India’s exports of fruits and vegetables have grown in the last three years due to surging demand in Pakistan, Kuwait, Bangladesh, and Sri Lanka. Overall, India’s exports of fruits and vegetables increased to around $1.4 billion in FY2013-14, which is up about 36% from the previous year, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). However, exports could get a significant boost with improvement in storage and transport facilities, say experts. India annually suffers around Rs.550 billion as wastage of fruits and vegetables due to inadequate cold storage, supply chain infrastructure and lack of food processing in agri-sector, according to Dr. Santosh Kumar Sarangi, Chairman and Secretary of APEDA. “Only 2% of fresh fruit and vegetables produced in India, which is their second largest producer in the world are stored in the meagerly available temperature controlled facilities against 85% of the leading economies in the world,” Dr. Sarangi said at recent seminar held by the PHD Chamber of Commerce and Industry in New Delhi. The PHD Chamber expects India’s logistics sector, valued at 13-14% of GDP, to touch $200 billion by 2020. But the sector remains highly fragmented. India currently has 6,300 cold storage facilities with over 3,500 companies in the value chain, but states like Uttar Pradesh and West Bengal account for nearly 65% share of the total capacity.

A life insurance policy has a face value and a cash value, and they are two different numbers. The face value is the death benefit. This is the dollar amount that the policy owner's beneficiaries will receive upon the death of the insured. When a Social Security-insured worker dies, the surviving spouse who was living with the deceased is entitled to a one-time lump-sum death benefit of $255. If they were living apart, the surviving spouse can still receive the lump sum under certain conditions.

Forms of Business Organisation: A Complete Guide

• Form # 1. Sole Proprietorship:
• Form # 2. One Person Company:
• Form # 3. Joint Hindu Family Business:
• Form # 4. Partnership Firm:
• Form # 5. Limited Liability Partnership (LLP):
• Form # 6. Joint Stock Company:

E-business, also known as electronic business, is the conduct of business on the internet. Its scope is not only confined with buying and selling of products but also servicing customers and collaborating with business partners.Benefits of e-business :

1. Ease of formation and lower investment requirements : Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start. The benefits of internet technology accrue to big or small business alike. In fact, internet is responsible for the popularity of the phrase ‘networked individuals and firms are more efficient than networked individuals’.
2. Convenience: Internet offers the convenience of 24 hours, 7 days a week, 365 days a year business that allows shopping well after midnight.
3. Speed : Internet has high speed. This benefit becomes all the more attractive in the case of information regarding intensive products.
4. Movement towards a paperless society : Dependence on paper work has been considerably reduced through internet. Many companies and even the government departments and regulatory authorities are going in this direction.
5. Global reach/access : Internet has global reach throughout the world.
   Factors responsible for the growing of importance of outsourcing:
6. Confidentiality : Outsourcing depends on sharing a lot of vital information and knowledge. If the outsourcing partner does not preserve the confidentiality and say,/or example, passes it on the competitors, it can harm the interest of the party that outsources its processes.
7. Sweat shopping : As the firms that outsource seek to lower their costs, they try to get maximum benefit from the low-cost manpower of the host countries.

Harshit runs a well-known departmental Store in Delhi . He procures different kinds of products from all over the country through railway, road ways ,and Airways. He also own a go down to hold the stock . He has also taken an insurance policy worth rupees 10 crore for his business moreover he has taken a loan of rupees 200000 from ICICI Bank in order to meet short-term financial need of his business. He has placed information about his store on the hoarding billboards etc in order to popularize them. In context of the above case:

a) what are auxiliaries to trade?
b) Identify the different auxiliaries to trade that are being used by Harshit in his business by quoting lines from the paragraph.​

Answer:

Auxiliaries to trade are the activities which gives support for trading. From the above paragraph godowns which he hold for storing his goods and transportation like railways, roadways are auxiliaries to trade.

1. Justification for Existence and Growth: Although the main motive of any business is profit but the prosperity and growth of business is not possible without a continuous service to the society. Therefore, it is justified for a business to assume social responsibility.

Following mail services are provided by the post and telegraph department:
(a)UPS (Under Postal Service) : Under it the post office provides a certificate of posting on the payment of prescribed fee.
(b)Registered Post: This facility ensures the sender of the mail that in case the mail is not delivered to the adressee, it comes back to the sender.
©Parcel Post : Under this facility, the parcels of specified size and weight can be sent across the country as well as outside the country on the payment of parcel charges.
(d)Speed Post : Under it, the post & telegraph department guarantees that all the internet mail reveived up to 5 p.m. at the specified post offices will be delivered within 24 hours and if it fails to do so, the extra fee changed will be refunded.

