Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 11 Sociology Notes Chapter 1 Introduction to Sociology students can recall all the concepts quickly.

Maharashtra State Board Class 11 Sociology Notes Chapter 1 Introduction to Sociology

→ Initially, sociology as a discipline emerged in Europe, but sociology emerged as an independent and separate discipline in the mid 19th century. Sociology is the science of social relationships and social behaviour. The French philosopher Auguste Comte is considered to be the ‘Father of Sociology’.

Nature of Sociology:

1. Empirical Science
2. Theoretical and Applied Science
3. Factual Science
4. Holistic Science

The emergence of Sociology: The roots of the emergence of sociology as a scientific discipline can be traced during the French Revolution and Industrial Revolution of European history which embodied tremendous Social, Political, and Economical changes. This period of change in European Society is known as the ‘Enlightenment period.’

Factors that affect the emergence of sociology:

1. Commercial Revolution
2. Industrial Revolution
3. French Revolution
4. scientific revolution
5. Urbanization

→ The subject matter of Sociology is very wide, because all aspects of social interactions are included in Sociology.

Scope of Sociology:

• Bio-Sociology
• Sociology of Art
• Sociology of Market Research
• Visual Sociology
• Diaspora Sociology

Importance of Sociology:

• studies society in a scientific manner
• gives knowledge about social diversities
• develops a scientific approach
• career-oriented
• solution to social problems
• keeps people updated and alert

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 11 Correspondence with Banks students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 11 Correspondence with Banks

Bank – Definition-

(a) “Banking means accepting for the purpose of lending or investment of deposits of money from the people repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise.
– Banking regulation Act 1949

(b) “A Bank is an institution which deal in money and credit”.
– Cairns Cross

Functions of Commercial Bank-

1. Primary Functions:

1. Accepting Deposits
2. Lending Money:

1. Accepting Deposits

• Demand Deposits
• Time Deposits

Demand Deposits

• Savings Account
• Current Account

Time Deposits:

• Fixed Deposits
• Recurring Deposits

2. Lending Money:

1. Loans
2. Advances

Loans:

• Short Term Loan
• Medium Term Loan
• Long Term Loan

Advances:

• Overdraft
• Cash Credit
• Discounting Bill

2. Secondary Functions:

1. Agency Functions
2. Utility Functions

1. Agency Functions:

• Collection of Cheques and Bill
• Collection of Dividend, Interest, Salary
• Payment of Rent, Insurance, Electric Bill
• Purchase and Sales of Securities

2. Utility Functions

• Safe Deposit Vault
• Letter of Credit
• ATM, Credit Card, Debit Card
• Travellers Cheque
• RTGS, NEFT, NACH, ECS.

Demand Deposits :
The deposits which are payable on demand are called Demand deposits. There are 2 types of Demand Deposits i.e. Savings Deposits and Current Deposits.

Time Deposits :
The Deposits which are not repayable on demand are called ‘Time Deposits’. There are ‘2 types of Time Deposits i.e. Fixed Deposits and Recurring Deposits.

Loans :
A loan granted for a specific time period against personal security, gold or silver and other movable or immovable assets is called term loan.

Advances :
An advance is a credit facility provided by the bank to its customers for a shorter period to meet day-to-day requirements of a business.

Overdraft:
Overdraft is a credit facility granted by Bank to its Current Account holders against certain collateral securities. Banks allow its customers to overdraw an amount upto particular limit.

Cash Credit:
It is a facility, where bank allows the borrower to withdraw upto a specific limit as and when he needs by opening separate account.

Precautions By Secretary While Corresponding with Bank-

1. Legal procedure
2. Prompt reply
3. Brevity Conciseness
4. Secrecy
5. Accuracy
6. Clarity
7. Courtesy

Circumstances For Correspondence With Banks-

1. Opening a Current A/c
2. Request for issue of letter of credit
3. Stop payment of cheque
4. Request for anting overdraft facility

Word Meaning:

aids – to help; negotiable – flexible /to bargain; lending – to give money for certain period of time; discounting – deducting the amount; idle – to sit without work / not in use; assistance – to help; surplus – excess/extra; remittances – transfer / to pass on; channelize – planning; executor – a person who is appointed to carry out the work; commercial – business / trading; attorney – legal person; e-statement – statement received in mail of an individual; settlement – payment; overdraft – borrowing money in excess of funds available in individual account for certain period; precautionary – to take care / prevention; recurring – repeatedly; inconvenience – difficulty; periodically – at regular intervals; regretted – to be sorry; immovable – cannot be moved from one place to another for certain days month/years; hypothecation – any commodity kept as a security against a loan; sanctioned – to allow /to approve; specimen – sample; collateral securities – an asset kept as a security for taking loan.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 3 Formation of a Company students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 3 Formation of a Company

Formation of a Company-

• it means registering or incorporating a company with the Registrar of Companies (R.O.C.)
• it must be registered with ROC of the concerned state where a company is situated.
• ROC is an authority as per the companies Act which can incorporate or register the companies.
• 3 types of companies can be formed depending on number of promoters.

Promoter-

• is a person who takes an initiative efforts to form a company.
• Promoter can be an individual, a partner, a company, an association or a syndicate.

Companies Based On Minimum Number Of Promoter-

1. Public Company – 9Promoters
2. Private Company – 2Promoters
3. One person Company – 1Promoter

Companies Based On Capital Structure-

MOA – Memorandum of Association is a document stating the aims and objectives of the company.

