Organisation of Commerce and Management.

Important Distinguish between:

1. Planning and Directing (chp 2)
Ans: SHORTCODE: (MRF LOAN)
Planning Directing
1. Meaning
Planning is deciding in advance what to do how to do Directing is the guidance inspiration, the leadership
it, when to do it and who is to do it. of those men and women constitute the real case
responsibilities of management.
2. Resources
Planning is done as per the requirement and It gives direction to the employees regarding use of
availability of resources. other resources.
3. Factors
Internal and external factors are considered in Directing is concerned directly with internal factors
Planning process. i.e. human resources.
4. Level of Management
Top management is concerned with planning the Middle level management is involved in
activities. directing the employees.
5. Order
It is the basic first function of management It follows organising and staffing for execution of
process. planning.
6. Objectives
To set goals and choosing the means to To direct the subordinates to get the things done in
achieve these goals. the right manner
7. Area of Function
It includes setting objectives by identifying the ways of It includes instructing,guiding,inspiring,
attaining the goal and selecting the best plan. communicating and motivating the human
resources.
8. Nature
It is continuous in nature. It exists in the whole life of This continuous process is necessary in the process of
organization. achievement of the goals.

2. Controlling and Coordinating (chp 2)

Ans: SHORTCODE: (MRF LOAN)
Controlling Coordinating
1. Meaning
Controlling is the process of taking steps to bring Coordination is orderly arrangement of group efforts
actual results and desired results closer together. to provide unity of action in the pursuit of common
goal.

2. Resources
It is related to all organizational resources which help It is related to human resources.
to achieve goal of organization.

3. Factors
Internal and external factors are taken into account It is harmonization of human resources.
 for taking corrective action.

4. Level of Management
Top and middle level management are responsible for It is related to all the levels of management to achieve
controlling the activities. the goal of organization.

5. Order
It is an end function of management process. It is an important element of organizing which follows
planning.

6. Objectives
To ensure that the objectives are achieved according To ensure harmony of efforts of the employees for
to the plan. smooth functioning of organization.

7. Area of Function
It includes setting up of standards, measurement, It includes integration of efforts of top level, middle
and comparison with actual performance and taking level and lower level.
corrective steps whenever necessary.
8. Nature
It is the process which starts once the actual plan is This is a continuous process related to all managerial
executed. levels.

3. Organising and Staffing (chp 2)

Ans: SHORTCODE: (MRF LOAN)
Organising Staffing
1. Meaning
Organising is the process of defining and grouping The staffing function pertains to the recruitment,
the activities of the enterprise and establishing selection, development, training and compensation
the authority relationships among them. of subordinate managers.
2. Resources
All available resources i.e. men, money, material, It is the process relating to organization of human
machine and method are arranged in a systematic resources.
manner.
3. Factors
Internal and external factors are considered in Staffing is mostly concerned with internal factors.
Arrangement of resources.
4. Level of Management
Top and middle level management is related with Middle level management is related with recruitment,
organizing the required resources. training and selection Top level is concerned with
promotion and compensation
5. Order
It is based on Planning. It follows organizing function.
6. Objectives
To identify and bring together all required To appoint right type of people at the right positions
resources. and the right time.
7. Area of Function
It includes identification and grouping of activities, It includes recruitment, selection, training,
 assigning the work and establishing the authority development and compensation of human resources.
relationship.
8. Nature
It takes place till the time all the resources are It is a continuous process as it deals with employees
collected and arranged. i.e. human resources.

4. Central Bank and Commercial Bank (chp 4)

Ans: SHORTCODE: MP LOAN
Central Bank Commercial Bank
1. Monetary Policy
The Central Bank frames the monetary and credit The Commercial banks do not frame any monetary
policy. policy.
2. Printing of Currency
The Central bank can print currency notes. The Commercial banks cannot print currency
3. Loans
The Central Bank provide loans to bankers and The Commercial banks provide loan to industry and
financial institutions. commerce
4. Ownership
It is owned and Controlled by the government of India. It can be owned by private and / or by the
government agencies.
5. Acceptance of Currency
The Central Bank does not accept deposits from The Commercial bank accept deposits from public.
public.
6. Number of Banks
There is only one Central Bank (RBI) in India. There are many commercial banks in India.

