Class 11

Balbharti Maharashtra State Board Marathi Yuvakbharati 11th Digest Bhag 3 नाटक- साहित्यप्रकार-परिचय Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board 11th Marathi Yuvakbharati Solutions Bhag 3 नाटक- साहित्यप्रकार-परिचय

11th Marathi Digest Chapter 3 नाटक- साहित्यप्रकार-परिचय Textbook Questions and Answers

कृती

1. योग्य पर्याय निवडा.

प्रश्न अ.
……………………….. हे प्रयोगक्षम साहित्यप्रकार आहेत.
(a) नाटक, कथा
(b) नाटक, एकांकिका
(c) नाटक, काव्य
(d) नाटक, ललित
उत्तरः
(b) नाटक, एकांकिका हे प्रयोगक्षम साहित्यप्रकार आहेत.

प्रश्न आ.
नाटकाची लोकसंपर्क ही महत्त्वाची बाजू आहे कारण ………………………………… .
(a) अभिनय करणारा उपस्थित असतो.
(b) नाटकामुळे प्रेक्षकांशी जिवंत संपर्क घडतो.
(c) नाटकाची जाहिरात होते.
(d) नाटकाची संहिता वाचता येते.
उत्तरः
(b) नाटकाची लोकसंपर्क ही महत्त्वाची बाजू आहे कारण नाटकामुळे प्रेक्षकांशी जिवंत संपर्क घडतो.

प्रश्न इ.
नाटक ही दृकश्राव्य कला आहे कारण
(a) खूप पात्रे त्यात सहभागी असतात.
(b) डोळ्यांनी पाहून कानांनी ऐकता येते.
(c) दिग्दर्शक, कथालेखक, नेपथ्यकार असतो.
(d) नृत्य, नाट्य, संगीत यांचा आविष्कार असतो.
उत्तरः
(b) नाटक ही दृक-श्राव्य कला आहे कारण डोळ्यांनी पाहून कानांनी ऐकता येते.

2. चुकीचे विधान शोधा.

प्रश्न अ.
(a) अण्णासाहेब किर्लोस्कर यांनी नाट्यपरंपरेला गती दिली.
(b) विष्णुदास भावे यांनी १८४३ साली ‘सीतास्वयंवर’ नाटकाचा प्रयोग केला.
(c) रसिक प्रेक्षकांना डोळ्यांसमोर ठेवून संगीत नाटकाची रचना केलेली नसते.
(d) संगीत नाटकातील पदे ही आशयाला धरून कथानकाला गती देणारी असतात.
उत्तरः
(c) रसिक प्रेक्षकांना डोळ्यांसमोर ठेवून संगीत नाटकाची रचना केलेली नसते.

प्रश्न आ.
(a) नाटकाचा प्रयोग म्हणजे औटघटकेची करमणूक.
(b) नाटकाचा प्रयोग म्हणजे अंतर्मुख करणारा.
(c) नाटकाचा प्रयोग म्हणजे मनाचा तळ धुंडाळणारा.
(d) नाटकाचा प्रयोग म्हणजे सारं मन सोलवटणारा.
उत्तरः
(a) नाटकाचा प्रयोग म्हणजे औटघटकेची करमणूक.

प्रश्न इ.
(a) परस्परविरोधी स्वभावांतून संघर्ष निर्माण होतो.
(b) नाटकाच्या कथानकातील आशयाला संघर्षाशिवाय रंगत येते.
(c) भूमिकांच्या नात्यात परस्पर संघर्ष दाखवता येतो.
(d) भूमिका व परिस्थिती यांतील संघर्षामुळे नाटक परिणामकारक ठरते.
उत्तरः
(b) नाटकाच्या कथानकातील आशयाला संघर्षाशिवाय रंगत येते.

प्रश्न ई.
(a) नाटकात संहिता महत्त्वाची असते.
(b) नाट्यसंहिता परिपूर्ण असावी.
(c) नाट्यसंहिता दर्जेदार असावी.
(d) नाटकात संहितेला फारसे महत्त्व नसते.
उत्तरः
(d) नाटकात संहितेला फारसे महत्त्व नसते.

3. प्रश्न अ.
फरक स्पष्ट करा.

(a)

उत्तर :

प्रायोगिक नाटक	व्यावसायिक नाटक
1. या नाटकातील संवाद बरेचसे बोलीभाषेत असतात.	व्यावसायिक नाटकात विनोद, उपहास, शाब्दिक कोट्या यांवर आधारित संवाद असतात.
2. प्रायोगिक नाटकात आपल्याला वाटते ते आपल्या पद्धतीने मांडायचे धाडस केलेले असते.	प्रेक्षकांच्या अभिरुचीनुसार व्यावसायिक नाटकांची मांडणी केलेली असते.
3. प्रायोगिक नाटकांच्या आकृतिबंधात, विषयांत नाविन्यता असते.	व्यावसायिक नाटकांचे विषय कौटुंबिक, सामाजिक, ऐतिहासिक, पौराणिक यांवर आधारित असतात.
4. प्रायोगिक नाटकांमध्ये नाटकाची ठराविक चौकट मोडण्याचा प्रयत्न केलेला असतो.	व्यावसायिक नाटकांचे स्वरूप प्रामुख्याने करमणूकप्रधान असते.
5. प्रायोगिक नाटकांमध्ये नेपथ्य, अभिनय, तंत्र यामध्ये जाणीवपूर्वक बदल केलेला असून व्यावसायिक नाटकांपेक्षा वेगळेपणा जाणवतो.	व्यावसायिक नाटकांमध्ये नेपथ्य, प्रकाशयोजना, रंगभूषा यांना महत्त्वाचे स्थान आहे.

(b)

उत्तर :

नाटक	इतर साहित्य प्रकार
1. नाटक हा समूहाचा आविष्कार असून त्यात संगीत, नृत्य, वक्तृत्व, अभिनय, नेपथ्य, काव्य, चित्रकला या सर्व कलांचा समावेश असतो.	कथा, कादंबरी व कविता हे इतर साहित्यप्रकार हे वाचकनिष्ठ आहेत.
2. नाटकामध्ये अनेक लोकांचा सहभाग असून असंख्य प्रेक्षक एकाच वेळी त्याचा दृश्य स्वरूपात अनुभव घेऊ शकतात.	कथा व कादंबरी या साहित्यप्रकारात फक्त लेखक व वाचक हे दोनच घटक असतात.
3. नाटक सामूहिकरित्या रंगमंचावर, कलाकारांना सादर करता येते.	कथा, कवितांचे वाचन रंगमंचावर करता आले तरी त्याचे सादरीकरण करता येत नाही.

प्रश्न आ.
खालील कृती करा.

(a)

उत्तर :

(b)

उत्तर :

(c)

उत्तर :

(d)

(e)

उत्तर :

(f)

उत्तर :

प्रश्न इ.
खालील घटना/कृती यांचा परिणाम लिहा.

उत्तर :

घटना/कृती	परिणाम
1. एखादया प्रसंगात कल्पनेपलीकडील बदल आकस्मिकरित्या होतो.	नाट्य निर्माण होते.
2. नाट्यसंहितेचे परिपूर्ण व दर्जेदार लेखन	नाटकाचे यश खात्रीलायक.
3. नाटकात संघर्ष असला तर	कथानकातील आशयातरंगत येते किंवा नाटक परिणामकारक वठते.
4. प्रत्येक व्यक्तीला स्वत:ला आलेला अनुभव, आनंद, दु:ख सांगावेसे वाटते.	साहित्याची निर्मिती होते.

4. स्वमत.

प्रश्न अ.
‘नाटक म्हणजे सांघिक कलाविष्कार आहे’, या विधानासंबंधी तुमचे मत सोदाहरण स्पष्ट करा.
उत्तरः
नाटक हे दृकश्राव्य माध्यम असल्याने ते लिहिणारे, अभिनय करणारे कलाकार, तंत्रज्ञ, प्रेक्षक, समीक्षक अशा सर्वांच्या सहकार्यावर नाटकाची यशस्विता अवलंबून असते. नाटकाचे सादरीकरण रंगमंचावर केले जाते. नाटकाचा प्रयोग आशय व प्रयोग या दोन्ही दृष्टीने देखणा होण्यासाठी अनेक जणांचा समन्वय व प्रयत्न महत्त्वाचे असतात. कलावंत, नेपथ्य, संगीत, प्रकाशयोजनाकार, रंगभूषाकार, दिग्दर्शक यांचा समावेश त्यांत असतो. पडदयामागील कलाकारांचे श्रेयही यात तेवढेच आहे.

दिग्दर्शक : लेखकाच्या संहितेएवढेच दिग्दर्शकाचे महत्त्वही नाटकात अनन्यसाधारण आहे. नाटकाची तांत्रिक व कलात्मक बाजू या दोन्ही दृष्टीने दिग्दर्शक एकात्मिक विचार करतो. नृत्य, अभिनय, संगीत या कलांचीही जाण त्याला असणे महत्त्वाचे असते. संहितेवर नोंदी करून त्या कलाकार व तंत्रज्ञाला त्याची कल्पना त्याला दयावी लागते.

नेपथ्यकार : नाटकातील स्थळ, काळ व कथानकाच्या दृष्टीने आवश्यक असणाऱ्या दृश्यांना योग्य पडदे, वस्तू यांची मांडणी नेपथ्यकार करतो. कलाकारांचे कपडे, विग्ज, झालरी व त्याला अनुरूप संगीत, प्रकाशयोजना या सर्व घटकांचा अंतर्भाव नेपथ्यामध्ये असतो. कथानकाला साहाय्य होईल अशी रंगमंचावरील वातावरणनिर्मिती म्हणजे नेपथ्य.

प्रकाशयोजना : प्रकाशयोजनेसाठी रंगमंचावर विविध साधनांचा उपयोग केला जाते. फ्लडलाइट्स, स्पॉटलाइट्स, डीमर इ. रात्रीच्या प्रसंगात रंगभूमीवर अंधार दाखवण्यासाठी डीमरचा उपयोग करतात. एखादया मुख्य कलाकाराचा प्रवेश (एण्ट्री) स्पॉटलाइटच्या मदतीने तसेच प्रवेशबदलाची सूचनादेखील प्रकाशयोजनेतून दिली जाते. पार्श्वसंगीतः कथानकातील प्रसंगांना अनुकूल, पात्रांची मनस्थिती अधोरेखित करण्यासाठी, नाटक गतिमान करण्यासाठी आणि वातावरणनिर्मितीसाठी नाटकातील पार्श्वसंगीताचा वापर केला जातो. यादृष्टीने ‘लेकुरे उदंड झाली’, ‘एका लग्नाची दुसरी गोष्ट’ यांचा उल्लेख करावा लागेल.

रंगभूषा : नाटकात रंगभूषेला फार महत्त्व आहे. नाटकातील व्यक्तिरेखेचे वय, स्वभाव या गोष्टी लक्षात घेऊन कलावंतांचा चेहरा रंगवणे म्हणजे रंगभूषा. लांबच्या प्रेक्षकांनासुद्धा नटांचा चेहरा व्यवस्थित दिसावा या दृष्टीने रंगभूषाकार काम करत असतो. त्यामुळे नाटकाच्या सादरीकरणात मेकअप, (रंगभूषा), वेशभूषा व केशभूषा या गोष्टीही महत्त्वाच्या आहेत. नाटकात निर्माण केलेल्या व्यक्तिरेखा कलावंत आपल्या संवादफेकीतून, आवाजातील चढ-उतारांतून, हावभावातून आपल्या अभिनयाद्वारे सशक्तपणे लोकांसमोर जिवंत करतात.

प्रेक्षक : या नाटकाचे सादरीकरण पाहण्यासाठी महत्त्वाचा असणारा घटक म्हणजे प्रेक्षकवर्ग यांच्या उपस्थितीत आणि त्यांनी दिलेल्या प्रतिसादानेच हा खेळ रंगत असतो. म्हणूनच नाटक हे एकाचे काम नसून तो एक सांघिक आविष्कारच म्हणता येईल. त्या सर्वांवर नाटकाची सफलता असते.

प्रश्न आ.
तुमच्या शब्दांत स्पष्ट करा.
1. नाटकाचे नेपथ्य
2. नाटकातील प्रकाशयोजनेचे महत्त्व
3. नाटकातील संवाद
4. नाटक अनेक कलांचा संगम
5. प्रारंभीच्या काळातील नाटकातील स्त्री व्यक्तिरेखा
उत्तरः
1. नाटकाचे नेपथ्य : नेपथ्य म्हणजे नाटकाच्या कथानकाला साहाय्यकारी ठरेल अशी रंगमंचावरील वातावरणनिर्मिती होय. हे नेपथ्य जो करतो तो नेपथ्यकार. कथानकातील स्थळ, काळ यांना सुसंगत ठरतील अशा वस्तू, नाटकातील नटांचे कपडे, त्यांना भूमिकेनुरूप लागणारे विग्ज, रंगमंचावर (स्टेजला) लागल्या जाणाऱ्या झालरी, प्रकाशयोजना आणि पोषक संगीत इत्यादी सर्व गोष्टींचा अंतर्भाव हा नेपथ्यामध्ये असतो. दृश्यांना, संवादांना अनुकूल अशी मांडणी नेपथ्यकार करतो.

2. नाटकातील प्रकाशयोजनेचे महत्त्व : प्रकाशयोजनेसाठी रंगभूमीवर विविध प्रकारची साधने वापरली जातात. प्रकाशयोजना हा नेपथ्याचाच भाग असतो. स्पॉट्स, फ्लडलाइट्स, फूटलाइट्स या सर्वच प्रकारच्या दिव्यांचा प्रकाश कमी-अधिक करण्यासाठी वापरल्या जाणाऱ्या विदयुत उपकरणाला ‘डीमर’ असे म्हटले जाते. नाटकात एखादा रात्रीचा प्रसंग दाखवायचा असेल तर या डीमरच्या साहाय्याने रंगभूमीवर संपूर्ण अंधार केला जातो. या प्रकाशयोजनेच्या माध्यमातून एखादया प्रवेशबदलाची सूचनादेखील देता येते.

3. नाटकातील संवाद : मानवी जीवनातील निरनिराळ्या अवस्थांचे, घटनांचे, प्रसंगांचे, त्यांमधील विविध भाव-भावनांचे, अनुकरण करणारे चित्रण म्हणजे नाटक. या चित्रणासाठी लागणारा सर्वात महत्त्वाचा घटक म्हणजे संवाद होत. लेखकाने लिहिलेले संवाद नाटकांतील पात्रांमार्फत प्रेक्षकांपर्यंत पोहोचवले जातात त्यामुळे प्रेक्षकांना नाटकाचा आनंद घेता येतो. खटकेबाज, चुरचुरीत, नर्मविनोदी संवाद नाटकाची रंगत वाढवून रसिक प्रेक्षकांच्या टाळ्याही घेतात. नाटकाच्या विषयाला साजेसे उत्तम संवाद नाट्यातील आशय अचूक पद्धतीने प्रेक्षकांपर्यंत पोहोचतात. पात्रांच्या संवादफेकीच्या शैलीमुळे नाटकाचा बाज प्रेक्षकांना समजतो.

4. नाटक अनेक कलांचा संगम : महाकवी कालिदासाने म्हटल्याप्रमाणे भिन्न भिन्न रुची असणाऱ्या लोकांचे एकाच वेळी समाधान करणारा नाटक हा श्रेष्ठ वाङ्मय प्रकार आहे. पूर्वी लळित, दशावतार, वगनाट्य, तमाशे असे मनोरंजनाचे प्रकार होते. यातूनच नंतर नाटक हा प्रकार उदयास आला जो समूहाचा आविष्कार असतो. नाटकाशी संगीत, नृत्य, वक्तृत्व, कलाकारांचा अभिनय, नेपथ्य, काव्य, चित्रकला, रंगभूषा अशा बहुतेक सर्व कला संबंधित आहेत. नाटक हे दृक-श्राव्य माध्यम असल्याने कथेनुरूप आलेल्या संगीत, नृत्य, काव्यात्म व अर्थपूर्ण संवाद यांचा अनुभव प्रेक्षकांना घेता येतो आणि त्यामुळे कथेचा आशय उत्तमरित्या प्रेक्षकांपर्यंत पोहोचतो.

अशा तहेने अनेक कलांचा संगम नाटकामध्ये झाला असल्याने त्यामध्ये रसिकांना खिळवून ठेवण्याची क्षमता असते. रंगमंचावरील सादरीकरणामुळे प्रेक्षकांना या कलांचा आस्वाद घेता येतो. त्यांच्या अनुभूतीने प्रेक्षकांच्या मनावरील ताण कमी होऊन त्यांचे रोजचे धकाधकीचे जीवन आनंदी व अर्थपूर्ण, समृद्ध करण्यात या कलांचे फार मोठे योगदान आहे असे म्हटल्यास वावगे ठरू नये. म्हणूनच नाटकाचा प्रेक्षक वर्ग फार मोठा आहे.

5. प्रारंभीच्या काळातील नाटकातील स्त्री व्यक्तिरेखा : नाटक रंगभूमीवर सादर होण्याच्या अगदी सुरुवातीच्या काळात अंधश्रद्धा, अनेक रूढी परंपरा, चालीरीती यांसारखे अनेक अडथळे होते. स्त्रीजीवन धर्मबंधनांमुळे जखडले होते. स्त्रियांकडे पाहण्याचा दृष्टिकोन वेगळा होता. विचारांचे स्वातंत्र्य नव्हते. पुरुषप्रधान संस्कृती असल्याने सामाजिक वातावरणही पोषक नव्हते. स्त्रियांना घराबाहेर पडण्याचेदेखील स्वातंत्र्य नव्हते. फक्त ‘चूल व मूल’ हेच तिचे आयुष्य होते. त्यामुळे नाटकात काम करणे ही तर फारच चौकटीबाहेरची गोष्ट होती. त्यामुळे स्त्रिया तयारही होत नसत. त्यासाठी घरच्यांची परवानगी मिळणे तर फारच कठीण. त्यामुळे नाटकातील स्त्री व्यक्तिरेखा या पुरुष पात्रेच साकारत असत. त्याकाळी नाटकातील कलावंतांना आजच्यासारखी प्रतिष्ठाही नव्हती. अशा परिस्थितीत बालगंधर्व यांनी अनेक नाटकांमध्ये स्त्री व्यक्तिरेखा सशक्तपणे साकारल्या आणि आजही त्यांच्या नाटकांतील पदे लोकांना भुरळ घालतात. त्यांच्या भूमिका त्यामुळेच अजरामर ठरलेल्या आहेत.

प्रश्न इ.
‘नाटक हा समाजाचे यथायोग्य दर्शन घडवणारा प्रयोगक्षम साहित्यप्रकार आहे’, या विधानाचा अर्थ स्पष्ट करा.
उत्तरः
लोकसंवाद व लोकरंजन या नाटकाच्या महत्त्वाच्या बाजू आहेत. लेखकाला जो विषय सांगायचा तो लोकांपर्यंत पोहोचवणे हा त्यातील महत्त्वाचा भाग आहे. नाटकांतून बदलत गेलेल्या समाजाचे चित्रण विविध विषयांतून झालेले दिसते आणि ही परंपरा फार जुनी आहे. त्या त्या काळातील वास्तव चित्रण नाटकातून होते. सामाजिक समस्या मांडल्या जातात. मानवी भाव-भावना, स्वभाव यांमधील विविध छटांचे दर्शन नाटकांतून होते. माणसाच्या आयुष्यातील अवतीभवती घडणाऱ्या अनेक प्रसंगांमधून प्रेरणा घेऊन नाटक साकार होते. पूर्वी समाजातील अनिष्ट रूढी परंपरा, हुंडा पद्धती, केशवपन इत्यादी सामाजिक ज्वलंत प्रश्न नाटकांच्या प्रयोगातून सादर केले जात. गोविंद बल्लाळ देवल यांच्या ‘संगीत शारदा’ या नाटकात जरठकुमारी विवाह या अनिष्ट प्रथेवर मार्मिक टीका केली आहे तर अनेक नाटकांनी बालविवाह, विधवा पुनर्विवाह, स्त्री शिक्षण यांसारखे विषय निवडून चांगले विचार लोकांमध्ये रुजवून त्यांचा प्रसार करून जनजागृतीचे काम केले आहे. नाटक या दृक-श्राव्य माध्यमातून मनोरंजनाच्या साथीने समाज जागृती घडवण्याचे काम खूप वर्षांपासून आजपर्यंत केले गेले आहे म्हणून नाटक हा समाजाचे यथायोग्य दर्शन घडवणारा प्रयोगक्षम साहित्य प्रकार आहे.

प्रश्न ई.
संगीत नाटकाचे स्वरूप व वैशिष्ट्ये स्पष्ट करा.
उत्तरः
संगीत नाटकाचे स्वरूप व वैशिष्ट्ये खालीलप्रमाणे :

• मनोरंजनाच्या माध्यमातून सामाजिक प्रश्नांवर ‘बोट’ ठेवले जाते.
• संगीत नाटकाची रचना ही रसिक प्रेक्षकांच्या आवडी-निवडी लक्षात घेऊन केलेली असते.
• संगीत नाटकांत संवाद कमी असून संगीतावर जास्त भर दिलेला असतो.
• संगीत नाटकातील संगीत व अभिनय यांमधून रसिक प्रेक्षकांना खिळवून ठेवण्याची क्षमता असते.
• शास्त्रीय संगीताचा भारदस्तपणा सांभाळणाऱ्या गाण्यांचा समावेश संगीत नाटकात असतो.
• संगीत नाटकाचे वैशिष्ट्य म्हणजे त्यातील वैविध्यपूर्ण गाणी.
• संगीत नाटकातील पदे ही आशयाला अनुरूप व कथानकाला वेग/गती देणारी असतात.
• लोकगायकी व ख्यालगायकी यांचा उत्तम मेळ साधणारे संगीत हे संगीत नाटकाचे महत्त्वपूर्ण वैशिष्ट्य होय.
• संगीत नाटकामध्ये गायकाला साथ-संगत करणाऱ्या सर्व कलावंतांचाही मोठा सहभाग असतो.
• आजदेखील मराठी नाटकांच्या इतिहासातील एक वैशिष्ट्यपूर्ण भाग म्हणून राष्ट्रीय पातळीवर संगीत नाटकाची ओळख आहे.

प्रश्न उ.
नाट्यसंहिता लिहिण्यासाठी आवश्यक अशा पूर्वतयारीच्या घटकांसंबंधी तुमचे मत स्पष्ट करा.
उत्तरः
नाटकात संहितेला महत्त्वाचे स्थान आहे. नाट्यसंहिता परिपूर्ण व दर्जेदार असेल तर नाटकाला हमखास यश मिळते. सशक्त कथानक नाटकाला वेगळ्या उंचीवर घेऊन जाते. नाटककार एक कथाबीज घेऊन त्याभोवती घटना व पात्र गुंफतो आणि कथानकात वैशिष्ट्यपूर्ण रचनेद्वारे नाटक रंगतदार करतो. त्यासाठी कथानक उत्तम असणे आवश्यक आहे. नाटककार आपल्या नाटकातून समाजातील सर्व स्तरांतील लोकांच्या जिव्हाळ्याचे विषय मांडतो. नाटकाचे ध्येय सामाजिक परिस्थितीचे दर्शन घडवणे असून ते घडवताना माणसांच्या मनातील भाव-भावना, स्वभाव लक्षात घेणे आवश्यक ठरते.

पात्रांच्या मनातील वृत्ती-प्रवृत्तींचे दर्शन होण्यासाठी स्वगताचा परिणामकारकरित्या वापर केलेला असतो. त्यासाठी नाटकातील कथानकाला अनुरूप पात्ररचना नाटककाराला करावी लागते. नाटकाचा तोल सांभाळला जाईल अशा पद्धतीने नाटकातील पात्रांच्या शाब्दिक चित्रणाची जबाबदारीसुद्धा नाटककाराला पार पाडणे आवश्यक असते. परस्परविरुद्ध स्वभाव, कृती व भाव-भावनांमधील तणाव यांमधून संघर्ष निर्माण होऊ शकतो.

कथानकातील आशयात संघर्ष येणे महत्त्वाचे. भूमिकांच्या परस्पर नात्यांमधील संघर्ष तसेच भूमिका व परिस्थिती यांमधील संघर्ष यामुळे नाटक परिणामकारक होऊन त्याची रंगत वाढते. त्यासाठी खटकेबाज, चुरचुरीत नर्मविनोदी संवादांची आवश्यकता असते. नाट्यातील आशय योग्य पद्धतीने प्रेक्षकांपर्यंत पोहोचवण्याचे काम नाटकातील संवाद करतात. कथानकामधील प्रसंग, दृश्य, काळ यांमधील बदलांसंबंधित सूचना कंसातील रंगसूचनांमधून नाटककार देतो त्यामुळे कथानकाचे अस्पष्ट दुवे जोडले जातात आणि त्यातील संदर्भ स्पष्ट झाल्यामुळे कथानकाचा प्रवाह सहजरित्या पुढे जातो.

आशयाला अनुरूप अशी भाषाशैली संपूर्ण नाट्यकृतीला उठाव देण्याचे काम करते. त्यातील भाषिक सौंदर्य संपूर्ण नाटकाला एका वेगळ्या उंचीवर नेऊन ठेवते. व्यावसायिक नाटकाचे स्वरूप व वैशिष्ट्ये तुमच्या शब्दांत स्पष्ट करा. उत्तरः व्यावसायिक नाटकाचे स्वरूप व वैशिष्ट्ये खालीलप्रमाणे आहेत.

• व्यावसायिक नाटकाच्या माध्यमाद्वारे सामाजिक प्रश्न मांडले जातात.
• व्यावसायिक नाटकांचे स्वरूप हे प्रामुख्याने बोधपर व मनोरंजनात्मक असते.
• एखादे गंभीर विषयावरील नाटक पाहतानासुद्धा प्रेक्षकांच्या मनावरील ताण कमी होण्यास मदत होईल याची काळजी व्यावसायिक रंगभूमी घेते.
• नाटक आणि प्रेक्षक यांच्यामध्ये एक प्रकारचे नाते तयार होते. व्यावसायिक नाटके ही कौटुंबिक, सामाजिक, पौराणिक आणि ऐतिहासिक विषयांवर अधिक प्रमाणात असतात.
• व्यावसायिक नाटकाची मांडणी प्रेक्षकांच्या आवडीनुसार केलेली असते.
• व्यावसायिक नाटकातील संवाद हे विनोद, उपहास, श्लेष व शाब्दिक कोट्या यांद्वारे प्रेक्षकांची करमणूक होईल असे असतात.
• व्यावसायिक नाटकाची निर्मिती बोध, मनोरंजन प्रेक्षकांना आवडणारी असून व्यावसायिक हेतूनेच झालेली असते.

प्रश्न ऊ.
व्यावसायिक नाटकाचे स्वरूप व वैशिष्ट्ये तुमच्या शब्दांत स्पष्ट करा.
उत्तरः
प्रायोगिक नाटकाचे स्वरूप व वैशिष्ट्ये पुढीलप्रमणे :

• प्रायोगिक नाटकामध्ये नाटकाची ठराविक चौकट मोडण्याचा प्रयत्न केलेला असतो.
• प्रायोगिक नाटकाच्या आकृतिबंधात नाविन्यपूर्णता असते.
• या नाटकांमध्ये आशय किंवा अभिव्यक्तीत स्वातंत्र्य घेतले जाते.
• स्थळ, काळ, रचना, नेपथ्य, अभिनय व तंत्र यांमध्ये जाणीवपूर्वक प्रयोग केले जातात.
• नाट्यबीज, नाट्यविषय, आशय व रचना त्याबरोबरच नाट्यप्रयोग, नेपथ्य यांमध्ये पारंपरिक नाटकापेक्षा वेगळेपणा या नाटकात दिसून येतो.
• प्रायोगिक नाटकात प्रतिकात्मकता आणि परिचित नसलेली सूचकता यांचा कौशल्याने वापर केलेला दिसतो.
• भाषिक प्रयोग केले जातात तसेच घटना सहज व नैसर्गिक करण्याकडे कल असतो.
• या नाटकांमधील संवाद बरेचदा बोलीभाषेप्रमाणे असतात.
• प्रायोगिक नाटकात आशयाला अनुरूप असणाऱ्या घटना, प्रसंगांवर भर दिलेला असतो.
• या नाटकामध्ये आपल्याला वाटते ते आपल्या पद्धतीने मांडायचे धाडस केलेले दिसते.

5. अभिव्यक्ती.

प्रश्न अ.
‘नाटक हा वाङ्मयप्रकार इतर वाङ्मय प्रकारांपेक्षा वेगळा आहे’, हे विधान स्पष्ट करा.
उत्तरः
नाटक हा कथा, कादंबरी, कविता यांप्रमाणे एक वाङ्मय / साहित्य प्रकार आहे. परंतु तो इतर वाङ्मय प्रकारांपेक्षा वेगळा आहे. बाकीचे साहित्यप्रकार हे वाचकनिष्ठ आहेत परंतु नाटक हा समूहाचा आविष्कार असतो. नाटकात संगीत, नृत्य, वक्तृत्व, अभिनय, नेपथ्य, काव्य, चित्रकला अशा बहुतेक सर्व कलांचा अंतर्भाव होतो. कथा कादंबऱ्यांमध्ये लेखक व वाचक हे दोनच घटक असतात पण नाटक या साहित्य प्रकाराच्या माध्यमातून लेखकाचे शब्द नट प्रेक्षकांपर्यंत पोहोचवत असतो. त्यामुळे प्रेक्षकांशी जिवंत संवाद घडत असतो. नाटक हे दृक-श्राव्य साहित्य प्रकार असून ते ऐकता, पाहता व वाचता येते. नाटक रंगमंचावर दिग्दर्शनाच्या मार्गदर्शनाखाली तंत्रज्ञानाच्या साहाय्याने, कलाकारांनी प्रेक्षकांसमोर सादर करायचे असते.

प्रश्न आ.
विदयार्थ्याला मिळालेल्या शालान्त परीक्षेतील उज्ज्वल यशाबाबत विदयार्थी-शिक्षक-पालक यांच्यातील संवाद लिहा.
उत्तरः
शिक्षक-पालक : कुणाल, शालांत परीक्षेत तू ९७.२०% मिळवून घवघवीत यश आज मिळवले आहेस. त्याबद्दल तुझे सर्वप्रथम मनःपूर्वक अभिनंदन! खूप आनंद झाला आहे ना.

कृती : १

स्वमत:

प्रश्न 1.
‘लोकसंवाद आणि लोकरंजन या नाटकाच्या महत्त्वाच्या बाजू आहेत याविषयी तुमचे मत स्पष्ट करा.
उत्तर :
नाटक ही आपल्या संस्कृतीमधील अगदी प्राचीन कला आहे. ज्याचे स्वतःचे शास्त्र आहे, अभ्यास आहे. एकाच वेळी अनेक विषयांना बांधून ठेवणारा हा साहित्य प्रकार आहे. या माध्यमातून एकाच वेळी अनेक लोकांशी संवाद घडतो. यातन लोकांशी संवाद साधता साधता त्यांचे मनोरंजन करता येते. जेव्हा जेव्हा समाजात काही बदल, घडामोडी होत असतात तर त्याचे प्रतिसाद मनुष्य स्वभावावर, मानवी जीवनांवर होत असतात.

