Business Studies 2022-23
Business Studies 2022-23
BUSINESS STUDIES
SESSION 2022-23
CLASS 12
Part - A
Meaning/Concept of Management:
Management is the process of getting things done with the aim of achieving goals
effectively andefficiently.
Effectiveness: means completing the right task to achieve the goal within time.
Efficiency: means completion of task using minimum resources
Characteristics/Features of Management
a) Management is Goal oriented
b) Management is Pervasive
c) Management is Multidimensional-Management of Work, Management of people,
Management ofOperation
d) Management is Continuous process
e) Management is Group activity
f) Management is Dynamic function
g) Management is Intangible.
Functions of Management:
a) Planning - Setting objectives and targets and formulating an action plan of what is
to be done, howto be done and when to do it
b) Organizing - Assignment of duties, task, establishment of authority and
responsibilityRelationship,
allocating the resource required to perform the planned task.
c) Staffing-Finding and placing the right person at the right job at the right time.
d) Directing - Leading, influencing, and motivating the staff chosen to perform
the assigned taskefficiently and effectively.
e) Controlling - Ensuring/Monitoring the activities in an organisationare performed as per
the plan.
OBJECTIVE OF MANAGEMENT
Organizational Objectives:-
a) Survival: - Ensure that the organization survives and exists in thefuture.
b) Profitability: - Earning adequate profit in order to survive and grow.
c) Growth: - Growth indicates how well it exploits the potential opportunities.
Social Objectives:
Supply of quality products at reasonable rates, Generating employment
opportunities, Contributiontoward desirable civic activities, Using environmental
friendly methods of production.
Personal Objectives:
Meeting the Financial needs like competitive salaries & perks, Peer recognition like
self respect,etc., .Good & healthy working conditions for safety of employees,
Promotion, training personal growth of employees.
Importance of Management
1. Helps in achieving Group Goals
2. Creates a dynamic organization
3. Helps in achieving Personal objectives
4. Increases efficiency
5. Helps in development of society facilitate changes
Levels of Management-
The levels of management denote a demarcation between various position in an
organization on thebasis of the irresponsibility, authority and status .These are–
Top Level Management - Ex- CEO, Board of directors, MD, President & Chairman.
Functions of Top Level Management:-
a) Decide overall objectives of the organization.
b) To make plan.
c) Provide various resources
d) Decide policies
Middle Level Management – For eg.- Departmental heads such as purchase
manager, Operations manager, Production manager, Marketing manager, Divisional
heads & Plant superintendent etc.
Functions of Middle Level Management:-
a) To implement plan and policies to assist top management.
b) To assign job to subordinates.
c) To recruit employees for their respective departments
Lower level Management –For eg.- Foremen, Inspectors, Supervisors etc.
Functions of Lower level Management:-
a) To arrange raw materials, tools and other facilities.
b) To ensure about the performance of workers
c) To ensure safety and security of workers
Nature of Management
Management as a Science:
a) Universal validity
b) Arranged, organized systematic body of knowledge
c) Principles arrived after experimentation.
Management as s an Art:-
a) Based on practice and creativity
b) Personalised Application
c) Existence of Theoretical knowledge.
Management as a Profession:
a) Well defined body of knowledge.
b) Existence of code of conduct
c) Professional association (AIMA)
d) Restricted entry
e) Fees as remuneration for their services.
Coordination:-
It is the synchronization of various activities and efforts in an organization providing
the required amount of quality, timing and sequence; thus ensuring the achievement of
the planned goal with minimum content.
Features of coordination:
1. Integrates Group Effort:
2. Ensures unity of action
3. It is a Continuous Process
4. It remains the function and responsibility of every manager
Importance of coordination
1. Ensures unity of action
2. Erases interdepartmental conflicts Promotes harmonious implementation of plans
3. Helps in maintaining a high degree of morale amongst employees.
UNIT- 2: PRINCIPLES OF MANAGEMENT
1) Division of work: - Whole work should be divided into small tasks / units; each
task should beassigned to one person according to the capability, qualification and
experience of the person.
