Equity Share Capital is called as risk capital as equity shareholders have a claim over the residual proceeds of the company. In other words, in the event of winding up they are the last to be paid off after settling the claims of creditors and other external liabilities. In case the funds are insufficient to repay or settle external liabilities, equity shareholders are not paid off any thing instead the uncalled amount may be called up from the them.

National Small Industries Corporation (NSIC) was established in the year 1955 in order to promote, aid and foster the growth of small business units in the country. The functions of NSIC are as follows : Vz

1. To create awareness about technological upgradation.
2. To develop technology transfer centres and software technology parks.
3. To export the products of small business units in order to develop export worthiness.
4. To obtain, supply and distribute indigenous and imported raw materials.
5. To provide mentoring and advisory services.
6. To serve as technology business incubators.
   NSIC has also introduced a new scheme of performance and credit rating for small businesses in order to encourage them to maintain good financial track record and to sensitize them about the need for credit rating.

Business refers to those economic activities, which are connected with the production or purchase and sale of goods or supply of services with the main object of earning profit.

Economic activities may be divided into three major categories i.e. (i) Business (ii) Profession (iii) Employment

Business refers to those economic activities, which are connected with the production or purchase and sale of goods or supply of services with the main object of earning profit. People engaged in business earn income in the form of profit. 

Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation. Such activities are generally subject to guidelines or codes of conduct laid down by professional bodies. Those engaged in professions are known as professionals. For example, doctors are engaged in the medical profession and are subject to the regulations of the Medical Council of India, the concerned professional body. Similarly, lawyers are engaged in the legal profession, governed by the

Bar Council of India and Chartered Accountants belong to the accounting profession and are subject to the regulations of the Institute of Chartered Accountants of India. 

Employment refers to the occupation in which people work for others and get remunerated in return. Those who are employed by others are known as employees. Thus, people who work in factories and receive wages and salaries are in the employment of factory owners and are employees of the factory. Similarly, people who work in the offices of banks, insurance companies or government department, as managers, assistants, clerks, peons or security guards are the employees of these organisations.

Mutual agency implies that every partner is both an agent and principal. He is an agent of other partners as he represents them and there by binds them through his decisions and acts. He is a principal as he too can be bound by the acts of other partners.

Surrender of Insurance Policy means to cash of life insurance policy before benefits are due to be paid. The Surrender Value of an Insurance Policy is the amount given to the insured at a time, when he is unable to pay premium related to Insurance Policy. 

the work of planting tress comes under social  objectives as due to industries and factories there has been a lot of deforestation which has been fulfilled by aforestation.

ROLE OF BUSINESS ENVIRONMENTAL PROTECTION:

1. Eco-friendly and clean or low waste technology should be used by industrial organization.
2. Industrial Wastes should be recycled as far as possible.
3. Plant and machinery should be modernized to minimize pollution.
4. The business houses should comply with the laws and regulations enacted for prevention of pollution.
5. Positive steps should be taken to save environment. These include plantation of trees, cleaning of rivers, ponds etc.

Under Section 58 of the Indian partnership Act, 1932, a firm may be registered at any time (not merely at the time of its formation but subsequently also ) by filing an application with the Registrar of Firms of the area in which any place of business of the firm is situated or proposed to be situated. The Registration of a partnership firm is not compulsory under Part vii of the Indian Partnership Act, 1932, though it is usually done as registration brings many advantages to the firm. It is optional for partners to set the firm registered and there are no penalties for non-registration.

Various types of industries are:

1. Primary- Industries which deal with obtaining or offering raw materials which are processed as commodities for the customers. Example: Farming, Fishing
2. Secondary-  Industries which are essentially manufacturing or assembling industries. It receives raw materials from primary industries and processes them to commodities for the customers. Example: Food manufacturing, Textile manufacturing
3. Tertiary- These industries act as a support system to the primary and secondary industries. It is also known as the service industry or the service sector. Example: Banking, Transport.

Two applications of e-business are
(i) e-Procurement It involves internet-based sales transactions between business firms, including "reverse auctions" that facilitate online trade between a single business purchaser and many sellers, and, digital market places that facilitate online trading between multiple buyers and sellers.
(ii) e-Communication/e-Promotion It includes e-mails, publication of online catalogues displaying images of goods, advertisement through banners, pop-ups, opinion polls and customer surveys, etc. Meetings and conferences may be held by the means of video conferencing.

