Category: Important Questions

Students get through the TN Board 12th Commerce Important Questions Chapter 14 Marketing and Marketing Mix which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Define Marketing.
‘‘Marketing includes those business activities which are involved in the flow of goods and services from production to consumption ” – Converse.

Question 2.
What is the “Barter system”?
The goods are exchanged against goods, without any other medium of exchange, like money.

Question 3.
Why there is a need for the storage function of marketing?

1. There is a time gap between the production and consumption of goods.
2. To make the goods, available to the consumers and when they are required.

Question 4.
Mention the types of warehouses.

1. Private warehouses
2. Public warehouses
3. Bonded warehouses

Question 5.
Explain standardization.

1. Standardization means the establishment of certain standards based on intrinsic qualities of a commodity.
2. The quality may be determined on the basis of various factors like size, colors, taste, appearance etc.

Question 6.
List out the facilitating functions of marketing.

1. Financing
2. Risk
3. Market information
4. Standardization
5. Grading
6. Branding
7. Packing and
8. Pricing

Question 7.
What is the classification of functions of Marketing?

1. Functions of Exchange
2. Functions of physical supply (Hi) Facilitating Functions

Question 8.
Name the Elements of the Marketing mix.

1. Product
2. Price
3. Place (Physical Distribution)
4. Promotion

Short answer questions

Question 1.
Discuss “Risk Bearing” functions of marketing.
Answer:
The possibility of losing something of value when taking risk resulting from a given action or inaction foreseen or unforeseen, planned, or unplanned risk is predominately negative terms.
Risk Bearing:

1. Time Risk
2. Place Risk
3. Competition Risk
4. Risk of change in demand
5. Risk arising from natural calamities
6. Human risks
7. Political risks

Question 2.
Explain grading and branding.
Answer:
Grading: Grading means classifications of standardized products into certain well-defined classes.
Branding: Branding means giving a name or symbol to a product in order to differentiate it from competitive products.

Question 3.
How to determining price in the market?
Answer:

1. Pricing is the most important decision taken by a businessman.
2. It is the decision upon which the success or failure of an enterprise depends to a large extent.
3. The price must be determined only after taking all the relevant factors into consideration.

Long answer questions

Question 1.
Differentiate storage from warehousing.
Answer:
Storage:

1. Holding and preservation of goods from the time they are produced to the time they are consumed.
2. The time gap between the production and consumption of goods.
3. To make the goods available to the consumers and when they are required.

Warehousing:

1. It creates time utility by storing the goods throughout the year.
2. To releasing the goods when they are needed.
3. A warehouse is a building for storing goods.
4. It is the act of storing goods that will be sold or distributed later.

Question 2.
Explain the Risk Management.
Answer:
The process of identifying assessing and controlling threats to an organization Risk Management: Risk Management refers to the practice of identifying potential risk in advance and analyzing and taking precautionary steps to reduce and curb the risk. The following are the steps for risk management:

1. Manage risk on a daily basis
2. A risk is an uncertain event, it can have a positive or negative concept
3. Identify the risk
4. Analyze the risk
5. Evaluate the risk
6. Treat the risk
7. Monitor and Review the risk

Risk is a deviation from an expected outcome. That deviation can be positive or negative and it relates to the idea of no pain or no gain.

Multiple-choice questions

1. ………. assumes a managerial role to co-ordinate all interactions of business activities.
(a) Barter system
(b) Marketing
(c) Exchange
(d) None
Answer:
(b) Marketing

2. ……….. is a connecting link between the consumer and producer.
(a) Exchange
(b) Goods
(c) Marketing
(d) Consumption
Answer:
(c) Marketing

3. Mention the basic functions of all businesses.
(a) Marketing
(b) Innovation
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

4. Which process increases employment opportunities?
(a) Marketing
(b) Consumption
(c) Production
(d) Distribution
Answer:
(a) Marketing

5. Find out the subsidiary functions of Management.
(a) Innovation
(b) Decision making
(c) Communication
(d) All the above
Answer:
(d) All the above

6. Holding and preservation of goods from the time they are produced to the time they are consumed is known as:
(a) Warehousing
(b) Pricing
(c) Storage
(d) Packing
Answer:
(c) Storage

7 create time utility by storing the goods throughout the year.
(a) Storage
(b) Warehousing
(c) Assembling
(d) None
Answer:
(b) Warehousing

8. Classification of standardized products into certain well-defined classes is called:
(a) Grading
(b) Branding
(c) Placing
(d) Pricing
Answer:
(a) Grading

9. A product in order to differentiate it from competitive products:
(a) Placing
(b) Branding
(c) Pricing
(d) All the above
Answer:
(b) Branding

10. Wrapping and crafting of goods before distribution:
(a) Pricing
(b) Packing
(c) Both (a) and (b)
(d) None
Answer:
(b) Packing

11. ………. is the value of a product expressed in money terms.
(a) Price
(b) Costs
(c) Product
(d) Marketing
Answer:
(a) Price

12. ………. is the main element of marketing.
(a) Cost
(b) Product
(c) Factors
(d) Promotion
Answer:
(b) Product

13. ……….. is concerned with putting the goods into the hands of the buyers for a price.
(a) Selling
(b) Marketing
(c) Pricing
(d) Business
Answer:
(a) Selling

14. Which is the oldest profession in the world?
(a) Business
(b) Marketing
(c) Exchange
(d) Distribution
Answer:
(b) Marketing

15. Goods are exchanged against goods without exchange like money:
(a) Money economy
(b) Exchange system
(c) Barter system
(d) None
Answer:
(c) Barter system

16. It creates place utility:
(a) Storage
(b) Transportation
(c) Warehousing
(d) Pricing
Answer:
(b) Transportation

17. To transfer of goods and services for money’s worth is known as:
(a) Exchange
(b) Distribution
(c) Production
(d) Consumption
Answer:
(a) Exchange

18. How many types of warehouses are used for the storage of goods?
(a) 2
(b) 4
(c) 3
(d) 5
Answer:
(c) 3

19. Which the cause for the success or failure of an enterprise?
(a) Packing
(b) Pricing
(c) Grading
(d) Risk
Answer:
(b) Pricing

20. Without a ………… there can be no marketing.
(a) Product
(b) Price
(c) Cost
(d) None
Answer:
(a) Product

Students get through the TN Board 12th Commerce Important Questions Chapter 13 Concept of Market and Marketer which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Define the term “Market”.
Answer:
According to Pyle “Market includes both place and region in which buyers and sellers are in free competition with one another ”.

Question 2.
What is the need for the market?
Answer:

1. To exchange (barter) goods and services.
2. To adjust demand and supply by the price mechanism.
3. To improve the quality of life of society.
4. To introduce new models of life.

Question 3.
How to classify the market?
Answer:
On the basis of different approaches market have been classified on the basis of:

1. Geographical area
2. Nature of goods
3. Economic View
4. Transaction
5. Time
6. Volume of business
7. Importance

Question 4.
Explain – world market.
Answer:
Word or International market is one where the buyers and sellers of goods are from different countries that is the involvement of buyers and sellers beyond the boundaries of a nation.

Question 5.
Define Bullion market.
Answer:
This type of market deals with the purchase or sale of gold and silver bullion markets of Mumbai, Kolkata, Kanpur, etc., which are examples of such markets.

Question 6.
What is the classification of the commodity market?
Answer:
A commodity market is a place where produce goods or consumer goods are bought and sold. Commodity markets are subdivided into:

1. Produce Exchange Market
2. Manufactured goods Market
3. Bullion Market.

Question 7.
What is meant by the perfect market?
Answer:
A market is said to be a perfect market if it satisfies the following conditions:

1. a Large number of buyers and sellers are there.
2. Uniform price throughout the market.
3. Buyers and sellers have a perfect knowledge of the market.
4. The goods are identical or homogeneous.

Question 8.
Who is called implementer?
Answer:
Marketer plays the role of implementer when he/she actually converts marketing opportunities into marketable products with the help of several functional teams put in place in the organization.

Question 9.
What is called Terminal Market?
Answer:

1. It is a central site that serves as an assembly and trading place for commodities in a metropolitan area.
2. For agricultural commodities, are usually at or near major transportation hubs.

Question 10.
Mention the role of the Marketer.
Answer:
The marketer plays four roles as follows:

1. Instigator
2. Innovator
3. Integrator
4. Implementer

Short answer questions

Question 1.
Explain the information is observed from the definition of the market.
Answer:

1. The market may mean a place, where buying and selling take place.
2. Buyers and sellers come together for transactions.
3. The act of buying and selling goods (to satisfy human wants).
4. An area of operation of commercial demand for commodities.
5. An organization through which the exchange of goods takes place.

Question 2.
Explain the difference between the national market and the international market.
Answer:
National market:

1. Commodities have demand throughout the country.
2. The goods from one comer can reach another with communication and transportation facilities.
3. The company has the same policies and strategies in National Marketing their products.

