Laxmi

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 8 Multi-National Corporations (MNCs) Notes

→ A multinational company is one which is incorporated in one country (called the home country).

→ A multinational corporation is known by various names such as: global enterprise, international enterprise, world enterprise, transnational corporation etc.

→ “A multinational corporation owns and manages business in two or more countries.” – Neil H. Jacoby

→ “MNC is defined to be an enterprise operating in several countries but managed from one country.”

→ Global enterprises are the business organisations which operate in more than one country.

→ MNC set up their facilities in low cost countries and produce goods/service at lower cost.

→ In India, many Indian companies acquired ISO-9000 quality certificates, due to fear of competition posed by MNCs.

→ Initially MNCs help the Government of the host country, in a number of ways; and then gradually start interfering in the political affairs of the host country.

→ Multinational companies establish themselves in developing countries to enjoy huge profits by selling consumer goods or luxury items.

→ Public enterprises are established to achieve the goal of economic and social development of the country.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 7 Cooperative Organisation Notes

→ A cooperative is a private business organization that is owned and controlled by the people who use its products, supplies or services.

→ The cooperative movement was started by Robert Owen, in the year 1844.

→ Co-operation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves. -H. Calvert

→ Co-operation is “better farming, better business and better living”. – Sir Horace Plunkett

→ Cooperatives are autonomous, self-help organisations controlled by their members.

→ Cooperatives serve their members most effectively and strengthen the cooperative movement , by working together through local, national, regional and international structures.

→ Cooperative society foundation is laid down on mutual confidence.

→ A co-operative society is run on the principle of‘one man one vote’.

→ Co-operative societies have limited membership and are promoted by the weaker sections.

→ Co-operative societies give loans only for productive purposes and not for personal or family expenses.

→ Maintenance of business secrets is the key for the competitiveness of any business organization.

→ Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase.

→ Producer cooperatives are created by producers and owned & operated by producers.

→ Cooperative marketing societies are associations of small producers formed for the purpose of marketing their produce.

→ Cooperative credit societies are societies formed for providing short-term financial help to their members.

→ Housing cooperative societies are meant to provide residential accommodation to their members on ownership basis or on rent.

→ In a cooperative farming society, the office bearers look after the proper cultivation of new farm that emerges after the land of various farmers have been pooled.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 6 Joint Stock Company Notes

→ A joint stock company as a distinct type of business organisation evolved to overcome the limitations of sole trader and partnership concerns.

→ The Companies Act 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, liquidation of a company, etc.

→ “A company is an association of many persons who contribute money or money’s worth to a common stock and employ it in some trade or business, and who share the profit and loss (as the case may be) arising there from.” – James Stephenson

→ “A company is an artificial person created by-law having a separate entity with a perpetual succession and a common seal.” – L.H. Haney

→ A company as an entity has many distinct features which together make it a unique organization.

→ Chartered companies are established by the King or Queen of a country.

→ Statutory companies are established by a Special Act made in Parliament/’State Assembly.

→ According to Section 25, the Central Government may, by license, grant that an association may be registered as a company with limited liability, without using the words ‘limited’ or ‘private limited’as part of its name.

→ Private limited company is a type of company which is formed with minimum two shareholders and two directors.

→ Public Company means a company which is not a private company.

→ An unlimited company is a company in which the liability of its members is not limited by its Memorandum.

→ Apublic enterprise incorporated under the Indian Companies Act, 1956 is called a government company.

→ A foreign company means a company which is incorporated in a country outside India under the law of that country.

→ A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders.

→ The association clause confirms that shareholders bound by the MOA are willingly associating and forming a company.

→ The Articles of Association (AQA) is a document that contains the purpose of the company as well as the duties and responsibilities of its members.

→ A prospectus is “the only window through which a prospective investor can look into the soundness of a company’s venture”.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 5 Hindu Undivided Family and Partnership Notes

→ The Joint Hindu Family Business is a distinct form of organisation peculiar to India.

→ “When two or more families agree to live and work together, invest their resources and labour jointly and share profits or losses together, then this family is known as composite family or HUF”

→ There are two schools of Hindu Law-one is Dayabhaga which is prevalent in Bengal and Assam and the other is Mitakshara prevalent in the rest of the-country.

→ The business of the Joint Hindu Family is controlled and managed under the Hindu law.

→ All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as ‘Karta’ or ‘Manager’.

→ Partnership form of organisation is an extension of the sole proprietorship.

→ According to Prof. Haney, “The relations which exist between persons, competent to make contracts, who agree to carry on a law fill business, in common with a view’ to private gain”.

→ According to Spriegal, “Partnership has two or more members each of whom is responsible for the obligatory requirements of the partnership. Each of the partners may bind the others and the assets of the partners may be taken for debts of partnership”.

→ Every partner is jointly and severally liable for all acts of the firm.

→ Partnership formed to carry on business for an undefined period is called partnership at will.

→ Where a partnership is formed for a definite period of time, it is known as partnership for a fixed term.

→ When a partnership is formed to carry on a particular venture or a business of temporary nature, it is called particular partnership.

