Tuesday, February 28, 2012

25th IGNOU Convocation March/April 2012


The 25th Convocation of IGNOU is tentatively scheduled to be held in March/ April 2012. Students who have completed their programmes by December 2011 Term-End Examination will be eligible for award of degree certificates in this Convocation.
The main function will be held at IGNOU headquarters, Maidan Garhi, New Delhi-110068 and simultaneously at the cities of the selected Regional Centres. Students can receive their degree certificates in person or in absentia by post by paying the requisite fee.
Information regarding Convocation will be sent in due course to eligible students.
Degrees will be issued only to the candidates on production of IGNOU Student Identity card issued by the Regional Director and to no one else including the authorised representatives on Convocation Day during permissible time period.
NOTE: Students of MBA, MCA, M.Com, BTCM etc are required to remit fees  for all degree certificates associated with the programme (Like Diplomas/ PG Diplomas/ Degrees).

Saturday, February 25, 2012

IGNOU BCA CS-06 Solved Assignment 2011



There are five questions in this assignment.  Answer all the questions. You may use illustrations and diagrams to enhance the explanations.  Please go through the guidelines regarding assignments given in the Programme Guide for the format of presentation.  Answer to each part of the question should be confined to about 300 words.


Question 1:  What is Normalization? Explain the condition under which a relation needs to be normalized to 3 NF from 2 NF with the help of   an example?                    (5 Marks)
Ans:
Normalization : Database normalization is a technique for designing relational database tables to minimize duplication of
Information and, in so doing, to safeguard the database against certain types of logical or structural problems, namely data anomalies. For example, when multiple instances of a given piece of information occur in a table, the possibility exists that these instances will not be kept consistent when the data within the table is updated, leading to a loss of data integrity. A table that is sufficiently normalized is less vulnerable to problems of this kind, because its structure reflects the basic assumptions for when multiple instances of the same information should be represented by a single
Instance only.

A relation R is in Second normal form (2NF) if
(a) R is 1NF, and
(b) All non-prime attributes are fully dependent on the candidate keys
Third normal form (3NF) requires that there are no functional dependencies of non-key attributes on something other than a candidate key.
Here an example of a relation needs to be normalized to 3 NF from 2 NF
2 NF
3NF

Module
Dept
Lecture
M1
D1
L1
M2
D1
L1
M3
D1
L2
M4
D2
L3
M5
D2
L4

Lecture
Dept
L1
D1
L2
D1
L3
D2
L4
D2

Module
lecture
M1
L1
M2
L1
M3
L2
M4
L3
M5
L4

Another example
Tabel1

 

Emp ID
Emp name
Address
Age
Date  of Birth
Dept Code
Department name
Here every Non key attribute are depend on Key attribute, But there is a Transitive dependency
 So, table 1 is not in 3 NF
Table 1.1
Emp ID
Emp name
Address
Age
Date  of Birth
Dept Code

Table 1.2
Dept Code
Department name



Question 2: Compare primary, secondary and clustering indexes. Which of these indexes are dense and which are not?                                                                             (5 Marks)
ANS:
Two Types of Indices
         Ordered index (Primary index or clustering index) – which is used to access data sorted by order of values.

Ordered Index
         Hash index (secondary index or non-clustering index) - used to access data that is distributed uniformly across a range of buckets.
Hash Index


Which of these indexes are dense and which are not.
The ordered indices are dense or not
         Dense index - an index record appears for every search-key value in the file.

figure101

         Sparse index - an index record that appears for only some of the values in the file.

      
figure106

Question 3: What is difference between B tree and B+   tree? Why a B+   tree is a better tree structure than a B tree for implementation of an indexed sequential file.   (5 Marks)

Ans:
In a B- tree you can store both keys and data in the internal/leaf nodes. But in a B+ tree you have to store the data in the leaf nodes only. The principal advantage of B+ trees over B trees is they allow you to in pack more pointers to other nodes by removing pointers to data, thus increasing the fan-out and potentially decreasing the depth of the tree

B+   tree is a better tree structure than a B tree for implementation of an indexed sequential file .
In a B+ tree, in contrast to a B-tree, all records are stored at the leaf level of the tree; only keys are
Question 4:
Consider the following employee database schema:
        