International Market:

1. The international market is one where the buyers and sellers of goods are from different countries.
2. Involvement of buyers and sellers beyond the boundaries of a nation.
3. International marketing requires different strategies and policies in the promotion of their product.

Question 3.
Discuss warehousing.
Answer:

1. A warehouse is a building for storing goods.
2. Warehouse are used by manufacturers, importers, exporters, wholesalers, businesses, customs, etc.
3. Usually cover large plain buildings in industrial parks on the outskirts of cities, towns, or villages.
4. It is the act of storing goods that will be sold and distributed later.
5. The warehouse provides nothing more than storage of goods.

Question 4.
Write a short note on the Foreign Exchange market.
Answer:

1. It is an international market.
2. This type of market helps exporters and importers in converting their currencies into foreign currencies and vice versa.
3. Foreign exchange markets are made up of investment management firms, banks, commercial companies and investors.
4. The major participants in the foreign exchange market are commercial banks forex brokers and monetary authorities.

Long answer questions

Question 1.
How the market can be classifies on the basis of geographical area?
Answer:
On the basis of geographical area:

• Family market: When the exchange of goods or services is confined within a family or close members of the family.
• Local market: Participation of both the buyers and sellers belonging to a local area or areas, maybe a town or village is called a local market.
• National market: Commodities have demand throughout the country. Today the goods from one comer can reach another comer with communication and transportation facilities.
• International market or world market: A world or International market is one where the buyers and sellers of goods are from different countries involvement of buyers and sellers beyond the boundaries of a nation.

Question 2.
Explain the role of transportation in marketing.
Answer:

1. It enables trade between people which is essential for the development of civilizations.
2. Transport plays an important part is in economic growth and globalization.
3. It helps the assembling of raw materials and distribution of finished goods.
4. Mobility of labor and capital increases with the development of transport.
5. It helps to an optimum level and efficient use of its national resources.
6. To provide more employment opportunities and increase national income.
7. The performance of marketing functions like buying, assembling, selling, storage and warehouse etc.
8. It increases internal and foreign trade.

Multiple-choice questions

1. It is a medium or place to interact and exchange goods and services:
(a) Market
(b) Area
(c) Product
(d) Price
Answer:
(a) Market

2. Mention the area of local market:
(a) Town
(b) City
(c) Metropolitan
(d) None
Answer:
(a) Town

3. Give them examples of the local market.
(a) Fruits
(b) Vegetables
(c) Fish
(d) All the above
Answer:
(d) All the above

4. When an exchange of goods and services are confined with family members can be called as:
(a) Local market
(b) Family market
(c) National market
(d) Commodity market
Answer:
(b) Family market

5. Market is one where the buyers and sellers of goods are from different countries is called as:
(a) World market
(b) National market
(c) Commodity market
(d) Capital market
Answer:
(a) World market

6. In which market goods are identical or homogeneous?
(a) Imperfect
(b) Perfect
(c) Both (a) and (b)
(d) None
Answer:
(b) Perfect

7. A market that is not regulated by statutory measures is called:
(a) Regulated market
(b) Unregulated market
(c) Future market
(d) Spot market
Answer:
(b) Unregulated market

8. In which type of market semi-finished goods are marketed?
(a) Secondary market
(b) Primary market
(c) Wholesale market
(d) Retail market
Answer:
(a) Secondary market

9. The event marketing aims at promoting and marketing:
(a) Shows
(b) Exhibitions
(c) Fairs
(d) All the above
Answer:
(d) All the above

10. The marketing of goods and services through celebrities is called as:
(a) Person
(b) Event
(c) Place
(d) None
Answer:
(a) Person

11. Endorsement for the brand of a company can be carried down by:
(a) Cinema stars
(b) Sports star
(c) Musicians
(d) All the above
Answer:
(d) All the above

12. Today in what way information collected by?
(a) Libraries
(b) Book publishers
(c) Internet
(d) All the above
Answer:
(d) All the above

13. An may change the world.
(a) Idea
(b) Organization
(c) Properties
(d) Places
Answer:
(a) Idea

14. The most valuable product that can be marketed today:
(a) Ideas
(b) Information
(c) Organization
(d) None
Answer:
(b) Information

15. The purchase or sale of gold and silver are called as:
(a) Bullion market
(b) Money market
(c) Capital market
(d) Stock market
Answer:
(a) Bullion market

16. Market where sales and purchase of shares and bonds of companies is known as:
(a) Stock market
(b) Money market
(c) Foreign market
(d) None
Answer:
(a) Stock market

17. Find out the international market.
(a) Stock market
(b) Money Market
(c) Foreign exchange
(d) Capital market
Answer:
(c) Foreign exchange

18. It provides short-term finance to industries, banks, and Government agencies:
(a) Capital market
(b) Stock market
(c) Money market
(d) None
Answer:
(c) Money market

19. How to determine the price of goods in an unregulated market?
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

20. In which type of goods long period market deals with?
(a) Durable
(b) Non-durable
(c) Perishable
(d) All the above
Answer:
(a) Durable

Students get through the TN Board 12th Commerce Important Questions Chapter 12 Employee Training Method which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Define-“Training”.
Answer:
According to Edwin.B.Flippo, “Training is the act of increasing the knowledge and skills of an employee for doing particular jobs.

Question 2.
Why training is needed?
Answer:

1. Imparting new skills helps in the performance enhancement of the employee.
2. To learn more knowledge regarding the latest technologies and techniques.
3. Efficient training improves higher productivity and more profits.
4. It enables employees to increase the quality of work carried out by them.

Question 3.
Mention training method which are used by the organization?
Answer:
There are two methods of employee training that are used by the organization

1. On the job training
2. Off the job training

Question 4.
Who are trainers?
Answer:

1. A trainer is a person, who teaches skills to the employee and prepares them for job activity.
2. The trainer may be a supervisor, co-worker, HR staff, and university.

Question 5.
What is a coaching method?
Answer:

1. The superior teaches or guides the new employee about the knowledge and skills relevant to a given job.
2. Superior plays a role of coach or guide and an instructor.

Question 6.
Explain the field trip method.
Answer:
A field trip or fieldwork or training in the field is a journey undertaken by a group of employees/trainees to a place away from their actual work site. They are free to clarity their doubts from the organization experts.

Question 7.
List out the benefits to the organization.
Answer:

1. To improve the skill of employees.
2. It enhances productivity and profitability.
3. It reduces the wastage of materials.
4. It exposes employees to the latest trends.

Question 8.
How to improve higher productivity and profits?
Answer:

1. Efficient training improves higher productivity and profits.
2. Trained employees can apply more skills and techniques at work.
3. It helps them to do the work at a faster rate with high perfection.

Question 9.
What is the main aim of job rotation?
Answer:

1. Broadening the knowledge of executives.
2. The main aim of job rotation is to expose the employee to various inter-related jobs.

Question 10.
How to reduce the cost in production?
Answer:

1. Trained employees can utilize the resources in an efficient manner
2. There is no possibility of wastages of resources.
3. All facilities are used at an optimum level.
4. This will lead to cost reduction.

Short answer questions

Question 1.
Give a short note on the case study method.
Answer:

1. Trainees have described situations that stimulate their interest to find a solution.
2. They have to use their theoretical knowledge and practical knowledge to find a solution to the problem presented.
3. The purpose of the case study method is to make trainee apply their knowledge.

Question 2.
What system is followed in the programmed instruction method?
Answer:

1. The subject matter to be learned is presented in a series of units.
2. It consists of three parts – presenting facts, new knowledge, and questions and answers.
3. This system provides feedback on the accuracy of the response given by the trainee.
4. Programmed instruction is made available in printed books, tables, interactive job videos, and other formats.

Question 3.
What do you mean by internship training method?
Answer:

1. A superior gives training to a subordinate or understudy like an assistant to a manager or director.
2. The subordinates learn through experience and observation by participating in handling day-to-day problems.
3. The purpose of internship training is to prepare subordinates for assuming the full responsibilities and duties.

Long answer questions

Question 1.
Explain about off the job training.
Answer:

1. Training which is carried out away from your normal place of work.
2. In this method, where the workers/employees learn the job role away from the actual work floor.
3. It comprises a place specifically allotted for the training purpose which may be near the actual workplace.
4. In this method where the workers are required to learn the skill and get well equipped with the tools and techniques that are to be used on the actual work floor.

Question 2.
In which method is to gain experience and knowledge and explained it briefly?
Answer:

1. To enable the trainees to listen to the lectures and talk delivered on specific topics.
2. It provides opportunities to participate, to interact with the speaker.
3. To clarified their doubts or selected participants may be allowed to present papers with the audiovisual aids as delegates.
4. They share their rich experience at the seminar through their papers.
5. The participants can widen and deepen their knowledge by their active participation at the conference.
   Eg: Doctors’ conference, salesman conference.
6. This is one of the oldest methods but still a favorite training method.

