TN Board 12th Commerce Important Questions Chapter 15 Recent Trends in Marketing

TN State Board Kalvi 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 1.
What is E – business?
Answer:

  1. Sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of Human wants is known as business.
  2. All the business transaction carried out through internet and other online tools is called E-business, (internet, intranets and extranets).

Question 2.
What is green marketing?
Answer:

  1. Green marketing implies marketing environmentally friendly products.
  2. It refers to holistic marketing concept with growing awareness about the implications of global-warming, non-biodegradable, solid waste, harmful impact of pollutants etc.
  3. It is also known as environmental marketing, ecological, eco friendly and sustainable marketing.

Question 3.
What is service marketing?
Answer:
A service is any activity or benefit that one party can offer to another which is essentially intangible and which does not result in the ownership of anything like business, professional service, insurance legal service, medical services etc.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 4.
Define E-Marketing.
Answer:
According to Judy Strauss, “E-Marketing refers to application of broad range of information technology for creating more customer value through more effective segmentation targeting planning more efficiently executing the conception, distribution promotion, pricing of goods and services and creating exchanges that satisfy individual consumer and organizations consumer objectives”.

Question 5.
What is E-Tailing?
Answer:

  1. E-tailing or electronic retailing refers to selling of goods and services through a shopping website (internet) or through virtual store to the ultimate consumer.
  2. The customer buys the product by paying through credit card or other methods mentioned at the shopping website.
  3. E-tailing is also called online retailing.

Question 6.
What is Social marketing?
Answer:

  1. Systematic application of marketing philosophy and techniques to achieve specific behavioural goals which ensure social good.
  2. It promotes the consumption of socially desirable products and develops health consciousness.
  3. It helps to eradicate social evils that affect the society and quality of life.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 7.
What is B2B and B2C type of E-Commerce?
Answer:
B2B E-Commerce:

  1. This model focuses on providing products from one business to another.
  2. To find software company office furniture and supply companies document hosting companies and other E-Commerce business.
  3. The business have customer enterprise e-commerce platforms that work directly with other business in a closed environment.

B2C E-Commerce:

  1. B2C sales are the traditional retail model where a business sell to individuals but business is conducted online.
  2. The B2C model works by retailers and marketers that use clear data in various marketing tools, so can sell their products to the internet-users.

Question 8.
Explain the importance of social marketing.
Answer:

  1. Social marketing promotes the consumption of socially desirable products.
  2. To develop health consciousness.
  3. It helps to eradicate social evils that affect the society and quality of life.
  4. To achieve specific behavioural goals which ensure social good.
  5. It raises the living standard of the people in the society.
  6. Developing the products that benefit society in long run and satisfies consumers.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 9.
Discuss the objectives E-Marketing.
Answer:
The following are the objectives of E-Marketing.

  1. Expansion of market share.
  2. Reduction of distribution and promotional expenses.
  3. Achieving higher brand awareness.
  4. Strengthening database.

Question 10.
Elucidate how E-Commerce differs from E-Business.
Answer:
E-Commerce:

  1. E-Commerce refers to the buying and selling of product and services through online.
  2. E-Commerce is a major component of e-business.
  3. E-Commerce includes transactions which are related to money.
  4. E-Commerce requires a website that can represent the business.

E-Business:

  1. Buying and selling of goods and service and much wider range of business processes.
  2. Electronic business via web, internets, intranets, extranets and other online tool.
  3. It includes monetary as well as allied activities.
  4. It requires supply chain management electronic order processing and customer relationship management.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 11.
Explain in detail about Niche marketing.
Answer:

  1. Niche marketing denotes a strategy of directing all marketing efforts towards one well defined segment of the population.
  2. It is found by company, by identifying the need of customers which are not served or under served by the competitors.
  3. The company which identified niche market develops solution to satisfy the needs of niche market.
  4. It aimed at being a big fish in a small pond instead of being a small fish in a big pond.

Question 12.
Explain in detail how traditional marketing differ from E-marketing.
Answer:

E – Marketing

 Traditional Marketing
It is very economical and faster way to promote the products. It is very expensive and takes more time to promote product.
It is quiet easier for promoting product globally in the short time. It is very expensive and time consuming to promote product/ service under traditional marketing.
E – Business enterprises can expand their operation with minimum manpower. It needs more man power.
In this marketing product can be traditional sold or bought 24 × 7, round year with minimum manpower. That is not possible in the marketing.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 13.
Explain advantages and disadvantages of E-tailing.
Answer:
E-Tailing refers to selling of goods and services through a shopping website (internet) or through virtual store to the ultimate consumer.
Advantage of E-tailing:

  1. Customer can shop from the comfort of their homes at anytime of the day.
  2. Infrastructure costs are less for electronic retailing versus physical
    location retail sales.
  3. Companies can move products faster and reach a larger customers base online than the traditional physical locations.

Disadvantage of E-tailing:

  1. Creating and maintaining an E-tailing website can be expensive and required specialized technology skills.
  2. Infrastructure cost can be substantial.
  3. Consumers may have lack of trust shopping on an E-tailers website.

Question 14.
Describe the various strategies pursued in recent day’s marketers.
Answer:

  1. Developing plans and strategies for marketing today is most challenging it.
  2. Increasing choice of interactive devices platforms, and channels that potential customer use from smart phones, Tablets to social networks and Traditional Channel T.V, Print and Radio essential part of integrated campaigns to many business.
  3. Improve knowledge of marketing strategy and planning and educating the consumers.
  4. Voice search most rapidly adopted technologies and changing the way consumer interact with world around them.
  5. Marketer should ensure the main voice providers Google, Apple, Microsoft have the correct facts about their business.
  6. Virtual marketing is the users to pass on a marketing message to other users creating a potentially, exponential growth in the messages visibility
    and effect. Hotmail Company owned by Microsoft promote the services and advertisement message instantly.
  7. Videos on YouTube which are then shared Facebook, Twitter and other channels.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 15.
Compare the concept of social marketing with service marketing.
Answer:
Social Marketing:

  1. Social Marketing promotes the consumption of socially desirable products.
  2. To develop health consciousness.
  3. It helps to eradicate social evils that affect the society and quality of life.
  4. To achieve specific behavioural goals which ensure social good.

Service Marketing:

  1. A service is any activity or benefit that one patty can offer to another which is essentially intangible and which does not result in the ownership of anything.
  2. Service marketing is specialized branch of marketing.
  3. Service marketing denotes the processing of selling service goods like banking, insurance, health care, tourism and professional services etc..
  4. The unique characteristics of service marketing warrant different strategies compared with the marketing of physical goods.

Question 16.
Discuss any two new methods of marketing with it’s advantages.
Answer:
(i) Referral marketing is the method of promoting products or services to new customers through referrals. It refer to spreading the word about a product or service through existing customers of business enterprises.
(ii) Word of mouth marketing which occurs when others tell each other about a business is also considered to be a form of referral marketing. Content marketing is said to be the art of communicating with customers and prospects without selling.

Advantage:

  1. Growth, expansion long term success.
  2. Valuable resource through prospects.
  3. Do the things faster, easier and less expensive.
  4. Adding new information on your website selling opportunity prospects.
  5. Adding new product or service – create an opportunity to get more sales.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Choose the correct answer:

Question 1.
Selling goods/ services through internet is:
(a) Green marketing
(b) E- business
(c) Social marketing
(d) Meta marketing
Answer:
(b) E- business

Question 2.
Which is gateway to internet?
(a) Portal
(b) CPU
(c) Modem
(d) Webnaire
Answer:
(c) Modem

Question 3.
Which one represents a cluster of manufacturers, content providers and online retailers organised around an activity?
(a) Virtual mall
(b) Association
(c) Metomediary
(d) Portal
Answer:
(c) Metomediary

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 4.
Social marketing deals with:
(a) Society
(b) Social Class
(c) Social change
(d) Social evil
Answer:
(c) Social change

Question 5.
Effective use of Social media marketing increase conversion rates of:
(a) Customer to buyers
(b) Retailer to customers
(c) One buyer to another buyer’s
(d) Direct contact of marketer
Answer:
(a) Customer to buyers

Question 6.
A company’s products and prices is visually represented by:
(a) Shopping cart
(b) Web portal
(c) Electronic catalogue
(d) Revenue model
Answer:
(c) Electronic catalogue

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 15 Recent Trends in Marketing

Question 7.
Green Shelter concept was introduced by group:
(a) ACME
(b) Tata
(c) Reliance
(d) ICI
Answer:
(a) ACME

Question 8.
Pure play retailers are called:
(a) Market creators
(b) Transaction brokers
(c) Merchants
(d) Agents
Answer:
(b) Transaction brokers

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 14 Marketing and Marketing Mix

TN State Board Kalvi 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 1.
Define Marketing Mix.
Answer:
“Marketing Mix is a pack of four sets of variable namely Product Variable, Price Variable, Promotion Variable and Place Variable ”. – Mr. Jerome McCarthy.

Question 2.
Give any two internal factors affecting the price of product / service.
Answer:

  • Marketing Mix Strategy
  • Organisational Considerations

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 3.
Define Product.
Answer:

  1. Product is the main element of marketing.
  2. Without a product there can be no marketing.
  3. “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need”.
    – Philip hotter

Question 4.
What are the objectives of marketing?
Answer:

  1. Intelligent and capable application of modem marketing policies.
  2.  To develop the marketing field.
  3. To suggest solution by studying the problems relating to marketing.
  4. To take appropriate actions in the course of action.
  5. To find sources for further information concerning the market problems.

Question 5.
What is need for market and explain the concept of marketing?
Answer:
Need for market:

  1. To develop product by enhancing market segment.
  2. To introduce new modes of line.
  3. To improve the quality of life of the society.

Concept of Marketing:

  1. First find out what customers want and then plan a product to satisfy the wants.
  2. How can we keep out customers satisfied?
  3. Focusing customer needs before developing product.
  4. To satisfy the customer wants first over long term then to concentrate to get profit.
  5. Customer is supreme of king so firms should analyse the needs of their customer.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 6.
What are the factors affecting Price of Product?
Answer:
Internal Factors:

  1. (i) Marketing Objectives
  2. Marketing Mix Strategy
  3. Organisational considerations
  4. Costs and
  5. Organisational Objectives

External Factors:

  1. The market and demand
  2. Competition
  3. Customers
  4.  Suppliers
  5. Legal factors and
  6. Regulatory factors

Question 7.
What do you mean by marketing mix? Describe any two elements.
Answer:
“Marketing Mix is a pack of four sets of Variables namely Product Variable, Price Variable, Promotion Variable and Place Variable
– Mr Jerome Me Carthy

Elements of Marketing Mix:
Product:
Product is the main element of marketing without a product, there can be no marketing. “A product is anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a want or a need”.
– Philip Kotler

Promotion:
An excellent product with competitive price cannot achieve a desired success and acceptance in Market until its special benefits are conveyed effectively to potential consumers.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 8.
Discuss about the Evolution of marketing.
Answer:
(i) Barter system:
The goods are exchange against goods, without any other medium of exchange, like money.

