Category: Samacheer Kalvi 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

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 4 Sole Proprietorship Notes

→ A business organisation is an organisation which is engaged in some industrial or commercial activity.

→ A business may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business.

→ Every business undertaking is a separate and distinct business unit.

→ According to Wheeler, “a business undertaking is a concern, company or enterprise which buys and sells, is owned by one person or a group of persons and is managed under a specific set of operating policies”.

→ Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

→ All business undertakings are directly or indirectly engaged in the transfer or exchange of goods and services for value.

→ “Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of business”; – J.L.Hansen

→ “Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks all of his property in the success or failure of the enterprise”. – Wheeler

→ A sole proprietor is not only the owner of the business but also manager of the entire affairs.

→ A sole proprietor concern is free from Government regulations.

→ Small capital is an important as well as specific advantage of sole proprietorship.

→ The sole trader can easily adjust himself to the changing requirements of his business.

→ The liability of the proprietor for the debts of the business is unlimited.

→ Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

→ A business organisation is an organisation which is engaged in some industrial or commercial activity.

→ A business may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business.

→ Every business undertaking is a separate and distinct business unit.

→ According to Wheeler, “a business undertaking is a concern, company or enterprise which buys and sells, is owned by one person or a group of persons and is managed under a specific set of operating policies”.

→ Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

→ All business undertakings are directly or indirectly engaged in the transfer or exchange of goods and services for value.

→ “Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of business”; – J.L.Hansen

→ “Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks all of his property in the success or failure of the enterprise”. – Wheeler

→ A sole proprietor is not only the owner of the business but also manager of the entire affairs.

→ A sole proprietor concern is free from Government regulations.

→ Small capital is an important as well as specific advantage of sole proprietorship.

→ The sole trader can easily adjust himself to the changing requirements of his business.

→ The liability of the proprietor for the debts of the business is unlimited.

→ Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 3 Classification of Business Activities Notes

→ Industry refers to economic activities, which are connected with conversion of resources into
useful goods.

→ The term industry is also used to mean group of firms producing similar or related goods.

→ Industries may be classified into two broad categories: (a) On the Basis of Activities and (b) On the basis of size.

→ Primary industry is concerned with production of goods with the help of nature.

→ Genetic industries remain engaged in breeding plants and animals for their use in further reproduction.

→ Manufacturing Industries are engaged in producing goods through processing of raw materials and thus creating form utilities.

→ Analytical Industry analyses and separates different elements from the same materials, as in the case of oil refinery.

→ Synthetic Industry combines various ingredients into a new product, as in the case of cement.

→ Processing Industry involves successive stages for manufacturing finished products, as in the
case of sugar and paper.

→ Assembling Industry assembles different component parts to make a new product, as in the case of television, car, computer, etc.

→ Commerce refers to all those activities which are necessary for bringing goods from the place of production to the place of their consumption.

→ The term ‘trade’ is used to denote buying and selling.

→ A trader is a middleman between the producer and the consumer.

→ Trade may be classified into internal trade or external trade, wholesale trade or retail trade.

→ The medium which moves men and materials from one place to another is called transport.

→ Business activities cannot be undertaken unless funds are available for acquiring assets, purchasing raw materials and meeting other expenses.

→ Business involves various types of risks. Factory building, machinery, furniture, etc., must be protected against fire, theft and other risks.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 25 Government Schemes for Entrepreneurial Development Notes

→ The Government of India has undertaken several initiatives and instituted policy measures to foster a culture of innovation and entrepreneurship in the country.

→ India’s efforts at promoting Entrepreneurship and Innovations:-
Through the Startup India initiative, Government of India promotes entrepreneurship by facilitating startups throughout their life cycle.

→ Make in India, Atal Innovation mission, Support to training and employment programme for women, Jan Dhan-Aadhaar-Mobile, Digital India, Stand-up India, Trade-related Entrepreneurship Assistance and development are the important schemes of Government of India.

→ Other Schemes: Modified Special Incentive Package Scheme, New Gen Innovation and Entrepreneurship Development Scheme, Dairy Entrepreneurship Development Scheme, Single Point Registration Scheme, Atal Incubation Centres are the other schemes of the Government.

→ The various steps involved to start a venture have been highlighted:
1. Selection of a product
2. Selection of ownership
3. Selection of site
4. Designing capital structure
5. Acquisition of manufacturing know-how
6. Preparation of project report

→ The Project Report should include the following:
(i) Technical feasibility
(ii) Economic viability
(iii) Financial viability
(iv) Managerial competency
(v) Provisional registration certificate
(vi) Permanent registration certificate
(vii) Statutory licence
(viii) Power connection
(v) Arrangement of finance

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 19 Environmental Factors Notes

→ The sum total of all factors both internal and external which has an impact on the functioning of a business can be termed as business environment.

→ The understanding of business environment is essential for taking important decisions,

→ According to Bayard O ‘Wheeler Business environment is “the total of all things external to firms and industries which affect their organisation and operations”.

→ The business environment can be classified as follows. (i) Internal environment (ii) External environment.

→ .Internal environment refers to those factors within an organisation e.g Policies and programmes, employees, financial and physical resources.

→ External environment refers to those factors outside the business, e.g., economic, political and socio-cultural factors.

→ The major internal factors affecting business decisions are (OValues system (ii) Vision and objectives (iii) Management structure (iv) Internal power relations (v) Company image

→ External environment is further subdivided into micro or task environment and macro or general environment.

→ The micro environment factors are (i) Suppliers (ii) Customers (iii) Competitors (iv) Financiers (v) Marketing Channel members (vi) Public

→ The macro environment factors are (i) Economic environment (ii) Socio-Cultural environment (iii) Political and Legal environment (iv) Geo-physical environment

→ 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.

→ Goods and Services Tax (GST) is the indirect tax levied on goods and services across the country.

→ There are three types of GST. They are (i) CGST (ii) SGST (iii) IGST:

→ Goods and Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.

Samacheer Kalvi 12th Commerce Notes

Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 11 Employee Selection Process Notes

→ Employee selection process may be adopted depending upon the nature of jobs and organizations. The process may differ from organization to organization.

→ A selection process includes a number of steps – screening the application forms, test, interview, checking of references, physical examination, and approval by appropriate authority, and handing over the selected candidates to orientation and placement section.

→ It is the process of choosing the most suitable person for the vacant position in the organization.

→ ’According to Dale Yoder: “Selection is the process in which the candidates for employment are divided into two classes – those who are to be offered employment and those who are not.”

→ David & Robbins: “Selection is a managerial decision making process to predict which job applicants will be successful if hired.”

→ Selector can collate different types of information from the application blank namely family background, educational qualification, co-curricular activities, work experience, exposure to related activities, scale of pay drawn, academic distinction, area of expertise and so on.

→ Selection Test may be of ability tests and personality tests.

→ Interview may be derived from French word enter voir that means to glimpse or to see each other.

→ Interview may be of Preliminary Interview, Planned Interview, Stress Interview, Telephone Interview, Online Interview, Group interview, Video Conference Interview ect.

→ The last technique used in selection process is medical examination. It determines an applicant’s physical ability to perform a specific job.

→ Placement is an important human resource activity after a candidate has been selected.

→ According to Dale Yoder, Placement may be defined as “the determination of the job to which an accepted candidate is to be assigned, and his assignment to that job”.

Samacheer Kalvi 12th Commerce Notes