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SESSION -I UNIT-1 NATURE AND SCOPE OF BUSINESS UNIT-2 FORMS OF BUSINESS ORGANISATION-II ECO-01 BUSINESS ORGANIZATION BLOCK-I BASIC CONCEPTS & FORMS OF BUSINESS ORGANIZATION UNIT-1 NATURE AND SCOPE OF BUSINESS HUMAN ACTIVITIES Non-Economic Activities Economic-Activities Business

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SESSION -I

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SESSION -I

UNIT-1 NATURE AND SCOPE OF BUSINESS

UNIT-2 FORMS OF BUSINESS ORGANISATION-II


ECO-01 BUSINESS ORGANIZATION

BLOCK-I BASIC CONCEPTS & FORMS OF BUSINESS ORGANIZATION


UNIT-1 NATURE AND SCOPE OF BUSINESS

HUMAN ACTIVITIES

  • Non-Economic Activities

  • Economic-Activities

  • Business

  • Profession

  • Employment


BUSINESS

A business (also called a firm or an enterprise) is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit to increase the wealth of owners. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk.


Essential Features of Business

  • Dealings in goods and services

  • Production and/or exchange

  • Continuity and regularity in dealings

  • Profit motive

  • Element of risk


OBJECTIVES OF BUSINESS

  • ECONOMIC OBJECTIVES

  • SOCIAL OBJECTIVES

  • HUMAN OBJECTIVES


INDUSTRY

An industry (from Latinindustrius, "diligent, industrious") is the manufacturing of a good or service within a category.[1] Although industry is a broad term for any kind of economic production, in economics and urban planning industry is a synonym for the secondary sector, which is a type of economic activity involved in the manufacturing of raw materials into goods and products.


CLASSIFICATION OF INDUSTRIES

INDUSTRIES

Extractive

Industries:

Mining

Farming

Fishing

Quarrying

Genetic

Industries:

Nurseries

Fish Culture

Cattle

Breeding

Poultry

farms

Manufacturing

Industries:

Iron & Steel

Cement

Fertilizer

Vanaspati

Electronics

Construction

Industries:

Buildings

Roads

Canals

Dams


COMMERCE

Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic value such as goods, services, information or money between two or more entities. Commerce functions as the central mechanism which drives capitalism and certain other economic systems (but compare command economy, for example). Commercialization or commercialization consists of the process of transforming something into a product, service or activity which one may then use in commerce.


TRADE

  • Trade is the willing exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.


CATEGORIES OF TRADE

  • INTERNAL TRADE

  • Wholesale Trade

  • Retail Trade

  • EXTERNAL TRADE

  • Import Trade

  • Export Trade

  • Re-export Trade


AIDS TO TRADE

  • Transportation

  • Warehousing

  • Insurance

  • Advertising

  • Banking


UNIT-2 FORMS OF BUSINESS ORGANIZATION-I

An organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment.


Forms of Business Organization

Non-Corporate

forms

Of organizations

Corporate forms

Of

organization

Sole

Trader

Organization

Partnership

Organization

Joint

Stock

Company

Cooperative

Organization


SESSION -II

UNIT-3 FORMS OF BUSINESS ORGANIZATION-II

UNIT-4 BUSINESS PROMOTION


ECO-01 BUSINESS ORGANIZATION

BLOCK-I BASIC CONCEPTS & FORMS OF BUSINESS ORGANIZATION


UNIT-3 FORMS OF BUSINESS ORGANIZATION-II

Business Organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment.

When you plan to set up a new business, you have to decide which form of organization is more suitable for the proposed business.For this we have to critically analyze the suitability of various forms of organizations in the light of the nature of the proposed business.


REQUISITES OF AN IDEAL FORM OF BUSINESS ORGANISATION

  • Ease of formation

  • Scope of raising capital

  • Extent of liability

  • Flexibility of operations

  • Stability and continuity

  • Effectiveness of management

  • Extent of government control and regulations

  • Business Secrecy

  • Tax burden

  • Ownership Prerogatives


CRITERIA FOR THE CHOICE OF ORGANIZATION

1.CRITERIA AT THE TIME OF STARTING A BUSINESS-

  • Nature of business

  • Volume of business

  • Area of operation

  • Desire for control

  • Capital requirements

  • Extent of risk and liability

  • Government regulations


2. CRITERIA AT THE TIME OF EXPANSION-

Need for larger financial resources

Need for internal reorganization and control

Need for specialized services

Increase in governmental controls and regulations

Increase in tax liability

Increase in the problem of control and coordination


UNIT-4 BUSINESS PROMOTION

ENTREPRENEUR: An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. The term is a loanword from French and was first defined by the Irish economist Richard Cantillon. Entrepreneur in English is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome.