(ii) Production orientations:
A stage where producers, instead of being concerned with the consumer preferences, concentrated on the mass production of goods for the purpose of profits. They cared very little about the customers.

(iii) Sales orientations:
The selling became the dominant factor without any efforts for the satisfaction of the consumer needs.

(iv) Marketing orientation:
Competition became more stiff. Aggressive advertising, personal selling, large scale sales promotion etc., are used as tools to boost sales.

(v) Consumer orientation:
Products are brought forward to the markets which are capable of satisfying the tastes, preferences and expectations of the consumers consumer satisfaction.

(vi) Management orientation:
Marketing function assumes a managerial role to co-ordinate all interactions of business activities.

Question 9.
Why the marketing is important to the society and individual firm? Explain.
Answer:
To the Society:

  1. Marketing is a connecting link between the consumer and the producer.
  2. It helps in increasing the living standard of people.
  3. It helps to increase the nation income.
  4.  Marketing process increases employment opportunities.
  5. Marketing creates modem cultivators.
  6. Marketing includes all activities in the creation of utilities – form, place, time and possession.
  7. A reduction in the cost of marketing is a direct benefit to society.

To the Individual firms:

  1. Marketing generates revenue to firms.
  2. It is the source of information to the top management for taking overall decisions on production.
  3. Marketing and innovation are the two basic functions of all business. The world is dynamic.
  4. It facilitates the development of business and creates employment opportunities for people.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 10.
Narrate the Elements of Marketing mix.
Answer:
Four elements of marketing mix in detail:
(i) Product:
Product is the main element of marketing without a product, these can be no marketing

(ii) Price:
Price is the value of a product expressed in monetary terms. It is the amount charged for the product. Factors affecting price of product/ service Internal as well as External factors.

(iii) Place (Physical Distribution):
An excellent quality product with a competitive price structure backed up by efficient promotional activities.

(iv) Promotion:
An excellent product with competitive price cannot achieve a desired success and acceptance in market unless and until its special features and benefits are conveyed effectively to the potential consumers.

Question 11.
What is Marketing?
Answer:

  1. Marketing is one of the business functions that all activities that take place in relation to markets.
  2. Markets for actualize potential exchange for the purpose of satisfying human needs and wants.
  3. It is one of the oldest professions in the world.
  4. Marketing is indeed an ancient art, it has been practiced in one form or the other since the days of Adam and Eve.
  5. The traditional objective of marketing had been to make the goods available at places where they are needed.
  6. This idea was later on changed by shifting the emphasis from “exchange” to “satisfaction of human wants”.
  7. Modem view that marketing must first findout what customer want and then plan a product to satisfy the wants.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 12.
State to advantages of warehousing.
Answer:
Warehouses create time utility by storing the goods throughout the year and releasing them as and when they are needed.
Advantages of Warehousing:

  1. Protection and preservation of goods.
  2. Regular flow of goods.
  3. It create more employment opportunities both for skilled and unskilled workers in every part of the country.
  4. It is the source of income for the people to improve their standard of living.
  5. To improve stock control and inventory tracking.
  6. Effective management control.
  7. Easy handling – Heavy and bulky goods can be loaded and unloaded by using modem machines.

Question 13.
How market information is helpful to invention of new product in the market?
Answer:

  1. Strong knowledge of your customers.
  2. Marketing research is a systematic process for marketing opportunities and problem solving and collecting and analysing marketing information.
  3. Control over fact, responsibility of the marketing research director.
  4. Design the research carefully and supervise its execution.
  5. Various combination of people, technologies for managing marketing information.
  6. Broader management and strategy decisions.
  7. Research customer performance to contribute improving decision making performers.
  8. Quicker, more accurate need and decision making by the marketer to be regular sources of information about marketing and trading brand awareness.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Choose the correct answer:

Question 1.
The initial stage of Marketing system is:
(a) Monopoly system
(b) Exchange to Money
(c) Barter system
(d) Self producing
Answer:
(c) Barter system

Question 2.
Who is supreme in the Market?
(a) Customer
(b) Seller
(c) Wholesaler
(d) Retailer
Answer:
(a) Customer

Question 3.
In the following variables which one is not the variable of marketing mix?
(a) Place Variable
(b) Product Variable
(c) Program Variable
(d) Price Variable
Answer:
(c) Program Variable

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 14 Marketing and Marketing Mix

Question 4.
Marketing mix means a marketing program that is offered by a firm to its target to earn profits through satisfaction of their wants.
(a) Wholesaler
(b) Retailer
(c) Consumer
(d) Seller
Answer:
(c) Consumer

Question 5.
Which one is the example of Intangible product?
(a) Education
(b) Mobiles
(c) Garments
(d) Vehicles
Answer:
(a) Education

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 13 Concept of Market and Marketer

TN State Board Kalvi 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 1.
What is Market?
Answer:

  1. The word market is derived from the Latin word “Marcatus” which means trade, commerce, merchandise, a place where business is transacted.
  2. It is a medium or place to interact and exchange of goods and services.

Question 2.
Define Marketer.
Answer:
“A person whose duties include the identification of the goods and services desired by a set of consumers, as well as the marketing of those goods and services on behalf of a company ” – Business Dictionary.

Question 3.
What is mean by Regulated Market?
Answer:
These are types of markets which are organized, controlled and regulated by statutory measures.
Eg: Stock exchanges of Mumbai, Chennai, Kolkatta etc.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 4.
Mention any four differences between Wholesale Market and Retail Market.
Answer:

Wholesale Market

 Retail Market
(i) Selling goods in bulk quantities.  (i) Sold to customers in small quantities.
(ii) A link between manufacturer and retailer.  (ii) A link between wholesaler and customer
(iii) Extended area to be covered (various cities).  (iii) Limited area to be covered.
(iv) The goods and services are not sold to customers directly.  (iv) The goods and services are sold to customers directly.

Question 5.
What is meant by Commodity Market?
Answer:
A commodity market is a place where produced goods or consumption goods are bought and sold. Eg: Wheat exchange market, Cotton exchange market.

Question 6.
What can be marketed in the Market?
Answer:
The dynamic items that can be marketed are listed below:

  1. Manufactured goods are the main constituent of marketing in all the countries across the world.
  2. Services of many organizations can be marketed to the consumers namely banking, finance, tourism etc.
  3. An idea may change the world. Innovative and attractive are the desirable products for the marketers to sell.
  4. The event marketing aims at promoting and marketing of special events, shows, exhibitions, fairs etc.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 7.
Mention any three Role of Marketer.
Answer:
(i) Innovator:
Introducing new delivery pattern, creating new business models, introducing change in production process and soon.

(ii) Integrator:
A role of integrator in the sense that he collects feed back or vital inputs from channel members and consumers.

(iii) Implementer:
When he / she actually converts marketing opportunities into marketable product with the help of several functional teams put in place in organization.

Question 8.
Marketer is an innovator? Do you agree?
Answer:

  1. Yes marketer is an Innovator. Marketer seeks to distinguish his products and services by additional features or function to the existing product.
  2. Marketer only modifying the price structure introduction of new pattern of delivery, new business model and introducing new changes in production.

Question 9.
Why Customer support is needed to Market?
Answer:
It is very important customers service to all customers include new, existing and potential customers.

  1. Increase customer loyalty to our business.
  2. It generates positive word of mouth and a good reputation.
  3.  Treating our customers respectfully.
  4. Following upon any feedback we receive from our customers.
  5. Understanding our customers needs and wants.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 10.
Explain the types of market on the basis of time.
Answer:
(i) Very short period market:
Markets which deal in perishable goods like fruits, milk, vegetables etc. There is no change in supply. Price is determined on the basis of demand.

(ii) Short period market:
(a) In certain goods, supply is adjusted to meet the demand.
(b) The demand is greater than supply.

(iii) Long Period market:
This type of market deals in durable goods, where the goods and services are dealt for long period usages.

Question 11.
List down the functions of Marketer.
Answer:

  1. Gathering and analyzing market information
  2. Market planning
  3. Product designing and development
  4. Standardization and grading
  5. Packaging and labelling
  6. Branding
  7. Customer support services
  8. Promotion and selling
  9. Transportation
  10. Storage and warehousing.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 12.
How the market can be classified?
Answer:
On the basis of different approaches markets have been classified as area, nature, transaction, time, volume and regulation.

On the basis of geographical area:
(i) Family market: When exchange of goods or services are confined within a family.
(ii) Local market: Participation of both the buyers and sellers belonging to a local area (town or village).
(iii) National market: A certain type of commodities has demand throughout the country.
(iv) International market or global market: Where the buyers and sellers of goods are from different countries.

On the basis of commodities/Goods:
(a) Commodity market:
(i) Produce exchange market
(ii) Manufactured goods market
(iii) Bullion market

(b) Capital market:
(i) Money market
(ii) Foreign exchange
(iii) The stock market

On the basis of economics:
(i) Perfect market
(ii) Imperfect market

On the basis of transaction:
(i) Spot market
(ii) Future market

On the basis of regulation market:
(i) Regulated market
(ii) Unregulated market

On the basis of time:
(i) Very short period market
(ii) Short period market
(iii) Long period market

On the basis of volume of Business:
(i) Wholesale market
(ii) Retail market

On the basis of importance
(i) Primary market
(ii) Secondary market
(iii) Terminal market

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 13.
How the market can be classified on the basis of Economics?
Answer:
On the basis of Economics:

Perfect market:
A market is said to be a perfect market, if it satisfies the following conditions:

  1. Large number of buyers and sellers are there.
  2. Prices should be uniform through out the market.
  3. Buyers and sellers have a perfect knowledge of market.
  4. Goods can be moved from one place to another without restirictions.
  5. The goods are identical or homogeneous.

Imperfect market:
A market is said to be imperfect when

  1. Products are similar but not identical.
  2. Prices are not uniform.
  3. There is lack of communication.
  4. There are restrictions on the movement of goods.

