Showing posts with label HSC Organisation of Commerce and Management. Show all posts

Explain the social responsibility of commercial organisation towards Employees and Government?

Definition: -H.R.BOWEN defines “Social responsibility of business refers to the obligation of business to pursue those policies, to make those decisions, or to follow those lines of actions, which are desirable in terms of objectives and values of our society.”

Meaning: -The survival & success of a business depends upon the service of its efficient work force. Human resource or employees is one of the greatest resources of all the resources

1. Job security: -The Company should provide job security to its employees. The workers should not be kept temporarily for a long time. They must be given permanent jobs. Otherwise they may be frustrated.

2. Monetary factors: - Workers should be paid adequate wages and other incentives like bonus, medical allowance, travelling allowance; etc Prompt payment often results in higher motivation to the workforce.

3. Working conditions: - The workers should be provided with good working conditions. There should be adequate lighting and ventilation. Noise, dirt and dust pollution should be avoided.

4. Health and Safety measures: - The Company should take adequate measures to protect health of the employees. They should be provided with canteen facilities, and medical facilities. Proper maintenance of machines and buildings must be done to prevent accidents.

5. Proper personal policies: - There must be proper personal policies in respect of transfers, promotions, recruitment, training, etc. There should be no partiality in Promotions and transfers of employees.

6. Workers Participation in Management: -The Workers must been couraged to take part in management. There are different ways of workers participation in management, such as quality circles, work committee, suggestions scheme, and co-partnership, etc.,

7. Grievance Procedure: -There should be a proper Grievance Procedure to handle employees’ complaints. Any complaint of the employee must be immediately sorted by following suitable Grievance Procedure.

RESPONSIBILITIES TOWARDS GOVERNMENT

The Government also expects social assistance from the corporate sector in the following areas:-

1. Assistance in implementing Socio-economic policies: -The government expects cooperation and assistance from the business sector to assist it in implementing socio-economic programmes

2. Payment of Taxes: -The government expects the corporate sector to pay taxes and duties regularly. If the corporate sector does not pay taxes and duties on time, then it would be difficult for the government to undertake its plans.

3. Observance of Government Rules and Regulations: -The government expects strict observances of its rules and regulations on the part of the corporate sector. If the corporate sector has any valid suggestions to modify the rules and regulations, then it should do so in the interest of the society as a whole.

4. Political Stability: -The corporate sector should work towards the political stability of the country. A stable government often brings more returns and peace in a democratic society. Therefore, corporate sector should not support those elements who are indulging in political instability.

5. No seeking of Unfair Favours: -The companies should not seek unfair favours from government officials by bribing or influencing them.

6. Earnings of Foreign Exchange: -Companies, especially the large ones should enter in export trade to earn valuable foreign exchange for the country. This foreign exchange is necessary to pay for vital imports.

7. Advising the Government: -Corporate sector should provide timely advise to the government in respect of framing various policies, such as export-import policy, licensing policy, industrial policy. Etc,

Explain the social responsibility of commercial organisation towards employee and shareholders?

Explain the social responsibility of commercial organisation towards employee and

shareholders?

Meaning: -The survival & success of a business depends upon the service of its efficient work force. Human resource or employees is one of the greatest resources of all the resources.

3. Working conditions: - The workers should be provided with good working conditions. There should be adequate lighting and ventilation. Noise, dirt and dust pollution should be avoided.

RESPONSIBILITIES TOWARDS SHAREHOLDERS

The shareholders are the owners of the company. They have invested their funds for higher returns. They expect certain responsibilities on the Part of the management.

1. Fair return on investment: -The shareholders expect a fair return on their investment. After all they have invested their valuable resources.

2. Expansion and Diversification: -The shareholders expect that the management should undertake expansion and diversifications programmes. This will result in more returns to the shareholders.

3. Proper use of Shareholders Funds: -The shareholders expect optimum utilization of their funds. They will not tolerate the management, if it spends their funds in unproductive manner.

4. Proper conduct of share holders meetings: -The shareholders want fair conduct of meeting. There should be fair conduct of meetings. There should be fair elections at company meetings.

5. Proper Disclosure: -The management should make a proper disclosure regarding the affairs of the business. The accounts must be properly maintained and audited from time to time. The share holders should allowed getting the copies of the audited report sheets of the company.

6. Good public image: -The shareholders expect that the management should develop and maintain a good public image. A company that enjoys name and goodwill commands a lot of respect and trust in the share market, labour market, consumer market, and so on.

