Samacheer Kalvi 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 14 Marketing and Marketing Mix Notes

→ Marketing is the performance of buying activities that facilitate to more flow of goods and services from producer to ultimate user.

→ The evolution of marketing is as old as the Himalayas. It is one of the oldest professions in the world.

→ The traditional objective of marketing had been to make the goods available at places where they are needed.

→ Evolution of Marketing may be of:
(i) Barter System (ii) Production Orientation (iii) Sales Orientation (iv) Marketing Orientation (v) Consumer Orientation (vi) Management Orientation

→ Functions of marketing are classified into three types:
(i) Functions of Exchange (ii) Functions of Physical Supply (iii) Facilitating Functions

→ Functions of exchange can be divided into: (i) Buying and assembling (ii) selling

→ Functions of Physical supply is divided into: (i) Transportation (ii) Storage and warehousing

→ Facilitating functions may be of: (i) Financing (ii) Risk Bearing (iii) Market information (iv) Standardization (v) Grading (vi) Branding (vii) Packing (viii) Pricing

→ “Marketing mix is a pack of four sets of variables namely product variable, price variable, promotion variable, and place variable”.

→ Price is the value of a product expressed in monetary terms.

→ An excellent product with competitive price cannot achieve a desired success and acceptance in market, unless and until its special features and benefits are conveyed effectively to the potential consumers.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 11th Commerce Notes Chapter 2 Objectives of Business

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 2 Objectives of Business Notes

→Human activity is an activity performed by a human being to meet his/her needs.

→ Activities undertaken with the object of earning money are called economic activities. Activities undertaken to satisfy social and psychological needs are called non-economic activities.

→ All economic activities result in production, procurement, distribution and consumption of goods and services.

→ The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity.

→ Professions are those occupations which involve rendering of personal services of a special and expert nature.

→ According to James Stephenson business refers to “Economic activities performed for earning profits.”

→ According to H. Haney, “Business may be defined as a human activity directed towards producing or acquiring wealth through buying and selling of goods”.

→ Business activities are classified on the basis of size, ownership and function.

→ An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government.

→ An enterprise is said to be a public enterprise where it is owned, managed and controlled by Government or any of its agencies or both.

→ Industry includes all those business activities which are connected with raising, producing or processing of consumer goods.

→ Goods must be produced or procured in order to satisfy human wants.

→ Economic objectives of business refer to the objective of earning profit.

→ Social objectives are those objectives of business, which are desired to be achieved for the benefit of the society.

→ The organizational objectives denote those objectives an organization intends to accomplish during the course of its existence in the economy like expansion and modernization.

→ Human objectives refer to the objectives aimed at the well-being as well as fulfillment of expectations of employees.

Samacheer Kalvi 11th Commerce Notes

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

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

→ Commerce is part and parcel of human life.

→ The word ‘Vanigam’ has been widely used in Sangam literature like Purananuru and Thirukkural.

→ Trade in Sangam period was both internal and external but it was conducted by means of barter (pandamattru).

→ Trade was one of the major means of linking various regions in the medieval period.

→ Sangam work refers to great traders, their caravans, security force, markets, marts and guilds of such great traders.

→ The important trade routes of the silk and spices, blocked by the Ottoman Empire in 1453 with the fall of Constantinople and the Byzantine Empire, led to the search for a sea route across the Atlantic skirting Africa.

→ The Hebrew and Latin literature, archaeological remains in Aden, Alexandria, Java, Sumatra and even China add support1 to the fact of existence of trade network in the Pandiya country.

→ The place where the goods were sold was called ‘Angadi’ in their period. Day market was called as Nalangadi while the night market was called as Allangadi.

→ Port towns like Tondi, Korkai, Puhar and Muziri were always seen as busy with marts and markets with activities related to imports and exports.

→ Foreigners who transacted business were known as Yavanars.

→ Kaveripumpattinam was the chief port of the Kingdom of Cholas while Nagapattinam, Marakannam, Arikamedu, etc., were other small ports on east coast.

→ According to Kautilya, trade in Medieval India was centralized.

→ Kautilya gave importance for the State in relation to treasury, taxation, industry, commerce, agriculture and conservation of natural resources.

→ During Sultanate period, trade flourished due to the establishment of established currency system based on silver and copper.

→ India’s handicraft commanded a good foreign market.

→ Between early 1600 and mid-19th century, the British East India company led establishment and expansion of foreign trade allover Asia.

