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The facility provided by the bank is called Overdraft.

Commercial banks provide cash credit for :

• Agriculture 
• Industry 
• House construction 
• Purchase of vehicle 
• Purchase of home appliances 

The control of credit is an important function of RBI. The RBI increases the money supply in Indian economy through the distribution of printed currency and through credit creation. This is made possible by bringing about changes in the rate of interest. As rate of interest increases, volume of loans decreases and vice versa.

• Tenure of loan 
• Mode of repayment 
• Reason for taking loan 

i. Money supply increases in Indian economy through the distribution of printed currency and through credit creation. 

ii. Control of credit is the function of RBI. 

iii. Control of credit is the made possible by bringing about changes in the rate of interest. As rate of interest increases, volume of loans decreases. As rate of interest decreases, volume of loans increases.

Demand draft.

Option : (c).Current deposit

Normally, traders and industrialists deposit money in current deposit scheme. Banks allow the customer to deposit and withdraw money many times in a day without any restriction. Banks do not provide such a facility to any other deposit.

The supply refers to the quantity of a commodity that a seller is prepared to sell in the market at a given price at a given time.

Credit Card Debit Card

Free goods are those goods that are available in abundance and these goods, therefore, do not command any price. 

For example–air, sun shine, water etc.

Electronic banking Core banking

14 banks were nationalized in 1969 and 6 banks were nationalized in 1980.

Food Corporation of India (FCI).

Electronic banking is a method by which all transactions can be carried out through not banking and telebanking. Its features are money can be sent and bills can be paid anywhere in the world. 

Saves time and low service charges.

Core banking: Core banking is the facility which is arranged in such a way that the branches of all banks are brought under a control server. This facility helps and individual to send money to his account from anywhere.

Bharat Heavy Electronics Ltd (BHEL).

Overdraft is a credit facility provided to individuals by banks. This allows an account holder who have frequent transactions to withdraw an amount over and above the balance in the account.

Labour is any type of human activity–physical or mental done with a view to earning money.

1. Technological progress: The technological progress, for instance an organizational innovation by a firm, with same levels of capital and labour, leads to more production of output.

The technological progress or organizational innovation allows the firm to use fewer units of inputs. It is expected that this will lower the firm’s marginal cost at any level of output; that is, there will be shift of MC curve towards right from the original MC curve.

As the firm’s supply curve is the part of rising MC curve, technological progress shifts the supply curve of the firm to the right. At any given market price, the firm supplies more units of output.

2. Input prices: A change in input prices also affects a firm’s supply curve. If the price of an input increases, the cost of production rises. The consequent increase in the firm’s average cost at any level of output is usually accompanied by an increase in the firm’s marginal cost at any level of output. This means that the firm’s supply curve shifts to the left at any given market price and the firm now supplies fewer units of output.

 a) Behaviouristic Framework

(b) Monopolistic competition.

A consumer is also responsible for safeguarding his own interest and to protect himself from exploitation. The following are some of the responsibilities of a consumer.

(i) Awareness: A consumer should be well aware of the availability of various goods and services so that he can choose carefully and wisely.

(ii) Looking for Quality Marks: A consumer must always look for the quality certification marks before the purchase of goods such as ISI in case of electrical goods, AGMARK in case of agricultural goods, etc.

(iii) Asking for Cash Memo: A consumer should always ask for cash memo or bills for the goods and services purchased. The bill acts a proof of purchase and can be used for future references.

(iv) Reading Labels: Labels on goods provide information regarding price, weight, expiry date of the product. The labels must be read carefully.

(v) Honest Transactions: A consumer must always choose legal dealings and discourage illegal trade practices such as black marketing and hoarding.

(vi) Ensure Safety: A consumer must carefully read the manuals and instructions provided by the manufacturer so as to ensure safe use of the product.

(vii) Filing Complaint: In case the product is found defective or any deficiency is found in the quality of the product, a complaint must be filed in the appropriate forum.

(viii) Consumer Societies: Consumer organisations and societies must be formed to work towards consumer education and awareness.

(ix) Environment Protection: The consumers must also work towards environment protection by avoiding wastes, pollution, etc.

(C) interpersonal relations. 