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1. BANKING“BANKING IS WHAT A BANK DOES”
2. DEFINITION OF BANKING Banking Regulation Act 1949 defines banking as, “ACCEPTING FOR THE PURPOSE OF LENDING AND INVESTMENT, OF DEPOSITS OF MONEY FROM THE PUBLIC, REPAYABLE ON DEMAND, ORDER OR OTHERWISE AND WITHDRAWABLE BY CHEQUE,DRAFT,ORDER OR OTHERWISE”.
3. BANK IS PART OF FINANCIAL SY STEM Financial system is one whichsupplies the necessary financial inputs for theproduction of goods and services. Economicdevelopment of any country depends upon theexistence of well organized financial system.
4. Financial systemFinancial assets BFinancial intermediaries A N Financial markets K S Financial instruments

For the project click on the given link:

<a data-ved="2ahUKEwjXn9r4gOztAhUIVysKHTw8B-0QFjACegQIAxAC" href="https://www.slideshare.net/parthiban40/project-about-banking" ping="/url?sa=t&source=web&rct=j&url=https://www.slideshare.net/parthiban40/project-about-banking&ved=2ahUKEwjXn9r4gOztAhUIVysKHTw8B-0QFjACegQIAxAC" rel="noopener" target="_blank">Project about banking - SlideShare</a>

JOINT STOCK COMPANY

Meaning – Joint stock company is a voluntary association of persons for profit, having a capital  divided into transferable shares, the ownership of which is the condition of membership.

FEATURES

1. Incorporated association – The company must be incorporated or registered tender the companies Act 1956. Without registration no company can come into existence.

2. Separate Legal Existence – It is created by law and it is a distinct legal entity independent of its members. It can own property, enter into contracts, can file suits in its own name.

3. Perpetual Existence – Death, insolvency and insanity or change of members as no effect on the life of a company. It can come to an end only through the prescribed legal procedure.

4. Limited Liability – The liability of every member is limited to the nominal value of the shares bought by him or to the amt. guaranteed by him. Transferability of shares – Shares of public Co. are easily transferable. But there are certain restrictions on transfer of share of private Co. Common Seal- It is the official signature of the company and it is affixed on all important documents of company.

5. Separation of ownership and control – Management of company is in the hands of elected representatives of shareholders known individually as director and collectively as board of directors.

MERITS

1. Limited Liability – Limited liability of shareholder reduces the degree of risk borne by him.

2. Transfer of Interest – Easy transferability of shares increases the attractiveness of shares for investment.

3. Perpetual Existence – Existence of a company is not affected by the death, insanity,

Insolvency of member or change of membership. Company can be liquidated only as per the provisions of companies Act.

4. Scope for expansion – A company can collect huge amount of capital from unlimited no. of members who are ready to invest because of limited liability, easy transferability and chances of high return.

5. Professional management – A company can afford to employ highly qualified experts in different areas of business management.

LIMITATIONS

1. Legal formalities – The procedure of formation of Co. is very long, time consuming, expensive and requires lot of legal formalities to be fulfilled.

2. Lack of secrecy – It is very difficult to maintain secrecy in case of public company, as company is required to publish and file its annual accounts and reports.

3. Lack of Motivation – Divorce between ownership and control and absence of a direct link between efforts and reward lead to lack of personal interest and incentive.

4. Delay in decision making – Red papism and bureaucracy do not permit quick decisions and prompt actions. There is little scope for personal initiative.

5. Oligarchic management – Co. is said to be democratically managed but actually managed by few people i.e. board of directors. Sometimes they take decisions keeping in mind their personal interests and benefit, ignoring the interests of shareholders and Co.

TYPES OF COMPANIES
On the basis of ownership, companies can be divided into two categories –
Private & Public.

Difference between Private Company & Public Co.

FORMATION OF A COMPANY

Formation of a company means bringing a company into existence and starting its business. The steps involved in the formation of a company are:

(i) Promotion

(ii) Incorporation

(iii)Capital subscription

(iv) Commencement of business.

A private company has to undergo only first two steps but a public company has to undergo all the four stages.

1. Promotion:

Promotion means conceiving a business opportunity and taking an initiative to form a company.