2) Authority and responsibility: - ‗Authority‘ means the power to take decisions.
‗Responsibility‘ means obligation to complete the job assigned on time. Fayol
suggested that there must be a balancebetween authority and responsibility.
3) Discipline:-It means obedience to organizational rules and employment agreement.
4) Unity of command:-An employee should receive orders /instructions from one
and only one boss/ superior and should be accountable to one superior only.
5) Unity of direction:-All the units of an organisation should be moving towards the
same objectivesthrough coordinated and focused efforts. ( One unit means one plan.
6) Subordination of Individual Interest to General Interest:- The interest of the
organisation mustsupersede the interest of individuals or employees.
7) Remuneration of employees: - Remuneration of employees should be just and
equitable to providemaximum satisfaction to the employees as well as employer.
8) Centralisation and Decentralisation:-Centralisation refers to concentration of
authority or power in few hands at the top level. Decentralisation means evenly
distribution of power at every level of management. There must be combination of both
depending upon the nature and size of the organisation.
9) Scalar chain:- The formal line of authority from highest to lowest rank are known
as ‗scalar chain‘ suggests that communication from top to bottom should follow the
official lines of command. Gang plank is a shorter route and has been provided so that
communication has not delayed.
10) Order: - It means there should be a fix place for every person and everything in the
organization and each person and everything should be at its definite place i.e. material
and social order.
11) Equity: - Equity means no discrimination on account of sex, religion, language,
caste, belief or nationality etc.
12) Stability of Tenure of personnel: - It refers to no frequent termination and transfer.
Employees should not be moved from their positions frequently, they should be given
reasonable time to show results.
13) Initiative: - Initiative refers to taking the first step with self-motivation. The
employees in the organisation must be given an opportunity to take some initiative in
making and executing a plan.
14) Espirit de corps:-Fayol emphasises the need for team work, spirit of unity and
harmony among employees. A manager should replace ―I‖ with ―We‖.
Scientific Management: Principles and Techniques
Scientific management means knowing exactly what you want men to do and
seeing that they do itin the best and cheapest way.
Scientific Principles:-
1) Science, not rule of thumb: Taylor believed that there was only one best method to
maximize efficiency, which can be developed through scientific study.
2) Harmony, not discard: Taylor insists that there is need for both the groups i.e.
workers group and management group to change their attitudes for each other. He insists
on mental revolution which means complete change of attitude and outlook for each
other.
3) Cooperation, not individualism: Taylor insists work must be carried on in co-
operation with each other, with mutual confidence and understanding for each other.
4) Development of each and every person to his/her greatest efficiency and
prosperity: Each person should be scientifically selected. They should be given
required training to learn best method.
Taylors techniques of scientific management:-
1) Functional foremanship:-Taylor suggested activities of factory workers should be
observed by eight type of specialised foremen.He divided the work of factory in two
departments:
Planning department:-Instruction card clerk, route clerk, timeand cost clerk and discipline
officer
Production department:- Gang boss, speed boss, repair boss and Inspector.
2) Standardisation and Simplification of work: - It refers to the process of setting
standards for various business activities whereas Simplification means to put an end to
unnecessary types, qualities, size/weight etc. of products.
3) Method study: – Objective of method study is to find out one best way of doing the
job.
4) Motion study: - It refers to the study of movements so that unproductive movements
may be eliminated.
5) Time study: – It determines standard time taken to perform a well-defined job.
6) Fatigue study: – It seeks to determine the amount and frequency of rest intervals in
completing a task.
7) Differential piece wage system: - It emphasises on paying different rates of wages
for efficient andinefficient employees. It rewards the efficient employees and motivates
the inefficient ones to perform better.
UNIT-3: BUSINESS ENVIRONMENT
Meaning -The sum total of individuals, institutions and other forces that are outside the
control ofa business enterprise but that may affect its performance.
