Test Papers – ICSE – Class – X
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-8, Business Correspondence
Okay, kids, new module new question.
A diagram of the layout of a business letter, means how should a business letter be, we are going to see in this particular module, right, where you are supposed to write what and how you are supposed to write, and how you are supposed to arrange number of things we are going to see in this particular module. Now in front of you there is a blank sheet, right, on this we are going to show you what’s should be written where.
Heading, right, we call it as a letter head, name of the company, address of the company with the telephone number, right, fax, emails such details and even city’s name, pin code number, all such things should be mentioned in the letter head at the centre of the page, right, not exactly at the centre of the page, but you can say the top centre. And you need to leave equal space on the left hand side and the right hand side, okay, leave equal space on the left hand side and the right hand side. And you can use five to six lines for writing name and the company’s address, right, kids. So that’s your heading, number one.
Number two is date, now leave one line after the name and address of the company, and write on the right hand side, date. Now kids, do remember that we follow UK style, that is date, month and the year, this should be written. On the same line write reference number, herein we are going to write in the way alphanumeric means usage of few alphabets and few digits, right kids. So immediately after writing name of the company leave a line then write date on the right hand side and reference on the left hand side. Again leave a line and write inside address, that’s number four. Here you are going to write name and address of that person who is the receiver of the letter. Here also you can use three to four lines, right, kids. So that was your one, two, three and four. Now number five again, now before writing the subject, leave a line after inside address and write the subject in the centre of the letter, exactly in the centre, it should not touch the margin on the left hand side, nor it should penetrate towards your right hand side, but it should occupy the central space and subject is essential. Just with the help of subject, reader comes to why this letter exists, right, what is the reason for writing this letter so subject is a must. Again leave a line and write a salutation, right, madam, sir, whatever it may be start writing from there, so write that and put a comma and start writing below.
Now point number seven, we call it as body of letter, right, kids, this is called as the body of letter. We need to write three paragraphs. A is introduction, B is main paragraph and C is concluding paragraph, we call it as body of letter. Kids, do remember that if you are not writing body of letter, you won’t get any marks. So we need to write this body of letter in three paragraphs, if you want to get some good marks, right kinds. So seven, we have body of letter, divided into three paragraphs. The first one is introduction, the second is main paragraph and the third one is concluding paragraph. After this you see again we need to leave a line, complimentary close, right, kids, yours truly, yours faithfully. And then number nine, signature of the secretary, okay, that is a must again. And number ten, enclosure, what are your attachments. So after signature leave a line and put down ENCL, what is ENCL – enclosure, right. In email we have attachments, but in letters we have enclosures. So what are you going to attach with this letter we need to mention there, a Xerox copy of some document or maybe a cheque or something similar to it, so you need to mention number of enclosures also you need to write it down, no. 1, no. 2, and so on. And number 11, cc that is carbon copy, the same letter that has been passed down to who, that person’s name should also be written down there.
I hope so, kids, you understand the different, different parts of a letter how it should appear and what are you going to write and where. So all these 11 parts we are going to discuss in the next module in detail.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-8, Company Meetings
Hi, kids, we start with a new chapter, Company Meetings Part 1. Right, kids, let’s see this.
Let’s check the first module, define meeting, explain the need for meeting. Now the term for meeting is derived from the Latin word ‘Maeta’ means face to face. Now according to the Webster’s Dictionary meeting is an act of coming together to discuss any particular matter. The above definition indicates the following points. Minimum two persons are necessary to conduct a meeting, right, so it can be more than two. Time and place is predetermined, decided in advance. Meetings are held to discuss matters of common interest. These matters should be acceptable from legal point of view.
Now let’s take an example. Here we have a farmer working on his farm and earning a sufficient amount annually. A friend of the farmer advises him to invest in shares and stocks. One day a letter given to the farmer for a company meeting, right. A farmer is shocked with the letter. His friend that it’s company meeting letter. The farmer went to the meeting and surprised to see what happened because he don’t anything about it, right. So he was totally surprised. The farmer went to the company secretary to get all the necessary information regarding the meeting. Now what is company meeting, he is explaining, right, kids, so let’s see.