7. Periodic Information: -The Shareholders expect the company to inform them about important happenings in the company, either at company meetings or through correspondence. The shareholders have a right to be informed of the development in the company.

@ r ` sed for exploiting the consumers and companies in the host country. MNCs are financially very strong and adopt aggressive marketing strategies to sell their products, adopt all means to eliminate competition and create monopoly in the market.

6. Investment: -MNCs prefer to invest in areas of low risk and high profitability. Issues like social welfare, national priority do not find any place on the agenda of MNCs.

7. Artificial Demand: -MNCs are criticised on the ground that they create artificial and unwarranted demand by making extensive use of the advertising and sales promotion techniques.

Explain the Merits and Demerits of Multinational Corporations?

Explain the Merits and Demerits of Multinational Corporations?

Meaning: - The term ‘Multinational’ is widely used all over the world to denote large companies having vast financial, managerial and marketing resources. MNCs are like holding companies having its head office in one country and business activities spread within the country of origin and other countries.

IBM computer and Pepsi-Cola from U.S.A., Siemens from Germany, Sony and Honda from Japan Philips from Holland etc., are some of the MNCs operating at international levels.

Definition:-According to ILO report (i.e. International Labour Organisation) “The essential nature of the multinational enterprises lies in the fact that its managerial headquarters are located in one country, while the enterprise carries out operations in number of other countries’.

The following are the benefits/merits of MNCs:

1. Economic Development: -The Developing countries need both foreign capital and technology to make use of available resources for economic and industrial growth. MNCs can provide the required financial, technical and other resources to needy countries in exchange for economic gains.

2. Technology Gap: - MNCs are the instruments of transfer of technology to the host country. Technology is necessary to bring down cost of production and produce quality goods on a large scale. The services of MNCs can be of great help to bridge the technological gab between developed and developing countries.

3. Industrial Growth: - MNCs are dynamic and offer growth opportunities for domestic industries. MNCs assist local producers to enter the global markets through their well established international network of production and marketing. And there by ensure industrial growth.

4. Marketing Opportunities: - MNCs have access to many markets in different countries. They have the necessary skills and expertise to market products at international level. For example, an Indian Company can enter into Joint Venture with a foreign company to sell its product in the international market.

5. Work Culture: - MNCs introduces a work culture of excellence, professionalism and fairness in deals. The sole objective of Multinational is profit Maximation. To achieve this, the Multinationals use various strategies like product innovation, technology up gradation, professional management etc.

6. Export Promotion: - MNCs assist developing countries in earnings foreign exchange. This can be done by promoting and developing export oriented and import substitute industries.

7. Research and Development: -The resources and experience of MNCs in the field of research enables the host country to establish efficient research and development system. It is a fact that many MNCs are now shifting their research units to countries like India to avail of monetary incentives and cheap labour.

The following are the De-merits MNCs

1. Problem of Technology: - Technology developed by MNCs from developed countries does not fully fit in the needs of developing countries. This is because, such technology is mostly capital intensive.

2. Political Interference: -The MNCs from developed countries are criticised for their interference in the political affairs of developing nations. Through their financial and other resources, they influence the decision-making process of the governments of developing nations.

3. Self-Interest: -MNCs work towards their own self-interest rather than working for the development of host country. They are more interested in making profits at any cost.

4. Outflow of foreign Exchange: -The working of MNC is a burden on the limited resources of developing countries. They charge high price in the form of commission and royalty paid by local subsidiary to its parent company. This leads to outflow of foreign exchange.

5. Exploitation: - MNCs are criticised for exploiting the consumers and companies in the host country. MNCs are financially very strong and adopt aggressive marketing strategies to sell their products, adopt all means to eliminate competition and create monopoly in the market.

6. Investment: -MNCs prefer to invest in areas of low risk and high profitability. Issues like social welfare, national priority do not find any place on the agenda of MNCs.

7. Artificial Demand: -MNCs are criticised on the ground that they create artificial and unwarranted demand by making extensive use of the advertising and sales promotion techniques.

Explain the Merits and Demerits of Multinational Corporations?

Explain the Merits and Demerits of Multinational Corporations?

IBM computer and Pepsi-Cola from U.S.A., Siemens from Germany, Sony and Honda from Japan Philips from Holland etc., are some of the MNCs operating at international levels.

The following are the benefits/merits of MNCs:

6. Export Promotion: - MNCs assist developing countries in earnings foreign exchange. This can be done by promoting and developing export oriented and import substitute industries.