Step in Promotion:

1. Identification of Business Opportunity : The first and foremost function of a promoter is to identify a business idea e.g. production of new product or service.

2. Feasibility Studies: After identifying a business opportunity the promoters undertake detailed studies of technical, Financial, Economic feasibility of a business.

3. Name Approval: After selecting the name of company the promotors submit an application to the Registrar of companies for its approval.

4. Fixing up signatories to the Memorandum of Association: Promotors have to decide about the director who will be signing the memorandum of Association.

5. Appointment of professional: Promoters appoint merchant bankers, auditors etc.

6. Preparation of necessary documents: The promoters prepare certain legal documents such as memorandum of Association, Articles of Association which have to be submitted to the Registrar of the companies.

2. Incorporation

Incorporation means registration of the company as body corporate under the companies Act 1956 and receiving certificate of Incorporation.

Steps for Incorporation

1. Application for incorporation: Promoters make an application for the incorporation of the company to the Registrar of companies.

2. Filing of necessary documents: Promoters files the following documents:

(i) Memorandum of Association.
(ii) Articles of Association.
(iii) Statement of Authorized Capital
(iv) Consent of proposed director.
(v) Agreement with proposed managing director.
(vi) Statutory declaration.

3. Payment of fees: Along with filing of above documents, registration fee has to be deposited which depends on amount of the authorized capital.

4. Registration: The Registrar verifies all the document submitted. If he is satisfied then he enters the name of the company in his Register.

5. Certificate of Incorporation: After entering the name of the company in the register. The Registrar issues a Certificate of Incorporation. This is called the birth certificate of the company.

III. Capital Subscription:

A public company can raise funds from the public by issuing shares and Debentures. For this it has to issue prospectus and undergo various other formalities:

Step required for raising funds from public:

1. SEBI Approval: SEBI regulates the capital market of India. A public company is required to take approval from SEBI.

2. Filing of Prospectus: Prospectus means any documents which invites offers from the public to purchase share and Debenture of the company.

3. Appointment of bankers, brokers, underwriters: Banker of the company receive the application money. Brokers encourage the public to apply for the shares, underwriters are the person who undertake to buy the shares if these are not subscribed by the public. They receive a commission for underwriting.

4. Minimum subscription: According to the SEBI guide lines minimum subscription is 90% of the issue amount. If minimum subscription is not received then the allotment cannot be made and the application money must be returned to the applicants within 30 days.

5. Application to Stock Exchange: It is necessary for a public company to list their shares in the stock exchange therefore the promoters apply in stock exchange to list company shares.

6. Allotment of Shares: Allotment of shares means acceptance of share applied. Allotment letters are issued to the shareholders. The name and address of the shareholders submitted to the Registrar.

IV. COMMENCEMENT OF BUSINESS:

To commence business a public company has to obtain a certificate of commencement of Business. For this the following documents have to be filled with the registrar of companies.

1. A declaration that 90% of the issued amount has been subscribed.
2. A declaration that all directors have paid in cash in respect of allotment of shares made to them.
3. A statutory declaration that the above requirements have been completed and must be signed by the director of company.

Important documents used in the formation of company:

1. Memorandum of Association – It is the principal document of a company. No company can be registered without a memorandum of association and that is why it is sometimes called a life giving document.

Contents of Memorandum of Association:

1. Name clauses – This clause contains the name of the company. The proposed name should not be identicator similar to the name of another exiting company.

2. Situation clauses – This clause contains the name of the state in which the registered office of the company is to be situated.

3. Object clause – This clause defines the objective with which the company is formed. A company is not legally entitled to do any business other than that specified in the object clause.

4. Liability Clauses – This clause limits the liability of the members to the amount unpaid on the shares held by them.

5. Capital clause – This clause specifies the maximum capital which the company will be authorized to raise tough the issue of shares called authorized capital.

2. Articles of Association:

The articles of Association are the rules for the internal management of the affairs of a company the articles defines the duties, rights and powers of the officers and the board of directors.

Contents of the Article:
1. The amount of share capital and different classes of shares.
2. Rights of each class of shareholders.
3. Procedure for making allotment of shares.
4. Procedure for issuing share certificates.
5. Procedure for forfeiture and reissue of forfeited shares.
6. Rules regarding casting of votes and proxy voting
7. Procedure for selection and removal of directors
8. Dividend declaration and payment related rules
9. Procedure for capital readjustment
10. Procedure regarding winding up of the company.