त्यातून भावनिक, मानसिक, सामाजिक राजकीय संघर्ष होतात. त्याची दखल नाटकाचा नाटककार घेत असतो. त्या नाटकातून समाजात बदल टिपण्याचा प्रयत्न करत असतो. मात्र ते प्रेक्षकांसमोर पोहोचवताना तो सुखात्मिका वा शोकात्मिकेच्या आधारे ते पोहोचवेल. त्याकरता नट रंगमंचावर सादरीकरण करताना अभिनय करतो. कृती, संवाद, स्वगत, नेपथ्य, प्रकाशयोजना, रंगभूषा यांच्या आधारे नाटकातून लोकांशी संवाद साधल्याने केवळ मनोरंजन नाही तर प्रबोधनदेखील होते.

कृती : २.

प्रश्न 1.
प्रायोगिक नाटकाचा मुख्य हेतू → [ ]
उत्तरः
प्रायोगिक नाटकाचा मुख्य हेतू → नाटकाचा विषय आणि सादरीकरण यात प्रयोग करणे

कृती : ३.

प्रश्न 1.
चौकट पूर्ण करा.
नाट्यवाङ्मयात प्रायोगिकता या वर्षानंतर आली → [ ]
उत्तर :
नाट्यवाङ्मयात प्रायोगिकता या वर्षानंतर आली. → १९६०

उपयोजित कती

स्वमत:

प्रश्न 1.
‘आजच्या काळात करमणुकींचे विविध पर्याय उपलब्ध असतानाही नाटक जिवंत राहिले आहे’ या विधानाचा अर्थ तुमच्या शब्दांत लिहा.
उत्तर :
आजच्या काळात करमणुकीची विविध माध्यमे लोकप्रिय आहेत. दृकश्राव्य माध्यमात चित्रपट, डी.व्ही.डी., दूरचित्रवाणी, नाटक यांचा समावेश होतो. परंतु नाटक पाहणाऱ्या लोकांची संख्या आजदेखील लक्षणीय असण्याचे कारण म्हणजे समाजातील चालीरीती काळानुसार बदलल्या असल्या तरी माणसाचा स्वभाव, मानवी भावभावना या कायम राहिल्या आहेत. या मानवी भावभावना, स्वाभावांतील विविध छटांचे दर्शन प्रेक्षकाला नाटकातून घडते. नाटकांची निर्मिती ही मुख्यत: मनोरंजनाच्या हेतूने केली जात असली तरी प्रेक्षक स्वत:च्या अनुभवांचे नाटकात घडणाऱ्या प्रसंगांशी नाते जोडत असतो.

त्यामुळे नाटक हे त्याला आपले वाटते. मानवी जीवनातील नाट्य प्रेक्षकांना नाटकातून पहायला मिळते. नाटकाचे सादरीकरण रंगमंचावर होत असल्यामुळे प्रेक्षकांना त्याचा आनंद घेता येतो. त्यामुळे प्रेक्षकांना आत्मिक समाधान मिळते. जे इतर करमणुकीच्या माध्यमांतून मिळत नाही. प्रेक्षकांना आवडेल ते व तसे देण्याचा प्रयत्न नाटकातून केला जातो. त्यामुळे नाटकाच्या प्रेक्षकांची संख्या अधिक आहे आणि करमणुकीचे विविध पर्याय उपलब्ध असतानाही नाटक हा कलाप्रकार जिवंत राहिला आहे.

नाटक- साहित्यप्रकार-परिचय प्रास्ताविक :

ललित साहित्यप्रकारांमध्ये नाटक हा लोकप्रिय साहित्य प्रकार आहे. प्रत्येक व्यक्तीला स्वत:ला आलेल्या सुख–दु:खाचा अनुभव सर्वांना सांगावासा वाटतो. त्यातूनच साहित्यनिर्मिती होते. लेखकाला प्रतिपादन करायचा विषय लोकांपर्यंत पोहोचवणे हा नाटकातील महत्त्वाचा भाग असून नाटकाच्या माध्यमातून प्रेक्षकांशी जिवंत संवाद घडत असतो. लोकसंवाद व लोकरंजन या नाटकाच्या महत्त्वाच्या बाजू असतात. मानवी भाव–भावना स्वभाव तसेच समाजाचेही वास्तव दर्शन नाटकांतून होते. नाट्य हा नाटकाचा प्राण आहे. नाटक दृक–श्राव्य साहित्य प्रकार असून ते कलाकारांनी रंगमंचावर सादर करायचे असते. भरतमुनी यांना भारतीय नाट्यकलेचे जनक असे म्हटले जाते. नाटकाविषयी सखोल माहिती करून देणारा नाट्यशास्त्र हा ग्रंथ त्यांनी लिहिला.

नाट्यसंहितेचे स्वरूप :

नाट्यसंहिता परिपूर्ण, दर्जेदार असेल तर नाटकाचे यश खात्रीदायक. सशक्त कथानक नाटकाला एका वेगळ्या उंचीवर नेते. नाटककार एक कथाबीज घेऊन त्याभोवती घटना व पात्र गुंफतो. वैशिष्ट्यपूर्ण रचनेने तो नाटकात रंगत आणतो. नाटकातील कथानकाला अनुरूप पात्ररचना नाटककार करतो. कथानकातील आशयात संघर्षामुळे रंगत येते. भूमिकांच्या परस्पर नात्यांतील संघर्ष, परिस्थिती व भूमिका यांमधील संघर्षामुळे नाटक परिणामकारक होते. नाटकातील महत्त्वाचा घटक म्हणजे संवाद. नाट्यकृतीतील आशय योग्य रितीने प्रेक्षकांपर्यंत पोहोचवण्याचे काम संवाद करतात. संवाद, रंगसूचना व स्वगत या त्रयींनी नाट्यसंहिता तयार होते.

नाटक या साहित्यप्रकाराचे वेगळेपण :

कथा, कादंबरी, कविता या साहित्यप्रकारांपेक्षा नाटक हा प्रकार वेगळा आहे. नाटक हा सामूहिक आविष्कार आहे तर इतर साहित्य प्रकारांमध्ये फक्त लेखक व वाचक हे दोन घटक असतात. विष्णुदास भावे यांचे ‘सीतास्वयंवर’ हे आधुनिक मराठी नाटकांतील पहिले नाटक तर महात्मा फुले लिखित ‘तृतीयरत्न’ ही लेखन स्वरूपातील पहिली नाट्यसंहिता होय. त्याआधी लळित, गोंधळ, कीर्तन, पोवाडे, दशावतार, तमाशा अशा अनेक कला होत्या ज्या नाटकाच्या उदयास पूरक ठरल्या.

संगीत नाटक :

अण्णसाहेब किर्लोस्करांच्या ‘संगीत शाकुंतल’ व ‘संगीत सौभद्र’ या नाटकांनी भाषासौष्ठव, पात्र हाताळणी, नाट्यमयता, नाट्यतंत्र व स्वाभाविक संवाद या सर्व बाबतील एक मापदंड तयार केला. संगीताचा वापर हा त्यांतील महत्त्वाचा घटक होता.

संगीत नाटकाचे स्वरूप व वैशिष्ट्ये :

या नाटकांमध्ये मनोरंजनाच्या माध्यमातून सामाजिक प्रश्न मांडले जातात. यात संवाद तुलनेने कमी असून अभिनय व संगीत यांच्याद्वारे रसिकांना खिळवून ठेवले जाते. या नाटकांमध्ये शास्त्रीय संगीताचा समावेश असतो. आशयानुरूप व कथानकाला पुढे नेणारी यातील पदे असतात. विविधतापूर्ण गाणी हे या नाटकाचे वैशिष्ट्य असून लोकगायकी व ख्यालगायकी यांचा उत्तम संयोग यांतील संगीतात असतो. गायक व कलावंत यांचा फार मोठा सहभाग या नाटकांमध्ये असतो. १९०० सालच्या कृष्णाजी प्रभाकर खाडिलकर लिखित संगीत मानापमान या नाटकाला गोविंदराव टेंबे यांचे संगीत होते.

यातूनच संगीत दिग्दर्शक ही संकल्पना पुढे आली. त्या काळातील ‘किर्लोस्कर नाटक मंडळी’, ‘बळवंत नाटक मंडळी’ व ‘बालगंधर्व नाटक मंडळी’ यांनी संगीत नाटकाला समृद्धता प्राप्त करून दिली. त्या काळात अंधश्रद्धा, रूढी, परंपरा यांमुळे स्त्रिया नाटकात काम करण्यासाठी तयार नसत त्यामुळे नाटकातील स्त्री व्यक्तिरेखा पुरुष पात्र साकारत. बालगंधर्वांनी साकारलेल्या स्त्री व्यक्तिरेखा मात्र आजदेखील अजरामर ठरलेल्या आहेत.

प्रायोगिक नाटक :

नाटकाचा विषय व सादरीकरण यांत प्रयोग करणे हा या नाटकांचा मुख्य हेतू. आशय व अभिव्यक्तीमध्ये जाणीवपूर्वक प्रयोग करत राहणे प्रायोगिक नाटकात अपेक्षित असते. काळ बदलला, प्रसारमाध्यमांमध्ये वाढ झाली, करमणुकीचे इतरही पर्याय उपलब्ध झाले. तिकिटांचे दर सर्वसामान्यांना न परवडणारे झाले. त्यामुळे संगीत नाटक मागे पडत गेले व प्रायोगिक तसेच व्यावसायिक नाटकांना सुरुवात झाली.

प्रायोगिक नाटकांचे स्वरूप व वैशिष्ट्ये :

या नाटकांमध्ये नाटकाची ठराविक चौकट मोडली जाते. आकृतिबंधात नाविन्यपूर्णता असून आशय व अभिव्यक्तीत स्वातंत्र्य घेतले जाते. स्थळ, काळ, रचना, नेपथ्य, अभिनय व तंत्र यांत जाणीवपूर्वक बदल केलेला असतो. नाटकांचे बीज, नाटकाचा विषय, आशय, रचना, नेपथ्य यामध्ये पारंपरिक नाटकापेक्षा वेगळेपणा असतो. भाषिक प्रयोग केले जातात. या नाटकांतील संवाद बरेचसे बोलीभाषेत असतात. या नाटकांमध्ये आशयानुरूप होणारे प्रसंगांचे प्रमाण अधिक असते. आपल्याला वाटणारे, आपल्या पद्धतीने या नाटकात मांडता येते.

व्यावसायिक नाटक :

व्यावसायिक मराठी रंगभूमीला शतकाहून अधिक काळाची परंपरा आहे. हे नाटक व्यावसायिक हेतूने लिहिले जाते व त्याच हेतूने नाटकाचा प्रयोग केला जातो. समाजातील समस्या घेऊन अनेक व्यावसायिक नाटके निर्मिली गेली.

व्यावसायिक नाटकाचे स्वरूप व वैशिष्ट्ये :

या नाटकांच्या माध्यमातून तत्कालीन समस्या मांडल्या जातात. व्यावसायिक नाटकांचे स्वरूप मनोरंजनात्मक असते. नाटक व प्रेक्षक यांच्यात एका नात्याची निर्मिती होते. कौटुंबिक, सामाजिक, पौराणिक व ऐतिहासिक विषयांवर व्यावसायिक नाटकांची निर्मिती होते. विनोद, उपहास, शाब्दिक कोट्या यांद्वारे प्रेक्षकांची करमणूक होणारे संवाद या नाटकात असतात. नाट्यप्रयोग हे एक सांघिक कार्य आहे.

नाटक लिहिणारे, अभिनय करणारे कलावंत, तंत्रज्ञ, नेपथ्य, संगीत, प्रकाशयोजना, रंगभूषाकार आणि महत्त्वाचे म्हणजे प्रेक्षक आणि या नाटकांचे समीक्षक या सर्वांच्या एकत्रित प्रयत्नातून नाटक साकार होते. या सर्वांच्या सहकार्यावर प्रयोगाची यशस्विता अवलंबून असते. पडदयामागच्या कलाकारांचीही यात महत्त्वाची भूमिका असते. नाटक या साहित्यप्रकाराची व्याप्ती व इतिहास खूप मोठा आहे.

समानार्थी शब्द/पर्यायी शब्द :

प्रवृत्ती – स्वभाव (nature), परिचय – ओळख (introduction), संहिता – कथानक (script), आधुनिक – सध्याचे (modern), आस्वाद – चव, रुची (flavour, taste), खर्चिक – महागडा (expensive), प्राचीन – जुने (ancient, primitive).

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 12 Correspondence with Statutory Authorities Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 12 Correspondence with Statutory Authorities

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
_____________ is the main authority to regulate the administration of Companies Act, 2013 in India.
(a) MCA
(b) Company Secretary
(c) Board of Directors
Answer:
(a) MCA

Question 2.
The headquarters of MCA is at _____________
(a) Mumbai
(b) New Delhi
(c) Pune
Answer:
(b) New Delhi

Question 3.
To administer the provisions of the Companies Act, 2013 is the objective of _____________
(a) MCA
(b) ROC
(c) Directors
Answer:
(a) MCA

Question 4.
_____________ is responsible for registering companies.
(a) ROC
(b) SEBI
(c) Auditors
Answer:
(a) ROC

Question 5.
The Certificate of Incorporation is issued by _____________
(a) ROC
(b) MCA
(c) NCLT
Answer:
(a) ROC

Question 6.
_____________ can strike off or remove the name of a company from the Register of Companies.
(a) MCA
(b) ROC
(c) SEBI
Answer:
(b) ROC

Question 7.
Central Government exercises administrative control over ROCs through the _____________
(a) MCA
(b) SEBI
(c) Regional Directors
Answer:
(c) Regional Directors

Question 8.
_____________ is the quasi-judicial body set up by the Central Government to grant certain approvals and decide disputes under the provisions of the Companies Act.
(a) MCA
(b) ROC
(c) NCLT
Answer:
(c) NCLT

Question 9.
_____________ can hear appeals against the orders issued by NCLT.
(a) NCLAT
(b) SEBI
(c) MCA
Answer:
(a) NCLAT

Question 10.
An appeal against the order of NCLAT can be filed in the _____________
(a) MCA
(b) SEBI
(c) Supreme Court
Answer:
(c) Supreme Court

Question 11.
_____________ was established as a statutory body to regulate the securities market in India.
(a) NCLT
(b) MCA
(c) SEBI
Answer:
(c) SEBI

Question 12.
_____________ regulates the functioning of Stock Exchange in India.
(a) SEBI
(b) MCA
(c) ROC
Answer:
(a) SEBI

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Administration of Companies Act, 2013	(1) SEBI
(b) ROC	(2) Hears appeals against orders of NCLT
(c) NCLAT	(3) NCLT
(d) Regulator of Securities Market	(4) Incorporation of companies
(e) Quasi-judicial body	(5) MCA
	(6) Board of directors
	(7) Companies Act 2013
	(8) Regional Director
	(9) Chennai
	(10) Liquidator

Answer:

Group ‘A’	Group ‘B’
(a) Administration of Companies Act, 2013	(5) MCA
(b) ROC	(4) Incorporation of companies
(c) NCLAT	(2) Hears appeals against orders of NCLT
(d) Regulator of Securities Market	(1) SEBI
(e) Quasi-judicial body	(3) NCLT

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
The main authority is concerned with the administration of the Companies Act.
Answer:
MCA

Question 2.
The organization is responsible for administering the Companies Act and regulating professional bodies like ICAI, ICSI, etc.
Answer:
MCA

Question 3.
The authority which issues Certificate of Incorporation to company.
Answer:
ROC

Question 4.
Every company has to apply for incorporation to this authority situated in the state where its head office is to be located.
Answer:
ROC

Question 5.
The authority that handles corporate civil disputes in India.
Answer:
NCLT

Question 6.
An appeal against the orders of NCLT is heard by this authority.
Answer:
NCLAT

Question 7.
Regulator of the securities market in India.
Answer:
SEBI

Question 8.
An institution that regulates the functioning of stock exchanges and intermediaries in the securities market.
Answer:
SEBI

1D. State whether the following statements are True or False.

Question 1.
MCA regulates the functioning of the corporate sector as well as administers the Companies Act.
Answer:
True

Question 2.
MCA has no supervisory authority over professional bodies like ICSI, ICAI, etc.
Answer:
False

Question 3.
ROC is concerned with the registration of companies.
Answer:
True

Question 4.
On payment of fees, ROC allows the public to inspect certain documents filed with it.
Answer:
True

Question 5.
NCLT has jurisdiction over proceedings on matters of disputes arising under the Companies Act.
Answer:
True

Question 6.
NCLAT can hear appeals against the order of NCLT.
Answer:
True

Question 7.
NCLAT may confirm, modify or reject the orders passed by the NCLT.
Answer:
True

Question 8.
SEBI protects the interest of investors in the securities market.
Answer:
True

Question 9.
ROC is the regulator of the securities market.
Answer:
False

1E. Complete the sentences.

Question 1.
Administration of Companies Act and other laws related to corporate world is the responsibility of _____________
Answer:
MCA (Ministry of Corporate Affairs)

Question 2.
Registration of companies is done by _____________
Answer:
ROC (Registrar of Companies)

Question 3.
The authority which handles corporate civil disputes is called as _____________
Answer:
NCLT (National Company Law Tribunal)

Question 4.
The authority which hears appeals against the orders of NCLT is called as _____________
Answer:
NCLAT (National Company Law Appellate Tribunal)

1F. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Regulator of Securities Market	……………………….
(2) MCA	……………………….
(3) ……………………	Hears appeals against orders of NCLT

(NCLAT, Administers Companies Act, SEBI)
Answer:

Group ‘A’	Group ‘B’
(1) Regulator of Securities Market	SEBI
(2) MCA	Administers Companies Act
(3) NCLAT	Hears appeals against orders of NCLT

1G. Answer in one sentence.

Question 1.
Name the authority which administers the Companies Act and Partnership Act.
Answer:
MCA (Ministry of Corporate Affairs).

Question 2.
Name the authority attached to the High Court which helps in the winding up of companies.
Answer:
The authority attached to the High Court which helps in the winding up of Companies is the Official Liquidator.

1H. Correct the underlined word and rewrite the following sentences.

Question 1.
ROC supervises and controls the operations of stock exchanges in India.
Answer:
SEBI supervises and controls the operation of stock exchanges in India.

Question 2.
An appeal can be made against the order issued by NCLT to NCLAT within 90 days.
Answer:
An appeal can be made against the order issued by NCLT to NCLAT within 45 days.

2. Explain the following terms/concepts.

Question 1.
Ministry of Corporate Affairs (MCA)
Answer:

• The MCA is primarily concerned with the administration of the Companies Act, 2013.
• The MCA is responsible to prevent practices from having an adverse effect on competition, to promote and sustain competition in markets.
• MCA supervises certain professional bodies like the Institute of Chartered Accountants of India. (ICAI), Institute of Company Secretaries of India (ICSI), Institute of Cost Accountants of India.
• It works with the help of Regional Directors, ROC, and Official Liquidator.

Question 2.
Registrar of Companies (ROC)
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India.

• At present 22 Registrar of Companies is operating in all major states.
• States like Tamilnadu and Maharashtra have more than one ROC.
• ROC is a full-time field officer who has wide powers and responsibilities in administering the Companies Act.
• ROC has to examine various documents filed with it by the companies in compliance with the Companies Act, 2013.
• The ROC has to take decisions on documents filed with it and reply within 30 days from the date of filing the documents.

Question 3.
National Company Law Tribunal (NCLT)
Answer:

• The Central Government has constituted National Company Law Tribunal in June 2016.
• It is a quasi-judicial body, which grants approvals and handles Corporate Civil Disputes.
• The Tribunal operates through 15 ‘Benches’ consisting of 2 members i.e. a judicial member and a technical member.
• The Tribunal has to dispose of every application or petition within 3 months of receiving it.
• An appeal against the order of NCLT can be made to National Company Law Appellate Tribunal (NCLAT).

Question 4.
National Company Law Appellate Tribunal (NCLAT)
Answer:
National Company Law Appellate Tribunal was constituted for hearing appeals against the orders of the National Company Law Tribunal.

• NCLAT is also the Appellate Tribunal for hearing appeals against the order passed by the Insolvency and Bankruptcy Board of India.
• It is headed by a chairperson and has a maximum of 11 members comprising of judicial and technical members.
• An appeal can be made against the order issued by NCLT to NCLAT within 45 days.
• An appeal can be made against the orders of NCLAT to Supreme Court within 60 days.

Question 5.
Securities and Exchange Board of India (SEBI)
Answer:

• SEBI was established in 1992 as a statutory body to regulate the Securities Market in India.
• Its head office is in Mumbai.
• It supervises and controls the operations of Stock Exchanges, Companies issuing securities, and other intermediaries like Underwriters, Merchant Bankers, Brokers, etc.
• It protects and safeguards the interest of the investors in the security market.
• The main objective is to regulate the functioning of securities markets and stock exchanges.
• It develops a code of conduct for fair practices by intermediaries.

3. Answer in brief.

Question 1.
State the powers of ROC.
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India. At present 22 Registrar of Companies is operating in all the major states. States like Tamilnadu and Maharashtra have more than one ROC. ROC is a full-time field officer who has wide powers and responsibility in administering the Companies Act.

Following are the powers of ROC:

• To extend the time of the Annual General Meeting other than the first AGM by a period not more than 3 months.
• To inspect or call for books of account, other books, and papers.
• To seek in writing any information or explanation with regard to any document furnished to ROC.
• Seek the Special Court to issue an order for seizure of books and papers of the company, if the ROC feels that such records may be destroyed, altered, or falsified.
• To strike off the name of a company from the Registrar of Companies.

Question 2.
State the powers of NCLT.
Answer:
Meaning of NCLT:
The Central Government has constituted National Company Law Tribunal in June 2016. The NCLT is a quasi-judicial body, which grants approvals and handles Corporate Civil disputes.

Powers of NCLT:

• To hear and decide all proceedings related to compromise, arrangement, and reconstruction of a company.
• To hear and decide all winding up petitions on the ground of inability to pay its debts and on other grounds.
• To hear and decide petition for an extension of time for repayment of deposits.
• To hear and decide cases pertaining to oppression and mismanagement of a company.
• To call for holding AGM or EOGM of a company.
• To direct a company not to dispose of funds of a company and to freeze the assets of a company for being used against the interest of the company.
• To hear and decide grievances of rejection in transferring shares and securities.

Question 3.
What are the objectives of MCA?
Answer:
The MCA is primarily concerned with the administration of the Companies Act, 2013.
It frames the rules and regulations for regulating the functioning of the corporate sector in accordance with the law.

Objectives of MCA:

• To administer the provisions of the Companies Act, 2013, and other allied laws.
• To quickly identify non-compliance with the Companies Act.
• To encourage companies to improve Corporate Governance and adopt responsible business practices.
• To promote fair competition.
• To make available to the public, corporate data.
• To offer various services to the stakeholders.

4. Justify the following statements.

Question 1.
The MCA was set up by Central Government to fulfill certain objectives.
Answer:
The MCA is primarily concerned with the administration of the Companies Act, 2013.
It frames the rules and regulations for regulating the functioning of the corporate sector in accordance with the law.

Objectives of MCA:

• To administer the provisions of the Companies Act, 2013, and other allied laws.
• To quickly identify non-compliance with the Companies Act.
• To encourage companies to improve Corporate Governance and adopt responsible business practices.
• To promote fair competition.
• To make available to the public, corporate data.
• To offer various services to the stakeholders.

Question 2.
The Companies Act, 2013 has given certain Powers to ROC.
Answer:
The Registrar of Companies (ROC) is an office under the Ministry of Corporate Affairs (MCA) which deals with the administration of Companies and Limited Liability Partnerships in India. At present 22 Registrar of Companies is operating in all the major states. States like Tamilnadu and Maharashtra have more than one ROC. ROC is a full-time field officer who has wide powers and responsibility in administering the Companies Act.

Following are the powers of ROC:

• To extend the time of the Annual General Meeting other than the first AGM by a period not more than 3 months.
• To inspect or call for books of account, other books, and papers.
• To seek in writing any information or explanation with regard to any document furnished to ROC.
• Seek the Special Court to issue an order for seizure of books and papers of the company, if the ROC feels that such records may be destroyed, altered or falsified.
• To strike off the name of a company from the Registrar of Companies.

Question 3.
The Central Government has empowered NCLT with certain powers.
Answer:
Meaning of NCLT:
The Central Government has constituted National Company Law Tribunal in June 2016. The NCLT is a quasi-judicial body, which grants approvals and handles Corporate Civil disputes.

Powers of NCLT:

• To hear and decide all proceedings related to compromise, arrangement, and reconstruction of a company.
• To hear and decide all winding up petitions on the ground of inability to pay its debts and on other grounds.
• To hear and decide petition for an extension of time for repayment of deposits.
• To hear and decide cases pertaining to oppression and mismanagement of a company.
• To call for holding AGM or EOGM of a company.
• To direct a company not to dispose of funds of a company and to freeze the assets of a company for being used against the interest of the company.
• To hear and decide grievances of rejection in transferring shares and securities.

5. Attempt the following.

Question 1.
Write a letter to ROC seeking an extension of time to hold the AGM.
Answer:

STARTRACK LIMITED Registered Office: Galaxy House Rainbow Township, Mira Road, Mumbai – 400609 CIN: L13471 MH 2012 PLC 000222 Phone: 022-22135649, 91-9910190332 Website: www.startracklimited.com Email: startrack@limited.com Date: 30th July 2019. Ref No: ROC/AGM – 99. The Registrar of Companies Churchgate, Mumbai – 400019. Sub: Extension of time for holding 6th Annual General Meeting. Dear Sir, As per the Companies Act, 2013, our Company must hold its 6th Annual General Meeting on or before 30th September 2019, for the financial year ending on 31st March 2019 We are extremely sorry to inform, that due to most of our directors are on travel abroad during that period, we will not be able to hold the Annual General Meeting before 30th September 2019. We, therefore, request you to grant us an extension period of two months for holding the said AGM i.e. up to 30th November 2019. We will be highly obliged if you grant us the permission to extend the said meeting. Thanking you, Yours faithfully, for STAR TRACK LIMITED. Sign Company Secretary Encl: Copy of Annual Report 2017-18.

Question 2.
Write a letter to MCA with regard to ‘Ticket Raising’.
Answer:

STARTRACK LIMITED Registered Office: Galaxy House Rainbow Township, Mira Road, Mumbai – 400609 CIN: L13471 MH 2012 PLC 000222 Phone: 022-22135649, 91-9910190332 Website: www.startracklimited.com Email: startrack@limited.com Date: 1st April 2019. Ref No: MCA/ST – 19 The Manager (Web-service Dept) Vaibhav Apartment, Vaibhav Nagar, New Delhi – 110003 Sub: Difficulty in downloading e-form. Dear Sir, This is to inform you that company is intending to download e-form (Form SH-7) to intimate the ROC about the alteration made in the share capital of our company. However, we are not able to download the form due to some technical error, and the message that pops up on pressing the ‘ENTER’ button is “The file is damaged and cannot be repaired”. In spite of our repeated effort, we are not able to download the form. So we earnestly request you to look into the matter at your earliest. Also, let us know the next step to resolve the above matter. Thanking you, Yours faithfully, for STAR TRACK LIMITED. Sign Company Secretary Encl: Copy of message as appearing on the website.

Question 3.
Write a reply to a complaint by the Investor.
Answer:

STARTRACK LIMITED Registered Office: Galaxy House Rainbow Township, Mira Road, Mumbai – 400609 CIN: L13471 MH 2012 PLC 000222 Phone: 022-22124745, 91-9920380555 Website: www.startracklimited.com Email: startrack@limited.com Date: 2nd June 2019. Ref No: IC/ 219. Ms.Vaishali Rane, Birla House, Bhagwati Road, Kandivli (W). Mumbai – 400018. Sub: Non-Receipt of Annual Report. Dear Sir, We are in receipt of your letter dated 20th May 2019 regarding the non-receipt of the Annual Report. As per the Companies Act, 2019, we have sent by post to all the members, the notice of 8th AGM along with the Annual Report well in advance, as per the address provided by you in our Register of Members. It is however unfortunate to know that you have not received the Notice and the Annual report. We are once again sending you the same to the address mentioned in your letter. Yours faithfully, for STAR TRACK LIMITED Sign Company Secretary Encl: Annual Report 2018-19 CC to: SEBI

Question 4.
Write a letter to NCLT seeking an extension of time to repay Public Deposits.
Answer:

STARTRACK LIMITED Registered Office: Galaxy House Rainbow Township, Mira Road, Mumbai – 400609 CIN: L13471 MH 2012 PLC 000222 Phone: 022-22135649, 91-9910190332 Website: www.startracklimited.com Email: startrack@limited.com Date: 30th July 2019. Ref No: NCLT/99 The National Company Law Tribunal Board. ‘C’ wing, 25th Floor, Priyadarshini Bhavan, M.G. Road, New Delhi – 110004. Sub: Extension of time to repay Pubic Deposit. Sir, The company had accepted Public Deposits worth 20 lacs on 1st April 2016 for a period of two years. The Deposits are to be repaid on or before 31st March 2018. However, as the company is passing through financial problems, we are is unable to repay deposits on the above-mentioned date. The board held a meeting on 29th December 2017 and passed a resolution for seeking an extension from NCLT for a period of three months, to repay deposits. Therefore, we request you to grant us an extension for three months to repay it. Copy of the petition is attached in two sets. We assure you that the company will pay the deposits on or before 30th June 2019. Yours faithfully, for STAR TRACK LIMITED Sign Company Secretary Encl: Certified copy of Board Resolution. Petition for Extension of time. Challan for fees paid.