Multiple-choice questions

1. ……….. enables the employees to guide their behavior.
(a) Skill
(b) Knowledge
(c) Training
(d) None
Answer:
(c) Training

2. Which one is helpful in the performance enhancement of the employee?
(a) Time
(b) Skill
(c) Work
(d) Change
Answer:
(b) Skill

3. Employee gets updated with the latest technology and trend through:
(a) Job
(b) Training
(c) Behaviour
(d) Productivity
Answer:
(b) Training

4. Efficient training improves higher:
(a) Productivity
(b) Profit
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

5. A person who is learning and practicing the skills of a particular job is called:
(a) Trainee
(b) Train
(c) Trainers
(d) Training
Answer:
(a) Trainee

6. ……… is the process of sharing the knowledge and experience of an employee.
(a) Mentoring
(b) Coaching
(c) Job rotation
(d) None
Answer:
(a) Mentoring

7. Which method a trainee is periodically shifted from one work to another work?
(a) Apprenticeship
(b) Job rotation
(c) Mentoring
(d) All the above
Answer:
(b) Job rotation

8. Find out the technical cadre in the apprentice method:
(a) Mechanics
(b) Electricians
(c) Welders
(d) All the above
Answer:
(d) All the above

9. Trainees have described a situation which suits their interest to find a solution is known as:
(a) Case study
(b) Group behaviour
(c) Lecture
(d) None
Answer:
(a) Case study

10. The main purpose of the case study method is to make trainee apply their:
(a) Skill
(b) Knowledge
(c) Area
(d) Technique
Answer:
(b) Knowledge

11. Which method is to share their experience at the seminar through their papers?
(a) Conference method
(b) Case study
(c) Both (a) and (b)
(d) None
Answer:
(a) Conference method

12. Which type of web-based training can pass over the information through the internet?
(a) Vestibule training
(b) E-leaming
(c) Instruction
(d) Roleplay
Answer:
(b) E-leaming

13. Vestibule training is given to:
(a) Scientists
(b) Drivers
(c) Pilots
(d) All the above
Answer:
(d) All the above

14. The employee learns the job in the actual workplace or environment is known as:
(a) On the job training
(b) Off the job training
(c) Demonstration
(d) None
Answer:
(a) On the job training

15. It helps to focus on a specific area and develop employee skills:
(a) Training
(b) Work
(c) Skill
(d) Knowledge
Answer:
(a) Training

16. Who plays the role of coach and made training arrangements?
(a) Supervisor
(b) Guide
(c) Instructor
(d) None
Answer:
(a) Supervisor

17. A person who teaches skills to the employee and prepare them for a job activity:
(a) Trainee
(b) Trainers
(c) Train
(d) All the above
Answer:
(b) Trainers

18. Trainers is otherwise called:
(a) Instructor
(b) Teacher
(c) Mentor
(d) All the above
Answer:
(d) All the above

19. Duration of the training program is apprenticeship ranges from:
(a) 1 to 5 years
(b) 3 months to 8 months
(c) Less than one year
(d) More than 5 years
Answer:
(a) 1 to 5 years

20. In which training method the trainee gets the stipend during the training period.
(a) Mentoring
(b) Coaching
(c) Apprenticeship
(d) All the above
Answer:
(c) Apprenticeship

Students get through the TN Board 12th Commerce Important Questions Chapter 11 Employee Selection Process which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Define the term “selection” process.
Answer:
According to Dale Yoder. “Selection is the process in which the candidates for employment are divided into two classes – those who are to be offered employment and those who are not.

Question 2.
List out the steps in the selection process.
Answer:
A comprehensive selection process involves the various steps

1. Application Blank
2. Scrutinizing the Applications
3. Selection Test
4. Interview
5. Physical Examination
6. Approved by Higher authority
7. Contract of employment.

Question 3.
What is meant by panel interviews?
Answer:

1. Where a group of people interviews the candidate, it is called a panel interview.
2. All panel members ask different types of questions on general areas of specialization of the candidate.
3. The panel comprises experts, representatives of minorities, nominees of higher bodies, and soon.
4. In the end, marks awarded by all the members are aggregated and the candidates have ranked accordingly.

Question 4.
Why selection tests are conducted in the selection process.
Answer:
Several tests are conducted in the selection process to ensure whether the candidate possesses the necessary qualification to fit into various positions in the organization. Eg: Ability test and personality test.

Question 5.
What is a job offer?
Answer:
“Job first man next”, should be the principles of placement. The job should be offered to the man based on his qualifications.

Question 6.
How the selection committee is scrutinizing the applications?
Answer:
The selection committee has to evolve some criteria like age, length of experience, level of education, percentage of marks, higher qualification, level of exposure, communal quotes, proficiency, etc.

Question 7.
What do you mean by mental arithmetic test?
Answer:
It tests the candidate’s basic numerical ability like addition, subtraction, multiplication, division, and fraction. It tests the speed of doing calculations.

Question 8.
In what way interviews are conducted online?
Answer:

1. Interviews are conducted by the means of the internet, via Skype, We Chat, Google duo, Viber, Whatsapp, or video chat applications.
2. This enables the interviewers to conduct interviews with the candidates living in faraway places.

Short answer questions

Question 1.
Discuss group interview.
Answer:

1. A group interview is a screening process where multiple candidates are interviewed at the same time.
2. A group interview is a good time-saving type of interview.
3. Sometimes a particular topic is given to the group and they are asked to discuss it.
4. The competency of members of the group is assessed by keenly observing the participation of members in the discussion.

Question 2.
Explain the basic information needed for the contract of employment.
Answer:
The following basic information which needed to be included in a written contract of employment varies according to the level of the job.
The level of the job

1. Job title
2. Duties and responsibilities
3. The scale of pay allowance
4. Increments
5. Working hours
6. Data when continuous employment starts
7. Work rules
8. Grievance procedures
9. Disciplinary procedures.

Question 3.
Explain about reference check.
Answer:

1. A reference check is done to know the reliability and trustworthiness of the candidate.
2. Application blank contains a column for the candidate to furnish the list of persons to be contacted for reference purposes.
3. Employer organizations used to send either standardize from to references or request them to write in detail about certain behavioural traits of candidates under selection.

Question 4.
How to motivate the person to work efficiently?
Answer:

1. If the right person is selected for the right job.
2. It tends to motivate the person to work more effectively and efficiently.
3. They feel that their skills are properly used and they tend to contribute more attention to the job.

Long answer questions

Question 1.
Explain briefly the factors influencing the employee selection process?
Answer:

1. Nature of post: The process of selection of employees varies according to the type of personnel to be recruited.
2. A number of candidates: The selection process depends on the response of candidates to the advertisement inviting applications for the post.
3. Selection policy: The selection policy and selection process are interrelated. Some organizations put in place a tougher selection process while other organizations just conduct straight interviews.
4. Cost factor/budget: The longer selection process entails higher cost.
5. Level of educational qualification and experience: The process of selection depends on the experience and educational qualifications and exposure required for the post.

Multiple-choice questions

1. Selection committee has to evolve some criteria:
(a) Education
(b) Experience
(c) Proficiency
(d) All the above
Answer:
(d) All the above

2. Aptitude test can be measured in the following ways:
(a) Judgement test
(b) Personality test
(c) Verbal reasoning test
(d) None
Answer:
(c) Verbal reasoning test

3. This test is conducted to test the presence of mind and reasoning capacity of the candidates:
(a) Projective test
(b) Attitude test
(c) Judgement test
(d) Interest test
Answer:
(c) Judgement test

4. Where a group of people interview the candidate, it is called:
(a) Stress interview
(b) In-depth interview
(c) Telephone interview
(d) Panel interview
Answer:
(d) Panel interview

5. In which type of interview save a lot of time and money both for employers organization and the candidate?
(a) Video conferencing interview
(b) Online interview
(c) Telephone interview
(d) Panel interview
Answer:
(b) Online interview

6. A kind of conference call that connects the candidate with companies located across various geographies (multipoint):
(a) Online interview
(b) Video conferencing interview
(c) Group interview
(d) None
Answer:
(b) Video conferencing interview

7. The main purpose of medical examination is to find out:
(a) Physical fitness
(b) Infectious diseases
(c) Poor health
(d) All the above
Answer:
(d) All the above

8. Reference check is done to know:
(a) Reliability
(b) Trust
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

9. Some candidates kept on the waiting list for approval by high authority:
(a) Chairman
(b) H R Director
(c) CEO
(d) All the above
Answer:
(d) All the above

10. The longer selection process entails:
(a) Low cost
(b) Higher cost
(c) Minimum cost
(d) None
Answer:
(b) Higher cost

11. The process of selection depends on the:
(a) Education
(b) Character
(c) Behaviour
(d) none
Answer:
(a) Education

12. In which persons leading to improved productivity and profitability:
(a) Unskill
(b) Talent
(c) Stress
(d) Practical knowledge
Answer:
(b) Talent

13. ……… play a vital role in human resource management
(a) Recruitment
(b) Selection
(c) Both (a) and (b)
(d) Training
Answer:
(c) Both (a) and (b)

14. ………… refers to the process of selecting suitable candidates and offering them jobs.
(a) Recruitment
(b) Selection
(c) Physical fitness
(d) Policy
Answer:
(b) Selection

15. When placing new recruit on the job an effort should be made a sense of:
(a) Loyalty
(b) Penalties
(c) Performance
(d) Responsibilities
Answer:
(a) Loyalty

Students get through the TN Board 12th Commerce Important Questions Chapter 10 Recruitment Methods which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 10 Recruitment Methods

Very short answer questions

Question 1.
Define “Recruitment”.
Answer:
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.