AOA – Articles of Association is a document stating rules and regulations for internal management.

Promotion – It means taking all necessary steps to incorporate a company as per the rules and regulation of the Companies Act, 2013.

Prospects:

• a document issued by public company.
• inviting public to subscribe or buy the shares of prospects issuing company.

Annual Return :

• yearly statement prepared by the company.
• giving information about company’s ownership, its activities and financial position of the company.
• filed with Registrar of Company.

Stages In Formation Of A Company:

1. Promotion Stage
Steps:

• Idea of starting business
• Deciding objects of the business, amount of capital, scale of operation, etc.
• Preparing documents — MOA and AOA
• Approaching investors for capital
• Nominating first directors and first subscribers to MOA and AOA
• Forming contracts (Pre- incorporation Contracts or preliminary contracts)

2. Incorporation state
Steps:

• Obtain Digital Signature Certificate (DSC)
• Register DSC in the name of Director with MCA
• Obtain Director Indentification Number (DIN)
• Apply for Reservation of Name
• Finalize Memorandum of Association and Articles of Association
• Signing, Stamping and Dating of Memorandum and Articles of Association
• Prepare other necessary documents
• Decidingaddressfor communication
• Obtain a statutory declaration
• Filing of application and documents for Incorporation with ROC
• Obtaining Certificate of Incorporation

Commencement of Business Stage
Steps:

• Filing of Declaration. by Director
• Filing a verification of registered office
• Obtain licence from Sectoral Regulator
• Obtain Certification of Commencement of business

Role of Promoters:

• Decide objects of business, amount of capital, size of business operation
• Generate idea of starting business
• Entering Pre-incorporation conträcts Preliminary contracts
• Prepare documents MOA and AOA
• Approach investors for raising capital
• Nominate first directors and first subscribers to MOA and AOA

Fiduciary Duty- It is a duty of person to act in good faith and trust which is put upon him by another person.

Steps in Promotion of a Company-

• Come up with an idea or activity
• Preparing financial plan
• Preparing draft of MOA and AOA
• Entering Preliminary contracts
• Appointing first Directors

DSC- Digital Signature Certificate is a signature of a person in digital or electronic form
It is used to sign on e-documents.

MCA- Ministry of Corporate Affairs administers the Companies Act, 2013.

DIN-

• Director Identification Number is to be applied in electronic form SPICe – 32 at the time of incorporation.
• A person to be appointed as a Director must have a DIN.
• It is a 8 digit identification number.

CRC- Central Registration Centre is an authority which provides speedy incorporation related services.

PAN-

• Permanent Account Number
• Issued by Income Tax Department
• 10 digit Alpha-numerical code
• Proof of identification of a person paying Tax

Contents Of Certificate Of Incorporation-

• Pan and tan of a Company
• Name of a Company
• Date of issue of Certificate of Incorporation
• Signature of ROC with date and seal
• CIN

TAN-

• Tax Deduction and Collection Account Number
• Issued by Income Tax Department
• 10 digit alpha-numerical code
• Issued to all persons —responsible for deducting or collecting Tax

CIN – 

• Corporate Identity Number
• Issued by ROC at time of Incorporation of Company
• 21 digit alpha – numerical code

Indicates

• Listed or Unlisted company
• Industry code
• State of Company’s location
• Year of incorporation
• Type of ownership
• Registration number

Word Meaning:

incorporation – to enroll; commencement – to start; promoters – persons who carry the process of formation of a company; extent – amount/size; guaranteed – confirmed; accustomed – usually; nominated – suggested/ put forward; subscribers – members; fiduciary – financial; compensates – returning back in terms of money; reimbursing – to pay back / repay; preliminary – starting, initial; database – records; pursuant – according to; description – detailed; convicted – declared; preceding – coming before something; stating – to declare; integrated – jointly / combined; distinct – well defined in existence; borrowing – to get or receive something; declaration – a report, statement; sectoral – specific area; regulators – a person or body who supervises (looks after) particular area; prospectus – a printed booklet giving details of company.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 10 Correspondence with Directors students can recall all the concepts quickly.

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

Directors

• Collectively as a ‘Board’ exercises powers and authorities
• Elected representatives of the shareholder
• Called as Brain of the company
• Responsible for decision making, framing plans and policies.
• Holds important position in management of a company.

Precautions While Corresponding with Directors-

• Politeness
• Accuracy
• Brevity
• Initiative
• Prompt Reply

Circumstances for Corresponding with Directors-

• Notice and Agenda of Board Meeting
• Asking to disclose personal interest of Director in a contract
• Report to the Director who was absent for a meeting.
• Reminding provision regarding absenteeism at the Board Meetings.

Secretary-

• Executive officer of a Joint Stock Company
• Provides assustance and guidance to the Directors
• Implements decisions taken Board of Directors
• Acts as a link between the Directors and other management staff
• Called as – eyes, ears, hands and mouthpiece of the ‘Board’

Word Meaning –

collectively – together; key position – important position; cautious – careful; tactful – understanding; prompt – quickly; queries – question; empathy – ability to understand others; goodwill – reputation; numerical – in numbers; factual – real; brevity – in brief; lengthy – long; irrelevant – unimportant; circumstances – situation; consecutive – continuous; periodicity – at regular time gap; disclose – tell; accelerate – quickly; sole – single; consideration – attention; vacated – to leave; diligently – doing work carefully; skip – fail to attend; scheduled – planned; disclosure – declaration; expert – person who is knowledgeable on particular subject; forwarded – sent; constantly – always.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 2 Joint Stock Company students can recall all the concepts quickly.