Features/ Characteristics/Nature of Business Environment-
Meaning-It refers to instructing, guiding, inspiring and motivating the employees in the
organisation sothat their efforts result in achievement of organisational goals.
Features/Characteristics of Directing function:-
a) Directing initiates action
b) Continuing function
c) Directing takes place at every level
d) Directing flows from top to bottom
e) Performance oriented.
Importance of Directing Function:-
a) To initiate action
b) To integrate employees effort
c) Means of motivation
d) Bring stability and balance in the organisation
e) To facilitate change.
Elements of Directing.
1. Supervision 2. Motivation 3. Communication and 4. Leadership.
Supervision:-Supervision refers to the direct and immediate guidance and control of
subordinates inthe performance of their task or to watch over the routine activities of
workers.
Motivation: - It refers to that process which encourages people to work for the attainment
of a desiredobjective.
Features/Characteristics/Nature of Motivation:-
a) Motivation is a psychological phenomenon
b) Motivation produces goal-directed behaviours
c) Motivators can be positive as well as negative
d) Motivation is a complex process.
Maslow’s Need Hierarchy Theory-
1. Physiological need.
2. Safety and security needs:- includes two categories-Physical Security and Economic
security.
3. Social needs affiliation/belonging need
4. Esteem needs
5. Self Actualization needs
Incentives:- It can be defined as monetary or non-monetary reward offered to the
employees for contributing more efficiently.
Types of incentives-
(i) Financial Incentives and (ii) Non-Financial Incentives
(i) Financial Incentives:-The reward or incentive which can be calculated in terms of
money. Like- Pay & allowances, Profit sharing, Co-partnership, Bonus, Commission, and
Retirement benefits, etc.
(ii) Non-Financial Incentives:- The incentives which cannot be calculated in terms of
money. Like-Status, Organisational Climate, Career advancement, Employees recognition,
Job security etc.
Leadership-It refers to influence others in a manner to do what the leader wants them to do.
Leadership Styles-
1) Autocratic or Authoritative Leadership: - Leader exercise complete control over the
subordinates. eg:- Adolf Hitler.
2) Democratic or Participative leadership:- Leader takes decisions in consultation and
participation with employees. eg:-Narayan Murthy.
3) Free lien or Laissez Faire Leadership:-This style involves complete delegation of
authority so that subordinates themselves take decision.
Communication-
It refers to transmission or exchange of ideas, views, message, information or instructions
between twoor more persons by different means.
Type of Communications:
a) Formal Communication and, b) Informal Communications
a) Formal Communication: - It refers to official communication at official peace
between the peoplewho are officially related to each other.
b) Informal Communications:-It is between different members of organisation who are
not officiallyattached to each other.
Barriers of effective communications:-
Semantic Barriers: This barrier is related with the words, signsand figures used in the
communication.
Sometimes they cannot convey the same message which they want to. It can be
(i) Badly expressed message
(ii) Symbols and words with different meaning
(iii) Faulty translation and soon
(iv) Unclarified assumptions.
Psychological or Emotional barriers:- The importance of communication depends on
the mentalcondition of both the parties . A mentally disturbed party can be a hinder in
communication. It can be
(i) Premature evaluation
(ii) Lack of attention
(iii) Distrust
(iv) Loss by transmission and poor retention.
Organizational barriers: Factors related to organisational structure, authority relationship,
rules andregulations may act as barriers to effective communication.
(i) Organizational policies
(ii) Rules and regulations
(iii) Complex organization
(iv) Organisational facilities.
Personal barriers: Certain personal factors of sender and receiver may influence the
free flow ofinformation..
a) Fear of authority,
b) Lack of confidence of superior in his subordinates
c) Lack of incentive.
d) Unwillingness to communicate.
UNIT-8: CONTROLLING
Meaning: - Comparing actual performance with standards & finding deviations if any
and takingcorrective action.
