Test Papers – ICSE – Class – X
Std-11, Commerce, Organization of Commerce, Ch-8, Nature and Significance of Management, Module-08
Kids, let’s see the next module, explain the various levels of management. Now, management exists everywhere, remember. It’s universal. Management is required in every organisation. Size of the organisation may not be the same. Some are small, some are medium and some are large. So, style of management for different scale is different. Management of small organisation is simple and the management of a grocery shop is also simple so, than management of the bank or a car manufacturing company. So, in a large scale organisation management is complicated. So, therefore it is done by making different parts, all levels of in the organisation. Now, levels are made according to the size and requirement of the organisation. So, usually there are three levels, do remember, right. Three levels of management, top level, middle level and the lower level that is supervisory level. You can see in front of you, a pyramid, top level, middle level and the lower level, right. Now, who works at the top level? Let’s see, board of directors, right, managing director, CEO that is Chief Executive Officer. Now, what work they do at this level, let’s understand. So all these people work at top level, we decide the objectives and goals of the organisation, we frame the plans and the policies to achieve these objectives, we see that the policies are properly implemented, we create various positions to do different activities, we also appoint leaders, right, at the middle level of management and give them directions to carry out different, different activities, we evaluate, we check the performance of various other different departments at the middle level.
Now, let’s check middle level. Herein, correct, who works, right, head of the finance department, head of IT department, head of HR department. Now, what work they do? Let’s check, we link, right, they are connecting link between the top level and the lower level of management. They understand the policies of the top level, top level whatever the policies they make, middle level understand and they make it more simple so that the lower level again understands. We decide the plan of action in the department to achieve the targets given. We assign specific duties to the staff in the department. We help top management to coordinate the activities of various departments. We train people from the department to carry out the different activities in the future. We appoint lower or supervisory level staff.
So, now we come to the lower level that is supervisory level. Now, what these people are? Let’s see who are they? They are supervisor, they are foreman and superintendent, right, kids. Now what work they do? Let’s check, we get the instructions from the middle level, right, and they follow them accordingly. We assign the works to subordinates. We give instructions and direct subordinates to complete the task or the job. We guide them, right, wherever it’s required or necessary. We look after the maintenance of machinery, equipment and tools. We solve the problems and settle the disputes among the subordinates, right, disputes or some misunderstandings. We conduct quality check of the product or service from time to time.
Thank you.
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Std-11, Commerce, Organization of Commerce, Ch-4, Internal Trade, Module-06
Okay, new module and new chapter, Retail Trade, Retailer and his features. Let’s check, so the trade in which goods are sold to the final consumers directly, in small quantities is known as Retail Trade, nothing else.
A retailer sells varieties, remember, of goods in small quantities to us, the final consumers. A retailer is the last middleman in the chain of distribution, please mark this. As an objective, it appears, right, in your unit test or maybe in term examinations. He aims to satisfy the consumers.
Definition of Retail Trade: According to William Stantan, ‘Retail Trade includes all activities directly related to the sale of goods and services to the ultimate consumer for personal and non-business use’. So, he will do everything for selling it to final consumer, do remember, kids. And not for non-business use.
Retailer, according to W. Cundiff and R. Still, ‘Retailer is a merchant or occasionally an agent, whose main business is selling directly to ultimate consumer’. So, the person or person is called Retailer.
Let’s start with features. A retailer operates in, right, local market near residential areas, correct. Retailers deal in wide variety of goods to satisfy demands of different consumers. You can check in the shop, so many products like cleaning products, tea, coffee, honey, dairy products and you find variety and variety lots of varieties. ‘Hey, Mr. Vinod, this month consumers are demanding more Apul ice-creams. Demand for Wality ice-cream is less’. ‘Oh, so I will supply you more of Apul ice-creams this month’. ‘Yes, deliver only 50 pieces of Wality ice-cream’. ‘Yeah, sure’. A retailer is the link between the wholesaler and consumer. He knows exactly the consumers’ demand. I order goods as per consumer demands. I do not stock large quantity of goods. So, capital investmentrequired is, right, is less. So, retailers invest limited capital in their business. They enjoy credit facilities from wholesalers. Here, is a beautiful example, ‘Hey, Sameer, what’s going on?’, ‘Nothing special, business as usual or normal’. ‘Same here the demand for this Wality ice-cream has reduced nowadays’. ‘Yeah, this month I ordered only 50 pieces. So, I am not going to incur huge loss’. ‘Yes, we order goods from wholesaler in small quantities as per the customer demand, so we are safe’. So, retailers undertake less risk as they do not hold large quantities of goods, right kids. Herein, customer approaching to the retailer. ‘Hello, aunty, how are you?’ ‘I am fine, dear’. ‘Here is your regular soap and toothpaste’. ‘Oh, thank you dear, God bless you’. So, kids, what is this? Retailers always have good relations with, correct, customers for continuous business.