 

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 11 Correspondence with Banks Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 11 Correspondence with Banks

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A company usually opens _____________ account in a bank.
(a) Current
(b) Saving
(c) Recurring
Answer:
(a) Current

Question 2.
Bank is a _____________ institution.
(a) financial
(b) social
(c) cultural
Answer:
(a) financial

Question 3.
The appointment of banker is usually made by the _____________
(a) Board of Directors
(b) Secretary
(c) Chairman
Answer:
(a) Board of Directors

Question 4.
Resolution for opening Bank Account is passed in the _____________ meeting.
(a) Board
(b) Statutory
(c) Annual General
Answer:
(a) Board

Question 5.
Bank provides overdraft facility to _____________ account holder.
(a) Current
(b) Saving
(c) Fixed Deposit
Answer:
(a) Current

Question 6.
_____________ is used for depositing cash into a bank account.
(a) Pay-in-slip
(b) Withdrawal slip
(c) Cheque
Answer:
(a) Pay-in-slip

Question 7.
Borrowing/Accepting and lending money are considered as _____________ functions of bank.
(a) Primary
(b) Secondary
(c) Agency
Answer:
(a) Primary

Question 8.
Withdrawals are not permitted from the _____________ deposit account.
(a) Fixed
(b) Current
(c) Savings
Answer:
(a) Fixed

Question 9.
_____________ account is suitable to salaried people.
(a) Savings
(b) Current
(c) Fixed
Answer:
(a) Savings

Question 10.
Generally Interest is not paid on _____________ deposit account.
(a) Current
(b) Saving
(c) Fixed
Answer:
(a) Current

Question 11.
A deposit which is kept for fixed period in bank is called _____________ deposit.
(a) Fixed
(b) Current
(c) Recurring
Answer:
(a) Fixed

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Lost cheque	(1) Board of Directors
(b) Appointment of Banker	(2) Higher rate of interest
(c) Cash credit	(3) Used for depositing cash and cheque
(d) Fixed Deposit Account	(4) Stop Payment
(e) Savings Account	(5) Restrictions on withdrawals
(f) Pay-in-slip	(6) Separate Account
(g) Overdraft facility	(7) Current Account
	(8) Recurring Account
	(9) Shareholders
	(10) No interest is paid
	(11) Used for withdrawing amount from the account
	(12) Long term credit facility
	(13) Certain restrictions on withdrawals
	(14) Dealing in foreign exchange

Answer:

Group ‘A’	Group ‘B’
(a) Lost cheque	(4) Stop Payment
(b) Appointment of Banker	(1) Board of Directors
(c) Cash credit	(6) Separate Account
(d) Fixed Deposit Account	(2) Higher rate of interest
(e) Savings Account	(5) Restrictions on withdrawals
(f) Pay-in-slip	(3) Used for depositing cash and cheque
(g) Overdraft facility	(7) Current Account

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A slip is used for depositing cash and cheque in the Bank account.
Answer:
Pay-in-slip

Question 2.
Permission to withdraw excess amount from Current Account.
Answer:
Overdraft

Question 3.
Separate loan account under which the short-term loan facility is given by the bank to the business.
Answer:
Cash credit

Question 4.
The short-term credit facility is given by the bank to the current account holder.
Answer:
Overdraft

Question 5.
The account is generally opened by the business organization.
Answer:
Current Account

Question 6.
The request of Secretary to the bank not to make the payment of the cheque.
Answer:
Stop payment request

Question 7.
The type of account for which a higher rate of interest is paid to bank depositors.
Answer:
Fixed Deposit Account

Question 8.
The slip is used for withdrawing money from Savings Account.
Answer:
Withdrawal Slip

Question 9.
Negotiable Instrument which can be discounted with the bank.
Answer:
Bill of exchange

1D. State whether the following statements are True or False.

Question 1.
Joint Stock Company opens Current Account.
Answer:
True

Question 2.
Generally, no interest is paid by the bank on the Current Account.
Answer:
True

Question 3.
In cash credit, the customer’s account is credited by the bank with the sanctioned amount.
Answer:
True

Question 4.
Board resolution is not required to open the Current Account with the bank.
Answer:
False

Question 5.
The bank account of the company is operated by shareholders.
Answer:
False

Question 6.
Overdraft facility is granted to Savings account holders.
Answer:
False

Question 7.
Bank correspondence should be brief and to the point.
Answer:
True

Question 8.
It is necessary to instruct the bank to stop the payment of a cheque that is lost.
Answer:
True

Question 9.
A bank overdraft facility is a long-term facility.
Answer:
False

Question 10.
Banks grant long-term loans only.
Answer:
False

1E. Find the odd one.

Question 1.
Saving Deposit, Recurring Deposit, Cash Credit. Fixed Deposit
Answer:
Cash Credit

Question 2.
Overdraft, Fixed Deposit, Discounting of Bills, Cash Credit
Answer:
Fixed Deposit

1F. Complete the sentences.

Question 1.
A financial institution which receives deposits and lends money is called as _____________
Answer:
Bank

Question 2.
Accepting deposits and lending money are the primary functions of _____________
Answer:
Commercial Bank/Bank

Question 3.
A facility under which a customer can overdraw money from his account is called as _____________
Answer:
Overdraft facility

Question 4.
Overdraft facility is given to _____________
Answer:
Current Account Holder

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Overdraft	…………………………
(2) Primary Function	………………………..
(3) International Trade Transactions	………………………..
(4) ………………………	Current Account

(Accepting Deposits, Current Account, Letter of Credit, Businessman)
Answer:

Group ‘A’	Group ‘B’
(1) Overdraft	Current Account
(2) Primary Function	Accepting Deposits
(3) International Trade Transactions	Letter of Credit
(4) Businessman	Current Account

1H. Answer in one sentence.

Question 1.
What is a Letter of Credit?
Answer:
A letter of credit is a payment method generally used for international trade transactions. Letter of credit is issued by a bank on behalf of its client, promising to pay a certain amount of money to the seller, in case the buyer fails to pay it.

Question 2.
Which facility is given to the Current Account holder?
Answer:
Overdraft facility is given to Current Account Holder by the Bank.

Question 3.
What do you mean by stop payment of cheque?
Answer:
When a cheque is issued by the company, there is a possibility of misplacement of the cheque or loss in transit. Then it is necessary to inform the bank to stop payment of such cheque.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Accepting deposits is the secondary function of Banks.
Answer:
Accepting deposits is the primary function of Banks.

Question 2.
Businessman opens Fixed Deposit Account.
Answer:
Businessman opens Current Account.

Question 3.
Under cash credit facility businessman/account holder can overdraw from his account.
Answer:
Under an overdraft facility, a businessman/account holder can overdraw from his account.

2. Explain the following terms/concepts.

Question 1.
Bank
Answer:
A bank is a financial institution, in which people deposit their idle or surplus cash, and those who need funds borrow from banks.

Question 2.
Demand Deposits
Answer:
The deposits which are repayable on demand are called Demand Deposits.

Question 3.
Time Deposits
Answer:
The deposits which are not repayable on demand are called Time Deposits.

Question 4.
Savings Deposits
Answer:
To encourage saving habit among the people, the bank allows depositors to open a savings account. There are restrictions on the frequency and amount of withdrawals.

Question 5.
Current Deposits
Answer:
This account is normally opened by businessmen, firms, or companies. There is no limit on the amount or number of withdrawals.

Question 6.
Recurring Deposits
Answer:
The account which encourages the customers to make regular savings and to deposit a fixed sum of money for a specific period of time is called Recurring Deposits.

Question 7.
Fixed Deposits
Answer:
Fixed Deposits are the deposits received for a fixed period. The rate of interest is high for fixed deposits. The longer the period of deposit, the higher is the rate of interest.

Question 8.
Loans
Answer:
A loan granted for a specific time period against personal security, gold or silver, and other moveable or immovable assets is called a term loan.

Question 9.
Advances
Answer:
Advances is a credit facility provided by the bank to its customers. It differs from loans in the sense that loans may be granted for a longer period, while advances are for a shorter period.

Question 10.
Cash Credit
Answer:
Under a cash credit facility, a bank allows the borrower to withdraw amounts up to the specified limit. Such credits are allowed against the security of stock of raw material, finished goods, etc.

Question 11.
Overdraft
Answer:
It is a facility where the bank allows its customers to overdraw an amount up to a particular limit. Such facility is allowed against collateral securities like shares, FDR, LIC Policy, etc.

Question 12.
Discounting of Bill
Answer:
It is a short-term finance facility provided by the bank to its customers by allowing discounting of bills and making payment of bills before their due date.

Question 13.
Letter of Credit
Answer:
A letter of credit is a payment method generally used for international trade transactions. A letter of credit is issued by a bank on behalf of its client, promising to pay a certain amount of money to the seller in case the buyer fails to pay it.

Question 14.
Stop payments of cheque
Answer:
When a cheque is sent by the Company, there is a possibility of misplacement of cheque or loss in transit. In that case, it is necessary to inform the bank to stop the payment of such cheques.

3. Distinguish between the following.

Question 1.
Current Account and Savings Account.
Answer:

Basis	Current Account	Savings Account
1. Meaning	It is a type of bank account that is generally opened by the businessman to carry out their business activities.	It is a type of bank account which is opened by salaried and household people with an aim of saving their part of the income and earn interest.
2. Withdrawals	There are no restrictions on the number of withdrawals. They can withdraw money by cheque.	There are restrictions over the number of withdrawals. They can withdraw money either by cheque or by withdrawal slip.
3. Facilities	Such account holder gets the facilities of Passbook, Cheque Book, Statement of Account and Pay-in-Slip Book.	Such account holders get the facilities of Passbook, Cheque Book, and Pay-in-Slip Book.
4. Rate of Interest	Generally, no interest is allowed on the Current Account. If it is allowed it is a very nominal rate.	The rate of interest on the Saving Account is higher than the Current Account but less than fixed deposits.
5. Overdraft facility	Overdraft facility is allowed to Current Account holders.	Overdraft facility is not allowed to Saving Account holder.
6. Suitability	It is suitable for traders, business firms, and institutions.	It is suitable for salary earners, households, and fixed income groups.

Question 2.
Loan and Overdraft
Answer:

Basis	Loan	Overdraft
1. Meaning	Amount granted for a specific period of time, against personal security, gold or silver, and other movable or immovable assets is called a loan.	Overdraft is a credit facility granted by the bank to Current account holders. Under an overdraft facility, the bank allows its customers to overdraw an amount up to a particular limit.
2. Eligibility	Savings account, Fixed, Recurring, and Current account holders are eligible for the loan facilities.	Only Current account holders are eligible for an overdraft facility.
3. Duration	The loan is a long period facility.	Overdraft is a short period facility.
4. Purpose	The purpose is to meet long-term requirements.	The purpose is to meet short-term working capital requirements.
5. Repayment	The amount of the loan may be repaid in installments or in a lump sum on its due date.	The amount of overdraft is adjusted against the balance of Deposits in the Current account.
6. Security	It is provided against personal security, gold or silver, and other movable or immovable assets.	It is provided against collateral securities like shares, FDR, LIC Policy, etc.

Question 3.
Fixed Deposit Account and Recurring Deposit Account.
Answer:

Basis	Fixed Deposit Account	Recurring Deposit Account
1. Meaning	Fixed Deposits are the deposits received for a fixed period of time.	A Recurring Deposit account is that account where depositors regularly deposit a fixed amount for a specific period of time.
2. Facilities	The bank gives a Fixed Deposit Receipt to the Fixed Deposit holders.	The bank gives a Pass Book and Pay-in-Slip book to Recurring Deposit holders.
3. Rate of Interest	The rate of interest allowed is higher. The longer the period of deposit, the higher will be the rate of interest.	The rate of interest is less than Fixed Deposit Account.
4. Suitability	It is suitable for those people having surplus income in hand.	It is suitable for fixed-income groups and lower-income groups.

4. Answer in brief.

Question 1.
What are the points to be kept in mind by a Secretary while corresponding with Banks?
Answer:
The following precautions must be taken by the secretary while corresponding with banks:

• Prompt reply: For any correspondence with the bank, the reply must be sent without delay is the responsibility of a secretary.
• Brevity/Conciseness: Secretary should provide maximum information in minimum words. A letter should not be lengthy. Unnecessary details, irrelevant information or explanation, lengthy paragraphs should be avoided.
• Courtesy: The letter to the bank should show empathy, respect, and mutual understanding. It is helpful for getting favourable responses and built up goodwill for the organization.
• Accuracy: While corresponding with Bank ‘Accuracy’ and ‘Perfectness’ are very important. Whatever information or data provided must be accurate. No haphazard remarks or statements are to be made.
• Clarity: The secretary must provide true, factual updates and clear information about his organization to the banker. Clarity is required to avoid misunderstandings with bankers.

Question 2.
Under what circumstances will a secretary correspond with the Banks?
Answer:
The following are the circumstances under which a secretary has to correspond with the banks:
(i) Letter for opening a Current Account with the Bank:
The decision of opening a Current account is taken in the Board meeting by passing a resolution. The Board instructs the secretary for opening a Current account. The Secretary has to write a letter to the Bank accordingly and enclose the necessary documents.

(ii) Letter requesting a bank to stop payment of cheque:
When cheques are sent by Companies, there are possibilities of misplacement of cheques or loss in transit. Thus, it is necessary to inform the bank to stop the payment of such cheques.

(iii) Letter requesting a Bank for granting an overdraft facility:
Certain credit facilities are provided by the Bank to their customers. The Bank allows a Current Account holder to withdraw excess amount than the available balance. Secretary has to correspond with the bank to prevail this facility.

(iv) Letter requesting bank to issue a letter of credit:
A letter of credit is a payment method generally used for international trade transactions. Letter of credit is issued by Bank on behalf of its client promising to pay a certain amount of money to the seller in case the buyer fails to pay it. Secretary has to correspond with the bank to obtain this letter of credit.

Question 3.
State the agency functions of Banks.
Answer:
Agency functions of banks are part of secondary functions.
Following are the agency functions of the Bank:

• Bank collects the cheques and Bill of Exchange on behalf of the customers or account holders.
• Bank collects dividends, interest, and salary and credits the account holder’s account.
• Bank makes payment of rent, insurance premium, electricity bill, etc.
• Bank act as a Depository Participant for purchase and sale of securities.
• Transfer of money.
• Fulfill standing instructions of depositors.
• The bank acts as a trustee, an executor of the will, and an attorney for the account holder.
• The bank acts as a Banker to the issue, Lead Manager, etc. for the companies.

Question 4.
State the utility functions of Banks.
Answer:
Commercial Bank provides general utility services to their customers or account holders to attract customers.
Utility functions of Banks are as follows:

• Provide locker facility to customer utility function of banks are as follows.
• Provide a letter of credit facility to account holders for international business transactions.
• Helps to deal in Foreign Exchange.
• Provide Credit cards, Debit cards, and A.T.M. facilities.
• To assist in the purchase and sale of securities.
• Provide traveler’s cheque to customers.

Question 5.
Explain the different types of Deposits.
Answer:
The Bank accepts two types of deposits from the people.
(i) Demand Deposits:
Demand Deposits are deposits, where money is repaid by the bank on the demand made by the depositors or customers of the bank.

Such deposit accounts are:
(a) Savings Deposits:
As the name indicate this account is opened and operated by that person who have regular and fixed income e.g. salary. In order to ‘save’ something out of current income, this account is opened.
Features of this account are:

• It is mainly for saving purposes.
• Money can be withdrawn on demand.
• Minimum balance must be maintained.

(b) Current Deposits:
This account is opened by the businessman, firm, company, etc. for business purposes. There is no limit on the number of withdrawals. Generally, interest is not payable on this account. Overdraft facilities are also allowed to these depositors.

(ii) Time Deposits:
The deposits which are not repayable on demand are called ‘Time Deposits’. These deposits are payable after a specific period of time.

• Fixed Deposits: In this deposit account, a certain sum is kept deposited for a fixed period. A higher rate of interest is paid on Fixed Deposit.
• Recurring Deposits: In this deposit account, the customer deposit’s fixed amount on regular basis for a specific period. The money is deposited periodically. The rate of interest is more than Saving Deposits.

5. Justify the following statements.

Question 1.
The secretary has to correspond with the Banks under certain circumstances.
Answer:
Following are the circumstance under which a secretary has to enter into correspondence with banks:

• Letter for opening a Current account with Bank.
• Letter requesting a bank to stop payment of the cheque.
• Letter requesting a bank for granting overdraft facility.
• Letter requesting a bank to issue a letter of credit.
• Letter to a bank enquiring about new banking facilities.
• Letter to the bank for a long-term loan.
• Thus, the secretary has to correspond with the Banks under certain circumstances.

Question 2.
The secretary should observe certain precautions while corresponding with the Banks.
Answer:
The following precautions must be taken by the secretary while corresponding with the banks:

• Secretary should give a prompt reply.
• Secretary should take care that the letter should not be lengthy.
• Unnecessary details should be avoided.
• Not to use any harsh or rude words while corresponding with the banker.
• Provide true factual updates and clear information about his organization to the bankers.
• Thus, the secretary should observe certain precautions while corresponding with the Banks.

Question 3.
The primary functions of Commercial Banks include-Accepting deposits and Lending funds.
Answer:
The main object of a commercial bank is to accept deposits and lending money to customers or account holders:

• To encourage the people who have surplus funds.
• To encourage the saving habit among the people.
• To give support to businessmen for opening a current account.
• To encourage people to make regular savings.
• To lend loans and advances through various modes i.e. short-term loan, medium-term loan, long term loan, overdraft facility, cash credit facility, and discounting of the bill of exchange, etc.
• Thus, the primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Question 4.
The Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.
Answer:

• The basic aim of the bank is to pool the excess money to the bank and develop the habit of saving amount people.
• Bank accepts deposits in two forms i.e. Demand Deposits and Time deposits.
• Demand Deposits include – Current Deposits and Savings Deposits.
• Time Deposits includes – Fixed Deposits and Recurring Deposits
• Thus, the Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.

Question 5.
There is a difference between Loans and Advances given by the Bank.
Answer:

• Bank lends money in two ways – i.e. Loans and Advance.
• The loan is granted for a specific period of time against personnel security, gold or silver, and other movable or immovable properties.
• Advances is a credit facility provided by the bank to its customers against collateral securities like – shares, Government shares, F.D.R., L.I.C. Policy, Stock of raw materials, or finished goods.
• Loans are granted for a longer period while Advances are granted for a shorter period.
• Loans may be short-term, medium-term, or long-term while advances are in form of overdraft, cash credit, and discounting of bills.
• Thus, there is a difference between Loans and Advances given by the Bank.

Question 6.
Overdraft facility is given only to current depositors.
Answer:
Overdraft is a credit facility allowed to current account holders:

• Under an overdraft facility, the bank allows, customers, to withdraw an amount, up to a particular limit.
• The collateral securities are usually accepted for an overdraft facility.
• The rate of interest charged by commercial banks for overdraft is low.
• Overdraft facility is given only to existing current depositors because they have good relations with the Bank.
• Thus, an overdraft facility is given only to current depositors.

6. Attempt the following.

Question 1.
Write a letter to the bank for opening a Current Account.
Answer:

PRAGAT KRUSHI SEVA COMPANY LTD. Registered office: Milind Sally Manjul, Nashik Pune Highway, Sangamner CIN: H353558 MH 2019 PLO 227244 Phone: 02425 – 223019 Fax: 02425 – 227230 Website: www.pragatksltd.com Email: milinadkulkarni@gmail.com Date: 10th March 2019. Ref No. BlbRbl212019 The Bank Manager, IDBI Bank, New Nagar Road, Jantar Raja Maidan, Sangamner. Sub: Opening of Current Account. Dear Sir, The Board of Directors of a company have passed a resolution on 3rd March 2019 to open a Current Account in your bank in the name of the company i.e. “PRAGAT KRUSHI SEVA COMPANY LTD.” and to appoint you as the company’s banker. Please find enclosed herewith the following documents for the purpose of opening the Current Account of our company. Account opening form duly filled, signed and dated. Certified copy of Memorandum of Association. Certified copy of Articles of Associations. Certified copy of Incorporation Certificate. Certified copy of Board resolution regarding opening a Current Account. Specimen signature of two directors Mr. Maithily Kulkarni and Mr. Ajit Godse and the company secretary Certified copy of the list of present Directors of the company. Duly filled up Pay-in-slip along with ₹ 5,000 (Rupees Five thousand only) in cash as initial deposit. Certified copies of PAN and TAN. Thanking you, Yours Faithfully, for PRAGAT KRUSHI SEVA CO. LTD. (Sign) Company Secretary. Encl: As above

Question 2.
Write a letter to the bank to stop the payment of the cheque.
Answer:

AVANI GLASS LIMITED COMPANY Registered Office: Janata Raja Maidan, Vidya Nagar, Sangamner. CIN: B45453 MH 1992 PCL 123272 Phone: 02425 – 227244 Website: www.avaniglass.com Fax: 02425 – 222340 Email: renukrushna@gmail.com Date: 15th March 2019 Ref. No. B/PC/1/19-20 The Bank Manager, New Nagar Road, Sangamner. Sub: Stop Payment of Cheque No 303592 Ref: Our Account No 30357090414   Dear Sir, It is to bring to your notice, to stop payment of the Cheque no. 303592 dated 10th March 2019 of ₹ 75,000 (Rupee Seventy Five Thousand) issued by the company from Current Account no. 30357090414 in favour of Mr. Krushna Chaudhari, Nashik. The said cheque is reported to be lost by the party. So we kindly request you to stop the payment of the said cheque. We highly regret the inconvenience caused to you and wishing your kind co-operation in the above matter. Thanking you, Yours Faithfully, for AVANI GLASS LIMITED COMPANY (Sign) Company Secretary.

Question 3.
Letter requesting a bank to issue a Letter of Credit.
Answer:

B.K. INDUSTRIES LTD. Registered Office: 240, Apeksh. F.C. Road, Pune 4 CIN: B40418 MH 2010PIL 373078 Phone: 020 – 3070901 Fax: 020 – 3145402 Website: www.BKundu.com Email: unvitkrusha@gmail.com Date: 25th May 2019 Ref. No. BP/23/19-20 The Bank Manager, Bank of Maharastra, F.C. Road, Pune – 4. Sub: Issue of Letter of Credit. Ref: Our Current Account No 020304147911 Dear Sir, We are pleased to inform you that, we want to import printing machine from America. As per the quotation received from Mark Industries, America we have to place an order along with a letter of credit. We, therefore, request you to issue a letter of credit in favor of the said company USD 4,50,0000. This letter may be issued on the basis of the credit balance in our current account and as per the prevailing exchange rate. Kindly issue the letter of credit and oblige. This will enable us to place an order at an early date. Thanking you, Yours Faithfully for B.K. INDUSTRIES LTD. (Sign) Company Secretary.

Question 4.
Write a letter requesting the bank to grant an overdraft facility.
Answer:

JAI MATA GLASS AGENCIES LTD. Registered Office: 285, M.G. Road, Dwarka. Nashik. Phone: 0253 – 27304580 Fax: 0253 – 283048800 Website: jaymata.com Email: jaymata@gmail.com Date: 10th January, 2019 Ref. No. BK/7/20-19 The Manager, RDBI Bank Dwarka, Nashik. Sub: Request for overdraft facility Ref: Account No. 00303540451 Dear Sir, The Board of Directors in their meeting held on 2nd January 2019 has decided to request you to grant our company an overdraft facility up to ₹ 10 lakhs for a period of 5 months from March 2019 to July 2019. We are the manufacturer of Tuffen glass and we have a large export order for which we need to have working capital to fulfill our daily needs. We request you to accept our security of Fixed Deposit worth ₹ 10 lakhs with your bank. We would also like to bring to your notice that we are being your customer for the last 10 years. Expecting your early reply in favor of our overdraft facility. Thanking you, Yours Faithfully, for JAI MATA GLASS AGENCIES LTD. (Sign) Company Secretary

Activity (Textbook Page No. 168)

Visit a Bank and collect the form of opening a bank account and find out. The detail to be filled in and Documents needed to open an account.
Answer:
Yesterday, I visited the IDBI Bank of India, Sangamer Branch.
I collected the account opening form from Mr. Abhay Kulkarni Bank Officer.
The following are the details to be filled in in the Account opening form.

1. Branch Name
2. Date of opening account
3. Branch Address
4. Scheme Codes
5. Account Number
6. Type of Account
7. Full name in Capital Letter
8. Date of Birth
9. Occupation
10. PAN
11. Name of Guardian
12. Relationship with minor
13. Operating instruction
14. Facilities required
15. Statement of Account through
16. Other information
17. Declaration, if any
18. Specimen signature
19. Signature

Document required for opening a Bank Account.

1. Certified copy of Articles of Association and Memorandum of Association.
2. Certified copy of Board Resolution regarding the opening of a Current Account.
3. Specimen signature of Directors and Secretary.
4. List of Directors
5. Certificate of Incorporation.

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 10 Correspondence with Directors

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Representatives of shareholders are ____________
(a) directors
(b) employees
(c) servants
Answer:
(a) directors

Question 2.
The notice of the meeting of the Board of Directors must be accompanied by ____________
(a) agenda
(b) minutes
(c) resolution
Answer:
(a) agenda

Question 3.
____________ looks after the management of a company.
(a) Board of Directors
(b) Auditor
(c) Company Secretary
Answer:
(a) Board of Directors

Question 4.
The Directors take decisions at ____________ meeting.
(a) Annual General
(b) Board
(c) Statutory
Answer:
(b) Board

Question 5.
According to Section 167(1)(b) of the Companies Act 2013, if a director absents himself from all the meetings of the Board, for a period of ____________ months or more, with or without the leave of the Board, he shall be deemed to have vacated his office.
(a) 12
(b) 10
(c) 9
Answer:
(a) 12

Question 6.
Every company except OPC and the small company shall hold minimum ____________ Board Meetings in each year.
(a) 4
(b) 3
(c) 5
Answer:
(a) 4

Question 7.
The gap between two consecutive Board Meetings should not be more than ____________ days.
(a) 120
(b) 110
(c) 130
Answer:
(a) 120

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Directors	(1) At least 2 Directors
(b) Absenteeism of Director in Board Meetings	(2) At least 3 Directors
(c) Public Company	(3) Disqualification of director
(d) Private Company	(4) Representatives of shareholders
(e) Notice of a Routine Board Meeting	(5) 21 clear days
	(6) 7 days
	(7) 70 days
	(8) Representative of the public
	(9) At least 20 directors
	(10) At least 30 directors

Answer:

Group ‘A’	Group ‘B’
(a) Directors	(4) Representatives of shareholders
(b) Absenteeism of Director in Board Meetings	(3) Disqualification of director
(c) Public Company	(2) At least 3 Directors
(d) Private Company	(1) At least 2 Directors
(e) Notice of a Routine Board Meeting	(6) 7 days

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
Elected body of representatives of shareholders.
Answer:
Board of Directors

Question 2.
An employee of a company who provides guidance and advice to the Board of Directors about business matters.
Answer:
Company Secretary

Question 3.
A meeting of all the directors of a company.
Answer:
Board Meeting

Question 4.
A written invitation was given to the Director to attend the meeting.
Answer:
Notice of Board Meeting

1D. State whether the following statements are True or False.

Question 1.
A director can be removed before the expiry of his term.
Answer:
True

Question 2.
Directors act as trustees of the company.
Answer:
True

Question 3.
A director can remain absent for any number of Board Meetings.
Answer:
False

Question 4.
Directors act as agents and trustees of the company.
Answer:
True

Question 5.
Company Secretary need not attend the board meetings.
Answer:
False

Question 6.
Director can take decisions individually.
Answer:
False

1E. Complete the sentences.

Question 1.
The elected representatives of the shareholders are called as ____________
Answer:
Board of Directors

Question 2.
The meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 3.
The notice period for Board Meeting shall not be less than ____________
Answer:
7 days

1F. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Notice of Board Meeting	………………………..
(2) …………………..	Meeting of all directors
(3) Duty of Directors	………………………….

(Board Meeting, Not less than 7 days, Disclosure of personal interest)
Answer:

Group ‘A’	Group ‘B’
(1) Notice of Board Meeting	Not less than 7 days
(2) Board Meeting	Meeting of all directors
(3) Duty of Directors	Disclosure of personal interest

1G. Answer in one sentence.

Question 1.
When does a Director vacate his office due to absenteeism at Board Meeting?
Answer:
When the director is absent for all meetings of the Board held during a period of twelve months, with or without the leave of absence from the board, he shall be deemed to have vacated his office.

Question 2.
Can a Director who was absent at the Board Meeting get a copy of the minutes of that Board Meeting?
Answer:
If the director is absent for a board meeting he has the right to get a copy of the minutes of that Board Meeting.

1H. Correct the underlined word and rewrite the following sentences.

Question 1.
Secretary is an elected representative of the shareholders.
Answer:
Director is an elected representative of the shareholders.

Question 2.
Secretary is responsible for the decision-making and framing policies of a company.
Answer:
Director is responsible for the decision-making and framing policies of a company.

2. Explain the following terms/concepts.

Question 1.
Director
Answer:
Director is any person occupying a position by whatever name called, Directors are authorized by shareholders to conduct the activities of the company. Director prepares policies to achieve the aims of the company.

Question 2.
Board of Directors
Answer:
Directors are elected representatives of shareholders. Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set. They have to exercise proper control, direction, and supervision. Directors exercise their powers and authorities collectively as a “Board”.

Question 3.
Conciseness
Answer:
Business letters to directors must be brief and to the point. Unnecessary details, irrelevant matters must not be written, conciseness refers to ‘briefness’. It is said that ‘brevity is the soul of correspondence’.

Question 4.
Politeness
Answer:
While corresponding with Directors, simple words and language must be used. A letter must show empathy, respect, and mutual understanding. It helps to create goodwill. Unnecessary big terms, long sentences should be avoided. Secretary should not use any harsh words while corresponding with directors.

Question 5.
Initiative
Answer:
The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.

Question 6.
Notice and Agenda of board meeting
Answer:
The notice of the Board meeting is a document that is sent to all directors of the company. All types of companies are required to give notice of at least 7 days along with agenda before the actual day of the meeting. Notice of Board meetings is generally sent by hand delivery or by post or by electronic means.

3. Answer in brief.

Question 1.
What are the points to be considered by a secretary while corresponding with the directors?
Answer:
Following are the points or precautions to be taken by the secretary while corresponding with Directors.

• Initiative: The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.
• Accuracy: In correspondence with directors “accuracy” or perfectness is very much important. Whatever information, action, data, or reply is to be given, must be given accurately. Secretary should provide correct, accurate, and perfect information.
• Promptness: Every letter must be dealt with promptly, whatever might be the subject matter. Prompt replies always create a good impression about your organization, delays in correspondence may prove to be costly in a later stage.
• Brevity: The letter acts as a representative of the organization. Hence, the secretary should always provide all information in a compact manner. A letter should not be lengthy. Secretary should provide maximum information in minimum words.
• Politeness: In correspondence with directors simple and words and language must be used. Unnecessary use of big terms, long sentences should be avoided. Secretary should not use any harsh words.

Question 2.
Under what circumstances will a secretary correspond with a director?
Answer:
Following are the circumstances when a company secretary corresponds with a Director:

• Sending Notice and Agenda of routine Board Meeting.
• Requesting a director to disclose his interest in a particular contract.
• Forwarding the minutes of the meeting to the directors who were absent from the meeting.
• Intimation to the director about the provisions regarding absenteeism at board meetings.

4. Justify the following statements.

Question 1.
Directors exercise their powers and authorities collectively as a Board.
Answer:

• The Directors occupy a very important position in the company’s management.
• They are elected representatives of the shareholders.
• Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set.
• They have to exercise proper control, direction, and supervision.
• Directors exercise their powers and authorities collectively as a “Board”.

Question 2.
The Secretary should take certain precautions while corresponding with Directors.
Answer:

• The company secretary is an executive officer of a Joint Stock Company.
• The decisions taken by the board of directors are implemented by the secretary.
• The secretary acts as a link between the directors and other management personnel.
• The secretary provides assistance to the directors and guidance to the directors.
• Directors occupy key positions and are superiors, so the communication with them should be cautious and tactful.

Question 3.
The Board of Directors is the elected representative of the shareholders.
Answer:

• A Joint Stock Company is a business organization with a wide scope of business activity.
• Though shareholders of the company are the part of owners as well as the members of the Joint Stock Company, they cannot participate in the management and day-to-day functioning of the company since they are scattered over a large geographical area.
• So, as such the shareholders during the Annual General Meeting elect the directors to act as their representatives and carry on the business activities of the company.

Question 4.
The Secretary has to correspond with Directors on important occasions.
Answer:

• The company secretary is an executive officer of a joint-stock company.
• The decisions taken by the board of directors are implemented by the secretary.
• The secretary acts as a link between the directors.
• The secretary is said to be the ears, eyes, hands, and mouthpiece of the Board.
• So under the following circumstances, the secretary writes letters to Directors:
  • Sending Notice and Agenda of the routine Board meeting.
  • Requesting directors to disclose their interest in a particular contract.
  • Forwarding the minutes of the meeting to the directors, who were absent for the meeting.
  • Intimating the director, the provisions regarding absenteeism at consecutive board meetings.