A company meeting is commonly defined as an assembly or gathering of shareholders connected with the company who want to discuss and decide the matters related to it, right, kids, please understand it is a gathering of shareholders and connected with the same company want to discuss something about the matters related to the company. From the point of view of the company, meeting is an official gathering of shareholders, directors and creditors of the company. Company meetings take place when shareholders and directors come together as per the notice and conduct business as per agenda, right, kids.
Need of meeting, to determine the policies and the programs. Future of the company, to prepare future plans. To provide opportunities to members to come together, right, they meet each other. To solve certain problems faced by the organisation. To take action against members in default. To declare dividends. What is dividend, share of profits of the company. To appoint directors and auditors, to review the progress made by the company. To know about the progress made by the company you have to attend the meeting. To comply with the statutory requirements, statutory, legal, comply, follow or fulfil. To study and give approval to all annual reports, right, statement of accounts, auditors’ reports and other reports.
Right, kids, first module was simple and clear to understand.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-4, Formation of Joint Stock Company
Hi, kids, we are going to start with chapter 4 of secretarial practice, formation of joint stock company, one big joint or business organisation, right, let’s see.
We are going to start with the first module, explain in brief public limited and private limited companies. Now here you can see we have two types, private limited companies and public limited companies, right. Please watch it carefully. It is necessary to have the word private in private, nothing of the type in public, only simple, you are going to write the name of the company that’s all.
Now let’s take an example. We have Mr. Chinta Money who is interested in starting a new company so he is talking to Mr. Vatan Kata. ‘Sir, we would like to become a businessman and start a company like yours.’ ‘Which type of company do you want to start?’ What are the different kinds of companies?’ he is asking. Now let’s see the reply. ‘There are two types, right, private and public. To get detailed information about these you must have to approach the registrar of companies.’ Okay, so my dear students, he is approaching registrar of companies. Now he comes to the office of the registrar, who, Mr. Chinta Money. ‘Sir, can you give me a brief idea about a private limited and a public limited company and what will be the formalities for the same?’
Private company means let’s check: According to Companies Act, 1956, Section 3(1)(iii) a private company is one which by its articles restricts the rights to transfer it shares. That means you cannot freely transfer, you cannot sell shares easily. Limits the number of its members to 50, you can see private limited company maximum number of persons or members is 50. Prohibits any invitation to the public to subscribe that is to buy for any shares in order or maybe debentures of the company. And prohibits any invitation or acceptance of deposits from person other than its members, directors or their relatives. What does that mean? They can only take money from their near and dear ones and their own members, not from the public. Right, kids, do remember, now private company is a kind of a joint stock company. Those who want to establish a joint stock company, keep its businesses limited, usually register the company as private limited company, right. Restricted to few number of members. Now private company collects capital privately, minimum 2 members and maximum 50. Remember that company we call it as a private limited company. It cannot collect capital by inviting general public to purchase the shares of the company, neither its shareholders can transfer their shares freely. Freely means without taking any permission from directors. In short private company performs operations in restricted manner. A private company has to add words called as ‘private limited’ at the end of its name. You can check the example given, right, on your left hand side, MT Educare Private Limited.
‘What about public company, sir?’
Public company means, let’s check, according Companies Act, 1956, Sec 3 (1) (iv) public company means a company which is not a private company, it is so simple and easy to remember. Which is private is not public and which is public is not private. Now there are no restrictions on transfer of shares, that is shares are freely transferable. You just need to take permission from directors. There is no limit on maximum number of membership, it means the maximum number can be unlimited. There is no prohibition to any invitation to the public to subscribe for any shares or debentures of the company. Means what, they can collect money, money, money from public, right, by means of shares or debentures. Prohibition – restriction. There is no prohibition again for acceptance of deposits from persons, thus public company can accept public deposits. A public company has to add the word ‘limited’ at the end of its name. Do remember, right kids, at the top you can see, MT Educare Limited. And membership is minimum 7, maximum no limit.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-3, Joint Stock Company
Kids, we start with yet again a new module. This time name of the chapter, what, yeah you recollect, Joint Stock Company and features of the same, so let’s check.