5. Life Insurance and Fire Insurance (chp 4)

Ans: SHORTCODE: MP SIT Plz
Life Insurance Fire Insurance
1. Meaning
A contract where by the insurance company A contract in which insurer promises to pay
undertakes to pay a certain sum of money either on compensation to insured if something happens
death or maturity (whichever is earlier) for a to the subject matter due to fire or related events.
consideration (premium).
2. Policy Taken By
It can be taken by an individual for his own life or for It can be taken by individual for their properties or by
his family members. businessman. For their goods, properties business
liabilities.
3. Subject Matter
In life insurance, the life of the insured is a subject In Fire insurance, the goods and assets or property of
matter. the insured is the subject matter.
4. Surrender of Policy
The policy can be surrendered before the expiry of It Cannot be Surrendered.
the term subject to certain conditions.
5. Insurable Interest
 It must exists at the time of contract. It must exist both at the time of contract and also at
the time of loss.
6. Tenure
The policy can be issued for any number of years, It is generally for a short period like one year.
even until the death of the assured.
7. Principle of Indemnity
It is not applicable as a human life cannot be valued in It is applicable as insurance company compensates for
terms of money for calculating the actual loss. the financial loss and the insured is brought back to
the same financial condition that he was before the
event.

6. Life Insurance and Marine Insurance (chp 4)

Ans: SHORTCODE: MP SIT Plz
Life Insurance Marine Insurance
1. Meaning
A contract where by the insurance company A contract where by the insurance company
undertakes to pay a certain sum of money either on undertakes to pay compensation to in insured in
death or maturity (whichever is earlier) for a case of loss to him due to dangers (perils) of the sea.
consideration (premium).
2. Policy Taken By
It can be taken by an individual for his own life or for It can be taken by exporters, importers and shipping
his family members. companies etc.
3. Subject Matter
In life insurance, the life of the insured is a subject In Marine insurance, goods in ship, cargo and freight
matter. is the subject matter.
4. Surrender of Policy
The policy can be surrendered before the expiry of It cannot be Surrendered.
the term subject to certain conditions.
5. Insurable Interest
It must exists at the time of contract. It must exist at the time of contract and also at the
time of loss.
6. Tenure
The policy can be issued for any number of years, It is generally for a short period and may range from
even until the death of the assured. one month to a year. Normally it does not
exceed one year.
7. Principle of Indemnity
It is not applicable as a human life cannot be valued in It is applicable as insurance company compensates for
terms of money for calculating the actual loss. the financial loss and the insured is brought back to
the same financial condition that he was
before the event.

7. Fire Insurance and Marine Insurance (chp 4)

Ans: SHORTCODE: MP SIT Plz
Fire Insurance Marine Insurance
1. Meaning
A contract in which insurer promises to pay A contract where by the insurance company
compensation to insured if something happens undertakes to pay compensation to in insured in
 to the subject matter due to fire or related events. case of loss to him due to dangers (perils) of the sea.
2. Policy Taken By
It can be taken by individual for their properties or by It can be taken by exporters, importers and shipping
businessman. For their goods, properties business companies etc.
liabilities.
3. Subject Matter
In Fire insurance, the goods and assets or property of In Marine insurance, goods in ship, cargo and freight
the insured is the subject matter. is the subject matter.
4. Surrender of Policy
It Cannot be Surrendered. It cannot be Surrendered.
5. Insurable Interest
It must exist both at the time of contract and also at It must exist at the time of contract and also at the
the time of loss. time of loss.
6. Tenure
It is generally for a short period like one year. It is generally for a short period and may range from
one month to a year. Normally it does not
exceed one year.
7. Principle of Indemnity
It is applicable as insurance company compensates for It is applicable as insurance company compensates for
the financial loss and the insured is brought back to the financial loss and the insured is brought back to
the same financial condition that he was before the the same financial condition that he was
event. before the event.