The following are some of the Acts passed by the Government of India for the protection of consumers’ interests.

(i) The Consumer Protection Act, 1986: This Act provides for the protection of consumer interests against various forms of exploitation such as defective goods, deficiency in services, unfair trade practices, etc. Under the Act, a three-tier machinery comprising of District Forum, State Commissions and the National Commission, has been set up for the redressal of consumer grievances.

(ii) The Contract Act, 1982: This Act defines the conditions under which the promises in a contract are binding. In addition, the remedies available in case of breach of contract are also specified in the Act.

(iii) The Sale of Goods Act, 1930: The Act provides protection and relief to the consumers in case the goods purchased by them do not abide by the expressed or implied conditions and warranties.

(iv) The Agriculture Produce (Grading and Marking) Act, 1937: This Act defines grade standards for agricultural and livestock commodities. It provides the procedure for grading, packing and marking of agricultural products. The quality certification mark provided by the Act is called as AGMARK.

(v) The Prevention of Food Adulteration Act, 1954: This Act is formed to check the adulteration in food items and to maintain their purity.

(vi) The Standards of Weights and Measures Act, 1976: This Act safeguards the interest of the consumers against exploitative practices related to under-weight and under-measure of the goods.

(vii) The Essential Commodities Act, 1955: This Act provides for control in production, supply and distribution of essential goods. It also controls inflationary trends and ensures equality in distribution of these goods. It also checks anti-social activities such as hoarding and black marketing.

(viii) The Trade Marks Act, 1999: This Act is formed to check the use of false marks on the goods and thereby, protects the consumers against such goods.

(ix) The Competition Act, 2002: This Act is formed to prevent such practices by the business firms that hinder competition in the market.

(x) The Bureau of Indian Standards Act, 1986: Under the Act, The Bureau of Indian Standards has been established that formulates the standards for the quality of the goods and based on these standards provides certification of quality through BIS certification scheme. The quality certification mark provided by the Act is called as ISI. In addition, a grievance cell has also been set up to redress complaints regarding the quality of the products.

Consumer protection refers to the consumer education regarding their rights and responsibilities and the redressal of their grievances and complaints. Consumer protection is important not just for consumers but also for business. The following points highlight the significance of consumer protection from the point of view of business.

(i) Long-Term Interest: With increasing competition and the drive to survive in the market, consumer satisfaction and interest is of prime importance for any business. While taking due care of the interest of the consumers, a business builds goodwill and reputation. A satisfied ustomer not only comes back and results in repeated sales for the firm, but also pulls new customers by spreading the good word. Thus, it is in long-term benefit of the business to protect consumers’ interest.

(ii) Use of Resources: A business uses the resources of society for the production of various goods and services. Through the sale of these goods and services to the society, a business earns profits. Thus, it is their duty to supply such goods and services that adhere to the overall interest of the society.

(iii) Ethical Reasoning: Today moral values and ethics play an important role in business. It is the moral duty of every business to protect the interests of its customers. They must follow ethical and moral values and avoid any form of exploitation of the consumers such as unfair trade practices, adulteration, etc.

(iv) Responsibility towards Society: As the business earns profits by selling various goods and services to consumers, it becomes their responsibility to take care of the interests and satisfaction of the consumers.

(v) Government Interference: A business organisation that indulges in any form of exploitation of consumers such as unfair trade practices, adulteration, etc. draws intervention from the government. Such government interference spoils the goodwill and image of the business. Thus, it is in the interest of the business to voluntarily follow such practices that take care of the interest of the consumers.

(i) True, consumer protection has a moral justification for business. It is the moral duty of every business to protect the interests of its customers. Business organisations must follow ethical values and any form of exploitation of the consumers such as unfair trade practices, adulteration, etc. must be avoided.

(ii) True, in addition to rights, a consumer also has some responsibilities such as being aware of the availability of various goods and services; being informed of the price, weight, expiry date, etc. of the goods; asking for bills and cash memo while purchasing goods and services.

(iii) False, A District Forum offers for redressal of consumer grievances when the value of goods and services in question, along with the compensation claimed is less than Rs 20 lakhs. In case the value exceeds Rs 20 lakhs, a complaint can to be filed in the appropriate State Commission.

