Important Questions

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Maharashtra Board 12th HSC Important Questions

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• Chapter 1 Living World Important Questions
• Chapter 2 Systematics of Living Organisms Important Questions
• Chapter 3 Kingdom Plantae Important Questions
• Chapter 4 Kingdom Animalia Important Questions
• Chapter 5 Cell Structure and Organization Important Questions
• Chapter 6 Biomolecules Important Questions
• Chapter 7 Cell Division Important Questions
• Chapter 8 Plant Tissues and Anatomy Important Questions
• Chapter 9 Morphology of Flowering Plants Important Questions
• Chapter 10 Animal Tissue Important Questions
• Chapter 11 Study of Animal Type: Cockroach Important Questions
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• Chapter 13 Respiration and Energy Transfer Important Questions
• Chapter 14 Human Nutrition Important Questions
• Chapter 15 Excretion and Osmoregulation Important Questions
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Maharashtra Board 11th HSC Important Questions

Maharashtra State Board HSC 11th Chemistry Important Questions and Answers

• Chapter 1 Some Basic Concepts of Chemistry Important Questions
• Chapter 2 Introduction to Analytical Chemistry Important Questions
• Chapter 3 Basic Analytical Techniques Important Questions
• Chapter 4 Structure of Atom Important Questions
• Chapter 5 Chemical Bonding Important Questions
• Chapter 6 Redox Reactions Important Questions
• Chapter 7 Modern Periodic Table Important Questions
• Chapter 8 Elements of Group 1 and 2 Important Questions
• Chapter 9 Elements of Group 13, 14 and 15 Important Questions
• Chapter 10 States of Matter Important Questions
• Chapter 11 Adsorption and Colloids Important Questions
• Chapter 12 Chemical Equilibrium Important Questions
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• Chapter 14 Basic Principles of Organic Chemistry Important Questions
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• Chapter 16 Chemistry in Everyday Life Important Questions

Maharashtra Board 11th HSC Important Questions

Balbharti Maharashtra State Board Class 12 Secretarial Practice Important Questions Chapter 2 Sources of Corporate Finance Important Questions and Answers.

Maharashtra State Board 12th Secretarial Practice Important Questions Chapter 2 Sources of Corporate Finance

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

Question 1.
____________ is considered as Supreme controlling factor in business.
(a) Finance
(b) Material
(c) Machinery
Answer:
(a) Finance

Question 2.
A Company with share capital must issue ____________ shares.
(a) preference
(b) equity
(c) right
Answer:
(b) Equity

Question 3.
A person who purchases shares of a company is known as ____________
(a) Bondholder
(b) Shareholder
(c) creditor
Answer:
(b) Shareholder

Question 4.
A ____________ is indivisible unit of share capital.
(a) Debenture
(b) Share
(c) Bond
Answer:
(b) Share

Question 5.
A shareholder is entitled to receive ____________ as return on investment.
(a) Dividend
(b) Interest
(c) Discount
Answer:
(a) Dividend

Question 6.
____________ shares bear ultimate risk associated with ownership
(a) equity
(b) preference
(c) deferred
Answer:
(a) Equity

Question 7.
The control of the company is vested in ____________ shareholders.
(a) preference
(b) equity
(c) deferred
Answer:
(b) Equity

Question 8.
Bonus shares are issued as free gift to ____________ shareholder.
(a) equity
(b) deferred
(c) preference
Answer:
(a) Equity

Question 9.
Debentures are issued to raise ____________ capital.
(a) owned
(b) borrowed
(c) internal
Answer:
(b) Borrowed

Question 10.
Debentures are secured through ____________
(a) agreement
(b) trust deed
(c) contract
Answer:
(b) Trust Deed

Question 11.
Overdraft facility is allowed to ____________ account holder.
(a) savings
(b) current
(c) fixed
Answer:
(b) Current

Question 12.
Small retailers rely on ____________ credit from their suppliers.
(a) cash
(b) trade
(c) bank
Answer:
(b) Trade

Question 13.
____________ is the Depository receipt traded in countries other than USA.
(a) GDR
(b) ADR
(c) Fixed Deposit
Answer:
(a) GDR

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(1) Debenture holder	(a) Owners of the company
(2) Retained profit	(b) Capitalisation of profit
(3) Public deposit	(c) Savings account holder
(4) Overdraft facility	(d) Creditor of the company
(5) Equity shares	(e) Maximum 3 years
	(f) Maximum 5 years
	(g) Current account holder
	(h) Ploughing back of profit
	(i) Permanent capital
	(j) Temporary capital

Answer:

Group ‘A’	Group ‘B’
(1) Debenture holder	(d) Creditor of the company
(2) Retained profit	(h) Ploughing back of profit
(3) Public deposit	(e) Maximum 3 years
(4) Overdraft facility	(g) Current account holder
(5) Equity shares	(i) Permanent capital

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

Question 1.
The type of shareholders who can participate in the management of the company.
Answer:
Equity shareholders

Question 2.
Name the shareholder who attends a particular meeting when his interest is affected.
Answer:
Preference shareholder

Question 3.
Shareholders who are residual claimants against assets and income.
Answer:
Equity share

Question 4.
The type of shares which can be redeemed after a certain period of time.
Answer:
Redeemable preference shares

Question 5.
Debentures that can be redeemed after a particular date.
Answer:
Redeemable debentures

Question 6.
Debentures can be converted into equity shares after a specific period.
Answer:
Convertible debentures

Question 7.
A definite promise in writing from the buyer for paying a certain amount on a specific date.
Answer:
Bill of exchange

1D. State whether the following statements are true or false.

Question 1.
Preference shareholders do not enjoy normal voting rights.
Answer:
True

Question 2.
Equity shareholders are real owners and controllers of the company.
Answer:
True

Question 3.
Retained earnings is a difficult and costly method of raising capital.
Answer:
False

Question 4.
Debenture holders get a fixed rate of dividend.
Answer:
False

Question 5.
Debentures are secured with some property of the company.
Answer:
True

Question 6.
Public deposits are a good source of long-term financing.
Answer:
True

Question 7.
A private company can collect deposits from the general public.
Answer:
False

Question 8.
Providing loans to businesses is the primary function of banks.
Answer:
True

Question 9.
Financial institutions play an important role in financing industrial firms.
Answer:
True

1E. Find the odd one.

Question 1.
An equity share, Preference share, Bond
Answer:
Bond

Question 2.
Debenture, Bond, Preference share
Answer:
Preference share

Question 3.
Public deposits, Debentures, Retained earning
Answer:
Retained earnings

Question 4.
ADR, GDR, Fixed Deposit
Answer:
Fixed Deposit

Question 5.
6, 24, 36
Answer:
24

Question 6.
Bonds, Debentures, Shares
Answer:
Shares

1F. Complete the sentences.

Question 1.
The value of share which is determined by demand and supply forces in the share market is ____________
Answer:
Market value

Question 2.
The shares which have a preferential right over equity shares in respect of dividend and return of capital are ____________
Answer:
Preference shares

Question 3.
____________ preference shares which are redeemed after a certain period of time.
Answer:
Redeemable Preference Shares

Question 4.
____________ is the value of share which is written on the share certificate and mentioned in the Memorandum of Association.
Answer:
Face value

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Debentures	(a) …………………….
(2) ……………………	(b) Public deposit
(3) Bondholder	(c) ……………………..
(4) …………………..	(d) Equity share capital
(5) Depository Receipt traded in the USA	(e) ……………………..