Actual Performance = Standards = No deviation
Nature of Controlling:-
a) Controlling is a goal-oriented function
b) Controlling is an all pervasive
c) Controlling is both backward looking as well forward looking function
d) Controlling is a continuous function.
Importance of controlling:-
a) Helps in achieving organisational goals
b) Judging accuracy of standards
c) Making efficient use of resources
d) Improves employees motivation
f) Ensures order and discipline
Process of Controlling:-
1. Setting performance standards: Standards are the Criteria against which actual
performance would be measured. Standards serve as bench marks. They can be set in both
quantitative as well as qualitative.
2. Measurement of actual performance: Performance should be measured in an objective
and reliable manner.
3. Comparing actual performance with standards: in this step actual performance is
compare with the set standards and deviations arebeing found.
4. Analyzing deviations: Major deviation or minor deviation and analyzing the causes of
deviation.
Critical point control: Focus only on Key Result Areas
(KRAs). Management by Exception: Concentrate only on
major deviations only.
5. Taking corrective action: When deviations go beyond the acceptable range, especially in
the important areas, it demands immediate managerial attention so that deviations do not
occur again and standards are accomplished.
6. Feedback in controlling
Relationship between Planning and Controlling:
Planning and controlling are inseparable twins of management. Planning initiates the
process of management and controllingcompletes the process. Plans are the basis of control
and without control the best laid plans may go astray. Planning is clearly a prerequisite for
controlling. It is utterly foolishto think that controlling could be accomplished without
planning.
Part - B
(BUSINESS FINANCE AND
MARKETING)
UNIT- 9: FINANCIAL
MANAGEMENT
Business Finance:-It refers to funds required for carrying out business activities.
Financial Management:- It includes decisions relating to procurement of funds,
investment of funds in long term and short term assets and distribution of earning to the
owner.
Role of Financial Management:-
1. Size and Composition of Fixed Assets.
2. Amount and Composition of Current Assets.
3. The Amount of Long-term and Short-term Funds.
4. Break up of Long Term Financing into Debt, Equity etc.
5. All Items in Profit and Loss Account.
Objective of Financial Management:-Maximize wealth of equity shareholders which
meansmaximizing the market price of Equity shares.
Financial Decisions:-
The finance functions relate to three major decisions which every finance manager has to
take:
A) Investment decision, B) Financing decision and, C) Dividend decision
Importance or Scope of Capital Budgeting Decision/ Investment Decision:-
1. Long term growth
2. Large amount of funds involved
3. Risk involved
4. Irreversible decision.
Financial Market: - This market refers to that market where financial securities are
exchanged.
Functions of Financial Market:-
a) Mobilise savings and channelize them into most productive uses
b) Facilitates Price Discovery
c) Provides Liquidity Financial Assets
d) Reduce the cost of transactions.
Types of Financial Market:-
A) Money Market and B) Capital Market
A. Money Market:-It is a Market which deals in short term securities i.e. whose
maturity period isless than 01 year.
Instruments of Money Market:-
a) Call Money:- The money borrowed or lend on demand for a short period which is
generally one day.
b) Treasury Bill (T.Bills):- It is issued by Reserve Bank of India on behalf of the
Government of India, to get short term borrowing as these are sold to bank and general
public.
c) Commercial Bills:-These bills are drawn by a business firm on another business firm.
d) Commercial Paper (C.P.):- It is an unsecured promissory note issued by public or
private sector companies with a fixed maturity period which varies from 15 days to one
year.
e) Certificate of Deposits (C.D.):- It is a time or deposit which can be sold in the
secondary market. Only a bank can issue C.D.
B. Capital Market:–Where long term securities are sold and purchased.
Types of capital market-
a) Primary Market and, b) Secondary Market.
a) Primary or new issue market Secondary Market (Stock Exchange:)-It refers to that
market in whichsecurities are sold for the first time for collecting long term capital.