(iv) True, The Consumer Protection Act, 1986 provides for six consumer rights, namely

a) Right to Safety

b) Right to be Informed

c) Right to Choose

d) Right to be Heard

e) Right to seek Redressal

f) Right to consumer Education

(v) False, ISI is the quality certification mark used in case of goods other than food products. For food products the quality certification mark is known as FPO.

(vi) True, The Consumer Protection Act, 1986 provides for protection of consumer interests against defective goods, deficiency in services and other such forms of exploitation.

Importance of Management:

1. Management helps in achieving group goals: Management integrates the individual or personal objectives with the organisational goals. It leads the efforts of the individuals towards achieving the organisational goals. 

2. Management improves efficiency: Management focuses on reducing cost and improving productivity. This leads to efficiency. 

3. Management creates a dynamic organisation: Business environment is ever changing. Managers keep on making changes in the organisation to match the environmental changes.

Meaning of E-business: E-business means conducting industries, trade and business using the computer networks. E-business presents the firm with promising opportunities for anything, any where and any time to its customer.

Advantages of e-Business :

1. Convenience : E-business offers the advantage of accessing anything, anywhere, anytime. It enables the customers to shop at their own convenience at any time (24x7). It enables the business firms to remain in touch with their customers, suppliers, etc. Moreover, employees can also access to organisations network (through VPN) and can do work from any place.

2. Speed : Information moves very fast through internet, which speeds up the process of buying and selling. e-business needs very less time to complete the business cycle as the entire process is done with the click of a mouse. Some products are even delivered online, like music, movies, e-books, etc.

Sulekha is working at middle level management
Functions: The main task of Sulekha is to carry out the plans formulated by the top managers. For this she need to:
1. Interpret the policies framed by the top management,
2. Ensure that her department has the necessary personnel, assign necessary duties and responsibilities to them,
3. Motivate them for higher productivity to achieve the desired objectives, and
4. Cooperate with the other departments for smooth functioning of the organization.

:
This statement is wrong. Although management can be called science but not as an exact or pure science like physics or chemistry. It is important to apply the characteristics of science to management in order to find out whether management is a science or not. Following are the main points:
1. Systematized Body of Knowledge - It is necessary for science to be a systematized body of knowledge. Management is also a systematized body of knowledge because it has its own theory and principle which are developed by the management experts after years of research.
2. Principles Based on Experiments - After applying this characteristics of science to management, we find that development of management, took years for the collection of facts, their analysis and experiment.
3. Universal validity - Scientific principles are based on truth and they can be applied every time and in every situation. In the field of management the principles of management are considered to be based on truth and they too can be applied anywhere and in every situation.
Conclusion - The subject matter of management is human being who is an intelligent and sensitive being and whose behaviour or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. So the management cannot be called a pure science, it is an applied Science or social science because it deals with human behaviour.

Yes, Coordination is indeed the essence of management. By Coordination, we mean a path through which the group functions are linked up. It binds the people of the organisation and their activities to ensure a smooth functioning of the work. It is that force which unites the working and efforts of the people of the organisation towards the common objective of the organisation. Coordination links the interrelated functions of management. It is found at every level of management. It begins right from the stage of planning where goals and objectives are set for the organisation. Coordination is then required between the stage of planning and staffing so that right kind of people are hired for the execution of the plan. Next the functions of directing and controlling must also be coordinated with each other so as to realize the achievement of desired goals.

The following points highlight the importance of coordination in management.

(a) Harmonized Goals: In any organisation, growth is one of important goals. With growth of the organisation, its size increases and the number of personnel also increases. However, greater number of persons means more differences in thoughts and work habits that may lead to disharmony among people. Also, every individual will have his/her personal goals which may create hindrance in achieving the organisational goals. So, coordination is important so as to synchronize the personal and the overall goals in one direction.

(b) Allotted Work: Each task requires specialisation to give the requisite results. For this, every organisation hires expert for different tasks. Every specialist approaches the tasks in his own unique manner and is generally reluctant to take up any advice or suggestion form others. This may lead to diversion or conflict among various specialists in the organisation. Thus, coordination is required from an outside body such as the manager so as to integrate their opinions and thoughts.

