Laxmi

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 3 Management By Objectives (MBO) and Management By Exception (MBE) Notes

→ Management By Objectives (MBO) is a management system in which each member of the organisation effectively participates and involves himself.

→ It creates self-control and motivates the manager into action before somebody tells him to do something.

→ Prof. Reddin defines MBO as, “the establishment of effective standards for managerial positions and the periodic conversion of those into measurable time bound objectives linked vertically and horizontally and with future planning”.

→’ An attempt is made by the management to integrate the goals of an organisation and individuals. This will lead to effective management.

→ MBO tries to combine the long run goals of organisation with short run goals.

→ The MBO process is characterised by the balance of objectives of the organisation and individual.

→ The definition of organisational objectives states why the business is started and exists.

→ Objectives for each section, department or division are framed on the basis of overall objectives of the organisation.

→ Key result areas are fixed on the basis of organisational objectives premises.

→ The objectives of each subordinate or individual are fixed.

→ Subordinates are induced to set standards themselves by giving an opportunity.

→ The objectives are framed on the basis of availability of resources.

→ The available resources should be properly allocated and utilized.

→ The superior and subordinates should hold meetings periodically in which they discuss the progress in the accomplishment of objectives.

→ The discussion is related with subordinates’ performance against the specified standards. The superior should take corrective action.

→ The problems faced by the subordinates should be identified and steps should be taken to tackle such problems.

→ Management By Exception (MBE) is a style of business management that focuses on identifying and handling cases that deviate from the norm.

→ General business exceptions are cases that deviate the normal behavior in a business process and need to be cared for in a unique manner, typically by human intervention.

→ With an insignificant or no deviation, no action is required and senior managers can concentrate on other matters. If actual performances deviates significantly, the issue needs to be passed to the senior managers, as an “exception has occurred”.

→ The top management executive should review the organisation’s objectives to frame the objectives according to the changing situation.

→ MBO emphasises only on short-term objectives and does not consider the long term objectives.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 15 Recent Trends in Marketing Notes

→ Today’s customers are global and exhibit international characteristics. Because of developments of information technology, rapid means of transportation, liberalization, and mobility of people across the world, their buying habits are fast varying and so are the fortunes of various organisations.

→ All activities, which directly or indirectly facilitate that exchange of goods done through internet and other online environments is known as Electronic Commerce (EC) or simply as E-Commerce.

→ If all the business transactions are carried out through internet and other online tools, it is called E-business.

→ Electronic Marketing or E-Marketing is the process of marketing of products and services over internet and telecommunications networks.

→ E-tailing or electronic retailing refers to selling of goods and services through a shopping website (internet) or through virtual store to the ultimate consumer.

→ Green marketing is also known as environmental marketing which involves developing and promoting products and services which satisfy customers wants and needs for quality and performance.

→ Social marketing is the systematic application of marketing philosophy and techniques to achieve specific behavioural goals which ensure social good.

→ Rural marketing is a process of developing pricing, promoting and distributing rural specific goods and services with rural customers to satisfy their needs and wants.

→ Service marketing denotes the processing of selling service goods like telecommunication, banking, insurance, tourism, repairs etc.

→ Niche marketing is found by company, by identifying the need of customers which are not served or under served by the competitors.

→ Viral marketing is marketing technique that impels the users to pass on a marketing message to other users.

→ Guerrilla marketing represents an advertisement strategy to promote products/services on streets or other public places with monkey-like shopping malls, parks, beach, etc.

→ Referral marketing is the method of promoting products or services to new customers through referrals.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 13 Concept of Market and Marketer Notes

→ The word market is derived from the Latin word ‘Marcatus ’ which means trade, commerce, merchandise, a place where business is transacted.

→ The meeting place of buyers and sellers in an area is called Market.

→ According to Pyle “Market includes both place and region in which buyers and sellers are in free competition with one another.”

(i) On the basis of Area:
(a) Family Market
(b) Local Market
(c) National Market
(d) International Market or World Market

(ii) On the Basis of Goods:
(a) Commodity Market:
(i) Produce Exchange Market
(ii) Manufactured Goods Market
(iii) Bullion Market

(b) Capital Market:

(i) Money Market
(ii) Foreign Exchange Market
(iii) The Stock Market

(iii) On the Basis of Economics:
(a) Perfect Market
(b) Imperfect Market

(iv) On the Basis of Transaction:
(a) Spot Market
(b) Future Market

(v) On the Basis of Regulation:
(a) Regulated Market
(b) Unregulated Market

(vi) On the Basis of Time:
(a) Very Short Period’Market
(b) Short Period Market
(c) Long Period Market

(vii) On the Basis of Volume of Business:
(a) Wholesale Market
(b) Retail Market

(viii) On the Basis of Importance:
(a) Primary Market
(b) Secondary Market
(c) Terminal Market

→ The marketer plays four roles: (i) Instigator (ii) Innovator (iii) Integrator (iv) Implementer

Samacheer Kalvi 12th Commerce Notes

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

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

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

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

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

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

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