(Maximum 36 months, Trust Deed, ADR, Creditor, Permanent Capital)
Answer:

Group ‘A’	Group ‘B’
(1) Debentures	(a) Trust Deed
(2) Maximum 36 months	(b) Public deposit
(3) Bondholder	(c) Creditor
(4) Permanent capital	(d) Equity share capital
(5) Depository Receipt traded in the USA	(e) ADR

1H. Answer in one sentence.

Question 1.
Who can accept the deposit?
Answer:
A public company having a net worth of not less than 100 crore rupees or a turnover of not less than 500 crore rupees; has obtained the prior consent of shareholders and resolution filed with Registrar before inviting deposits can accept deposits.

Question 2.
What are the minimum and maximum periods of deposits that can be accepted by the general public?
Answer:
Minimum 6 months and maximum 36 months is the period for accepting deposits from the general public.

Question 3.
Who is given overdraft facility?
Answer:
A current account holder of a bank is given an overdraft facility.

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

Question 1.
Bondholders are owners of the company.
Answer:
Bondholders are creditors of the company.

Question 2.
Private companies can collect deposits from the public.
Answer:
Private companies cannot collect deposits from the public.

1J. Arrange in proper order.

Question 1.
Equity Shares, Preference Share, Debenture.
Answer:
Debentures, Preference shares, Equity Shares

Question 2.
Forecasting, Board Meeting, Issue of Securities
Answer:
Forecasting, Board Meeting, Issue of Securities

Question 3.
Call loans, debentures, short term loans
Answer:
Call Loans, Short term loans, Debentures

2 Explain the following terms/concepts.

Question 1.
Public Deposits
Answer:

• Public deposits are unsecured deposits invited by public limited company’s to finance working capital needs.
• Prior consent from shareholders must be with the passing of the special resolution and a copy of the same to be filed with the Registrar.

Question 2.
Bonds
Answer:

• A bond is a debt security and a formal contract to repay borrowed money with interest.
• A bondholder is a lender to the institution hence, the creditor.

Question 3.
Discounting of the bill of exchange
Answer:

• Discounting of a bill of exchange is a facility in which the holder of the bill can convert the bill to cash by discounting (giving as security) the bill with the bank before the date of maturity.
• The bank charges its commission (discounting charges) and pays the balance to the holder.
• It is an advance/short-term loan given to the holder of the bill.

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

1. There are 2 companies namely company A and company B with the same financial positions and in the same line (producing the same type of products) willing to issue debentures to more than 500 people. Company A is issuing 12% redeemable debentures to be redeemed after 5 years and Company B is issuing 12% convertible debentures which will be converted after 5 years. As an investor.

Question (a).
Which company would one like to invest in?
Answer:
As an investor one would like to invest in Company B.

Question (b).
Is it worth investing or going for convertible or redeemable? Why?
Answer:
‘It is wise and worth investing in 12% Convertible debentures as for 5 years both companies are going to give same returns but after 5 years Company B gives conversion facility due to which creditor becomes a member and can enjoy all rights of membership.

Question (c).
Is there any party to be appointed to look into the safety of debenture holders?
Answer:
As the number of persons to whom the debentures are to be issued is more than 500, there has to be a party known as Debenture Trustee to be appointed who will look into the safety of Debenture holders.

2. A public limited company wants to invite depositor from the public at large as it neither wants to dilute its shareholdings nor at present want to use its reserves.

Question (a).
Does it require prior approval from shareholders?
Answer:
Yes, prior approval from shareholders is a must.

Question (b).
What type of resolution does the company need to pass?
Answer:
The company needs to pass a special resolution for allowing to invite and accept deposits.

Question (c).
Is it necessary to file the resolution with the Registrar?
Answer:
Yes, a copy of the special resolution passed in the general meeting has to be filed before inviting the deposits.

3. A Company has an export order which is to be completed by June 15. It feels it may fall short of funds (₹ 5,00,000) as all its investments are likely to mature after July 15.

Question (a).
Does it cancel the export order?
Answer:
No, it need not cancel the order as it can approach a bank in which it has its current account for providing the funds.

Question (b).
What financial arrangements are to be made if it has to complete the order?
Answer:
It can enter into or avail overdraft facility for the required term period so that in case it falls short of funds, it can overdraw the required amount.

Question (c).
What is the amount of interest it has to pay?
Answer:
It will have to pay interest on excess amount overdrawn and for the term, it has used this extra amount.

4. A trader has drawn a bill of exchange for ₹ 50,000 on the sales made to a trader. The bill is drawn on the 1st of March 2020 for a period of 4 months. It is already a month from the date of the drawing.

Question (a).
Is there any source of finance available to him?
Answer:
Yes, a bill of exchange can act as a security and on the basis of the security, finance can be available to the trader.

Question (b).
Can he in present situation avail any facilities?
Answer:
Yes even though a month has been completed, discounting facility with the bank is available.

Question (c).
How will the charges be calculated?
Answer:
Discounting charges will be calculated on the bill amount for 3 months at the prevailing rate decided by the bank.

4. Answer in brief.

Question 1.
What are the different sources of finance?
Answer:
(i) A business organisation requires finance

• for various purposes
• at different stages
• for different term/period

(ii) The nature and size of the business determine the actual requirement of funds.

(iii) The company collects huge funds through different sources depending on the time period the funds are needed.

The various sources of finance available to the business may be as follows.
(a) External Sources: When capital is raised from outsiders/ outside the firm.

• Used for collecting initial capital

The important external sources are:

• Issue of shares
• Issue of debentures/bonds
• Public deposits
• A loan from financial institutions
• Bank Credit

(b) Internal Sources:

• The capital is made available from within the organisation.
• This is developed after a few years of profitable working of the firm.
• The important internal source of finance is retained profit also known as ‘ploughing back of profit.’
• The undistributed profit of the firm is re-invested in the business.

The external sources and internal sources can be further classified depending upon the financial requirements as:
(a) Long-term source: A business requires long-term finance for meeting fixed capital needs i.e. for a long duration.

The main sources of long term finance may be:

• Owned capital
• Debt capital

(b) Short-term source: The short-term funds are required for meeting short-term requirements i.e. working capital requirement. The short term funds are arranged by means of

• Public deposits
• Bank credit
• Trade credit
• Loans from Directors
• Advance from customers
• Native money lenders
• Government assistance

Question 2.
Describe different types of equity shares.
Answer:
The equity shares can be of two types:
(i) Equity share (with normal) with voting rights

• The voting right of such equity holders is in proportion to his shareholdings.

(ii) Equity shares with differential voting right

• Such equity shareholders shall have varying rights regarding dividend voting or otherwise in accordance with Rule 4 of Companies Act (Share Capital and Debenture) Rules 2014.
• A company can thus, issue shares with limited voting rights or no voting rights.
• They may be entitled to an extra rate of dividend.

Question 3.
What are retained earnings? What are the determinants of retained earnings?
Answer:

• A part of the profit is retained by the company in the form of the reserve fund.
• It is sum total of those profits, accumulated over the years and are reinvested in the business rather than distributed as dividends.
• The process of accumulating corporate profits and their utilization in business is called ‘self-financing or ploughing back of profit.
• It is the simple and cheapest method of raising finance by established companies.

Determinants of retained profits.
(i) Total earning of the company:

• The company can save and retain some part of the profit, if there is ample profit ‘Larger the earnings, larger the savings.’
• It is subject to the attitude of top management to determine the part of retained earnings.