Question 14.
What is your contribution to promote the market in the modern society?
Answer:

  1. Marketing drives a consumers economy.
  2. Promoting goods and services.
  3. Targeting consumers most likely to become buyers.
  4. Managing consumer expectations.
  5.  Marketing advertising play a huge role in shaping our society.
  6. Profit and charitable groups.
  7. Marketing is helpful in raising and maintaining the standard of living of the economy.
  8. In modem times – latest marketing techniques.
  9. Marketing has infact revolutionized and modernized the living standard of people in modem times.
  10. Marketing creates employment. Marketing as source of income and revenue. As a source of new idea and it is helpful in development of an economy.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Choose the correct answer:

Question 1.
One who promotes or Exchange of goods or services for money is called as:
(a) Seller
(b) Marketer
(c) Customer
(d) Manager
Answer:
(b) Marketer

Question 2.
The marketer initially wants to know in the marketing is:
(a) Qualification of the customer
(b) Quality of the product
(c) Background of the customers
(d) Needs of the customers
Answer:
(d) Needs of the customers

Question 3.
The Spot market is classified on the basis of:
(a) Commodity
(b) Transaction
(c) Regulation
(d) Time
Answer:
(b) Transaction

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Question 4.
Which one of the market deals in the purchase and sale of shares and debentures?
(a) Stock Exchange Market
(b) Manufactured Goods Market
(c) Local Market
(d) Family Market
Answer:
(a) Stock Exchange Market

Question 5.
Stock Exchange Market is also called:
(a) Spot Market
(b) Local Market
(c) Security Market
(d) National Market
Answer:
(c) Security Market

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 12 Employee Training Method

TN State Board Kalvi 12th Commerce Notes Chapter 12 Employee Training Method

Question 1.
What is meant by training?
Answer:

  1. Training enables the employees to guide their behaviour.
  2. Training refers to the teaching and learning activities carried on for the primary purpose of helping members of an organization.
  3. To acquire and to apply the required knowledge, skill and attitudes to perform their jobs effectively and efficiently.

Question 2.
What is Mentoring training method?
Answer:

  1. Mentoring is the process of sharing knowledge and experience of an employee.
  2. It is mostly used for managerial employees.
  3. Mentoring is always done by senior person. It is also one to one interaction.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 3.
What is Role play?
Answer:

  1. Under this method, trainees are explained the situation and assigned roles.
  2. They have to act out the roles assigned to them without any rehearsal.
  3. They have to assume role and play the role without any preparation.

Question 4.
State e-learning method.
Answer:

  1. E-leaming is the use of technological process to access of a traditional classroom or office.
  2. E-leaming is also often referred to us online learning or web based training.
  3. Web based training is anywhere and anytime information can pass over the internet.

Question 5.
What is vestibule training?
Answer:

  1. Vestibule training of employees in an environment similar to actual work environment artificially created for training purpose.
  2. This type of training is given to avoid any damage or loss to machinery in the actual place by trainees and avoid disturbing normal work flow in the actual work place.
  3. It is given to drivers, pilots, space scientists etc.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 6.
What do you mean by on the job training?
Answer:

  1. On the job training refers to the training which is given to the employee at the work place by his immediate supervisor.
  2. The employee learns the job in the actual work environment.
  3. It is based on the principle of “Learning by doing and learning while earning”.
  4. On the job training is suitable for imparting skills that can be learnt in a relatively short period of time.

Question 7.
Write down various steps in a training programme.
Answer:
Training is one of the planned activities to transfer or modify knowledge, skill and attitude.

  1. Whom to train?
  2. Who is the trainee?
  3. Who are the trainers?
  4. What methods will be used for training?
  5. What should be the level of training?
  6. Where to conduct the training programme?

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 8.
Write short note on trainer and trainee.
Answer:
Trainer:

  1. Trainer is a person, who teaches skills to employee and prepare them for a job activity.
  2. Trainers may be supervisor, co-workers, HR staffs, specialists in other parts of the company outside the consultants.
  3. The trainer is otherwise called instructor, coach, teacher, mentor, counsellor, guide manager, tutor and educator etc.

Trainee:

  1. A person who is learning and practising the skills of particular job is called trainee.
  2. Trainees should be selected on the basis of self interest and recommendation by the supervisor or by the human resource department itself.

Question 9.
Define training. Discuss various types of training.
Answer:
According to Dale.S.Bean defined training as “the organized procedure by which people learn knowledge and skill for a definite purpose”.

There are two principal methods of employee training which are used by the organization.

On the job training:

  • On the job training refers to the training which is given to the employee at the work place by his immediate supervisor.
  • The employee learns the job in the actual work environment.
  • It is based on the principle of “Learning by doing and Learning while Earning”.
  • On the job training is suitable for imparting skills that can be learnt in a relatively short period of time.

The following are on the job training methods.

  1. Coaching method
  2. Mentoring method
  3. Job rotation method
  4. Job Instruction Techniques (JIT) method
  5. Apprenticeship training method
  6. Committee assignment
  7. Understudy / Internship training method.

Off the job training:
Off the job training method where in the workers/employees leam the job role away from the actual work floor. Training which is carried out away from our normal place of work.

Off the job training comprises of a place specifically allotted for the training purpose which may be near the actual work place where the workers are required to leam the skills and get well equipped with the tools and techniques that are to be used at the actual work floor.

  1. Lecture method
  2. Group discussion method
  3. Case study method
  4. Seminar / conference method
  5. Role play method
  6. Field trip method
  7. Vestibule training method
  8. e-learning
  9. Demonstration training method
  10. Programmed instruction method

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 10.
What are the difference between on the job training and off the job training?
Answer:
On the job training:

  1. Training which is given to the employee at work place.
  2. It is suitable for imparting skill, that can be leamt in a short period of time.
  3. Training is given by his immediate supervisor.
  4. Employees leams the job in the actual workplace.

Off the job training:

  1. The employees leam the job away from the actual workplace.
  2. When the workers are required to leam the skill and get well equipped with the tools and techniques.
  3. Training is carried out away from our normal place of work.
  4. Trainer may be generally drawn from colleges, universities, consultancies and institutions.

Question 11.
Explain the benefits of training.
Answer:
Benefits of the organization:

  1. It improves the skill of employees and enhances productivity and profitability of the entity.
  2. It reduces wastage of materials and idle time.
  3. It exposes employees to latest trends.
  4. It minimizes the time for supervision.
  5. It reduces labour turnover of employee.
  6. It improves union and management relation.

Benefits to the Employees:

  1. It adds to the knowledge skill and competency of employee.
  2. It improves the employees productivity.
  3. It enhances the morale of the employee.
  4. Employees get higher earnings through incentives and rewards.

Benefits of the customer:

  1. Customers get better quality of product/service.
  2. Customers get innovative products or values added or feature rich products.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Choose the correct answer:

Question 1.
Off the Job training is given:
(a) In the class room
(b) On off days.
(c) Outside the factory
(d) In the playground
Answer:
(c) Outside the factory

Question 2.
Vestibule training is provided:
(a) On the job
(b) In the class room
(c) In a situation similar to actual working environment
(d) By the committee
Answer:
(c) In a situation similar to actual working environment

Question 3.
Improves Skill Levels of Employees to ensure better job performance:
(a) Training
(b) Selection
(c) Recruitment
(d) Performance appraisal
Answer:
(a) Training

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 4.
When trainees are trained by supervisor or by superior at the job is called:
(a) Vestibule training
(b) Refresher training
(c) Role play
(d) Apprenticeship training
Answer:
(d) Apprenticeship training

Question 5.
__________ is useful to prevent skill obsolescence of employees.
(a) Training
(b) Job analysis
(c) Selection
(d) Recruitment
Answer:
(a) Training

Question 6.
Training methods can be classified into training __________ training.
(a) Job rotation and Job enrichment
(b) On the Job and Off the Job
(c) Job analysis and Job design
(d) Physical and mental
Answer:
(b) On the Job and Off the Job

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 12 Employee Training Method

Question 7.
Case study method is ______ type of trainee.
(a) Only theoritical training
(b) Both theory and practical training
(c) Hands on training
(d) Abservation Training
Answer:
(b) Both theory and practical training

Question 8.
Elaborate discussion on specific topic comes under _________ method of training.
(a) Under study
(b) Coaching
(c) Conferences
(d) Counseling
Answer:
(c) Conferences

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 11 Employee Selection Process

TN State Board Kalvi 12th Commerce Notes Chapter 11 Employee Selection Process

Question 1.
What is selection?
Answer:

  1. A selection process includes a number of steps – screening the application forms, test, interview, checking of references, physical examination and approval by appropriate authority.
  2. Selection is the process of choosing the most suitable person for the vacant position in the organization.

Question 2.
What is an interview?
Answer:

  1. Interview represents a face to face interaction between the interviewer and interviewee.
  2. According to Scott and others, “an interview is a purpose full exchange of ideas, the answering of questions and communication between two or more persons.

Question 3.
What is intelligence test?
Answer:

  1. Intelligence tests are one of the psychological tests, that is designed to measure a variety of mental ability, individual capacity of a candidate.
  2. The main aim of these tests is to obtain an idea of the persons intellectual potential.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 4.
What do you mean by test?
Answer:

  1. Tests are conducted in the selection process to find out the suitable candidate for specific job.
  2. Selection process to ensure whether the candidate to possesses the necessary qualification to fit into various positions in the organization.

Question 5.
What do you understand about bio data?
Answer:

  1. Bio-data is an abbreviation for the term biographical data.
  2. As a document format. It is typically one – three pages long and is used to apply for employment.
  3. Bio-data format includes relevant information about an individual such as personal information.

Question 6.
What do you mean by placement?
Answer:

  1. The process of placing the right man on the right job is called ‘Placement”.
  2. In other words, placement is a process of assigning a specific job to each and every candidate selected.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 7.
What is stress interview?
Answer:

  1. It is conducted to test the temperament and emotional balance of the candidate interviewed.
  2. Interviewer deliberately creates stressful situation by directing the candidate to do irrational and irritating activities.
  3. They assess the suitability of the candidate by observing the reaction and response of the candidate to the stressful situation.
    Eg: Sales representatives, Staff for defence.

Question 8.
What is structured interview?
Answer:

  1. A series of question to be asked by the interviewer are pre-prepared by the interviewer.
  2. These questions are asked in the interview.
  3. Ultimately interviewees are ranked on the basis of score earned by the candidate in the interview.

Question 9.
Name the types of selection test.
Answer:
(a) Ability test:

  1. Aptitude test
  2. Numerical test
  3. Verbal reasoning test
  4. Inductive reasoning test
  5. Mechanical reasoning test
  6. Diagrammatic reasoning test
  7. Spatial reasoning test
  8. Situational judgement test
  9. Mental arithmetic test
  10. Vocabulary test
  11. Number sequence test
  12. Achievement test
  13. Intelligence tests
  14. Judgement test

(b) Personality test:

  1. Interest
  2. Personality inventory test
  3. Projective test / Thematic Appreciation test
  4. Attitude test

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 10.
What do you mean by achievement test?
Answer:

  1. This test measures a candidate’s capacity to achieve in a particular field.
  2. This test measures a candidate’s level of skill in certain areas, accomplishment and knowledge in a particular subject.
  3. This test conducted before, during or after a learning experience.
  4. The regular examination conducted in educational institution represents achievement test. It is also called proficiency test.