Maharashtra State Board Class 11 Secretarial Practice Notes Chapter 2 Joint Stock Company

Evolution of Business Organization –

1. Sole Trading Concern
2. Joint Hindu Family Business
3. Partnership Firm
4. Limited Liability Partnership
5. Co-operative Society
6. Joint Stock Company

Sole Trading Concern
Owned, managed and controlled by one person. It is also called as ‘One Man Business’. A person who conducts the business is called “Sole Trader”.

Features of Sole Trading Concern –

1. Not suitable for large scale business operations
2. No separate Law or Act but follow all laws of land
3. Only one owner
4. Do not have separate legal status
5. Capital contribution is very small
6. Liability is unlimited
7. No division of profit or loss
8. Decisions of business by Sole trader
9. Maximum business secrecy

Joint Hindu Family Business-

• When a Hindu Undivided Family conducts business, inherited by it as per Hindu Law, it is called a Joint Hindu Family Business.
• Exists only in India governed by Hindu Succession Act 1956.

Features of Joint Hindu Family Business-

• Karta decision maker
• Membership is by birth only
• Karta : Manager, controller and co-ordinator
• Limited liability of ‘Co-parceners’
• Liability of Karta is unlimited
• Profit sharing ratio keeps on changing
• Head of family as “Karta”
• Other family Members are ‘Co-parceners’
• No limit on minimum and Maximum number of members
• Engaged in the business

Partnership Firm-

• The business organization which is owned, managed and controlled by two or more person is called a partnership firm.
• Owners are called Partners, Organization is called a firm.
• It is governed by Indian Partnership Act, 1932.

Features of Partnership Firm-

• Partners share profit and losses in agreed ratio
• NO separation of ownership and management
• Agreement between two or more persons
• Number of members Minimum : Two, and Maximum fifty for general business
• Joint owners as well as joint managers Liability of partners unlimited, joint and several
• Capital contributed by partners
• DO not enjoy separate legal status

Limited Liability Partnership (LLP)-

• It has a combination of features of both partnership and joint stock company.
• Partners have limited liability
• Governed by the Limited Liability Partnership Act of 2008.

Features of Limited Liability Partnership-

1. Separate legal entity i.e. a body corporate
2. Number of partners- Minimum- two. Maximum- unlimited.
3. No minimum requirements of capital contribution.
4. Simple to form and easy to operate.
5. Liability of each partner is limited to his share as written in the agreement.
6. Low cost of formation.
7. No restriction on joining and leaving the LLP except as stated in partnership agreement.
8. Double taxation is avoided, no tax on profit share.

Co – operative Society-

• It is a voluntary association of persons formed to achieve certain economic objectives.
• It is service oriented.
• Governed under the Maharashtra State Co-operative Societies Act 1960.

Features of Co- operative Society-

• Compulsory Registration
• Membership open to all.
• Number of members- Minimum- ten, Maximum- no limit.
• Limited liability of a member.
• Aim is not maximization of profit but to provide services to its members.
• Independent legal status.
• Democratic in nature, equality in voting right One member one vote’.
• Control and supervision by the state government.

Joint Stock Company (JSC)-

• It is a more formal form of business organization.
• Satisfies requirement of modern industry
• Convenient to conduct large scale business industry
• Types of  Joint Stock Companies
  • Public
  • Private
  • Government
  • Statutory etc.

Definition of Joint Stock Company-

• According to Section 2(20) of the Companies Act 2013. “Company means a company incorporated under this Act or under any previous company law.”
• According to Prof. H. L. Haney “A Joint stock company is a voluntary association of individual for profit, having its capital divided into transferable shares, the ownership of which is the condition of membership.”

Features of Joint Stock Company- 

1. Voluntary Association –

• Membership is open to all
• Can become a member or leave subject to the provisions of Articles of Association of the company.

2. Incorporated Association-

• Registration or incorporation is compulsory.
• After registration an association obtains the status of a Joint Stock Company.

3. Separate Legal Entity

• Members are the owners and are liable in limited way.
• Members are conferred with rights and duties.

4. Artificial Person

• Created by law.
• Legal process and own independent personality.
• Legal rights to enter into contracts, purchase and sell assets and property etc.

5. Perpetual Succession

• Continuous in existence.
• Not affected by death, insolvency or retirement of any of any members.
• Very long and stable life.

6. Common Seal

• It is a device that acts as a signature of the company.
• Affixed on all the important documents and contracts.
• Usually signed by two directors and the secretary as a witness after the seal is affixed.

7. Limited Liability

• Shareholders have limited liability.
• Shareholder is liable to pay only the unpaid amount of his shares.
• Shareholder is not concerned with debts and liabilities of the company.

8. Separation of Ownership and Management

• Shareholders are real owners of the company, but large and scattered.
• Unable to manage the day to day affairs of the company.
• Board of Directors look after the management and policy decisions of the company. They are elected representative of shareholders.

9. Transferability of shares

• Shares of public company are freely transferable.
• Shares of private company are not freely transferable.

10. Number of Members

• Owned by a large number of persons.
• Private limited company — minimum 2 members maximum — 200 members
• Public limited company — minimum 7 members maximum — no limit

11. Capital

• Raise huge capital.
• In form of shares, debentures, bonds, public deposits
• Obtain loans from banks and financial institutions.