(ii) Taxation policy:

• The taxation policy of the government is an important determinant of corporate savings.
• If the taxes rates charged/levied are high, a company cannot save much in the form of reserves.

(iii) Dividend policy:

• The policy of the Board of Directors as regards to the distribution of profit is another determinant.
• A conservative dividend policy helps to have a good accumulation of profit.
• The conservative policy affects the shareholders as they get dividends at a low rate.

(iv) Government Control:

• A Government is a regulatory body of the economic system of the country.
• Its policies, rules, and regulations compel the companies to work in that direction.
• A Company has to formulate its dividend policy in accordance with the rules and regulations formed by the government.

(v) Expenditure policy of the company:

• The expenditure of the company is classified as capital expenditure and revenue expenditure.
• More and more expenditure of the company towards various projects and needs will be responsible to lesser saving and lesser retain earning.

Question 4.
List out the Financial Institutions in India.
Answer:

• The Government has established special financial institutions for providing industrial finance.
• These institutions provide medium and long-term finance.
• They provide assistance to new companies as well as ongoing companies in the form of term loans, subscribing for shares and debentures, underwriting securities, and guaranteeing loans raised by cost.

(i) Development Banks:
They provide risk capital for economic development projects on a non-commercial basis. They play a crucial role in providing credit in the form of high-risk loans, equity positions, and risk guarantee instruments.
They include:

• Industrial Development Bank of India (IDBI)
• Industrial Finance Corporation of India Ltd. (IFCI)
• Industrial Credit and Investment Corporation of India Ltd. (ICICI)
• Small Industries Development Bank of India (SIDBI)
• Industrial Reconstruction Bank of India (IRBI)

(ii) Financial Institutions:
They are institutions engaged in business dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.
They include:

• Risk Capital and Technology Finance Company Ltd. (RCTC)
• Technology Development and Information Company of India Limited (TDICI)
• Tourism Finance Corporation of India Limited (TFCI)

(iii) Investment Institutions:
Institutional investors are organisations that pool together on behalf of others and invest those funds in a variety of different financial instruments and asset classes.

They may be investment funds like Mutual funds, ETFs, (Exchange Traded Funds) Insurance Funds, Pension plans as well as investment banks and hedge Funds (alternative investment designed to protect investment portfolios from market uncertainty) They include:

• Life Insurance Corporation of India (LIC)
• Unit Trust of India (UTI)
• General Insurance Corporation of India (GIC)

(iv) State Level Institutions:

• They are financial agencies at the state level for the development of medium and small-scale industries. They include:
• State Financial Corporations (SFC)
• State Industrial Development Corporation (SIDC)

Question 5.
Explain the need/Importance/Significance of Institutional Financing.
Answer:
Financial Institutions provide debt capital to business enterprises and their need and importance may be as follows:
(i) To develop a sound capital market:

• Financial Institutions help in developing a sound financial capital market.
• They help in promoting and financing business enterprises either by underwriting issues or by subscribing to shares.

(ii) To mobilize financial resources:

• Financial, institutions mobilize the scattered savings, merge them and provide the same to industries.
• Capital is reluctantly provided to new ventures.
• Financial Corporations have become important for the economic development of economically backward countries that fail to mobilize financial resources for development.

(iii) Capital Formation:

• The rate of capital formation is very low in developing countries due to low per capita income and a lack of sufficient savings.
• The gap between saving and investment is filled by financial institutions.

(iv) Planned Economy:

• Financial institutions play an important role in the planned economic development of the country.
• The projects of national importance are taken up by them.
• Scarce finance resources are utilized at the optimum level.
• Certain basic industries like iron and steel, cement, etc. are developed by the government through these institutions.

(v) Financing Small Business:

• Special Corporations like SIDBI have been established for financing small-scale industries.
• The problems related to small business are of different nature which is tackled by such setup corporations.

(vi) Foreign Exchange Need:

• Foreign exchange requirement is also one of the needs of such institutions.
• They provide long-term loans in foreign curries.

(vii) Government taxation policy:

• Business enterprises depend more on debt capital as investment/amount paid against debt is tax-deductible expenditure.
• Financial institutions provide such debts to business organisations.

(viii) Rate of Interest:

• The corporations charge a uniform rate of interest, irrespective of the amount of loan in relation to the total cost.
• This also has become the reason for heavy borrowing from such institutions.

5. Justify the following statements.

Question 1.
Public Companies can accept deposits from the public.
Answer:

• Public companies having a net worth of not less than ₹ 100 crores or a turnover of fewer than ₹ 500 crores can accept deposits from the general public.
• A meeting has to be convened to get the approval of shareholders.
• After consent, a special resolution has to pass and the same has to be filed with the Registrar.
• Advertisements in newspapers have to be given to let people know regarding the acceptance of deposits.
• Deposits thus can be accepted for a minimum period of 6 months and a maximum period of 36 months or 3 years.
• Thus, it is rightly said, that public companies can accept deposits from the public.

6. Attempt the following questions.

Question 1.
Explain any five features of equity shares?
Answer:
Features of equity shares:
(i) Permanent Capital:

• Equity shares are irredeemable shares. It is permanent capital.
• The amount received from equity shares is not refunded by the company during its lifetime.
• Equity shares become redeemable/refundable only in the event of the winding-up of the company or the company decides to buy back shares.
• Equity shareholders provide long-term and permanent capital to the company.

(ii) Fluctuating dividend:

• Equity shares do not have a fixed rate of dividend.
• The rate of dividend depends upon the amount of profit earned by the company.
• If a company earns more profit, the dividend is paid at a higher rate.
• If there is insufficient profit, the Board of Directors may postpone the payment of dividends.
• The shareholders cannot compel them to declare and pay the dividend.
• The dividend is thus, always uncertain and fluctuating.
• The income of equity shares is uncertain and irregular.

(iii) Controlling power:

• The control of a company vests in the hands of equity shareholders.
• They are often described as real masters of the company as they enjoy exclusive voting rights.
• Equity shareholders may exercise their voting right by proxies, without attending the meeting in person.
• The Act provides the right to cast vote in proportion to the number of shareholdings.
• They participate in the management of the company.
• They elect their representatives called the Board of Directors for management of the company.

(iv) Market value:

• Market value fluctuates according to the demand and supply of shares.
• The demand and supply of equity shares depend on profits earned and dividends declared.
• When a company earns huge profits, the market value of shares increases.
• When it incurs loss the market value of shares decreases.
• There are frequent fluctuations in the market value of shares in comparison to other securities.
• Equity shares are more appealing to speculators.

(v) Capital Appreciation:

• Share capital appreciation takes place when the market value of a sharp increase in the share market.
• The profitability and prosperity of the company enhance the reputation of the company in the share market and thus, facilitates appreciation of the market value of equity shares.

Question 2.
Explain any four types of preference shares?
Answer:
(i) Cumulative Preference Shares:

• Cumulative preference shares are those shares on which dividend accumulates until it is fully paid.
• That is, if the dividend is not paid in one or more years due to inadequate profit, then such unpaid dividend gets accumulated and is carried forward till next year.
• The accumulated dividend is paid when the company performs well.
• The arrears of dividends are paid before making payment to equity shareholders.
• The preference shares are always cumulative unless otherwise stated in Articles of Association.