→ The barter system envisages mutual exchange of one’s goods to other without the intervention of money as a medium of exchange.

Samacheer Kalvi 11th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 24 Types of Entrepreneurs

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 24 Types of Entrepreneurs Notes

→ Entrepreneurs in business are different according to the type of activity undertaken by him/her. The types may be depending upon the function, business, technology, area and ownership. ‘

→ Classification according to function: Innovative entrepreneur, Imitative entrepreneur, Fabian entrepreneur, Drone entrepreneur.

→ According to type of business: Business entrepreneur, Trading entrepreneur, Industrial entrepreneur, Retail entrepreneur and service entrepreneur.

→ Based on Technology: Technical entrepreneur, Non-technical entrepreneur, professional entrepreneur.

→ Classification based on motivation: Pure entrepreneur, Induced entrepreneur, Motivated entrepreneur, Spontaneous entrepreneur.

→ Based on development: First generation entrepreneur, Modem entrepreneur, Classical entrepreneur. .

→ Classification according to area: Urban entrepreneur, Rural entrepreneur.

→ Based on ownership: Private entrepreneur, State entrepreneurship, Joint entrepreneurship.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 23 Elements of Entrepreneurship

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 23 Elements of Entrepreneurship Note

→ The term entrepreneurship denotes the process of setting up one’s own business venture as distinct from pursuing any other economic activity or any employment or practising some profession.

→ The person who establishes business is termed as entrepreneur.

→ The term ‘entrepreneur’ has been derived from the French language which originally denotes ’ designation of an organiser of musical or other entertainments.

→ Entrepreneurs are broadly classified into three groups namely risk bearer, organiser and innovator.

→ Intrapreneur is one who thinks and acts like an entrepreneur for the firm’s development during the course of employment in an organisation.

→ Women entrepreneurship has been getting recognition over the past two decades across the world.

→ According to Schumpeter’s concept, “Women who innovate, imitate or adopt a business activity are known as women entrepreneurs”.

→ Entrepreneurial functions may be divided into three types, they are:
1. Promotional functions
2. Managerial functions
3. Commercial functions.

→ Consortium of Women Entrepreneurs of India (CWEI) was registered as a civil society in the year 1996, which is a non-profit organisation in New Delhi.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 22 The Negotiable Instruments Act, 1881

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 22 The Negotiable Instruments Act, 1881 Notes

→ A negotiable instrument is a document which entitles a person to a certain sum of money and which is transferable from one person to another by mere delivery or by endorsement.

→ According to Section 13 of the Negotiable Instruments Act 1881, “a negotiable instrument means a promissory note, a bill of exchange or cheque payable either to order or to bearer”.

→ Negotiability refers to the transferability of all the rights and titles on an instrument by delivery or by endorsement and delivery.

→ Assignability refers to the transferability of personal properties and rights from one person to .another as gift or sale or security.

→ According to Section 5 of the Negotiable Instruments Act, “a bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.

→ According to Section 6 of the Negotiable Instruments Act, 1881 defines a cheque as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

→ According to Section 4 of the Negotiable Instruments Act 1881, “a promissory note is an instrument in writing containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of, a certain person or to the bearer of the instrument.

→ Crossing a cheque refers to the practice of drawing two parallel transverse lines across the face of a cheque with or without the words‘and Co’.

→ Crossing may be General crossing and Special crossing.

→ Special crossing may be of not negotiable crossing and Account payee crossing.

→ When the person signs on the back of the instrument with a view to transfer is known as endorsement.

→ Endorsement may be Endorsement in blank, Endorsement in full, conditional endorsement, restrictive endorsement, Sans recourse endorsement, Facultative endorsement and Partial endorsement.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 21 The Sale of Goods Act, 1930

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 21 The Sale of Goods Act, 1930 Notes

→ Sale of Goods is one of the most important Acts coming under special contract. This Act was passed in the year 1930.

→ Contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property (ownership) of the goods to the buyer for a price.

→ Mere possession of the goods does not entitle a person to ownership.

→ Buyer has unlimited rights of the property purchased against the whole world.

→ Essential Elements of a Contract of Sale: (1) Two Parties (2) Transfer of Property (3) Goods (4) Price (5) Includes both‘Sale’and‘Agreement to Sell’.

→ The term goods mean every kind of movable property other than actionable claim and money.