Employee ( ESSN ,ENAME , DOB , DEPT-NO , SALARY)
   Dependent (ESSN, DEPENDENT_NAME, RELATION, DOB)
   Department (DEPT_NO, DEPT_NAME, MANAGER)                            

         Perform the following queries using SQL                                                               (5 Marks)
      
(a)    Find the details of dependent for employee having name ABC.
SELECT     DEPENDENT.*
FROM         DEPENDENT INNER JOIN
                     EMPLOYEE ON DEPENDENT.ESSN = EMPLOYEE.ESSN
WHERE     (EMPLOYEE.ENAME = 'ABC') stored in interior nodes
(b)   Find the name of manager of the department in which employee  whose ESSN code is     1234 
SELECT     DEPARTMENT.MANAGER
FROM         DEPARTMENT INNER JOIN
                      EMPLOYEE ON DEPARTMENT.DEPT_NO = EMPLOYEE.DEPT_NO
WHERE     (EMPLOYEE.ESSN = '1234')
(c)    Find the name of all employees whose age is less than 18 years.   
SELECT    ENAME
FROM         EMPLOYEE
Where FLOOR (DATEDIFF (DAY, DOB, SYSDATE) / 365.25) <18

(d)   Find the DOB of the son  of  employee  having employee code ESSN 5078 
SELECT DEPENDENT.DEPENDENT_NAME,DEPENDENT.DOB, EMPLOYEE.ESSN
FROM  DEPENDENT INNER JOIN
       EMPLOYEE ON DEPENDENT.ESSN = EMPLOYEE.ESSN
WHERE     (EMPLOYEE.ESSN = '5078')



IGNOU FEG-01 Solved Assignment 2012 Foundation Course in English - 1 (FEG-01)




Answer all the questions
1 Read the passage and answer the questions that follow:
International cricket sensation Sachin Tendulkar has joined forces with UNICEF
to get Indian children to wash their hands for better health and hygiene as part of
the first ever Global Handwashing Day held on 15" October. Tendulkar was
featured in a public service announcement that was broadcast in 14 languages on
television channels across the country to build support for the campaign targeting
students in more than six million schools across India.
"Having a celebrity of this stature, who is instantly recognizable to cricket fans
not only in India but around the world, will help us mobilize millions of young
people," said Karin Hulshof, UNICEF representative in India. "Lending free-ofcharge
his image to promote handwashing with soap will undoubtedly save many
children's lives." The Indian campaign is part of a global movement uniting
millions of children in 52 countries across five continents as part of the
International Year of Sanitation 2008. Nearly half of the world's population, or
2.6 billion people, do not have access to adequate sanitation. This dire situation
has widespread implications on human health, child survival, economic
productivity and pollution of living spaces and water resources. Washing hands
with soap is one of the most cost-effective health measures to prevent diarrhea,
the second biggest killer of children in India. Proper handwashing can red=
diarrheal cases by 47 per cent and acute respiratory illness by 30 per cent.
This campaign highlights the need to wash hands with soap before meals and after
defecation. Human excreta is the essence of the sanitation challenge. One gram of
faeces can contain 10 million viruses, 1 million bacteria, 1,000 parasite cysts and
100 parasite eggs. Washing hands and using toilets properly impacts not only
health, but also education. The sanitation coverage in Indian schools is estimated
to be about 58 per cent. However, providing private and separate sanitary latrines
in schools can increase girls' enrolment by 11 per cent. Proper sanitation facilities
in schools can drastically improve the chances of a girl finishing her education.
Currently, only 34 per cent of India's girls are completing their schooling.

Q1. Say whether the following statements are true (T) or false (F) according to the
passage given above. (5)

I The year 2008 was declared as the International Ye& of Sanitation.
Solution: (T)

===================================================
ii.The public announcement on hand washing was broadcast in only Hindi and English.
Solution: (F)

===================================================

iii The target audience were rural children.
Solution: (F)

===================================================

iv Children in over 52 countries do not have access to proper sanitation.
Solution: (F)

===================================================

v Girls do not often complete their education due to inadequate toilet facilities.
Solution: (T)

===================================================


Q1 (b) Answer the following questions:
(1) Why was Sachin Tendulkar selected to drive the UNJCEF Campaign on Global Handwashing for Children?