(ii) Participating Preference Shares:

• The holders of these shares are entitled to participate in surplus profit besides preferential dividends.
• They participate in the high-profit condition of the company.
• Surplus profit here means excess profit that remains after making payment of dividends to equity shareholders.
• Such surplus profit up to a certain limit is distributed to preference shareholders.

(iii) Non-Convertible Preference Shares:

• These shares are not converted into equity shares.
• They will remain as preference shares forever till paid back.

(iv) Irredeemable Preference Shares:

• Shares which are not redeemable are payable only on winding up of the company and are called irredeemable preference shares.
• As per section 55(1) of the Companies Act 2013, the company cannot issue irredeemable preference shares in India.

Question 3.
Explain features of debentures.
Answer:
Features of Debenture:
(i) Written Promise:
A debenture is a written promise by a company that it owes a specified sum of money to the holder of the debenture.

(ii) Priority of Payment:
Debenture holders have a priority in repayment of their capital over other claimants of the company. The amounts of debentures are settled before shareholders.

(iii) Assurance of repayment:

• Debenture constitutes a long-term debt.
• They carry an assurance of repayment on the due date.

(iv) Terms of issue and redemption of Debenture:

• Debenture can be issued at par, premium, and even at discount.
• Its redemption takes place only at par and premium.

(v) Interest:

• A fixed-rate of interest is agreed upon and is paid periodically.
• The rate of interest that a company pays/offers, depends upon the market conditions and nature of the business.
• Payment of interest is a liability of a company. It has to be paid whether the company makes a profit or not.

(vi) Status of Debenture holder:

• The debenture holder is a creditor of the company.
• Debenture being loan taken by the company interest is payable on it at fixed internal and fixed-rate till redeemed/paid.
• They cannot participate in the management of the company.

(vii) No Voting Right:

• According to sec. 71(2) of Companies Act 2013, no company shall issue debenture carrying voting rights.
• Debenture holders do not have the right to vote in the general meetings of the company.

(viii) Security:

• Debenture can be secured with some property of the company by fixed or floating charge.
• Debenture holders can sell of charged property of the company and recover their money if the company is not in a position to make payment of interest or repayment of capital.

Question 4.
Explain the features of bonds.
Answer:
(i) Nature of finance:

• It is debt or loan finance.
• It provides long-term finance 5 years, 10 years, 25 years, 50 years.

(ii) Status of investor:

• The bondholders are creditors.
• They are non-owners and hence, not entitled to participate in the general meetings.
• The bondholder has no right to vote.

(iii) Return on bonds:

• The bondholders get a fixed rate of interest.
• It is payable on maturity or at a regular interval.
• Interest is paid to the bondholder at a fixed rate.

(iv) Repayment:

• A bond is a formal contract to repay borrowed money.
• Bonds have a specific maturity date, on which the principal amount is repaid.

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• Chapter 9 Control and Co-ordination Important Questions
• Chapter 10 Human Health and Diseases Important Questions
• Chapter 11 Enhancement of Food Production Important Questions
• Chapter 12 Biotechnology Important Questions
• Chapter 13 Organisms and Populations Important Questions
• Chapter 14 Ecosystems and Energy Flow Important Questions
• Chapter 15 Biodiversity, Conservation and Environmental Issues Important Questions

Maharashtra Board 12th HSC Important Questions

Maharashtra State Board HSC 12th Chemistry Important Questions and Answers

• Chapter 1 Solid State Important Questions
• Chapter 2 Solutions Important Questions
• Chapter 3 Ionic Equilibria Important Questions
• Chapter 4 Chemical Thermodynamics Important Questions
• Chapter 5 Electrochemistry Important Questions
• Chapter 6 Chemical Kinetics Important Questions
• Chapter 7 Elements of Groups 16, 17 and 18 Important Questions
• Chapter 8 Transition and Inner Transition Elements Important Questions
• Chapter 9 Coordination Compounds Important Questions
• Chapter 10 Halogen Derivatives Important Questions
• Chapter 11 Alcohols, Phenols and Ethers Important Questions
• Chapter 12 Aldehydes, Ketones and Carboxylic Acids Important Questions
• Chapter 13 Amines Important Questions
• Chapter 14 Biomolecules Important Questions
• Chapter 15 Introduction to Polymer Chemistry Important Questions
• Chapter 16 Green Chemistry and Nanochemistry Important Questions

Maharashtra Board 12th HSC Important Questions

Balbharti Maharashtra State Board Class 12 Secretarial Practice Important Questions Chapter 1 Introduction to Corporate Finance Important Questions and Answers.

Maharashtra State Board 12th Secretarial Practice Important Questions Chapter 1 Introduction to Corporate Finance

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

Question 1.
__________ said that money is an arm or leg – use it or lose it.
(a) Henry Hoagland
(b) Henry Ford
(c) Henry Fayol
Answer:
(a) Henry Hoagland

Question 2.
Investing decision is also called as __________
(a) corporate finance
(b) capital requirement
(c) capital budgeting
Answer:
(c) capital budgeting

Question 3.
Manufacturing industries have to invest __________ amount of funds to acquire fixed assets.
(a) huge
(b) less
(c) minimal
Answer:
(a) huge

Question 4.
Equity Share Capital carry __________ rate of dividend.
(a) fluctuating
(b) fixed
(c) economical
Answer:
(a) fluctuating

Question 5.
Preference Share Capital carry __________ rate of dividend.
(a) fluctuating
(b) fixed
(c) economical
Answer:
(b) fixed

Question 6.
Retained earnings is __________ source of financing.
(a) external
(b) internal
(c) capital
Answer:
(b) internal

Question 7.
__________ is acknowledgement of loans raised by company.
(a) Share Capital
(b) Corporate Finance
(c) Debentures
Answer:
(c) Debentures

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(1) Finance	(a) Fixed rate of dividend
(2) Equity Share Capital	(b) Acknowledgment
(3) Preference Share Capital	(c) Fluctuating rate of dividend
(4) Retained Earnings	(d) Term Loan
(5) Borrowed Capital	(e) Financing Decision
	(f) Money and Money Management
	(g) Ploughing back of profits
	(h) Investing Decision
	(i) Day-to-day transactions
	(j) Raising and Utilisation of finance

Answer:

Group ‘A’	Group ‘B’
(1) Finance	(f) Money and Money Management
(2) Equity Share Capital	(c) Fluctuating rate of dividend
(3) Preference Share Capital	(a) Fixed rate of dividend
(4) Retained Earnings	(g) Ploughing back of profits
(5) Borrowed Capital	(d) Term Loan

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

Question 1.
The firms are concerned with buying and selling without altering the physical form of goods.
Answer:
Merchandising firms

Question 2.
Indirect cost or expenses required to run a business.
Answer:
Overheads

Question 3.
They maintain small working capital because of continuous cash flow from customers.
Answer:
Public utility firms

Question 4.
Firms dealing with these products require a huge amount of working capital.
Answer:
Luxurious product firms

Question 5.
A contract by which one person grants possession of some of his property like land, building, machinery to another for a certain period of time.
Answer:
Lease

1D. State whether the following statements are true or false.

Question 1.
A Firm needs less working capital with a longer period of the production cycle.
Answer:
False

Question 2.
If the manufacturing cycle is long a firm requires less working capital.
Answer:
False

Question 3.
Capital structure is a security mix.
Answer:
True

Question 4.
A short manufacturing cycle requires less working capital.
Answer:
True

1E. Find the odd one.