5. Answer the following questions.

Question 1.
Draft the notice and agenda of routine board meetings.
Answer:

INFORT TECHNOLOGY LIMITED Registered Office: 12, Swaraj Excellency, British Library Lane, F.C. Road, Pune-411004 CIN: BOO160MH20375JLB400180 Phone:020-21173428 Fax: 020-32194237 Website: www.inforttechnology.com. E-mail: infort@technology.com. Date: 25th March 2019 Ref. No.: D/MR/13/19-20 The Director, Mr. Anvit Gaurav Gaikwad, Vastushodh, Building 42, Flat No. 107, Urbangram, Kirkutwadi, Pune. Sub: Notice of the Board Meeting dated 28th April 2019. Dear Sir, I wish to inform you that the monthly Board meeting will be held on 28th April 2019 at 10.00 a.m. at the registered office of the company to transact the following business. AGENDA To confirm the minutes of the last meeting. To confirm the applications of shares. To consider the financial position of the company. To decide the date of the next board meeting. To discuss any other matter with the permission of the Chairman. You are requested to be present at the meeting. Thanking you, Yours faithfully, for Infort Technology Ltd. Sign Company Secretary

Question 2.
Write a letter to the director requesting him to disclose his personal interest in a contract.
Answer:

CHAUDHARI KANCHWALA LIMITED Registered Office: S.N.1960, Kolhar Ghoti Highway, Sangamner Akole Road, Mangalapur. CIN: B40408MH2019ABC1205 Phone: 02425-227244 Fax: 02425-221974 Website: www.chaudharikanchwala.com. E-mail: chaudhari60@gmail.com Date: 1st January 2019 Ref. No.: D/CK/23/19-20 The Director, Mrs. Rajshri Atul Chaudhari, Janata Raja Madian, Vidyanagar, Sangamner. Sub: Disclosure of personal interest. Dear Madam, I wish to inform you that the meeting of the Board of Directors of the company will be held on 21st January 2019. The Board decided to appoint Public Relations Officer for developing relations with customers and wholesalers. As per information received from a reliable source, Mr. Vinayak Nehulkar your relative has applied for the post of PRO. I wish to know whether the said information is true or false. In this case, if you have a personal interest in his appointment, kindly disclose your nature of interest as per Section 184 of the Companies Act, 2013. Kindly revert as early as possible. Thanking you, Yours faithfully, for Shri Chaudhari Kanchwala Ltd. Sign Company Secretary

Question 3.
Write a letter to the director who was absent for a Board Meeting to inform him about the proceeding of the meeting.
Answer:

PRABHAT OPTICAL COMPANY LTD. Registered Office: Yuga Tower, Nashik-Pune Road, Ganesh Nagar, Sangamner. Phone: 02425-222697 Fax: 02425-232697 Website: www.prabhatoptical.com. E-mail: ritivinayak@gmail.com. Date: 20th May 2019. Ref. No.: D/LB/16/19-20 The Director, Mr. Vijay Kodur, Tajane Mala, Navine Nagar Road, Sangamner – 422605. Sub: Information about the proceedings of the meeting. Dear Sir, Please find enclosed herewith a copy of the minutes of the Board Meeting held on 1st May 2019 for your information and record. I invite your attention to paragraph No.25 of the minutes. A proposal to establish a branch office in Mumbai was moved by Mr. Laxman Gadekar. It was seconded by Mr. Atul Chaudhari. After a detailed discussion, the chairman finally concluded the meeting by accepting the proposal. The motion was passed with an 80% majority. The other items on the agenda being of routine nature require no explanation. Thanking you, Yours faithfully, for Prabhat Opticals Company Ltd. Sign Company Secretary Encl.:- Copy of Minutes

Question 4.
Write a letter to the director reminding him about the provision relating to absenteeism at the Board Meeting.
Answer:

SURESH CABLES NETWORK COMPANY LIMITED Registered Office: Shubham Heights, Old Mumbai Agra Road, Ghoti. CIN: H25301MH1999ABC14708 Phone: 042530 Fax: 312240 Website: www.sureshcnc.com E-mail: sureshcable@gmail.com. Date: 13th December 2019. Ref. No.: D/CB/17/19-20 The Director, Mrs. Archana Sumit Pawar, Juna Adgaon Naka, Chavan Nagar, Tapovan Road, Nashik. Sub: Information about absenteeism in the board meeting. Dear Madam, This is to bring to your attention the fact that you have remained absent for two consecutive board meetings held on 15th October 2018 and 17th November 2018. The chairman has not received any intimation from you regarding your absence from these board meetings. You are requested to note that Section 167(1)(b) of the Companies Act, 2013 provides that a director has to vacate his office if such absence is with or without the chairman’s permission. The next board meeting of the company is to be conducted on 13th January 2019. Please make it convenient to attend this meeting or intimate the cause of absence to avoid disqualification under Section 167(l)(b). The notice and agenda of the Board Meeting have been already forwarded to you. Thanking you, Yours faithfully, for Suresh Cable Network Company Ltd. Sign Company Secretary

 

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 9 Business Communication Skills of a Secretary

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Business communication is concerned with ____________ activities.
(a) economic
(b) business
(c) social
Answer:
(b) business

Question 2.
Written communication is a ____________ record.
(a) permanent
(b) temporary
(c) unauthorised
Answer:
(a) permanent

Question 3.
E-mail is ____________ mode of communication.
(a) fastest
(b) slowest
(c) costliest
Answer:
(a) fastest

Question 4.
A unique internet address of website is known as ____________
(a) World Wide Web
(b) Uniform Resource Locater
(c) .com
Answer:
(b) Uniform Resource Locater

Question 5.
____________ is an organised statement of facts.
(a) Report
(b) Notice
(c) Heading
Answer:
(a) Report

Question 6.
There should be proper ____________ between words, lines and between paragraphs.
(a) margin
(b) typing
(c) spacing
Answer:
(c) spacing

Question 7.
____________ refers to use of minimum words.
(a) Courtesy
(b) Conciseness
(c) Correctness
Answer:
(b) Conciseness

Question 8.
A letter without ____________ is invalid.
(a) ‘You’ attitude
(b) signature
(c) clarity
Answer:
(b) signature

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Twitter	(1) Hearing and understanding
(b) Consideration	(2) Personable
(c) Active listening	(3) Harsh, rude words
(d) Body language	(4) Social Media
(e) Courtesy	(5) Non-verbal communication
	(6) Blog
	(7) ‘You’ attitude
	(8) Empathy
	(9) SMS
	(10) Politeness

Answer:

Group ‘A’	Group ‘B’
(a) Twitter	(4) Social Media
(b) Consideration	(7) ‘You’ attitude
(c) Active listening	(1) Hearing and understanding
(d) Body language	(5) Non-verbal communication
(e) Courtesy	(10) Politeness

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
Process of communication, conveying a message in spoken form.
Answer:
Verbal communication

Question 2.
A set of interconnected web pages located on a single web domain.
Answer:
Website

Question 3.
Part of a business letter that introduces the sender to the receiver.
Answer:
Heading

Question 4.
A written summary of the business transacted at the meeting.
Answer:
Minutes

Question 5.
Part of a letter that contains the name and address of the sender.
Answer:
Heading or Letterhead

Question 6.
Audio-Visual means of electronic communication.
Answer:
Video conference

1D. State whether the following statements are True or False.

Question 1.
Notice is a written summary of business transacted at a meeting.
Answer:
False

Question 2.
Written communication provides permanent records.
Answer:
True

Question 3.
Active listening is essential for effective communication.
Answer:
True

Question 4.
The inside address gives the name and address of the sender.
Answer:
False

Question 5.
A letter without a date is incomplete and invalid.
Answer:
True

Question 6.
The reference number shows the purpose of the letter.
Answer:
False

Question 7.
Coherence refers to the logical arrangement of the contents of a letter.
Answer:
True

Question 8.
A letter should have minimum folds.
Answer:
True

1E. Find the odd one.

Question 1.
Paper, Margin, Typing, Courtesy
Answer:
Courtesy

Question 2.
Clarity, Courtesy, Spacing, Correctness
Answer:
Spacing

Question 3.
Date, Inside Address, Conciseness, Subject
Answer:
Conciseness

1F. Complete the sentences.

Question 1.
When communication is done through Reports, Letters, Circulars, etc it is called as ____________
Answer:
written communication

Question 2.
Proper arrangement of different parts of business letter is called as ____________
Answer:
layout

Question 3.
The part of the letter which contains the name and address of the receiver of the letter is called as ____________
Answer:
inside address

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) You Attitude	…………………………
(2) Conciseness	………………………..
(3) ………………….	Complete information
(4) …………………	Polite language

(Minimum words, Completeness, Courtesy, Consideration)
Answer:

Group ‘A’	Group ‘B’
(1) You Attitude	Consideration
(2) Conciseness	Minimum words
(3) Completeness	Complete Information
(4) Courtesy	Polite language

1H. Answer in one sentence.

Question 1.
Name the type of communication in which words are not used.
Answer:
Non-verbal communication is the type of communication in which words are not used.

Question 2.
Name the type of communication in which communication is done in spoken form.
Answer:
Verbal communication is the type of communication in which communication is done in spoken form.

Question 3.
Name the type of communication which can be re-read.
Answer:
Written communication is the type of communication that can be re-read.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Consideration means the letter should be in a logical sequence.
Answer:
Coherence means the letter should be in a logical sequence.

Question 2.
Completeness means the use of minimum words.
Answer:
Conciseness means the use of minimum words.

Question 3.
Complimentary close contains greetings to the reader of the letter.
Answer:
Salutation contains greetings to the reader of the letter.

1J. Arrange in proper order.

Question 1.
(a) Heading
(b) Complimentary close
(c) Subject
Answer:
(a) Heading
(b) Subject
(c) Complimentary close

Question 2.
(a) Enclosure
(b) Body of letter
(c) Date
Answer:
(a) Date
(b) Body of letter
(c) Enclosure

2. Explain the following terms/concepts.

Question 1.
Communication
Answer:

• Communication is derived from the Latin term ‘communis’ that means ‘common’- ‘Shared by all’.
• Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
• Communication is a two-way process where the thoughts feelings and opinion is transmitted.
• Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
• It is giving or exchanging information, signals, or messages by talk, gestures, or writing.

Question 2.
Business Communication
Answer:

• Business communication is the branch of general communication especially concerned with business activities.
• It is a process through which information, facts, ideas, orders, decisions, etc. are exchanged between the person associated with the business.
• The success of the business enterprise depends largely upon good communication.
• Ineffective communication may cause loss of money and even goodwill of a business.
• Thus, business communication relating to trade, law, management, finance, etc. of a business enterprise is termed as business communication.

Question 3.
Written Communication
Answer:

• The exchange of information or ideas in a written form is known as written communication.
• Written communication includes reports, letters, circulars, etc.
• Written communication is the most important and the most effective mode of business communication.
• The words written should convey specific meaning and should not confuse the reader.
• Letters, memos, notices, circulars, reports, minutes are some common types of written communication.

Question 4.
Business Correspondence
Answer:

• Communication through the exchange of letters is known as correspondence.
• A businessman who writes letters in his day-to-day transactions is called business correspondence.
• Business correspondence is a written communication between two parties.
• Business correspondence takes place because the place of production and place of consumption is not the same.

Question 5.
Report
Answer:

• A report is an organized statement of facts or opinions leading to some conclusion with or without some recommendations.
• It is a systematic presentation of facts on a specific topic.
• Some reports are made as per the Companies Act and some are prepared as per the requirement of the company.
• A report may be prepared by an individual or by a committee.

Question 6.
Minutes
Answer:

• It is a written summary of the business transacted at the meeting.
• It is a concise and accurate official record of the discussion and decision at company meetings.
• It can be used for future reference.
• Minutes is the official record of the meeting so it is necessary to draft minutes in a proper format.
• Minutes should be prepared by the secretary within 15 days of a meeting.
• It is always written in the past tense.
• Minutes are prepared by the secretary, confirmed by a member, signed by a chairman, and countersigned by the secretary.

3. Study the following case/situation and express your opinion.

1. Mr. Rahul is the secretary who has been asked by the Managing Director to inform a director about a decision taken in a board meeting in which he was absent. Which aspect of essentials of a good business letter he follows:
(Clarity, conciseness, coherence, courtesy, completeness, correctness)

Question (a).
When he is giving the required information in a very short and brief manner?
Answer:
Clarity and conciseness

Question (b).
When he is using courteous words so as to be polite?
Answer:
Courtesy

Question (c).
When he is giving the entire information about the meeting in a proper manner?
Answer:
Coherence, completeness, and correctness.

4. Answer in brief.

Question 1.
Explain any four essentials of effective communication.
Answer:

• Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.
• Effective communication is when a message is conveyed by the sender and received by the receiver exactly the same it was intended.
• Being able to communicate effectively is an essential skill.

The following are the essentials skills for effective communication:
(a) Listening:

• One of the most important aspects of business communication is being a good listener.
• Effective communication requires active listening.
• Active listening involves hearing and understanding a person.

(b) Body language:

• Body language is an important communication tool.
• Body language should convey words.
• Tone, hand gestures, and ensuring eye contact are involved in body language.

(c) Clear and concise:

• The message should be conveyed by using as few words as possible, whether in person or through telephone, or e-mail.
• The message should be clear concise and direct.
• Excessive words should be avoided.
• Thought should be given to the message before being conveyed in order to avoid confusion.

(d) Confident:

• For effective communication, confidence is needed.
• Making eye contact but having a friendly tone always shows confidence.

Question 2.
State any four essentials of a good business letter.
Answer:

• A business letter is a type of written communication written by the secretary.
• Good letter writing is important for maintaining the image of the business.
• It helps in understanding the objective of the content and helps to make the correct decision.

A business letter should possess the following qualities:
(a) Clarity:

• The message of the letter must be clear.
• Simple and common words are to be used.
• Technical and short forms should be avoided.
• Names and figures should be correct and clear.

(b) Conciseness:

• The letter should be brief.
• Minimum words are to be used.
• Unnecessary and irrelevant information should be avoided.
• A brief letter saves time for the reader.

(c) Completeness:

• A letter must give complete information to the reader.
• The letter should cover all possible facts related to the subject matter.
• An incomplete letter does not achieve the desired results.

(d) Courtesy:

• Courtesy means the language of the letter must be polite and kind.
• A courteous letter gets a favorable response from the reader.
• Harsh, rude words, insulting remarks must be avoided.

5. Justify the following statements.

Question 1.
Written communication is very useful to the organization.
Answer:

• The exchange of information or ideas in a written form is known as written communication.
• Written communication is the most important and effective mode of business communication.
• It provides us with records, references, etc. on which important decisions are taken.
• It provides legal defense to the organization through records, letters, instructions, etc.
• It provides uniformity of policy and procedures and builds proper guidelines for the working of the organization.
• It builds an image of the company.
• It leads to accuracy and dependability.
• Responsibility can be easily assigned through written communication.
• It is permanent in nature.
• Thus, written communication is very useful for the organization.

Question 2.
Social media network is very useful to the business.
Answer:

• Social media are online interactive groups created using advanced mobile and web-based technologies.
• From the business point of view, it provides a great opportunity to interact with the public and communicate about their product and services.
• It helps in developing loyalties.
• It builds a strong relationships with the audience and consumers.
• Social networking makes relationships more personal.
• Business can be promoted more effectively through advertising.
• Thus, social media network is very useful to the business.

Question 3.
Listening is the most important aspect of effective communication.
Answer:

• The most important aspect of effective communication is being a good listener.
• Effective communication requires active listening.
• Active listening involves hearing and understanding what a person is saying to you.
• Without the ability to listen effectively, messages are generally misunderstood.
• Good listening skills can lead to better customer satisfaction.
• It can increase productivity with fewer mistakes.
• Increased sharing of information will lead to more creative and innovative work.
• Thus listening is the most important aspect of communication.

6. Answer the following questions.

Question 1.
State the merits of written communication.
Answer:

• When the exchange of information or ideas is in a written form is known as written communication.
• Written communication includes reports, letters, circulars, etc.
• Written communication is the most important and the most effective of any mode of business communication.
• The words written should contain specific meaning and should not confuse the reader.
• Letter, memos, notices, circulars, minutes are some common types of written communication.

The following are the merits of written communication:
(a) Accurate and precise:

• Written communication is drafted with great care.
• The communicator has to be accurate and factual as it is open to verification.
• Therefore written communication focuses greater on accuracy and precision.

(b) Re-read many times:

• The receiver of written communication can read the message any time again in the future.
• He can re-read it till it is properly understood by him.

(c) Permanent record:
Written communication becomes a permanent record of the organization and can prove very useful for future reference.

(d) Documentary evidence:
Written communication is acceptable as legal documents and as legal evidence also.

(e) Wide access:
Written communication is the best channel of communication for conveying information to people living in different places.

(f) No need for personal contact:

• It is not necessary for both parties to be available at the time of communication.
• Messages can be sent to the concerned person who can read when receives and gets spare time.

(g) Completeness:

• Written messages are prepared with perfect knowledge related to the matter.
• So there is completeness in the message.

(h) Economical:

• This method is economical when the receiver is far away from the business place.
• E-mails are the most popular method of written communication.

Question 2.
Explain different parts of a business letter.
Answer:

• A business letter is a type of written communication written by a secretary.
• Good letter writing is important for maintaining the image of the business.
• The business letters are written with the objective of understanding and take the correct decisions.

The following are the different parts of the business letter:
(a) Heading:

• The heading contains the name, address, telephone number, email id, website CIN of the company.
• It is that part of the business letter which introduces the sender to the receiver.

Eg. TATA MOTORS LTD. 176, S.B. Road. MIDC, Pune – 411015 CIN – L28920MH1945PLC004520 Telephone – (022)4756823 Email – tatamotors@gmail.com Website – www.tatamotor.com

(b) Date:

• The date is written on the right-hand side of the letter just below the heading.
• The date includes the date, month, and year.
• A letter without a date is incomplete.
• The date is very important as the letter acts as legal evidence.
• Eg. British style – 1st April 2019
  American style – April 1st, 2019

(c) Reference number:

• It is written on the left-hand side below the heading.
• The reference number is given to have a quick reference to the matter concerned.
• The outgoing letter is given a reference number.

(d) Inside address:

• It contains the name, address of the receiver of the letter.
• It is written on the left-hand side of the letter.
• For names, Mr, Shri, Mrs, or Smt are used and for firms, Messrs is used.

(e) Subject:

• The reader gets the idea of the matter of the letter without reading the letter completely.
• It helps to send it to the concerned section.
• It is written in brief as the subject.

(f) Salutation:

• Salutation is a greeting from the writer.
• It creates a favorable impression on the reader’s mind.
• It appears on the left margin below the inside address.

(g) Body of the letter:

• It is the most important part of the business letter.
• It contains the actual message for the receiver of the letter.
• The message should be divided into paragraphs. The first paragraph, Main paragraph, Closing paragraph.

(h) Complimentary close:

• This is the concluding part of the letter.
• It is written below the body of the letter on the right-hand side.
• It shows the polite end of the letter.
• It should match salutation.

(i) Signature:

• It is the final part of the letter.
• A letter without a signature is incomplete and invalid.
• Below the signature, the name and his or her designation are written.
• The person who signs is responsible for the matter written in the letter.

(j) Enclosure:

• It includes documents, cheques, etc. which are attached with the letter.
• It is shown by word enclosure which is written on the left-hand side.

Activity (Textbook Page No. 144)

How can a company use Twitter and Blogs to reach out to outsiders?
Answer:

• Twitter is considered to be an effective tool to grow your business and its brand name.
• Twitter uses attractive hashtags that attract the attention of the targeted audience or customers.
• It is an excellent platform to approach and get connected to new audiences gaining their positive opinions.
• The cost of Twitter is very nominal, so small business organizations can use its benefits easily.
• Twitter helps to connect a huge number of new customers as well as keep connected to old customers.
• It also helps to build the brand name and recognition with the help of advertisements.
• It helps to create a customer support channel and recognition who tweets positively as well as negatively about your product. Thus company or firm can improve its brand name.
• Similarly, blogging also helps businesses to compete with competitors in the market.
• Blogging helps to post in detail the qualities of your product which reaches a number of customers.
• Needed customers can easily approach your business or profession by viewing your blog.

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 8 Company Meetings – II

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
The secretary has to prepare ____________ before the meeting.
(a) resolution
(b) notice
(c) minutes
Answer:
(b) notice

Question 2.
General Meeting must have a notice of at least ____________ clear days.
(a) 7
(b) 21
(c) 14
Answer:
(b) 21

Question 3.
The gap between two annual general meetings should not be more than months.
(a) 15
(b) 18
(c) 24
Answer:
(a) 15

Question 4.
Auditor is appointed in ____________
(a) Annual General Meeting
(b) Creditors Meeting
(c) Extra ordinary General Meeting
Answer:
(a) Annual General Meeting

Question 5.
The business transacted in extra ordinary general meeting is ____________ business.
(a) Ordinary
(b) Routine
(c) Special
Answer:
(c) Special

Question 6.
An extraordinary general meeting is held ____________
(a) once in a year
(b) once in the life time
(c) under special circumstances
Answer:
(c) under special circumstances

Question 7.
Writing the minutes of meeting is the duty of the ____________
(a) Chairman
(b) Director
(c) Secretary
Answer:
(c) Secretary

Question 8.
New Directors in place of retiring Directors are appointed in the ____________
(a) Class Meeting
(b) Annual General Meeting
(c) Creditors Meeting
Answer:
(b) Annual General Meeting

Question 9.
Before the Annual General Meeting is held the Secretary has to compile ____________
(a) Auditor’s Report
(b) Committee Report
(c) Annual Report
Answer:
(c) Annual Report

Question 10.
The Secretary has to draft the minutes of the meeting within ____________ days of the meeting.
(a) Fifteen
(b) Sixty
(c) Forty
Answer:
(a) Fifteen

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Board Meeting	(1) Once in the year
(b) Auditor	(2) Minimum 4 meetings in a year
(c) Annual General Meeting	(3) Prepare at any time
(d) Extraordinary General Meeting	(4) Auditor’s Report
(e) Minutes of Meeting	(5) Prepared before the meeting
	(6) Prepared after the meeting
	(7) Under special circumstance
	(8) Prepared during the meeting
	(9) Once in Six months
	(10) Meeting of creditors

Answer:

Group ‘A’	Group ‘B’
(a) Board Meeting	(2) Minimum 4 meetings in a year
(b) Auditor	(4) Auditor’s Report
(c) Annual General Meeting	(1) Once in the year
(d) Extraordinary General Meeting	(7) Under special circumstance
(e) Minutes of Meeting	(6) Prepared after the meeting

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A meeting of shareholders which is held once a year.
Answer:
Annual General Meeting

Question 2.
A meeting of shareholders is held between two annual general meetings.
Answer:
Extra Ordinary General Meeting

Question 3.
A Report which is prepared before Annual General Meeting.
Answer:
Annual Report

Question 4.
A meeting of the shareholders is held under special circumstances.
Answer:
Extra Ordinary General Meeting

Question 5.
A meeting of the preference shareholders of a company.
Answer:
Class Meeting

1D. State whether the following statements are True or False.

Question 1.
Only special business is transacted at Annual General Meeting.
Answer:
False

Question 2.
Annual Report is prepared by members.
Answer:
False

Question 3.
Extraordinary General Meeting is called for a special and urgent purpose.
Answer:
True

Question 4.
A member has a right to attend a Board meeting.
Answer:
False

Question 5.
A class meeting is the meeting of a particular class of shareholders.
Answer:
True

Question 6.
Director cannot appoint a proxy to attend and vote at the board meetings.
Answer:
True

Question 7.
21 clear days notice should be given in case of Board Meeting.
Answer:
False

Question 8.
Secretary has to arrange to take down the notes of the proceedings of the meeting.
Answer:
True

1E. Find the odd one.

Question 1.
Annual General Meeting, Extra Ordinary General Meeting, Board Meeting.
Answer:
Board Meeting

Question 2.
Annual General Meeting, Committee Meeting, Class Meeting.
Answer:
Committee Meeting

1F. Complete the sentences.

Question 1.
The meeting which is held once in every financial year is called as ____________
Answer:
Annual General Meeting

Question 2.
The meeting held to discuss and decide any special or urgent matters is called as ____________
Answer:
Extra-ordinary General Meeting

Question 3.
Meeting of all Directors is called as ____________
Answer:
Board Meeting

Question 4.
The Authority to convene the Annual General Meeting is with the ____________
Answer:
Board of Directors

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Interval between two Annual General Meetings	…………………….
(2) First Board Meeting	…………………….
(3) ……………………….	21 clear days
(4) ……………………….	Alteration in Memorandum of Association

(Notice of General Meeting, Extraordinary General Meeting, Not more than 15 months, within 30 days of company’s Incorporation)
Answer:

Group ‘A’	Group ‘B’
(1) Interval between two Annual General Meeting	Not more than 15 months
(2) First Board Meeting	within 30 days of companies Incorporations
(3) Notice of General Meeting	21 clear days
(4) Extraordinary General meeting	Alteration in Memorandum of Association

1H. Answer in one sentence.

Question 1.
Who can attend Board Meetings?
Answer:
Board of Directors attends Board Meetings.

Question 2.
When can an Adjourned Annual General meeting be held?
Answer:
Adjourned Annual General Meeting will be held on the same day, same place and same time in the next week.

Question 3.
Why is Extra-Ordinary General Meeting held?
Answer:
Extra Ordinary General Meeting is held under special circumstances to discuss urgent and important matters.

Question 4.
When should the first Annual General Meeting be held?
Answer:
The first Annual General Meeting must be held within nine (9) months of the closing of the first financial year of the company.

Question 5.
What should be the interval between two Annual General Meetings?
Answer:
The time interval between two Annual General Meetings should not be more than 15 months.

Question 6.
What should be the gap between two Board Meetings?
Answer:
The gap between the two Board Meetings should not be more than 120 days.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Minimum four Committee Meetings must be held in a year.
Answer:
Minimum four Directors Meetings must be held in a year.

Question 2.
Creditors Meeting must be held once a year.
Answer:
Annual General Meeting must be held once a year.

Question 3.
Extra Ordinary Meeting must be held every year.
Answer:
Annual General Meeting must be held every year.

Question 4.
The Meeting of all Directors is called Annual General Meeting.
Answer:
The Meeting of all Directors is Called Director’s Meeting.

2. Explain the following terms/concepts.

Question 1.
Committee Meeting
Answer:
The Board of Directors may from the committee and delegate some of its powers to them. This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act. A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Question 2.
Virtual Meeting
Answer:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

Question 3.
Creditor’s Meeting
Answer:
Creditors of the company include Debenture holders, Depositors, Banks, and others. The meeting of creditors is called when the company proposes to make a scheme for an arrangement with its creditors.
E.g. In the case of winding up of the company, a meeting of creditors and of contributors is held to ascertain the total amount due by the company and also to appoint a liquidator to wind up the affairs of the company.

3. Study the following case/situation and express your opinion.

1. Platinum Limited Company was incorporated on 1st January 2018. Advice the Board of Directors on the following matters.

Question (a).
Within what period should the company hold its 1st Annual General Meeting?
Answer:
First Annual General Meeting must be held within Nine (9) months of the closing of its financial year.

Question (b).
At which place should the Annual General Meeting be held?
Answer:
Annual General Meeting should be held at the registered office or at some other place within the city or village which the registered office of the company is situated.

Question (c).
How many days in advance should the notice and agenda be sent to members?
Answer:
Notice and Agenda should be sent 21 clear days before the Annual General Meeting.

2. XYZ Ltd held its Annual General Meeting on 11th May 2018. On 1st June Mr. X, a Director of the company was arrested for a financial scam. Hence the shareholders of the company want to remove him.

Question (a).
Can the company call for the next Annual General Meeting to be held immediately to remove the Director?
Answer:
No, the company cannot call the next Annual General Meeting immediately to remove the director.

Question (b).
Which meeting of members should the company hold to discuss the removal of the Director?
Answer:
Extra Ordinary General Meeting should be called to discuss removal of the director.

Question (c).
What type of resolution will be passed in this meeting for the removal of the Director?
Answer:
A resolution requiring special notice (section 115) will be passed in the meeting for the removal of the director.

4. Distinguish between the following.

Question 1.
Shareholders’ Meeting and Board Meeting.
Answer:

Basis	Shareholder’s Meeting (Annual General Meeting)	Board Meeting (Director’s Meeting)
1. Meaning	It is the meeting of all the members or shareholders of the company.	It is the meeting of all the Directors of the company.
2. Number of times	Annual General Meeting is held once every year. Extra Ordinary General Meeting is held to discuss urgent and important matters. It is called in between two Annual General Meetings.	Minimum 4 meetings to be held in a year and the gap between two meetings should not be more than 120 days.
3. Quorum	Quorum in case of Public Company is as follows: No. of Shareholders Quorum Up to 1000 5 members 1000-5000 15 members More than 5000 30 members In the case of the private company, 2 members present in person shall be the quorum.	The quorum for the Board Meeting is a minimum of 2 Directors or 1/3rd of its total Directors whichever is higher.
4. Proxy	Members can appoint a proxy to attend and vote at the meeting on their behalf.	Directors cannot appoint a proxy to attend and vote at the meeting.
5. Notice	Notice of shareholder’s meeting must be sent to all the members at least 21 clear days before the meeting.	Notice of Board Meeting must be sent to every Director at least 7 days before the meeting.
6. Purpose	The purpose of this meeting is to take approvals from shareholders on the Annual Report, Appointment of Auditor, etc.	The purpose of this meeting is to discuss policy matters, future planning, etc.

Question 2.
Annual General Meeting and Extra-ordinary General Meeting
Answer:

Points	Annual General Meeting	Extraordinary General Meeting
1. Meaning	It is a meeting of shareholders held once in a year as per the provisions of Section 96 of the Companies Act, 2013.	It is a meeting of shareholders held under special conditions to discuss urgent and important matters as per the provisions of Section 100 of the Companies Act, 2013.
2. Purpose	The purpose is to give information about the progress made by the company during the year.	The purpose is to discuss urgent and important matters that cannot be postponed till next Annual General Meeting.
3. Number of times	The first Annual General Meeting is held within 9 months of the completion of the financial year and the subsequent Annual General Meeting is held within 6 months of the completion of the financial year.	Extraordinary General Meeting is held anytime between two Annual General Meetings.
4. Authority	Annual General Meeting is normally called by the Board of Directors and can be called by the Central Government under special circumstances.	Extra-ordinary General Meeting can be called by: Board of Directors Board of Directors on the requisition of members The National Company Law Tribunal
5. Business transacted	To approve annual accounts To approve Auditors and Director’s Report To appoint Auditors, Directors, etc. To declare a dividend.	To alter Articles of Association. To alter Memorandum of Association. Removal of Director. Voluntary winding up of a company.
6. Penalty	In case of default in holding Annual General Meeting, every officer concerned is punishable with a fine upto ₹ 1,00,000 and fine of ₹ 5,000 per day till default continues.	If the directors fail to hold this meeting on requisition, the requisionist themselves can hold it and recover the expenses from defaulting directors.