The following are the De-merits MNCs

3. Self-Interest: -MNCs work towards their own self-interest rather than working for the development of host country. They are more interested in making profits at any cost.

6. Investment: -MNCs prefer to invest in areas of low risk and high profitability. Issues like social welfare, national priority do not find any place on the agenda of MNCs.

7. Artificial Demand: -MNCs are criticised on the ground that they create artificial and unwarranted demand by making extensive use of the advertising and sales promotion techniques.

FEATURES OF PARTNERSHIP FIRM?

FEATURES OF PARTNERSHIP FIRM?

Meaning: - Partnership firm is a voluntary association of two or more who contribute their capital and services, and share the profits and losses in an agreed proportion.

Definition: - “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” (Section 4 of the Indian Partnership Act, 1932.)

Following is the features of Partnership firm

1. Joint ownership

2. Agreement

3. Lawful business

4. Unlimited liability

5. Business secrecy

6. Sharing of profit and losses

7. Number of partners

The above Import features are briefly explained as under

1. Joint Ownership: The partnership firm is jointly owned by the partners. The partners have to use the partnership property only for business purpose and not for personal purpose.

2. Agreement: - Partnership is an outcome of an agreement between two or more persons to conduct a business with a view to earn profit. The agreement may be oral or written. It is always advisable to have written agreement.

3. Lawful business: - The partnership firm must undertake only that business is which permitted by law. They must conduct lawful business only and they cannot undertake unlawful business .for ex, sale of illegal arms. Or indulge in smuggling business.

4. Unlimited Liability: -The liability of each partner is joint several and unlimited as per the Indian partnership Act 1932. all the partners is jointly liable along with other partner for the debt of the firm

5. Business Secrecy: -unlike sole trading concern, a partnership firm lacks complete business secrecy. This is because there are several partners and some partners may leak out the business information to outsiders.

6. Sharing of Profit and Losses: - The partners agree to share the profits among themselves in a certain proportion. The agreed proportion depends upon the amounts of capital contributed.

7. Number of Partners: - A partnership must have a Minimum of two Persons. The maximum persons in the case of banking business is Ten and in the case of ordinary partnership (other than banking business), the Maximum number of partner is Twenty.

ORGANISATION OF COMMERCE AND MANAGEMENT QUESTION PAPER

Q. 1 (A) Select the suitable alternatives from the following and rewrite the sentence: 5 marks

1. For partnership organization minimum ________members of persons are required. (Two, seven, ten).

2. The WTO is established in ________________ (New York, Tokyo, Geneva)

3. Businessmen are the _______________ of the society. (Representatives, Members, Trustees)

4. The Consumer Protection Act was passed in the year___________________ (1986, 1956, 1932)

5. Management means _________________. (Order, Co-ordinate, Help)

(B) Match the Pairs: 5 marks

GROUP A	GROUP B
1. Private Company 2. State Commission 3. Direction and Control 4. Henri Fayol 5. Natural Disaster	1. Top Level Management 2. 15 Principles of management 3. Maximum 20 members 4. Lower level management 5. War 6. Compensation more than Rs. 20,00,000 7. Earthquakes 8. 14 Principles of Management 9. Maximum 50 members 10. Compensation up to Rs. 20,00,000

(C) Fill in the Blanks: 5 marks

1. A public company can start its business after getting _______________certificate.

2. A business organization is the essential part of _______________.

3. State Commission is established by _______________Government.

4. The concept of Modern management was introduced by __________________.

5. __________involves all aspect of business.

Q. 2 Write short notes on (any three): - 15 marks.

1. Features of Professional Management

2. Consumer Rights

3. Features of TQM

4. WTO

Q. 3 Distinguish Between: (any Three): - 15 marks.

1. Private Sector organization V/S Public Sector organization

2. State Commission V/S National Commission

3. Joint Stock Company V/S Co-operative society

4. Administration V/S Management

Q. 4 State whether the following statements are true or false: - (Any Three): -15 marks.

1. Disaster management is concerned wit rehabilitation of those who are affected by disaster.

2. Consumers have no Problems in India.

3. The membership of a co-operative society is voluntary.

4. Management is a Continuous Process.

Q. 5 Answer the following questions in short: - (any Two): - 10 marks.

1. Management is an Art?

2. Need for Globalization.

3. Social Values

Q. 6 Define Joint Stock Company? Explain Its Merits and De-merits? 10 marks

Q. 7 Define Planning? Explain its Importance? 10 marks

Q. 8 Social Responsibility of commercial Organization towards Employee and Shareholders? 10 marks