Category: Samacheer Kalvi Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 12 Functions of Commercial Banks Notes

→ In these days banks compete with each other to attract customers by adding facilities to these deposit accounts.

→ Current Deposits account is suitable for business institutions.

→ Fixed deposit period can be 1 month to 10 years. Fixed deposit is also called Term deposit.

→ Overdraft is a credit facility extended mostly to current account holding business community customers.

→ Loan is provided by banks to students for studying undergraduate or professional courses.

→ Customers pledge their gold jewels and obtain loans from banks.

→ According to Negotiable Instruments Act 1881, “cheque is a’ bill of exchange drawn on a specified banker payable on demand”.

→ Banks act as executors of will of the customers and implement their will after their death.

→ Valuable documents, jewels, etc. can be kept safely in a vault provided by bank for a rent. These vaults room is called ‘Strong Room”.

→ Competition in the banking industry has reduced their profits.

→ A commercial bank or its subsidiary merchant bank may offer services like project counselling, underwriting, etc. required for starting a company. It is called merchant banking.

→ Retail Banking refers to mass market banking which reaches out to large number of individual end customers.

→ Housing finance is provided against, the security of immovable property of land and buildings.

→ Mutual Fund is a financial intermediary that pools the savings of investors for collective investment in diversified portfolio securities in the capital market and money market.

→ Factoring is a continuing arrangement between a financial intermediary (factor) and a business concern (client) whereby the factor purchase the clients’ accounts receivable.

→ ECS was launched by the RBI in 1995.

→ ‘CORE’ stands for ‘Centralized Online Real time Exchange’.

→ Internet banking refers to performing banking operations through internet, using computers and mobile phone.

→ IMPS was launched by the National Payments Corporation of India in November 2010.

→ Debit Cards is more useful in purchase of goods and services anywhere in India, if the shop maintains a swiping machine facility.

→ Banks transfer funds from surplus areas and make them available in scarce districts or areas for the formation and operation of business institutions.

→ Banks have established customer relationship with all public and business institutions through the network of branches.

→’ Banks open foreign branches or establish correspondent relationship with banks in foreign countries to help exporters.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 10 Reserve Bank of India Notes

→ Educational, medical, hospitality and the like service business existed for centuries.

→ Banking service is the nerve center of industry and commerce in a country.

→ The word Bank, normally refers to commercial bank.

→ A Central bank is set up as an autonomous or quasi-autonomous body.

→ “ A central bank being generally recognized as a bank which constitutes the apex of the monetary and banking structure of its country and which performs as best as it can, in the national economic interest.” – De Kock.

→ A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country.” – Bank of International Settlement (BIS).

→ The Imperial Bank of India carried out the note issue and other functions of the central bank.

→ The head office of the RBI is situated in Mumbai.

→ Broad economic parameters such as employment level, price levels and production levels, trade cycles, foreign investment flows, balance of payments, financial markets, etc., are closely monitored by the RBI in order to achieve economic stability and growth.

→ The relationship between RBI and other banks in the country is just like the relationship of a commercial bank with its customers.

→ Bank rate refers to the rate at which the RBI rediscounts the bills given by the Scheduled banks.

→ Cash Reserve Ratio (CRR) is the ratio of Cash reserves with the RBI kept by Scheduled banks in proportion to the total Time and Demand Liabilities with them.

→ Statutory Liquidity Ratio (SLR) is the ratio of money and money equivalents kept within the bank in proportion to the total Time and Demand Liabilities with them.

→ Marginal Requirement refers to the percentage of the value of securities submitted before issue of loans.

→ RBI acts as clearing house and maintains a clearing system for all commercial banks in India.

→ The RBI performs a wide range of promotional functions to support national objectives.

→ RBI has appointed 20 (up to 2017) Banking Ombudsman in 20 state capitals.

→ Agriculture industry is specified as priority sector by the RBI.

→ The RBI has simplified the rules for credit to exporters, through which they can now get long term advance from banks.

→ RBI is one of the best central banks in the world.

Samacheer Kalvi 11th Commerce Notes

Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 9 Government Organisation Notes

→ Public enterprise, as a form of business organization gained economic importance in most of the countries of the world in recent years.

→ Department form of organisation of managing state enterprises is the oldest form of organisation.

→ A departmental undertaking is established either as a separate full-fledged ministry or as a sub-division of a ministry (i.e. department) of the Government.

→ Strategic industries like defence and atomic power cannot be better managed other than government departments.

→ Government can promote economic and social justice through departmental undertakings.

→ Civil Servants are given control of these undertakings who may not have business outlook or commercial experience.

→ There is an excessive government interference and control in department organisation.

→ A public corporation is that form of public enterprise which is created as an autonomous unit, by a special Act of the Parliament or the State Legislature . ‘ ,

→ The Statute defines the obj ectives, powers and functions of the public corporation.

→ A public corporation is created by a special Act of the Parliament or the State Legislature.

→ The main objective of a public corporation is service-motive; though it is expected to the self-supporting and earn reasonable profits.

→ A public corporation enjoys internal operational autonomy; as it is free from Governmental control.

→ A public corporation follows a reasonable pricing policy, based on cost-benefit analysis.

→ Autonomy and flexibility advantages of a public corporation exist only in theory.

→ Quite often civil servants, who do not possess management knowledge and. skills, are appointed by the government on the Board of Directors, of a public corporation.

→ In the Board of Directors of public corporation, conflicts may arise among representatives of
different groups.

→ A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company”.

→ A Government company is created by an executive decision of the Government, without seeking the approval of the Parliament or the State Legislature.

→ The Annual Report of a Government company is presented to the Parliament/State Legislature.

Samacheer Kalvi 11th Commerce Notes

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