5. Answer in brief.

Question 1.
List the duties of a Secretary after the Annual General Meeting.
Answer:
Duties of a Secretary after Annual General Meeting:

• Drafting Minutes: The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.
• Implementation of decisions: The secretary instructs the concerned department for implementing the decisions taken at the meeting.
• Dispatch Dividend Warrants: The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.
• Filing Resolutions: The secretary has to file an Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.
• Information to Absent Members: The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
State the objectives of the Annual General Meeting.
Answer:
Purpose or objectives of Annual General Meeting: The main objective of holding an Annual General Meeting is to provide an opportunity to members to discuss the functioning of the company.

• To review the progress and performance of the company.
• To approve annual accounts, director’s report, and auditor’s report.
• To appoint auditors and fix their remuneration.
• To declare a dividend.
• To elect new directors in place of retiring Directors To transact special business, if any like-
  • business of the company taken over by the Government.
  • the company did not function well through the year, etc.

Question 3.
State any four legal provisions regarding Board Meeting.
Answer:
Legal Provisions relating to Board Meeting:
(i) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(ii) Number of Board Meetings:

• First Board Meeting shall be held within 30 days of the date of its incorporation.
• Subsequently, there should be four meetings in a year.
• The gap between the two meetings should not be more than 120 days.
• At least one Board meeting should be held in 6 months in case of one person company, small company and dormant company.
• The gap between two meetings should not be more than 90 days in the case of one person company, a small company, and a dormant company.

(iii) Notice [Section 173(3)]:

• The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
• It can also be sent by post or by hand delivery or by E-mail.
• If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(iv) Quorum (Section – 174):

• The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
• Any fraction should be rounded to one.
• Interested directors (personal interest in any matter) are not included in the quorum.

Question 4.
What are Class Meetings?
Answer:
Class Meetings (Section 48):

• When the meeting of a particular class of shareholders takes place such as a preference shareholders meeting, it is known as a class meeting.
• Such a meeting may be called for an alteration in the right and privileges of that particular class of shareholders.
• It can also be called for the purpose of conversion of one class of shares into another.
• The class meeting is not held regularly.

Question 5.
What is the purpose of conducting an Extra-ordinary General Meeting?
Answer:
Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

• Alteration in the Memorandum of Association.
• Alteration in Articles of Association.
• Reduction of Share Capital.
• Removal of a Director before the expiry of his term.
• Removal of an Auditor before the expiry of his term.
• Voluntary winding up of the company.

6. Justify the following statements.

Question 1.
Annual General Meeting is adjourned in absence of a quorum.
Answer:

• Quorum is a minimum number of members to be present for a valid Meeting.
• As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

• For a private company minimum of 2 members should be present
• If the meeting is conducted without a quorum, it is considered invalid.
• In the absence of a quorum, Annual General Meeting is adjourned.
• Adjourned Meeting will be convened on the same day, same time, and the same place in the next week.

Question 2.
A notice of the meeting must be sent to all members in case of the General Meeting.
Answer:

• The Board of Directors is the authority to convene general meetings.
• The notice must be given 21 clear days before the meeting to all those who are entitled to receive it.
• The notice must be sent to all the members at their registered address in India.
• Notice can be sent by registered post, if requested by the member, charges for the same is to be paid in advance.
• Notice is also given in all leading newspapers.
• Notice is accompanied by agenda and also Annual report, Auditor report, Annual accounts, etc. in case of Annual General Meeting.

Question 3.
Extra Ordinary General Meeting is called under special circumstances.
Answer:

1. Extraordinary General Meeting is held in between two Annual General Meetings.
2. It is held when the matter is of utmost importance and it cannot be postponed till the next Annual General Meeting.
3. It can be called to make shareholders aware of the happenings in the company.
4. It can also be called to seek their approval on important and urgent matters.
5. Important and urgent matters can be:
   • Alteration in Memorandum of Association
   • Alteration in Articles of Association
   • Reduction in share capital
   • Removal of a director or auditor
   • Voluntary winding up of a company, etc.

Question 4.
Board of Directors can exercise their powers collectively through the Board Meeting.
Answer:

1. Directors collectively are called as Board of Directors.
2. The Board of Directors has to meet frequently with reference to the day-to-day working of the company.
3. All important decisions can be taken by the Board of Directors in the Board Meeting collectively.
4. Powers which can be exercised at Board Meeting are:
   • The power to fill casual vacancies in the Board.
   • To recommend the rate of dividend.
   • The power to appoint managing Director, Manager, etc.
   • To sanction a contract.
   • To give loans or invest in shares of other companies.

Question 5.
The Quorum for the Annual General Meeting of a public company depends upon the number of shareholders.
Answer:

• Quorum is a minimum number of members to be present for a valid meeting.
• As per the Companies Act, 2013, the quorum for the Annual General Meeting of a public company are as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

• • If the number of shareholders is up to 1000, then the required quorum is 5 members.
  • If the number of shareholders is more than 1000 and up to 5000, then the required quorum is 15 members.
  • If the number of shareholders exceeds 5000 then the quorum is 30 members for a public company.
• In the absence of a quorum, if the meeting is conducted or a resolution is passed, it is considered illegal and invalid.
• In the absence of a quorum, the meeting is adjourned to the same day, same place, and same time in the next week.

Question 6.
When a company is in financial difficulty it may call a meeting of creditors.
Answer:

• Creditors of the company include Debenture holders, Depositors, Banks, financial institutions, etc.
• When a company is in a financial crisis, it seeks the help of creditors.
• The company can request creditors to alter the rate of interest, to alter the terms of security, etc.
• Meeting of creditors can be called to compromise in a dispute with them.
• Creditors and contributors can provide financial help to the company to safeguard them and also to protect them to avoid winding up of a company.

Question 7.
As per the Companies Act, every company has to hold the Annual General Meeting.
Answer:

• Every company other than one person company must hold an Annual General Meeting once a year.
• Annual General Meeting is held to review the working of the company during the previous financial year and take an effective decision for the next year.
• It is mainly called to approve Annual Report, Auditor Report, Annual Accounts, to declare a dividend, to elect Directors, Auditors and to transact special business, if any.
• First AGM shall be held within 9 months of the closing of the first financial year of the company.
• The time interval between two Annual General Meetings should not be more than 15 months.
• If the default is made in holding AGM then the company and every officer of the company in default are punishable with a fine which may extend up to ₹ 1,00,000 and up to ₹ 5,000 per day till default continues.

7. Answer the following questions.

Question 1.
Explain the functions of a secretary related to the Annual General Meeting.
Answer:
Functions (duties) of secretary related with Annual General Meeting:
Secretary has to perform many functions related to all types of meetings like Board Meeting, Annual General Meeting, etc. He has to perform all duties in compliance with the provisions of the Act. Secretary has to perform functions before, during, and after the meeting.

Functions of a secretary related to Annual General Meeting are as follows:
Functions Before the Annual General Meeting:
(i) Preparation of Accounts and Reports:
The secretary has to ensure that the Annual Accounts, Annual Report, and Auditor Report are prepared for consideration and approval.

(ii) Board Meeting:
Board Meeting is called to transact the following business:

• To adopt Annual Accounts duly audited.
• To adopt Director’s Report
• To consider the rate of dividend
• To fix the day, date, time, and place of the Annual General Meeting.

(iii) Notice:
The secretary has to send 21 clear days’ notice of a meeting to members and auditors before the meeting along with the auditor report, annual report, annual accounts, agenda, etc. The secretary has to arrange for publishing the notice of the meeting in leading newspapers.

(iv) Chairman Speech:
The secretary has to assist the chairman in drafting his speech to be delivered at the meeting.

(v) Preliminary Arrangement:
The secretary has to make arrangements such as booking of hall, refreshments, Register of Members, Members Attendance Book, etc.

Functions During the Annual General Meeting:
(i) Attendance:
The secretary has to get signatures of members present at the meeting in ‘Members Attendance Book.’

(ii) Quorum:
The secretary should see that the required quorum is present at the meeting and informs the chairman of the meeting.

(iii) Reading of Reports:
The secretary has to read the notice, Director’s Report, and Auditor’s Report as directed by the Chairman.

(iv) Notice of Proceedings:
The secretary should take down the notes of the proceedings of the meeting. He has to draft the minutes on the basis of these notes.

(v) Assist Chairman:
The secretary has to assist the chairman during the meeting. He should provide information, documents, etc as and when needed.

(vi) Conduct of Poll:
Secretary makes arrangements for conducting the poll if it is demanded by the members.

Functions After the Annual General Meeting:
(i) Drafting Minutes:
The secretary drafts the minutes of the meeting on the basis of the notes taken down during the proceedings of the meeting.

(ii) Implementation of decisions:
The secretary instructs the concerned department for implementing the decisions taken at the meeting.

(iii) Dispatch Dividend Warrants:
The secretary has to make an arrangement to dispatch dividend warrants to the shareholders.

(iv) Filing Resolutions:
The secretary has to file the Annual Report with the Registrar. In case of a special resolution, the secretary has to file the special resolution with the Registrar within 30 days of passing that resolution.

(v) Information to Absent Members :
The secretary sends the information of the proceedings of the meeting to the absent members.

Question 2.
Explain the different types of General Meetings of a company.
Answer:
General Meetings are meetings of Equity shareholders of the company. There are two types of General Meetings:

• Annual General Meeting
• Extraordinary General Meeting.

1. Annual General Meeting (Section 96):
Every Company other than One Person Company must hold Annual General Meeting once in a year.
Purpose or Objective of Annual General Meeting:

• To review the progress and performance of the company.
• To approve annual accounts, director’s report, and auditor’s report.
• To appoint auditors and fix their remuneration.
• To declare a dividend.
• To elect new directors in place of retiring directors.
• To transact special business, if any.

Legal Provisions relating to Annual General Meeting:
(i) Time Limit:

• The time interval between two Annual General Meetings should not be more than 15 months.
• Extension of time for holding the Annual General Meeting may be given by the Registrar to the company for a period not more than three months, except for the first Annual General Meeting.
• One person company is exempted from the provision of Annual General Meeting.

(ii) Authority to Convene Annual General Meeting:
The Board of Directors is the proper authority to convene the Annual General Meeting.

(iii) Notice:
The notice must be given to all those who are entitled to receive it, at least 21 clear days in advance of the meeting. It is sent to the members at their registered address by post or through electronic mode like Email, etc.

(iv) Time, Day, and Place of Annual General Meeting:
Annual General Meeting shall be called during business hours between 9 am to 6 pm on any day other than National holidays. It can be held at the registered office or at some other place within the city or village in which the registered office of the company is situated.

(v) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Upto 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

For a private company minimum of two members should be present in person.

(vi) Adjournment:
In the absence of a quorum, Annual General Meeting stands adjourned. It will be convened on the same day, same time and the same place in the next week.

(vii) Default:
If the default is made in holding the Annual General Meeting as per the provisions of the Act or as per the instructions of the Central Government, the company and every officer of the company who is in default are punishable with a fine which may extend up to ₹ 1,00,000/-. If the default continues fine may extend up to ₹ 5,000 per day till the default continues.

2. Extra-Ordinary General Meeting (Section – 100):
Meaning:
It is a meeting which is called in between two Annual General Meetings under special circumstances, which cannot be postponed till the next Annual General Meeting. The matters discussed under this meeting is of utmost importance and urgent by nature.

Purpose or Objectives of Extra-Ordinary General Meeting:
The main purpose behind calling this meeting is to make shareholders aware of the happenings in the company or to seek their approval on some urgent and important matters of the company.

• Alteration in the Memorandum of Association.
• Alteration in Articles of Association.
• Reduction of Share Capital of the company.
• Removal of a Director before the expiry of his term.
• Removal of an Auditor before the expiry of his term.
• Voluntary winding up of the company.

Legal Provisions relating to Extra Ordinary General Meeting:
(i) Time for holding a meeting:
Extra Ordinary General Meeting is held between two Annual General Meetings under special circumstances. It can be held at any time as per the requirements of the company.

(ii) Authority to Convene:

• The Board of Directors has the right to call an Extra-Ordinary General Meeting by sending a proper notice to the shareholders.
• Extra-Ordinary General Meeting can be called by the members holding at least 1/10th of the paid-up capital or 1/10th of voting power in the company. Board must call Extra-Ordinary General Meeting within 45 days of receiving the requisition from the members.
• If the Board fails to call such a meeting then the requisitionists themselves call this meeting within 3 months from the date of deposit of the requisition. The company shall pay all the expenses incurred for holding such meetings by the requisitionist.
• National Company Law Tribunal (NCLT) can order such meetings on its own or at the request of a director or any members having voting rights.

(iii) Notice:
The notice must be given to all those who are entitled to receive it, at least 21 clear days in advance of the meeting. It is sent to the members at their registered address by post or through electronic mode like Email, etc.

(iv) Quorum:
According to the Companies Act, 2013, the quorum for the Annual General Meeting of a public company is as follows:

No. of Shareholders	Quorum
Up to 1000	5 Members
1000 – 5000	15 Members
More than 5000	30 Members

For a private company minimum of two members should be present in person.

Question 3.
Explain the different types of Director’s Meetings.
Answer:
Director’s meeting:
Directors collectively are called as Board of Directors. They meet regularly to discuss and decide upon company matters, implementation of plans and review the progress made by the company.

(i) Board Meeting (Section 173):
It is a meeting of the Board of Directors. The Board of Directors has to meet frequently with reference to day to day working of the company. The Board of Directors can exercise their powers collectively through the Board Meeting.

Legal Provisions relating to Board Meeting:
(a) Authority to Convene:
The chairman of the Board is the proper authority to call the Board Meeting.

(b) Number of Board Meetings:

• First Board Meeting shall be held within 30 days of the date of its incorporation.
• Subsequently, there should be four meetings in a year.
• The gap between the two meetings should not be more than 120 days.
• At least one Board meeting should be held in 6 months in case of one person company, small company, and dormant company.
• The gap between two meetings should not be more than 90 days in the case of one person company.

(c) Virtual Meeting/Video Conferencing:
If there is any urgency to call Board Meeting and practically not possible for Directors to attend the meeting in a short notice, so with the help of technology, a virtual meeting can be held. The meetings are recorded and active participation of Directors is also possible through video conferencing. Certain special and confidential matters cannot be dealt with through video conferencing as per the directions of the Central Government.

(d) Notice [Section 173(3)]:
The notice of every Board Meeting must be given to every director at least 7 days before the meeting at his registered address along with an agenda of the meeting.
It can also be sent by post or by hand delivery or by E-mail.
If a company fails to send notice within a given time, then every officer in default shall be liable to a penalty of Rs. 25,000.

(e) Quorum (Section – 174)

• The quorum for the Board Meeting is 1/3rd of the total number of directors or two directors whichever is higher.
  Any fraction should be rounded to one.
• Interested directors (personal interest in any matter) are not included in the quorum.

(f) Adjournment:
The meeting of the Board of directors can be adjourned in the absence of a quorum.
The adjourned meeting can be held on the same day, same time and the same place in the next week.

(ii) Committee Meeting:

• The Board of Directors may from the committee and delegate some of its powers to them.
• This committee should consist of only directors. The delegation of such powers to committees is to be authorized by Articles of Association and should be subject to the provisions of the Companies Act.
• A meeting of Allotment Committee, Transfer Committee, etc are examples of Committee Meeting.

Activity 1 (Textbook Page No. 123)

Visit the website of any public company and study its Annual Report/Director’s Report.
Answer:
[Note: Students should do this activity by themselves with the help of the internet.]

Activity 2 (Textbook Page No. 127)

Enlist the functions of a Secretary related to an Extra-Ordinary Meeting.
Answer:
Functions of Secretary Relating to Extra Ordinary General Meeting:
(i) Before the Meeting:

• Time of Holding: To decide the date, time, place, and agenda for holding the meeting in consultation with the chairman of the company and to convene the Board Meeting for finalization of these things by passing a resolution to that effect.
• Drafting of Resolution: To draft the proposed resolution and explanatory statements and to get them approved by the board.
• Notice: To draft the notice of the meeting and arrange to get the same printed together with the explanatory statements, proxy forms, and admission cards. To send the notice with agenda to all the members, at least 21 days before the meeting.
• Public Notice: The notice is also published in the leading newspapers for the information of the general public.
• Notice to Stock Authorities: If the shares are listed on the stock exchange, a notice of the meeting is sent to stock exchange authorities too.
• Proxy: To verify proxy forms received and enter them in the proxy register.
• Preparing Documents: The important documents, records, Books, etc. are kept ready for reference during the meeting.

(ii) During the Meeting:

• Checking: To check the admission card of the members.
• Attendance: To take attendance of members.
• Ascertaining Quorum: To ascertain the quorum.
• Reading Notice: To read the notice convening meeting.
• Assist Chairman: To assist the chairman, by providing necessary information, records documents.
• Notes of Proceedings: To make notes of the proceedings of the meeting.

(iii) After the Meeting:

• Drafting Minutes: To draft the minutes of the meeting and enter the same in the Minute Book.
• Signed by the Chairman: To get Minutes signed by the chairman of the meeting.
• Filing of Resolution: To file the certified copy of the resolution passed at the meeting, to the Registrar of Companies.
• Sending Intimation: To send intimation to the concerned persons.
• Implementations: To carry out decisions taken at the meeting.

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 7 Company Meetings – I Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 7 Company Meetings – I

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
The intimation to members stating the day, date, time, and place of meeting is known as ______________
(a) quorum
(b) agenda
(c) notice
Answer:
(c) notice

Question 2.
The notice of the general meeting must be sent to all members ______________ clear days before the meeting.
(a) 24
(b) 21
(c) 14
Answer:
(b) 21

Question 3.
The person who presides over the meeting is known as ______________
(a) Secretary
(b) Chairman
(c) Director
Answer:
(b) Chairman

Question 4.
A proxy can vote only in the case of voting by ______________
(a) division
(b) show of hand
(c) poll
Answer:
(c) poll

Question 5.
The appointment of an auditor requires ______________
(a) resolution requiring special notice
(b) an ordinary resolution
(c) a special resolution.
Answer:
(b) an ordinary resolution

Question 6.
A ______________ is the proposal put before the meeting for discussion and decision.
(a) Motion
(b) Resolution
(c) Minutes
Answer:
(a) Motion

Question 7.
The right of casting vote is given to the ______________
(a) Director
(b) Chairman
(c) Secretary
Answer:
(b) Chairman

Question 8.
Minutes must be recorded within ______________ days of the conclusion of the meeting.
(a) 60
(b) 21
(c) 15
Answer:
(c) 15

Question 9.
______________ resolutions are not passed in general meeting.
(a) Ordinary
(b) Special resolution
(c) Resolution by circulation
Answer:
(c) Resolution by circulation

Question 10.
For passing special resolution ______________ majority is required.
(a) 51%
(b) 66%
(c) 75%
Answer:
(c) 75%

Question 11.
For alterations in the Articles of Associations ______________ is required.
(a) a special resolution
(b) an ordinary resolution
(c) a resolution requiring a special notice
Answer:
(a) a special resolution

Question 12.
Provisions about resolutions are contained in ______________ of a company.
(a) Articles of Association
(b) Memorandum of Association
(c) Prospectus
Answer:
(a) Articles of Association

Question 13.
When a poll is demanded it must be taken within ______________ hours.
(a) 48
(b) 36
(c) 12
Answer:
(a) 48

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Chairman	(1) Proposal put before the meeting
(b) Quorum	(2) Casting vote
(c) Motion	(3) Amendment
(d) Minutes	(4) Minimum number of members required for a valid meeting
(e) Notice	(5) Voting
(f) Proxy	(6) Maximum number of members required for a valid meeting
	(7) Record of a meeting
	(8) Accepted motion
	(9) Intimation stating agenda, day, date, time and place of meeting
	(10) Representative of a member
	(11) Representative of a director
	(12) Formal motion

Answer:

Group ‘A’	Group ‘B’
(a) Chairman	(2) Casting vote
(b) Quorum	(4) Minimum number of members required for a valid meeting
(c) Motion	(1) Proposal put before the meeting
(d) Minutes	(7) Record of a meeting
(e) Notice	(9) Intimation stating agenda, day, date, time and place of meeting
(f) Proxy	(10) Representative of a member

1C. Write a word or a term or a phrase which can substitute each of the following statements.

Question 1.
The person who signs the minutes of the meeting.
Answer:
Chairman

Question 2.
A method of voting where members can vote in proportion to the number of shares held.
Answer:
Voting by-poll

Question 3.
A resolution passed by simple majority.
Answer:
Ordinary Resolution

Question 4.
A resolution passed by a 3/4 majority.
Answer:
Special Resolution

Question 5.
A company officer who is required to draft the minutes of the meeting.
Answer:
Secretary

Question 6.
A person who conducts the proceedings of the meeting.
Answer:
Chairman

1D. State whether the following statements are True or False.

Question 1.
Minutes are prepared before the meeting.
Answer:
False

Question 2.
A maximum number of members required to attend the meeting is called a Quorum.
Answer:
False

Question 3.
Meetings are held only to review the progress of the company.
Answer:
False

Question 4.
Chairman has the right to conduct the meeting.
Answer:
True

1E. Find the odd one.

Question 1.
Next Business Motion, Previous Question Motion, Special Resolution.
Answer:
Special Resolution

Question 2.
Ordinary Resolution, Resolution requiring special notice, Substantive motion.
Answer:
Substantive Motion

1F. Complete the sentences.

Question 1.
The authority who can convene the general meeting of shareholders is ______________
Answer:
Board of Director

Question 2.
The advance intimation about the day, date, time, etc. of a meeting sent to the members is called as ______________
Answer:
Notice

Question 3.
The minimum number of members required to be present at a meeting is called as ______________
Answer:
Quorum

Question 4.
A person who attends a general meeting and votes on behalf of a member is called as ______________
Answer:
Proxy

Question 5.
A proposal put before a meeting for consideration and adoption is called as ______________
Answer:
Motion

Question 6.
A formal and final decision taken in a meeting is called as ______________
Answer:
Resolution

Question 7.
The written records of proceedings of a meeting is called as ______________
Answer:
Minutes

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Voting by-poll	…………………
(2) ………………………	Special resolution
(3) Substantive Motion	…………………..
(4) ………………………	Chairman

(Presides over the meeting, Proxy, an amended Motion, 3/4 or 75% majority)
Answer:

Group ‘A’	Group ‘B’
(1) Voting by-poll	Proxy
(2) 3/4 or 75% majority	Special Resolution
(3) Substantive Motion	an amended Motion
(4) Presides over a Meeting	Chairman

1H. Answer in one sentence.

Question 1.
What are Minutes?
Answer:
Minutes are the written records of the proceedings of the meeting.

Question 2.
What is Notice?
Answer:
Notice is an advance intimation given by the company informing the day, date, time, and place of the meeting.

Question 3.
What is Ordinary Resolution?
Answer:
A resolution that is passed by a simple majority i.e., 50% or more is called Ordinary Resolution.

Question 4.
What is the agenda?
Answer:
Agenda is a list of items to be discussed or things to be done at the meeting.

Question 5.
Who is Chairman?
Answer:
A chairman is a person who presides over a meeting.

Question 6.
What is the point of order?
Answer:
A point of order is an objection or question raised by any member regarding irregularity in the proceedings of the meeting.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Minutes are prepared before the meeting.
Answer:
Minutes are prepared after the meeting.

Question 2.
Resolution is a proposal put before a meeting for discussion.
Answer:
Motion is a proposal put before a meeting for discussion.

Question 3.
Polling papers are used for voting by show of hands.
Answer:
Polling papers are used for voting by-poll.

Question 4.
A Motion is a final decision taken in the meeting.
Answer:
A Resolution is a final decision taken in the meeting.

Question 5.
The agenda is prepared after the meeting.
Answer:
The agenda is prepared before the meeting.

1J. Arrange in proper order.

Question 1.
(a) Drafting Minutes
(b) Sending notice
(c) Confirming quorum
Answer:
(a) Sending Notice
(b) Confirming Quorum
(c) Drafting Minutes

Question 2.
(a) Motion
(b) Resolution
(c) Voting
Answer:
(a) Motion
(b) Voting
(c) Resolution

2. Explain the following terms/concepts:

Question 1.
Ordinary Resolution
Answer:
Ordinary Resolution (Section 114) A resolution that is passed by a simple majority i.e. 50% or more is called ordinary resolution. More than 50% of the votes should be in favour of the motion. An ordinary resolution need not be submitted to the Registrar of Companies. The notice of the meeting need not require to explain the particulars of an ordinary resolution.
Example:

• Approval of Director’s report and Auditor report
• Alteration of share capital
• Declaration of dividend
• Approval of final accounts
• Election of director
• Appointment of Secretary, Auditor, etc.

Question 2.
Agenda
Answer:
Agenda is a list of items to be discussed or things to be done or the business to be transacted at the meeting. It is sent along with the notice. A secretary prepares the agenda in consultation with the Chairman. The business at the meeting is transacted according to the order in which it appears in the agenda, routine matter first followed by special matters. The agenda is prepared as per the nature and the scope of the meeting.

Question 3.
Quorum
Answer:
Quorum (Section 103) is the minimum number of members required to be present for transacting a valid business. Without quorum proceeding of the meeting becomes invalid. The quorum should be present throughout the meeting i.e. from beginning till the end of the meeting. Secretary must check the quorum before the commencement of the meeting.

Question 4.
Proxy
Answer:
A proxy is a person, who can attend and vote at the meeting on behalf of an absent member. Every member of a company has a statutory right to appoint a proxy. When a member is not in a position to attend the meeting, he can appoint his representative. The representative of an absent member is called a Proxy. He has no right to speak at the meeting.

Question 5.
Amendment
Answer:
An amendment is any alteration proposed by a member to the original motion when a motion is under discussion. Amendments are generally moved to alter original motion by

• Adding some new words or
• Deleting some words or
• Replacing some words or
• Changing the position or place of words.

The amendment should be relevant to the main motion and it must not alter the original motion.

Question 6.
Motion
Answer:
A motion is a proposal put before the meeting for discussion and decision. A person who proposes a motion is called a proposer or a mover of a motion. A motion is subject to alteration before it is adopted by the meeting.

Question 7.
Special Resolution
Answer:
The resolution which is passed by a special majority is called a Special resolution. It is passed by 3/4th or 75% majority. The purpose of passing this resolution should be mentioned in the notice of the meeting. A special resolution is passed in general meetings only. Notice of special resolution has to be given to the members 21 clear days before the meeting. A copy of the special resolution must be filed with the Registrar of companies through e-filing on the MCA portal within 30 days of passing the resolution.
Examples:

• Change in the name of the company (Section 13).
• Change in the registered office of the company from one state to another (Section 12).
• Alteration in the object clause of the company.
• Reduction in the authorized share capital of the company.
• Alteration in the Articles of Association of the company (Section 14)

Question 8.
Notice
Answer:
Proper notice must be given to a proper person for a valid meeting. Notice is an advance intimation given by the company informing the day, date, time, and place of meeting and business to be transacted at the meeting. It is given in writing to all those who are entitled to receive it. In case of general meeting, 21 days clear notice before meeting and 7 days in case of the Board meeting.

Question 9.
Minutes
Answer:
Minutes are the written records of proceedings of a meeting. It is a summary of all discussions and decisions taken at the meeting. It is a concise and accurate record of business transacted at the meeting. Minutes are prepared by the secretary within 15 days after the meeting. Minutes are recorded in minutes book and written in the past tense. After preparing minutes, it should be passed in consecutive meetings. Minutes book for General meetings and Board meetings are maintained separately.

Question 10.
Point of order
Answer:
A point of order is a question or objection raised by any member when he wants to point out an irregularity in the proceedings of the meeting. It is raised to draw the attention of the chairman.
The point of order can be raised on the following points:

• Absence of quorum
• Breach of any rule related to meeting
• Misbehavior of any member
• Unparliamentary or Improper language used by any member.

3. Study the following case/situation and express your opinion.

1. XYZ Ltd Co. sent notice of its Annual General meeting to its members. In the meeting, a resolution is to be passed on altering the Articles of Association.

Question (a).
Should agenda also be sent with Notice?
Answer:
Yes, the agenda should be sent along with the notice.

Question (b).
What type of resolution is needed to alter the Articles?
Answer:
A special resolution is needed to alter the Articles of Association.

Question (c).
Should the resolution for altering articles be filed with the Registrar of Companies?
Answer:
A copy of the special resolution passed for altering Articles of Association must be filed with the Registrar of Companies within 30 days of its passing.

2. A General meeting of a public limited company is to be held. State the provision of quorum for-

Question (a).
meeting of the company which has less than 1000 members?
Answer:
The quorum for less than 1000 members is 5 members.

Question (b).
meeting of the company which has more than 5000 members?
Answer:
The quorum for more than 5000 members is 30 members.

Question (c).
meeting of the company which has 2500 members?
Answer:
The quorum for 2500 members is 15 members.

3. Mr. P is elected as chairman of the General Meeting. Please advise him on the following matters:

Question (a).
What should be done if the votes cast in favour and against the motion are equal?
Answer:
A chairman of the general meeting (Mr. P) can exercise casting votes in case of a tie in votes.

Question (b).
How many votes can a member cast under the poll method?
Answer:
Under the poll method, a member can cast his votes as per the number of shares held by him. ‘One shares One vote’ is a rule.
Eg. If Mr. A has 100 shares, he can cast 100 votes.

Question (c).
What should Mr. P do if any point of order is raised by a member?
Answer:
If the point of order is raised, Mr. P has to stop discussion on an original motion under discussion and give his ruling/decision immediately on point of order.

4. Distinguish between the following.

Question 1.
Agenda and Minutes
Answer:

Basis	Agenda	Minutes
1. Meaning	Agenda is a list of ‘the things to be done or ‘business to be transacted at the meeting.	Minutes are the record of the business transacted, resolutions passed and decisions arrived at by the meeting.
2. Contents	Agenda, generally contains ‘what is to be done, motions, etc.	Minutes generally contain ‘what has been done, resolution, etc.
3. When Prepared	The agenda is prepared before the meeting.	Minutes are prepared after the conclusion of the meeting.
4. Tense	It is written in the future tense.	It is always in the past tense.
5. Importance	Agenda enables the members to know, what business the meeting is going to transact. The Chairman also can conduct the meeting as per the agenda.	Minutes are evidence of the decisions taken at a meeting. Even an absent member can know about the proceedings of the meeting.
6. Legal Status	Agenda has no legal importance. The Companies Act has not provided any rules regarding the drafting of an agenda.	Minutes are the legal evidence of resolutions passed at the meeting. It provides abstract proof of the proceedings at the meeting. It can even be produced in the court of law as a legal document.
7. Approval	The agenda is prepared by the secretary and approved by the Chairman, but no approval of the members is required.	Minutes are prepared by the secretary and approved by the members, finally, it is confirmed by the Chairman.
8. Alterations	Alterations in the order of items in an agenda can be made if the members attending the meeting agree to it.	Minutes once recorded in the minute book, signed by the Chairman, and confirmed by the members cannot be altered.