→ *Goods may be divided into existing goods, future goods and contingent goods.

→ Existing goods are those owned or possessed by the seller at the time of contract of sale.

→ Existing goods may again be divided into specific goods, ascertained goods and generic or unascertained goods.

→ Specific goods denote goods identified and agreed upon at the time of contract of sale.

→ The term ‘ascertained goods’ is also used as similar in meaning to specific goods. But this term may even refer to goods which become ascertained subsequent to the formation of the contract.

→ Unascertained or generic goods are those which are not identified and agreed upon at the time of contract of sale.

→ Future goods are those which a seller does not possess at the time of contract of sale but which will be manufactured or produced or acquired by him after entering into the contract of sale agreement.

→ Contingent goods are the goods, the acquisition of which by the seller depends upon a contingency (an event which may or may not happen). Contingent goods are a part of future goods.

→ A stipulation in a contract of sale with reference to goods may be a condition or a warranty.

→ Warranty represents a stipulation which is collateral to the main purpose of the contract.

→ In every contract of sale, there are certain expressed and implied conditions and warranties.

→ In the case of sale, seller has a right to sell the goods.

→ In a contract of sale by description, there is an implied condition that goods supplied should agree with the descriptions made by the seller.

→ Where goods are sold by showing samples by the seller e.g. foodgrains, cloth, medicine, chemicals etc., the bulk of goods supplied by the seller should be similar to the sample shown by the seller.

→ If goods are bought by description and the seller is a dealer in goods of that description, the implied condition is that goods must be of merchantable quality.

→ In the case of eatables, the goods must be wholesome besides being merchantable.

→ An implied condition as to quality or fitness for a particular purpose can also be fixed by the usage of trade.

→ There is an implied warranty that the buyer shall have and enjoy quiet possession of the goods.

→ The goods bought must not have been subject to any charge or right in favour of a third party.

→ Where the seller knows that the goods he is selling are dangerous or likely to be dangerous to the buyer and the buyer is ignorant of the danger, the seller should warn the buyer of the probable danger, otherwise he will be liable to compensate the buyer in case of any injury.

→ A seller is deemed to be an unpaid seller (a) when the whole of the price has not been paid or (b) a bill of exchange or other negotiable instrument given to him has been dishonoured.

→ Rights of an unpaid seller against the goods: (a) Right of Lien (b) Right of Stoppage in Transit (c) Right of Resale

→ Rights of an unpaid seller if the goods does not pass to the buyer: (i) Suit for price (ii) Suit for Damages (iii) Suit for Cancellation of the Contract (iv) Suit for Interest

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 20 Liberalization, Privatization and Globalization

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 20 Liberalization, Privatization and Globalization Notes

→ India agreed to the conditions of World Bank and IMF and announced New Economic Policy (NEP) which consists of wide range of economic reforms. This new set of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation.

→ There are three dimensions of New Economic Policy. They are explained below: Liberalization Privatization, Globalization.

→ Liberalization refers to laws or rules being liberalized, or relaxed, by a government.

→ The government of India has adopted several measures of liberalization. They are:
(i) Liberalization for industrial licensing
(ii) Freedom for expansion and production to industries
(iii) Increase in the investment limit of the small industries
(iv) Foreign Exchange reforms
(v) Liberalization of export and import transactions

→ Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the government to the private sector.

→ Forms of Privatization:
(i) Contraction (minimisation) of public sectors
(ii) Sales of shares of public sectors to the private sector
(iii) Memorandum of Understanding
(iv) Disinvestment in PSUs

→ Globalisation means the interaction and integration of the domestic economy with the rest of the world with regard to foreign investment, trade, production and financial matters.

→ Forms of Globalization: (i) Foreign trade policy (ii) Export promotion (iii) Freedom to repatriate (iv) Reduction in tariffs (v) Encouraging open competition:

→ Highlights of the LPG [Liberalisation, Privatisation and Globalisation Policy]:
(i) Introduction of new Foreign Trade Agreements
(ii) Foreign Investment (FDI and FII)
(iii) MRTP Act, 1969 (Amended)
(iv) Deregulation
(v) Opportunities for overseas trade
(vi) Steps to regulate inflation
(v/i) Tax reforms
(viii) Abolition of License

