfer of funds takes place from one bank to another on a ‘Real time’ i.e. not subject to any waiting period and ‘Gross basis’ i.e. on one to one basis without bunching any other transaction. Minimum ₹ 2 Lakh can be remitted through RTGs but there is no upper limit for such remittances. This amount differs from bank to bank.

(v) National Electronic Funds Transfer (NEFT): This nationwide system facilitates individuals, firms and companies to transfer funds electronically from any branch of bank to any individual, firm and company having account with any other branch of bank in the country. The clients is required to give details like NEFT code  of branch, account number of transferee. However, unlike RTGS, the transactions are bundled together in NEFT.

(vi) Net banking and Mobile banking: With | the help of laptop, computer and other gadgets,
the client can operate his bank account for banking transactions. Mobile banking means using banking services with the help of mobile phone. The client has to register with the bank for the use of this facility. The bank gives unique code for doing transactions. Through mobile client can request for balances, transfer of funds, stop payment, issue of cheque book, etc.

(vii) IMPS facility: IMPS is an abbreviation of Immediate payment services. By using this facility, the client can instantly transfer funds to any other bank account.

By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 3 Small Scale Industry and Business students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 3 Small Scale Industry and Business

Small Scale Industry-

Meaning:
Traditionally
Industries which are organized on a small scale and produce goods with the help of machines, labour and power.

• Using power with less than 50 employees
• Not using power with employees strength more than 50 but less than 100

Classification of Business-

1. Micro
2. Small
3. Medium

Micro:

• Manufacturing Sector: Does not exceed ? 25 lakhs
• Service Sector: Does not exceed ? 10 lakhs

Small:

• Manufacturing Sector More than ? 25 lakhs but does not exceed ? 5 crores
• Service Sector: More than ?10 lakhs but does not exceed ? 2 crores

Medium:

• Manufacturing Sector: More than ? 5 crores but does not exceed ? 10 crores
• Service Sector: More than . ? 2 crores but does exceed ? 5 crores.

Definition of Small Scale Industry-
(If the following condition is satisfied)

“Investment in fixed assets like plant and equipment either held on ownership terms or on lease or hire purchase should not be more than one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.”

Classification of Small Scale Industries-

Traditional Small Scale Industries:

1. Handloom
2. Handicraft
3. Coir
4. Sericulture
5. Khadi and Village Industries

Modern Small Scale Industries:

• Bicycle Parts
• Sewing Machines
• Blades, Razors
• Electric Appliances
• Spare Parts

Importance of Small Scale Industries-

• Supply if Raw Materials to Large Industries
• Balanced Development between Rural and Urban Areas
• Opportunities to Young Generation
• Large Employment
• Utilisation of Domestic Resources

Advantages of Small Scale Industries-

1. Cost Savings
2. Adaptability
3. Limited Capital
4. Low Gestation Period
5. Labour intensive
6. Opportunities Rural Youth
7. Upliftment of Economy
8. Decentralised Economy
9. Export Earning
10. Regional Balance

Steps in Setting up of a Small Scale Business-

• Decision of Business Area
• Study of Business Environment
• Selection of Product
• Selection of Place
• Selection of Technology
• Business Proposal
• Finance
• Registration
• Actual arrangements of Resources
  • Physical resources
  • Arrangement of Power and Water Supply
  • Staffing

Arrangement of Power and Water Supply

• Production and Marketing of Product
• Review or feedback of Future Changes.

Challenges Before Small Scale Industries-

• Problems of Marketing
• Infrastructural Problem
• Credit and Finance
• Delayed Payment
• Sickness Problem
• Personal Problems
• Shortage of Raw Material
• Outdated Technology
• Underutilization of Capacity
• Labour Problem

Word Meaning:

vocational – particular occupation; contemplating – looking forward; procure – to obtain; notification – to inform; assistance – to help; lease – rental agreement; auxiliary – additional; significantly – important; advantages – benefits; overheads – expenses; minimises – to reduce; migrations – moving of people from one place to another; potential – capacity; aspirants – a person who has ambition; technical – specialized knowledge about a subject; abundant – plenty; gestation – development; knitwear – woollen clothes; processed food – preserved food; substantially – considerable; concentration – centring/centralisation; devastated – destroy; adopt – to accept; tremendous – in very huge amount; inheritant – from ancestors; upliftment – improvement; compromise – to settle at a point; absenteeism – regularly staying away from work; commitment – dedication; turnover – rate at which employee leave the workplace; exploit – make use of an unfair way; feasible – not possible; prevalence – commonness; load-shedding – regular interruption of electricity; voltage fluctuation – regular change in voltage; description – to describe / explain; analyse – to examine; market research – gather information about consumer needs; installed – to fix; appraisal – to evaluate; technique – skill or ability to do so; allocating – to assign / issue; quantum – share or a portion; directories – Website list; exposure – to display; envisaged – to predict.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 7 Company Meetings – I students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 7 Company Meetings – I

Meeting-

Derived from :
Latin word ‘Maeta’. meaning ‘face to face’.

Meaning:
Gathering or assembling of two or more persons for transacting any lawful business.