An entrepreneur is a independent business individual who efficiently and effectively combines the four factors of production.


ENTREPRENEURSHIP:

Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities.


Basic Elements of Entrepreneurship:

Innovation

Risk bearing

CHARACTERISTICS of an Entrepreneur:

Independence

Hard work

Desire to achieve goals

Foresight & dynamic outlook

Open-mindedness

Optimistic outlook

Working relationship

Good organizers

Innovative aptitude


Functions of an Entrepreneur

  • Develop an idea and explores opportunities

  • Product analysis & market survey

  • Decides form of organization

  • Collects necessary capital

  • Places orders for machinery

  • Recruitment of labor

  • Designs internal organizational structure

  • Fulfils formalities & launches enterprise


Distinction between Entrepreneur and Promoter

TYPES OF PROMOTERS:

Professional promoters

Financial promoters

Entrepreneurial promoters

Institutional promoters

Government


SESSION -III

UNIT-5 METHODS OF RAISING FINANCE

UNIT-6 LONG-TERM FINANCING & UNDERWRITING


ECO-01 BUSINESS ORGANIZATION

BLOCK-II

FINANCING OF BUSINESS


UNIT-5 METHODS OF RAISING FINANCE

Types of Financial needs:

Fixed Capital and Working Capital

Long term capital and short term capital

Capital Structure:

  • Ownership capital

  • Borrowed Capital


CAPITAL STRUCTURE

Proportion in which different sources of long-term finance are used to meet the total funds requirements, like shares, debentures, loans, retained profits etc.

Factors Determining the Capital Structure:

  • Nature of the business

  • Characteristics of the company

  • Management control

  • Cost of finance

  • Effect of debt financing on the earnings per equity share

  • Expected earning in relation to interest charges

  • Profitability of cash

  • Flexibility of capital structure


Methods of Raising Capital

  • Issue of shares

  • Issue of debentures

  • Loans from financial institutions

  • Loans from commercial banks

  • Public deposits

  • Retention of profits

  • Trade credit

  • Factoring

  • Discounting bills of exchange

  • Public deposits

  • Bank overdraft and cash credit


UNIT-6 SOURCES OF LONG TERM FINANCE & UNDERWRITING

LONG TERM FINANCE: Finance required for a period of five years or more. Fixed assets are long-lived assets and, therefore, investment can be made only with long-term finance I.e. funds which will not have to be returned within five years.


SOURCES OF LONG-TERM FINANCE

  • Capital market

  • Financial institutions

  • Leasing companies

  • Foreign Sources

  • Retained profits


UNDERWRITING

Agreement whereby the underwriter agrees to take up the shares or debentures issued by a company to the extent they are not subscribed by the public on payment of a commission Known as ‘Underwriting Commission’.

Underwriting refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the eligibility of a customer to receive their products (equity capital, insurance, mortgage or credit).


SESSION -IV

UNIT-7 STOCK EXCHANGES

UNIT-8 ADVERTISING

UNIT-9 ADVERTISING MEDIA


ECO-01 BUSINESS ORGANIZATION

BLOCK-II

FINANCING OF BUSINESS

BLOCK-III

MARKETING


UNIT-7 STOCK EXCHANGES

Stock exchange, securities exchange or (in Europe) bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds.


FUNCTIONS OF STOCK EXCHANGES

  • Primary Functions

  • Marketability and price continuity

  • Mobilizing surplus savings

  • Barometer of economic and business conditions

  • Mobility of capital

  • Contribution to capital formation

  • Shock absorber

  • Sifting process

  • Facilitates resource allocation


Secondary Functions

Safety of investment and equity in dealings

Easy liquidity

Accurate and continuous report regarding sales

Full information regarding listed companies

Helpful in re-investment decisions

Safeguard to investors


Types of Dealings in a Stock Exchange

  • Spot delivery contracts

  • Ready delivery contracts

  • Forward delivery contracts


Bull or Long

Bear

Stag

Contango

Backwardation

Cum-Dividend

Ex-Dividend

Cornering

Margin trading

Arbitrage

Rigging the market

Settlement day

Blank transfer

Jobber

IMPORTANT TERMS


LISTING:- It implies that the securities have met the satisfaction of stock exchange authorities, in respect of certain prescribed standards of legality, security and work-man ship.