12. Government Control

• Company is controlled and supervised by the Government.
• Registered company follow rules and regulations of company law.
• Accounts are audited.
• Copy of profit and loss, balance sheet, financial statement are submitted to the registrar.
• To protect the financial interest of small investors.

Types of Companies-

1. On the basis of Incorporation
2. On the basis of number of members
3. On the basis of liability of members
4. On the basis of control
5. Other types

On the basis of Incorporation:

• Statutory Company
• Registered Company

On the basis of number of members

• Private Company
• Public Company
• One Person Company (OPC)

On the basis of liability of members-

• Company limited by shares
• Company limited by Guarantee
• Unlimited liability Company

On the basis of control-

1. Holding Company
2. Subsidiary Company

Others types –

1. Government Company
2. Foreign Company
3. Dormant Company
4. Listed Company
5. Small Company
6. Associate Company
7. Company not for profit

On the basis of Incorporation-

1. Statutory Company
2. Registered Company

Statutory Company:
Companies incorporated by Special Act passed by Central or State legislative, e.g. Reserve Bank of India, State Bank of India, Unit Trust of India, Life Insurance Corporation, etc.

Registered Company:
Companies incorporated under the Companies Act, 2013 or any previous company law.

On the basis of Number of Members

Private Company (SECTION 2(68)):

• Restrict the right of members to transfer its shares.
• Maximum number of members upto 200.
• Prohibits any invitation to the public for any securities or deposits of company.
• Company limited by shares or company limited by guarantee or an unlimited company.
• Must add the words “Private Limited” at the end of its

Public Company (Section 2 (71)):

• Has no restriction on the transfer of its shares.
• Minimum number of members should be seven.
• Has minimum paid up share capital.
• Does not prohibit any invitation or acceptance.
• Must add the word “Limited” after the name of the company.

One Person Company (Section 2 (62)):

• Single Promoter who has limited liability.
• Can have one or more directors.
• No need to hold Annual General Meeting.
• Better form of sole proprietorship.

On the basis of Liabilities of Members:

Company Limited By Shares Section 2(22):

• Have share capital and liability limited to the unpaid part of face value of shares purchased by member.
• May be a public company or a private company.
• Most popular type of companies.

Company Limited By Guarantee: Section 2(21)

• May or may not have a share capital.
• Member promises to pay a fixed sum of money specified in the Memorandum of the company.
• Non-profit making companies.
• Purpose of promotion of art, science, culture etc.

Unlimited Liability Company Section 2(92)

• Not having any limit on the liability of its members.
• Members are fully liable to cover the debts of the company.
• Can be either a private or . a public company or a one person private company.

On the basis of Control –

1. Holding Company Section 2(46)
2. Subsidiary company section2(87 )

Holding Company Section 2(46):

• Company holds more than one half of thetotal share capital of another company
• Has power to appoint or remove Directors of another Company.

Subsidiary company section2(87):
Company which is controlled by holding company.

Other Types-

1. Government Company:
Section 2(45):
Company in which not less than 51% of the paid up share capital is held by

• Central Government or
• State Government or Governments or
• Partly by Central Government and partly by one or more State Governments
• Subsidiary company of a government company. e.g. H.M.T, BHEL, ONGC etc.

2. Foreign Company:
Section 2(42):
Company incorporated outside India, but having a place of business in India.
e.g. Bata India Ltd, Nestle India Ltd.

3. Dormant Company:
Registered for a future project or has not made any significant accounting transactions in last two years or has not filed financial statements or annual returns in last two years, after making application u/s 455.

4. Listed Company: Section 2(52)
Company which has any of its securities listed on any recognized stock exchange following SEBI’s guidelines and the provisions of the Companies Act.

5. Small Company:
Section 2 (85):

• Paid up share capital of which does not exceed 50 lakh or such higher amount as may be prescribed
• whose turnover as per last profit and loss account does not exceed 2 crores or such higher amount as may be prescribed.

6. Associate Company: Section 2(6)
Company which controls at least 20% of total capital or of business decisions over a subsidiary company.

7. Company not for profit:
Registered u/s 8 of Companies Act.

Word Meaning:

revolution – complete change; radical – entire; anticipation – expectation; evolved – to come in existence; inadequate – insufficient/ not enough; emerged – came into existence; proprietor – single owner of business; operations – working; inherited – getting from ancestors; contribution – collection; formation – coming into being; achieve – to get; differs – unlike; democratic – representatives are elected; stability – fixed; Managerial ability – ability to manage various works at a given time; Statutory – owned by Government company; enactment – passed by; reveal – tells; conclude – end; Perpetual succession – Continuation; obtains – to get; conferred – grant; scattered – spread all over; desires – want; registrar – a person who looks after registration of company; obligations – responsibilities; penalized – fine; prohibit – restricted/stop from doing something; promoter – person who starts with an idea of starting an organization: memorandum – written document specifying the policies of a company; liquidation – converting assets into cash; significant – important; insolvency – financial loss to an individual or company.

By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 2 Trade students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 2 Trade

Meaning of Trade-

Trade means the process of exchange of goods and services with an object of earning profit estab1ishin
link between producers and consumers.