8. Fixed Deposit Account and Savings Account (chp 4)

Ans: SHORTCODE: MFD – NRI
Fixed Deposit Account Savings Account
1. Meaning
It is that account where a fixed sum of money is It is that account which is opened by individuals in
deposited for a fixed period. order to save a part of their income.
2. Facilities
90% of the amount of fixed deposit can be given as No overdraft facility is given.
loan.
3. Documents
The bank gives a fixed deposits receipt to the The bank gives a passbook, cheque book and pay-in-
customers. slip book to the customers.
4. Nature of account
It is for fixed period of time except when the fixed It is of continuous Nature
deposit receipt is renewed.
5. Restrictions
Amount becomes due on the expiry of the fixed The customer have certain restrictions on withdrawal
period. If withdrawn earlier, then the rate of interest
will be less than applicable.
6. Interest Rate
Interest rate is higher, longer the period, higher will Interest rate is low
be the rate of interest.
9. BPO and KPO (chp 5)
Ans: SHORTCODE: MTR-FD
BPO
1. Meaning
BPO refers to the outsourcing of non primary activities KPO is another kind of outsourcing whereby, functions
of the organisation to an external organisation to related to knowledge and information are outsourced
minimize cost and increase efficiency to third party service providers
2. Talent required in employees
BPO requires good communication skills KPO requires professional qualified workers
3. Requirement
BPO requires process expertise KPO requires knowledge expertise
4. Focus on
BPO focus on low level process. KPO focus on high level process
5. Degree of Complexity
BPO is less complex KPO is complex.

10. E-business and Traditional Business (chp 5)

Ans: SHORTCODE: USA – CARD
E-Business Traditional Business
1. Usage
It is used to save valuable time and money. It is ancient and still in usage where the digital
network is not reachable.
2. Scope
More business can be done easily without any hassles. It is difficult to perform more business in this model.
3. Accessibility
It is available round the clock It is available during the limited time
4. Customer Interaction
In E-business there is absence of face to face Face to face interaction is possible.
interaction.
5. Area Covered
E- business covers entire world and so scope is vast. Traditional business is limited to particular area so
scope is limited.
6. Risk Involved
High risk involved as there is no direct contact Less Risk involved as parties have personal
between the parties. interaction.
7. Delivery of goods.
In E-business delivery of goods takes time. In traditional business delivery of goods is instant.

11. National Commission and District Commission (chp 7)

Ans: SHORTCODE: MAP
NATIONAL COMMISSION DISTRICT COMMISSION
1. Meaning
A consumer dispute redressal forum at the National A consumer dispute redressal forum at the district
level established by the Central Government by level established by the State Government is known as
notification is known as National Commission. District Commission.
2. Member
 Not less than four and not more than such number of Not less than two and not more than such number of
members as may be prescribed. members as may be prescribed, in consultation with
the Central Government
3. Membership Tenure
The members can have the membership for a term of The members can have the membership for a term of
five years or up to the age sixty seven years and five years or upto the age sixty five years, whichever is
president upto seventy years, whichever is earlier. earlier.
4. Monetary Jurisdiction
To entertain complaints where the value of the goods To entertain com plaints where the value of the
or services paid as consideration exceeds Rs. ten goods or services paid as consideration does not
crore. exceed Rs. one crore.
5. Area covered
It covers the entire country. It covers particular district
6. Appeal
Appeal against the National Commission can be made Appeal against the District Commission can be made
to the Supreme Court. to the State Commission.
7. President
A person who is or has been a judge of the Supreme A person who is sitting or retired or qualified to be
Court, shall be appointed by the Central Government District Judge.
by notification is known as National Commission.

12. National Commission and State Commission (chp 7)

Ans: SHORTCODE: MAP
NATIONAL COMMISSION STATE COMMISSION
1. Meaning
A consumer dispute redressal forum at the National A consumer dispute redressal forum at the State level
level established by the Central Government by established by the State Government is known as
notification is known as National Commission. State Commission.
2. Member
Not less than four and not more than such number of Not less than four or not more than such number of
members as may be prescribed. members as may be prescribed in consultation with
the Central Government.
3. Membership Tenure
The members can have the membership for a term of The members can have the membership for a term of
five years or up to the age sixty seven years and five years or up to the age sixty seven, whichever is
president upto seventy years, whichever is earlier. earlier.
4. Monetary Jurisdiction
To entertain complaints where the value of the goods To entertain com plaints where the value of the
or services paid as consideration exceeds Rs. ten goods or services paid as consideration, exceeds Rs.
crore. one crore, but does not exceed Rs. ten crore.
5. Area covered
It covers the entire country. It covers particular state.
6. Appeal
Appeal against the National Commission can be made Appeal against the State Commission can be made to
to the Supreme Court. the National Commission.
7. President
A person who is or has been a judge of the Supreme A person who is sitting or retired or Judge of High
Court, shall be appointed by the Central Government Court, shall, be appointed by the State Government as
by notification is known as National Commission. the President of State Commission.