Advantages of Listing:

It provides a continuous market for securities.

It enhances the prestige of the company.

It provides an indirect check against manipulation of prices by the management.


FACTORS AFFECTING PRICES IN A STOCK EXCHANGE

  • Interest rate

  • Activities of the financial institutions

  • Performance of the company

  • Business cycle

  • Changes in Board of directors

  • Sympathetic fluctuations

  • Political events

  • Changes in government policy


UNIT-8 ADVERTISING

Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.

Important four expressions of advertising:

  • Paid form

  • Non-personal presentation

  • Ideas, goods & services

  • Identified sponsor


PUBLICITY

Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people (for example, politicians and performing artists), goods and services, organizations of all kinds, and works of art or entertainment.

Important four expressions of advertising:

  • Non-sponsored

  • Commercially significant information

  • Disseminated by non-personal media

  • Without a financial charge to the company


ADVERTISING

Presented by non-personal media

Identifiable sponsor

Company has to pay money to the media for space & time

It is intended to give favorable impression about the company or its product

PUBLICITY

Presented by non-personal medium

No identifiable sponsor

Does not make any payment to media

It may have favorable or unfavorable influence on the public about the company or its product

Difference b/w Advertising & Publicity


Objectives of ADVERTISING

  • Introduction of new products

  • Inducing potential customers to buy

  • Reminding users

  • To create brand image

  • To intimate customers about new use of a product

  • To highlight brand character

  • Dealer support

  • Trafficking the retail trade


ROLE OF ADVERTISING IN SOCIETY

Arguments against Advertising:

  • Advertising leads to higher prices

  • Advertising leads to monopoly

  • It results in inefficient resource allocation

  • It causes undesirable social effects

  • It may act against the freedom of press


ROLE OF ADVERTISING IN SOCIETY

Arguments in Support of Advertising:

  • Advertising leads to reduction in the cost of goods

  • It need not necessarily lead to monopoly

  • It directs allocation of resources according to demand

  • Advertising and social values

  • It encourages autonomy of mass media

  • It provides useful information

  • It generates employment


ESSENTIALS OF AN EFFECTIVE ADVERTISEMENT

Features relating to the message:

  • Desirability

  • Exclusive

  • Believable

  • Attractive

  • Memorable and easy to recall

    Features relating to Consumer Reach:

  • Appropriate media

  • Frequency

  • Timing


UNIT-9 ADVERTISING MEDIA

MEDIA:- medium is the vehicle or carrier of advertising message to the target customers or prospects. The basic purpose of using media is to bring products and services to the notice of potential customers.

It is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.


TYPES OF MEDIA

  • Press (newspapers and magazines)

  • Radio

  • Television

  • Outdoor media

  • Direct Mail


REQUISITES OF AN IDEAL MEDIUM

  • Reach

  • Message

  • Economy

  • Flexible

  • Scope of repetition

  • Effective


CHOICE OF MEDIA

Factors influence the choice of media:

  • Character of media

  • Nature of the product to be advertised

  • Type of audience

  • Coverage

  • Cost


SESSION -V

UNIT-10 HOME TRADE AND CHANNELS OF DISTRIBUTION

UNIT-11 WHOLESALERS AND RETAILERS

UNIT-12 PROCEDURE FOR IMPORT AND EXPORT TRADE


ECO-01 BUSINESS ORGANIZATION

BLOCK-III

MARKETING


UNIT-10 HOME TRADE AND CHANNELS OF DISTRIBUTION

Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.


CHANNEL OF DISTRIBUTION

The Channel of Distribution is a network of institutions that perform a variety of interrelated and coordinated functions in the movement of goods from producers to consumers. Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.


FUNCTIONS OF CHANNELS OF DISTRIBUTION

  • Transactional Functions

  • Logistical functions

  • Facilitating functions


Factors influencing the choice of Channel

  • Distribution policy

  • Characteristics of the product

  • The target customers in view

  • Supply characteristics

  • Types of middleman in the field

  • Channel competition

  • Potential volume of sales

  • Costs of distribution

  • Profits expected in the long-run


TYPES OF MIDDLEMAN

Functional Middleman

  • Factors

  • Brokers

  • Commission agent

  • Del credere agents

  • Auctioneers

    Merchant Middleman

  • Wholesaler traders

  • Retail traders


ROLE OF MIDDLEMAN

  • Provide local convenience to consumers

  • Provide field stocks

  • Financing

  • Servicing

  • Acting as channels of communication

  • Help in promotion


UNIT-11 WHOLESALERS AND RETAILERS

“Wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.