Question 2.
Explain – Word of mouth.
Answer:
The information relating to job seekers is collected through people of repute who pass on the message about the vacancy to their known people.

Question 3.
What is Retention?
Answer:
The retiring employees can be used to meet the requirement after superannuation as per management discretion.

Question 4.
What do you mean by Job Portals?
Answer:
Using internet job portals organizations can screen for prospective candidates and fill up their vacancies.

Question 5.
Give a short note on Deputation.
Answer:
A person who is already an employee of an organization can be deputed for a specific job for a specified period as a short-term solution.

Question 6.
Define – “Outsourcing”.
Answer:
The process of recruiting through screening of applications and finding the right person for the job for which job they are paid service charges (Outsourcing firms).

Question 7.
Mention the source of Recruitment.
Answer:
There are basically two ways by which an organization can recruit its employees namely

1. Internal sources
2. External sources
   External sources can further be classified into Direct and Indirect sources.

Question 8.
How to transfer the employee to an organization?
Answer:
Transfer of an employee from one department with surplus staff to that of another with the deficit staff.

Question 9.
List out the internal sources of Recruitment.
Answer:

1. Transfer
2. Upgrading
3. Promotion
4. Job rotation
5. Dependants
6. Previous applicants
7. Retired employees
8. Acquisitions and Mergers.

Question 10.
Mention the recent trends in Recruitment.
Answer:
The recent methods of recruiting by organizations include the following methods

1. Outsourcing
2. Poaching

Short answer questions

Question 1.
What are the reasons behind Recruitment?
Answer:
There are different reasons why vacancy arises and they are:

1. Retirement of an employee
2. Death of an employee
3. Resignation of Job by an employee
4. Disablement of an employee
5. Dismissal of an employee

Question 2.
Write a short note about Employment Exchange.
Answer:

1. These are exchanges established by Government that facilitates recruitment throughout the country.
2. It makes available information required through the database for the employer as well as the job seeker.
3. By bridging the gap between the employer as well as the job seeker.

Question 3.
Write about “e-Recruitment”.
Answer:

1. The organization that carry out recruitment online method is said to follow e-Recruitment.
2. The advancement in technology and communication has made it possible to reach out to prospective applicants globally online.
3. It has become an inevitable external source of recruitment.

Long answer questions

Question 1.
Differentiate Employment Consultancies and Professional Associations.
Answer:
Employment Consultancies:

1. These types of firms facilitate recruitment on behalf of client companies at cost.
2. They have provided data relating to executive and top-level personnel.
3. Service they charge consultation fees also known as Recruitment Process Outsourcing.

Professional Associates:

1. An organization seeking applicants of high caliber and repute with a technical knowledge approach.
2. Professional associations like Institute of Chartered Accountants, The Indian Medical Associations, All India Management Associations, The Institute of Training and Development.
3. These Associations identify the right person.

Question 2.
Write about the Recruitment Process Outsourcing with the help of Drawing.
Answer:

1. Outsourcing: There are outsourcing firms that help in the process of recruiting through screening of applications and finding the right persons for the job for which job they are paid service charges.
2. Recruitment Process Outsourcing:
   

Multiple-choice questions

1. The process of attracting potential people to apply for a job in an organization:
(a) Selection
(b) Recruitment
(c) Human Resource
(d) None
Answer:
(b) Recruitment

2. …….. act as a link between Job Provider and Job Seeker.
(a) Human Resource
(b) Organisation
(c) Placement
(d) Recruitment
Answer:
(d) Recruitment

3. ……….. helps in the process of moving employees from a lower position to a higher position.
(a) Appraisal
(b) Skill
(c) Knowledge
(d) All the above
Answer:
(a) Appraisal

4. Movement of an employee from a higher position to a lower position because of poor performance is known as:
(a) Dependants
(b) Demotion
(c) Retention
(d) Job rotation
Answer:
(b) Demotion

5. The organization visits the educational institutions to recruit suitable candidates is known as:
(a) Word of Mouth
(b) Campus
(c) Job Portals
(d) None
Answer:
(b) Campus

6. Exchanges established by Government that facilitates recruitment throughout the country:
(a) Employment Exchange
(b) Employment Consultancies
(c) Professional Association
(d) Word of Mouth
Answer:
(a) Employment Exchange

7. How an organisation can screen for suitable candidates in the Job Portal?
(a) Internet
(b) Online
(c) Message
(d) None
Answer:
(a) Internet

8. Organisation seeking applicants of high caliber and repute with technical knowledge approach is known as:
(a) Employment referral
(b) Employment Consultancies
(c) Professional Associates
(d) Employment Exchange
Answer:
(c) Professional Associates

9. “Right Person for the Job” for which job they are paid service charges:
(a) Outsourcing
(b) Word of mouth
(c) e-Recruitment
(d) None
Answer:
(a) Outsourcing

10. The organization that carry out recruitment online methods is said to follow recruitment:
(a) e-Recruitment
(b) Campus
(c) Professional Association
(d) All the above
Answer:
(a) e-Recruitment

11. Why vacancy arises? Find out the reasons?
(a) Death
(b) Retirement
(c) Resignation
(d) All the above
Answer:
(d) All the above

12. How many ways by which an organization can recruit its employee?
(a) 4
(b) 2
(c) 6
(d) 3
Answer:
(b) 2

13. Applicants with suitable qualification requirement can be known as:
(a) Advertisement
(b) Walk-in
(c) Campus
(d) None
Answer:
(b) Walk-in

14. Give examples for Rival firms:
(a) Chartered Accounts
(b) Salesman
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

15. Advancement in Technology and communication to reach out to prospective application globally through:
(a) Online
(b) Advertisement
(c) Journals
(d) Magazines
Answer:
(a) Online

Students get through the TN Board 12th Commerce Important Questions Chapter 9 Fundamentals of Human Resource Management which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Give the meaning of Human Resource Management.
Answer:
Human Resource Management is a function of management concerned with hiring, motivating and maintaining people in an organization. It focuses on people in an organization. The branch of management that deals with managing human resource is known as human resource management.

Question 2.
List out the operating functions of Human Resource Management. Operating functions:
Answer:

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

Question 3.
Define planning.
Answer:
Planning is deciding in advance what to do, how to do and who is to do it. It helps in the systematic operations of the business. It involves determining objectives, policies procedures, rules strategies, programmes and budgets.

Question 4.
How to select the right man for the right job?
Answer:

1. Human resource management ensures the right talent available for the right job.
2. To enable the employees to remain up-to-date through training and development programmes.
3. HRM plays a significant role in the process of employee skill and knowledge.

Question 5.
How to encourage the employees through HRM?
Answer:

1. The role of HRM to recognize the best performers and to provide them with bonus and incentives (appreciation for their work).
2. This motivation can be either financial or non-financial.

Question 6.
In what way organizing the employees through HRM?
Answer:

1. Division of work among employees.
2. By assigning each employee their duties, a delegation of authority as required and creation of accountability to make employees responsible.

Question 7.
What is the strategic role of HRM?
Answer:
The strategic role of human resource management is the process of acquiring training, appraising, compensating employees and attending to their labour relation, health, safety and fairness concerns.

Question 8.
Explain the control process.
Answer:
The control process includes fixing standards, measuring actual performance comparing actual with the standard laid down, measuring deviations and taking corrective actions. This is made possible through observation, supervision reports records and audit.

Short answer questions

Question 1.
Define the human resource.
Answer:

1. In an organization, the human resource is the employees who are inevitable for the survival and success of the enterprise.
2. Human resource created all other resources.
3. As per the views of Michael J. Jucius Human resource is a “whole consisting of interrelated, interdependent and interacting physiological, sociological and ethical components ”.
4. Human resources can be utilized at all levels of management.

Question 2.
State any two significance of Human Resource Management.
Answer:
To identify manpower needs:

1. Determination of manpower needs in an organization is very important as it is a form of investment.
2. The number of men required are to be identified accurately to optimize the cost

To update the skill and knowledge:

1. Managing human resource plays a significant role in the process of employee skill and knowledge.
2. It enables the employees to remain up to date through training and development programmes.