Types of Trade :

1. Internal Trade
2. External Trade

Internal Trade

• Wholesale Trade
• Retail Trade

Retail Trade

1. Itinerant Retailers
2. Fixed Shop Retailers

Itinerant Retailers:

• Hawkers
• Peddlers
• Street Traders
• Cheap Jacks
• Market Traders

Fixed Shop Retailers

1. Small Scale Retailers
2. Large Scale Retailers

Small Scale Retailers-

• General stores
• Second hand goods shops
• Authorized dealers
• Speciality shops

Large Scale Retailers

• Departmental Stores
• Supermarket Stores
• Chain Stores
• One price shops
• Malls

Channel Of Distribution-

• Producer / Manufacturer
• Wholesaler
• Retailer
• Consumer

Wholesale Trade-

By Philip Kotler
“Wholeselling includes all activities involved in selling goods or services to those who buy for resale or for business use.”

By Evelyn Thomas
“A true wholesaler is himself neither a manufactures nor a retailer but act as a link between the two.”

Features of Wholesaler-

• Purchases goods from the producer in large quantities.
• Takes risk in the process of distribution.
• Deals with one or few types of goods.
• A large amount of capital is required.
• Maintains price stability by balancing supply and demand factors. Manufacturers get direct information about market.
• Sells the goods to the retailers.

Performs the marketing functions-

• Assembling
• Warehousing
• Transporting
• Advertising
• Grading

Services of Wholesalers

1. To Retailers
2. To Manufacturers

To Retailers

• finance Assistance
• Collecting order and Distribution of Goods
• Large Purchase
• Transportation
• Risk Bearing
• Provide Market Information
• Marketing Function
• Storage

To Manufacturers

• Financial Support
• Market nformation
• Risk Bearing
• Stock of Goods
• Warehousing and [ ransport
• Regular Supply
• Sales Promotion

Retail Trade-

Meaning of Retail Trade:

According to Oxford Dictionary “Retail is sale of goods to the public in relatively small quantities for use or consumption rather than for resale”

According to William Stanton “Retail Trade includes all activities directly related to the sale of goods and services to the ultimate consumer for personal and non business use”

Features of Retailers-

• Link between the wholesaler and consumers.
• Operates in local markets.
• Deals in wide varieties of goods in small quality.
• Limited investment is required.
• Less risk and low amount of profit.

Services of Retailers:

1. Service to Wholesaler
2. Service to Consumers

Service to Wholesaler

• Create demand
• Helps to Distribute
• Marketing
• Financing
• Attracts Consumers
• Provides Information
• Connecting Link
• Increase Sales

Service to Consumers

• Variety of Goods
• After Sales Services
• Regular Supply of Goods
• Credit Facilities
• Home Delivery
• Information
• Local Convenience
• Improves Standard of Living
• Sale of Perishable Goods

Types of Retailers-

Itinerant Retailer – Retailers who do not have a fixed place or shop for their business.

• Hawkers: They move from one place to another carrying goods in hand cart.
• Peddlers:  They carry goods on their head in baskets or container.
• Street Traders: They do business on footpaths of busy street of cities and towns
• at crowded places like market places, bus stops, railway stations, etc.
• Cheap Jacks: They have independent shops with temporary setup, keep on changing places of their business.
• Market Traders : They open their shops on market days i.e. on different places on fixed days.

Retailers-
Fixed Shop Retailers
Small Scale Fixed Retailers

They Conduct their business operations on a small scale and deal in variety of goods)

• General Stores: They sell goods which are required by people for their day to day needs situated near residential areas of the city or town.
• Second hand Goods shop :They purchase and sell used goods at cheap rates, which are lack of quality, durability and guarantee.
• Authorized Dealer: They have authorized dealership of particular manufacturers of goods. They get good commission from manufacturers.
• Speciality shops: They deal in particular line of goods, offer goods at varying price range with wide range of choice, giving expert advice to the customer.

Retailers-
Fixed Shop Retailers
Large Scale Fixed Retailers

(They conduct their business operations on a large scale by investing huge capital, selling variety of quality goods and located at localities of the city)

Department Stores-

Meaning of Department Stores:
According to James Stephenson
“A big store engaged in the retail trade of variety of articles under the same roof”

According to G.B. Giles
“A departmental store is collection of shops under one roof and ownership, each shop or department specializing in selling a special range of goods’

Features of Department Stores-

1. Shopping Convenience
2. Centralized Management
3. Wide Variety of Goods
4. Specialization
5. Central Location
6. Huge Capital
7. No Create Facility

Super Market Shop –

“A large store selling a wide variety of consumer goods, particularly food and small articles
of household requirements.”

Features of Super Market Shop –

1. Location
2. Types of Goods
3. Self Service
4. Reasonable Prices
5. Capital
6. Cash Sales
7. Attractive Packing
8. Impulsive Buying

Chain Stores-

Definition of Chain Stores:
According to James Stephenson “A chain store shops consists of a number of similar shops owned by a single business firm”.

According to Clark and Clark
“Chain stores system consists of a number of retail store, which sell similar products are centrally owned and operated under one management”.

Features of Chain Stores-

• Low and Uniform Price
• Uniformity
• Limited Range of Goods
• Large Investment
• Distribution through Branches
• Cash Sales
• Quality of Goods
• Impulsive Buying

One Price Shop-

Meaning

• The shops where the prices of all the products or goods are same is known as one price shop.
• Selling a large variety of goods of daily use at low prices.

Features of One price Shop

• Uniform Price
• Low Price
• Variety of Goods
• Location
• Cash Sales
• Less Capital

Mall
Meaning —A mall is large enclosed shopping complex containing various stores, business and restaurants.
Features:

• Enables customer to buy different products from one unit to other units of mall.
• Entertainment venues such as movie theaters and restaurants.
• Variety of things available at one place.