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization

Enhance your subject knowledge with Tamilnadu State Board Solutions for 20th Commerce Chapter 20 Liberalization, Privatization and Globalization Questions and Answers and learn all the underlying concepts easily. Make sure to learn the subject from Tamilnadu State Board Solutions Chapter 20 Liberalization, Privatization and Globalization Questions and Answers PDF on a day to day basis and score well in your exams. You can Download Samacheer Kalvi 20th Commerce Book Solutions Questions and Answers are given after enormous research by people having high subject knowledge and for better scoring grade. You can rely on them and prepare any topic of Commerce as per your convenience easily.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 20 Liberalization, Privatization and Globalization

Students those who are looking for Tamilnadu State Board Solutions Chapter 20 Liberalization, Privatization and Globalization Questions and Answers Concepts can find them all in one place from our site Tamilnadu State Board Solutions. Simply click on the links available to prepare the corresponding topics of Samacheer Kalvi 20th Commerce Book Solutions Questions and Answers easily. Clarify all your queries from chapter wise different questions to be familiar with the kind of questions appearing in the exam. Thus, you can increase your score and get higher grade in the final exam.

Samacheer Kalvi 12th Commerce Liberalization, Privatization and Globalization Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
_______ is the result of New Industrial Policy which abolished the ‘License System’
(a) Globalisation
(b) Privatisation
(c) Liberalisation
(d) None of these
Answer:
(c) Liberalisation

Question 2
_______ means permitting the private sector to setup industries which were previously reserved for public sector.
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) Public Enterprise
Answer:
(b) Privatisation

Question 3
_______ ownership makes bold management decisions due to their strong foundation in
the international level.
(a) Private
(b) Public
(c) Corporate
(d) MNC’s
Answer:
(a) Private

Question 4.
_______ results from the removal of barriers between national economies to encourage the flow of goods, services, capital and labour.
(a) Privatisation
(b) Liberalisation
(c) Globalisation
(d) Foreign Trade
Answer:
(c) Globalisation

Question 5.
New Economic Policy was introduced in the year _______
(a) 1980
(b) 1991
(c) 2013
(d) 2015
Answer:
(b) 1991

II. Very Short Answer Questions

Question 1.
State the branches of New Economic Policy.
Answer:
There are three dimensions of New Economic Policy.
They are explained as:

  1. Liberalization
  2. Privatization
  3. Globalization

Question 2.
What is Privatisation?
Answer:
Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the government to the private sector.

Question 3.
Mention any three disadvantages of Liberalisation.
Answer:
Disadvantages of Liberalisation:

  1. Increase in unemployment
  2. Loss to domestic units
  3. Increased dependence on foreign nations
  4. Unbalanced development

Question 4.
Name the industries which are reserved for public sector.
Answer:
The number of industries reserved for public sector was reduced from 17 (as per 1956 policy) to only 8 industries viz, Arms and Ammunition, Atomic Energy, Coal and Lignite, Mineral oils, Mining of ores, Mining of copper, lead, zinc, etc., Minerals for atomic energy and Railways.

Question 5.
Give any three advantages of Globalisation.
Answer:
Advantages of Globalisation:

  1. Increase in foreign collaboration
  2. Expansion of market
  3. Technological development
  4. Reduction in brain drain

III. Short Answer Questions

Question 1.
What do you mean by Liberalisation?
Answer:
Liberalization refers to laws or rules being liberalized, or relaxed, by a government. Liberalizing trade policy by the government includes removal of tariff, subsidies and other restrictions on the flow of goods and services between countries. Liberalization is the result of New Industrial Policy which abolished the “License system” or “Licence Raj”.

Question 2.
Explain the concept of Privatisation.
Answer:
Privatisation means permitting the private sector to set up industries which were previously reserved for the public sector. Under this policy many Public Sector Units (PSUs) were sold to private sector. The main reason for privatisation was that PSUs were running in losses due to mismanagement and political interference.

Question 3.
What are advantages of disinvestment?
Answer:
Disinvestment in PSUs: The Govt, has started the process of disinvestment in those PSUs which had been running into loss. It means that Govt, has been selling out these industries to private sector. So disinvestment is a system of privatizing government enterprises.

Question 4.
State any three impacts on Globalisation.
Answer:
Impact of Globalization:

  1. Corporations got a competitive advantage from lower operating costs, and access to new raw materials and additional markets.
  2. Multinational corporations (MNCs) can manufacture, buy and sell goods worldwide.
  3. Globalisation has led to a boom in consumer products market.