Question 3.
Give short notes on retention.
Answer:

1. Retention is the operative function of HRM.
2. This is made possible through health and safety, welfare, social security, job satisfaction and quality of work life.

Question 4.
How to maintain the employee in an organization?
Answer:

1. To be ensured that they are comfortable in the workplace.
2. By maintaining a cordial relationship with subordinates and managers so as to contribute maximum to the organization.
3. To encourage employees to work with job satisfaction, reducing labour turnover, accounting for human resource and carrying out audit and research.

Long answer questions

Question 1.
Explain briefly the role of human resource as the most important element in any organization.
Answer:

1. The success, growth and development of an organization depend on the quality of the workforce they possess. It is only through the human resource all other resources are actively utilized leading to effectively running an establishment.
2. In an organization, the human resources are the employees who are inevitable for the survival and success of the enterprise.
3. Human resource has to be appropriately placed and appreciated. Human resource created all other resources.
4. These individuals acquired the required skill sets, talents, knowledge, competencies and capabilities in the accomplishment of both individuals and organizational objectives.
5. Human resource can work as a team. It exhibits innovation and creativity. It can be utilized at all levels of management.
6. Change has to be introduced in such a \^ay that the human resource management acts as an agent to make the change effective.
7. Managing the human resource is to motivate, participate and co-ordinate the available workforce.
8. HRM focuses on the development of manpower through training and development programmes. It will increase the effective use of the resource procured.
9. Human relations are possible only through human resource.
10. Industrial relations depend on human resource. The advent of globalization, liberalization and privatization leading to advancement in information, communication and technology paved the way for exhibiting a high level of innovation and creativity in human resources.

Question 2.
Differentiate directing from controlling.
Answer:
Directing:

1. It involves the issue of orders and instruction.
2. These orders along with supervision guidance and motivation to get the best out of employees.
3. This reduces waste of time, energy and money and early attainment of organizational objectives.

Controlling:

1. It is comparing the actual with the standards.
2. To check whether activities are going on as per plan and rectify deviations.
3. The control process includes
   (a) Fixing of standards
   (b) Measuring actual performance
   (c) Comparing actual with the standard laid down
   (d) Measuring deviations and
   (e) Taking corrective actions.
   This is made possible through observation, supervision, reports, records and audit.

Multiple-choice questions

1. Employees who are inevitable for the survival and success of the enterprise:
(a) Development
(b) Production
(c) Human resource
(d) Finance
Answer:
(c) Human resource

2. The behaviour of Human Resource are:
(a) Predictable
(b) Unpredictable
(c) Ethical
(d) Values
Answer:
(b) Unpredictable

3. Human resources can be improved through:
(a) Training
(b) Development
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

4. ………. created all other resources.
(a) Natural resources
(b) Human resources
(c) Workforce
(d) Skill
Answer:
(b) Human resources

5. Managing Human resource is known as:
(a) Innovation
(b) Human resources management
(c) Factors of production
(d) All the above
Answer:
(b) Human resources management

6. How many set of functions performed by human resources management?
(a) 2
(b) 6
(c) 4
(d) 7
Answer:
(a) 2

7. The function of human resource management concerned with:
(a) Hiring
(b) Motivating
(c) Maintaining people
(d) All the above
Answer:
(d) All the above

8. ………… is possible through the best utilization of Human resource in an
organization.
(a) Goals
(b) Motivation
(c) Skill
(d) None
Answer:
(c) Skill

9. The main idea behind managing the Human resource is to:
(a) Motivate
(b) Participate
(c) Co-ordinate
(d) All the above
Answer:
(d) All the above

10. Which one is helpful in the workforce to identify their level of performance?
(a) Motivation
(b) Skill
(c) Knowledge
(d) Appraisal
Answer:
(d) Appraisal

11. How to encourage the best performer in an organization?
(a) Bonus
(b) Incentives
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

12. ………. Helps in the systematic operation of the business.
(a) Planning
(b) Integration
(c) Directing
(d) Retention
Answer:
(a) Planning

13. Controlling is made possible through:
(a) Observation
(b) Supervision
(c) Reports
(d) All the above
Answer:
(d) All the above

14. Find out the control process?
(a) Actual performance
(b) Accounting
(c) Social security
(d) Welfare
Answer:
(a) Actual performance

15. Which function reduces waste of time and money to the attainment of organizational objectives?
(a) Controlling
(b) Directing
(c) Integration
(d) Retention
Answer:
(b) Directing

16. Bring about reconciliation between personal interest and organizational interest:
(a) Integration
(b) Retention
(c) Compensation
(d) Maintenance
Answer:
(a) Integration

17. Development includes:
(a) Training
(b) Career planning
(c) Appraisal
(d) All the above
Answer:
(d) All the above

18. It ensures maintenance of a correct number of employees to carry out activities:
(a) Planning
(b) Directing
(c) Controlling
(d) None
Answer:
(a) Planning

19. Find out the following, Human Resource Management process:
(a) Training
(b) Programme
(c) Factors
(d) None
Answer:
(a) Training

20. Human resources exhibits:
(a) Innovation
(b) Creativity
(c) Both (a) and (b)
(d) Values
Answer:
(c) Both (a) and (b)

Students get through the TN Board 12th Commerce Important Questions Chapter 8 Securities Exchange Board of India (SEBI) which is useful for their exam preparation.

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

Very short answer questions

Question 1.
When was the SEBI established?
Answer:

1. Securities and Exchange Board of India (SEBI) is an apex body that maintains and regulates our capital.
2. It was established in 1988 by the Indian Government but got statutory powers in 1992.
3. It plays a great role in the Indian economy.

Question 2.
How many key functions of SEBI.
Answer:
SEBI performs three key functions

1. Quasi-legislative
2. Quasi-judicial and
3. Quasi-executive

Question 3.
What is the power to regulate the business on the stock market?
Answer:

1. Efficient services may be provided to all the parties.
2. It drafts regulations, conducts investigation and enforcement action and it passes rulings and orders.
3. Registration of brokers and sub-brokers is made mandatory.

Question 4.
How to control over Brokers by SEBI?
Answer:

1. To supervise and check the activities of the brokers and other middlemen in order to control the capital market.
2. To regulate their activities, it was necessary to establish the SEBI.

Question 5.
How to open a Demat Account?
Answer:

1. Fill up an account opening form and submit it along with copies of the required documents
2. A Passport-Sized Photograph
3. Proof of Identity
4. Proof of Address
   Also carry the original documents for verification.

Question 6.
What is meant by “PAN”?
Answer:
PAN or Permanent Account Number is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as identity proof.

Question 7.
In what way SEBI is to provide security to the Investors?
Answer:
Protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc.

1. Safeguarding the interests of investors by means of adequate education and guidance.
2. SEBI makes rules and regulations that must be followed by the financial Intermediaries.

Question 8.
How to impose Monetary Penalties on Capital Market by SEBI?
Answer:

1. To impose monetary penalties on capital market intermediaries and other participants for a range of violations.
2. It can even impose a suspension of their registration for a short period.

Short answer questions

Question 1.
What is the role played by SEBI in the Indian economy?
Answer:
SEBI is an apex body that maintains and regulates our capital market.
It was established in 1988 by the Indian Government but got statutory powers in 1992.
SEBI plays a great role in the Indian economy.

1. Monitor’s the working of mutual funds
2. Restricts illegal practices of firms
3. Plays a great role in protecting investors interest
4. Regulates the working of stock exchanges
5. Conducts audit inspection
6. Prohibits insider activity

Question 2.
Explain the guidelines issued by SEBI.
Answer:

1. SEBI issues guidelines and instructions to businesses concerning capital issues.
2. Separate guidelines are provided for initial public issues made by listed companies.
3. It conducts research and publishes information beneficial to all market players (buyers and sellers).
4. It has created regulations and guidelines that should be followed by mutual funds.

Long answer questions

Question 1.
Write briefly about Dematerialization (DEMAT).
Answer:

1. Dematerialization is the process by which physical share certificates of an investor are taken back by the company/registrar and destroyed.
2. Then an equivalent number of securities in the electronic form are credited to the investor’s account with his Depository Participant.
3. Dematerialization is done at the request of the investor. Investors will first have to open an account with a DP (Depository Participant) and then request for dematerialization of certificates through the DP.
4. Purchases made by an investor are credited to his account and sales are debited. The securities held in the dematerialized form are fungible.
5. Dematerialized shares do not have any distinctive numbers. All the holdings of a particular society will be identical and interchangeable.
6. Trading in dematerialized shares commenced on the NSE in December 1996.
7. Reliance Industries was the first company to trade its 100 shares in Demat form.
8. In the case of the BSE, dematerialization of shares commenced in the year December 1997.