Question 2.
Motion and Resolution
Answer:

Basis	Motion	Resolution
1. Meaning	Motion is a written proposal placed before the meeting for discussion and decision.	Resolution is a duly approved and accepted motion in the meeting.
2. Amendment	Motion can be amended before it is put to vote.	Resolution once passed, cannot be amended.
3. Recording	A motion is not recorded in the minute’s book of a meeting.	All resolutions must be recorded in the minute book of a meeting.
4. Filing	The motion need not be filed with the Registrar of Companies.	Special resolutions are required to be filed with the Registrar of the Companies within 30 days of the date of its passing.
5. Withdrawal	It may be withdrawn by mover before it is put to vote.	Once it is approved, it cannot be withdrawn.
6. Evidence	It can not be used as evidence.	It can be used as legal evidence.
7. Types	Motion can be (a) Formal motion (b) Substantive motion	Resolution can be (a) Ordinary resolution (b) Special resolution

Question 3.
Voting by show of hands and Voting by-poll.
Answer:

Basis	Voting by show of hands	Voting by-poll
1. Meaning	Voting by show of hands is a method of voting in which members cast their votes by raising their hands.	Voting by-poll is a method in which every member is given a paper to record their votes according to the number of shares held by them.
2. Secrecy	Votes are given openly, hence secrecy is not maintained.	Votes are recorded on voting papers, hence secrecy is maintained.
3. Voting by Proxy	Proxies are not allowed to vote under this method.	Proxies can vote only in this method.
4. No. of Votes	‘One man One vote’ is the principle of voting.	‘One share One vote’ is the principle of voting.
5. Effect	The decision by show of hands is canceled, if the poll is demanded.	The decision taken by-poll is final and it cannot be canceled.
6. Nature	It is a democratic method of voting.	It is a capitalistic method of voting.

5. Answer in brief.

Question 1.
State the importance of company meetings.
Answer:
The term meeting is derived from the Latin word ‘Maeta’ means ‘face to face.
A meeting may be defined as ‘Any gathering or assembly or coming together of two or more persons for transacting some lawful business of a common concern.’ – P.K.Ghosh.

Importance of Company Meetings:

• Members get the opportunity to come together and discuss the work and progress of the company.
• Minutes of the last meeting is read, which enables the absent and present member to get a clear idea about the matters discussed in the previous meeting.
• It enables the management to discuss and decide about their policies, plan, programs, etc, and its implementation.
• Problems faced by the company can be discussed at the meeting and a decision can be arrived.
• Legal formalities related to convening and conducting meetings of the company are fulfilled by conducting meetings.
• Appointment of directors and auditors, declaration of dividend, approvals of the annual report, financial statements, auditors report, etc. can be done in the meetings.
• Strict action can be taken against defaulters in the meeting.

Question 2.
State the legal provisions regarding Proxy.
Answer:
Legal Provisions regarding Proxy are as follows:

• Appointment: Any member of a company entitled to attend and vote at the meeting shall be entitled to appoint a proxy to attend and vote at the meeting on his behalf. A minor cannot be appointed as a proxy. The proxy cannot be appointed for the Board Meeting. The appointment of a proxy is valid for an adjourned meeting.
• Right: A proxy is not allowed to speak at the meeting. The proxy can vote only on resolutions passed by voting by-poll.
• Membership: A person appointed as a proxy need not be a member of the company.
• Proxy form: A member appointing a proxy must submit a duly completed proxy form in the registered office of the company at least 48 hours before the meeting.
• Inspection: A member can inspect any proxy form by giving not less than three days’ notice to the company.

Question 3.
When can the point of order be raised?
Answer:
A point of order is a question or objection raised by any member when he wants to point out an irregularity in the proceedings of the meeting. It is raised to draw the attention of the chairman.
The point of order can be raised on the following points:

• Absence of quorum
• Breach of any rule related to meeting
• Misbehaviour of any member
• Unparliamentary or improper language used by any member.

When the point of order is raised, discussion on the original motion is stopped for some time. The chairman gives his decision on point of order. The decision given by the chairman is final and binding on the meeting.

Question 4.
Explain any four methods of Voting?
Answer:
Methods of Voting:
(i) Voting by Voice:
In this method, the members are requested to say ‘Yes’ if they favour the motion or say ‘No’ if they are against the motion. The decision is taken on the basis of the volume of voice. This method is rarely used. The volume of voice may not give a clear and correct idea about the majority of votes.

(ii) Voting by Division:
In this method, present members are divided into two groups. Members in favour and those against the motion are asked to go to different rooms. Then the sense of the meeting is ascertained by counting and the chairman declares the result.

(iii) Voting by show of Hands:
This method is used in the general meetings of a company. After the discussion on the motion, the Chairman requests the members to raise their hands in favour or against the motion. The chairman declares the result by counting a number of hands in favour or against the proposal. ‘One man One vote’ is the principle.

(iv) Voting by Poll:
The poll can be demanded after the declaration of result by show of hands. Under this method, each member can vote in proportion to the number of shares held by him. ‘One share One vote’ is the principle. Polling papers are given to members and proxies for recording their votes. The result of the poll is final and not to be challenged.

Question 4.
State the importance of Minutes.
Answer:
The importance of Minutes are as follows:

• Official record: Minutes provide a ready reference to all the activities related to the meeting. It is the most important, official, and authentic record on which people can trust.
• Evidence: Minutes can be used as prima facie evidence in a court of law.
• Future reference: Minutes is a permanent record. It can be used for taking future managerial decisions.
• Legal provisions: Minutes are prepared in order to comply with the provisions of the Companies Act and Secretarial Standard.
• Information to absent members: Minutes help the absent members to know the proceedings of the meeting, as it is not always possible for everyone to attend the meeting.
• Reminder: The matters discussed at the meeting are noted down in minutes. It acts as a reminder to the concerned people.
• Information about resolution: The motion and discussion on the motion are reflected in the resolution. Interested parties can always refer to the text of a resolution when there is contradiction or confusion.
• Inspection of Minutes: As per the Companies Act, Minutes Book should be kept at the registered office of the company and every member has right to inspect the Minutes book at the general meetings.

6. Justify the following statements.

Question 1.
The meeting must be duly convened and properly constituted.
Answer:

• A meeting is defined as Any gathering assembly or coming together of two or more persons for the transaction of some lawful business of the common concern.
• A meeting becomes valid when it is duly convened and properly constituted.
• A meeting should be convened by proper authority.
• It must be convened as per the provisions of the Companies Act, 2013.
• Notice and Agenda of the meeting must be given 21 clear days before the meeting to all those who are entitled to receive it.
• Thus, meetings must be duly convened and properly constituted.

Question 2.
Chairman is responsible for the proper conduct of meetings.
Answer:

• A Chairman is a person who presides over a meeting.
• There should be a proper person in the chair i.e. chairman to conduct the proceedings of the meeting smoothly, fairly, and properly.
• A chairman should maintain overall discipline in the meeting.
• A chairman has to maintain order at the debate and decide the priority of speakers so that members can get a chance to express their views.
• A chairman should give his ruling on point of order at the earliest.
• A chairman can initiate an order for voting and declare the result of voting.
• A chairman must prevent improper behaviour, if any, by the member and prevent the use of unparliamentary language.
• Thus, Chairman is responsible for the proper conduct of meetings.

Question 3.
Motion can be amended.
Answer:

• A motion is a proposal put before the meeting for discussion and decision.
• The amendment is an alteration proposed by a member to the original motion under discussion.
• Amendment can be done by adding some new words or deleting some words in the original motion.
• Amendment can be done by replacing some words or by changing the position of words to the original motion.
• The amendment should be relevant to the original motion.
• The amendment is done to make the original motion more effective and meaningful.
• Amendment can be accepted or rejected. If accepted, it is considered for discussion. If approved by the meeting, it is incorporated in the original motion.
• Thus, the motion can be amended.

Question 4.
The proxy can not speak in the meeting.
Answer:

• A proxy is a representative of a member.
• A proxy can attend and vote on behalf of an absent member.
• If a member is not in a position to attend the meeting, he can appoint a proxy on his behalf.
• A proxy need not be a member of the company.
• A minor cannot be appointed as a proxy.
• A proxy has no right to speak at the meeting.
• A proxy can vote only under the poll method.
• A member appointing a proxy must submit the proxy form in the registered office of the company at least 48 hours before the meeting.
• Thus, Proxy can not speak in the meeting.

Question 5.
Notice is issued to members for a meeting along with the agenda.
Answer:

• Notice is an advance intimation given by the company informing the day, date, time, and place of the meeting.
• Agenda is given along with notice so that members can come well prepared for the meeting.
• Members come to know about the matters to be discussed at the meeting.
• If a member is not in a position to attend the meeting, he can appoint a proxy.
• Member can advise his proxy to vote on certain matters.
• Thus, a Notice is issued to members for a meeting along with the agenda.

7. Answer the following questions.

Question 1.
Explain the powers and duties of the chairman.
Answer:
A chairman is a person who presides over a meeting. There should be a proper person in the chair i.e. chairman to conduct the proceedings of the meeting smoothly, fairly, and properly.

Powers of Chairman:

• To maintain order and conduct the meeting properly.
• To maintain order at the debate.
• To decide the priority of speakers.
• To prevent improper behaviour and unparliamentary language.
• To adjourn the meeting.
• To exercise a casting vote.
• To declare the result of the voting.
• To give a ruling on point of order.

Duties of Chairman:

• To see that the meeting is duly convened and properly constituted.
• To see that the meeting is held according to the rules.
• To see that the items are discussed as per the order of the agenda.
• To maintain overall discipline in the meeting.
• To give a fair chance to members to express their views.
• To declare the result of voting.
• To check and sign minutes book.
• To act in the best interest of the company.

Question 2.
Explain the different methods of voting.
Answer:
Different methods of voting are as follows:
(i) Voting by voice:
In this method, the members are requested to say “Yes’ if they favour the motion or say ‘No’ if they are against the motion. The decision is taken on the basis of the volume of voice. This method is rarely used. The volume of voice may not give a clear and correct idea about the majority of votes.

(ii) Voting by division:
In this method, present members are divided into two groups. Members in favour and those against the motion are asked to go to different rooms. Then the sense of the meeting is ascertained by counting and the chairman declares the result.

(iii) Voting by ballot:
Under this method, every member entitled to vote is asked to record the vote on a ballot paper and deposit it in the ballot box. The votes are counted and the result is declared. This method ensures secrecy in voting.

(iv) Voting by show of hands:
This method is used in the general meetings of a company. After the discussion on the motion, the Chairman requests the members to raise their hands in favour or against the motion. The chairman declares the result by counting a number of hands in favour or against the proposal. ‘One man One vote’ is the principle.

(v) Voting electronically:
The Central Government may prescribe certain companies for having compulsory electronic voting in general meeting. Members may exercise his right to vote by electronic means.

(vi) Voting by postal ballot:
The Central Government may prescribe certain companies for having voting by postal ballot. Ballot papers are sent by post to members.

(vii) Voting by Poll:
Poll can be demanded after the declaration of result by show of hands. Under this method each member can vote in proportion to the number of shares held by him. ‘One share One vote’ is the principle. Polling papers are given to members and proxies for recording their votes. The result of poll is final and not to be challenged.

Question 3.
Explain the types of resolution.
Answer:
Types of Resolution:
(i) Ordinary Resolution:
A resolution which is passed by simple majority is called ordinary resolution. More than 50% of the votes should be in favour of motion. An ordinary resolution need not be submitted to the Registrar of Companies. The notice of the meeting need not require to explain the particulars of an ordinary resolution.

Examples:

• Approval of Directors report and Auditor report.
• Alteration of share capital
• Declaration of dividend, etc.

(ii) Special Resolution:
The resolution which is passed by special majority is called as Special resolution. It is passed by 3/4th or 75% majority. The purpose of passing this resolution should be mentioned in the notice of the meeting. A special resolution is passed in general meeting only. Notice of special resolution has to be given to the members 21 clear days before the meeting. A copy of special resolution must be filed with the Registrar of Companies through e-filing on MCA portal within 30 days of passing resolution.

Examples:

• Change in the name of the company.
• Change in the registered office of the company from one state to another.
• Alteration in the object clause of company, etc.

(iii) Resolution requiring special notice:
Some resolutions require special notice as per the companies Act or Articles of Association of the company, hence such resolutions are called resolution requiring special notice. Special Notice resolution may be ordinary or special resolution. A proposer of a motion has to give a special notice of 14 days to the company. The company should then give a notice of that resolution to all members atleast 7 days before the meeting.

Examples:

• Resolution to appoint a person as an auditor other than a retiring auditors.
• A resolution providing that a retiring auditor shall not be reappointed.
• Resolution to appoint director other than retiring director, etc.

(iv) Resolution requiring registration:
Resolution which are required to be registered with the Registrar of Companies are called as resolution requiring registration. Resolution should be filed with Registrar within 30 days of its passing.

Examples:

• All special resolutions.
• Resolution made by Board of Directors regarding appointment or re-appointment of Managing director.
• Resolution by members regarding dissolution of the company, etc.

(v) Resolution by Circulation:
When directors have to take important and urgent decisions and do not have a sufficient time to call a meeting, then a draft resolution is prepared and forwarded to all directors to pass resolution. It is called as resolution by circulation.

Activity: (Textbook Page No. 113)

Prepare an agenda for a meeting to discuss holding of Annual Day.
Answer:

AGENDA Agenda for “Utsav – 2019”. Annual day of Reliable Junior College, Mahim. To discuss the date, venue and time for Utsav – 2019. To decide and invite Chief guest for innaguration. To set up the various committees – Cultural Committee, Welcoming Committee, Refreshment Committee, Security Committee, Stage Committee. To assign the responsibilities to the various committees. To issue special passes for the VIP’s and guest. To fix the budget for the annual day. To decide the vendor for Momentos and Medals.

 

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 8 Introduction to Management Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 8 Introduction to Management

1. (A) Select the correct option and rewrite the sentences

Question 1.
Management is ………………….
(a) dynamic
(b) static
(c) selective
Answer:
(a) dynamic

Question 2.
Management uses …………………. method of observation.
(a) unscientific
(b) artificial
(c) scientific
Answer:
(c) scientific

Question 3.
To help top level management in co-ordinating the activities is the function of …………………. level management.
(a) middle
(b) lower
(c) top
Answer:
(a) middle

Question 4.
To look after maintenance of machinery is the function of …………………. level of management.
(a) top
(b) middle
(c) lower
Answer:
(c) lower

Question 5.
Management is …………………. oriented action.
(a) policy
(b) profit
(c) goal
Answer:
(c) goal

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Management	(1) Need of creativity
(b) Management as a profession	(2) Can be seen.
(c) Top level management	(3) Administration
(d) Management as an art	(4) Intangible
(e) Lower level management	(5) Formal education
	(6) Policy framing.
	(7) Implementation of policies
	(8) Selective
	(9) Directing subordinates to complete the task
	(10) Cause effect relationship

Answer:

Part A	Part B
(a) Management	(4) Intangible
(b) Management as a profession	(5) Formal education
(c) Top level management	(6) Policy framing.
(d) Management as an art	(1) Need of creativity
(e) Lower level management	(9) Directing subordinates to complete the task

1. (C) Give one word / phrase / term

Question 1.
The art of getting things done through others.
Answer:
Management

Question 2.
The second level of management.
Answer:
Middle level

Question 3.
Systematic body of knowledge.
Answer:
Management as a Science

Question 4.
The level of management related to Managing Director.
Answer:
Top level management

Question 5.
Level of management that link top level and lower level management.
Answer:
Middle level management

1. (D) State True or False

Question 1.
Management is an ancient activity.
Answer:
True

Question 2.
Management is not objective oriented.
Answer:
False

Question 3.
In small organization also management is required.
Answer:
True

Question 4.
Middle level management forms policy of an organization.
Answer:
False

Question 5.
Various principles and techniques are used in management.
Answer:
True

1. (E) Find the odd one

Question 1.
Management is an – art, a science, a commerce, a profession.
Answer:
a commerce

Question 2.
Management as an Art – Singer, Actor, Dancer, Doctor.
Answer:
Doctor

Question 3.
Management as Profession – Doctor, Chartered Accountant, Lawyer, Singer.
Answer:
Singer

Question 4.
Level of Management – Lower Level, Middle Level, Top Level, High Level.
Answer:
High level

Question 5.
Top Level Management – Board of Directors, Presidents, Purchase Manager, Chief Executive Officer (CEO).
Answer:
Purchase manager

Question 6.
Middle Level Management – Departmental Head, Finance Manager, Production Manager, Supervisor.
Answer:
Supervisor

Question 7.
Lower Level Management – Supervisor, Foreman, Finance Manager, Office Superintendent.
Answer:
Finance Manager

1. (F) Complete the sentences

Question 1.
The English verb ‘manage’ came from Italian word ……………….
Answer:
Maneggiare

Question 2.
To manage is to forecast, to plan, to organize, to command, to co-ordinate and to ……………….
Answer:
control

Question 3.
Organization is a group of person who work together to achieve a ……………….
Answer:
common goal

Question 4.
Link between the top level and lower level of management is called as ……………….
Answer:
middle level management

Question 5.
Lower level management works under ……………….
Answer:
middle level management

Question 6.
Art is the bringing about a desired result through the application of ……………….
Answer:
skills

Question 7.
Any knowledge which is scientifically developed and consists of universally accepted principles is known as a ……………….
Answer:
science

Question 8.
Science is based on systematic experiments, on certain rules and on ……………….
Answer:
principles

Question 9.
Teacher, Doctor, C.A., Lawyer comes under the term ……………….
Answer:
profession

1. (G) Select the correct option

(Finance Manager, Art, CEO, Profession, Supervisors)

Part A	Part B
(1) Top level	—————-
(2) —————–	Lower level
(3) Middle level	—————-
(4) ————-	Doctor
(5) Singer	—————-

Answer:

Part A	Part B
(1) Top level	CEO
(2) Supervisors	Lower level
(3) Middle level	Finance Manager
(4) Profession	Doctor
(5) Singer	Art

1. (H) Answer in one sentence

Question 1.
What is called as management?
Answer:
Getting work done through others is called as management.

Question 2.
Name, the levels of management?
Answer:
Top level, middle level and lower level are the three levels of management.

Question 3.
What is top level management?
Answer:
The level of management that decides the long term objectives of organization and frame the plans and policies and take decisions is called as top level-management.

Question 4.
What do you mean by middle level management?
Answer:
The level of management which is concerned with implementation of plans and policies in the organization with the help of lower level management is known as middle level management.

Question 5.
What is lower level management?
Answer:
The level of management which is considered to do actual execution of plan is called as lower level management.

Question 6.
What do you mean by an art?
Answer:
An art means skill of individual, creativity, regular practice, personal abilities and innovativeness.

Question 7.
What is science?
Answer:
Science is a systematic body of knowledge and scientific methods.

Question 8.
What is the meaning of a profession?
Answer:
Profession means an individual having adequate knowledge and abilities which is helpful to handle different situations. They are trained people having formal education in management school and have a code of conduct.

1. (I) Arrange in proper order.

Question 1.
Middle level management, Top level management, Lower level management.
Answer:
Top level management, Middle level management, Lower level management.

Question 2.
Departmental Head, CEO, Supervisors, Managing Director.
Answer:
CEO, Managing Director, Departmental Head, Supervisors.

Question 3.
Office clerk, Shareholders, Managing Director, Board of Director.
Answer:
Shareholders, Board of Directors, Managing Director, Office clerk.

1. (J) Correct the underlined word and rewrite the following sentences

Question 1.
Management is only an art.
Answer:
Management is an art, a science and a profession.

Question 2.
There are five levels of management.
Answer:
There are three levels of management.

Question 3.
Lower level management works under top level management.
Answer:
Middle level management works under top level management.

Question 4.
Middle level management works under lower level management.
Answer:
Middle level management works under top-level management.

Question 5.
Management is pure science.
Answer:
Management is a social science.

Question 6.
The entry in any profession is not restricted.
Answer:
The entry in any profession is restricted.

Question 7.
Professionals need informal education.
Answer:
Professional need formal education.

2. Explain the following terms/concepts

Question 1.
Top level management.
Answer:

1. The top level management decides the long term objectives of organization, frames plans and policies and take decisions.
2. It consists of Board of Directors, Managing Director,CEO, President, etc.

Question 2.
Middle level management.
Answer:

1. The middle level management is a link between top level and lower level management.
2. It works under top level management.
3. This level is considered with implementation of plans and policies in the organization with the help of lower level management.
4. It consists of Head of Departments / Branch managers / Incharge, etc.

Question 3.
Lower level management.
Answer:

1. This is the last level of management.
2. It is a supervisory level of management.
3. It consists of superintendents, supervisors, foremen and junior executives.
4. Lower level management receives instructions from the authorities i.e. middle level management and direct subordinates wherever necessary.

3. Study the following case/situation and express your opinion

1. While working in a company, Pranav used to give order to his subordinates about what is to be done and which work is to be done? In this organization, various employees like Pratap are doing their work assigned by Pravin. In this company, Pravin submits his report of work completion to Pranav after completing the work done by the employees like Pratap.

Question 1.
Identify different levels of management in above mentioned company.
Answer:
There are two levels of management i.e. middle and lower level of management in above mentioned company.

Question 2.
Find the level of Pranav in management of company.
Answer:
Pranav works in the middle level management of company.

Question 3.
Explain the functions and role of Pratap in his company.
Answer:
Pratap is an employee in a company. He works at the lower level. He executes the work assigned by Pravin.

4. Distinguish between the following

Question 1.
Top level Management and Middle level Management.
Answer:

	Top Level Management	Middle level Management
(1) Meaning	Top level management refers to top position in the organization such as Board of Directors, CEO, President, Managing Director, etc.	Middle level management refers to middle positions in the organization such as Departmental head, Managers like Finance manager, Production manager, Sales manager, Marketing manager, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with implementation of policies framed by top level management with the help of lower level management.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires combination of conceptual and decision making skills than technical skills.
(4) Promotion Policy	Policy    At this level promotion is given on merit.	At this level promotion is based on merit as well as seniority basis.
(5) Time Frame	It considers longer period of time i.e. 5 to 20 years.	It considers medium period of time i.e. 1 to 5 years.
(6) Responsibility	Top level is responsible to shareholders, government and society.	Middle level is responsible to top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	Orders and instructions are passed to lower level and report of the work is submitted to top level.

Question 2.
Middle Level Management and Lower Level Management.
Answer:

	Middle Level Management	Lower Level Management
(1) Meaning	Middle level management refers to middle positions in the organization. E.g. departmental head, finance manager, etc.	Lower level management refers to lower / last positions in the organization. E.g. superintendents, supervisors, etc.
(2) Nature of Work	It is concerned with implementation of policies framed by top level with the help of lower level.	It is considered with actual execution of planning.
(3) Skills	It requires both conceptual and technical skills.	It requires more technical skills than other skills.
(4) Promotion Policy	Promotion is based on merit as well as seniority basis.	Promotion is based on seniority basis.
(5) Time Frame	It considers medium term i.e. 1 year to 5 years.	It considers very short period of time i.e. upto one year.
(6) Responsibility	It is responsible to top level management.	It is responsible to both top and middle level management.
(7) Flow of Order	Instructions and orders are passed to Lower level and report of the work is submitted to top level	Implementation is done as per the orders of middle level and reports are submitted to middle level.

Question 3.
Top Level Management and Lower Level Management.
Answer:

	Top Level Management	Lower Level Management
(1) Meaning	Top level refers to top positions in the organization. e.g. Board of directors, Managing Directors, CEO, President, etc.	Lower level management refers to lower positions in the organization. e.g. Junior Executives, Foremen, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with execution of plans and policies.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires more technical skills than conceptual skills.
(4) Promotion Policy	Promotion is based on merit basis.	Seniority is preferred for promotion.
(5) Time Frame	It considers for longer period of time i.e. 5 to 20 years.	Basically it is very short period of time i.e. upto 1 year.
(6) Responsibility	It is responsible to Shareholders, Government and Society.	It is responsible to middle as well as top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	It implements orders of middle level and also reports to the middle level.

5. Answer in brief

Question 1.
State any four features of Management.
Answer:
Following are the features of management:
(i) Management is Goal Oriented : Management activity is done to achieve pre-decided goals. The success of organization is calculated on the basis of achievement of desired goals. The success depends on proper management of all available resources. Management decides the goals before conducting the activity. The manager takes efforts to achieve these goals. So management is goal oriented.

(ii) Management is a Group Activity : “Management is an art of getting things done through others.” The above definition explains that management is done through / with the people. It is done by co-ordinating all resources effectively and efficiently. The activities are done under the guidance of manager by its team members. Also in organisation decisions are taken by the group of people such as Board of Directors, Shareholders, etc.

(iii) Management is Intangible : Management is the collective efforts of manager. It is a process of planning, organizing, decision making, directing and controlling. These cannot be seen physically. However, the results of best management can be experienced in the form of increased profits, attainments of pre-decided so management is tangible in nature.

(iv) Management is a Continuous Process : Management is essential throughout the life of organisation. It is necessary to start the activity, to run the activity in smooth manner and also to control the activity. It is endless process. It is required for survival of the organization continuously.

Question 2.
Write any four functions of Top Level Management.
Answer:
Following are the functions of Top Level Management:

1. To decide long term objectives of the organisation.
2. To frame plans and policies to achieve the set objectives.
3. To observe that policies are properly implemented.
4. To create various department and positions.

Question 3.
Write any four functions of Middle Level Management.
Answer:
Following are the functions of Middle Level Management:

1. To link the top level management and lower level management.
2. To understand plans and policies framed by top level management and prepare plan of action according to the nature of department.
3. To assign duties and responsibilities to the staff of the concerned department to achieve pre-defined goals.
4. To appoint lower level staff.

Question 4.
State any four functions of Lower Level Management.
Answer:
Following are the functions of Lower Level Management:

1. Do work under Middle Level Management.
2. To assign work to subordinates.
3. To give instruction to subordinates.
4. To direct the subordinates wherever necessary.

Question 5.
State any two points of relationship about management as an art.
Answer:
The relationship between art and management are:
(i) Personal Skills : In organization, every manager has to handle different situations, has to solve various problems, has to handle human resource, etc. with his own style. This style varies from manager to manager and so the result. This is because of the different skills and abilities of each person.

(ii) Creativity : Creativity refers to the ability to find something new and innovative. Manager finds out new ways to conduct organizational activities and to achieve desired goals. Manager develops new ideas according to the changes in business situation and in the business environment.

Question 6.
Explain any two points of relationship about management as a science.
Answer:
The following points shows there is a relationship in management as a science:
(i) Systematic Body of Knowledge : Pure science is based on systematic experiments, certain rules and principles. Management principles and functions are also based on the experiments which can be studied through various different management theories, techniques and approaches given by different management thinkers.

(ii) Universal Applicability of Principles : Scientific principles can be applied in all over the world in similar situation. Therefore, the same result can be drawn. Management principles are universal in nature. They can be applied everywhere, anytime and in any condition.

Question 7.
State hny two points of relationship about management as a profession.
Answer:
The relationship between profession and management can be seen with the help of following points:
(i) Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. Also he has particular skill in practicing as a professional. Manager also becomes an expert by practicing regularly in the specific field and can acquire certain knowledge and skill.

(ii) Registration : Professionals need to register themselves with their associations. For example, a Chartered Accountant should register himself with Institute of Chartered Accountant of India i.e. ICAI. Without registration certificate he cannot practice. In case of managers, there is no such body to register themselves. However, managers can take the membership of ‘Chambers of Commerce’ which gives them benefits.

6. Justify the following statements

Question 1.
Management is essential in professional and non-professional activities.
Answer:
(i) As management is universal in nature it is applicable everywhere, either it is a professional activity or non-professional activity.

(ii) Every person performs certain activity to achieve pre-decided goals. E.g. earning of profit, winning games, competitions, to increase goodwill, etc.

(iii) Organisations either large, medium or small, profit making or non-profit making, government or non-government organisation, etc. to get success, to attain goals every time management plays a vital role. It’s application ensures smooth functioning of business.

(iv) A professional acquires certain specific formal education. He has specific skill to achieve his goals. He performs management functions like planning, organizing, controlling, etc. Similarly, while performing non- professional activities like plantation of tree, blood donation campaign, a person also requires to perform certain management functions.

(v) Thus, management is essential in performing professional as well as non-professional activities.

Question 2.
Level of management depends upon the size of organization.
Answer:
(i) Making different parts for the smooth functioning of business and to achieve decided goals is called levels of management.

(ii) The size of business is small, medium or large. Every business needs to manage the activities efficiently and’ effectively.

(iii) The levels of management depends on size of organization. If the size of organization is small the classification of levels becomes easy and simple. Whereas in large organization, it becomes difficult and complicated. The levels of management in such organisation may be classified into three parts i.e. Top level, Middle level and Lower level.

(iv) These levels of management are important in organization. These levels have their own functions. As per that they have to perform their duties and responsibilities to attain their set goals and objectives.

(v) Thus, levels of management depends on size of organisation.

Question 3.
Management is a group oriented action.
Answer:
(i) In the words of Mary Parker Follet, “management is an art of getting things done through others”. Management focuses on completing the work through human resource.

(ii) It is co-ordinating of all available resources effectively and efficiently. In organisation, the activities are done by the subordinates, employees under the guidance of a manager.

(iii) A manager, though he is competent, able, has capacity, skills to perform the organizational task, it is not possible for a single manager to perform all the activities related to the said task alone.

(iv) To fulfill or accomplish the objectives and goals, he needs the help of other people, as it should be divided among all the employees, as per their skill, qualification, interest, knowledge and experience.

(v) Thus, management is a group oriented activity.

Question 4.
Management is an art.
Answer:
(i) An art is the bringing about a desired result through the application of skills. It is an innovativeness and creativeness of a person. This is a natural and inborn quality of a person. But with the help of proper education and practice one can developed the quality or qualities. E.g. acting, dancing, cycling, magician, singing, drawing, skating, musician, sports etc. comes under art.

(ii) Art does not require any specific educational qualification or it not any compulsion. It is inborn quality or a skill.

(iii) As a manager, in organisation he has to handle various kinds of situations, employees, other resources effectively and efficiently with his own style. So he uses his skills which are either inborn or developed by practice and formal education.

(iv) A manger must be innovative. He should handle the conditions. He should not use same methods all the time. Like an artist, he has to develop his skills by regular practice. He should use different techniques and skills to get perfect result. This is possible due to regular practice.

(v) Every managers has different abilities and skills. They have to use their own abilities and skills to guide the people to achieve their goals.

(vi) Thus, manager need to be creative and skilled like an artist. Hence, management is an art.

Question 5.
Answer:
There is no need of registration for managers.

1. Every professional is registered with the concerned body or organisation. A professional is formally, educated and also a skilled person.
2. A manager, now-a-days, possess a diploma or degree in management studies like Indian Institute of Management (IIM), PUMBA (Savitribai Phule Pune University, MBA) etc. A person who wants to be a manager acquires the required knowledge of the profession and trains himself / herself for the managerial job.
3. As management is a profession, a manager is not practicing independently. He is an employee of the organisation.
4. Thus, there is no need of registration for managers.

Question 6.
Management is a continuous process.
Answer:

1. Management is a continuous process. It is an important feature of management.
2. A manager of an organisation has to perform managerial work to achieve pre-defined goals of the organisation. To achieve these goals, he as a manager applies various functions of management, principles of management and also techniques of management.
3. From the beginning till the achievement of success, continuous efforts of every individual is required.
   Continuity is an integral part of management. It is necessary through out the life of an organisation.
4. Therefore, management has become necessary to start the activity and to run the activity at the business smoothly.
5. Thus, management is a continuous activity. It is not a one time process, but it is never ending process.