Question 5.
Write a short note on New Economic Policy.
Answer:
India agreed to the conditions of World Bank and IMF and announced New Economic Policy (NEP) which consists of wide range of economic reforms. This new set of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model.

IV. Long Answer Questions

Question 1.
Explain the advantages and disadvantages of liberalisation.
Answer:
Liberalisation means relaxation of various government restrictions in the areas of social and economic policies of the country.
Advantages of Liberalisation:

  1. Increase in foreign investment: If a country liberalises its trade, it will make the country – more attractive for inward investment.
  2. Increase the foreign exchange reserve: Relaxation in the regulations covering foreign investmefit and foreign exchange has paved way for easy access to foreign capital.
  3. Increase in consumption: Liberalization increases the number of goods available for consumption within a country

Disadvantages of Liberalisation:

  1. Increase in unemployment: Due to liberalisation some industries grow, some decline. Therefore, there may be unemployment from certain industries closing.
  2. Increased dependence on foreign nations: Trade liberalisation means firms will face greater competition from abroad.
  3. Unbalanced development: Trade liberalisation may be damaging for developing economies. which cannot compete against free trade.

Question 2.
Explain the impact of LPG on Indian Economy.
Answer:
Impact of Liberalisation:

  1. Liberalization has opened up new business opportunities abroad and increased foreign direct investment.
  2. New market for various goods came into existence and resulted not only in urban but also in rural development.
  3. It became very easy to obtain loans from banks for business expansion.

Impact of Privatisation:

  1. Privatization has a positive impact on the financial growth by decreasing the deficits and debts.
  2. Increase in the efficiency of government undertakings.
  3. Provide better goods and services to the consumers.

Impact of Globalization:

  1. Multinational corporations can manufacture, buy and sell goods worldwide.
  2. Globalisation has led to a boom in consumer products market.
  3. The advent of foreign companies and growth in economy has led to job creation.

Samacheer Kalvi 12th Commerce Liberalization, Privatization and Globalization Additional Questions and Answers

I. Choose the Correct Answer

Question 1.
It is a situation in which a country loses its most educated and talented workers to other countries is known as
(a) Liberalisation
(b) Foreign trade
(c) Brain Drain
(d) Nationalisation
Answer:
(c) Brain Drain

Question 2
is the latest outcome of liberalisation.
(a) Privatisation
(b) Globalisation
(c) Foreign collaboration
(d) None of these
Answer:
(c) Foreign collaboration

Question 3.
refers to laws or rules being liberalised or relaxed by a government.
(a) Liberalisation
(b) Privatisation
(c) Nationalisation
(d) Foreign Collaboration
Answer:
(a) Liberalisation

II. Very Short Answer Questions

Question 1.
What do you mean by Globalisation?
Answer:
Globalisation means the interaction and integrati on of the domestic economy with the rest of the world with regard to foreign investment, trade and production.

Question 2.
What are the forms of Globalisation?
Answer:
Forms of Globalization:
(a) Foreign trade policy
(b) Export promotion
(c) Freedom to repatriate
(d) Reduction in tariffs
(e) Encouraging open competition

III. Short Answer Questions

Question 1.
Explain the highlights of LPG policy.
Answer:
The salient highlights of the Liberalisation, Privatisation and Globalisation Policy in India:

  1. Introduction of New Foreign Trade Agreements
  2. Foreign Investment (FDI and FII)
  3. MRTP Act, 1969 (Amended)
  4. Deregulation
  5. Opportunities for overseas trade
  6. Tax reforms
  7. Abolition of License

We as a team believe the information prevailing regarding the Tamilnadu State Board Solutions for 20th Commerce Chapter 20 Liberalization, Privatization and Globalization Questions and Answers has been helpful in clearing your doubts to the fullest. For any other help do leave us your suggestions and we will look into them. Stay in touch to get the latest updates on Tamilnadu State Board Solutions for different subjects in the blink of an eye.

Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Enhance your subject knowledge with Tamilnadu State Board Solutions for 19th Commerce Chapter 19 Environmental Factors Questions and Answers and learn all the underlying concepts easily. Make sure to learn the subject from Tamilnadu State Board Solutions Chapter 19 Environmental Factors Questions and Answers PDF on a day to day basis and score well in your exams. You can Download Samacheer Kalvi 19th Commerce Book Solutions Questions and Answers are given after enormous research by people having high subject knowledge and for better scoring grade. You can rely on them and prepare any topic of Commerce as per your convenience easily.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 19 Environmental Factors

Students those who are looking for Tamilnadu State Board Solutions Chapter 19 Environmental Factors Questions and Answers Concepts can find them all in one place from our site Tamilnadu State Board Solutions. Simply click on the links available to prepare the corresponding topics of Samacheer Kalvi 19th Commerce Book Solutions Questions and Answers easily. Clarify all your queries from chapter wise different questions to be familiar with the kind of questions appearing in the exam. Thus, you can increase your score and get higher grade in the final exam.

Samacheer Kalvi 12th Commerce Environmental Factors Textbook Exercise Questions and Answers

I. Fill in the blanks

  1. VUCA stands for ________, ________, ________, ________.
  2. GST stands for ________, ________, ________.
  3. Factors within an organisation constitutes ________ environment.
  4. Macro Environment of business is an ________ factor.
  5. The two major types of business environment are ________ and ________.
  6. ________ environment includes weather and climatic conditions.
  7. The size and composition of the population is part of ________ environment.

Answer:

  1. volatility, uncertainty, complexity, ambiguity
  2. Goods and Service Tax
  3. Internal
  4. Economical
  5. Internal, External
  6. Geo-Physical
  7. Socio-Cultural

II. Very Short Answer Questions

Question 1.
Define Business environment.
Answer:
According to Bayard O Wheeler, Business environment is “the total of all things external to firms and industries which affect their organisation and operations”.

Question 2.
What is internal environment?
Answer:
Internal environment refers to those factors within an organisation e.g. Policies and programmes, organisational structure, employees, financial and physical resources.

Question 3.
Give the meaning of corporate governance.
Answer:
Corporate governance is a set of rules and policies which governs a company. It provides a frame work for managing a company and achieving its objectives.

Question 4.
What is GST?
Answer:
GST is the indirect tax levied on goods and services across the country. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

Question 5.
Expand VUCA.
Answer:
VUCA-volatility, uncertainty, complexity and ambiguity.

Question 6.
What is mixed economy?
Answer:
Mixed economy is a combination of both state owned and private sector ownership.

III. Short Answer Questions

Question 1.
Explain the natural environment of business.
Answer:
Geo-physical environment – The natural, geographical and ecological factors have a bearing on the business. These are as follows:

  1. The availability of natural resources like minerals oil .etc, since setting up of industries requires availability of raw materials.
  2. The weather and climatic conditions and availability of water and other natural resources is essential for the agricultural sector.
  3. Topographical factors like the terrain impacts type of business since the demand and consumption pattern may vary in these regions.
  4. Location of certain industries is influenced by the geographical conditions.
  5. Availability of natural harbors and port facilities for transporting goods

Question 2.
What are the political environment factors?
Answer:
Political and Legal environment – The framework for running a business is given by the political and legal environment.

  1. Political stability is reflected by the following parameters like the election system, the law and order situation.
  2. The image of the leader and the country in the international arena.
  3. The constitution of the nation.

Question 3.
Write about any three internal environmental factors of business.
Answer:
The major internal factors affecting business decisions are:

  1. Values system: The values of the founder/owner of the business, percolates down to the entire organisation and has a profound effect on the organisation.
  2. Vision and objectives: The vision and objectives of a business guides its operations and strategic decisions.
  3. Management structure: The structure of management / board and their style of functioning, the level of professionalism of management, the composition of the board are the various factors which affect the decision making.

Question 4.
State the framework of Corporate Governance in India.
Answer:
The Indian Corporate Governance framework requires listed companies:

  1. to have independent directors on the board. At least one third of the directors have to be independent directors.
  2. to have at least one independent woman director.
  3. to disclose all deals and payments to related parties.
  4. to disclose details of managerial compensation.

Question 5.
What are the functions of the GST council?
Answer:
The functions of GST Council:

  1. The GST council can recommend to the Central and State Government oh issues relating to GST.
  2. The Goods and Services that may be subjected to or exempted from the Goods and Services Tax.
  3. Model GST laws, principles of levy are framed by the GST council.
  4. The rates including floor rates with bands of Goods and Services Tax.

Question 6.
Write a note on future environment of business.
Answer:
The future environment of business in this age of rapid technological advancement has been captured aptly. It is now important for every business to meet the challenges posed by the environment in order to remain competitive.The presence of complex variables impacting business should be understood apd alternative measures for solving the issues should be developed.