Question 1.
Railways, Reliance, Tata power.
Answer:
Reliance

Question 2.
Debenture, Term Loans, Retained earnings.
Answer:
Retained earnings

1F. Complete the sentences.

Question 1.
The proportion of different sources of funds raised by a firm for long term finance is called __________
Answer:
capital structure

Question 2.
The acquisition and use of capital by business corporations is dealt by __________
Answer:
corporate finances

Question 3.
To decide upon the ratio of different types of capital means to decide __________
Answer:
capital structure

Question 4.
__________ bear ultimate risk associated with ownership.
Answer:
Equity shareholders

1H. Answer in one sentence.

Question 1.
What has retained earnings?
Answer:
Retained earnings are an internal source of financing. It is nothing but ploughing back of profit.

Question 2.
What are term loans?
Answer:
Term loans are borrowed capital, that carries a fixed rate of interest and is usually provided by banks and other financial institutions.

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

Question 1.
Working Capital refers to the investment in current liabilities.
Answer:
Working Capital refers to the investment in current assets.

2. Explain the following terms/concepts.

Question 1.
Equity Share Capital
Answer:
It is the basic source of business finance that carries no preference regarding the rate of dividend, i.e. its fluctuating, and repayment of capital during winding up. They bear the ultimate risk with ownership and have a residual claim during winding up.

Question 2.
Preference Share Capital
Answer:
Preference Shares Carry preferential right as to payment of dividend and have priority over equity shares for return of capital during liquidation (winding up). These shares carry dividends at a fixed rate.

Question 3.
Debenture
Answer:
It is borrowed capital, an acknowledgment of a loan raised by the company. The company has to pay interest on debentures at an agreed rate.

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

1. Pilatus company manufactures sophisticated airplanes whereas whitewood company produces plastic items, stationery products, packed food items, etc., and is labour intensive.

Question (a).
Determine their amount and composition of capital requirement.
Answer:
Pilatus company being a manufacturer of sophisticated products like aeroplanes it will need more fixed capital. Firms that make use of sophisticated products, technology require a huge investment in fixed assets.

Question (b).
Whitewood company being labour intensive, will it need more of working capital?
Answer:
Companies that are labour intensive which do not make use of the latest technology may require less investment in plant and machinery, fixed assets. They require more working capital to pay salaries and other related expenses.

Question (c).
Does the type of product manufactured and technology used, determine fixed capital or
working capital requirement.
Answer:
Yes, the type of product and technology used to determine fixed capital. Firms manufacturing sophisticated items like aeroplanes definitely require more fixed capital compared to those companies who produce plastic items, stationery products, etc.

2. Peach line is an online seller of apparel and Caramel is a manufacturing firm manufacturing tableware and exclusive dinnerware. What are their capital needs?

Question (a).
Being an online seller, will it need more or less working capital.
Answer:
Online sellers may require a limited amount of employees and inventory and therefore it may require a lower amount of working capital.

Question (b).
Caramel being a manufacturer of tableware will it need more fixed capital?
Answer:
Caramel being a manufacturing firm of tableware may require more working capital as it has to pay wages to several employees and also make payments to suppliers, maintenance of machines, rent, and other overheads.

Question (c).
Does the nature of business determine the working capital requirement?
Answer:
Yes. Peach line an online seller is selling routine consumption products like apparel would need relatively less working capital compared to Caramel, dealing in luxurious tableware products, it requires huge working capital as the sale of such items are not frequent.

4. Answer in brief.

Question 1.
Write a short note on Capital Requirements.
Answer:
Capital Requirement is the funds required to start or run the business.
The following points are to be taken into consideration:
(i) Draft a financial plan:
While drafting the financial plan, the present and future requirements of the business should be taken into consideration. A comparison of an estimated and past financial plans will help the business in future financial requirements.

(ii) Volume of capital required:
The capital required to run the business may be small or big according to the nature and size of the business. The capital required may be of the following type:

(iii) Fixed Capital:
The capital required to purchase the assets of the company is called Fixed Capital. It is the permanent capital of the business as it stays for a longer period of time. The sources of fixed capital are shares, debentures, bonds or long-term loans, etc.

(iv) Working Capital:
Working Capital is the circulating capital of the business. It stays for a short period of time. Cash is the most reliable source for all business firms when working capital is required. It helps to meet the unexpected expenses of the business.

Question 2.
Write a short note on Working Capital.
Answer:
There are two concepts related to working capital:

• Gross Working Capital – The sum total of all current assets of a business concern is termed as Gross Working Capital.
• Net Working Capital = Current Assets – Current Liabilities.
• It is the fund that is needed to run the day-to-day operations.
• It is used to purchase raw materials, payment of wages and expenses, and payment of dividends and interest to the investors.
• Working Capital enhances liquidity, solvency, creditworthiness, and reputation of the enterprise.
• Working Capital is needed for the efficient use of fixed assets.
• Working capital provides necessary funds to meet unforeseen contingencies and thus helps the enterprise run successfully during a crisis.
• It is also called “Circulating Capital”.

5. Justify the following statements.

Question 1.
Corporate finance deals with the raising and using of finance by a business corporation.
Answer:

• Business organisations require finance to start or expand their business.
• The finance manager should ensure the finance required by the firm.
• The right sources of fund should be identified that has minimum cost.
• The funds raised must be utilized effectively.
• Thus, it is rightly said that corporate finance deals with the raising and using of finance by a business corporation.

Question 2.
Working Capital is also called circulating capital.
Answer:

• Working capital is required by the business to carry out day-to-day transactions.
• Working capital helps the firm to maintain sufficient stock of raw material stock and finished goods.
• Working capital can be funded with short-term loans, deposits, trade credit, etc.
• It also helps the business to meet unexpected expenses. Thus, it is rightly said that Working Capital is also called circulating capital.

6. Answer the following questions.

Question 1.
What is Fixed Capital? Discuss the factors determining fixed capital requirements.
Answer:
Fixed capital is the capital that is used for buying fixed assets. Fixed Capital or Fixed assets stay in the business for a longer period of time. These assets are not meant for resale. It stays in the business almost permanently.
e.g. Capital used for purchasing land and building, furniture, plant, and machinery, etc.

Factors determining fixed capital requirements are:
(i) Nature of business:
The nature of business certainly plays a role in determining fixed capital requirements. They need to invest a huge amount of money in fixed assets.
e.g. Rail, road, and other public utility services have large fixed investments.

(ii) Size of business:
The size of a business also affects fixed capital needs. A general rule applies that the bigger the business, the higher the need for fixed capital. The size of the firm, either in terms of its assets or sales, affects the need for fixed capital.

(iii) Scope of business:
Some business firms that manufacture the entire range of their production would require a huge investment in fixed capital. However, those companies that are labour intensive and who do not use the latest technology may require less fixed capital and vice versa.

(iv) Extent of lease or rent:
Companies who take their assets on a lease basis or on a rental basis will require less amount of funds for fixed assets. On the other side, firms which purchase assets will naturally require more fixed capital in the initial stages.

(v) Arrangement of sub-contract:
If the business wants to sub-contract some processes of production to others, limited assets are required to carry out the production. It would minimize the fixed capital requirement of the business.

(vi) Acquisition of old assets:
If old equipment and plants are available at low prices, then it would reduce the need for investment in fixed assets.