Question 7.
Planning is a task of top level management.
Answer:

1. Planning means thinking before doing. It is thinking in advance. Before the action, there is a thinking process.
2. In the large organisation, management levels are divided into three parts i.e. top, middle and lower.
3. At the top level management, very few personnels are involves. They are Board of Directors, Managing Directors, President, Chief Executive Officer, etc.
4. The main function of top level management is to frame the plans and policies of the whole organisation to achieve its goals.
5. It decides the long term objectives of the organisation and also frames particular plans and policies to get them. Further, it also sees that the policies are properly implemented.
6. Framing of organizational objectives and accordingly plans and policies to achieve them becomes a tough task of top level management.
7. Thus, Planning is a task of top level management.

7. Attempt the following

Question 1.
State the definition of management.
Answer:
Following are some definitions given by management thinkers :

1. “Management is an art of getting things done through others.” – Mary Parker Follet
2. “To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
3. “Management is knowing exactly what is to be done and seeing that it is done in the best possible manner.”
4. “Management is the process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources”. George Terry.

Question 2.
State the features of management.
Answer:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(ii) Management is Intangible : Management is intangible in nature. It can’t be seen and touched. It is abstract. The principles, theories, techniques, concept are practically invisible. The result of best management can be experienced in the form of increased profit, smooth functioning of the organization and achievement.

(iii) Management is a Social Process : Management is a process because it sets objectives and takes steps to achieve them. It is said to be a social process because management is concerned with people. For example employees, shareholders, investors, customers, community, etc.

(iv) Management is a Continuous Process : Management is essential through the life of an organization. It is necessary to begin the activity, to run the activity smoothly and to control the activity. This is never ending process.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vi) Management is an Inborn Quality : Management in the older days, was considered to be an inborn quality. But with the inception of various business schools, management is a quality which can be developed if a person has the interest and perseverance.

Question 3.
State management is as a science.
Answer:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

2. Use of Scientific Methods of Observation : In science the conclusions are drawn only on the basis of scientific methods of observation. Management also uses systematic methods of data collection, verification and analysis of that collected data and interpretation of data, then a manager takes decisions in the organisation.

3. Cause and Effect Relationship : Science is based on cause and effect relationship. After using specific formulae or their combination, we get particular result in science. Management theories are also based on relationships. Fair and regular salary along with good working conditions motivates people to work hard and to give best results. Whereas, old machineries, techniques, untrained employees may not give good / excepted output to the organization.

4. Universal Applicability of Principles : The management principles are universally accepted just like scientific principles are accepted all over the world. For e.g. Newton’s law, Archimedes principle, etc. are all accepted principles, similarly in management also the principle of authority and responsibility, unity of command, direction, etc. are all universally accepted and are used in all organization whether big or small. Management follows these principles in all kind of organizations, at all levels in the same organization. State the relationship between the management and art.

Question 4.
Following points clearly states the relation between management and art.
Answer:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

2. Regular Practice: Practice makes a man perfect. This is the rule applied by a manager. The more the experience, the manager will be able to meet any challenge or difficult situation with ease. He is in a position to make the required changes according to the circumstances.

3. Personal Skill: Every manager being an individual is different. A good manager must posses good skills in dealing with human beings. He should use his skill in knowing the problem, allotment of work to employees, give judgment and understanding to deal with various situations in business.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Question 5.
State the importance of management
Answer:
1. Utilisation of Resources Optimally : Effective management is all about optimum use of available resources in the organization. Proper distribution of resources and work to right person results in higher output. It also reduces wastage and cost. Maximisation of output by reducing cost is the ultimate objective of every organization.

2. Better Relation : Different groups work at different levels in organization. The employer and the employees have different sets of demands from each other. Effective management ensures that employees fulfill their social responsibilities towards their employers. This helps in establishing good relationship among different groups in an organization.

3. Achievement of Goals : In an organization group of people performs various activities to achieve common goals of the organization. Effective management brings about harmony (cordial relationship) and good co-ordination in efforts of all group. A manager creates a feeling of team spirit among the members of the group.

4. Division of Work : Division of work means the entire work is divided into smaller lots. Each job is given to a particular employee as per his ability and skill to carry out the required activity. Division of work leads to specialization of work and completion of the work in the stipulated period of time.

Question 6.
State the similarities between management and profession.
Answer:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

2. Code of Conduct : Code of conduct means set of rules and regulations to be followed by practicing in their field. Every profession has their own code of conduct to control the activities. It emphasis on ethical practice in that profession. E.g. Chartered Accountants have to work according to ICAI, Lawyers have to follow the code of conduct framed by Bar Council of India, etc. However for managers there is no such association of managers. Generally managers follow the code of conduct based on customs and traditions.

3. Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. He has particular skill of practicing as professional. He becomes an expert due to regular practice in specific field.

4. Registration : Professionals need to register themselves with their associations. For example, Lawyers must get registered themselves with India Bar Council, Chartered Accountants with Institute of Chartered Accountant of India, where as for managers there is no need of such registration with any body. They can take membership of ‘Chambers of Commerce’ which give them membership benefits.

5. Restricted Entry : The entry in any profession is restricted. It needs formal education e.g. Lawyers, Architect, Interior designer, Doctors, Chartered Accountant, etc. However, such compulsion is not there for working as a manager.

8. Answer the Following

Question 1.
What is management? State the characteristics or features of management.
Answer:
Management and its features:
(A) Meaning:
The word management is derived from the Latin word ‘manus’ which means ‘hands.
It means management is handling some activity.
Many thinkers said that management means a fine consideration of co-ordinating and controlling the work either from direct individual or from a group.

(B) Definitions:
Some definitions of management given by different management thinkers as follows:

1. “Management traditionally can be defined as “an art of getting things done through others. ” – Mary Parker Follet
2. “To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
3. “Management is co-ordination of resources through the process of planning, organizing, directing and controlling in order to attain stated objectives.” – F.W. Taylor

Following are the characteristics features of management:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(ii) Management is Intangible : Management is intangible in nature. It can’t be seen and touched. It is abstract. The principles, theories, techniques, concept are practically invisible. The result of best management can be experienced in the form of increased profit, smooth functioning of the organization and achievement.

(iii) Management is a Social Process : Management is a process because it sets objectives and takes steps to achieve them. It is said to be a social process because management is concerned with people. For example employees, shareholders, investors, customers, community, etc.

(iv) Management is a Continuous Process : Management is essential through the life of an organization. It is necessary to begin the activity, to run the activity smoothly and to control the activity. This is never ending process.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vi) Management is an Inborn Quality : Management in the older days, was considered to be an inborn quality. But with the inception of various business schools, management is a quality which can be developed if a person has the interest and perseverance.

(vii) Management is Situational: Management helps to take decisions and also to handle specific situation. The decisions are based on the principles, theories and techniques. They are applicable in certain situation only.

(viii) Management is Goal Orientated : Every business organization either small, medium or large, profit making or non-profit making, Governmental or NGOs have their own goals. When the organization achieves its desired goals, it is called success of that organisation. This success depends on proper management of all available resources. A manager takes lots of efforts to achieve these goals. So management is goal oriented.

(ix) Management is Universal : Management principles and theories are equally applicable every where and in every field like business, profession, hospital, education, politics, government administration social activities. These principles are the guidelines to the manager. They are flexible and capable of adaptation to every type of organization.

(x) Management is Group Activity : Management is defined as “getting work done through others” or “with the people in formally organized groups”. The tasks set by the organization is complied by employees, all levels of managers and even with the help of outside parties.

Question 2.
Discuss whether management is an art science or profession.
Answer:
Art:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

2. Regular Practice: Practice makes a man perfect. This is the rule applied by a manager. The more the experience, the manager will be able to meet any challenge or difficult situation with ease. He is in a position to make the required changes according to the circumstances.

3. Personal Skill: Every manager being an individual is different. A good manager must posses good skills in dealing with human beings. He should use his skill in knowing the problem, allotment of work to employees, give judgment and understanding to deal with various situations in business.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Science:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

2. Use of Scientific Methods of Observation : In science the conclusions are drawn only on the basis of scientific methods of observation. Management also uses systematic methods of data collection, verification and analysis of that collected data and interpretation of data, then a manager takes decisions in the organisation.

3. Cause and Effect Relationship : Science is based on cause and effect relationship. After using specific formulae or their combination, we get particular result in science. Management theories are also based on relationships. Fair and regular salary along with good working conditions motivates people to work hard and to give best results. Whereas, old machineries, techniques, untrained employees may not give good / excepted output to the organization.

Profession:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

2. Code of Conduct : Code of conduct means set of rules and regulations to be followed by practicing in their field. Every profession has their own code of conduct to control the activities. It emphasis on ethical practice in that profession. E.g. Chartered Accountants have to work according to ICAI, Lawyers have to follow the code of conduct framed by Bar Council of India, etc. However for managers there is no such association of managers. Generally managers follow the code of conduct based on customs and traditions.

3. Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. He has particular skill of practicing as professional. He becomes an expert due to regular practice in specific field.

4. Registration : Professionals need to register themselves with their associations. For example, Lawyers must get registered themselves with India Bar Council, Chartered Accountants with Institute of Chartered Accountant of India, where as for managers there is no need of such registration with any body. They can take membership of ‘Chambers of Commerce’ which give them membership benefits.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 7 Business Environment Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 7 Business Environment

1. (A) Select the correct option and rewrite the sentence

Question 1.
Business environment has tremendous impact on ………………..
(a) business
(b) government
(c) society
Answer:
(a) business

Question 2.
The new Industrial policy was formulated in ………………..
(a) 1947
(b) 1951
(c) 1991
Answer:
(c) 1991

Question 3.
Changes in ruling government is an aspect of ……………….. environment.
(a) political
(b) technological
(c) economic
Answer:
(a) political

Question 4.
Literacy level is an aspect of ……………….. environment.
(a) social
(b) legal
(c) political
Answer:
(a) social

Question 5.
Privatization implies reduction in the role of ……………….. sector.
(a) public
(b) private
(c) foreign
Answer:
(a) public

Question 6.
Globalization is concerned with ……………….. market.
(a) global
(b) local
(c) rural
Answer:
(a) global

Question 7.
……………….. means linking national economy to the world economy.
(a) Globalization
(b) Privatization
(c) Liberalization
Answer:
(a) Globalization

Question 8.
Environment awareness provides ……………….. signal.
(a) warning
(b) alarming
(c) soft
Answer:
(a) warning

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Globalization	(1) Profit motive
(b) Privatization	(2) 2006
(c) Liberalization	(3) Borderless economy
(d) New economic policy	(4) Service Motive
(e) Social Environment	(5) Internal factor
	(6) Disinvestment
	(7) Social Values
	(8) 1991
	(9) Abolishing license policy
	(10) GATT

Answer:

Part A	Part B
(a) Globalization	(3) Borderless economy
(b) Privatization	(6) Disinvestment
(c) Liberalization	(9) Abolishing license policy
(d) New economic policy	(8) 1991
(e) Social Environment	(7) Social Values

Question 2.

Part A	Part B
(a) Internal environment	(1) Knowledge of law
(b) Political environment	(2) Taxation policy
(c) Legal environment	(3) Technology
(d) Economic environment	(4) Traditions
	(5) WTO
	(6) Controlled by business
	(7) High cost
	(8) Ideology of political party

Answer:

Part A	Part B
(a) Internal environment	(7) High cost
(b) Political environment	(8) Ideology of political party
(c) Legal environment	(2) Taxation policy
(d) Economic environment	(3) Technology

1. (C) Write a word or a term or a phrase which can substitute each of the following statements

Question 1.
Uncontrollable factors of the business environment.
Answer:
External business environment

Question 2.
The environmental of business that includes customs and traditions, values, social trends.
Answer:
Social environment

Question 3.
The process of transferring ownership of business enterprise, agency or public service from the public service to private sector.
Answer:
Privatization

Question 4.
A boundary less worlds where there would be flow of goods, services, information, capital and people across nation.
Answer:
Globalization.

1. (D) State whether the following statements are True or False

Question 1.
External factors of business environment are controllable factors.
Answer:
False

Question 2.
Business is the product of different environmental factors.
Answer:
True

Question 3.
Business and environment are inseparable parts.
Answer:
True

Question 4.
There is no benefit of globalization on Indian economy.
Answer:
False

Question 5.
New economic policy promoted the liberal economic policy.
Answer:
True

Question 6.
There is no benefit of privatization to Indian economy.
Answer:
False

Question 7.
There is no need of consideration of the business environment factors in business.
Answer:
False

1. (E) Complete the sentence

Question 1.
The term of business environment generally refers to …………………
Answer:
External Environment

Question 2.
……………….. helps the business enterprise for overcoming challenge successfully.
Answer:
Business Environment

Question 3.
Geographical and Ecological factors are included in ………………… Environment.
Answer:
Natural

Question 4.
Literacy is the important part of ………………… Environment.
Answer:
Social

Question 5.
Stability and peace in the country includes in ………………… Environment.
Answer:
Political

Question 6.
Indian political system comprises ………………… vital institutions.
Answer:
three

Question 7.
Limited involvement of government in public sector refer to …………………
Answer:
Privatization

Question 8.
Integration of economy and society through cross country is called as …………………
Answer:
Globalization

1. (F) Select the correct option

Question 1.
In how many type environmental factors can be classified?
(Two / Three / Four)
Answer:
Two

Question 2.
Which factors of Business Environment regard as controllable?
(Internal / External)
Answer:
Internal

Question 3.
Who frames the economic policy of the business?
(Government / Business / Citizen)
Answer:
Government

Question 4.
Which economic system in known as free market economy?
(Socialist / Mixed / Capitalist)
Answer:
Capitalist

1. (G) Correct the underline word and rewrite the following sentence

Question 1.
External factors of business environment are controllable.
Answer:
Internal factors of business environment are controllable.

Question 2.
Internal factors of business are beyond control.
Answer:
External factors of business are beyond control.

Question 3.
Natural resources are related to political environment.
Answer:
Natural resources are related to natural environment.

Question 4.
Privatization helps for global village.
Answer:
Globalization helps for global village.

1. (H) Answer in one sentences

Question 1.
Which factors are included in internal environment?
Answer:
Value system, vision, mission and objective management structure, Internal power relationship, Human resources, Physical facilities, Marketing resources, etc. are the factors included in internal environment.

Question 2.
What are the powers of legislature?
Answer:
Policy making, law making, budget approving, executing control, etc. are the powers of legislature.

Question 3.
Which factor influence the economic condition of the Nation?
Answer:
Economic condition of the nation is based on the gross domestic product, per capital income, availability of capital, growth of foreign trade and strength of capital market.

Question 4.
Who possess the factors of production in socialist economy?
Answer:
In socialist economy Government possess the factors of production.

Question 5.
In which environment are the methods and techniques of production included?
Answer:
Technological environment consist of the method and technical of production.

Question 6.
When did Indian government launch New Economic Policy?
Answer:
Indian government launched New Economic Policy on 24th July, 1991.

Question 7.
What is useful to reduced political interference in industry?
Answer:
Privatisation is useful to reduce political interference in Industry.

Question 8.
How is the boundary less world possible?
Answer:
Boundary less world is possible through Globalisation.

2. Explain the following terms /concept.

Question 1.
Business environment.
Answer:
Business environment refers to the external environment which includes factor outside the business leading to opportunities or threats of the business.

According to Bayard O. Wheeler
“The total of all things external to firm and industries which affect their organization and operations is called as “Business Environment”.

Question 2.
Liberalization.
Answer:

1. Liberalization refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
2. Liberalization helps in achieving a high growth rate, easy availability of goods at competitive rates, high foreign exchange reserve, strong rupee and good industrial relation, etc.

Question 3.
Privatization.
Answer:

1. Privatization refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
2. It implies government Sectors to be sold or given to private individuals to run them.

Question 4.
Globalisation.
Answer:

1. Globalisation means integration of national economy and societies through cross country flows of information, ideas, technologies, good services, capital, finance and people.
2. It also means “boundary less world”.

Question 5.
Social environment.
Answer:

1. Modern business is a social system in itself and forms a part of the larger social system represented by society in general.
2. The class structure of the society affects the business. Such as occupation of the people, their education, income level, social status, attitude towards living, work and social relationship.

Question 6.
Economic environment.
Answer:
Economic environment comprises of economic condition, economic policies and economic system, basic economic philosophy, infrastructure, national income, money supply, saving stages in economic development and trade cycles.

Question 7.
Political environment.
Answer:

1. Government and its policies affects business firms.
2. It includes stability and peace in the country, specific attitudes of elected representative. Ideology of the political parties influences the business organization and attitudes of government officials towards business has an impact on business.
3. It comprises three vital institutions like Legislature, Government and Judiciary.

Question 8.
Internal environment.
Answer:
Internal environment compromises of policies decided by by shareholders, managers, labour unions and employees which can be controlled which helps to make specific, proper understanding in strengthening the business.

3. Study the following case/situation and express your opinion.

(1) The court passes an order to ban polythene bags as the bags are creating many environmental problems which affects the life of people in general.
(2) Society in general is more concerned about quality of life. The government decided to give subsidy to jute industry to promote this business.

Question 1.
Identify the different dimensions of business environment.
Answer:
The different dimensions of business environment are:

1. Legal environment
2. Natural environment
3. Social environment
4. Political environment
5. Economic environment

Question 2.
Comment on it.
Answer:
The different dimensions of business environment are

1. Legal Environment : Court passes order to ban polythene bags.
2. Natural Environment : The Court order will solve environmental problems which affects the life of people in general.
3. Social Environment : Society is concerned about quality of life and better standard of living
4. Political Environment : Government framed a policy to give subsidy to jute industry.
5. Economic Environment : Subsidy to Jute industry will promote business of Jute industry and this will help in economic development.

2. Anchor company manufacturing light tubes increased expenditure on Scientific Research and Development and discovered a technology that made it possible to produce an energy efficient light tubes that lasts at least twenty times as long as standard tubes. It resulted in growth and profitability of the company.

Question 1.
Identify the dimension of business environment.
Answer:
Technological Environment:
Scientific research for innovation in product increased its production and it resulted in growth and profitability of the company. Internal environment of company led to growth and profitability.

Question 2.
State importance of business environment.
Answer:
Business environment helps in determining opportunities and threats, identify firms strengths and weaknesses, continuous learning, image building meeting competition and give direction for growth.

3. Make in India is an initiative launched by the government of India. It focuses on job creation and skill development and it is in twenty five sectors of the economy. Under the initiative, brochures on these sectors and web portal were released. The initiative aims at high quality standards and minimizing the impact on environment .It also seeks to attract foreign capital investment in India.

Question 1.
Identify the dimension of business environment.
Answer:
The various dimensions of business environment referred in the above case are:

1. Political environment
2. Technological environment
3. Economic-environment

Question 2.
Comment on it.
Answer:
Make in India is the policy of government as per its ideology. As it focusing on job creation and skill development in 25 sectors of economy, it convey two values through this initiative. High quality standards and concern for environment. It also aims to attract foreign capital investment in India.

4. Distinguish between the following

Question 1.
Social Environment and Economic Environment.
Answer:

	Social Environment	Economic Environment
(1) Meaning	Social environment includes customs, traditions, values, buying habits, tastes, etc.	Economic environment comprises of economic condition, economic policies and and economic system.
(2) Factors	It includes factors such as social aspects, social trends, social values and traditions.	It includes factors like economic condition, economic policies and economic system.
(3) Supplement to	It is supplemented by cultural environment like cultural factors, values, beliefs, etc.	It is supplemented by political environment as it is influenced by political decisions or events taken by Government.
(4) Impact on business	It helps to analyze the changing social trends, taste of different social groups which helps businessmen to know the opportunities and threats.	Changes in economic policies like agricultural policy, monetary policy, etc. lead to changes in economic system and planning which helps businessmen to make changes on timely basis.
(5) Purpose	It helps to know the-needs of customer and satisfy the demand. E.g. Today health and fitness trend has created demand for products like gym, organic foods etc.	It helps in forecasting market situations and thereby making suitable business plans E.g. Stock market fluctuations affects management practices in a business Enterprise.
(6) Nature	It is dynamic in nature. Changes in trends, values, growing awareness among different social groups affects the social environment.	It is multi dimensional in character. Agriculture, infrastructure, national, per capita income, price level etc. affects the economic environment of in a country.

Question 2.
Political Environment and Legal Environment.
Answer:

	Political Environment	Legal Environment
(1) Meaning	In a country, the political system, constitutional provision, party system, events taking place time to time determines the political environment.	In a country, business can be started, regulated, controlled, expanded within legal framework of a country determines legal environment.
(2) Factors	Political stability, peace in the country, specific attitudes of elected representative, etc are the factors which affects political environment.	Various laws are implemented from time to time with amendments in order to control and direct the business.
(3) Inter relation between environment	Political environment and economic environment are closely connected with each other.	Legal environment and regulatory environment goes together hand-in-hand in modern business environment.
(4) Impact on business	Ideology of the political parties influences the business organization.	Provides control, direction, expansion to the business organization.
(5) Purpose	Political stability creates strength, confidence to various interest groups and investors in long term projects.	Separate laws implemented time to time to safeguard and protect the interest of various groups such as busines’s organization, workers, consumers, etc.
(6) Effect of changes in environment	Political instability effects the business organisation adversely. Business policies are amended due to political issues, events etc. prevailing in country.	Excessive controls, implementation of laws, rules and regulations may create problem in overall development of business organizations.

Question 3.
Liberalization and Privatisation.
Answer:

	Liberalisation	Privatisation
(1) Meaning	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
(2) Aim	It aims to bring flexibility in business operations by creating environment for growth and expansion.	It aims at promoting efficiency, increase productivity, profitability.
(3) Need	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.	To achieve quick and logical business decisions aimed at commercial success of organisation.
(4) Measures adopted	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MOU.
(5) Benefits to Host Company	It results in, high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.	It results in profitability, production of superior quality products and services, self motivation, etc.
(6) Benefits to Consumers / Traders	Optimum use of resources available at global level, easy availability of goods at competitive rates.	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.
(7) Positive Effect	Removing restriction on taxations, abolishing industrial licensing system leads to expansion and growth of new business opportunities.	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.
(8) Adverse Effect	It leads to social problems like urbanization and industrialisation, closure of domestic firms due to liberalised imported products, etc.	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.
(9) Inter Relationship	Liberalisation leads to privatisation and globalization.	Privatisation is a part of the process of globalization.

Question 4.
Globalization and Liberalization.
Answer:

	Globalization	Liberalization
(1) Meaning	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
(2) Aim	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.	It aims to bring flexibility in business operations by creating environment for growth and expansion.
(3) Need	To overcome the problem of declining domestic demand and to ensure free trade.	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.
(4) Measures adopted	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.
(5) Benefits to Host Company	It results is expansion of investment. It promotes foreign trade and brings foreign exchange	It results in high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.
(6) Benefits to Consumers / Traders	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.	Optimum utilisation of resources at global level easy availability of goods at competitive rates.
(7) Positive Effect	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.	It results in removing restriction on taxations, abolishing industrial licensing system leading to expansion and growth of new business opportunities.
(8) Adverse Effect	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.	It leads to social problems like urbanization and industrialisation. Closure of domestic firms due to liberalised imported products.
(9) Inter Relationship	Globalisation includes liberalisation and privatisation.	Liberalisation leads to privatisation and globalisation.

Question 5.
Privatization and Globalization.
Answer:

	Privatization	Globalization
(1) Meaning	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.
(2) Aim	It aims at promoting efficiency, increase productivity, profitability.	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.
(3) Need	To achieve quick and logical business decisions aimed at commercial success of organisation.	To overcome the problem of declining domestic demand and to ensure free trade.
(4) Measures adopted	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MoU.	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.
(5) Benefits to Host Company	It results in profitability, production of superior quality products and services, self motivation etc.	It results is expansion of investment. It promotes foreign trade and brings foreign exchange
(6) Benefits to Consumers / Traders	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.
(7) Positive Effect	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.
(8) Adverse Effect	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.
(9) Inter Relationship	Privatisation is a part of the process of globalization.	Globalisation includes liberalisation and privatisation.

5. Answer in brief.

Question 1.
State any four features of Social environment.
Answer:
The four features of social environment are as follows:

1. Customs and Traditions : This decides the celebration of various festivals like Diwali, Id, Christmas and its effect on business.
2. Social Institutions and Groups or Social Aspects: Literacy level, educational system, cultural heritage standard of living of the various groups of people affect the social environment of business.
3. Social Values : Cultural and social justice, national integration affect the business. Beliefs also help the business to meet the customer needs.
4. Social Trends : Now a days people have become health conscious and therefore there is a sale of various types of goods like organic food, sugar free products etc.

Question 2.
Describe any two factors of economic environment.
Answer:
Economic environment has direct influence on business.

1. The Economic System : Economic activities depend upon the nature of economic system which are:
   (a) Capitalist economy : e.g. U.S.A. (b) Socialist economy : e.g. China (c) Mixed economy : e.g. India
2. Economic Policies : The various economic policies of the government has a direct influence on economic environment. For e.g. import and export policy, educational policy, agricultural policy, industrial policy, foreign investment policy, etc.
3. Economic Condition : The stage at which the growth stands, employment rate, rate of interest, etc. All those determine development of the country.

Question 3.
State any four features of globalization.
Answer:
Features of globalization are as follows:

1. Purchase and sale of goods and services from one country to another.
2. Opportunity to start and do business in any part of the world.
3. Reduction in gap between domestic and international market.
4. Possibility of quick and rapid economic development.
5. Enhances the opportunity to exchange new ideas and technology across the nations.

Question 4.
State any four reasons of the need for privatisation.
Answer:
There is need for privatisation because of the following reasons:

1. To bring more efficiency in the working of business firms.
2. To reduce political interference in the working of the firms and companies.
3. To improve the quality of products
4. To bring efficiency in management of the organization.
5. To create discipline in capital market.

6. Justify the following statements.

Question 1.
External factors of business environment are beyond control.
Answer:

1. Factors which influences the business policy of an organization can be divided into internal and external factors.
2. Business has no control over external forces.
3. These are those factors which provide opportunities or pose threats to the organization.
4. Factor such as social customs, values, economic policies, technological development, political ups and down, legislation together constitute political, social, economic, legal and technological diversions of business, hence, they are not in the hands of business organizations.
5. Internal factors are controllable and business unit can modify their plans, policies, etc.
   (Students can give example of social, political, legal environment to justify further)

Question 2.
Business firm should be aware of the changes in society.
Answer:

1. The success of every business depends on adopting itself to the environment in which it functions. Modern business is rightly termed as socio-economic activity.
2. There is reciprocal relationship between business and society.
3. Business is affected by class structure of the society which depends upon factors such as occupation its own culture, income, etc.
4. Every society depends its own culture, customs, tradition, values, ethics, etc. social trends are also changing fast. For e.g. large number of people are eating fast food and go to gyms. So many fast food outlets and gyms are coming up in towns and cities.
5. Social values and traditions such as celebration of Diwali, Eid, Christmas also affect business.

Question 3.
Political stability builds up confidence among business people.
Answer:

1. Business firms are affected by the government and its policies.
2. Political force decide the nature of business, device performance and projects for development.
3. Political environment includes stability and peace in the country. Political stability builds confidence among different interest groups and investors because long term policies and projects will be started by the government and if the government keep on changing every six months or in a year.
4. This will impact long term decisions of development for the country, because political parties identify forms their decision making, hence if a government gets its full tenure of 5 years, it can complete its projects and plans and win the confidence of the people.

Question 4.
Economic environment has direct influence on business.
Answer:

1. Economic environment consists of economic condition, economic policies and economic system along with basic economic philosophy, infrastructure, national income, money supply etc.
2. Economic condition is based on GDP, per capital income, availability of capital, growth of foreign trade and capital market.
3. Where as economic polices framed by the government from time to time changes with changes in the government.
4. Every business has to function within the policy framework and responds to changes accordingly.
5. This relates to Industrial Policy, monetary policy, foreign investment, EXIM policy education policy etc. Also the scope of private business and government regulation depends on the economic system such as capitalist economy, Socialist or mixed economy which impacts business decisions.

Question 5.
Social trends provide business opportunities.
Answer:

1. Society and business are inter-dependent.
2. Class structure such as occupation,education,income level social status, attributes etc impact business decisions.
3. Social trends are any type of activity that is practised in the society as a whole.
4. Trends can be for short period or long lasting. As technology progresses the changes in social trends do changes.
5. Companies use their ability to anticipate the social change as part of their business marketing policy, to grab the business opportunities.

Question 6.
An adequate knowledge of rules and regulations is essential for better business performance.
Answer:

1. Any business in a country can be started, regulated and controlled within the legal framework of a country.
2. Separate set of laws are framed by all countries to control and direct the business affairs.
3. Knowledge of law, rules and relegations helps the business managers to take prompt decision in making business policies.
4. Various laws are implemented for influencing the business, protect and safeguard the business, as well as the consumers.

7. Attempt the following

Question 1.
Importance of business environment.
Answer:
Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(ii) Opportunities and Threats : Study of business environment enables a business enterprise to visualise future problems that can arises as also future business prospects in advance. Deriving benefit from honourable business opportunities is possible as also it can face the problems boldly. Awareness of environment help an organisation to take advantage of such opportunities instead of loosing them to competition. It helps organisation to identify various threats on time and serves as an early signal.

(iii) Competition : Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies and strategies for the future course of action.

(iv) Utilization of Resources Optimally : Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.

(v) Strength and Weakness Identification : With the change of technology and global development it helps to analyze individual strength and weakness of the business understanding the challenges, appropriate decisions are taken on timely basis.

(vi) Knowledge : Study of environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enable the development of a formidable business wait.

(vii) Image Building: Environment study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, business can create goodwill and reputation for itself.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Social Environment.
Answer:
Business is a economic and social activity. It has to produce goods according to the requirement of the customers. Satisfying customer is the basic need of business. Therefore, while manufacturing or producing goods, business has to take into consideration social factors like traditions, customs, education, habits, values, life styles, thinking and earnings of the people of country. Changes in social environment are a must and management has to take into consideration these factors which determines the following aspects.
1. Social Aspect : Literacy level, educational system, tradition and customs, transition of labour, etc. are the important aspect of social environment. It helps to analyze the needs of the people and accordingly the business opportunities are identified.

2. Social Trends : Business practices and procedures must be in tune with the social beliefs. Growing number of working women and changing life style have increased the demand for household appliances in India.

3. Social Values : Cultural and social values, (social justice, national integration, etc.), family organization and caste structure, social institutions and groups, are taken to consideration while making practices and procedures of business.

4. Traditions : Customs and traditions. (Diwali, Id, Christmas, etc.) also has an effect on the business. The businessmen have to be more responsible towards the demand of the people accordingly.

Question 3.
Economic environment.
Answer:
1. Economic environment comprises of economic condition economic policies and economic system which are the important factors influencing development and trade cycles, national income, etc.

2. Economic Condition : If refers to present state of economy of a country or region based on gross domestic product, per capita income, availability of capital, etc.

3. Economic Policies: Government frames economic policies time to time influencing the business activities. In order to controls the business in the interest of the politics, e.g. – Industrial policy, monetary policy, foreign investment policy etc.

4. Economic System: It refers to the scope of private business and extent of government regulation on economic activities determines the nature of economic system i.e. – capitalist social or mixed economic.

Question 4.
Political Environment.
Answer:
Political dimensions or environment includes the country’s political system or its ideologies or condition i.e. dictatorship or democracy or communist government or socialistic government. It indicates the general stability and peace in the country and attitude of the elected government representatives towards business.