→ Limited Liability Partnership is very popular in the service sector and in the small scale business enterprises.

→ In India “The Limited Liability Partnership (LLP) Act, 2008” was published in the Official Gazette of India on January 9,2009 and has been notified with effect from 31st March 2009.

→ A partner who takes an active part in the conduct of the partnership business is known as an active partner.

→ A secret partner is one whose association is not known to the general public.

→ Under the Indian Majority Act, person who has not completed 18 years of age is a minor.

→ A partner of an unregistered firm cannot sue the firm or other partners for enforcing his rights under the partnership deed.

→ Dissolution of Partnership is different from the dissolution of partnership firm.

→ Good health is the primary goal of any individual, society or the nation as a whole.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 26 Companies Act, 2013 Notes

→ The concept of ‘Company’ or ‘Corporation’ in business was dealt with, in 4th century BC itself during ‘Arthashastra’ days.

→ The Companies Act 1956 came into force on 1 st April, 1956. Since then, it has been amended ‘from time to time.

→ The New 2013 Companies Act got the assent of President on 29th August, 2013 but it was passed in the Lok Sabha on 18th December, 2012 and in Rajya Sabha on 8th August, 2013.

→ The Act 2013 consists of 29 Chapters, 470 Sections and 7 Schedules as against 13 chapters, 658 Sections and 15 Schedules in 1956 Act.

→ Body corporate means a corporate entity which has a legal existence. According to section 2(11) “body corporate” or “corporation” includes a private company, public company, one personal company, small company, Limited Liability Partnerships, and foreign company incorporated outside India.

→ ‘Formation of a Company’ has been divided into four stages: 1) Promotion; 2) Registration; 3) Capital Subscription; and 4) Commencement of Business.

→ Promotion stage begins when the idea to form a company comes in the mind of a person. The person who envisage the idea is called a‘promoter’.

→ The second stage in the formation of the company is incorporation or registration.

→ After scrutinizing all the documents filed by the promoter the registrar enters the name of the company in the Register of Companies and charges a registration fee. The registrar then issues the “Certificate of Incorporation”.

→ Memorandum of Association is the charter of a company. It defines the area within which the company can operate.

→ The second most important document is Articles of Association. This document contains rules and regulations for the internal management of the company.

→ Capital Subscription is the third stage of the company.

→ The term “Capital” is viewed by a layman as the money, which a businessman invests in the business and in case of a company raise the capital by issue of shares.

→ The term Share is viewed by a layman as a fraction or portion of total capital of the company which have equal denomination.

→ The shares can be of two types: (i) Equity Share Capital (ii) Preference Share Capital .

→ The share of a company which do not have any preferential rights with regard to dividend and repayment of share capital is called as equity or ordinary share.

→ The term ‘preference shares’ mean that part of the share capital, the holders of which have a preferential right in dividend and repayment of share capital.

→ Sweat Equity Shares means issue of shares to employees or directors at a lower price for cash or other than cash.

→ Bonus share means to utilize the company’s reserves and surpluses, issue of shares to existing shareholders.

→ Right shares are issued to the existing shareholders to increase the share capital.

→ Every company, limited by shares, whether it is public or private must issue the share certificate to its shareholders except in case, where shares are held in dematerialization system.

→ Debentures mean that a company can borrow from the general public by issuing certificates for a fixed period at a fixed rate of interest.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 18 Grievance Redressal Mechanism Notes

→ Exploitation is common where consumers are not aware of their rights and privileges. So the Government takes necessary steps to save the consumers. Now the Grievance Redressal Mechanism becomes important.

→ The Consumer Protection Act postulates the establishment of Consumer Protection ’ Councils at the District, State and Central levels to make awareness.

→ As per the Act the Government establish a District forum to protect the aggrieved consumer in that District. The complaint may be filed with the forum by a consumer.

→ Present or Retired District Judge is its president. Two other members who shall be the persons of ability and knowledge and experience in economics, law, commerce accountancy and public administration. Compensation cab be claimed less than Rs.20 lakhs in this forum.

→ State Consumer Disputes Redressal Commission or State commission is appointed by the State Government.

→ The President of the State Commission is present or retired High Court Judge. The compensation to be claimed in this is above 20 lakhs and below Rs. one crore.

→ The National Consumer Disputes Redressal Commission was set up in 1988. The compensation to be claimed is more than one crore.

→ Voluntary consumer organisations refer to the organisation formed voluntarily by the consumers to protect their rights and interests.

→ A complaint can be filed by a complainant against the seller or manufacturer of goods, which are defective.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 17 Consumer Protection Notes

→ Satisfaction of consumers wants and needs is stated to be the prime and supreme objective of a business.

→ The consumer is to be protected against any unfair practices of trade. There are strong and clear laws in India to defend consumer rights.

→ The former president of U.S.A Mr. John F. Kennedy defined the basic consumer rights as “The Right of Safety, the Right to be informed, the Right to choose and the Right to be heard.”

→ The consumer is the king of the modem marketing. The following are the rights as per consumer protection Act.