Multiple-choice questions

1. In which year SEBI Act being passed by the Indian Parliament?
(a) 1990
(b) 1989
(c) 1985
(d) 1992
Answer:
(d) 1992

2. The foremost objective of the SEBI is to provide to the Investors.
(a) Security
(b) Regulate
(c) Control
(d) None
Answer:
(a) Security

3. To establish the SEBI was necessary to the activities of the brokers.
(a) Control
(b) Regulate
(c) Interest
(d) Trading
Answer:
(b) Regulate

4. Find out the function of SEBI.
(a) Protection of Investors
(b) Training
(c) Legal Powers
(d) All the above
Answer:
(d) All the above

5. SEBI has been empowered to impose monetary on capital market Intermediaries.
(a) Surcharge
(b) Penalties
(c) Incentive
(d) Bonus
Answer:
(b) Penalties

6. Dematerialization is done at the request of:
(a) The Investor
(b) Intermediaries
(c) The Producer
(d) None
Answer:
(a) The Investor

7. In which year the BSE dematerialization of shares?
(a) 1995
(b) 1993
(c) 1997
(d) 1999
Answer:
(c) 1997

8. Mention the documents require for a Demat Account:
(a) Address
(b) Proof of Identity
(c) Photo
(d) All the above
Answer:
(d) All the above

9. In which Board is an apex body that maintains and regulates our Capital Market?
(a) Stock Exchange
(b) SEBI
(c) Financial Market
(d) Security Market
Answer:
(b) SEBI

10. How many functions that SEBI performs?
(a) 5
(b) 3
(c) 6
(d) 4
Answer:
(b) 3

11. SEBI regulates the following: Way to protect the interest of investors
(a) Mergers
(b) Acquisition
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

12. Who is maintain effective supervision and avoids any unfair and anti-investor actions?
(a) Stock Market
(b) Financial Market
(c) Central Market
(d) SEBI
Answer:
(d) SEBI

13. Who is giving training to financial intermediaries?
(a) Central Government
(b) RBI
(c) State Government
(d) SEBI
Answer:
(d) SEBI

14. Who is issued a notification on delegating several powers under the Securities Contract Act to SEBI?
(a) Parliament
(b) Ministry of Finance
(c) The Government of India
(d) None
Answer:
(b) Ministry of Finance

15. Who is regulating and controlling the business on stock markets?
(a) SEBI
(b) RBI
(c) Parliament
(d) All the above
Answer:
(a) SEBI

Students get through the TN Board 12th Commerce Important Questions Chapter 7 Stock Exchange which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Write down the origin of the stock exchange.
Answer:

1. Amsterdam stock exchange is considered the oldest stock exchange in the world.
2. It was established in the year 1602 by a Dutch East India Company called Verenigde Oost – Indische campaign called “VOC”.
3. It was later rechristened as “Amsterdam bourse”.

Question 2.
Write about the first stock exchange in India.
Answer:

1. The first stock exchange in India was “The Native Shares and Stock Brokers Association”.
2. It was recognized by the Government of India on August 31, 1957, Under the Securities Contract (regulations) act 1956.
3. It became the Bombay Stock Exchange.

Question 3.
Write any five stock exchanges in the world.
Answer:

1. The New York stock exchange
2. London Stock Exchange
3. Tokyo Stock Exchange
4. Euronext
5. Bombay Stock Exchange

Question 4.
What is meant by speculation?
Answer:

1. Speculations involve trading a financial instrument involving high risk, in expectation of significant returns.
2. The motive is to take maximum advantage of fluctuations in the market.
3. Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile.

Question 5.
Who is called Jobbers?
Answer:

1. Jobbers are security merchants dealing in shares, debentures as independent operators.
2. They buy and sell securities on their own behalf and try to earn through price changes.
3. Jobbers cannot deal on behalf of the public and are barred from taking a commission.
4. In India, they are called Taravaniwalas.

Question 6.
Who are all participants in the stock exchange market?
Answer:

1. Investors
2. Speculators

Question 7.
List out the securities that are traded in stock exchanges.
Answer:

1. Shares and debentures issued by public companies.
2. Bonds and debentures issued by Government, public corporation, and municipal and port trust bodies.

Question 8.
Explain about authorized clerks.
Answer:

1. The authorized clerks are mere employees of the members, appointed by members of the stock exchange.
2. The authorized clerks transact business on behalf of their employers on the floor of the stock exchange.
3. They are paid a salary plus commission.

Question 9.
How to protect the investors in the stock exchange?
Answer:
The stock exchange safeguards, investors interest and ensure fair dealing by strictly enforcing in rules and regulations.

Question 10.
In what way the transactions take place in stock exchanges?
Answer:
The transactions are in securities at the stock exchange are effected only through its authorized brokers and members. Investors have to buy or sell securities at the stock exchange through the authorized brokers only.

Short answer questions

Question 1.
Discuss stock exchanges in India.
Answer:

1. There are 24 stock exchanges in the country.
2. With 21 of them being regional in nature.
3. Three others have been set up in the reforms era.
4. NSE, OTCEI, and ISE have a mandate to nationwide trading networks.
5. The ISE has been promoted by 15 regional stock exchanges in the country and is based in Mumbai.
6. The majority of the regional stock exchanges have adopted the Screen-Based Trading System (SBTS) to provide automated and modem facilities for trading.

Question 2.
Explain about few (top ten ) stock exchanges in the world.
Answer:

1. The New York Stock Exchange: Located in New York city $ 19.223 trillion in listed market capitalization.
2. London Stock Exchange: Located in London, England $6,187 trillion
   in listed market capitalization.
3. Bombay Stock Exchange: Located in Mumbai, India $1,682 trillion in market capitalization.
4. Euronext: Located throughout Europe (France, Portugal, Netherlands, and Belgium) $3,321 trillion in listed market capitalization.

Question 3.
Explain National Clearance and Depository System (NCDS).
Answer:

1. This system was created chiefly to help overcome the problem of settlement and clearance of transactions consequent to the enormous workload on the clearing agencies and share transfer agencies.
2. The problems mainly arose out of systematic risks like counterparty risk, credit risk, bad deliveries, long-delayed delivery, counterfeit scripts, and forged scripts.

Question 4.
Explain about National Securities Depository Limited (NSDL).
Answer:

1. The Government of India enacted the depositories act in August 1996, paving the way for the setting up depositories in India.
2. NSDL was inaugurated as the first depository in India on November 8, 1996.
3. Trading in dematerialized securities on the National Stock Exchange (NSE) commenced in December 26, 1996.
4. The Bombay stock exchange also extended the facility of trading in dematerialized securities from December 29, 1997.

Long answer questions

Question 1.
Explain nifty and sensex.
Answer:
Nifty:

1. The word Nifty originates from 2 words, “National” and “fifty”.
2. Nifty basically means the index of the 50 most actively traded stocks from across all sectors.
3. Nifty represents the top stocks of the NSE and when we talk about nifty going up, it means that all the heavyweight stock of NSE across all sectors are moving up.
4. Nifty is computed from the performance of top stocks from different sectors.
5. Nifty is calculated by using the market capitalization-weighted method according to which weights assigned according to the size of the company.
6. Larger the size, the larger the weightage.

Sensex:

1. Sensex is an index of the stocks in BSE.
2. Sensex has a list of 30 stocks.
3. BSE decides the stocks that are to be listed in Sensex.
4. The criteria for picking a stock to be listed on Sensex are the volume of the trade of that stock and the total volume of the stock in BSE.
5. BSE regularly prepares a set of 30 stocks which will be together called Sensex.
6. BTW Sensex means sensitive index now each stock is allotted a weightage according to criteria.
7. BSE each day stocks are traded and the price of stocks is determined according to demand and supply.

Multiple-choice questions

1. ………. contribute the growth and expansion of national business and national economy and its people.
(a) stock exchange
(b) financial assets
(c) commodity exchange
(d) capital formation
Answer:
(a) stock exchange

2. When was the first stock exchange in India established?
(a) 1949
(b) 1947
(c) 1957
(d) 1955
Answer:
(c) 1957

3. Stock exchange is also called:
(a) share market
(b) bond
(c) debentures
(d) none
Answer:
(a) share market

4. Which is the oldest stock exchange in India?
(a) The Madras Stock Exchange Limited.
(b) Bombay Stock Exchange
(c) Bangalore Stock Exchange
(d) The National Stock Exchange
Answer:
(b) Bombay Stock Exchange

5. Which is the most popular stock exchange in the world?
(a) The New York Stock Exchange
(b) Tokyo Stock Exchange
(c) London Stock Exchange
(d) Euronext
Answer:
(c) London Stock Exchange

6. In which year the Indian securities contracts (Regulation act) was passed by the Government of India?
(a) 1953
(b) 1949
(c) 1952
(d) 1956
Answer:
(d) 1956

7. Which is an integral part of stock exchange operations?
(a) Clearinghouse
(b) Speculations
(c) Trade
(d) None
Answer:
(b) Speculations

8. In what way the public get information for deciding on investments?
(a) Books
(b) Financial statement
(c) Annual reports
(d) All the above
Answer:
(d) All the above