Solution: Sachin Tendulkar was selected to drive the UNJCEF Campaign on Global Handwashing for Children because he is having celebrity of this stature, who is instantly recognizable to cricket fan not only in India but around the world, will help us mobilize millions of young people.
===================================================

(ii)Why is washing of hands with soap so important, especially for children?

Solution: Washing hands with soap is one of the most cost-effective health measures to prevent diarrhea, the second biggest killer of children in India. Proper handwashing can red=
diarrheal cases by 47 per cent and acute respiratory illness by 30 per cent.

===================================================

(iii)What effect does poor sanitation have on people's life? (2)
Solution:  Poor sanitation can ruin one’s health as One gram of faeces can contain 10 million viruses, 1 million bacteria, 1,000 parasite cysts and 100 parasite eggs. Washing hands and using toilets properly impacts not only health, but also education on people's life.
===================================================

iv When is it most essential to wash hands? Why?
Solution: Most essential to wash hands with soap is ..before meals and after
defecation
===================================================

(v)How does washing hands and using toilets properly impacts our education
system? (2)
Solution:  Providing private and separate sanitary latrines in schools can increase girls' enrolment by 11 per cent. Proper sanitation facilities in schools can drastically improve the chances of a girl finishing her education. Currently, only 34 per cent of India's girls are completing their schooling.
===================================================


Q2 Starting with one of the sentences given below continue the narrative for about
150 to 200 words.

(ii)We heard screams coming from the house. It sounded as if someone was
in terrible pain. A Girl was screaming I m so pale and Ugly. Agnes turned her head and glared at the raven. Its beak was closed, and its beady eyes gazed at her without emotion. It didn’t even give her the satisfaction of looking smug. She turned back to the mirror.She was in pain as she was very ugly and pale. Pale like an apparition. Her nose was grotesquely upturned, the nostrils two unsightly ovals in the middle of an unattractive face; irises the color of runny shit, and eyelids with no lashes; lips so thin, the color of a mild bruise.
       
“Yes, you know that,” the raven said. “You've been ugly since the day you were born. Other children ran from you, called you ‘Ugly Duckling.’ You remember?”Agnes shifted her position in front of the dresser so she could see the bird in the mirror. “Shut up!”
               
“It's not going to work, Agnes. Nothing ever will. You'll always be ugly!”
       
Again in front of her mirror, Agnes was applying lipstick. She rolled her eyes and turned to face the bird. “It'll work, this time. You watch and see!”She turned back and began teasing her hair. The show started at eight, and she didn’t want to keep her new friend waiting.
       
“You've had dates before,” the bird continued. “A few firsts, but never seconds. They only agree to go out with you because they feel sorry for you. You tried to kiss one, once, remember? What did he do?”
       
“He threw up on me.”
       
“Yes, you made him puke, you’re so ugly.”
       
“That's not why he threw up. He'd been drinking.”
       
“You'll never get one back here, you know.”
       
Agnes closed her eyes and took a deep breath.
       
“You realize you're hideous, even with all that whore-paint?”
       
She turned and threw the brush at the raven, missing it by a foot. It mocked her with its silence and stillness. This time, it would work. “Just watch and see.”
       
The woman’s name was Anna, and she was only a little late. She was blonde and petite, so pretty that Agnes could only stare at her as she rambled on about her university classes. They had met at a local coffee-house and struck up a conversation, Agnes feeling bold after a strong latte.
       
They had one thing in common: a love for gothic horror and the stories of Edgar Allan Poe, and this topic kept them talking for over an hour. Agnes had been shocked when Anna invited her to the movies; she didn’t seem to mind her appearance at all. In fact, she seemed attracted to her conversation.
       
After the movie, she felt spellbound by Anna. “I have an original copy of The Raven and Other Poems,” Agnes told her outside the theater.
       
“No way!”
       
“No, I do. Copy from 1845, the year it was first published. Would you like to see it?”
       
“You have it with you?”
       