International Trade-
Meaning — When the trade activities are conducted between two or more countries, it is called as ‘International Trade’.

International Trade (External Trade)-

1. Export Trade
2. Import Trade
3. Entrepot Trade

Export Trade-
Meaning — Export trade refers to sale of goods and services to foreign country.

Export Procedure-

1. Priliminary Stage
2. Preshipment Stage
3. Shipment Stage
4. Post Shipment Stage

Priliminary Stage:

• Registration
• Appointment of Agent

Preshipment Stage:

• Receipt of order
• Letter of credit
• Pre-shipment finance
• Production
• Packaging
• ECGC cover (Export Credit and Guarantee Corporation
• GST Formalities (Goods and Services tax)
• Marine Insurance
• C & F agents (Clearing and Forwarding)

Shipment Stage:

• Processing
• Examination of goods
• Loading of goods

Post Shipment Stage:

• Shipment advice
• Presentation of document
• Realization of incentives
• Follow up

Import Trade-
Meaning — Import trade refers to the purchase of goods and services from foreign country.

Import Procedure –

1. Priliminary Stage
2. Pre Import Stage
3. Import Stage
4. Post Import Stage

Priliminary Stage:

• Registration
• Negotiation

Pre Import Stage:

• Quota – Certificate
• Foreign Exchange
• Order placement
• Letter of Credit
• C & F Agent
• Shipment Advice

Import Stage:

• Receipt of Document
• Bill of entry
• Delivery of order
• Custom Clearance

Post Import Stage:

• Post trust due
• Custom duty
• Insurance premium
• Freight payment
• Exporter payment
• Follow-up

Entrepot Trade-
Meaning — The term entrepot is referred to as a seaport or warehouse where goods would be imported for storage or process before re- export.

Word Meaning:

vital – important; strategies – planning; entity – individual body; relatively – in comparison; promotion – to support; barter – exchange of goods and services without using money; preferences – likings; simplified
– easy; salesmanship – skill or ways to use sell something; establishes – builds; arrivals – new things; itinerant – travelling from one place to another; window display – in a shop product are display to attract the customer; sufficient – adequate / enough; channel – medium / method; after sales service – providing service after purchasing something; intermediaries – middleman; durable – long lasting; stability – fixed; commission – monetary benefits for service provided; assembling – to collect; urbanization – making an area to a city; grading – to arrange as per size and shape; recruitment – appointment; valuable – very useful; access – approach; fluctuations – rise and fall of something; variants – different; induced – influence / attracted; impulsive – unplanned / quick; appearance – the way that something looks like; discrepancies
– differences; irrespective – without consideration; overhead – above; bargaining – to discuss; door to door – way of marketing from one door to another door; reasonable – fair; globe – world; complex – a whole structure of building interconnected; tariff – tax / duty; prompt – quick; convenience – without any effort; lengthy – very long; exporter – a person / company that send goods or services to another country; importer – a person / company that buys goods or services from another country; transit – transport; incentive – benefit; indigenous – local; freight – goods transported by train / ship / truck; quota – quantity; overseas – foreign country; port – a place where ships are loaded and unloaded.

By going through these Maharashtra State Board Secretarial Practice 11th Commerce Notes Chapter 8 Company Meetings – II students can recall all the concepts quickly.

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

Types of Company Meeting-

1. Shareholders Meeting
2. Directors Meeting
3. Creditors Meeting

1. Shareholders Meeting:

• General Meeting
• Class Meeting

General Meeting:

• Annual General Meeting (U/S 96)
• Extraordinary General Meeting (U/S 100)

2. Directors Meeting:

• Board Meeting
• Committee Meeting

Annual General Meeting (u/s 96)-
(Equity shareholders meeting. Once in every financial year.)

Purpose :

• to adopt Annual Accounts / Directors Report / Auditor’s Report
• to declare dividend
• to elect Directors in place of retiring Directors
• to appoint auditors and fix their remuneration
• to review progress and performance of company

Legal provisions :
(1) Time of Holding General Meeting:

First Annual General Meeting: Time Period Within 9 months of closing of the first financial year
Subsequent Annual General Meeting: Time Period Within 6 months after completion of its financial year
The Interval between two AGM:  Time Period Should not be more than 15 months.
Extension of time for conducting AGM: Time Period Not more than 3 months

(2) Authority to convene Meeting — The Board of Directors
(3) Notice period — 21 clear days
(4) Date, time and place of AGM
(5) Quorum

1. Public Company
2. Private Company

1. Public Company-

2. Private Company: Minimum two members

(6) Adjournment of Meeting – to be held on the same day, time and place in the next week.
(7) Default:

• Punishable with fine.
• Fine may be upto ₹1,00,000 in the case of continuing default.
• It may extend upto ₹5000 per day.

Extra Ordinary General Meeting (U/S 100)-

• to transact Special Business
• Convened between two Annual General Meetings.

Purpose of Extra Ordinary General Meeting-

To take immediate decisions on –

• Alteration in Memorandum of Association
• Alteration of Articles of Association
• Removal of Director before expiry of his / her terms
• Removal of Auditor before expiry of his / her terms
• Voluntary winding up of company

Legal Provisions for Extra Ordinary General Meeting-

Authority to convene:

• Board of Directors
• Board of Directors on requisition of Members
• Requisitionist themselves
• National Company Law Tribunal (NCLT) or Government

Class Meeting: (U/S 48)-

• Meaning : Held to make changes in rights and duties of particular class of shareholders.
• Resolution : Special resolutions are passed.
• Purpose : To change rights of a particular class of shareholders and get consent for the change.
• Frequency : Not held regularly.