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Std-11, Commerce, Organization of Commerce, Ch-3, Private, Public and Global, Module-01
Hi, kids, we are going to start with the third chapter of OCM, Private sector, Public sector and Global enterprises. So, let’s enjoy this chapter no. 3. Let’s check up the first module.
And the first question, how are business sectors classified? Now, business organisation is set up which undertakes business activities by producing or distributing goods and services. You can see, production going on in all these clips alongside, manufacturing of planes and plane parts, automobiles, soft drinks and some of the products being shown. So, business is not only producing but also distribution. So, once goods are produced they need to be distributed through transport services and different, different middlemen. You can see, loading and unloading taking place and truck is in motion, right. So, transportation and distribution is compulsory.
The main objective of business is to earn profit money. Nowadays, profit is not only the aim of business organisation but they have to fulfil, they have to do something for society, we call it as social responsibilities. You are correct, we call it as social responsibilities. Now, Indian economy has got mixed economy which is divided or includes private sector and public sector organisations. So, the private sector organisation mostly focuses on profit, profit and profit motive, that’s goal or aim. Whereas, public sector focuses on service motive. So, you can see in the picture shown private sector, speaks only and talks only of profit, public service, right. Do remember, in India now these business sectors are classified as, as we saw just now a private sector and a public sector. Now, let’s understand this a little bit in more details. It is run by private individuals or maybe group of individuals, right. It is controlled by them and not by state government or central government, do remember that. Whereas on the other hand public sector undertaking owned, managed and controlled by Sarkar or the government, do remember, right.
Further down we have different types under private sector.
So, let’s check one by one sole trading is first, it is owned, managed and controlled by single individual. So, that’s the picture of sole trader, right. Sometimes we even call him as one man show because he does everything for his business, do remember. Joint Hindu Family Business, you can see all family members living together, right, so all of them when they enter into business together we call it as Joint Hindu Family business. Do remember, when all family members come together and start business, it is called as (JHFB) Joint Hindu Family Business.
Third we see, Partnership Firm. Now to overcome the demerits of some sole trading we have partnership firm coming up, wherein two or more than two people they come together and have sharing in profit as per profit sharing ratio.
Next, we see Joint Stock Company, herein large number of people they invest their money, correct, and what they get, they get in return shares. And what the money collected in hand of company becomes share capital. So, they share ownership of the company. Each and every individual becomes the owner of the company.
Next we see is, co-operative association of persons coming voluntarily by their own willingness together with a service motto or motive to serve the society. So, these all makes your private sector.
Now, let us understand Public Sector. The very first we see, Departmental Undertaking, you can see chook chook gadi here, that’s the railways. Now, these enterprises are fully owned and controlled and managed by government and their management is with ministry sitting at the centre, that in New Delhi. So this is departmental undertaking, ministers are incharge of those departments.
Next, we see Statutory Co-operations, now these types are autonomous corporate body set up under special Act of Parliament or maybe of Legislature, right, examples are Reserve Bank of India, LIC, what are all these, statutory co-operatives, right. They are formed and take birth just by passing an Act, in parliament or state legislature.
Now, third type Government Companies that is a company where minimum 51% of equity are owned by government of India, do remember that. Example Indian Oil Corporation, right, kids, 51% with government means government companies, do remember, right. So this was the third and last type under Public Sector.