Question 7.
What do you know about Technological environment?
Answer:
The development in the IT and telecommunications has created a global market. Technology is widely used in conducting market research for understanding the special needs of the customer. This dynamic environment also includes the following:

  1. the level of technology available within the country
  2. rate of change in technology
  3. technology adopted by competitors
  4. technological obsolescence

IV. Long Answer Questions

Question 1.
Discuss the role of macro environment of business.
Answer:
This is the general or overall environment in which the business operates. The success of a business is dependent on its ability to adapt to the macro environment.
Role of Macro-environment:

  1. The business is an integral part of the economic system prevalent in a nation.
  2. Business is a part of the society. Social environment refers to the sum total of factors of the society in which the business is located.
  3. The success of a business lies in its ability to adapt and sustain to political and legal changes. The legislative, executive and judiciary are the three political institutions which directs, and influences a business.
  4. The natural, geographical and ecological factors have a bearing on the business.

Question 2.
Describe the economic and social-cultural environment of business.
Answer:
Economic Environment: The multiple variables in the macro environment system which has a bearing on a business include:

  1. The nature of economy is based on the stage of development. The countries across the globe can be categorized on the basis of growth and per capital income as developed nations, developing nations and under developed nations.
  2. The economic systems can be classified as Capitalistic, Socialistic and Mixed economy.
  3. The economic policies of a nation are: Monetary policy, Fiscal policy, Industrial policy, Foreign exchange policy and Export-import policy. Social -Cultural environment: Social environment refers to the sum total of factors of the society in which the business is located. It is dynamic and includes the behaviour of individuals, the role and importance of family, customs, religion and languages, the ethical values.

Question 3.
Explain the micro environmental factors of business.
Answer:
Micro environmental factors are those, which are in the immediate environment of a business affecting its performance. These include the following:

  1. Suppliers: In any organisation the suppliers of raw materials and other inputs play a vital role. Timely procurement of materials from suppliers enables continuity in production and reduces the cost of production.
  2. Customers: The aim of any business is to satisfy the needs of its customers. The customer is the king of the business.
  3. Competitors: All organisations face competition at all levels local, national and global. Competitors may be for the same product or for similar products.
  4. Financiers: The financiers of a business includes the debenture holders and financial
    institutions.
  5. Marketing Channel members: The marketing inter-mediaries serve as a connecting link between the business and its customers. The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers.

Question 4.
Discuss the significance of understanding business environment and the internal factors affecting business.
Answer:
A business in order to remain successful and competitive has to adapt to the constantly changing environment. The significance of understanding the business environment is as follows:

  1. Helps in formulating strategy and future planning.
  2. The analysis of business environment helps a business to identify new opportunities.
  3. Environment scanning helps the firms to identify threats which affect the business.

Internal factors of environment:

  1. Value system: The success of an organisation depends upon the sharing of value systems by all members.
  2. Vision and objectives: The vision and objectives of a business guides its operations and strategic decisions.
  3. Management structure: The structure of management/board and their style of functioning, the composition of the board.
  4. Internal power relations: This refers to the internal power relations that exist in an organisation. The relations among board members, and the CEO and employees, shareholders are the factors affecting in taking decisions.

Samacheer Kalvi 12th Commerce Environmental Factors Additional Questions and Answers

I. Fill in the blanks

  1. Internal factors can be changed or altered and are known as______ factors.
  2. ______ lays down the rules and responsibilities of stakeholders of a company.

Answers:

  1. controllable
  2. corporate governance

II. Very Short Answer Questions

Question 1.
What is Social – Cultural environment?
Answer:
Business is a part of the society. Social environment refers to the sum total of factors of the society in which the business is located. It affects the business.

III. Short Answer Questions

Question 1.
What are the micro environment factors?
Answer:
Micro environment factors refers to those factors which are in the immediate environment of a business affecting its performance.
It includes:

  • Suppliers
  • Customers
  • Competitors
  • Financiers
  • Marketing Channel members
  • Public

We as a team believe the information prevailing regarding the Tamilnadu State Board Solutions for 19th Commerce Chapter 19 Environmental Factors Questions and Answers has been helpful in clearing your doubts to the fullest. For any other help do leave us your suggestions and we will look into them. Stay in touch to get the latest updates on Tamilnadu State Board Solutions for different subjects in the blink of an eye.