“No, it's at my house.”
       
Anna seemed hesitant.
       
“I also have some awesome gourmet coffee and a really good stereo system. We can talk.”
       
“Yeah, okay,” Anna agreed.
       
“Poe wrote that the most sublime subject in literature is the death of a beautiful woman, the only topic worthy of poetry,” Agnes said, smiling down at Anna. She straddled the woman’s waist on her bed, caressing her cheek lovingly. “Have you heard that?”
       
“How can she answer you if you have her drugged?” the raven asked beside her.
       
Agnes turned and faced the bird. “The question was rhetorical, bird-brain. She's a literature major and would know that.”
       
Yellow light bathed her room from a lamp on the nightstand. Anna was breathing deeply, her eyes closed. Agnes lowered herself and brushed her lips against the woman's. The kiss was intoxicating.
       
“It does you no good to turn gay, either. Women find you just as ugly and pale as men.”
       
“Shut up, for once, would you? I know what I’m doing. Watch and see!”
       
“You are dumb, too. Stupid as the day is long. Brains would have been something, but you have nothing. No brains, no looks. You're a waste of a life. Hopeless.”
       
“So you say,” Agnes said calmly, enraptured by the beautiful sleeping face in front of her. “I better tie her up before she wakes.”

Anna's eyes fluttered open.
Agnes was surprised how calm she felt, how in control. The woman tried to speak, to shout, but she was gagged to the point of choking on a dirty washcloth. She tried to tug free from her bonds, but her hands and feet were secured tightly to the bedposts in carefully tied knots.Standing on Anna’s right-hand side, near the lamp, she held up a razor blade for her to see and gave an adoring smile.

Anna’s eyes went wide with fear, and she struggled further in vain.
       
“So, you're going to go through with it? This is your last chance to stop.”
     
Agnes tilted her head and looked toward the corner of the room. “I've told you repeatedly to shut up. You're supposed to be dead!”Anna turned her head to follow Agnes' gaze -- a screech of wretched horror erupted from her throat, muted by the gag.Walking to the other side of the bed, Agnes picked up the stuffed raven that sat on a shelf above her mother’s corpse. “I don’t want to hear you anymore right now.”
       
Her grossly obese mother -- strangled just that morning -- was tied to a dining room chair, her head thrown back, eyes open, toothless mouth agape. A worn and grimy nightgown clung to her ample girth-rolls like a massive tarpoleum. Agnes lowered the razor blade and squeezed her mother's cheeks, the sickening aroma inside her mouth forcing Agnes to wince and look away for a moment. She retrieved her mother's limp tongue - which was noticeably devoid of moisture - and stretched it taut, sawing it off near the back with the razor blade. She discarded the stiff, putrid organ in a small waste can and sat the stuffed raven back on the shelf. Beside her on the bed, Anna thrashed like never before, her gagged scream a continuous melody of terror.

==================================================================


3 Write a dialogue between a parent and a child in about 150 words saying why
washing of hands is essential for health. You may take the points from the
passage and add some of your own. (15)

Solution:  Child(coming from garden): Wow mom nice food (while picking french fries)


Mom: No don’t pick unless you wash your hands with dettol soap .
Child: pls mom I m hungry I wanna food
Dad : Its bad manner  son , go and wash your hands then you can have food.

Child : but why it is so essential to wash hands before having meal ?

Mom:  Before we eat, it’s much recommended to washing our hand. This is mainly because we never know any kinds of bacteria that have been living in our hand when we do our activity before. Eating as one of human activity that entering any kinds of food into our body is one of many activity that have a high risk to make many bacteria also enter our body through foods that we eat. The bacteria as one of creatures that can be seen through bare eyes, should using microscope to see bacteria, is one creature that can make a lot of illness kinds that we never expected before. Because of this condition we should wash our hand before eating to kill bacteria that living in our hands to prevent ourselves from any kind of illnesses that we never wanted before. we have to use the right soap also. We have to wash our hand using water first to make our hands wet and easy to use the soap. After all of our hand side already wet, we can use the soap to clean our hands from any kind of bacteria. Soap is one of important thing when we want to clean our hand while we washing hand. It’s mainly because soap has the killer of bacteria in our hands. Because of this, soap becomes one of important things when we washing hand. After we clean our hand using the soap, we should clean the soap trace in our hand. It’s because if we don’t clear the soap trace in our hand, it will make our foods have a very strange taste or sometimes have a taste of soap that we use for cleaning or washing our hands.