Question 11.
Why do you think the medical examinations of a candidate is necessary?
Answer:

  1. It determines an applicants physical ability to perform a specific job.
  2. Physical fitness of the candidate under selection to the job concerned.
  3. To protect existing employees of business organization from infections, diseases likely to be spread by the candidate selected.
  4. To check excessive expenditure in the treatment of selected employee after placement.

Question 12.
What is aptitude test?
Answer:

  1. It is a test to measure suitability of the candidates for the post/role.
  2. It is actually measures whether the candidate possess a set of skills required to perform a given job.
  3. It helps in predicting the ability and future performance of the candidate.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 13.
How is panel interview conducted?
Answer:

  1. When a group of people interview the candidate, it is called panel interview.
  2. Panel comprises chair person, subject experts, psychological experts, representatives of minorities, under privileged groups, nominees of higher bodies and so on.
  3. All the panel members ask different types of questions on general areas of specification of the candidate.
  4. At the end, the marks awarded by all the members are aggregated and the candidates are ranked accordingly.

Question 14.
List out the various selection interviews.
Answer:

  1. Preliminary interview
  2. Structured interview
  3. Unstructured interview
  4. In depth interview
  5. Panel interview
  6.  Stress interview
  7. Telephone interview
  8. Online interview
  9. Group interview
  10. Video conferencing interview.

Question 15.
List out the significance of placement.
Answer:

  1. It improves employee morale.
  2. It helps in reducing employee turnover.
  3. It helps in reducing conflict rates or accidents.
  4. It avoids misfit between the candidates and the job.
  5. It helps the candidate to work as per the pre-determined objectives of the organization.
  6. It involve assigning a specific rank and responsibilities to an individual.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 16.
Briefly explain the various types of tests.
Answer:
In select on process various types of test are conducted whether the candidate possesses the necessary qualifications to fit into various positions in the organization.

Ability test:
A test designed to measure an individuals cognitive function in a specific area. Eg: Mental aptitude reasoning ability.

Aptitude test:
It actually measures whether the candidate possess a set of skills required to perform a given job. Aptitude test can be measured by the following ways.
(i) Numerical reasoning test
(ii) Verbal reasoning test
(iii) Inductive reasoning test
(iv) Mechanical reasoning test
(v) Diagrammatic reasoning test
(vi) Spatial Reasoning test
(vii) Situational judgement test
(viii) Mental arithmetic, test
(ix) Vocabulary test
(x) Number sequence test

Achievement test:
This test measures a candidates capacity to achieve in a particular field. This test measures a candidates level of skill in certain areas and knowledge in a particular subject. It is also called proficiency test.

Intelligence tests:
It is one of the psychological tests that is designed to measure a variety of mental ability, individual capacity of a candidate. Judgement test: This test is conducted to test the presence of mind and reasoning capacity of the candidates.

Personality test:
Personality test refers to the test conducted to find out the non-intellectual traits of a candidate namely temperament, emotional response, capability and stability. It comprises of following tests.
(i) Interest test
(ii) Personality inventory test
(iii) Projective test/ Thematic appreciation test
(iv) Attitude test

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 17.
Explain the important methods of interview.
Answer:
Interview represents a face to face interaction between the interviewer and the interviewee.

(i) Preliminary interview:
Team of experts conducts their interview primarily to eliminate those who are unqualified and unfit candidates.

(ii) Structure interview:
A series of questions to be asked by the interviewer and prepared by the interviewer and only these questions are asked in the interview.

(iii) Unstructured interview:
Interviewer, determine the suitability of the candidate based on their response to the random questions raised in the interview.

(iv In depth interview:
This type of interview helps the interviewers to learn about the candidates expertise and practical exposure with respect to his/her area of specialization.

(v) Panel interview:
Where a group of people interview the candidate. All panel members ask different types of questions on general areas of specializations of the candidate. At the end, the marks awarded by all members are aggregated and the candidates are ranked accordingly.

(vi) Stress interview:
To access the suitability of the candidate by observing the reaction and response of the candidate to the stressful situation.

(vii) Telephone interview:
Where the candidates live far away from organization and find it difficult to attend the interview. So telephone interview is conducted by some organization to eliminate unfit and unsuitable candidate at the preliminary stage itself.

(viii) Online interview:
Interviews are conducted by means of internet via Skype, We chat, Google duo, Viber, Whatsapp or video chat applications.

(ix) Group interview:
A group interview is a screening process where multiple candidates are interviewed at the same time.

(x) Video conferencing interview:
Video conferencing interview is a kind of conference call that connects the candidate with companies located across various geographies. It has multi point in which allow two or more people in different locations to participate in the interview process.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 18.
Explain the principles of placement.
Answer:
The process of placing the right man on the right job is called “placement”.
Following principles are followed at the time of placement of an employee.
(i) Job first, man next:
(a) Man should be placed on the job according to the requirement of the job.
(b) “Job first man next” should be principles of placement. .

(ii) Job offer:
The job should be offered to the man based on his qualification.

(iii) Terms and conditions:
The employee should be made conversant with the conditions and culture prevailing in the organization.

(iv) Aware about the penalties:
The employee should also be made aware of the penalties if he / she commits a wrong or lapse.

(v) Loyalty and co-operation:
When placing new recruit on the job, an effort should be made to develop a sense of loyalty and co-operation in him, so that he/she may realize his/her responsibilities better towards the job and the organization.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Choose the correct answer:

Question 1.
The recruitment and Selection Process aimed at right kind of people:
(a) At right people
(b) At right time
(c) To do right things
(d) All of the above
Answer:
(d) All of the above

Question 2.
The poor quality of selection will mean extra cost on _________ and supervision.
(a) Training
(b) Recruitment
(c) work quality
(d) None of these
Answer:
(a) Training

Question 3.
________ refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants.
(a) Selection
(b) Training
(c) Recruitment
(d) Induction
Answer:
(c) Recruitment

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 4.
Selection is usually considered as a ________ process.
(a) Positive
(b) Negative
(c) Natural
(d) None of these
Answer:
(b) Negative

Question 5.
Which of the following test is used to measure the various characteristics of ’ the candidate?
(a) physical Test
(b) Psychological Test
(c) attitude Test
(d) Proficiency tests
Answer:
(b) Psychological Test

Question 6.
Which of the following orders is followed in a typical selection process?
(a) application form test and or interview, reference check and physical examination.
(b) Application form test and or interview, reference check, and physical examination.
(c) Reference check, application form, test and interview and physical examination.
(d) physical examination test and on interview application term and reference check.
Answer:
(b) Application form test and or interview, reference check, and physical examination.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 7.
The purpose of an application blank is to gather information about the:
(a) Company
(b) Candidate
(c) Questionnaire or Interview Schedule
(d) Competitors
Answer:
(b) Candidate

Question 8.
Identify the test that acts as an instrument to discover the inherent ability of a candidate.
(a) Aptitude Test
(b) Attitude Test
(c) Proficiency Test
(d) Physical Test
Answer:
(a) Aptitude Test

Question 9.
The process of eliminating unsuitable candidate is called:
(a) Selection
(b) Recruitment
(c) Interview
(d) Induction
Answer:
(a) Selection

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 10.
Scrutiny of application process is the:
(a) Last step in Selection process
(b) First step in Selection process
(c) Third step in Selection Process
(d) None of the above
Answer:
(b) First step in Selection process

Question 11.
Selection process helps in:
(a) Locating candidates
(b) Determining the suitability of the candidates
(c) preparing employees for training
(d) None of these
Answer:
(b) Determining the suitability of the candidates

Question 12.
The process of placing the right man on the right job is called:
(a) Training
(b) Placement
(c) Promotion
(d) Transfer
Answer:
(b) Placement

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 11 Employee Selection Process

Question 13.
Probation/Trial period signifies:
(a) one year to two years
(b) one year to three years
(c) Two years to four years
(d) None of the above
Answer:
(a) one year to two years

Question 14.
Job first man next is one of the principles of:
(a) Test
(b) Interview
(c) Training
(d) placement
Answer:
(d) placement

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 10 Recruitment Methods

TN State Board Kalvi 12th Commerce Notes Chapter 10 Recruitment Methods

Question 1.
Give the meaning of Recruitment.
Answer:

  1. Recruitment is the process of finding suitable candidates for the various posts in an organization.
  2. It acts as a link between Job Provider and Job Seeker.
  3. Then the organisation scrutinise the applications received and the suitable candidates are shortlisted for selection.

Question 2.
What is promotion ?
Answer:

  1. Based on seniority and merits of the employees they are given opportunity to move up in the organisation hierarchy.
  2. It refers to the advancement of an employee’s rank or position in a hierarchical structure.
    Eg: Sales promotion – Discount prices of a particular product or Service.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 3.
State two benefits of internal source of recruitment.
Answer:

  1. Internal candidate are already part of your workplace it is also easier to access the record of the employees.
  2. Time saving economical, simple, reliable.
  3. Work as a tool of motivate for the staff. It promotes a feeling of loyality amongst the employees.

Question 4.
Mention any two features of campus recruitment.
Answer:
The organisation visits the educational Institution to identify and recruit suitable candidates.

Question 5.
List the benefits of external source of recruitment.
Answer:

  1. It offers wide scope for selection.
  2. Large number of suitable candidates will come for the selection process.
  3. There is less chance of bias or Partiality.
  4. New candidates with new ideas to enter into organisation.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 6.
Define the term Recruitment.
Answer:

  1. According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization
  2. Recruitment is the process of finding suitable candidates for the various posts in an organization.
  3. It acts as a link between job provider and job seeker. It encourages the prospective employees to apply for the job. Then the organisation shortlisted suitable candidates for selection.

Question 7.
What are the features of internal source of recruitment?
Answer:

  1. Internal sources of Recruitment seeks applicants for position from within the company.
  2. Initial consideration should be given to a company’s current employee which is concern with internal Recruitment.
  3. Transfer: Transfer of employee from one department with surplus staff to that of another with deficit staff.
  4. Upgrading: Performance appraisal helps in the process of moving employees from a lower position to a higher position.
  5. Dependants: The legal heir or the dependent employee may be given a chance to replace the deceased.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 8.
Give two points of differences between advertisement and unsolicited application.
Answer:
Advertisement:

  1. The employer can advertise in dailies, journals, magazines etc., about the vacancies in the organization.
  2. To specifying the nature of work, nature of vacancy, Qualification and experience required, Salary offered, mode of applying and the time limit within which the candidate has to apply.

Unsolicited applicants:

  1. These are the applications of job seekers who voluntarily apply for the vacancies not yet notified by the organisations.
  2. It is a group of Applicants who have applied without any advertisement or requirement of the company.