(vii) Acquisition of assets on concessional rate:
With the view to foster industrial growth at the regional level, the government may provide land and building materials at concessional rates. Plants and equipment may also be made available on an installment basis. Such facilities will reduce the requirement of fixed assets.

(viii) International Conditions:
This factor is very significant particularly in large organisations carrying business at an international level. For example, companies expecting war, may decide to invest large funds to expand fixed assets before there is a shortage of materials.

(ix) Trend in the economy:
Economic trends also influence fixed capital requirements. During the recession, companies do not undertake expansion projects, therefore the company may not require much of fixed capital. But in anticipation of a bright future company would require additional fixed capital for expansion and modernization.

(x) Population trend:
When the population is increasing at a high rate, certain manufacturers find this as an opportunity to expand the business. For example, the Automobile industry, electronic goods manufacturing industry, ready-made garments, etc. which asks for a huge amount of fixed capital.

(xi) Consumer preference:
Industries providing goods and services which are in good demand will require a large amount of fixed capital e.g.: Mobile phone manufactures as well as mobile network providers.

(xii) Competition:
This factor is a prime element in fixed capital requirement decisions. If one competitor shifts to automation, the other companies in the same line of activity usually follow that competitor.

Balbharti Maharashtra State Board Class 11 Sociology Important Questions Chapter 8 Social Change Important Questions and Answers.

Maharashtra State Board 11th Sociology Important Questions Chapter 8 Social Change

Choose the correct alternative and complete the statements.

Question 1.
Changes in the ………………… of society have an impact on social relationships.
(direction / structure / nature)
Answer:
structure

Question 2.
Changes that take place in several directions at the same time is known as …………………
(linear / multi-linear / cyclical)
Answer:
multi-linear

Question 3.
Styles of dressing which was popular few generations ago have become popular today is an example of ………………… change.
(linear / cyclical / multi-linear)
Answer:
cyclical

Question 4.
………………… compares society to a biological organism.
(Auguste Comte / Herbert Spencer / Max Weber)
Answer:
Herbert Spencer

Question 5.
Social change is …………………, as it denotes a time sequence.
(temporal / complex / immoral)
Answer:
temporal

Question 6.
Giving up social evils like dowry or early marriage is an example of ………………… change.
(long-term / short-term / neutral)
Answer:
long-term

Question 7.
………………… change happens suddenly.
(Planned / Unplanned / Temporal)
Answer:
Unplanned

Question 8.
………………… factor is also known as geographical or natural factor.
(Cultural / Economic / Physical)
Answer:
Physical

Question 9.
The physical environment has also been adversely affected by human behaviour in the name of …………………
(displacement / conditions / development)
Answer:
development

Question 10.
…………….. factor is also known as demographic factor.
(Biological / Physical / Social)
Answer:
Biological

Question 11.
……………….. is defined as the number of females per thousand males in any given population.
(Demography / Sex ratio / Fertility)
Answer:
Sex ratio

Question 12.
………………… development is affected by size of population.
(Socio-psychological / Socio-economic / Socio-cultural)
Answer:
Socio-economic

Question 13.
………………… showed an interrelation between the teachings of Protestant religion and spread of capitalism in Europe.
(Karl Marx / Auguste Comte / Max Weber)
Answer:
Max Weber

Question 14.
……………….. conflict has resulted in class-conflict.
(Social / Economic / Cultural)
Answer:
Economic

Question 15.
The LPG Policy was adopted by the government in …………………
(1971 / 1991 / 1994)
Answer:
1991

Question 16.
………………… development is an index of the overall progress of society.
(Cultural / Technological / Physical)
Answer:
Technological

Question 17.
………………… is a means to help develop ideas, skills, solve problems and transform people.
(Technology / Knowledge / Education)
Answer:
Education

Question 18.
………………… is a statistical study of human population.
(Migration / Demography / Composition)
Answer:
Demography

Correct the incorrect pair.

Question 1.
(a) Herbert Spencer – Functionalism
(b) Emile Durkheim – Theory of Three Stages
(c) Auguste Comte – Protestant Ethic
(d) Max Weber – Organic Analogy
Answer:
(b) Emile Durkheim – Anomic suicide

Question 2.
(a) YCMOU – University Grant Commission
(b) UGC – Right to Education
(c) RTE – Post Globalization
(d) LPG – Yashwant Chavan Maharashtra Open University
Answer:
(d) LPG – Liberalization, Privatization and Globalization

Question 3.
(a) Max Weber – Cultural Factor
(b) Karl Marx – Economic Factor
(c) Demographic Factor – Technological Factor
(d) The Latur Earthquake – Physical Factor
Answer:
(c) Demographic Factor – Biological Factor

Question 4.
(a) Changes takes place everywhere – Universality .
(b) An endless process – Continuous process
(c) It is amoral – Neutrality
(d) Denotes a time sequence – Chain reaction
Answer:
(d) Denotes a time sequence – Temporal.

Identify the appropriate term from the given options.

(Physical Factor, Educational Factor, Economic Factor, Technological Factor, Demography, Biological Factor, Socio-cultural Factor, Unplanned Factor, Information Age, Planned Change, Migration, Interaction Chain Reaction, Long-term Change.)
Question 1.
Consequences of overpopulation and underpopulation.
Answer:
Biological factor

Question 2.
The growth of large scale industries.
Answer:
Economic factor

Question 3.
Online examination.
Answer:
Technological factor

Question 4.
Cultural diffusion is a source of change.
Answer:
Socio-Cultural factor

Question 5.
A huge increase in school fees, will have an impact on student enrolment
Answer:
Interactional factor

Question 6.
Eradicating strongly embedded customs like dowry, sati system, etc.
Answer:
Long-term change

Question 7.
Definite spaces marked for residences, economic zones, parks etc.
Answer:
Planned change

Question 8.
A statistical study of human population.
Answer:
Demography

Correct the underlined words and complete the sentence.

Question 1.
Emile Durkheim has given us a theory of three stages of human thought.
Answer:
Auguste Comte has given us a theory of three stages of human thought.

Question 2.
Human society is a structure with various parts unrelated.
Answer:
Human society is a structure with various parts interrelated.

Question 3.
Joint families are now undergoing significant changes is an example of functional changes.
Answer:
Joint families are now undergoing significant changes is an example of structural changes.

Question 4.
Social changes take place overnight.
Answer:
Social changes take place over time.

Question 5.
Decrease in school fees may further result in higher ‘drop out’.
Answer:
Increase in school fees may further result in higher ‘drop out’.

Question 6.
Social change is immoral.
Answer:
Social change is amoral.

Question 7.
Social programmes have to be immediately designed and implemented for the natural calamities affected person.
Answer:
Rehabilitation programmes have to be immediately designed and implemented for the natural calamities affected person.

Question 8.
Some purposeful and unplanned changes are promoted by the government and other agencies.
Answer:
Some purposeful and planned changes are promoted by the government and other agencies.

Question 9.
Social change is a result of the interaction of single factors.
Answer:
Social change is a result of the interaction of multiple factors.

Question 10.
Technological factors consist of climatic conditions, bio diversity, natural resources, etc.
Answer:
Physical factors consist of climatic conditions, bio diversity, natural resources, etc.

Question 11.
Social change is to some extent conditioned by religious factors.
Answer:
Social change is to some extent conditioned by physical factors.

Question 12.
The problems of food, housing, unemployment, poverty are problems as well as direct outcomes of changing sex ratio.
Answer:
The problems of food, housing, unemployment, poverty are problems as well as direct outcomes of changing demography.