Child: Ohh I see

Dad: if you don't wash your hands frequently, you can pick up germs from other sources and then infect yourself. You're at risk every time you touch your eyes, nose, or mouth. In fact, one of the most common ways people catch colds is by rubbing their nose or their eyes after the cold virus has gotten on their hands. When kids come into contact with germs, they can unknowingly become infected simply by touching their eyes, nose, or mouth. And once they're infected, it's usually just a matter of time before the whole family comes down with the same illness.  Handwashing is one of the most important ways of controlling the spread of infections, especially those that cause diarrhoea and vomiting, and respiratory disease. The recommended

Child : Ok I got it …I m going to wash my hands and be right back !!



===================================================



4 Answer the following:
i Complete the following sentence with suitable prepositions:
We always insist payment advance. (2)
Solution:  coming soon
===================================================

ii Make this sentence into a single sentence, using the relative pronoun
(that): (1)
I applied for a job. I saw this job advertised in the newspaper.
Solution:  I applied for a job that advertised in the newspaper.

===================================================

iii Fill in the blanks using the correct form of the verb: (1)
Will you be able to find out when the first plane to Paris ?
(a) leaves (b) will leave (c) leave
Solution: Will you be able to find out when the first plane to Paris leaves
===================================================

iv Fill in the blanks with the correct article: (2)

(a) The proposal was accepted by unanimous vote.
(b) There is hourly bus service on this route.
vi Fill in the blanks with the appropriate conjunction:
(a) She had flu she did not take part in the race.
Solution: She had flu so she did not take part in the race.
========================
vii Complete the phrasal verb by inserting the correct particle: (1)
Everyone was put by his rude behavior.

viii Fill in the blanks with the correct words to complete the proverbs: (2)
(a) A…( stitch )... in time saves nine.
===================================================
(b) Cut your… (coat)…. according to your cloth.
===================================================

5 Change the following sentences into the passive voice:
.i. Do you know him?
Solution:  Does he known by you.
===================================================

11 The cook tasted the soup.
Solution:  The soup was tasted by cook.
===================================================

iii Anu answered all the questions easily.
Solution: All the question were answered by Anu.
===================================================
iv They bought stamps from the post office.
Solution: Stamps were brought by them from post office
===================================================

v You cannot park the car here.
Solution: The car cannot be part here by you
===================================================

6 Change the following sentwces into the active voice:
.1. The thief has been arrested.
Solution: The thief arrested
===================================================

11 He was punishe4 by the teacher.
Solution: The teacher punished him
===================================================

iii The children ard being interviewed by the Principal.

Solution: The principle Interviewed children.
===================================================
iv My pocket has been picked.
Solution: My pocket picked
===================================================

v America was discovered by Columbus.
Solution: Columbus discovered America
===================================================


7 Use the correct verb from the brackets to fill in the blanks: (10)
\\ A Spoilage caused by microbes, insects and other pests .....have........
(hashave) led to the search for newer, surer and safer methods of food
preservation. Preserving food by drying, fermenting, salting and smoking
......has....... (hashave) been in practice for several centuries. Canning,
refrigerating, freezing, controlled atmosphere storage and the use of
chemical preservatives and pesticides ......are....... (arefis) later inventions
which ......have.......... (hashave) contributed to the increased food supply
and food security in modem times. A recent entrant to the list of
preservation technologies ......are....... (adis) food irradiation.
B Use of neem in medicines ........are.......... (is/are) no less important. Neem
preparations ......have........... fias/have) been extensively used against a
variety of skin diseases, septic sores, and infected burns. The effect of
neem preparations on some of the dreaded viruses .......have........ (haslhave)
also been probed. Research studies in the USA ......has.......... (hasfhave)
shown that neem -leaf extracts can inhibit certain enzymes in the hepatitis-
B virus. German studies .......reveals.......... (reveallreveals) the efficacy of
neem extracts against the herpes virus. from to of on at i/n with


Fill in the blanks choosing the correct words fiom the list given below: , (6)
diary, dairy; quiet, quite; profit, prophet; patrol, petrol; desert, dessert; gait, gate
.1. Cow's milk is sold at this ..... dairy..........
11 He likes ...... quiet..........s urroundings.
iii The company has made no ...... profit......... this year.
iv The price of ...... petrol........... has gone up.
v ........ dessert.......... was served soon after the dinner.
vi Please meet me at the ..... gate
..........