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Std-11, Commerce, Organization of Commerce, Nature and scope of Business, Module-06
Let’s check next module, explain the objectives of business. Objective is what? End result of the business activity where a business unit wants to reach, your aim and your target. In the earlier days, profit maximisation was the aim, right, of every businessman. But today, business concentrates on profit as well as other factors like society, government and environment for its input , men, money, material and output needs customers to buy the finished goods, output the finished products. This is for achieving other objectives in order to survive in today’s competitive world.
So, let’s check the definition given by Henry Ford, ‘Business is not mere money chasing but it also aims at serving the community’, right, the society, doing something for society.
Let’s check, objectives of business, right. First, economic objectives, next social objectives. So let’s start with economic objectives, a business organisation cannot be called as a business organisation unless it has economic objectives. So, let’s check the first economic objective of earning profit, right. So, profit earning may not be the sole, single aim of today’s business, but still it is an important and basic aim of every business. Herein, I have purchased this toy for 100 from a manufacturer. I will have to sell this for minimum 120, so that I earn Rs. 20 as profit. So, profit is required for the survival of business, right, for growth of business and meeting the family needs of businessmen. So, that business unit produces goods and services, remember that which are required by public and also allow to earn profit.
Let’s check next, creation of customers. The very existence of a business depends upon the number of customers it has created in the market. Particularly, if the competition level is high, a business organisation needs to work hard to create customers. And creating customers by supplying right goods and services at right time and right price. And tomorrow I want to increase, that’s an example, my customer base, so I will have to advertise my product on television, you can see. He is advertising his products on the television to increase his market, his customers.
Next, innovation, a business unit cannot keep offering same product for a long time, will you buy it, no, so external factors like fashion, purchasing capacity, technology keep on changing. So, even the product should change. If a business organisation wants to hold customers and create new customers then it has to spend money on research and development, market survey, use of technology etc., and provide new novelties to customers and can approach them in an innovative way. Owner of Taggi Noodles, now, ‘hey, listen I want to try something innovative product to attract more customers’ he is asking his friend and the friend replies, ‘you can introduce Taggi soup noodles or Taggi vegetable masala.’ You can check out new products, innovative products. Noodles are doing well in the market but now I need to try something innovative to increase my profits, right, kids.
Best possible use of resource, now most of the resources are scarce we cannot afford to waste those scarce resources. So we go for optimum use, that’s why maximum use of resources. Ultimately leads to increasing profit. Here you can see, right, designers’ workshop. Dress designers’ workshop, right, making some designer clothes and leftover clothes, right, all those cut pieces are reused for making bags. So this is best possible use of resources.
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Std-11, Commerce, Organization of Commerce, Nature and scope of Business, Module-02
Let’s see, next module, define business and its features, right. Business state of being busy. It refers to production and distribution of goods and services. Production, conversion of raw material into finished goods. You can see logs of woods being converted into furniture, those are called finished goods. Distribution includes a process in which goods and services are sent to customer. So, manufacturer sends it to distributor and from distributor it goes to us, through maybe courier service or maybe through retailer. You can see here, delivery at door step. Goods and services which are tangible, which you can touch, feel and see. Services which are intangible, you cannot see them as in doctor diagnoses patient, waiter serves at hotel to the customer.
Production of goods means actual making of goods, maybe, agriculture or manufactured. Here the farmer working in the farm, cultivating piece of land and growing tomatoes, from there we get ketchup. We call it as manufactured good, right, tomatoes and from tomatoes we get manufactured goods called as ketchup. So, business process includes advertising, transportation, warehousing as well as actual buying and selling of goods and services. And you can see here, ownership transfers from seller to buyer.
Definition given by Professor Haney:
Business activities are all those human activities which are directed towards the production, what production and procuring wealth, who gave, Professor Haney.