Question 9.
What is the importance of job portals?
Answer:

  1. Using internet job portals organisation can screen for the prospective candidates and fill up their vacancies.
  2. A job portal is a website that bridges the gap between employers and job seekers.
  3. Companies can advertise their vacancies and search through applications and (CVS) of potential employees candidates can create a profile for themselves.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 10.
State the steps in Recruitment process.
Answer:

  1. Planning recruitment
  2. Determining vacancies
  3. Identifying the sources
  4. Drafting information for advertisement
  5. Selecting the suitable mode of Advertisement
  6. Facilitating Selection Process
  7. Evaluation and Control

Question 11.
Explain the different methods of recruitment.
Answer:
Recruitment methods refer to means by which an organisation reaches to the potential job seekers
Method of Recruitment:
(i) Direct Method
(ii) Indirect Method

Direct Method:
(i) Advertisement:
The employer can advertise in dailies, journals, magazines, etc., about the vacancies in the organisation.

(ii) Unsolicited applicants:
These are the applications of job seekers who voluntarily apply for the vacancies not yet notified by the organisations.

(iii) Walk-ins:
Walk-in applicants with suitable qualifications and requirement can be another source of requirement

(iv) Campus Recruitment:
The organisations visit the educational institutions to identify and recruit suitable candidates.

Indirect Method:
(i) Employee referral:
The existing employees of the organisation may recommended some other relatives or known people who will be suitable for the existing vacancies.

(ii) Government Employment Exchange:
These are exchanges established by Government which facilitates recruitment throughout the country. It makes
available information required through data base for the employer as well as the Job Seeker.

(iii) Employment Consultancies:
These types of firms facilitate recruitment on behalf of client companies at cost. They provide date relating to executives and top level personnel for which service they charge consultation fees also known as Recruitment Process Outsourcing.

(iv) Professional Associations:
Organisations seeking applicant of high calibre and repute with technical knowledge approach professional associations like Institute of Chartered Accounts, The Indian Medical Association.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 12.
Describe the significance of External source of recruitment.
Answer:
Hiring people from outside the organisation. In other words seeking applicants from those who are external to the organisation.

  1. The employer can advertise in dailies, journals, magazines etc., about the vacancies in the organisation.
  2. Walk-in applicants with suitable qualification and requirement can be another source of requirement.
  3. The organisations visit the educational qualification institutions to identity and recruit suitable candidates.
  4. Casual or temporary unskilled employees are recruited by Factory gate and paid on hourly or daily basis.
  5. The organisations which carryout recruitment online methods is said to follow e-recruitment
  6. Labour Contractors: Organisations recruit unskilled and manual labourers through these contractors.

Question 13.
Elaborate on the factors affecting recruitment.
Answer:
Internal and External factors which affects the Recruitment Process in Human Resource Management.

  1. Need of the organisation and organisational objectives.
  2. Personnel policies of the organisation and its competitors.
  3. Government Policies on reservation.
  4. Recruitment Cost.
  5. Human Resource Planning: What kind of Qualification and Skills they might possess.
  6. Size of the organisation: It will affects the recruitment process.
  7. Cost involved in recruitments: Source of recruitment which will be cost effective to the organisation for each candidates.
  8. Growth and Expansion depend upon the development, the organisation required vacancy to be selected the candidates.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 14.
Differentiate Recruitment and Selection.
Answer:
Employing the right people for business is the most important part of the organisation. Both Recruitment and Selection are the two phases of the employment process.

(a) Recruitment:

  1. Searching the candidates for employment.
  2. To create a talent pool of candidates to enables the selection.
  3. It is positive process encouraging more and more employees to apply.
  4. Tapping the source of Human Resource.
  5. It act as link between job provider and job seeker.
  6. It is a process of attracting potential people to apply for a job in an organisation.

(b) Selection:

  1. Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons.
  2. Selection process to choose right person to fill the various positions in the organisation.
  3. It is a negative process. It involves rejection of unsuitable candidates.
  4. Select most suitable candidates through interviews and tests.
  5. The selection process may be adopted depending upon the nature of jobs and organisation.
  6. A selection process includes a number of steps – Screening application forms test, interview, checking of references, physical examination and approval by appropriate authority.

Question 15.
Discuss the importance of Recruitment.
Answer:
A good recruitment processes can minimize the time involved in searching interviewing, hiring and training.

  1. Filling up the position with the right candidate and retain qualified employees.
  2. Industries acquiring recruiting companies.
  3. Selected the best suited candidates.
  4. Increase or maintain morale/satisfaction.
  5. Reward and encourage peak performance.
  6. It is a process of attracting potential people to apply a job in an organisation.
  7. Meeting the present and future requirement, Recruitment in an organisation suitable candidates are shortlisted for selection.
  8. Different parts of recruiting level deals with job analysis, job description job profile, personal specification and desirable criteria time limit within which the candidates has to apply.
  9. Employees referral as a part of Recruitment.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Choose the correct answer:

Question 1.
Recruitment is the process of identifying:
(a) right man for right job
(b) good performer
(c) Right job
(d) All of the above
Answer:
(a) right man for right job

Question 2.
Recruitment bridges gap between _______ and _________.
(a) job seeker and job provider
(b) job seeker and agent
(c) job provider and owner
(d) owner and servant
Answer:
(a) job seeker and job provider

Question 3.
Advertisement is a ________ source of recruitment.
(a) internal
(b) external
(c) agent
(d) outsourcing
Answer:
(b) external

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 10 Recruitment Methods

Question 4.
Transfer is an _______ source of recruitment.
(a) internal
(b) external
(c) outsourcing
(d) None of the above
Answer:
(a) internal

Question 5.
e-recruitment is possible only through ________ facility.
(a) Computer
(b) internet
(c) Broadband
(d) 4G
Answer:
(b) internet

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 9 Fundamentals of Human Resource Management

TN State Board Kalvi 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 1.
Give the meaning of Human Resource.
Answer:

  1. The advent of globalization, liberalization and privatization leading to advancement in information, communication and technology paved way for exhibiting the high level of innovation and creativity in human resource.
  2. Individuals who acquired the required skill sets, talents, knowledge, competencies and capabilities in the accomplishment of both individual and organisational objectives.

Question 2.
What is Human Resource Management?
Answer:

  1. The branch of management that deals with managing human resource is known as Human resource management.
  2. Human resource management is a function of management concerned with hiring, motivating and maintaining people is an organization. It focuses on people is an organization.

Question 3.
State two features of HRM.
Answer:
(i) Universally relevant:
Human resource management has universal relevance. The approach and style varies depending the nature of organization structure and is applicable at all levels.

(ii) Goal oriented:
The accomplishment of organizational goals is made possible through best utilization of human resource in an organization.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 4.
Mention two characteristics of Human Resource.
Answer:

  1. Human resource exhibits innovation and creativity.
  2. Human resource alone can think, act, analyze and interpret.
  3. Human resource is the only factor of production that lives.

Question 5.
List the functions of HRM.
Answer:

  1. Managerial function: Planning, organizing, directing, controlling.
  2. Operative function: Procurement, development, compensation, retention, integration and maintenance.

Question 6.
Define the term Human Resource Management.
Answer:

  1. Human resource management is a function of management concerned with hiring motivating and maintaining people in an organization.
  2. In order to achieve the personal and organizational objectives human resources are to be trained up and managed.
  3. According to Dale Yoder Human resource management as “the effective process of planning and directing the application, development and utilization of human resources in employment”.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 7.
What are the features of Human resources?
Answer:

  1. Human resource is the only factor of production that lives.
  2. Human resource created all other resource.
  3. Human resource exhibits innovation and creativity
  4. Human resource alone can think, act, analyze and interpret.
  5. Human resources are emotional beings.
  6. The behaviour of Human resources are unpredictable.
  7. Human resources are movable.
  8. Human resources can work as a team.

Question 8.
Give two points of differences between HR and HRM.
Answer:

Human Resource

 Human Resource Management
Human resource exhibits innovation and creativity.  Managing the human resource is to motivate, participate and co ordinate the available work force.
Human resource alone can think, act analyze and interpret.  HRM focuses on the development of man power through training and development programmes.
Over years human resources gains value and appreciates.  Honing of skills through training increases the effective use of the resource procured.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 9.
What is the importance of Human resource?
Answer:

  1. It is only through human resources all other resources are effectively used.
  2. Industrial relations depend on human resources.
  3. Human resource manages all other factors of production.
  4. Human resource can be utilized at all levels of management.
  5. Human resources are well protected by legislative frame works.
  6.  The sustainable growth of an organization depends on the important resource called human resource.

Question 10.
State the functions of Human Resource Management.
Answer:
(a) Managerial function:

  1. Planning
  2. Organizing
  3. Directing
  4. Controlling

(b) Operative function:

  1. Procurement
  2. Development
  3. Compensation
  4. Retention
  5. Integration
  6. Maintenance

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 11.
Explain the unique features of Human Resource.
Answer:

  1. Human resource is the only factor of production that lives.
  2. Human resource created all other resources.
  3. It is only the labour of employees that is hired and not the employee himself.
  4. Human resource exhibits innovation and creativity.
  5. Human resources are emotional beings.
  6. Human resources can be motivated either financially or non-financially.
  7.  The behaviour of human resources are unpredictable.
  8. Human resources are movable.
  9. Human resources can work as a team.
  10. Human resources alone can think, act, analyse and interpret.

Question 12.
Describe the significance of Human Resource Management.
Answer:
There are various reasons why Human resource management is important. They are as follows:

To identify man power needs:
The number of men required are to be identified accurately to optimize the cost.

To incorporate change:
Change is constant in any organisation and change has to be introduced in such a way that Human resource management acts as an agent to make the change effective.

To ensure the correct requirement of man power:
At any time the organisation should not suffer from shortage or surplus man power which is made possible through Human resource management.

To select right man for right job:
To ensures the right talent available for the right job, so that no employee is either under qualified or over qualified.

To update the skill and knowledge:
In the process of employee, skill and knowledge enhancement to enable the employees to remain upto date through training and development programmes.

To provide incentives and bonus to best performers:
HRM to recognize the best performers and to provide them with bonus and incentives as a form of appreciation for their work.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 13.
Elaborate on the Managerial functions of Human Resource Management.
Answer:
Planning:
Planning is deciding in advance what to do, how to do and who is to do it. It helps in the systematic operation of business. It involves determination objectives, policies, procedures, rules, strategies, programmes and budgets.

Organisation:
It includes division of work among employees. By assigning each employee their duties, delegation of authority as required and creation of accountability to make employees responsible.

Directing:
It involves issue of orders and instructions along with supervision guidance and motivation to get the best out of employees.

Controlling:
The control process includes fixing of standards, measuring actual performance comparing actual with standard laid down and taking corrective action. This is made possible through observation, supervision, reports, records and audit.

Question 14.
Differentiate HR from HRM.
Answer:
Human Resource:

  1. Individuals who acquired the required skill sets, talents, knowledge, competencies, capabilities is known as Human resources.
  2. HR created all other resources.
  3. Human resource alone can think, act, analyse and interpret.
  4. Human resource can work as a team.
  5. Human resource can be utilized at all levels of management.