Fill in the blanks with the right words from the brackets: (6)
1 A ....... notorious............. dacoit has been caught by the police.
(farnous/notorious)
ii We saw a dead body ......... floating...... down the river. (swimming/ floating)
iii The telephone was ....... invented.......... by Graham Bell.
(discoveredlinvented) ,
iv Prem is always on time. He is very.. .... punctual........... (regular/punctual)
v My brother's handwriting is very ........ illegible........... (illegible /eligible)
vi We must drink ......... clean......... water. (cleanlclear)

Fill in the blanks using the prepositions given below:(8)
.i. You must think .......of........ a good plan.
11 She spoke ............to.... me on the telephone.
 iii A beginner's paintings can't be compared.. ....with...... an experts.
iv He was accused ...........from..... stealing books.
 v This shop deals only.. ......on....... ready-made garm-- ents.
 vi The old man died ......in...... cholera.
vii Silk worms feed ........on...... mulberry trees.
viii He was upset by my refisal to accede. ......with....... his request.


IGNOU ECO-01 Solved Assignments 2012


Course Code : ECO-01
Course Title : Business Organisation
Assignment Code : ECO-01/TMA/2011-12
Assignment Coverage : All Blocks
Maximum Marks : 100
Attempt all the questions

1. Briefly explain various sources from which companies may raise long term capital.(20)
Solution: The Long-Term Finance may be Raised by the Companies from the following Sources :==

Capital Market
Capital market denotes an arrangement whereby transactions involving the procurement and supply of long-term funds takes place among individuals and various organisations. In the capital market, the companies raise funds by issuing shares and debentures of different types. When long-term capital is initially raised by new companies or by existing companies by issuing additional shares or debentures, the transactions are said to take place in the market for new capital called, as 'New Issue Market'. But, buying and selling of shares and debentures already issued by companies takes place in another type of market called as 'the Stock market'.

Individuals and institutions which contribute to the share capital of the company become its shareholders. They are also known as members of the company. Before shares are issued, the directors of the company have to decide on the following matters:-

    * The amount of capital which is to be raised by issue of shares.

    * The types of shares which will be issued.

    * The time of issuing shares.

When a company decides to issue additional shares at any time after its formation or after one year of the first allotment of shares, it is required under law that such shares must be first offered to the existing shareholders of the company. If the offer is declined by the existing shareholders, only then shares can be issued to the public. Such an issue is called 'rights issue' and these shares are known as 'right shares'. The Government controls the issue of shares and debentures under the Capital Issues (Control) Act, 1947.

Special Financial Institutions

A large number of financial institutions have been established in India for providing long-term financial assistance to industrial enterprises. There are many all-India institutions like Industrial Finance Corporation of India (IFCI); Industrial Credit and Investment Corporation of India (ICICI); Industrial Development Bank of India(IDBI) , etc. At the State level, there are State Financial Corporations (SFCs) and State Industrial Development Corporations (SIDCs). These national and state level institutions are known as 'Development Banks'. Besides the development banks, there are several other institutions called as 'Investment Companies' or 'Investment Trusts' which subscribe to the shares and debentures offered to the public by companies. These include the Life Insurance Corporation of India (LIC); General Insurance Corporation of India (GIC); Unit Trust of India (UTI) , etc.

Leasing Companies

Manufacturing companies can secure long-term funds from leasing companies. For this purpose a lease agreement is made whereby plant, machinery and fixed assets may be purchased by the leasing company and allowed to be used by the manufacturing concern for a specified period on payment of an annual rental. At the end of the period the manufacturing company may have the option of purchasing the asset at a reduced price. The lease rent includes an element of interest besides expenses and profits of the leasing company.