2. Prospectus:

Prospectus means any document which invites deposits from the public to purchase share or debentures of a company.

Main contents of the Prospectus:
1. Company’s name and the address of its registered office.
2. The main object of the company
3. The number and classes of shares.
4. Qualification shares of the directors
5. The name and addresses of the directors, managing director or manager.
6. The minimum subscription which is 90% of the size of the issue.
7. The time of opening and closing of the subscription list.
8. The amt. payable on the application and allotment of each class of share.
9. Underwriters to the issue.
10. Merchant bankers to the issue.

2. Statement is Lieu of Prospectus:

A public company having a share capital may sometimes decide not to raise funds from the public because it may be confident of obtaining the required capital privately. In such case it will have to tile a statement in lieu of prospectus with the Registrar of companies. It Contains information much similar to that of a prospectus.

CHOICE OF FORM OF BUSINESS ORGANISATION

The following factors are important for taking decision about form of organization:

1. Cost and ease in setting up the organization: Sole proprietorship is least expensive and can be formed without any legal formalities to be fulfilled. Company is also expensive with lot of legal formalities.

2. Capital consideration: Business requiring less amount of finance prefer sole proprietorship & partnership form, where as business activities requiring huge financial resonances prefer company form.

3. Nature of business: If the work requires personal attention such as tailoring unit, cutting saloon, it is generally setup as a sole proprietorship. Unit engaged in large scale manufacturing are more likely to be organized in company form.

4. Degree of control desired: A person who desires full and exclusive control over business prefers proprietorship rather than partnership or company because control has to be shared in these cases.

5. Liability or Degree of Risk: Projects which are not very risky can be organized in the form of sole proprietorship partnership whereas the risky ventures should be done in company form of organization because the liability of shareholders is limited.

PRIVATE SECTOR ENTERPRISES

The private sector consists of business owned by individuals or a group of individuals. The varios forms of organisation are- sole proprietorship, partnership, joint hindu family, cooperative and company.

PUBLIC SECTOR ENTERPRISES

Meaning: The public sector consists of various organizations owned and managed by central or State or by both governments. The govt. participates in economic activity of the country through these enterprises.

FEATURES:

1. Capital is contributed by central or state or both govts.
2. Public welfare or Service is the main objective.
3. Management & control are in the hands of govt.
4. It is accountable to the public.

For more click on the given link:

<a data-ved="2ahUKEwiSo9jZ5ejtAhVGT30KHStlAWcQFjAAegQIAxAC" href="https://mycbseguide.com/blog/private-public-and-global-enterprises-class-11-notes-business-studies/" ping="/url?sa=t&source=web&rct=j&url=https://mycbseguide.com/blog/private-public-and-global-enterprises-class-11-notes-business-studies/&ved=2ahUKEwiSo9jZ5ejtAhVGT30KHStlAWcQFjAAegQIAxAC" rel="noopener" target="_blank">Private, Public and Global Enterprises class 11 Notes ...</a>

Primary Functions

1. Accepting Deposits: Accepting deposits is the main function of commercial banks. Banks offer different types of Bank accounts to suit the requirements and needs of different customers. Different types of Bank accounts areas follows:

A. Fixed Deposit Account: Money is deposited in the account for a fixed period is called as Fixed Deposit account. After expiry of specified period ,person can claim his money from the bank. Usually the rate of interest is maximum in this account. The longer the period of deposit, the higher will be the rate of interest on deposit.

B. Current Deposit Account: Current deposit Accounts are opened by businessman. The account holder can deposit and Withdraw money. Whenever desired. As the deposit is repayable on demand, it is also known as demand deposit. Withdrawals are always made by cheque. No interest is paid on current accounts. Rather charges are taken by bank for services rendered by it.

C. Saving Deposit Account: The aim of a saving account is to mobilize savings of the public. A person can open this account by depositing a small sum of money. He can withdraw money from his account and make additional deposits at will. Account holder also gets interest on his deposit. In this account though the rate of interest is lower than the rate of interest on fixed deposit account.

D.Recurring Deposit Account: The aim of recurring deposit is to encourage regular savings by the people. A depositor can deposit a fixed amount, say Rs. 100 every month for a fixed period. The amount together with interest is repaid on maturity. The interest rate on this account is higher than that on saving deposits.