9. How the transactions in securities at the stock exchange?
(a) Brokers
(b) Clerks
(c) Outsiders
(d) Trading circle
Answer:
(a) Brokers

10. The working of stock exchange is conducted and controlled through:
(a) Computers
(b) Electronic systems
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

11. Stock exchange can raise huge funds by issue of:
(a) Shares
(b) debentures
(c) bonds
(d) All the above
Answer:
(d) All the above

12. How many stocks exchange markets are in India?
(a) 21
(b) 24
(c) 20
(d) 22
Answer:
(b) 24

13. How many regional stock exchanges in the country based at Mumbai?
(a) 12
(b) 10
(c) 14
(d) 15
Answer:
(d) 15

14. Regional stock exchanges have adopted to provide modern facilities for trading in transparent manner.
(a) SBTS (Screen Based Trading System)
(b) trading network
(c) National Market Local Trading
(d) none
Answer:
(a) SBTS (Screen Based Trading System)

15. How many Top Stock Exchanges are in the world?
(a) 5
(b) 1
(c) 10
(d) 12.
Answer:
(c) 10

16. Who is a commission agent and acts as intermediaries between buyers and sellers of securities?
(a) Jobbers
(b) Brokers
(c) speculators
(d) traders
Answer:
(a) Jobbers

17. Who is an operator and expects arise in prices of securities in the future?
(a) A bull
(b) bear
(c) both (a) and (b)
(d) Lame duck.
Answer:
(a) A bull

18. A bear or Mandiwala speculator expects prices too in the future and sell securities at present.
(a) Rise
(b) fall
(c) constant
(d) none
Answer:
(b) fall

19. Who is also called a premium hunter?
(a) A stag
(b) lame duck
(c) both (a) and (b)
(d) a bear
Answer:
(a) A stag

20. Find out the participants of the stock exchange market.
(a) Investors
(b) speculators
(c) both (a) and (b)
(d) traders
Answer:
(c) both (a) and (b)

21. In which market speculations ensure assumption and absorption of price risk?
(a) Stock exchange
(b) Security market
(c) Commodity exchange
(d) All the above
Answer:
(c) Commodity exchange

22. Which is the first depository participant registered with SEBI:
(a) SHCIL
(b) NCDS
(c) STCI
(d) NSE
Answer:
(a) SHCIL

23. When was NSE incorporated and a country, wide screen-based trading system?
(a) 1992
(b) 1990
(c) 1989
(d) 1985
Answer:
(a) 1992

24. Mention the authorized and paid-up capital of STCI finance limited.
(a) Rs. 1000 crores
(b) Rs. 1050 crores
(c) Rs. 250 crores
(d) Rs. 500 crores
Answer:
(d) Rs. 500 crores

25. What about the contribution of RBI in the paid-up capital of STCI?
(a) 50.12%
(b) 50.10%
(c) 50.18%
(d) 50.20%
Answer:
(c) 50.18%

26. In which criteria each stock is allowed in Sensex?
(a) weightage
(b) price
(c) market
(d) capital
Answer:
(a) weightage

27. The price of stocks is determined in BSE based on?
(a) demand
(b) supply
(c) both (a) and (b)
(d) none
Answer:
(c) both (a) and (b)

28. What is the time for the trading equity market?
(a) 9.15 am to 3.30 pm
(b) 8.40 am to 3.00 pm
(c) 9.00 am to 2.45 pm
(d) 8.30 am to 2.30 pm
Answer:
(a) 9.15 am to 3.30 pm

29. Which is the original home of the New York stock exchange?
(a) Dalai street
(b) wall street
(c) Lombard street
(d) none
Answer:
(b) wall street

30. An options market the right to sell a security is called a:
(a) put option
(b) call option
(c) outright
(d) reputable
Answer:
(a) put option

Students get through the TN Board 12th Commerce Important Questions Chapter 6 Money Market which is useful for their exam preparation.

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

Very short answer questions

Question 1.
Define the term money market by RBI.
Answer:
The term RBI defines the money market as “a market for short term financial assets that are close substitutes for money facilitates the exchange of money for new financial claims in the primary market as also for financial claims already issued in the secondary market”.

Question 2.
Discuss the sub-markets in the money market.
Answer:
It is not a single homogeneous market. It comprises of several sub-markets each specializing in a particular type of financing:
Eg: call money market, Acceptance market, Bill market.

Question 3.
Explain the role of commercial banks in the money market.
Answer:
(i) The commercial banks are the nerve center of the whole money market.
(ii) They are the principal supplier of short-term funds.
(iii) The commercial banks serve as a vital link between the central bank and the various segments of the money market.

Question 4.
Who are all the subscribers in the certificate of deposit market?
Answer:
Certificates of deposits are available for subscription by individuals corporations, trusts, associations, and NRIs.

Question 5.
Mention the few participants in the money market.
Answer:

1. Government of different countries
2. Private and public banks
3. RBI and SBI
4. Commercial banks
5. Mutual funds institutions.

Question 6.
What is the Treasury bill market?
Answer:
A market for the purchases and sale of Treasury bills is known as the Treasury bill market. A Treasury bill is nothing but a promissory note issued for a specific period stated therein. The period does not exceed a period of one year.

Question 7.
What is Grooming?
Answer:
Acquisition of securities nearing maturity through the stock exchanges by the RBI in order to facilitate redemption is described as Grooming.

Question 8.
Who are all the issuers of the certificate of deposits market?
Answer:
The issuers of certificate of deposits are

1. Commercial banks
2. Financial Institutions

Short answer questions

Question 1.
Mention a few characteristics of the Government securities market.
Answer:

1. Agencies: Central, State, and Local Government
2. RBI special role: Active role in purchase and sale of securities.
3. Liquidity profile: The liquidity profile of securities issued by the central Government is high.
4. Forms: Promissory note and bearer bond.
5. Issue mechanism: The Public Debt Office (PDO) of the RBI undertakes to issue Government securities.

Question 2.
What are the objectives of the money market?
Answer:

1. Providing an equilibrium mechanism for ironing out short-term surplus and deficits.
2. Providing a focal point for central bank intervention for influencing liquidity in the company.
3. Providing access in uses to users of short-term money to meet their requirements at a reasonable price.

Question 3.
Explain about commercial bills.
Answer:

1. A bill of exchange issued by commercial organizations to raise short-term needs.
2. These bills are 30 days, 60 days, and 90 days maturity.
3. The commercial bill is an instrument drawn by a seller of goods on a buyer of goods.
4. It possesses the advantage of self-liquidating in nature recourse to two parties.
5. They must know the exact date of transactions, transparency of transactions, etc.

Long answer questions

Question 1.
Explain the difference between Treasury bills and commercial bills.
Treasury Bills:

1. A market for the purchase and sale of Treasury bills is known as a “Treasury bills Market”.
2. On the basis of periodicity Treasury bills may be (i) 91 days (ii) 182 days (iii) 364 days.
3. These bills are freely marketable and they can be bought and sold at any time.
4. A Treasury bill is nothing but a promissory note issued for a specific period stated therein.

Commercial bills:

1. A bill of exchange issued by a commercial organization is known as Commercial bills.
2. These bills are of 30 days, 60 days, and 90 days maturity.
3. It possesses the advantage of self-liquidating in nature.
4. To know the exact date of transactions, transparency of transactions, etc.

Multiple-choice questions

1. It is a market for short term funds for a period of not exceeding one year.
(a) Capital market
(b) Money market
(c) Both (a) and (b)
(d) none
Answer:
(b) Money market

2. Which bank plays a dominant role in the money market?
(a) Commercial banks
(b) Central bank
(c) Discount house
(d) Non-banking financial companies
Answer:
(a) Commercial banks

3. Which bank serves as a vital link between the central bank and other segments of the money market?
(a) Discount house
(b) Acceptance house
(c) Commercial bank
(d) None
Answer:
(c) Commercial bank

4. In open market operation, the central bank absorbs cash during off-seasons.
(a) Surplus
(b) Deficit
(c) Minimum
(d) All the above
Answer:
(a) Surplus

5. In which type of treasure bills do not carry any fixed rate:
(a) 91 days treasury bills
(b) 182 days treasury bills
(c) 364 days treasury bills
(d) None
Answer:
(c) 364 days treasury bills

6. A bill of exchange issued by a commercial organization:
(a) Treasury bill
(b) Commercial bill
(c) Commercial papers
(d) All the above
Answer:
(b) Commercial bill

7. In which bank play an active role in the purchase and sale of securities:
(a) RBI
(b) Central Government
(c) State Government
(d) Local Government
Answer:
(a) RBI

8. Securities are sold to the highest bidders is known as:
(a) Switching
(b) Auctioning
(c) Grooming
(d) All the above.
Answer:
(b) Auctioning

9. Liquidity in the money market is:
(a) High liquidity
(b) Low liquidity
(c) Minimum
(d) None
Answer:
(a) High liquidity