Directors Meeting (Section 173)-

1. Board Meeting
2. Committee Meeting

Board Meeting (Section 173)-
Legal provisions

(A) Authority to Convene: Chairman of the Board

(B) Number of Board Meeting:

• First Board Meeting
  → Within 30 days of the date of it’s incorporation.
• Subsequent Board Meeting
  → Minimum of 4 Board meetings year
• One Person Company
  → at least one meeting in each half of calendar year
  → gap between the two meetings should not be less than 90 days.

(C) Virtual Meeting: By audio visual means
(D) Notice (Section 173 (3): at least 7 days before Meeting
(E) Quorum – (Section 174): 1/3 of total number of directors or two directors whichever is higher
(F) Adjournment of meeting: Absence of quorum to be held on same day / time and place in the next week.

Committee Meeting-

• B.O.D. appoint small committee of Directors
• To study the various matters / problems of the company
• Audit committee, Transfer of share committee, share allotment committee,

Creditors Meeting-

• Company hold meeting of debenture holders, depositors, lenders, bankers, etc.
• to discuss the rate of interest or in financial crisis for creditor’s support.

Functions of Secretary Related With Annual General Meeting

(1) Functions before the AGM

• Fixing the Board Meeting
• Issue of Notice
• Speech of the Chairman
• Preliminary Arrangement
• Company Accounts

(2) Functions during the AGM (3)

• Attendance (i)
• Quorum (ii)
• Reading Reports (iii)
• Writing the Proceedings
• Helps Chairman (iv)
• Conduct Poll

3. Functions After the AGM

• Drafting the Minutes
• Implementing Decision
• Sending documents and filing resolutions
• Send information to absent members

Word Meaning:

dividend – a part of Company’s profit distributed to shareholders for their contributions; remuneration — salary; quorum — minimum numbers of Members required for the meeting; winding up — closure of company; requisitionist — a person who requests to call a meeting; resolution — a decision was taken at the meeting; consent — approval; frequently — regularly; dormant company — a company whose progress is slow; poll — election; secure — to fixed; assists — to help; audiovisual — using both sound and pictures together; penalty — fine; adjourned — to postpone/taking a break; calendar year — year which starts from January to December.

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 11 Financial Market students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 11 Financial Market

→ Every business has to raise short and long-term funds to meet the working and fixed capital needs of the business.

→ Financial Market is a place where borrowers and lenders are coming together.

→ Financial Market consists of –

(1) Money Market – Provide Short term loans
RBI controls over money market

(2) Capital Market – Provide Medium / Long term loans
SEBI controls over capital market

→ Financial Market is advancing loans to an individual, public and private institutions, state-local-central Government.

→ Money Market is dealing with –

1. Treasury Bills
2. Commercial Papers
3. Certificate of Deposits
4. Commercial Bills
5. Money Market Mutual Fund
6. Repo and Reverse Repo

→ Capital Market is dealing with –

1. Shares
2. Debentures
3. Bonds
4. Mutual Funds etc.

By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 1 Introduction of Commerce and Business students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 1 Introduction of Commerce and Business

Human Activities –

Non-Economic Activities

• Done without monetary reward.
• Done to satisfy personal social or religious requirements.
• Examples
  • Teacher teaching her son.
  • Serving people.
  • Cooking by mother, etc.

Economic Activities:

• Involves production, distribution and consumption of goods and services.
• Done for monetary reward
• Examples
  • Teacher teaching in a school.
  • Worker working in a factory.
  • Doctor working for a hospital.
• Further divided into 3
  1. Business
  2. Profession
  3. Employment

Definition of Business-

By Prof. L. H. Haney
“Business activities are all those human activities which are directed towards the prod uction and processing of wealth”

By Pride, Hughes and Kapoor “The organised efforts of individuals to produce and sell for a profit, the goods and services that satisfy society’s needs”

Characteristics / Features of Business-

1. Continuity in Dealings: Every business requires regularity in transactions.
2. Uncertain Returns: Returns are never predictable or guaranteed, it may earn profit or suffer a loss.
3. Risk Element: Exposure to loss due to some unfavorable or undesirable event. Intensity of risk can be minimized but can’t be avoided.
4. Satisfaction: Satisfying the customers by providing quality products and services at a reasonable price.
5. Two Parties: Minimum two parties are required for exchange i.e. the seller and the buyer.
6. Economic Activity : To earn money or livelihood.
7. Profit Motive :
8. Basic purpose of business is to earn the profit.
9. It is spine of business which keeps the business growth till long term.
10. Production of Goods and Services : Goods are either manufactured or procured from the supplier with aim of selling to consumers for profit.
11. Exchange of Goods and Services :
    1. Transfer of goods and services directly or indirectly with money or money’s worth.
    2. e.g. Buying clothes against cash.
12. Dealings in Goods and Services :

• Every business is involved either with Goods or Services.
• Goods-
  • Consumer Goods (Tea, Milk, Pencil, etc.)
  • Capital Goods (Machinery, Plant, Furniture, etc.)

Profession-
Part of economic activities under which a person uses his educational knowledge and special skill to
render services for earning some income.
e.g. Doctor, Lawyer, Chartered Accountant, Professor, etc.