Foreign Sources

Funds can also be collected from foreign sources which usually consists of :-

    * Foreign Collaborators :- If approved by the Government of India, the Indian companies may secure capital from abroad through the subscription of foreign collaborator to their share capital or by way of supply of technical knowledge, patents, drawings and designs of plants or supply of machinery.

    * International Financial Institutions :- like World Bank and International Finance Corporation (IFC) provide long-term funds for the industrial development all over the world. The World Bank grants loans only to the Governments of member countries or private enterprises with guarantee of the concerned Government. IFC was set up to assist the private undertakings without the guarantee of the member countries. It also provides them risk capital.

    * Non-Resident Indians :- persons of Indian origin and nationality living abroad are also permitted to subscribe to the shares and debentures issued by the companies in India.

Retained Profits or Reinvestment of Profits

An important source of long-term finance for ongoing profitable companies is the amount of profit which is accumulated as general reserve from year to year. To the extent profits are not distributed as dividend to the shareholders, the retained amount can be reinvested for expansion or diversification of business activities. Retained profit is an internal source of finance. Hence it does not involve any cost of floatation which has to be incurred to raise finance from external sources.


=================================================================
2. “Company form of organization is the most ideal form for all types of business.” Discuss.(20)
Solution: A company is a voluntary association of persons, recognized by law, having a distinctive name, a common seal, formed to carry on business for profit, with capital divisible into transferable shares, limited liability, a corporate body and perpetual succession. An analysis of this definition will bring out the distinctive characteristics of a company.

Creature of law:
A company is a creation of law, and is sometimes called artificial person. It exists only in contemplation of law and therefore has no physical shape or form. Although invisible and intangible, as a legal person, it enjoys almost all the rights of natural person. It has a right to enter into contracts and own property. It can sue and can be sued. The legal personality is one of its distinctive features.

Distinct legal entity:
Being a creature of law, a company is a legal entity, something distinct from the persons who are its members. A shareholder is not liable for the acts of the company, even though he holds almost all of the shares. Also the shareholders cannot bind the company by their acts. They are not its agents. As the company is an artificial creature of law, distinct and separate from its members, a shareholder can both own its share and be its creditor. The life of the company is independent of the lives of its members. Even if all the members die, the company does not come to an end because of their demise.

Limited liability of members:
The limited liability is another important feature of a company. A person, by buying shares in a company, acquires an interest in the company, and is at liberty to dispose of these shares whenever he likes. If anything goes wrong with the company, his liability is limited by the nominal amount of the shares held by him. In other words, while he stands to lose the money he has invested, he cannot be called upon to pay a paisa out of his private property in order to help meet the company’s obligations.

Perpetual Succession
The incorporation process brings into being a corporate body distinct and separate from the member who constitute it. The right given to shareholders to transfer their shares without in any manner affecting the position of the company gives the company continuity. As a natural consequence of incorporation and transferability of shares, the company has perpetual succession or interrupted existence. As we have noted above, the life of the company being independent of the lives of its member, its life expectancy is not limited to that of various founders. Members may come and members may go, but the company goes on uninterrupted (until, of course, wound up according to law). The law creates the company and the law brings it to an end.

Common Seal
The law requires every company to have a seal with its name engraved on it. As the company has no physical form, it cannot sign its name of a contract. Therefore, originally all documents and contracts required the affixing of the seal. But now most of the transactions are signed by the directors who act as its agents. When it is affixed on nay document, two directors must witness its affixation.

Divorce between Ownership and Management
The personality of the company is separate and distinct from those humans who compose it-the shareholders. Therefore, the shareholders cannot bind the company by their acts. Since the investors of capital are a heterogeneous group of people residing far and wide, they cannot manage the affairs of the company. They leave this task to their representatives-the Board of Directors. This characteristics of a company militates against the Golden Rule of Capitalism, which will be discussed later
The chief implication of the above analytical description of the company mat be summarized as follows:
1.         It is a voluntary association
2.         Of mutually agreeing persons, natural and legal;
3.         It is an autonomous legal unit,
4.         Distinct from its associating members
5.         In name, in the duration of its life, and its liability to creditors;
6.         It exists because the State has by statute enabled to exist.
In all respects company organizations differs radically from a partnership business.