Human Resource Management:

  1. It is a function, of management concerned with hiring, motivating and maintaining people in an organization.
  2. The approach and style varies depending the nature of organization structure.
  3. Managing the human resource is to motivate, participate and coordinate the available work force.
  4. HRM is a intangible function which can be measured only by results.
  5. HRM ensures the right talent available for the right job and to secure favourable employee attitude towards the management.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 15.
Discuss the Operating functions HRM.
Answer:
(i) Procurement:
Acquisition deals with job analysis. Human resource planning, recruitment, selection placement, transfer and promotion.

(ii) Development:
Development includes performance, appraisal, training, executive development, career planning and organizational development.

(iii) Compensation:
It deals with job evaluation, wage and salary administration, incentives bonus, and social security schemes.

(iv) Retention:
This is made possible through health and safety, welfare social security, job satisfaction and quality of work life.

(v) Integration:
Aim to bring about reconciliation between personal interest and organizational interest.

(vi) Maintenance:
This encourages employees to work with job satisfaction, reducing labour turnover accounting for human resource and carrying out audit and research.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Choose the correct answer:

Question 1.
Human resource is a asset.
(a) Tangible
(b) Intangible
(c) Fixed
(d) Current
Answer:
(b) Intangible

Question 2.
Human Resource management is both _______ and ________
(a) Science and art
(b) Theory and practice
(c) History and Geography
(d) None of the above
Answer:
(a) Science and art

Question 3.
Planning is a _______ function.
(a) selective
(b) pervasive
(c) both (a) and (b)
(d) None of the above
Answer:
(b) pervasive

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Question 4.
Human resource management determines the ________ relationship.
(a) internal, external
(b) employer, employee
(c) Owner, Servant
(d) Principle, Agent
Answer:
(b) employer, employee

Question 5.
Labour turnover is the rate at which employees _________ the organisation.
(a) enter
(b) leave
(c) Salary
(d) None of the above
Answer:
(b) leave

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 8 Securities Exchange Board of India (SEBI)

TN State Board Kalvi 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 1.
Write a short notes on SEBI.
Answer:

  1. Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market.
  2. SEBI Act 1992 being passed by the Indian Parliament.
  3. SEBI has its headquarters at the business district of BandraKurla Complex in Mumbai.
  4. SEBI is to regulate stock exchanges safeguarding the interest of investors by means of adequate education and guidance.

Question 2.
Write any two objectives of SEBI.
Answer:

  1. The first objective of SEBI is to regulate stock exchanges. So that efficient services may be provided to all the parties operating there.
  2. SEBI is to provide security to the investors.
  3. Many steps have been taken to check insider trading through the medium of the SEBI.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 3.
What is Demat account?
Answer:
A demat account holds all the shares that are purchased in electronic or dematerialized form. Basically, a demat account is to shares. Like the bank account a demat account holds the certificates of financial instruments like shares, bonds, Government securities, mutual funds and Exchange Traded Funds (ETFS).

Question 4.
Mention the headquarters of SEBI.
Answer:
The business district of BandraKurla Complex in Mumbai and has Northern, Eastern, Southern and Western Regional offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.

Question 5.
What are the various ID proofs?
Answer:

  1. Pan Card
  2. Voters ID
  3. Passport
  4. Driver’s License
  5. IT Returns
  6. Telephone bill
  7. Electricity bill

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 6.
What is meant by Dematerialization?
Answer:

  1. Dematerialization is the process by which physical certificates of an investor are taken back by the company/registrar and destroyed.
  2. An equivalent number of securities in the electronic form are credited to the investors account with his Depository Participant.
  3. Dematerialization is done at the request of the Investor.
  4. Trading in dematerialized shares commenced on the NSE in December 1996 where Reliance Industries was the first company to trade its 100 shares in demate form.
  5. In case of the BSE, dematerializations of shares commenced in the year December 1997.

Question 7.
What are the documents required for a Demat account?
Answer:
You need to submit proof of identity and address along with a passport size photograph and the account opening form. Only photocopies of the documents are required for submission but originals are also required for verification.
List of documents that can be used as proofs
(i) Proof of Identity:
Pan Card, Voter’s ID, Passport, Driver’s License and IT Returns

(ii) Proof of Address:
Ration Card, Passport, Voter ID Card, Bank Pass Book, residence telephone bills, electricity bills.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 8.
What is the power of SEBI under Securities Contract Act?
Answer:

  1. For effective regulation of stock exchange, the Ministry of Finance issued a Notification on 13 September 1994.
  2. It is delegating several of its power under the securities contracts (Regulations) Act to SEBI.
  3. SEBI is also empowered by the Finance Ministry to nominate three members on the Governing Body of every stock exchange.

Question 9.
What is meant by Insiders trading?
Answer:

  1. Insider trading means the buying and selling of securities by directors, promoters etc who have access to some confidential information about the company.
  2. Who wish to take advantage of this confidential information.
  3. This affects the interest of the general investors. Many steps have been taken through medium of the SEBI.

Question 10.
Draw the organization structure of SEBI.
Answer:
Organization Structure of SEBI

TN State Board 12th Commerce Important Questions Chapter 8 Securities Exchange Board of India (SEBI) 1

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 11.
What are the functions of SEBI?
Answer:
Securities and Exchange Board of India (SEBI) is the nodal agency which safeguards the interest of an investor in the Indian Financial Market. SEBI performs three key functions, Quasi legislative, Quasi-judicial and Quasi executive.

  1. Safeguarding the interests of investors by means of adequate education and guidance.
  2. SEBI makes rules and regulation that must be followed by the financial Intermediaries like port folio exchanges, underwriters and merchant bankers etc.
  3. Regulating and controlling the business on stock markets. Registration of brokers and Sub-brokers is made mandatory and they have to abide by certain regulations and rules.
  4. Barring insider trading in securities.
  5. Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities markets.
  6. Registering and controlling the functioning of stock brokers, Sub-brokers, Share transfer agents, bankers, trustees, registrars, managers and various other intermediaries to linked to securities markets.
  7. SEBI issues Guidelines and Instructions to business concerning capital issues.
  8. Promoting self-regulatory organization of Intermediaries.
  9. SEBI regulates mergers and acquisitions as way to protect the interest of investors.
  10. Provide appropriate training to financial intermediaries.

Question 12.
Explain the powers of SEBI.
Answer:
Powers relating to Stock Exchanges and Intermediaries:
SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities.
Power to Impose Monetary Penalties:
(i) SEBI has been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations.
(ii) It can even impose suspension of their registration for a short period.

Power to Initiate Actions in Functions Assigned:
SEBI has a power to initiate actions in regard to functions assigned.

Power to Regulate Insider Trading:
SEBI has power to regulate insider trading or can regulate the functions of merchant bankers.

Powers under Securities Contracts Act:
The Ministry of Finance issued a Notification on 13 September 1994 delegating several of its powers under Securities Contracts (Regulations) Act to SEBI.

Power to Regulate Business of Stock Exchanges:
SEBI is also empowered to regulate the business of stock exchanges intermediaries associated with the securities market.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 13.
What are the benefits of Dematerialisation?
Answer:

  1. The risk pertaining to physical certificates like loss, theft, forgery and damages are eliminated completely, with a Demat Account.
  2. Lack of paper work enable quicker transactions and higher efficiency in trading.
  3. Trading has become more convenient as one can trade through computers at any location.
  4. The shares that are created through mergers and consolidation of companies are credited automatically in the Demat account.
  5. As all the transactions occur through the depository participant.
  6. Certain banks also permit holding of both equity and debt securities in a single account.
  7. Banks also provide dedicated and trained customer care officers to assist through all the procedures.
  8. A Demat account holder can buy or sell any amount of shares. There is limit on the number of transactions done using physical securities.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Choose the correct answer:

Question 1.
Securities Exchange Board of India was first established in the year:
(a) 1988
(b) 1992
(c) 1995
(d) 1998
Answer:
(a) 1988

Question 2.
The headquarters of SEBI is:
(a) Calcutta
(b) Bombay
(c) Chennai
(d) Delhi
Answer:
(b) Bombay

Question 3.
In which year SEBI was constituted as the regulator of capital markets in India?
(a) 1988
(b) 1992
(c) 2014
(d) 2013
Answer:
(a) 1988

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 4.
Registering and controlling the functioning of collective investment schemes as:
(a) Mutual Funds
(b) Listing
(c) Rematerialisation
(d) Dematerialization
Answer:
(d) Dematerialization

Question 5.
SEBI is empowered by the Finance ministry to nominate members on the Governing body of every stoAnswer:ck exchange.
(a) 5
(b) 3
(c) 6
(d) 7
Answer:
(b) 3

Question 6.
The process of converting physical shares into electronic form is called:
(a) Dematerialisation
(c) Delisting
(c) Materialisation
(d) Debarring
Answer:
(a) Dematerialisation

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 7.
Trading is dematerialized shares commenced on the NSE is:
(a) January 1996
(b) June 1998
(c) December 1996
(d) December 1998
Answer:
(c) December 1996

Question 8.
________ was the first company to trade its shares in Demat form.
(a) Tata Industries
(b) Reliance Industries
(c) Infosys
(d) Birla Industries
Answer:
(b) Reliance Industries

Question 9.
_____ enables small investors to participate in the investment on share
(a) Mutual Funds
(b) Shares
(c) Debentures
(d) Fixed deposits
Answer:
(a) Mutual Funds

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Question 10.
PAN stands for:
(a) Permanent Amount Number
(b) Primary Account Number
(c) Permanent Account Number
(d) Permanent Account Nominee
Answer:
(c) Permanent Account Number

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 7 Stock Exchange

TN State Board Kalvi 12th Commerce Notes Chapter 7 Stock Exchange

Question 1.
What is meant Stock Exchange?
Answer:

  1. Stock exchange is an organized market for the purchase and sale of industrial and financial security.
  2. It is a convenient place where trading in securities is conducted in a systematic manner that is as per certain rules and regulations.
  3. It is an investment intermediary and facilitates economic and industrial development of a country.

Question 2.
Define Stock Exchange.
Answer:
According to Hastings “Stock exchange or securities market comprises all the places where buyers and sellers of stocks and bonds or their representatives undertake transactions involving the sale of securities”.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 3.
Write any 5 Stock Exchanges in India.
Answer:

  1. The Bombay stock exchange.
  2. Bangalore stock exchange Limited.
  3. The Calcutta stock exchange association.
  4. The Madras stock exchange association Limited.
  5. The Delhi stock exchange association.

Question 4.
What is meant by Remisier?
Answer:
He acts as an agent of a member of a stock exchange. He obtains business for his principle that is the member and gets a commission for that service.