Various methods of Flotation of Securities in Primary Market:-
i) Public Issue through prospectus: - Under this method, the company issues a
prospectus and invitesthe general public to purchase shares or debentures.
ii) Offer for Sale:-Under this method, Firstly the new securities are offered to an
intermediary at a fixed price. They further resell the same to the general public.
iii) Private Placement:-The Company sell securities to the institutional investors or
brokers instead ofselling them to the general public.
iv) Right Issue: – When an existing company issues new securities, first of all it
invites its existing shareholders.
v) Electronic Initial Public offer(e-IPO’s):– Under this method, companies issue their
securitiesthrough the electronic medium(i.e. internet).
b) Secondary Market:-Where already issued securities are sale and purchase,
Stock exchange: - The stock exchange is a market in which existingsecurities are bought and
sold.
Functions of stock exchange
a) Providing Liquidity and Marketability to Existing Securities
b) Pricing of Securities
c) Safety of Transactions
d) Contributes to Economic Growth
e) Spreading of Equity Cult
f) Providing Scope for Speculation.
Trading procedure in the stock exchange:-
1) Selection of broker and signing of broker: - Client agreement,submitting other
details includingPAN (mandatory).
2) Opening demat account or ‘beneficial owner’ (BO) account with depository
participant(DP)
3) Placing the order with broker and confirmation slip issued to investor by broker.
4) Match the share and Best price:-Broker will on-line match the share and best price
available.
5) Executing order: - When the price will match order will be executed
electronically and a tradeconfirmation slip will be issued to the investor.
6) Issue of Contract Note: - Within 24 hours, contract Note will be issued by the
broker containing details of the transaction. It is legally enforceable and helps to settle
disputes.
7) Delivery of shares and making payment:- Investor has to deliver the shares or pay
cash for theshares. This is called the pay- in-day.
8) Settlement Cycle: - Cash is paid or securities are delivered on pay-in-day, which is
before T+2 day.
9) On T+2 day, exchange will deliver shares or make payment to the other broker. This is
called pay-out day. The broker will makepayment to the investor within 24 hours of pay-
out day.
10) The broker can deliver directly to demat account.
D’MAT/ Demat Account:-D‘Mat Account refers to that account which is opened by the
investors withdepository participant to facilitate trading in shares.
Constituents of Depository System:-
1)The depository and, 2) The depository participants.
1. Depository:-A Depository is an institution which holds the shares of an investor in
electronic form. Itacts as bank where investors can open a securities account and deposit the
electronic form of securities. At present, there are two depository institutions in India:-
a) NSDL: – National Securities Depository Limited. &
b) CDSL – Central Depository Services Limited.
2. The Depository Participant (DP):- Depository participant is an agent of the depository.
An investor has to interact only with a DP and not with the depository for all his dealings in
share in electronic form.
Marketing Management: - It deals with planning, organizing and controlling the activities
related to the marketing of goods and services to satisfy the consumer‘s wants. Its aim to
achieve the organizational goals at minimum cost by: -Analysing and planning marketing
activities, implementing the marketing plans, setting control mechanism, marketing
management philosophy/Concept, product concept, production concept, selling concept,
marketing concept and social concept.
Marketing Management philosophies:-
1. Production Concept: - Some companies believe that it is easy to sell the products when
products areinexpensive and are easily available. So the firms following production concept
focus on lowering the cost of production by means of mass production and distribution but
the drawback of this concept is that customers don‘t always buy products which are
inexpensive and available.
Main Focus: Large-scale production to decrease the cost.
2. Product concept:- Product concept stresses on quality of production rather than quantity
of production. Product improvement is considered the key to success under it.
Main Focus: Good quality, added features in product.
3. Selling Concept:- Selling concept believes that in order to make a customer buy a product
he or she need to be convinced and customers can be convinced by undertaking some
aggressive selling and promotional efforts.
Main Focus: To sell whatever is produced by using intensive promotional technique.