10. In what way transactions take place in the money market:
(a) Phone
(b) Formal place
(c) Both (a) and (b)
(d) None
Answer:
(a) Phone

11. Certificate of deposits are issued in the form of usance:
(a) Promissory notes
(b) Bearer bond
(c) Bills
(d) Stock certificate
Answer:
(a) Promissory notes

12. In the Government securities market liquidity profile of securities issued by the central Government is:
(a) Low
(b) High
(c) Medium
(d) All the above
Answer:
(b) High

13. Bills that are accompanied by documents of title of goods are called:
(a) Foreign bills
(b) Inland bills
(c) Documentary bills
(d) Supply bills
Answer:
(c) Documentary bills

14. Bills that are drawn without accompanying any document:
(a) Clean bills
(b) Indigenous bills
(c) Both (a) and (b)
(d) None
Answer:
(a) Clean bills

15. Government securities are issued by agencies:
(a) Central Government
(b) State Government
(c) Local Government
(d) All the above
Answer:
(d) All the above

Students get through the TN Board 12th Commerce Important Questions Chapter 5 Capital Market which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 5 Capital Market

Very short answer questions

Question 1.
Define Capital Market.
Answer:
Capital Market can be defined as “a market for borrowing and lending of long-term capital funds required by business enterprises

Question 2.
Mention a few characteristics of the Capital Market.
Answer:

1. Securities Market
2. .Price
3. Participants
4. The market for Financial Assets

Question 3.
What are the ways by which a company raises capital in a Primary Market?
Answer:

1. Public Issue
2. Rights Issue
3. Private Placement

Question 4.
What is Commodity Market?
Answer:
The commodity market manages the trading in primary products which takes place in about 50 major commodity markets. Financial transactions increasingly outstrip physical purchases which are to be delivered.

Question 5.
Write a note on Foreign Capital.
Answer:
Capital markets make it possible to generate foreign capital. Indian firms are able to generate Capital Funds from Overseas markets by way of Bonds and other Securities Government has liberalized Foreign Direct Investment (FDI) in the country.

Question 6.
Explain Derivatives Market.
Answer:
The derivatives market facilitates the trading in financial instruments such as futures contracts and options used to help control financial risk. (Stocks, bonds, commodities, currencies, or mortgages).

Question 7.
Define Secondary Market.
Answer:
Secondary Market may be defined as the market for old securities which are previously issued in the primary market are traded here. The trading takes place between investors who follow the original issue in the Primary Market.

Question 8.
What are the services provided by the financial institutions in Capital Market?
Answer:

1. Grant of long term and medium-term loans to entrepreneurs
2. Provision of Underwriting facilities
3. Assistance in promotion of companies
4. Participation in Equity Capital.

Question 9.
Explain the term Foreign Exchange Market.
Answer:
The Foreign exchange market abets foreign exchange trading. It is the largest, most liquid market in the world with an average traded value of more than $ 5 trillion per day.

Question 10.
What is Public Issue?
Answer:
The most common method of raising capital by new companies is through the sale of securities to the public. It is called Public Issue.

Short answer questions

Question 1.
Write a note on (NSDL) National Securities Depositories Limited.
Answer:
The NSDL was set up in the year 1996 for achieving a time-bound dematerialization as well as rematerialization of shares. The establishment of NSDL is expected to alleviate the problems of post-trade transactions in the secondary market.

Question 2.
Differentiate Hard commodities from soft commodities.
Answer:

Hard commodities	Soft commodities
Hard commodities are raw materials typically mined such as gold, oil, rubber, iron and ore.	Soft commodities are typically grown agricultural primary products such as wheat, cotton, coffee and sugar.

Question 3.
Briefly explain how to raise capital by a company in a Primary Market.
Answer:
A company that may raise capital in a primary market is
Public Issue: Raising capital by new companies is through the sale of securities to the public. It is called Public Issue.
Rights Issue: When an existing company wants to raise additional capital securities are first offered to be existing shareholders on a pre-emptive basis. It is called a rights issue.
Private Placement: Private Placement is a way of selling securities privately to a small group of investors.

Question 4.
Write a note on the National Stock Exchange of India Limited (NSEI).
Answer:
NSEI was established in 1992 to function as a model stock exchange. The exchange aims at providing the advantage of nationwide electronic screen-based “Scripless” and “floorless” trading system insecurities. The Institution is expected to allow for an efficient and transparent system of securities trading.

Long answer questions

Question 1.
Discuss the Government Securities Market.
Answer:
Government Securities Market is the market for Government and Semi-Government Securities. An important feature of the securities traded in this market is that they are stable in value and are much sought after by banks.

1. Guaranteed to return and investments.
2. No speculation in securities.
3. Predominated by such institutions as LIC, GIC, PFS, and commercial banks.
4. The heavy volume of transactions necessitating negotiation of each transaction.

Question 2.
Explain the term Capital Market and how to promote the economic development of a country.
Answer:
The term capital market refers to the facilities and institutional arrangements through which long term funds, both debt and equity are raised and invested. It consists of a series of channels through which savings of the community are made available for industrial and commercial enterprises and for the public in general.
The capital market directs these savings into their most productive use leading to the growth and development of the economy. The capital market consists of development banks, commercial banks, and stock exchanges. An ideal capital market is one where finance is available at reasonable cost capital market forms an important core of a country’s financial system.

Multiple-choice questions

1. It directs savings into their most productive use leading to the development of the economy:
(a) Money Market
(b) Capital Market
(c) Stock Exchange
(d) None
Answer:
(b) Capital Market

2. Capital Market is one where finance is available at:
(a) Low Cost
(b) High Cost
(c) Reasonable Cost
(d) All the above
Answer:
(c) Reasonable Cost

3. Capital Market offers an ideal source of:
(a) Internal Finance
(b) External Finance
(c) Short term Finance
(d) None
Answer:
(b) External Finance

4. Primary Market facilitates:
(a) Capital formation
(b) Trade
(c) Price
(d) Funds
Answer:
(a) Capital formation

5. Selling securities privately to a small group of investors:
(a) Capital Formation
(b) Public issue
(c) Private placement
(d) None
Answer:
(c) Private placement

6. Sale of securities to the public is known as:
(a) Rights issue
(b) Public issue
(c) Capital formation
(d) Liquidity
Answer:
(b) Public issue

7. Securities are first offered to the existing shareholders on a pre-emptive basis. It is called:
(a) Rights issue
(b) Public Issue
(c) Both (a) and (b)
(d) None
Answer:
(a) Rights issue

8. The significance of Capital Market help to:
(a) Mobilize savings
(b) To raise permanent capital
(c) Stimulates Industrial growth
(d) All the above
Answer:
(d) All the above

9. In which type of Market covers both the stock exchange and over-the-counter market:
(a) Secondary Market
(b) Primary Market
(c) Both (a) and (b)
(d) None
Answer:
(a) Secondary Market

10. It is the central market through which resources are transferred to the Industrial Sector of the economy:
(a) Stock Exchange
(b) Financial Institution
(c) Corporate
(d) Commodity Market
Answer:
(a) Stock Exchange

11. In which place is convenient where Buyers and Sellers can easily purchase and sell securities?
(a) Capital Market
(b) Stock Exchange
(c) Money Market
(d) None
Answer:
(b) Stock Exchange

12. The Capital Market is also called:
(a) Securities Market
(b) Foreign Market
(c) Commodity Market
(d) Factoring
Answer:
(a) Securities Market

13. How to determine the price of the securities in the Capital Market:
(a) Demand and Supply
(b) Savings
(c) Investment
(d) Risk
Answer:
(a) Demand and Supply

14. Which type of funds to provide for development in Backward and Rural areas?
(a) Long term
(b) Short term
(c) Equity
(d) None
Answer:
(a) Long term

15. Capital Market makes it possible to generate the following:
(a) Foreign Capital
(b) Foreign technology
(c) Foreign Direct Investment
(d) All the above
Answer:
(d) All the above

16. Investors can sell their securities and convert them into liquid cash:
(a) Secondary Market
(b) Money Market
(c) Both (a) and (b)
(d) None
Answer:
(a) Secondary Market

17. Which type of funding brings into force the hi-technology projects?
(a) Venture Fund Institutions
(b) Mutual Funds
(c) Public Sector Bonds
(d) None
Answer:
(a) Venture Fund Institutions

18. Channeling savings of small investors into productive investment are called as:
(a) Mutual Fund
(b) Equity
(c) Bond
(d) Stocks
Answer:
(a) Mutual Fund

19. Institutions that collect the book debts for and on behalf of their clients is known as:
(a) Factoring
(b) Equity
(c) Bond
(d) Trade
Answer:
(a) Factoring

20. The Largest, most liquid market in the world is:
(a) Commodity Market
(b) Foreign Exchange Market
(c) Govt Securities Market
(d) Derivatives Market
Answer:
(b) Foreign Exchange Market