Let’s check features. First one involves production and distribution. So, every business activity is concerned with production of goods, right tomatoes to ketchup. Creation of services, next distribution of goods, correct, distribution of goods and services from factory to us, that is consumers. It involves in dealings in goods and services. Cannot take place in the absence of goods and services. Goods involved in a business transaction maybe capital or maybe consumer. Capital goods which are used for making consumer goods, sewing machine, capital goods and consumer goods all those clothes being made with the help of sewing machine. Here, you can see all those dresses are ready, correct, so those are consumer goods. Involves exchange, either it maybe for money or maybe for goods. So, when goods and services are exchanged with money we call it as monetary exchange. You can see shopkeeper selling cell phone, right, to Mr. A and A is paying for it, we call it as monetary exchange. Another example for barter, goods and services exchanged for goods and services. Mr. A needed wheat and was having excess of rice with another fellow. What he got, he got what he wanted, that is one kg of wheat, but was any money involved, no. So, we call barter. So the process of gifting, donating or personal consumption is not considered as business. I need to gift my niece on her birthday, what, doll. Here the shopkeeper has utilised the product that’s a doll from his shop to gift someone and that’s his niece. So here there is no monetary exchange. It cannot be considered as a business transaction.
Let’s check next, aims at profit. So, basic aim of every business is earning profit. Let’s take more example, right. The customer, ‘good evening, can you show me a beautiful Anarkali dress for wedding’. Shop owner says ‘yeah, sure ma’am, see here is a beautiful black dress it is for just for Rs. 3,999/-. Customer, ‘I really like this dress, pack it’. So what happened, how much is MRP? Cost price plus profit.
Number five, continuity, business involves production and distribution of goods and services on regular basis. Any isolated transaction that is single of buying and selling cannot be treated as business transaction. Let’s take an example, I have many gift items with myself, I think I should sell it. Since she is selling the gifted items for single time, it is not a continuous transaction, it cannot be considered as business.
Next point, risk, every business has a possibility of incurring loss during its operations, which is risk. It maybe natural risks like glaciers melting down, floods or volcano eruption, right. Or it can be different situations in business. Let’s take an example, ‘Hi, I have prepared 150 paper lanterns, right, and 80 are still left.’ ‘Oh, so you keep them and use it for next year.’ What the shop owner says, ‘no, it’s not possible. These are paper lanterns and if these lanterns are not sold then I will suffer huge loss.’ That means risk. Now there are two parties remember, buyer, seller, right. So these people out here on screen you can see, right, one man is milking an animal, cow, and other one is selling milk in bottle, who are they, the seller and the buyer exchange for money, right, kids. There are two parties, easy to understand, students.
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Std-11, Commerce, Organization of Commerce, Ch-1, Nature and Scope of Business, Module-01
Hi, kids we will start with new subject and a new chapter, Organisation of Commerce and Management, under that the very first chapter Nature and Scope or Busy ness of Business, let’s see.
Explain in brief the classification of human activities. What’s the question, human activities means what you and I or we all are busy doing, right, throughout our life we do something or the other. We all talk to our friends, yes. So, that is also a human activity. We do ride bicycles, human activity, correct. We go to the barber, we go to the saloon for haircut, human activity done by barber. We all dance, play, what is all that, human activity. So, we all are busy in some or the other human activity throughout our life.
Now, let’s understand these activities have been classified into two types, the very first is non-economic activities and second, economic activity. What are non-economic activities? Let’s check out, activities are all those activities which are preformed out of love and affection or as a hobby or joy. Someone is painting, what is it, hobby or maybe for the fun or joy sake. Second, someone is dancing down out here, what is that, hobby or for sake of joy. So, these are non-economic activities. Do remember whenever we are carrying out any activity or a hobby or for joy like these girls, do we get money in return. No, we don’t get money, we don’t get paisa. So, it’s a non-economic activity. The activities are not performed for money or money’s worth.
Economic activities are the activities which are conducted for earning money. You can see barber gets money for cutting hair, right. You buy some flowers you need to pay something, that’s money again. You buy some candy floss, you need to pay money, economic activities, right. Iron, someone is ironing your clothes, he is going to charge you something, we are going to pay money, so it an economic activity. You are going to restaurant or a hotel, the chef prepares something for you, economic activity, why, you are going to pay, right, don’t forget. So these economic activities can be further classified into busyness, that’s business, you are investing money for getting some returns, good returns, that’s a profit, economic activity. Number two, we have profession, you acquire some qualification and you get something in return, money again. At number three, you go for a job as an employee, get something in return again, that’s money. All these are economic activities. Students, I hope it’s very simple and easy to remember.
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