WHOLESALERS

Based on

Merchandise

Based on

Geographical

Coverage

Based on

Method of

Operation

Local

wholesalers

Service

wholesalers

General

Merchandise

wholesalers

District

Wholesalers

Limited

Function

Wholesalers

General

Line

wholesalers

Regional/

National

wholesalers

Single

Line

Wholesalers


Functions of Wholesalers

  • Assembling Products

  • Grading and packaging

  • Transporting goods

  • Distribution of goods

  • Financial

  • Risk-bearing

  • Price fixation


RETAILER

A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.


Functions of Retailers

  • Estimating the demand

  • Procurement of goods

  • Transportation

  • Storing goods

  • Grading and packaging

  • Risk-bearing

  • Selling


Services of Retailers

  • Holding ready stocks

  • Display of goods

  • Advice to consumers

  • Personal services


ITENERANT RETAILERS

Retail traders who carry on business moving about from place to place to sell their goods are known as Itinerant Retailers.

Types of Itinerant retailers:

  • Hawkers or pedlars

  • Pavement traders

  • Market traders


FIXED-SHOP RETAILERS

Fixed shop retailers carry on their business in certain premises. They locate their stores at fixed places where customers can easily reach and make their purchases.

Types of fixed shop retailers:

  • Small-Scale retailers

  • Large-scale retailers


UNIT-12 PROCEDURE FOR IMPORT & EXPORT TRADE

FOREIGN TRADE: Exchange of goods and services between people across national boundaries is called ‘Foreign Trade’ or ‘International Trade’. Foreign trade can be bilateral or multilateral.

TYPES OF FOREIGN TRADE:

a. Import Trade

b. Export Trade

c. Entrepot Trade


Importance of Foreign Trade

  • Specialization and efficiency of production

  • Utilization of resources

  • Facilitates economic development

  • Equalization of prices

  • Employment opportunities

  • Harmonious relationship between countries


Problems in Foreign Trade

  • Suitability of the product for the market

  • Changes in supply and demand conditions

  • Frequent price changes

  • Credit risk

  • Changes in exchange rate

  • Rules, regulations and procedures

  • Credit worthiness of importer and reliability of exporters

  • Transportation and cargo risks

  • Time gap

  • Political and legal problems


Regulations Governing Foreign Trade

  • Reserve Bank Code Number: Commercial exports can be undertaken by a firm in India only after it has obtained the Reserve Bank Code Number.

  • Registration with Export Promotion Council etc: According to EXIM Policy, 1992-1997 it is compulsory for exporters to get registered with any Export Promotion Council (EPC) etc.

  • Import Export Code Number: Every person importing goods for commercial purposes is required to obtain an Import-Export code number from the Regional Import-Export Licensing Authority.


Receives enquiry

Receives and scrutinizes the order from importer

Obtains export license

Manufactures/procures goods

Fulfils exchange regulations

Books shipping space

Gets excise clearance and pre-shipment inspection

Packing and marking

Appoints clearing and forwarding agents

Customs formalities

Insurance of goods and ECGC cover

Places the goods on board the ship

Obtains bill of lading

Collects necessary documents

Secure payment

Claims the incentives

Export Trade Procedure


Import Trade Procedure

  • Trade enquiry

  • Obtains an Import license

  • Obtains Foreign Exchange

  • Places the order/ Indent

  • Arranges letter of Credit

  • Gets Shipping Documents

  • Clears the goods

  • Makes Payments


SESSION -VI

UNIT-13 BANKING

UNIT- 14 BUSINESS RISK AND INSURANCE


ECO-01 BUSINESS ORGANIZATION

BLOCK-IV

BUSINESS SERVICES


UNIT-13 BANKING

A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold.