A Joint Stock Company is a voluntary association means willingness of the people to be a member formed for the purpose of undertaking a business. So willingly they take a part in it, if they don’t want they don’t, right, they can stay away. It is called as Joint Stock because shares or the stocks of the company are jointly owned by its members so everyone is the owner of this company. A Joint Stock Company undertakes different business activities like manufacturing, marketing, servicing and etc.
The funds required by the company are contributed by its members called as shareholders, you can see next to me. Now the shareholders are the co-owners, right, I told you each and every person who buys the share becomes the co-owner, right, and they share profits of the company in the form of dividends, that is share in profits. Now the company is managed by board of directors. Now board is a group of elected representatives of the shareholders. Board frames the plans and policies of the company. Who elects board of directors? Yes, shareholders, remember that. The board in turn appoints several other mangers and subordinate staff to look after day to day aspects of the organisation. So they have support staff. And who appoint board of directors, shareholders. And who appoints support staff and all, board of directors, remember that. In India Joint Stock Companies are governed and registered under yes, ICA, 1956, that is Indian Companies Act, 1956.
Now let’s take the definition of Joint Stock Company. A company means a company registered under this Act, or an existing Companies act.
An existing company means a company formed and registered under any of the previous Companies Acts, right. Now this is the definition which is given in section 3(1) (i) of the Companies Act, 1956.
Let’s check feature number one. We call it as an Artificial Person. A Joint Stock company is an artificial person created by, yes, law. So who gives birth, law gives birth to this artificial person or you can call it as a Joint Stock Company. It has no physical existence but it has a legal existence, right, remember. Like human beings it can acquire property, enter into contract, right, signature can be done and can take legal action. So remember what does that mean, we can sue this company and this company also can sue us. Sue means, right, file a case against, remember that. Incorporated association, every company in India has to be registered under Indian Companies Act, 1956, remember that. Registration of incorporation gives birth to a Joint Stock Company. Perpetual succession means very long life, so once the company is started, a company has a very, very long or perpetual succession, it means the company has a long and stable life. Its existence is not affected by death of any shareholder or insolvency or maybe insanity, right, someone becomes mad, it doesn’t affect the company’s business, right, or existence. You can see there, insanity, the state of being seriously mentally ill or madness. But company continues, continues and continues. Common seal, a company is an artificial legal person, and as such it has to sign documents and other papers, right, do remember that. So what do you need, you need a common seal so it cannot sign like us, right. So therefore a common seal serves as the signature, kids, do remember signature. Affixing of the common seal on important documents is witnessed by the signature of two directors of the company, right, that means wherever you find the common seal you will find the signatures of two directors along with it. You can see, right, along with the common seal directors are signing the same important documents. So the common seal remains in the custody of yes, board of directors. Separate legal entity, a company has a legal entity, separate and different from its members. A company cannot hold a member responsible for the debts of the company, correct. So whatever debts company takes the company is responsible, whatever debts shareholder takes, shareholder is responsible. So they cannot hold a member responsible, right, kids. So do remember these features. We continue remaining in the next module.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-3, Joint Stock Company, Module-02
Kids, we will move to the next module. Discuss the concept of Partnership Firm and state its features. Means we will see about partnership, more than two people. Right, coming together to do business, you can see in the following picture.