Business: An economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society is called business.
Characteristics of Business:

1. Economic activity: All business activities are economic activities and are done for the sole purpose of earning money.
2. Production and procurement of goods and services: A business activity involves production or procurement of goods and services. A manufacturer is involved in production, while a shopkeeper is involved in procurement.
3. Sale and exchange of goods and services for the satisfaction of human needs: Sale and exchange of goods and services is done to satisfy human needs.
4. Dealing in goods and services on a regular basis: One time dealing in goods or services cannot be termed as a business. The business should happen on a regular basis.
5. Profit earning: Profit earning is the fundamental motive of doing a business. Other motives are there but they depend on profit motive.
6.  Uncertainty of returns: Returns can never be certain in business activity. This happens because of external factors which are outside the control of the business organization.
7. Element of risk: An element of risk is always present in business activity.

E-banking means any user with a PC and a browser can get connected to the banks’ website to perform any of the virtual banking functions and avail of any of the banks services. There is no human operator to respond to the needs of the customer. 

Public sector:

1) These organisations are operated directly by the government or by the government sponsorship.

2) The service charges are comparatively affordable.

3) Government aided cost free services are also provided by these organisations.

Private sectors:

1) These organisations are operated by the private companies.

2) The service charges are very high and not affordable for most middle class and lower middle class population.

3) Cost free services are rarely provided by these organisations. 

Business Process Outsourcing (BPO)

Many activities have to be performed for the successful conduct of business like productions, buying, selling, advertising etc. When the scale of business is small, the businessman used to perform these activities easily. However, with the enlargement of scale of business, this job has become tedious. Therefore, in order to overcome the difficulties connected with the performance of many activities and to get the benefit of specialization, these services are now obtained from outside the organization. This is called outsourcing of services or BPO.

Business: Refers to Purchase, production and/ or sale of goods & services with the objective of earning profit.

A legal, binding partnership that may occur where previously, no formal partnership agreement was in place. A person who exhibits such conduct, or says words which represent, or allow him to be represented, as a partner in any firm becomes liable to any loans or credits that are obtained by the firm. It is also known as the presumption of partnership.

Retailers provide important services to consumers and wholesalers as they act as middle-men between them.
Services to consumers:

1. Ready or quick supply : The most important service of a retailer to consumers is to maintain regular availability of various products so that the buyers can buy the products whenever they need.
2. Wide variety : Retailers generally keep stock of a variety of products and different manufacturers. This enables the consumers to make their choice out of a wide selection of goods.
3. Guiding customers : By ananging the effective display of products and through their personal selling efforts retailers should provide the information of products to the customers.
4. Demonstration and after sales services : It can be done in the form of home delivery, supply of spare parts and attending to customers.
5. Home delivery : It is an important part of after sale services and for a buyers decision for repeat purchase of the products.
6. Convenient location : They are suitated very near to the residential areas and remain open for long hours which makes great convenience to the customers.
   Services to wholesalers and manufacturers :
7. Ready market: Retailers deal with individuals so the manufacturers and whole-salers will not make individual sales.
8. Providing information : By undertaking personal selling efforts retailers relieve the producers of this activity of individual selling.
9. Risk bearing : Retailers participates in the promotional activities of the product so that the product becomes popular and then it is less risk for the manufacturers.
10. Distribution of goods to distant places : Retailers helps in distribution of goods to the final consumers and thus provide place utility.

The functions of retailers are as follows :

1. Financing : Retailers provide goods to the consumers on credit basis. This increases the level of consumption and hence the standard of living.
2. Supplying market information : Since the retailer is in direct contact with the consumers, he provides information regarding their tastes, preferences and attitudes, etc. to the wholesaler. This information helps them in taking important marketing decisions.
3. Convenience in buying : Retailers provide goods to the consumers according to their requirements. Usually, they are situated near the residential areas and remain open for long hours.
4. Risk bearing : A retailer has to bear the risk if the change in style and fashion occurs when the goods are stored in large quantities in the warehouses.