Question 13.
Economic competition has resulted in class – conflict, increase in capitalism in the society.
Answer:
Economic competition has resulted in class – conflict, increase in materialism in the society.

Question 14.
For Conflict Theorist, culture is considered a basis for change in society.
Answer:
For Conflict Theorist, conflict is considered a basis for change in society.

Question 15.
One of the benchmarks of a so-called civilized society is its extent of cultural development.
Answer:
One of the benchmarks of a so-called civilized society is its extent of technological development.

Question 16.
The government is taking huge efforts to reach to all sections of society through digitalization.
Answer:
The government is taking huge efforts to reach to all sections of society through Right to Education.

Write suitable examples of the given concepts and justify your answer.

Question 1.
Social change.
Answer:
Example : For example, in today’s ‘Information Age’, the role of a teacher in a school is radically different than it was during the early Vedic period. Structural changes always occur in society. For example, with regard to structure in terms of size of family, joint families are now undergoing significant changes. At the same time there are functional changes in the family system. Education was a function of the family previously. Today it has become a specialized function which has been passed on to schools, colleges through a formal means of education.

Social change is a change in the social structure and social relationships of the society. Society change is a continuous, ongoing process. ‘The term’ social change refers to changes that take place in the structure and functioning of social institutions; for example, government education, economy, marriage, family, religion. Social changes also refers to change in performance of social roles of individuals according to changing times.

Question 2.
Long – term change.
Answer:
Example : Giving up social evils like dowry, early marriage or domestic violence. Eradicating strongly embedded customs and practices take decades to get rid of.

Social changes that may take years or decades to produce results are long – term changes. Significant social changes having long-term effects include the industrial revolution, the abolition of slavery etc. social movements play important role in creating awareness and inspiring discontented members of a society to bring about social change.

Question 3.
Unplanned change.
Answer:
Example : Natural calamities such as famine, floods, earthquakes, tsunami, volcanic eruption, etc. are the instances of unplanned changes. Social change which occurs in the natural course is called the unplanned change. The unplanned changes are spontaneous, accidental or the product of sudden decision.

When a natural disaster takes place, there is a loss of human and animal lives as well as property. Rehabilitation programmes have to be immediately designed and implemented for the affected persons. Unplanned change by its very name suggests that it is a type of change that is not planned. It happens suddenly.

Question 4.
Demography.
Answer:
Example : The study of statistics such as births, deaths, income, or the incidence of disease, which illustrate the changing structure of human populations. The problems of food, housing, unemployment, poor health, poverty, low standard of living etc., are problems as well as direct outcomes of changing demography.

Demography is a statistical study of human population. Demography encompasses the study of the size, structure and distribution of the population. It records spatial and temporal changes in population in response to birth, migration, aging and death. The composition of a particular human population is demography.

Question 5.
Direction of social change.
Answer:
Example : Linear Change – Primitive society moving towards a state of industrialism. Multi-linear Change – Cultural diversity.
Cyclical Change – Styles of dressing or hairstyling which were popular few generations ago have become popular today.

Social change is a change in social structure and social relationship of society. Auguste Comte has given us a theory of three stages of human thought. Society change is a continuous process. Sometimes changes proceed from one stage to another in a single direction known as linear change. It may also be a multi-linear change, that is, changes can take place in several different directions at the same time. Then again, the change may be cyclical, that is, human society goes through certain cycle.

Write short notes.

Question 1.
Characteristics of Social Changes.
Answer:
1. Universality : All human societies change. This could include changes in population, beliefs, tools, attire, customs, roles, music, art, architecture etc. Social change is universal as it takes place everywhere. This change is not uniform as it takes place at differing speeds.

2. Continuous speed : There is continuity of change in society. Right from the emergence of human society from the times of nomadic cave dwellers to the present, every aspect of human life and living has changed.

3. Temporal : Social change is temporal as it denotes a time sequence. Innovations of new things, modifications and renovation of the existing phenomena and the discarding of the old takes time.

4. Interactional chain reaction : The physical, biological, technological, cultural, social economic and other factors may together bring about social change. This is due to mutual interdependence of social phenomenon. Thus, for example, a huge increase in school fees will have an impact on student enrolment.

5. Neutrality : The term social change has no value judgment attached to it. As a phenomenon, it is neither moral nor immoral it is amoral. It is ethically neutral.

6. Short term and long-term change : Some social changes may bring about immediate results while some others may take years or decades to produce results. The purchase of new gadgets for the purpose of entertainment is faster if one has the purchasing capacity when compared to giving up social evils like dowry, early marriage or domestic violence.

7. Planned or unplanned changes : Unplanned changes happens suddenly and is not planned. For example, when a natural disaster takes place, there is a loss of human and animal lives as well as property. Rehabilitation programmes, some purposeful and planned changes promoted by the government are examples of planned change.

Question 2.
Socio cultural factor of social change.
Answer:
Human culture is a process of change. A change in the cultural order is accompanied by a corresponding change in the whole social order. Cultural diffusion is a source of change. Culture includes our values, beliefs, ideas and ideologies, morals, customs and traditions. These are all subject to change and they in turn, cause changes. Ideas and cultural values play a crucial role in social change.

German sociologist, Max Weber gave importance to the cultural factor of social change. He showed an interrelation between the teachings of protestant religion and spread of capitalism in Europe, in his famous book “Protestant Ethic and the spirit of Capitalism”. Also, these are negative consequences of ideologies that promote religious fundamentalism, extremist thinking, superstitious beliefs and practices, mindless values; these leads to untold hardships and human miseries. They become stumbling blocks to change.

Question 3.
Technological factor of social change.
Answer:
One of the benchmarks of a so called civilized society is its extent of technological development. Technological development creates new conditions of life and new conditions for adaptation. Technological development continues to be an index of the overall progress of society. Technological changes have affected social, economic, religious, cultural and political life of human beings.

Opportunities for e-learning, e-library, e-commerce, e-ticketing, online marketing, online examination is possible today, due to technological innovations. We live in digitalized age. Digitalization has helped the government to identify many beneficiaries who can be provided aid.

Question 4.
Educational factor and social changes.
Answer:
Education is a means to help develop ideas and skills, solve problems, transform people. People acquire knowledge, skills, develop, competencies and then use these to seek employment or self¬employment. The purpose of education, its content, its pedagogy is changing. Use of technology within education though e-learning, online education, smart boards, virtual classrooms, national digital library etc have brought about far reaching changes even within the field of education.

Many persons have opportunities to learn due to the efforts of the government. A special effort has been made by the University Grants Commission (UGC) to encourage education for trans¬gender persons. Educations can transform people lives.

Question 5.
Economic factor and social changes.
Answer:
This factor is of unique importance in social change. Stages of economic development in human history are not limited to economic transformation in society. They promote large scale political and social transformations. Economic development affects different institutions. The growth of large-scale industries led to employment opportunities, professionalism, exploitation, trade unionism and so forth. Economic competition has resulted in class-conflict increase in materialism in the society. The class divide continues to this day.

For example, peasant movement, women’s movements, labour movements, student movement, tribal movement etc. for conflict theorists – conflict is considered a basis for change in society. Globalization as a process continues to have a huge impact on Indian society. The LPG policy adopted by the government of India in 1991 has led to far reaching consequences on our political institutions, economy, family, education etc.

Differentiate between.