Features of a Bank

  • Acceptance of deposits of money from the public

  • Profitable employment of such funds

  • Obligation to refund deposits on demand

  • Lending or investing money

  • Banking as the main business


Types of Banks

  • Commercial Banks

  • Co-operative Banks

  • Land Development Banks

  • Regional Rural Banks

  • Industrial Banks

  • Central Bank


Role of Commercial Banks

  • Remittance Collection of deposits

  • Facilitate Payments

  • Provide loans and advances

  • Provide credit Information

  • Discounting of bills

  • Collection of cheques

  • Safety of valuables of money


Relationship b/w Banker & Customer

  • Contractual relationship

  • Debtor & creditor relationship

  • Bailee & bailor relationship

  • Trustee beneficiary relationship

  • Principal- Agent relationship


Duties of a Bank

  • Obligation to Honor cheques

  • Obligation to maintain secrecy

  • Obligation to follow customer’s instructions

  • Obligation to maintain proper records

  • Obligation to give notice before closing the account


Rights of a Bank

  • Right of General Lien

  • The right of Set-off

  • Right of Appropriation

  • Right to charge interest and commission

  • Right to close the account


Types of Bank Accounts

Bank Accounts

Demand deposits

Time Deposits

Savings Fund

Account

Current Deposit

Account

Recurring

Account

Fixed Deposit

Account


Other Bank Services

  • Collection of money on behalf of customers

  • Leasing

  • Tax consultancy

  • Merchant banking services

  • Issuing of Credit cards


UNIT-14 BUSINESS RISK & INSURANCE

‘Risk’ mean the uncertainty of occurrence of economic loss. ‘Business Risk’ is defined as the uncertainty of occurrence of economic loss in the event of any business activity.


Pervasiveness of Risks in Business

  • Property and personnel

  • Marketing

  • Finance

  • Production

  • Environment


Types of Business Risks

  • Pure Vs Speculative risks

  • Dynamic Vs Static risks

  • Risk classified by Loss severity

  • Objective Vs Subjective Risks


RISK MANAGEMENT

  • Risk management is activity directed towards the assessing, mitigating (to an acceptable level) and monitoring of risks. In some cases the acceptable risk may be near zero. Risks can come from accidents, natural causes and disasters as well as deliberate attacks from an adversary. The main ISO standards on risk management include.

  • In businesses, risk management entails organized activity to manageuncertainty and threats and involves people following procedures and using tools in order to ensure conformance with risk-management policies.


INSURANCE

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.


INSURABLE RISKS: Pure risks which can be transferable to the insurer.

NON-INSURABLE RISKS: Risks which cannot be transferred and therefore not insurable.


INSURANCE CONTRACT

An insurance contract determines the legal framework under which the features of an insurance policy are enforced. Insurance contracts are designed to meet very specific needs and thus have many features not found in many other types of contracts. Many features are similar across a wide variety of different types of insurance policies.


Legal Aspects of Insurance

Basic principles which are applicable to various kinds of Insurance contracts are:

  • Utmost good faith

  • Proximate cause

  • Insurable interest

  • Indemnity

  • Subrogation

  • Principle of mitigation of loss


KINDS OF INSURANCE

  • Life Insurance

  • Marine Insurance

  • Fire Insurance

  • Motor Insurance

  • Miscellaneous Insurance


SESSION -VII

UNIT-15 TRANSPORT AND WAREHOUSING

UNIT-16 GOVERNMENT IN BUSINESS

UNIT-17 FORMS OF ORGANIZATION IN PUBLIC ENTERPRISES


ECO-01 BUSINESS ORGANIZATION

BLOCK-IV

BUSINESS SERVICES

BLOCK-V

GOVERNMENT AND BUSINESS


UNIT-15 TRANSPORT & WAREHOUSING

TRANSPORT: Transport or transportation is the movement of people and goods from one location to another. Transport is performed by various modes, such as air, rail, road and water.

The field can be divided into infrastructure, vehicles, and operations. Infrastructure consists of the fixed installations necessary for transport, and may be roads, railways, airways, waterways, canals and pipelines or terminals such as airports, railway stations, bus stations and seaports. Vehicles traveling on the network include automobiles, bicycles, buses, trains, people and aircraft. Operations deal with the way the vehicles are operated, and the procedures set for this purpose including the financing, legalities and policies. In the transport industry, operations, and ownership of infrastructure, are both public and private, depending on the country and mode.


ESSENTIALS OF A GOOD TRANSPORT SYSTEM

  • Economical

  • Carrying goods as speedily as possible

  • Operated by the properly skilled and efficient persons

  • Insuring the risks of loss or damage

  • Delivery of goods should be made at locations


CONTAINERISATION

Containerization (or containerization) is a system of intermodal freight transportcargotransport using standard ISO containers (known as shipping containers, ITUs (Intermodal Transport Units or isotainers) that can be loaded and sealed intact onto container ships, railroad cars, planes, and trucks.