Question 5.
Who is called a Broker?
Answer:
Brokers are commission agents, who acts as an intermediaries between buyers and sellers of securities. They do not purchase or sell securities on their behalf. They bring together the buyers and sellers and help them in making a deal. Brokers charge a commission from both the parties for their service.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 6.
What are the types of Speculator?
Answer:
Speculators in a stock market are of different types.

  1. Bull
  2. Bear
  3. Stag
  4. Lame duck

Question 7.
What is meant by Commodity Exchange?
Answer:
A Commodity Exchange is an exchange where commodities are traded. Tradable commodities fall into the following categories.
Metals (Eg: silver, copper)
Energy (Eg: crude oil, natural gas)
Agricultural (Eg: rice, wheat)
Live stock (Eg: live cattle)

Question 8.
Mention the Recent Development in Stock Exchange.
Answer:

  1. National Stock Exchange of India Limited (NSE)
  2. Stock Holding Corporation of India Limited (SHCIL)
  3. National Clearing and Depository System (NCDS)
  4. Securities Trading Corporation of India (STCI)
  5. National Securities Depository Limited (NSDL)

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 9.
What is the stock trading time in India?
Answer:
(i) The normal trading time for equity market is between 9.15 am to 3.30 pm, Monday to Friday.
(ii) The trading time for commodity (MCX) market is between 10.00 am to 11.30 am, Monday to Friday.
(iii) The timings of the Indian stock markets are divided into three sessions. They are:
(a) Normal sessions
(b) Pre opening sessions and
(c) Post closing sessions.

Question 10.
Explain Dalai Street.
Answer:

  1. Dalai street is an area in downtown, Mumbai, India, that houses the Bombay Stock Exchange (BSE). The largest stock exchange in India and other reputable financial institutions.
  2. It received the name Dalai street after the Bombay stock exchange moved to the area in 1874 and become the first stock exchange recognized by the Indian Government.

Question 11.
What are the limitations of Stock exchange?
Answer:

  1. Lack of uniformity and control of stock exchanges.
  2. Absence of restriction on the membership of stock exchanges.
  3. Failure to control unhealthy speculations.
  4. Allowing more than one charge in the place.
  5. No proper regulations of listing of securities on the stock exchange.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 12.
Explain Bull and Bear.
Answer:
Bull:

  1. A bull or Tejiwala is an operator who expects a rise in prices of securities in the future. In anticipation of price rise he makes purchases of shares at present and other securities with intention to sell at higher prices in future.
  2. He is called bull because just like a bull tends to throw his victim up in the air, the bull speculator stimulates the price to rise. He is an optimistic speculator.

Bear:

  1. A bear or Mandiwala speculator expects prices to fall in future and sells securities at present with a view to purchase them at lower prices in future.
  2. A bear does not have securities at present but sells them at higher prices in anticipation that he will supply them at lower prices in future.
  3. The bear speculator tends to force down ms prices of securities. A bear is pessimistic speculator.

Question 13.
Explain Stag and Lame Duck.
Answer:
Stag:
A stag is a cautious speculator in the stock exchange. He applies for shares in new companies and expects to sell them at a premium, if he gets an allotment. He sells the shares before being called to pay the allotment money. He is also called a premium hunter.

Lame duck:
When a bear finds it difficult to fulfill his commitment, he is said to be struggling like a lame duck. A bear speculator contracts to sell securities at a later date. On the appointed time he is not able to get the securities as the holders are not willing to part with them. Moreover, the buyer is not willing to carry over the transaction.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 14.
Explain National Stock Market System (NSMS).
Answer:
National Stock Market System was advocated by the – high powered group on the establishment of new stock exchanges headed by shri. M.J. Pherwani. (Popularly known as Pherwani committee). At present the national stock market in India comprises the following.

  1. National Stock Exchange of India Limited. (NSE)
  2. Stock Holding Corporation of India Limited. (SHCIL)
  3. National Clearing and Depository System.(NCDS)
  4. Securities Trading Corporation of India. (STCI)
  5. National Securities Depository Limited. (NSDL)

Question 15.
Explain National Stock Exchange (NSE).
Answer:

  1. NSE was incorporated in November 1992. It is a country wide, screen based online and order driven trading system.
  2. It uses satellite link to spread trading throughout the country thereby connecting members scattered all over India.
  3. NSE has two segments that is debt segment and capital segment.
  4. It has ushered in transparent, screen based and user friendly trading of global standards. It has revolutionised stock trading in India.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 16.
Explain the functions of Stock Exchange.
Answer:
The various functions of a stock exchange are explained below:

(i) Ready and continuous market:
If an investor wants to sell his securities he can easily and quickly dispose them off on a stock exchange. This easy marketability of securities increases their liquidity (cash) and consequently raises their value.

(ii) Correct evaluation of securities:
The prices at which securities are bought are sold are recorded and made public. These prices are called “market quotations”. One can easily evaluate the worth of one’s securities on the basis of these quotations.

(iii) Protection to investors:
All dealings in a stock exchange are in accordance with well defined rules and regulations. Any malpractices will be severely punished.

(iv) Aid to capital formation:
Stock exchanges thus ensure a steady flow of capital into industry and assists flow of capital into industry and assists industrial development.

(v) Facilities for speculations:
Speculation is an integral part of stock exchange operations. As a result of speculation, demand for and supply of securities are equalized.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 17.
Explain the features of Stock Exchange.
Answer:
(i) Market for securities:
Stock exchanges is a market, where securities of corporate bodies, Government and semi Government bodies are bought and sold.

(ii) Deals in second hand securities:
It deals with shares, debentures, bonds and such securities already issued by a companies. It deals with existing on secondhand securities and hence it is called secondary market.

(iii) Allows dealings only in listed securities:
Stock exchanges maintain an official list of securities that could be purchased and sold on this floor. Securities which do not figure in the official list that unlisted securities cannot be traded in the stock exchanges.

(iv) Transactions effected only through Members:
All the transactions insecurities at the stock exchange are affected only through its authorized brokers and members. Investors have to buy and sell the securities at the stock exchange through the authorized brokers only.

(v) Specific location:
Stock exchange is a particular market place where authorized brokers come together daily (on working days) on the floor of market called trading circles and conduct trading activities. All the working of stock exchanges is conducted and controlled through computers and electronic systems.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 18.
Explain the Benefits of Stock Exchange.
Answer:
Benefits of the community:

  1. Economic development: It accelerates the economic development by ensuring steady flow savings into productive purpose.
  2. Fund raising platform: It enables the well managed, profit making companies to raise limitless funds by fresh issue of shares from time to time.
  3. Capital formation: It encourages capital formation.

Benefits to the company:

  1. Enhances goodwill or reputation: Companies whose shares are quoted on a stock exchanges enjoy greater goodwill and credit standing.
  2. Wide market: There is a wide and ready market for such securities.
  3. Raise huge funds: Stock exchange can raise huge funds easily by issue of shares and debentures.

Benefits of investors:

  1. Liquidity: Stock exchange helps an investors to convert his shares into cash quickly and thus increases the liquidity of his investments.
  2. Investors protection: The stock exchange safeguards investors interest and ensures fair dealing by strictly enforcing its rules and regulations.
  3. Mechanism to trade security: Stock exchange provides a mechanism by which purchase and sale of listed securities take place in a matter of few minutes.

Question 19.
Distinguish between Stock Exchange and Commodity Exchange.
Answer:

TN State Board 12th Commerce Important Questions Chapter 7 Stock Exchange 1

TN State Board 12th Commerce Important Questions Chapter 7 Stock Exchange 2

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 20.
Explain Lombard street and Wall street.
Answer:
Lombard street:
Lombard street, London is a street notable for its connections with the city of London’s merchant, banking and insurance industries, stretching back to medieval times.

From bank junction where nine streets’ coverage by the Bank of England, Lombard street runs southeast for a distance before bearing into a more easterly direction. It terminates at a junction with grace church street and Fenchurch street.

It is overall length is 260 meters. It has often been compared with wall street in New York city.

Wail street:
Wall street is a street in lower Manhatten that is the original home of the New York Stock Exchange and historic headquarters of the largest U.S. brokerages and investment bank.

The term wall street is also used as a collective name for the financial and investment community, which includes stock exchanges and large banks, brokerages, securities and underwriting firms and big business.

Today, brokerages are geographically diverse, allowing investors free access to the same information available to wall street’s tycoons.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Choose the correct answer:

Question 1.
________ is the oldest stock exchange in the world.
(a) London Stock Exchange
(b) Bombay Stock Exchange
(c) National Stock Exchange
(d) Amsterdam Stock Exchange
Answer:
(a) London Stock Exchange

Question 2.
There are ______ stock exchange in the country.
(a) 21
(b) 24
(c) 20
(d) 25
Answer:
(a) 21

Question 3.
Stock exchanges deal in:
(a) Goods
(b) Services
(c) Financial Securities
(d) Country’s Currency
Answer:
(c) Financial Securities

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 4.
Stock exchange allow trading in:
(a) All types of Shares of any Company
(b) Bonds issued by the Govt
(c) Listed Securities
(d) Unlisted Securities
Answer:
(c) Listed Securities

Question 5.
Jobbers transact in a stock exchange:
(a) For their Clients
(b) For their Own Transactions
(c) For other Brokers
(d) For other Members
Answer:
(b) For their Own Transactions

Question 6.
A pessimistic speculator is:
(a) Stag
(b) Bear
(c) Bull
(d) Lame Duck
Answer:
(b) Bear

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 7.
An optimistic speculator is:
(a) Bull
(b) Bear
(c) Stag
(d) Lame duck
Answer:
(a) Bull

Question 8.
A bull operator believes in:
(a) Increase in Prices
(b) Decrease in Prices
(c) Stability in Prices
(d) No change in Prices
Answer:
(a) Increase in Prices

Question 9.
_________ means the price at which securities are bought and sold are recorded and made public.
(a) Market Quotations
(b) Trade Quotations
(c) Business Quotations
(d) Buyers Quotations
Answer:
(a) Market Quotations

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 7 Stock Exchange

Question 10.
The rules and regulations of Stock exchange is framed by ________ guide lines.
(a) RBI
(b) Central Government
(c) SEBI
(d) BSE
Answer:
(c) SEBI

TN Board 12th Commerce Important Questions

TN Board 12th Commerce Important Questions Chapter 6 Money Market

TN State Board Kalvi 12th Commerce Notes Chapter 6 Money Market

Question 1.
Define the term “Money Market”.
Answer:
Money market for purely short term funds. It deals with the financial assets and securities whose maturity period does not exceed one year.
Eg: Treasury Bills, Commercial Bills.