(c) Interdependence of Divisions: An organisation has various departments and sub-departments such as production, sales, finance, etc. Every department works independently and with its own policies and objectives. For example, the sales department may want greater monetary incentives for its employees but the finance department may not approve of such incentives as it may lead to increase in the cost of the organisation. In this case, there arises a conflict between the two departments. Thus, here also coordination is needed to synchronise the activities of each department towards the achievement of common goals of the organisation.

Hence, we see that coordination is intrinsic and imperative for management. It is the ‘essence’ of management.

It deals with the new securities which are issued for the first time. It is also known as the New Issue Market. The investors in this market are banks, financial institutions, insurance companies, mutual funds and individuals. It has no fixed geographical location and only buying of securities takes place in the primary market.

Although management does not satisfy all the criteria of a profession, however, it does possess some of the characteristics that qualify it to be a profession.

The following are the characteristics of management as a profession:

i. Systemised Knowledge: Management has a systemised and well-defined body of knowledge. It is based on several theories and principles that are developed over years with continuous experimentation and observation. The knowledge of management can be attained through various colleges, institutes and books. Management as a course is offered by many colleges and professional institutes. For example, in India, the Indian Institute of Management (IIM) is the premier institute of management.

ii. Restriction to Entry: Management satisfies this criterion only to some extent. As against other professions such a doctor or a lawyer, no specific qualification or degree are required to be a manager. That is, any person holding any degree or qualification can be a manager. However, the entry is restricted as persons with professional management degree or diploma are preferred.

iii. Professional Association: A professional has to be a member or should be associated with a statutory body which is responsible for stating the laws and authorities of that profession. For example, to practice Chartered Accountancy, a person has to be a member of the Institute of Chartered Accountants of India. Similarly, management is also affiliated to a professional association that regulates the functions of the members. In India, the AIMA (All India Management Association) is an association for the managers. But, it is not requisite for managers to be a part of them.

iv. Code of Conduct: Any professional has to abide by the rules and regulations developed by the apex authority which regulates the functions of that profession. There is a set Code of Conduct which that professional has to follow for smooth functioning. In management also we have a specific Code of Conduct but, it is not obligatory for the managers to abide by them. Unlike profession where the members violating the rules are punished, no such penalizing is done in management if the managers do not obey the standards set by AIMA or AIPMA. However, alike other profession through management also the society is served. Through effective and efficient management of the organisation, quality products and services are provided at reasonable prices.

Thus, it can be said that to some extent management satisfies the criterion for it to be called a profession.

Management fulfills the criteria of both an art as well as a science. The following points explain the features of management as an art and as a science:

Management as an Art: Management satisfies the following criteria for it to be called an art.

(a) Existing Literature: All art forms such as music, dance presuppose a defined body of knowledge and literature. Similarly, management also has a lot of literature for theoretical knowledge and learning. Various theories and principles have been developed in management. Such as Henry Fayol’s Principles of Management, Taylor’s Scientific Management Theory.

(b) Dynamic Application: Art is the personalised applicability of the existing knowledge. That is, each individual uses the basic knowledge in his own creative way. For example, every dance form has some basic steps. These steps are used by each dancer using his own creative manner. In a similar manner, managers use the available theories and principles as per the situation in their own unique manner. That is, the managers use their own creativity and imagination for the application of the knowledge of management.

(c) Practice and Creativity: Art involves practice and innovation. The artists use the existing literature as per his own creativity and innovation. For example, two writers can describe a given situation based on their unique interpretations. Similarly, in management, a manager applies the theories and principles of management to different situations as per his own creativity and imagination and sometimes even formulates new ways to address a situation.

Management as a Science: As a science, management fulfills the following criteria.

(a) Systematic Body of Knowledge: Science has a specified body of knowledge which is based on cause and effect relationship. Similarly, management has its own body of theories and principles that are developed over years. In addition, similar to other disciplines of science, management also has its own vocabulary.

(b) Theories Based on Experimentation: In science the principles and theories are based on continuous observation and experimentation. In a same manner, the principles of management have also developed over several years based on repeated observations and experiments. However, as against science, in management no exact cause and effect relationship can be established. This is because management primarily deals with humans and human behavior. As human behavior is subject change, so, the outcome of these theories would also vary from one situation to another. Despite this, management fulfils this criterion of science to some extent as the scholars have been able to identify certain theories and principle that act as guidelines in management.