Now, partnership is started by an agreement between persons. Now, two or more persons come together and have sharing in profit, as per the profit sharing ratio. Right, they sign in an agreement, where terms and conditions are mentioned. This agreement maybe oral or maybe a written one. And kids, always written agreement is better, right, it acts like an evidence, yes. Minimum two persons are required to start this partnership firm and the maximum number is 20, in case of general business and in case of banking there are only 10. Do remember, right, minimum number of people 2, maximum banking is 10 and non-banking is 20. Now, let’s see third feature, partnership firm is started to carry on a business activity. Let’s check an example alongside, raw material is collected then some processing done, right, cutting, shaping, polishing and what do we get, finished goods, wooden table and chairs and many more articles. So, partnership business is carried out for all these business activities. Now, the ownership of partnership firm is joint, remember that 2 or more than 2 people that is partners are joint owner of assets and liabilities of business, right. All this property belongs to all the partners in the firm. All the debt also belongs to all the partners in the firm. The partners manage business jointly, everything will be done together, it means all the decisions are taken by mutual consultation means after taking permission or consulting each other. Right, you can see there, they are consulting each other, we are going to start something new, we are going to start something different. The profit and loss are shared in the decided proportion or as per the agreement, agreement or deed you can call it as, any legal instrument in writing that is signed or attested by all the partners. The liability of the partners is unlimited, joint and several. Very, very important kids, do remember and understand very well. Now let’s take an example four partners in a firm, right. We name it as A, B, C, D and what is outstanding? Rs. 1 lakh. Now, jointly what you can see here. Jointly, individually they are responsible to pay 25,000 each, correct kids. So, this is joint, do remember that. Now, let’s check severally, now what happens here, there are four partners. Now, one of them dead but still the outstanding amount is rupees one lakh. So, you can see the remaining three solvent partners sharing that one lakh into three equal parts. So, that is you can see there, three equal parts, right, kids.
Another, what happens now, second condition, again for severally, one was dead, second partner is insolvent now. So, two remaining solvent partners will share one lakh into two equal parts, right. And finally again, if even the third partner becomes insane means mad, unsound mind, then the last partner, which is solvent will share or take the burden of every penny which is remaining outstanding, you can see one lakh outstanding entirely has been taken care or paid off by the solvent partner. So, kids, do remember, unlimited, joint and several, right, liability unlimited, I hope you remember that. No difference between personal assets and business assets and joint and severally we did just now. The share in partnership cannot be transferable to any other person without the consent of other partners. It means interest of partnership is non-transferable. As you can see here, these are the partners of Bajate Raho Firm. Now, Mr. Y wants his son to join the business. He needs to consult everyone and if everyone approves, he can bring in his son, right. So, Mr. R becomes the new partner in the business.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
Std-11, Commerce, Organization of Commerce, Secretarial Practice, Ch-1 Secretary
Hi, kids, we are going to learn new subject called Secretarial Practice. Something about the gentleman standing next to me and let’s see now, the first chapter Secretary.
The first question, explain the meaning and the origin of secretary. Now, the profession of a secretary dates back to the early days of human civilization. It is going on from many years. What, the profession of secretary. You can see very, very early days of human civilisation. In ancient time kings, right, kings, ministers and wealthy landlords. Now, what’s common between all of them? They all are very rich people, wealthy people and very busy people. So, they used to appoint a person called secretary, to help them, right kids, do remember that. The secretary used to look after their personal and confidential matters. So, let’s check an example given out here, right. You can see the boss seated on the seat here. ‘I request you to keep these documents safe in your custody’, boss says this to the secretary. And what the reply is coming from secretary, ‘Sure sir, don’t worry about it’. That means what the secretary keeps everything in custody, safe, right kids. So, the secretary used to provide advice and guidance on important matters to his boss, why, because he is very wealthy and busy person. So, obviously only those persons having qualities of intelligence, discipline and loyalty were appointed as secretary, correct. That means if you want to become a secretary, you need to have a quality of intelligence, discipline and loyalty.
So, let’s see the word Secretary, where do we get from Latin word ‘Secretarius’ which means a confidential officer. All the confidential matters are with him or the person to whom confidential matters are entrusted, right, that is given in trust. Kids, check out this, the person standing next to me, everything secret with him. Check the spelling very carefully secret-ary means secretary. Now, let’s check out, how we got and what they were called in different parts of the world? In Latin civilisation they used to call him as Secretarius, right, and in Roman Empire, they were calling him as Scribae, the person who writes communication on behalf of kings, ministers or very wealthy landlords. And now, Ancient Indian Civilisation, they were calling him as Amatya, Sachiva, Chitnis.
I hope so, kids, these all things are very simple to remember.
Increase your scores by Studying with the BEST TEACHERS – Anytime and anywhere you want