Definition:
“Company Meeting is an assembly of people connected with the company who have gathered for the purpose of discussing matters related to it.”
– “Show & Smith”

Importance of Company Meetings-

• Opportunities for members to come together
• Reading minutes of the previous meeting
• Fixation and implementation of policies, plans and programmes
• Analysis of problems
• Legal requirements
• Other elements

Essential of a valied meeting-

• Duly convened
• Properly conducted
• Properly constituted

Proper Convening of Meeting-

Proper Authority:

• Board of Directors
• NCLT
• Central Government

Notice(SEC 101:

• Advance written invitation containing details of meeting.
• Authorised by – BOD’s Length – 21 clear days
• Sent through
  • personally
  • ordinary post
  • registered post
  • newspaper
  • e-mail

Agenda:

• List of items to be
• discussed at the meeting
• Sent along with notice

Types of Agenda

1. Bare statement agenda
2. Draft minutes agenda

Proper Constitution of Meeting-

1. Quorum:

• Minimum number of members to be present at a meeting
• Public Company

Private Company – 2 members
Board Meeting
1/3 of total directors or 2 whichever is higher.

2. Chairman (sec 104):
Person responsible for smooth conduct of the meeting. He presides over a meeting

1. Power
2. Duties

Power:

• To keep order and conduct the meeting.
• To decide the priority of speaker.
• To maintain order in debate
• To prevent the use of improper language
• To adjourn the meeting
• To give casting vote
• To declare result of voting
• To give ruling on point of order.

Duties:

• To see that the meeting is properly convened and constituted.
• To see meeting is conducted in a proper manner.
• To see items are discussed as per agenda
• To maintain order in meeting
• To declare result of voting.
• To see proper and correct are minutes entered and to sign them.

Proper Conduct Of Meeting-

1. Proxy (Section 105):
A person attending and voting of on behalf of a member in general meeting.

Legal Provisions:

• Appointment
• Right
• Membership
• Proxy form
• Inspection

2. Motion (Section 105):
A proposal put before a meeting by proposer or mover for consideration and adoption.

Essentials:

• must be in writing
• signed by the proposer
• put to meeting by the Chairman.
• should not contain any sort of argument, or defamatory expression.
• Wording should he affirmative
• must be within the scope of agenda.
• must be seconded by at least one member.

Kinds of Motions:

1. Formal motion
2. Substantive Motion

3. Voting :
To express opinion in a formal way

Method

• Voting by voice
• Voting by Division
• Voting by show of hands.
• Voting by Ballot.
• Voting electronically.
• Voting by Postal Ballot.
• Voting by Poll.

4. Resolution:
A motion accepted in a meeting

Type:

• Ordinary Resolution (51%)
• Special Resolution (75%).
• Resolution requiring special notice.
• Resolution requiring Registration.
• Resolution by Circulation.

5. Minutes (Section 118) :
A written record of proceedings of a meeting

Minute (Section 118)-

Meaning : It is a written record of proceedings of a meeting.
It should be prepared within 15 days after the meeting.
It must be recorded in minutes book and written in the past tense

Definition :
The term minutes means a concise and accurate official record of the decisions taken at the meeting.
– M. C. Kuchhal

Importance of Minutes :

• Authentic Record
• Evidence
• Future reference
• Legal provisions
• Information to Absent members
• Information about Resolution
• Inspection of Minutes (Section 119)

Amendment: It is any alteration or changes proposed by a member to the original motion.
Amendment (moved to alteroriginal motion bt …):

(a) adding some new words
(b) deleting some word
(c) Replacing some word
(d) changing the position or place of word

Point of order : It is a question or objection raised by a member regarding the conduct of a meeting.

Point of Order(may be for…):

• Use of improper language by any member
• Absence of Quorum
• Misbehavior by any member
• Breach of rule relating to meeting

Requirement Of Company Meeting-

• Notice
• Agenda
• Quorum
• Chairman
• Motion
• Amendment
• Voting
• Resolution
• Point of
• order
• Proxy
• Minutes

Word Meaning:

determine – to find out precisely; implementation – to start doing / to enact; analyzed – detailed examination; convening – proper person to call meeting; vital – important; intimation – to bring to notice; entitled – right to do something; transacted – conducted or carried out; authority – right or power; deceased – dead; insolvent – unable to pay; initiative – to take lead / to take first step; deliberately – intentionally; annexed – extra part attached; consultation – formally discussing / formal discussion: sequence – in order; brief – short; contentious matter – legal matter; commencement – at the beginning of something; invalid – not legally recognized; preside – to be in a position of authority; priority – a thing regarded as more important than others; relevancy – closely connected; debate – a formal discussion on a particular matter; adjourn – break off (a meeting case) with the intension of resuming it later; casting vote – an extra vote exercised by a chairperson; alteration – revision or amendment; proposer – mover of a motion; motion – a proposal put before a meeting; defamatory – damaging reputation of others; affirmative – agreeing with a statement; seconded by – supported by; conclusion – to end or finish; inconvenient – not easy or discomfort; substantive motion – a motion that is changed due to amendment; amendment – an alteration in original motion; voting – to express opinion in a formal way; ballot – a system of voting secretly / paper on which you write your vote, proxies – the authority to represent someone; resolution – a final decision to do or not to do; validity – not yet expired.