Political stability builds up confidence among business people to invest in long-term projects for the growth of the economy. In India we have adopted mixed economy and growth rate often remains moderate. Indian political system comprises three vital institutions like Legislature, Government and Judiciary.

1. Legislature : legislature is very powerful force that decides the nature of business, programmes, project, for the development of the country through policy making, law making, budget approving, etc.
2. Government : The framework of policies are implemented by government which effects the business organization to under take the responsibilities of the society.
3. Judiciary : It determines the work of executives to carry out the policies in a systematic manner, in order to settle relationship between citizens and the government.

Question 5.
Impact of new economic policy on business and industry.
Answer:
(A) Introduction : On July, 1991, the Government of India announced its New Industrial Policy. It brought about radical changes in the Economic Policy. The three main pillars of Economic reforms are L – P – G (Liberalisation, Privatisation and Globalisation). The main purpose was to modernise India’s Industrial system, implement new techniques, remove unproductive control, encourage private investment and integrate our economy with the global economy.

(B) Impact of changes in Government Policy on Business and Industry:
1. Budgetary Support: The Central Government’s budgetary support for financing the public sector outlays has declined over the years. In order to survive and grow, PSUs have to be more efficient and self sufficient so as to compete with private sector.

2. Increase in Competition : Competition for Indian firms has increased due to the changes in the rules of industrial licensing and entry of foreign firms, for e.g. Service Industries like Insurance, Banking, Telecommunications, Hotel and Airlines, etc. which were earlier in the public sector are now facing competition from private players such as Bajaj Alliance, Max Life, Star Life, Insurance, low cost airlines like Indigo, etc.

3. New Trade Policy : The new trade policy has helped the Indian Firms to enter into foreign markets and earn the foreign exchange required for importing raw materials, spare parts and components they needed for keeping their production lines going.

4. Demanding Customers : Today’s market is customer oriented as customers are well informed and there is growing awareness among them about the malpractices adopted by traders, consumer rights, consumer education and so on. Moreover, competition in the market gives the customer wider choice in purchasing good quality product and makes customer more demanding.

5. Need for Human Resource Development : New technologies require expert knowledge and skill in various fields. Moreover, newer markets made it compulsory for companies to acquire trained personnel with high degree of competence and commitment. Hence, there is a need for well trained staff and thereby develop human resources.

6. Change in Technological Environment : Increased competition and advancements in the field of technology have forced the business units to develop new ways to survive and grow in the market and keep pace with latest technological developments.

7. Change in the Concept of Marketing : Earlier business organisations were production oriented but due to fast changing business world it has now become market oriented. This changed to societal concept where needs of society are kept in mind by the producers. The latest is relationship marketing whereby it is not only producing goods for consumers but maintaining long term relationship with them so as to sustain them.

8. Answer the following

Question 1.
What is business environment? Explain the important of business environment.
Answer:
(A) Business Environment:
A business is defined as buying and selling activity to generate income. Business consists of several interrelated and interacting elements. Business is an economic and social activity of the society. Society is an integral part of the business and its interest cannot be ignored.

Business environment consists of economic, social, legal, technological and political situation. Business obtains money, material, machinery and manpower and other resources from environment.
According to B. O. Wheeler – Business environment is “the total of all things external to firms and individuals which effect their organisation and operations”.
According to Oxford English Dictionary – “Business Environment refers to those aspects of the surroundings of a business enterprise which influence or effect its operations and determine its effectiveness.”
Basically business environment consists of all internal and external factors that influence the nature and scope of business activity.

(B) Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(ii) Opportunities and Threats : Study of business environment enables a business enterprise to visualise future problems that can arises as also future business prospects in advance. Deriving benefit from honourable business opportunities is possible as also it can face the problems boldly. Awareness of environment help an organisation to take advantage of such opportunities instead of loosing them to competition. It helps organisation to identify various threats on time and serves as an early signal.

(iii) Competition : Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies and strategies for the future course of action.

(iv) Utilization of Resources Optimally : Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.

(v) Strength and Weakness Identification : With the change of technology and global development it helps to analyze individual strength and weakness of the business understanding the challenges, appropriate decisions are taken on timely basis.

(vi) Knowledge : Study of environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enable the development of a formidable business wait.

(vii) Image Building: Environment study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, business can create goodwill and reputation for itself.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Explain the new economic policy in details.
Answer:
The new economic policy was introduced by the Government on 24th July, 1991, on the failure of the earlier Industrial policy prevailing in India.
The new policy was known as LPG i.e. Liberalisation, Privatisation and Globalisation. This was the brain child of the Prime Minister P. V. Narasimha Rao and the finance minister Dr. Manmohan Singh.

(i) Liberalisation:
It means to liberate the industry, trade and commerce from the unnecessary restrictions and regulations that curtailed the freedom of enterprise.
Liberalisation has helped the Indian economy to open up and allowed the entry of foreign business in India. The interaction with the world has happened after the 1991 policy.

Liberalisation policy has brought about the following measures:

1. Encouraging Direct Foreign Investment.
2. Wide Choice of products and services enjoyed by the customers.
3. Reduction in control of Foreign Exchange.
4. Cost of products, price and quality in tune to the global markets.
5. Changing the approach towards industrial sickness.
6. Production of quality products to meet the competitive markets.
7. Freedom to choose the Scale of business.
8. Reduction in tax rates, tax holidays, etc.
9. Encouraging new technology, technological upgradation and foreign collaboration.
10. I mport of machinery, goods and other services on easy terms.
11. Abolishing licensing system for most of the industries.
12. Opening telecommunication sector.

Liberalisation has thus made the country achieve high growth rate, made the rupee stronger and helped good industrial relations.

(ii) Privatisation:
Privatisation is a process of transferring ownership of business, enterprise agency or public service from the public sector (government) to the private sector.
Features of Privatisation are:

1. To provide variety of business units to consumers.
2. To ensure less political interference in running the business.
3. To bring about more accountability.
4. To reduce labour problem.
5. To bring about a market oriented approach.
6. To make competition more intense.
7. To bring about more efficiency.
8. To maintain capital market discipline.

The government of the country has followed a disinvestment policy.

Disinvestment means:

1. When there is a sale of a public undertaking in full or part of private sector without transferring the ownership to private sector.
2. The management and control is transfered to public undertaking e.g. Maruti Udyog Ltd., SAIL, ONGC, etc.
3. Improvement in the performance of the industries through Memorandum of Understanding (MoU). Privatisation helps the private sector to be efficient result oriented, productive and active. Capitalist countries like America and Japan have followed privatisation.

(iii) Globalisation:
When the operation and organization of business activities are on a global scale, it is called as Globalisation. It is integration of business activities by considering the entire world is one market.

In short globalisation means a boundary less world, where there would be a free flow of goods, services, information, capital and people across nations. Globalisation has effect on socio-economic and political sphere of life.

Features of Globalisation:

1. Buying and selling goods from/to any country is possible due to globalisation.
2. Establishing manufacturing, production and distribution facilities in any part of the world.
3. Freedom to set up’ and operate business in any part of the world.
4. Render faster economic development of any country.
5. Exchange of new ideas and technology across nations.
6. Narrowing differences between domestic and international market.
7. Direct Foreign private participation in the industrial development of any country.

Thus it could be seen that globalisation is an evolutionary concept. Through the policy of 1991 the government moved the country to this globalisation pattern.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 6 Institutes Supporting Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 6 Institutes Supporting Business

1. (A) Select the correct option and rewrite the sentence

Question 1.
Small Industrial Development Bank of India (SIDBI) was established in …………………
(a) 1989
(b) 1990
(c) 1991
Answer:
(b) 1990

Question 2.
SIDBI was established under the Small Industrial Development Bank of India Act, …………………
(a) 1988
(b) 1992
(c) 1996
Answer:
(a) 1988

Question 3.
………………… is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector in India.
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(c) SIDBI

Question 4.
………………… came into existence on July 12, 1982
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(a) NABARD

Question 5.
A Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of …………………
(a) Kothari
(b) Shivaraman
(c) Rangrajan
Answer:
(b) Shivaraman

Question 6.
All India Khadi and Village Industries Board was set up in the year …………………
(a) 1953
(b) 1949
(c) 1948
Answer:
(a) 1953

Question 7.
In April ………………… KVIC was established.
(a) 1955
(b) 1953
(c) 1957
Answer:
(c) 1957

1. (B) Match the pairs

Question 1.

Part A	Part B
(i) SIDBI	(a) 1944
(ii) NABARD	(b) 1990
(iii) World Bank	(c) 1988
(iv) Grameen Bank	(d) 1983
(v) KVIC	(e) 1982
	(f) 1957
	(g) 1932
	(h) 1956
	(i) 1912
	(j) 1960

Answer:

Part A	Part B
(i) SIDBI	(b) 1990
(ii) NABARD	(e) 1982
(iii) World Bank	(a) 1944
(iv) Grameen Bank	(d) 1983
(v) KVIC	(f) 1957

1. (C) Give one word/phrase/term

Question 1.
Life blood of business.
Answer:
Finance

Question 2.
Principal financial institution of promotion of the Micro, Small and Medium Enterprise (MSME) sector in India.
Answer:
SIDBI

Question 3.
Advisor and mentor for MSMEs
Answer:
SIDBI

Question 4.
Wholly owned subsidiary of IDBI was set up in July 1999, is providing venture capital.
Answer:
SIDBI Venture Capital Ltd. (SVCL)

Question 5.
Digital initiative by SIDBI launched on March, 17th, 2016
Answer:
SIDBI Startup Mitra,

Question 6.
The apex institution for agricultural finance.
Answer:
NABARD

Question 7.
The Bangladeshi economist, known as the Father of Micro-finance.
Answer:
Dr. Muhammad Yunus

Question 8.
An international organization dedicated to providing finance, advice and research to developing nations.
Answer:
World Bank

1. (D) State True or False

Question 1.
Small Industrial Development Bank was established on 2nd April, 1990.
Answer:
True

Question 2.
SIDBI has its head office at Mumbai.
Answer:
False

Question 3.
SIDBI is not working towards sustainable development of MSME’s in India.
Answer:
False

Question 4.
SIDBI, Startup Mitra scheme is launched on March 17th, 2016.
Answer:
True

Question 5.
NABARD came into existence on July 12, 1982.
Answer:
True

Question 6.
The NABARD has been recognised as the apex institution for financing large scale industries.
Answer:
False

Question 7.
KVIC is actively working for planning, promotion and production of Khadi as well as in setting up of village and rural industries of India.
Answer:
True

Question 8.
Dr. Muhammad Yunus is known as the ‘Father of Rural Banking’.
Answer:
False

Question 9.
Self Help Group is a large group of homogeneous individuals.
Answer:
False

1. (E) Complete the sentences

Question 1.
The lifeblood of a business is …………………
Answer:
Finance

Question 2.
Micro, Small and Medium Enterprises (MSME’s) are focused domains for …………………
Answer:
SIDBI

Question 3.
SIDBI takes structural initiatives to resolve the financial and non-financial hurdles of …………………
Answer:
MSMEs

Question 4.
SIDBI is established to provide short-term and long-term finance to
Answer:
MSME’s

Question 5.
‘SIDBI Startup Mitra’ launched on …………………
Answer:
March 17th, 2016

Question 6.
To improve accessibility of credit and handholing services to MSME’s, SIDBI has launched the …………………
Answer:
Udyami Mitra

Question 7.
NABARD came into existence on …………………
Answer:
July 12th, 1982

Question 8.
Khadi and Village Industries Commision was set up in …………………
Answer:
1953

Question 9.
A statutory body of Khadi and Village Industries Commission (KVIC) was created with a special Act of …………………
Answer:
Parliament

Question 10.
The Grameen Bank in Bangladesh was set up in …………………
Answer:
October 1983

Question 11.
The father of Micro finance is …………………
Answer:
Dr. Muhammad Yunus

Question 12.
The World Bank came into existence on …………………
Answer:
1944 Bretton Woods Conference

Question 13.
The headquarter of World Bank is in …………………
Answer:
Washington D.C.

Question 14.
Dr. Muhammad Yunus jointly won the Noble Prize in …………………
Answer:
2006.

1. (F) Select the correct option

Question 1.
(1953, 1944, 2nd April 1990, Oct. 1983, 12 July 1982)

Part A	Part B
(i) SIDBI	—————
(ii) ————-	NABARD
(iii) KVIC	—————
(iv) —————	World Bank
(v) Grameen Bank	—————

Answer:

Part A	Part B
(i) SIDBI	2nd April 1990
(ii) 12 July, 1982	NABARD
(iii) KVIC	1953
(iv) 1944	World Bank
(v) Grameen Bank	Oct. 1983 Grameen Bank

1. (G) Answer in one sentence

Question 1.
What is SIDBI?
Answer:
SIDBI is Small Industrial Development Bank of India, which takes initiative to resolve the financial and non-financial hurdles of MSMEs.

Question 2.
What do you mean by NABARD?
Answer:
NABARD is a National Bank for Agriculture and Rural Development, which was formed with an objective to provide and regulate credit and other facilities for the development of agriculture, small scale industries, cottage village industries, handicraft and other rural crafts and allied economic activities.

Question 3.
What is meant by Grameen Bank?
Answer:
Bank which gives small loans to landless poor women to promote self employment is called Grameen Bank.

Question 4.
What is SHG?
Answer:
SHG is a small group of homogeneous individuals who come together with the objective creating common fund through savings and meet members emergency needs by providing collateral free loan.

Question 5.
What do you mean by World Bank?
Answer:
The World Bank is an international organization dedicated to provide finance, advice and research to developing nations.

Question 6.
WhatisMSME’s
Answer:
MSME’s are Micro, Small and Medium Enterprises, which play an important role in promoting entrepreneurship among women and economically weaker section in the country.

Question 7.
What is Udyami Mitra?
Answer:
‘Udyami Mitra’ is the digital portal launched by SIDBI, to improve accessibility of credit and handholding services to MSMEs.

1. (H) Correct the Underlined word and rewrite the following sentences

Question 1.
SIDBI is established to provide only long-term finance to the MSME’s.
Answer:
SIDBI is established to provide short-term and long term finance to the MSME’s.

Question 2.
The NABARD has been recognised as the apex institution for industrial finance.
Answer:
The NABARD has been recognised as the apex institution for Agricultural finance.

Question 3.
Khadi was symbol and the spirit of self reliance in post independence India.
Answer:
Khadi was symbol and the spirit of self reliance in pre independence India.

Question 4.
Self help group are based on the fundamental principle of to earn profit.
Answer:
Self help group are based on the fundamental principle of ‘helping each other’ and “unity is strength”.

Question 5.
World Bank provides high interest loan.
Answer:
World Bank provides low interest loan.

2. Explain the following terms/concepts

Question 1.
Udyami Mitra.
Answer:

1. This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s.
2. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches.
3. The entrepreneurs can select and apply for preferred banks.
4. They can select suitable branch, track their application status and avail multiple loan benefits.

Question 2.
KVIC.
Answer:

1. KVIC was established to take over the work from All India Khadi and Village Industries Board.
2. KVIC is working for planning, promotion and production of Khadi and setting up of village and rural industries in India.
3. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas.

Question 3.
World Bank.
Answer:

1. The World Bank is an international organization formed to provide finance, advice and research to developing nations.
2. It was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF)
3. The head quarter of World Bank is in Washington D.C.
4. It provides financial as well as technical assistance to the member countries of the world.
5. It comprises of two institutions namely – the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Question 4.
Self Help-Groups
Answer:

1. Self Help Group (SHG) is a voluntary association.
2. It is a small homogeneous group of people who come together with the objective of creating common fund through small savings and meet members emergency needs by providing collateral free loan at reasonable rate.
3. Many SHG are linked to banking institutions for getting micro-credit.
4. All decisions are taken collectively by SHG members.

Question 5.
Collateral Free Loan
Answer:

1. Collateral free loan are SHGs small loans provided to the poor individuals for undertaking self-employment projects.
2. Loans are given on the principle of mutual trust and either minimum or no documentation.
3. The rate of interest generally charged are higher than the interest charged by banks.
4. It saves the poor individuals from the clutches of local money lenders.

3. Study the following case/situation and express your opinion

Anand completed his MBA and wants to start a Small Scale Industry. He is good at using technology. He has very good business idea in mind and looking for a lender or investor.

Question 1.
Who is promoter or businessman in this case?
Answer:
A person who gets the idea of starting the business enterprise is called as promoter or businessman. In the above case Anand is promoter or businessman.

Question 2.
What is full form SSI?
Answer:
The full form of SSI is Small Scale Industry.

Question 3.
Suggest digital ways to find lender or investor for this initiative
Answer:
SIDBI has started Digital initiatives / Digital ways to find lender or investor. For this initiative I can suggest the following ways:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks on one platform. It helps in financing and development of new entrepreneurs.

(b) Udyami Mitra:
This is a portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status and avail multiple loan benefits.

4. Answer in brief

Question 1.
State any four features of NABARD.
Answer:
Features of NABARD:
(i) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(ii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iii) Provides Credit for Rural Development : It takes initiatives in the development and promotion of different activities in rural area by providing funds to State governments. It also provides refinancing for upliftment of weaker section of the society. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(iv) Financing Rural Industries : It provides refinancing facility to small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 2.
State four objectives of KVIC.
Answer:
Objectives of KVIC :
(i) Development of Khadi and Other Village Industries : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. It identifies the potential for the development of rural industries and undertakes the valuable task of promoting and developing locally operating village enterprises.

(ii) Special Objective : KVIC has a special objective of providing employment. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas. It plays a role of co-ordinator with other agencies engaged in rural development.

(iii) Economic Objective : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. KVIC receives fund from the Ministry of MSMEs for effective implementation of various programs and schemes. It helps in producing saleable articles which helps the economic development of the country.

(iv) Wider Objective : It has a wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

Question 3.
Write any four features of World Bank.
Answer:
Features of World Bank:
(i) Organization and Structure : The organization of bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank. The board consists of one Governor and an Alternative Governor appointed for five years by each member country. The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest of the 15 members are elected by the remaining countries.

(ii) Goals : The World Bank Group has two goals to be achieved by 2030.

• To end extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
• To promote shared prosperity by fostering the income growth of the bottom 40% for every country.

(iii) Innovative Knowledge Sharing : World Bank offers support to developing countries through policy, advice, research and analysis and technical assistance. Analytical works of World Bank often helps developing countries. It also helps in capacity development of the developing countries. World Bank also sponsors, host or participates in many conferences and forums on issues of development.

(iv) Social Development : Social Development focuses on the need to “put people first” in development process. The World Bank work with governments, communities, civil societies, the private sector and the marginalized for the cause of social development. Social Development promotes economic growth and leads to higher quality of life.

Question 4.
Describe any two features of Self Help Groups.
Answer:
Features of Self Help Groups:
(i) Democratic Set up : SHG is group of the members, for the members and by the members. Every member of the group actively participates in the functioning of SHGs. Members are responsible for their own future by organizing themselves into SHGs. They elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(ii) Collateral Free Loan : SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation. Generally the rate of interest are higher than the interest charged by banks. It saves the poor individuals from the clutches of local money lenders. The repayment of loans is ensured timely as all members of group are responsible for collecting repayment amount from the members who borrowed the loan.

Question 5.
Describe any two features of SIDBI.
Answer:
Features of SIDBI:
(i) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It is principal financial institution for micro, small and medium sector units. It also co-ordinate the functions of institutions engaged in financing MSME’s. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs.

(ii) Advisory Function : SIDBI also works as advisor and mentor of MSMEs. It helps MSMEs in expanding marketing channels for the products both in domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

5. Justify the following statements

Question 1.
SIDBI acts as an institute for promotion of MSMEs
Answer:

1. There are many efforts taken by SIDBI to emerge as a brand which is customer friendly towards MSME’s.
2. It facilitates and strengthens credit flow to MSME’s.
3. It identifies financial and developmental gaps in the MSME’s and take efforts to resolve the same.
4. SIDBI has dedicated its resources towards evolution of a vibrant ecosystem.
5. SIDBI has taken steps for technological upgradation and modernization of existing MSME’s
6. Thus, we can say that SIDBI acts as an institute for promotion of MSME’s.

Question 2.
SIDBI provides different types of financial and non-financial services through its subsidiaries.
Answer:
The following are the subsidiaries of SIDBI that provides financial and non-financial services:
(i) SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering and information technology.

(ii) Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit facilities are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.

(iii) SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Brandstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is dedicated third-party rating agency and provide comprehensive, transparent and reliable ratings and risk profiling.

(iv) India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.

(v) India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and try to resolve them through its innovative mechanisms. It specially focus on the non-performing assets of MSME sector.

(vi) Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro enterprises in the country.

(vii) Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.

Question 3.
The NABARD has been recognized as the apex institution for agricultural finance.
Answer:

1. India is an agricultural country.
2. Agriculture and its allied activities act as main source of livelihood for most of the rural population of India.
3. Government of India is aware about the need of boosting institutional credit in rural economy.
4. The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take review of agricultural credit in India.
5. The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July, 12 1982 under the special Act of the Parliament, with an objective of providing credit and other facilities for the development of agriculture.
6. Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.

Question 4.
KVIC plays an important role in development of entrepreneurship.
Answer:

1. Entrepreneurship Development is one of the major functions of KVIC.
2. KVIC helps to provide additional livelihood avenues to the village communities.
3. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth. It increases the earning capacity as well as prevents migration.
4. KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
5. Thus, we can say that KVIC plays an important role in development of entrepreneurship.

Question 5.
Mutual Trust is the soul of SHG.
Answer:

1. Most of the Indian villagers are facing challenges such as poverty, illiteracy, lack of skills, health care, etc.
2. There is a need of group efforts to solve these problems.
3. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
4. Through mutual trust thousands of poor and the marginalized individuals are building their lives, their families and their society.
5. Thus, we can say mutual trust is the soul of SHG.

Question 6.
SHGs play an important role in empowerment of women.
Answer:

1. The empowerment of women through SHG’s would lead to benefits not only to the individual women but also for the family and community as a whole.
2. The SHGs empower women and trains them to take active part in socio-economic progress of the nation.
3. SHG develops saving habits among the women.
4. It enhances status of women as they participate, lead, take decisions and get benefited through collective efforts,
5. Thus, we can say that SHG’s play an important role in empowerment of women.

Question 7.
World Bank plays vital role in social development.
Answer:

1. The World Bank work with governments, communities, civil societies, private sectors and the marginalized for the cause of social development.
2. Social development promotes economic growth and leads to higher quality of life.
3. The World Bank work on social development, brings voices of the poor and vulnerable into development process.
4. World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis,
5. Thus, World Bank plays a vital role in social development.

6. Attempt the following

Question 1.
State the different forms of finance provided by SIDBI.
Answer:
SIDBI offers the following finance facilities to its customers:

1. Direct Finance : SIDBI offers direct financing to the MSMEs through financing Working Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Schemes etc.
2. Indirect Finance : SIDBI offers indirect assistance by providing refinance to banks, State Level Financial Institutions, etc. with an extensive branch network across the country.
3. Micro Finance : SIDBI offers micro-finance to small businessmen and entrepreneurs for establishing their business.

Question 2.
State the role of SIDBI in sustainable development.
Answer:
Role of SIDBI in sustainable development:

1. SIDBI helps MSMEs in creation of economic wealth while preventing ecological wealth of the country.
2. It promotes the culture of energy efficient and sustainable finance.
3. It takes initiative to enhance awareness of benefits of climate control amongst MSMEs.
4. It focuses on lending schemes, promoting investments in clean production and energy efficient technologies.
5. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

Question 3.
Explain the role of NABARD in financing rural industries.
Answer:
Role of NABARD in financing rural industries:

1. It plays an important role in providing refinance to small scale industries and other village and cottage industries.
2. It provides loans to commercial and co-operative banks to promote rural employment.
3. It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 4.
Explain the objectives of KVIC.
Answer:
Objectives of KVIC are:

1. The objectives of KVIC are broadly classified into three, i.e. social objective, economic objectives and wider objective.
2. Through social objective, KVIC aims at providing employment to the rural unemployed.
3. Through economic objective, it tries to produce saleable articles which will give promotion to KVIC products.
4. Through wider objective, it attempts to create self refinance amongst the poor and building a strong rural community spirit.

Question 5.
Explain the role of KVIC in employment generation.
Answer:
Role of KVIC in employment generation:

1. Due to massive population growth agricultural sector is losing its ability to generate additional employment in rural areas.
2. It is necessary to create employment opportunities for the fast increasing workforce in rural areas.
3. Khadi and village industries are labour intensive in nature.
4. The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.
5. It also concentrates on the betterment of rural artisans and socio-economic weaker section of the society.

Question 6.
Explain in detail democratic setup in SHGs.
Answer:
Democratic set up in SHGs:

1. SHG is group of the members, for the members and by the members.
2. It is the group which reflects the people’s real participation in the process of development.
3. Every member of the group actively participates in the functioning of SHGs.
4. Members are responsible for their own future by organizing themselves into SHGs.
5. They elect or select leader for proper functioning of the group.
6. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

Question 7.
Explain organizational structure of World Bank.
Answer:
Organizational Structure of World Bank:

1. The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members.
2. Board of Governors is the supreme policy making body of the bank.
3. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country.
4. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

7. Answer the following

Question 1.
Write important features of SIDBI.
Answer:
Important features of SIDBI are as follows:
(i) Sustainable Development : SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

(ii) Nodal/Implementing Agency : SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in upgradation, modernization and expansion of business.

(iii) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.

(iv) Advisory Function: SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

(v) Forms of Finance : SIDBI offers the following facilities to its customers:

• Direct Finance
• Indirect Finance
• Micro Finance

(vi) Digital Initiatives:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks at one platform. It helps in financing and development of new entrepreneurs. It also works as knowledge partner for State and Central Government.

(b) Udyami Mitra:
This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status an avail multiple loan benefits.

(vii) Achievement of National Goals : SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in MSME sector. It promotes entrepreneurship among women and economically weaker section of the society.

(viii) Services of MSMEs : SIDBI provides different types of financial and non financial services through its associates and subsidiaries. These associates and subsidiaries are as follows:

• SIDBI Ventures Capital Ltd.
• Credit Guarantee Fund Trust for Micro and Small Enterprises
• SME Rating Agency of India Ltd.
• India SME Technology Services Limited
• India SME Asset Reconstruction Company Ltd.
• Micro Units Development & Refinance Agency

Question 2.
Write important features of NABARD.
Answer:
Important features of NABARD are as follows:
(i) Financing Rural Industries : It plays an important role in providing refinance for small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

(ii) Assistance to Financial Institutes : It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors implementation of developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations and development of human resources.

(iii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iv) Credit for Rural Development: It takes initiative in development and promotion of different activities in rural area by providing funds to State government. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(v) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(vi) Recommendations to Reserve Bank of India : It provides recommendations to Reserve Bank of India on issue of licenses to Co-operative Banks, opening of new branches by State Co-operative Banks and Regional Rural Banks.

(vii) Development of Nation: It plays an important role in the improvement of storage facilities for agricultural commodities by promoting development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in sustainable development of the country through Green, Blue and White revolution.

(viii) Supervision of Financial Institutes Engaged in Agricultural Finance :It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act, 1949. It can also undertake inspection of State Co-operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.

Question 3.
Write important features of KVIC.
Answer:
Important features of KVIC are as follows:
(i) Research and Development: To face the challenge of globalisation, KVIC has introduced a number of new products range like khadi denim jeans to cater the need of the market. The KVIC undertake trainings of sales staff for effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure genuineness of the khadi products. KVIC signed Memorandum of Understanding with National Institute of Design to provide design support, services in packaging, marketing, communication, publicity, disseminating materials and other design-related activities.

(ii) Other Functions : The KVIC is charged with the planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural area. It organizes training programme for artisans engaged in Khadi and Village Industries.

(iii) Marketing Promotion : In order to attract younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness and attraction amongst masses.

(iv) Financial Assistance : It finances the projects for rural industrialization and also provides for margin money by way of subsidy. There are provisions for higher rate of subsidies in case of beneficiaries of the weaker section, tribal areas and backward regions. KVIC also provides financial assistance to institutions and individuals for development and operation of Khadi and Village industries.

(v) Rural Development : The Khadi and Village Industries plays an important role in the development of Indian economy, particularly in the development of the rural areas. KVIC facilitates proper utilization of natural resources in rural India for generating income for the rural masses.

(vi) Employment Generation: Due to increasing workforce, it is necessary to create employment opportunities. KVIC are labour intensive in nature. The broader objective of KVIC is to promote non-farm employment opportunities in rural areas.

(vii) Entrepreneurship Development : KVIC helps to provide additional livelihood avenues to the village communities. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth.

Question 4.
Write important features of SHGs.
Answer:
Important features of SHGs are as follows:
(i) Formation : It is generally formed by NGO’s or team of the government. It is an informal group. It is recognized by the government and does not require any formal registration. SHGs have well-defined rules and by-laws, hold regular meetings and maintain records.

(ii) Membership : As per the National Urban Livelihood Mission at least 5 members are required. It is difficult to manage bigger group and members cannot actively participate. From one family only one person can become a member so that more families can participate. Mixed groups are generally not preferred.

(iii) Entrepreneurship Development : The poor individuals in rural area face scarcity of capital and managerial skills. SHGs provide them capital at low interest rate which give them opportunity to start micro enterprise. These micro enterprises use untapped manpower in the area which generates employment opportunities in rural area.

(iv) Collateral Free L oan: SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation is required to get loan. The rate of interest differs from group to group and it is little higher than the interest charged by banks. It ensures timely repayment of loans as all members of the group are responsible for collecting repayment amount from the members who borrowed the loan.

(v) Democratic Setup : SHG is group of members, for the members and by the members. It is the group which reflects the people’s real participation in the process of development. Members elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(vi) Empowerment of Women : SHG is an emerging tool for socio-economic development of women all over the world. SHGs are working effectively in promoting women entrepreneurship. SHGs empower women by providing her knowledge, finance and opportunities.

(vii) Saving Habits : The SHG encourages small saving habits at regular interval among its members. The Self Help Group inculcates the thrift and savings habit among the members of each group.

(viii) Mutual Trust : Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts. Through mutual trust thousands of the poor and marginalized individuals are building their lives, their families and their society.

Question 5.
Write important features of World Bank.
Answer:
Important features of World Bank are as follows:
(i) Organisation and Structure : The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the loan Committee and the President and other staff members. Board of Governors is the supreme policy making body of the bank. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

(ii) Innovation and Entrepreneurship : Innovation and Entrepreneurship helps in higher productivity which leads to increased economic growth. It helps in creation of employment to eradicate poverty. Young and growth oriented companies contribute in employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models and opening new markets. The World Bank brings global experience, knowledge, research and investments to help client countries develop effective innovation and entrepreneurship ecosystems, such as policies, strategies, regulations and institutions that foster investments and jobs.

(iii) Financial Products and Services : World Bank provides low-interest loans, zero to low interest credits, and grants to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management.

(iv) Innovative Knowledge Sharing : World bank sponsors, host or participates in many conferences and forums on issues of development. It also collaborates with partners on many developing issues. It also takes effort to provide access to the best global expertise to the developing countries.

(v) Goals :
The world bank group has set 2 goals to be achieved by 2030.

• End extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
• Promote shared prosperity by fostering the income growth of the bottom 40% of every country.

(vi) Social Development : Social Development focuses on the need to ‘put people first’ in development process. The World Bank’s work on social development, brings voices of the poor and vulnerable into development.