E. Multiple Option Deposit Account: It is a type of saving Bank A/c in which deposit in excess of a particular limit get  automatically transferred into fixed Deposit. On the other hand, in case adequate fund is not available in our saving Bank Account so, as to honour a cheque that we have issued the required amount gets automatically transferred from fixed deposit to the saving bank account. Therefore, the account holder has twin benefits from this amount (i) he can earn more interest and (ii) It lowers the risk of dishonoring a cheque.

2. Lending Money with the help of money collected through various types of deposits, commercial banks lend finance to businessman, farmers, and others. The main ways of lending money are as follows:

A. Term Loans: These loans are provided by the banks to their customers for a fixed period to purchases Machinery. Truck. Scooter. House etc. The borrowers repay the loans in Monthly/Quarterly/Half Yearly/Annual installments.

B. Bank Overdraft: The customer who maintains a current account with the bank, takes permission from the bank to withdraw more money than deposited in his account. The extra amount withdrawn is called overdraft. This facility is available to trustworthy customers for a small period. This facility is usually given against the security of some assets or on the personal security of the customer. Interest is charged on the actual amount overdrawn by the customer.

C. Cash Credit: Under this arrangement, the bank advances cash loan up to a specified limit against current assets and other securities. The bank opens an account in the name of the borrower and allows him to withdraw the borrowed money from time to time subject to the sanctioned limit. Interest is charged on the amount actually withdraw.

D. Discounting of Bill of Exchange: Under this, a bank gives money to its customers on the security of a bill of exchange before the expiry of the bill in ease of customers needs it. For this service bank charges discount for the remaining period of the bill.

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.

They enjoy independence in their functioning and a high degree of operational flexibility. They are free from undesirable government regulation and control.

Features

Statutory corporations have certain distinct features, which are discussed as below:

(i) Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act. The Act defines the objects, powers and privileges of a statutory corporation;

(ii) This type of organisation is wholly owned by the state. The government has the ultimate financial responsibility and has the power to appropriate its profits. At the same time, the state also has to bear the losses, if any;

(iii) A statutory corporation is a body corporate and can sue and be sued, enter into contract and acquire property in its own name;

(iv) This type of enterprise is usually independently financed. It obtains funds by borrowings from the government or from the public through revenues, derived from sale of goods and services. It has the authority to use its revenues;

(v) A statutory corporation is not subject to the same accounting and audit procedures applicable to government departments. It is also not concerned with the central budget of the Government;

(vi) The employees of these enterprises are not government or civil servants and are not governed by government rules and regulations. The conditions of service of the employees are governed by the provisions of the Act itself. At times, some officers are taken from government departments, on deputation, to head these organisations.

The importance of aids to trade Transport

In the modern times there is a vast distance between centers of production and the centers of consumption. This difficulty is removed by an important aid to trade known as Transport.

Transport creates place utility.

There are several types of transport such as Air, Water and Land transport. The geographical distance between producers and consumers is removed with the help of transport.

<a href="https://lh3.googleusercontent.com/_iFIztPmvqg8/TXJV5FjgnDI/AAAAAAAAEOw/RKmpA0ZQjco/Types-of-Transport.png" imageanchor="1" rel="lightbox-What-Are-Aids-To-Trade" title="Types of transport"></a>

The three main modes of transport:

1. Land:
   1. Road
   2. Railyway
2. Water:
   1. River
   2. Sea
   3. Canals
3. Air:
   1. Airway

The formation of a company is a lengthy process. For convenience the whole process of company formation may be divided into the following four stages:

Stage # 1. Promotion Stage:

Promotion is the first stage in the formation of a company. The term ‘Promotion’ refers to the aggregate of activities designed to bring into being an enterprise to operate a business. It presupposes the technical processing of a commercial proposition with reference to its potential profitability. The meaning of promotion and the steps to be taken in promoting a business are discussed in brief here.

Stage # 2. Incorporation or Registration Stage:

Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.

Stage # 3. Capital Subscription Stage:

A private company or a public company not having share capital can commence business immediately on its incorporation. As such ‘capital subscription stage’ and ‘commencement of business stage’ are relevant only in the case of a public company having a share capital. Such a company has to pass through these additional two stages before it can commence business.

Stage # 4. Commencement of Business Stage:

After getting the certificate of incorporation, a private company can start its business. A public company can start its business only after getting a’ certificate of commencement of business’.

In the world of commerce, the term is usually synonymous with 'company', or 'business'. A business entity such as a corporation, limited liability company, public limited company, sole proprietorship, or partnership that has products or services for sale is a firm.