4. Marketing Concept: - Marketing concept concentrates on the need of the customers.
The concept says that product should be designed and produced keeping in mind the need
of the customer and try to satisfy the need better than the competitor‘s product.
Main Focus: Customer satisfaction.
5. Societal concept: - Marketing concept is satisfying the need s of customers in the best
possible manner but then also it has attracted criticism from people who are concerned
about society and environment. They argue that companies should not blindly follow the
goal of customer satisfaction. Main Focus: Customer satisfaction with in ethical and
ecological boundaries of our society.
Functions of Marketing:-
a) Gathering and analysing market information (market research)
b) Marketing planning
c) Product planning development
d) Standardization and grading
e) Packaging and labelling
f) Branding
g) Customer support services
h) Pricing of products
i) Promotion & Selling
j) Physical distribution
k) Transportation
l) Storage and warehousing.
Marketing Mix
Marketing mix refers to the ingredients or the tools or the variables which the marketer
mixes in orderto interact with a particular market.
Elements of Marketing Mix:
Product + Price + Place + Promotion = Marketing Mix.
A. Product: - The product element of the marketing mix signifies the tangible or
intangible product offered to the customer which is the satisfier of the need. Product is a
bundle of utilities.
Product Mix:-Product mix includes all those decisions related to the product such as
quality, design,packaging of product etc.
Important components of Product Mix:-
(i) Branding: - Branding is the process of giving a name of or a sign or a symbolto a
product. Such asPolo, LG, Nike, Sony etc.
Qualities of a good brand name:-
a) Brand name should be short & Simple, so that anyone can remember, spell it.
b) Brand name should be easy to pronounce.
c) Brand name should be suggestive i.e. must suggest the utility of the product eg, Hazmola
d) Brand name should be unique and distinctive.
e) Brand name should be selected after considering its meaning in other languages and
cultures.
Advantages of branding:
a) It helps in product differentiation.
b) It helps in advertising the product.
c) It helps in differential pricing.
d) It helps in introducing a new product.
Packaging:- Packaging is a set of tasks or activities which are concerned with the
designing,production of an appropriate wrapper, container or bag for the product.
Levels of Packaging:–
a) Primary Packaging:-It refers to the product‘s immediate container, Like-toothpaste tube.
b) Secondary Packaging: - It refers to the additional package, which provides additional
layer protection to the product. Like- Card board box for toothpaste.
c) Transportation Packaging:-These are packaging‘s used for storing or transporting the
goods. Like-corrugated boxes used to shift Ruffle Lays etc.
Functions of packaging:- It helps in Product identification, Product protection,
Facilitating use of theproduct,Product promotion, Convenient to store, Rising standard of
health and sanitation etc.
Labelling: - Labelling means putting identification marks on the package. Label is the
carrier ofinformation.
Label performs following functions:-
a) It helps in describing the product and specify its contents.
b) It helps in identify the product among all products.
c) It helps in grading the product.
d) It helps in promoting sales
f) It helps in providing information required by law/legal requirement.
B. Price: - Price is the value which a buyer passes on to the seller in lieu of the product or
service provided.
Price Mix:–It includes all those factors which are considered while fixing the price of a
product.
The factors kept in mind while fixing the price of a commodity or services:-
1. Pricing objective:-What is the objective of firm as a very important factor which helps
in decidingthe price.
Apart from profit maximisation, the pricing objective of a firm may include: a) Price
Maximization, b)Obtaining market shares, c) Surviving ina competitive market etc.
2. Product cost:-The price of the product must be able to cover the total cost of product.
3. Extend of competition in the market: - A firm fixes price of a product as per the
competition faced by them.
4. Customer’s demand and utility: - When demand of the product is inelastic i.e. no or very
less substitutes are available then company can fix up high price.
5. Government and legal regulations: - To protect the interest of general public, the
government has all the right to control the prices of various products and services by
including the products in the category of essential commodities.