CLEARING AGENT:- One who is engaged by importers for getting delivery of imported goods after complying with the necessary formalities prescribed by the customs and port authorities.

FORWARDING AGENT:- One engaged, on behalf of the exporter, to comply with the customs and other formalities in connection with export of goods.


WAREHOUSING

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.


UNIT-16 GOVERNMENT IN BUSINESS

Reasons which led to the government regulation & control of private business are:

  • Evils of free enterprise & private ownership

  • Establishment of welfare state

  • Planned economic development

  • Other reasons


INSTRUMENTS OF GOVERNMENT CONTROL

  • Direct control

  • Indirect control

  • Economic planning

  • Industrial Policy

  • Industrial licensing


Public Enterprise

  • A public company usually refers to a company that is permitted to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, but also may include companies whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services such as the OTCBB and the Pink Sheets.

  • The term "public company" may also refer to a government-owned corporation. This meaning of a "public company" comes from the tradition of public ownership of assets and interests by and for the people as a whole (public ownership).


FEATURES OF PUBLIC ENTERPRISE

  • Public enterprises are owned & managed by the government set up by the government.

  • The whole or major part of the capital required for the public enterprises is provided by government.

  • It can be organized as a departmental undertaking.

  • These are governed by public policies laid down by the government in the public interest.

  • Their objectives are laid down in conformity with the development plants.


OBJECTIVES OF PUBLIC ENTERPRISES

  • To achieve rapid economic development.

  • To channelise resources in the best possible manner for economic growth.

  • To secure public welfare and to reduce inequalities in the distribution of income and wealth.

  • To ensure balanced regional development of industry and trade.

  • To prevent the growth of monopoly & concentration of economic power.

  • To control the prices of essential consumer goods in the market.

  • To mobilize public savings.

  • To provide satisfactory employment conditions.


PERFORMANCE OF PUBLIC ENTERRISES

CONTRIBUTION OF PUBLIC ENTERPRISES

PROBLEMS OF PUBLIC ENTERPRISES

TOPICS FOR DISCUSSION


UNIT-17 FORMS OF ORGANIZATION IN PUBLIC ENTERPRISE

PUBLIC ENTERPRISES

Departmental

Organization

Statutory/Public

Corporation

Government

Company


DEPARTMENTAL ORGANIZATION

A form of organization where a public enterprise is organized, financed, and controlled in the same way as the government department.

FEATURES:

  • Overall control rests with the minister.

  • Employees are the civil servants.

  • Financed through budget appropriations.

  • Accounting and auditing systems

  • Sovereign immunity


PUBLIC CORPORATION

An autonomous corporate body created by a special Act of Parliament or state legislature with defined functions and powers.

FEATURES:

  • Created by a special legislature.

  • It is a corporate body.

  • Owned by the State.

  • Managed by board of directors.

  • Answerable to legislature.

  • Relation with the government.

  • Own staffing system.

  • Financial independence.


GOVERNMENT COMPANY

A company registered under the Indian Companies Act in which not less than 51% of the paid-up share capital is held by the central government or any state government or partly by the central government and partly by the one or more state governments.

MIXED OWNERSHIP COMPANY- A governmental company in which both the government and private enterprises are shareholders.


Features of Government Company

  • Created under Indian Companies Act

  • It is a corporate body

  • Scope for private participation in the capital

  • Managed by board of directors

  • Enjoys financial independence

  • Independent Staffing

  • Independent accounting and auditing system

  • Annual reports


SESSION -VIII

UNIT-18 PUBLIC UTILITIES

ASSIGNMENTS & PROBLEMS DISCUSSION


ECO-01 BUSINESS ORGANIZATION

BLOCK-V

GOVERNMENT AND BUSINESS


UNIT-18 PUBLIC UTILITIES

  • A public utility (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies.

  • The term utilities can also refer to the set of services provided by these organizations consumed by the public: electricity, natural gas, water and sewage. Telephone services may also be included.


Features of Public Utilities

  • Indispensability

  • Field of operation

  • Monopolistic or semi-monopolistic position

  • Regulation and control

  • Franchise

  • Huge capital investment

  • Inelastic demand

  • Non-transferable demand by consumer

  • Risk involved

  • Size of the undertaking

  • Choice of site


Topics for Discussion

  • Organization and Management of Public Utilities

  • Pricing policy of Public Utilities

  • Sales Policy of Public Utilities

  • Public Control And State Regulation


THANK YOU……..

QUERIES WELCOME


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