Features of Profession-

(i) Qualification : Practiced after acquiring required qualifications.

(ii) Returns :

• Professional gets fees in exchange of service rendered.
• Can be employed in an organization or self employed.

(iii) Capital:

• Either can be practiced independently or professionals can work under someone.
• Independent practiced professional requires huge capital for setup.

(iv) Work Nature :
Professionals hold special knowledge and do skillful work like Doctors , Lawyers, etc.

(v) Aim:

• Practiced for earning money.
• Render service to their clients and solve their problems.

(vi) Registration and Membership : Professionals have to register them with their respective council and get certificate for practice.

(vii) Non-transferability : Profession cannot be transferred to other person on the will of professional.

Employment-

• It is an economic activity in which people work for others for remuneration.
• Term and conditions are agreed by both employer and employee.

Features of Employment-

(i) Qualifications:

Skilled Job

• Requires specific qualifications,
• E.g. Job of Accountant or Nurse

Unskilled

• Requires specific qualifications,
• E.g. Office boy or Clerk.

(ii) Monetary Returns :

Wages

• Decided in advance before appointment.
• Paid daily or weekly.

Salary

• Paid monthly
• Other benefits are also provided.

Capital: No capital is required for employment.

Nature of Work : The nature of job decide the nature of work.

Aim: To earn money for meeting needs of employer and employee.

Registration:

• No registration is required.
• Has to follow rules and regulation as mentioned in the terms and conditions of the employment- contract.

Non-transferability : Employment cannot be transferred from one person to another.

Business Objectives-

1. Economic Objectives
2. Social Objectives

Economic Objectives

• Searching New Customers
• Earning Profit
• Best Possible use of Resources
• Innovations

Social Objectives

• Contributing to the welfare of the society
• Avoiding unfair trade practices
• Supplying quality Products
• Help to solve social problems
• Employment generation
• Welfare of employees

Role of Profit in Business
Profit = Revenue – Total Cost

Role of Profit

1. Returns to investor
2. Research and Deve1opmen
3. Growth and Expansion
4. Increases efficiency
5. Means of livelihood.
6. Reputation .
7. Reward for risk
8. Survival

Classification of Business Activities-

1. Industry
2. Economic Activities-

Industry:

1. Primary Industry
2. Secondary Industry
3. Tertiary Industry

Primary Industry

• Industry
• Agriculture
• Extractive
• Genetic

Secondary Industry

• Manufacturing
• Construction

Tertiary Industry

• Transport
• Banking
• Hotel
• Tourism
• Entertainment

Economic Activities-

• Trade
• Auxiliaries to trade-

Trade

• Home Trade
• Foreign Trade

Home Trade

• Wholesale Trade
• Retail Trade

Foreign Trade

• Import
• Export
• Entrepot/ Re-export

Auxiliaries to trade-

• Transport
• Warehousing
• Insurance
• Banking
• Advertising
• Mercantile agents
• Communication

Word Meaning:

monetary – related to money; consumption – using; livelihood – to get basic needs of life; systematic – properly arranged; reward – returns; multiple – many; complex – difficult; manpower – human; cultivating – a process in farming; warehousing – place where goods are stored; spine – backbone; intangible – can’t be seen physically; continuity – regularly; predictable – expected; intensity – force; render – provide; acquiring – obtaining; code of conduct – set of rules; expert – person knowledgeable in a particular area; remuneration – salary; quarters – place to stay provided by company to his employees; subsidized – in low cost; bulk – in large quantity; survival – continuing to live; scarce – short in supply; unfair trade – wrong business practice; black marketing – illegal trade; misleading – false information; divyang – physically challenged; welfare – wellbeing; impartial – equal treatment; incentives – benefits in terms of money; retention – continuation; volume – size; diversification – process of enlarging the business; adverse – unfavorable; utility – useful; crude – raw material; tertiary – service; uninterrupted – continuation; auxiliaries – assistant; hindrances – problems; reasonable – low cost; rescue – save; desire – strong wish to have something; prominent – important; scattered – found in various location; information explosion – increased amount of information; broader – large; narrow – limited.

By going through these Maharashtra State Board Secretarial Practice 12th Commerce Notes Chapter 12 Stock Exchange students can recall all the concepts quickly.

Maharashtra State Board Class 12 Secretarial Practice Notes Chapter 12 Stock Exchange

→ Stock exchange is a place where securities are traded i.e. buying and selling takes place.

→ Stock Exchange in India is regulated by SEBI i.e. Securities Exchange Board of India.

→ The Securities Control (Regulation) Act 1956 provides rules for the functioning, licensing and controlling speculations of Stock Exchanges.

Stock Exchange in India:

1. Bombay Stock Exchange
2. National Stock Exchange

Bombay Stock Exchange (BSE)-

• – It is the oldest stock exchange in Asia which was established in 1875.
• – BSE was the first Stock Exchange in India.
• – The index of BSE is called Sensex or BSE 30.
• – In February 2001, BSE has launched BSEWebx.co.in an internet trading system.

National Stock Exchange of India (NSEI)-

• NSEI was incorporated in November 1992.
• First demutualized electronic exchange in India.
• The Index of NSE is called as the NIFTY launched in 1996.

Agents in Stock Exchange-

1. Boker
2. Speculator

Boker:

• Stag
• Lame Duck
• Wolves

Speculator:

• Bull
• Bear