6. Marketing methods used:-The price of the product also gets affected by various
techniques of method of marketing used to promote the products.
C. Place:- Place refers to the set of decisions that need to be taken in order to make the
products available.
Place Mix:–It includes those activities which are related to movement of goods from the
manufactures to the consumers and thus creates place utility.
D. Promotion:-It is concerned with activities that are undertaken to communicate with
customers & distribution channels to enhance the sales of the firm.
Promotion Mix: - Promotional techniques are used to create product awareness amongst
the potential target customers and persuade them to purchase the product. Like-
advertising, personal selling, publicity and sales promotion etc.
Elements of Promotion Mix-
1-Advertising, 2-Personal Selling, 3- Sales Promotion and, 4-Public relations.
1. Advertising:- It is defined as any paid form of non-personal presentation and
promotion of ideas, goods or services by an Identified Sponsor.
Merits of Advertising:-
a) Mass Reach b) Expressiveness
c) Economical d) Enhancing customer satisfaction &
confidence.-
2. Personal Selling: - It means selling personally. This involves face-to-face interaction
between seller and buyer for the purpose of sale.
3. Sales promotion: - It refers to short term use of incentives or other promotional
activities that stimulate the customer to buy the product.
4. Public relations: - Public relations means maintaining public relations with public. By
maintainingpublic relations companies create goodwill.
UNIT- 12: CONSUMER
PROTECTION
Meaning: - Consumer protection means protecting the interest of consumes from unfair
trade practicesand exploitation from manufactures and intermediaries.
Importance of Consumer Protection:-
From Consumers point of view:-
a) Consumer Ignorance
b) Unorganised sector
c) Widespread Exploitation of consumers.
From Businessmen’s point of view:-
a) Long –term Interest of Business
b) Business Uses Society‘s Resources
c) Social Responsibilities
d) Moral/Ethical Justification
e) Government Intervention
f) Consumer is the Purpose of Business.
Rights of Consumers:-
The Consumer Protection Act provides six rights to consumers. They are as follows:
1) Right to safety:-The consumer has a right to be protected against marketing of goods and
services which are hazardous to life and property, e.g., sometimes the manufacturing defects in
pressure cookers, gas cylinders and other electrical appliances maycauseloss to life, health and propertyof
customers.
2) Right to be Informed:-According to this right the consumer has the right to get
information about the its ingredients, date of manufacture, quality, quantity, purity, standard
and price of goods or services so as to protect himself against the abusive and unfair practices.
3) Right to Choose:-The consumer has the freedom to choose from a variety of
products. The marketers should offer a wide variety of product and allow the
consumer to make a choice andchoose the product which is most suitable for
him/her.
4) Right to be Heard:- The consumer has a right to file a complaint and to be heard in
case of dissatisfaction with a good or a service. It is because of this reason that many
enlightened business firmshave set up their own consumer service and grievance cells.
5) Right to Seek Redressal:-The Consumer Protection Act provides a number of reliefs
to the consumer including replacement of the product, removal of defect in the product,
compensation paid for any loss or injury suffered by the consumer etc.
6) Right to Consumer Education:-The consumer has a right to acquire knowledge about
products. Heshould be aware about his rights and the reliefs available to him incase of a
product/service falling short of his expectations. Many consumer organisations and some
enlightened businesses are taking an active part in educating consumers in this respect.
Responsibility of consumers:-
a) Consumer must exercise his Rights.
b) Insist for Cash Memo on purchase of goods and services. This would serve as a
proof purchase made.
c) Filing Complaints for the Redressal of Genuine Grievances.
d) Consumer must be Quality-Conscious.
e) Respect the environment. Avoid waste, littering and contributing to pollution
f) Do not carried Away by Advertisement.
g) Discourage black marketing, hoarding and choose only legal gods and services.
h) Form consumer societies which could play an active part in educating consumers and
safeguardingtheir interest.