(c) Universal Validity: In science, the principles have universal validity. In management also the theories and principles are valid to some extent if not universal. Although the application of the theories and their outcomes vary from situation to situation, however they act as standards for actions in different situations. That is, these principles can be used for the basic training of the managers.

The following are the basic features according to which management can be viewed as a profession.

i. Systemised Knowledge: Management is based on a systemised and well-defined body of knowledge comprising of principles and theories. This knowledge can be attained through various colleges, institutes and books.

ii. Professional Association: As every profession, management is also affiliated to a professional association that regulates the functions of the members. For example, in India the AIMA (All India Management Association) regulates the functioning of its member managers. However, there is no compulsion for every manager to be member of the association.

iii. Restriction to Entry: Although no specific qualifications or degrees are required to be a manger, however, professional knowledge in terms of management degrees and diplomas are preferred. To some extent, this restricts the entry of people in management as a profession.

iv. Code of Conduct: Every profession follows a particular code of conduct that acts as a guiding principle for the ethical behavior of its members. Through good management, the production takes place in an effective and efficient manner and quality goods and services are provided to the society at a fair price.

Policy making is not an objective of management. It is in fact a process that involves the setting up of goals and objectives for the organisation and the determining the ways to achieve the desired goals. That is, it can be said that policy making is the path through which the objectives of a management i.e. organisational objectives (such as earning profits and growth of the organisation), social objectives (such as providing employment) and personal objectives can be achieved.

The organizational objectives of management refer to the main objectives required to fulfil the economic goals of the business organization.
1. Survival: The basic objective of every business is to survive for a longer period in the market. The management must ensure survival of the organization by earning enough revenue to cover its costs.
2. Profit: Only survival is not sufficient for business. Profit earning is essential for meeting the expenses and for the successful operation of the business. Thus management must ensure earning of sufficient profit.
3. Growth: The next important objective of the management is to ensure future growth and development of the business.

Optimum utilisation of resources entails employing the limited resources (such as capital and labour) to their best possible usage so that maximum benefit can be derived with minimum possible cost. Principles of management help in predicting the cause and effect relationship of the decisions of the managers. Thus, the wastages of resources that may be associated with the hit and trail method can be avoided. Thus, principles of management are significant because of optimum utilisation of resources. Increase in efficiency, initiative and adaptation to changing technology arrives at later stages, ones the resources are fully utilised.

Sales manager.

Have you seen the Taj Mahal.

Principles of management were developed over years by experiences and observations of the managers. Every manager faces varying situations in real business organisations. Based on these experiences, they draw general conclusions and inferences that guide them in their action and decision making in similar situations. That is, the experiences of the managers form the basis of the principles of management.

A thing of beauty is a joy forever because it is a permanent source of joy and inspiration and leaves a lasting impression on us. The pleasure and happiness given by it never fades away but keeps on increasing.

(a) A thing of beauty provides eternal and everlasting joy to us. Whenever we are in a pensive mood we can relive the joyful experience and happiness it gave us. 

(b) A thing of beauty gives us a quiet bower to rest peacefully, and a blissful sleep full of pleasant dreams. 

(c) The joy that a thing of beauty give us is eternal. It never loses its importance, but it only increases with time. 

(d) A ‘bower’ refers to a peaceful, quiet place under the shade of trees.

(i) She said that he had not seen the Taj Mahal. 

(ii) My brother asked me where his books were. 

(iii) The old man ordered the servant to bring a glass of water. 

(iv) The man told me that he would leave for Delhi the next day. 

3. Absolute.

Principles of management are not absolute. They are just the guidelines for the decision making in the course of management. That is, principles of management are not applied as it is in the real business situations rather they need to be modified by the manager as per the situation and the requirement.

(i) is 

(ii) has 

(iii) do

Correct option is: (C) Absolute

(i) at 

(ii) with 

(iii) to 

(iv) with

1. Although

2. Then

3. so

4. Although

5. where

6. but

7. and

8. Since

9. or

10. if