Question 2.
What is commercial bill market?
Answer:
A bill of exchange issued by a commercial organization to raise money for short term needs. These bills are of 30 days, 60 days and 90 days maturity. The commercial bill is an instrument drawn by a seller <jf goods on a buyer of goods.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 3.
What is a CD market?
Answer:
Certificate of Deposits are short term deposit instruments issued by banks and financial institutions to raise large sum of money. Certificate of deposits are issued in the form of usance promissory notes. They are easily convertible in nature and are in marketable form having particular face value and maturity.

Question 4.
What is Government Securities Market?
Answer:
A market where by the Government or gilt – edged securities can be bought and sold is called “Government securities market”. Government securities are issued for the purpose of refunding the maturing securities for advance refunding securities which have not yet matured and for cash financing.

Question 5.
What are the Instruments of Money Market?
Answer:

  1. Treasury bills in the treasury market
  2. Money at call and short notice in the call loan market
  3. Commercial bills and promissory notes in the bill market
  4. Commercial papers
  5. Certificate of deposits
  6. Interbank participation certificates
  7. Repo instruments.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 6.
Explain the two oldest money markets.
Answer:
The two oldest money markets are
(i) London Money Market
(ii) New York Money Market.

(i) London Money Market is the oldest and most developed leading money market in the world.
(ii) New York Money Market is ranked as the second well developed money market in the world next only to the London money market.

Question 7.
What do you meant by Auctioning?
Answer:
A method of trading whereby merchants bid against one another and where the securities are sold to the highest bidder is known as “auctioning”.

Question 8.
What do you meant by Switching?
Answer:
The purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operation is described as “switching”.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 9.
What are the features of Treasury Bills?
Answer:
A treasury bill is nothing but a promissory note issued for a specific period stated there in. The period does not exceed a period of one year. Treasury bills incorporate the following features:

  1. Issues
  2. Finance Bills
  3. Liquidity
  4. Vital source
  5. Monetary management

Question 10.
Who are the participants of Money Market?
Answer:
There are many participants operating in the money market.

  1. Government of different countries
  2. Central banks of different countries
  3. Private and public banks
  4. Mutual funds institutions
  5. Insurance companies
  6. Non-Banking Financial Institutions
  7. RBI and SBI
  8. Commercial Banks
  9. State Governments
  10. Public

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 11.
Explain the types of Treasury Bills.
Answer:
Treasury Bills are issued to the public and other financial institutions for meeting the short term financial institutions for meeting the short term financial requirements of the Central Government. These bills are freely marketable and they can be bought and sold at anytime and these bills are tradable in secondary market as well.
On the basis of periodicity Treasury bills may be classified into three. They are:
(i) 91 days Treasury Bills
(ii) 182 days Treasury Bills
(iii) 364 days Treasury Bills

Ninety one days Treasury Bills are issued at a fixed discount rate of 4 percent as well as through auctions. The RBI holds 91 days and 182 days Treasury Bills and they are issued on tap basis throughout the week, 364 days Treasury Bills do not carry any fixed rate. The discount rate on these bills are quoted in auction by the participants and accepted by the authorities. Such a rate is called cut off rate.

Question 12.
What are the features of Certificate of Deposit?
Answer:
Certificate of deposits are short term deposit instruments issued by banks and financial institutions.
Features of Certificate of Deposit:

  1. Document of title to time deposit.
  2. It is unsecured negotiable instruments.
  3. It is freely transferable by endorsement and delivery.
  4. It is issued at discount to face value.
  5. It is repayable on a fixed date without grace days.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 13.
What are the types of Commercial Bill?
Answer:
A bill of exchange issued by a commercial organization to raise money for short term needs. These bills are 30 days, 60 days and 90 days maturity.
Types of commercial bills:
(i) Demand and usance bills:
A demand bill is one wherein no specific time of payment is mentioned. So demand bills are payable immediately when they are presented to the drawee.

(ii) Clean Bills and Documentary Bills:
Bills that are accompanied by documents of title of goods are called documentary bills. Clean bills are drawn without accompanying any document.

(iii) Inland bills and Foreign bills:
(a) Bills that are drawn and payable in India on a person who is a resident in India are called Inland bills.
(b) Bills that are drawn outside India and are payable either in India or outside India are called Foreign bills.

(iv) Indigeneous Bills:
The drawing and acceptance of indigeneous bills are governed by native custom or usage of trade.

(v) Accommodation and supply Bills:
Accommodation bills are those which do not arise out of genuine trade of transactions.

Question 14.
Define Money Market and Capital Market. Explain the difference between the Money Market and Capital Market.
Answer:
Money Market:
Money market is a market for purely short term funds. It deals with the financial assets and securities whose maturity period does not exceed one year.

Capital market:
Capital market can be defined as ‘a market for borrowing and lending of long term capital funds required by business enterprises” capital market offers on ideal source of external finance.

TN State Board 12th Commerce Important Questions Chapter 6 Money Market 1

TN State Board 12th Commerce Important Questions Chapter 6 Money Market 2

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 15.
Explain the characteristics of Money Market.
Answer:
(i) Short term funds:
It is a market purely for short-term funds or financial assets called near money.

(ii) Maturity period:
It deals with financial assets having a maturity period up to one year only.

(iii) Conversion of cash:
It deals with only those assets which can be converted into cash readily without loss and with minimum transaction cost.

(iv) No formal place:
Transactions take place through phone (oral communication). There is no formal place like stock exchange as in the case of a capital market.

(v) Sub-market:
It is not a single homogeneous market. It comprises of several sub-markets such specializing in a particular type of financing.
Eg: call money market, bill market.

(vi) Existence of secondary market:
There should be an active secondary market for these instruments.

(vii) Highly organized banking system:
The commercial banks are the nerve centre of the whole money market. They are the principal suppliers of short term funds.

(viii) Demand and supply of funds:
There should be a large demand and supply of short-term funds. It pre supposes the existence of a large domestic and foreign trade.

(ix) Wholesale market:
It is a wholesale market and the volume of funds or financial assets traded in the market is very large.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 16.
Explain the Instruments of Money Market.
Answer:
There are many kinds of instruments available in money market. In India till
1986 only a few instruments were available. They were as follows:-
(i) Treasure bills in the Treasury market
(ii) Money at call and short notice in the call loan market.
(iii) Commercial bills and promissory notes in the Bill market.

Now in addition to the above the following new instruments come into existence.
(i) Commercial papers
(ii) Certificate of deposits
(iii) Inter bank participation certificates
(iv) Repo instruments

Question 17.
Explain the features and types of Commercial Bills.
Answer:
Features of Commercial bills:

  1. Drawer
  2. Acceptor
  3. Payee
  4. Discounter
  5. Endorser
  6. Assessment
  7. Maturiy
  8. Credit rating

Types of commercial bills:

(i) Demand and usance bills:
A demand bill is one wherein no specific time of payment is mentioned. So, demand bills are payable immediately when they are presented to the drawee.

(ii) Clean bills and documentary bills:
Bills that are accompanied by documents of title to goods are called documentary bills. Clean bills are drawn without accompanying any documents.
Eg: Railway receipt and lorry receipt

(iii) Inland bills and foreign bills:
Bills that are drawn and payable in India on a person who is resident in India are called inland bills. Bills that are drawn outside India and payable either in India or outside India are called foreign bills.

(iv) Indigeneous bills:
The drawing and acceptance of indigeneous bills are governed by native custom or usage of trade.

(v) Accommodation and supply bills:
Accommodation bills are those which do not arise out of genuine trade of transactions.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 18.
What are the features of Government Securities?
Answer:
A market where by the Government or gilt -edged securities can be bought and sold is called Government securities market.

Features of Government securities:
(i) Agencies:
Government securities are issued by agencies such as central Government, state Government and local Government authorities.
Eg: Municipalities, autonomous institutions such as metropolitan authorities, port trust etc.

(ii) RBI special role:
RBI takes a special and an active role in the purchase and sale of these securities as part of its monetary management exercise.

(iii) Liquidity profile:
According to liquidity profile of securities issued by central Government is high.

(iv) Tax rebate:
They offer wide-range of tax incentives to investors.

(v) Forms:
The securities of central and state Government take such forms as inscribed stock or stock certificate promissory note and bearer bond.

(vi) Trading:
The secondary market for Government securities is narrow, small and less active, banks and corporate holders who purchase and sell Government securities on the stock exchanges participating in trading.

(vii) Issue mechanism:
A notification for the issue of the securities is made a few days before the public subscription is open.

(viii) Switching:
The purchase of one security against the sale of another security carried out by the RBI in the secondary market as part of its open market operations is described as switching.

(ix) Auctioning:
A method of trading where by merchants bid against one another and where the securities are sold to the highest bidder is known as “auctioning”.

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Choose the correct answer:

Question 1.
The money invested in the call money market provides high liquidity with:
(a) Low Profitability
(b) High Profitability
(c) Limited Profitability
(d) Medium Profitability
Answer:
(a) Low Profitability

Question 2.
A major player in the money market is the:
(a) Commercial Bank
(b) Reserve Bank of India
(c), State Bank of India
(d) Central Bank
Answer:
(a) Commercial Bank

Question 3.
Money Market provides:
(a) Medium-term Funds
(b) Short-term Funds
(c) Long-term Funds
(d) Shares
Answer:
(b) Short-term Funds

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 4.
Money Market Institutions are:
(a) Investment Houses
(b) Mortgage Banks
(c) Reserve Bank of India
(d) Commercial Banks and Discount Houses.
Answer:
(d) Commercial Banks and Discount Houses.

Question 5.
Risk in the Money Market is:
(a) High
(b) Market Risk
(c) Low Credit and Market Risk
(d) Medium Risk
Answer:
(c) Low Credit and Market Risk

Question 6.
Debt Instruments are issued by Corporate Houses are raising short-term financial resources from the money market are called:
(a) Treasury Bills
(b) Commercial Paper
(c) Certificate of Deposit
(d) Government Securities
Answer:
(b) Commercial Paper

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 7.
The market for buying and selling of Commercial Bills of Exchange is known as a:
(a) Commercial Paper Market
(b) Treasury Bill Market
(c) Commercial Bill Market
(d) Capital Market
Answer:
(c) Commercial Bill Market

Question 8.
A marketable document of title to a time deposit for q specified period may be referred to as a:
(a) Treasury Bill
(b) Certificate of Deposit
(c) Commercial Bill
(d) Government Securities
Answer:
(b) Certificate of Deposit

Question 9.
Treasury Bills commands:
(a) High Liquidity
(b) Low Liquidity
(c) Medium Liquidity
(d) Limited Liquidity
Answer:
(a) High Liquidity

Samacheer Kalvi TN State Board 12th Commerce Notes Chapter 6 Money Market

Question 10.
Government Securities are issued by agencies such as:
(a) Central Government
(b) State Governments
(c) Semi-Government Authorities.
(d) All of the above.
Answer:
(d) All of the above

TN Board 12th Commerce Important Questions