Question 1.
Physical and biological factors of social change.
Answer:

Physical factor	Biological factor
(i) Physical factor is also known as geographical or natural factor.	(i) Biological factor is also known as demographic factor.
(ii) Physical factors consists of climatic conditions, physical environment, animal life, biodiversity, mineral resources, natural resources, etc.	(ii) The biological factors lies in the biological conditions of social continuity, the perpetuation, growth or decline of a given population, migration or race.
(iii) Social change to some extent conditioned by physical factors.	(iii) Biological factors bring change in population structure.
(iv) Physical factor is modified by man, to meet his needs for example construction, of bridge, dam, highway, road, canal, irrigation etc.	(iv) Population movement from rural to urban area, and other such demographic changes significantly influence the course of social change in a society.

Complete the concept maps.

Identify the significant factor of change for each.
Question 1.

Answer:

Question 2.

Answer:

Question 3.

Answer:

Question 4.

Answer:

Question 5.

Answer:

State whether the following statements are true or false with reasons.

Question 1.
Social change is a complex phenomenon.
Answer:
This statement is True.

1. It includes the direction of social change, form of social change, sources of social change, causes of social change, and consequences of social change.
2. Any alternation, difference, modification that takes place in a human situation through time, can be called social change.
3. A single factor may trigger a particular change, but it is almost associated with other factors due to interdependence of several factors which makes social change a complex phenomenon.

Question 2.
Cultural diffusion is not a source of change.
Answer:
This statement is False.

1. Cultural diffusion is a source of change. Culture includes our values, beliefs, ideas and ideologies, morals, customs and traditions.
2. These are all subject to change and they in turn, cause changes.
3. Where two cultures meet or clash, social changes are inevitable.

Question 3.
The physical environment has also been adversely affected by human behaviour.
Answer:
This statement is True.

1. The physical environment has been adversely affected by human behaviour, in the name of ‘development’.
2. The effects of industrial pollution on the environment and the consequent effects such as global warming, melting of solar caps etc., are examples of the physical environment.
3. Hence, there is a need for conscious efforts to promote ‘sustainable development for all’. To solve the problem created by physical environment.

Question 4.
Both, overpopulation or under population has its share of consequences.
Answer:
This statement is True.

1. Both, overpopulation or under-population has its share of consequences.
2. It leads to regional imbalance, changes in density, skewed sex ratio.
3. Socio-economic development and access to opportunities is affected by size of population. For example, the growing population of senior citizens, or declining number of youth in some communities creates new challenges for society.

Question 5.
Economic Factor is of unique importance in social change.
Answer:
This statement is True.

1. Stages of economic development in human history are not limited to economic transformation in society.
2. They promoted large scale political and social transformations. Amidst these changes, there continues to be a need for a decent livelihood and human welfare.
3. Economic development affects different institutions like family, education etc. The growth of large-scale industries led to a spurt in cities, employment opportunities, professionalism, exploitation, trade unionism and so forth.

Question 6.
The purpose of education, its content, is changing.
Answer:
This statement is True.

1. Use of technology within education through e-learning, online education, smart boards, virtual classrooms, National Digital Library etc. have brought about far-reaching changes even within the field of education.
2. Today many persons have opportunities to learn due to the efforts of the government.
3. A special effort has been made by the(UGC) to encourage education for transgender persons.

Question 7.
There is no direction to social change.
Answer:
This statement is False.

1. Sometimes, changes proceed from one stage to another, like in a sequence, and in a single direction.
   For example, Auguste Comtes Theory of Three Stages of human thought is an example of linear change.
2. It may also be multi- linear, that is, changes can take place in several different directions at the same time.
3. Change may also be cyclical; for example, this is common in the world of fashion. Styles of dressing or which were popular few generations ago have become popular today.

Give your personal response.

Question 1.
The consequences of social change may be constructive or destructive.
Answer:
Every factor of social changes has both constructive or destructive results. Physical factors like natural calamities leads to displacement which affects human life. However, geographic condition may also be favourable for human settlements. Similarly, both over population and under population has its share of consequences. Ideas and cultural values also play a crucial role in social change but some ideologies when promote religious fundamentalism and superstitious beliefs does have negative consequences on society. The growth of large-scale industries has not only increased employment opportunities but also have given rise to exploitation.

Question 2.
The purchase of new gadgets for the purpose of entertainment is faster as compared to giving up social evils like dowry, early marriage or domestic violence.
Answer:
Invention and usage of new gadgets is change in material culture. While social evils like dowry, early marriage or domestic violence is strongly embedded customs and practices and part of non¬material culture. Material culture changes fast as compared to non-material culture which are long-term change.

Question 3.
The social system also becomes dysfunctional at times.
Answer:
Emile Durkheim makes reference to ‘anomic suicide’ where there is a state or normlessness or chaos, which can trigger off suicidal feelings which further leads to instability of society. Similarly, there are many other factors which may disturb the balance of the society. Then human beings have to make conscious efforts to help bring about stability, balance and equilibrium in society.

Answer the following question in detail (about 150 words).

Question 1.
Discuss factors responsible for social change with examples of your own
Answer:
More often than not, social change is a result of the interaction of multiple factors.
1. Physical factors : This factor is also known as geographical or natural factor. Physical factors consist of climatic conditions, physical environment, biodiversity, natural resources etc. Social change is to some extent conditioned by physical factors. Natural calamities such as famine or drought affect human lives. The Latur earthquake in 1993, in Maharashtra had long-term impact in terms of displacement. However, geographical conditions may also be favourable for human settlements. For example, people who live in areas which have plenty of rain, suitable soil conditions, rich in minerals have progressed more rapidly.

2. Biological factor : This factor is also known as demographic factor. Biological factors influence numbers i.e., population, sex composition, birth rate and death rate, fertility rate and the hereditary quality of successive generations factors like size and composition of population produce social change. Socio-economic development and access to opportunities is affected by size of population. For example, the growing population of senior citizens or declining number of youths in some communities creates new challenges for society.

3. Socio-cultural factor : Any change in cultural order is accompanied by a corresponding change in the whole social order. Cultural diffusion is a source of change. Ideas propounded by biologist Charles Darwin, psychoanalyst Sigmund Freud and thinker Karl Marx, for example, in the past century, have had significant impact across the globe. Also, there are negative consequences of ideologies that promote religious fundamentalism, extremist thinking, superstitious beliefs and practices which are stumbling blocks to change.

4. Economic factor : Economic development affects different institutions. The growth of large- scale industries led to a spurt in cities, employment opportunities, professionalism, exploitation, trade unionism and so forth. Economic competition has resulted in class-conflict increase in materialism in society. The ‘conflict approached’ as stated by Karl Marx has had a significant impact on understanding social change and also on movements against injustice in society. For example: peasant movement, labour movement, women’s movement etc. Globalization as an economic process continues to have a huge impact on Indian society.

5. Technological factor : One of the benchmarks of a so-called civilized society is its extent of technological development. Technological development continuous to be an index of the overall progress of society. Our daily life is increasingly loaded with the effects of technology from our homes to our work places, entertainment, voting, banking, e-business, e-governance, etc., opportunities for e-learning, online examination is possible today, due to technological innovations.

6. Educational factor: Education is a means to develop ideas and skills, solve problems, transform people. People do acquire knowledge, skills, develop competencies and then use these to seek employment or self-employment. Use of technology within education through e-learning, online education, smart boards, virtual classrooms, have brought about far reaching changes even within the field of education.