(i) Right to Protection of Health and Right of Safety
(ii) Right to be Informed
(iii) Right to Choose .
(iv) Right to be Heard
(v) Right to Seek Redressal
(vi) Right to Consumer Education
(vii) Right to Consumer protection

→ Duties of Consumers:
(0 Buying Quality Products at Reasonable Price
(ii) Ensure the Weights and Measurement before Making Purchases ‘
(iii) Beware of False and Attractive Advertisements (z’v) Ensuring the Receipt of Cash Bill
(v) Buying standardized products
(vi) Knowledge of Consumer Rights

→ Responsibilities of Consumer:
The consumer must pay the price of the goods.
Consumer has to pay any interest for delay in payment.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 16 Consumerism Notes

→ A consumer is one who consumes goods manufactured and sold by others or created (air, water, natural resources) by nature and sold by others.

→ Consumers are being exploited in the following ways:
(i) Selling at Higher Price (ii) Adulteration (iii) Duplicate or Spurious goods (iv) Artificial Scarcity (v) Sub-standard (vi) Product Risk (vii) Warranty and Services

→ Consumerism is the social force protecting the consumer and aiding the consumer. It is an organised effort to fight against the unfair trade practices.

→ “Consumerisms is not limited to organised efforts only but, is a social movement seeking to augment the rights and powers of buyers in relation to sellers”. – Philip Kotler

→ Mr. Ralph Nader is considered to be the father of the consumer movement.

→ Consumer protection is a form of social action which is designed to attain the wellbeing of the society namely consumers.

→ A consumer is saitj, to be a king in a free market economy.

→ Consumer Legislation:

The Indian Contract Act, 1982
The Sale of Goods Act, 1982
The Essential Commodities Act, 1955 .
The Agricultural Products Grading and Marketing Act, 1937
The Prevention of Food Adulteration Act, 1954 Weights and Measures Act, 1958 The Trademark Act, 1999
Nowadays the consumers’ grievances and dissatisfactions grow largely.

→ The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 27 Company Management Notes

→ The group of human beings who undertake the responsibility to run the business of the company are known as Board of Directors and the members of the Board individually called as Director.

→ The person one who takes active interest in the well being of a company and one of the Members of Board of Directors is called as Director of a company.

→ Every Public company shall have a minimum of 3 directors, in the case of private company the minimum director is 2 and one director in the case of a one person company.

→ The definition of the term Key Managerial Personnel is contained in Section 2(51) of the Companies Act, 2013. This Section states: (i) the Chief Executive Officer (if) the Managing Director (Hi) the Company Secretary; (iv) the Whole-time Director; (v) the Chief Financial Officer

→ Types of Directors as per Companies Act 2013: (/) Residential Director (ii) Independent Director (iii) Small Shareholders Directors (iv) Nominee Director (v) Women Director (vi) Additional Directors (vii) Alternate Directors (viii) Shadow Director

→ Legal Position of Director: Director as agents, Directors as Managing Partner, Director as trustees, Directors as employees, Directors as officers.

→ Appointment of Directors under Companies Act 2013:
“First directors” mean those directors who hold office from the date of incorporation of the company.

→ The board can appoint additional directors, if permitted by the Articles of association.

→ The Board of directors must be authorised by its articles for the appointment of alternate director.

→ A director nominated by any financial institution or by government or by any agreement is called as Nominee director.

→ Any Individual can be appointed as Additional Director by a company.

→ In general, a director shall possess appropriate skills, experience and knowledge in the fields of finance, law, management, sales, marketing etc.

→ A director can be removed from his office before the expiry of his term by (i) the shareholders (ii) the central government (iii) the company law board

→ A Public Company can pay remuneration to its directors including Managing Director and Whole-time Directors, and its managers, which shall not exceed 11% of the net profit of the company.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 12 Employee Training Method Notes

→ Each and every organization needs the services of trained persons for performing the better activities in a systematic way.

→ Training is the act of increasing the new skill of problem solving activity and technical knowledge of the employee.

→ According to Edwin B. Flippo “Training is the act of increasing the Knowledge and skills of an employee for doing particular jobs”.

→ According to Mathis and Jackson “Training is a learning process whereby people learn skills, concepts, attitudes and knowledge to aid in the achievement of goals.

→ Dale S. Bean defined training as “the organized procedure by which people learn knowledge and skill for a definite purpose”

→ Training is one of the planned activities to transfer or modify knowledge, skills and attitude. Every training programme must contain the following steps: (i) Whom to Train (ii) Who is the Trainee (iii) Who are Trainers (iv) What Method will be used for Training (v) What should be Level the Training (vi) Where to Conduct the Training Programme

→ Training Methods:
1. On the Job Training
(a) Coaching Method
(b) Mentoring Method
(c) Job Rotation Method
(d) Job Instruction Techniques Method

2. Off the Job training
(a) Lecture Method
(b) Group Discussion Method
(c) Case Study Method
(d) Role Play Method
(e) Seminar Method
(f) Vestibule Training Method
(g) E-leaming Method

→ Training improves the skill of employees and enhances productivity and profitability of the entity. It also adds to the knowledge, skill and competency of the employees.

Samacheer Kalvi 12th Commerce Notes