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3. Distinguish between the following:
(a) Primary market and Secondary market
Solution: The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Primary markets create long term instruments through which corporate entities borrow from capital market.
The secondary market, also called aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. Another frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac. The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feedstock, but a "second" or "third" market has developed for use in ethanol production).With primary issuances of securities or financial instruments, or the primary market, investors purchase these securities directly from issuers such as corporations issuing shares in an IPO or private placement, or directly from the federal government in the case of treasuries. After the initial issuance, investors can purchase from other investors in the secondary market.

The secondary market for a variety of assets can vary from loans to stocks, from fragmented to centralized, and from illiquid to very liquid. The major stock exchanges are the most visible example of liquid secondary markets - in this case, for stocks of publicly traded companies. Exchanges such as the New York Stock Exchange, Nasdaq and the American Stock Exchange provide a centralized, liquid secondary market for the investors who own stocks that trade on those exchanges. Most bonds and structured products trade “over the counter,” or by phoning the bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan Exchange.

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(b) Public limited company and Co-operative organization (2 ×10)
Solution: A public limited company (legally abbreviated to plc with or without full stops) is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions. It can be either an unlisted or listed company on the stock exchanges. However, certain public limited companies (mostly nationalised concerns) incorporated under special legislation are exempted from bearing any of the identifying suffixes. Some companies in Finland, referred to as "Osakeyhtiö (julkinen)" in Finnish, are called "plc"s in English, which is nothing more but a direct translation of the fact that an "Oyj" is a company listed on the stock exchange

A cooperative (also co-operative or co-op) is a business organization owned and operated by a group of individuals for their mutual benefit.[1] A cooperative is defined by the International Cooperative Alliance's Statement on the Cooperative Identity as "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprise".[2] A cooperative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there. Various aspects regarding cooperative enterprise are the focus of study in the field of cooperative economics.

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4. Write short notes on the following:
(a) Listing of a security on a stock exchange
Solution: A company, desirous of listing its securities on the Exchange, shall be required to  file an application, in the prescribed form, with the Exchange before issue of Prospectus by the company, where the securities are issued by way of a prospectus or before issue of 'Offer for Sale', where the securities are issued by  way of an offer for sale.  The company shall be responsible to follow all the requirements specified in the Companies Act, the listing norms issued by SEBI from time to time and such other conditions, requirements and norms that may be in force from time to time and included hereafter in these Bye-laws and Regulations to make the security eligible to be listed and for continuous listing on  the Exchange.
The Exchange may grant approval to the issuer for any security sought to be listed on the Exchange on completion of the listing conditions, requirements and norms by the issuer, as may be specified by the Exchange from time to time. Such security shall be called listed security.

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(b) Entrepreneurship and characteristics of an entrepreneur(2 ×10)
Solution: Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity.

Characteristics of an entrepreneur:

   1. Discipline: Plenty of business experts claim that you can’t get anywhere as an entrepreneur without vision or creativity, but that’s simply not the truth. Instead, the one quality that no entrepreneur can be successful without is discipline. To build an idea into a business, you have to have the discipline to spend time slogging through the least fun parts of running a business (like the bookkeeping), rather than taking that time to do something fun. When you’re the boss, there’s no one to keep you at work except yourself — and there’s no short-term consequences for skipping out early. Sure, if an entrepreneur plays hooky enough he knows that the business just won’t happen, but it’s very hard to convince someone that ‘just this once’ won’t hurt (and to keep ‘just this once’ from becoming a daily occurrence).
   2. Calm: Things go wrong when you run your own business. Most entrepreneurs go through crises with their businesses — and more than a few wind up with outright failures on their hands. But when you’re responsible for a business, you have to be able to keep calm in any situation. Any other reaction — whether you lose your temper or get flustered — compounds the problem. Instead, a good entrepreneur must have the ability to keep his cool in an emergency or crisis. It may not make the problem easier to solve, but it certainly won’t make it harder. If an entrepreneur can handle failure without frustration or anger, he can move past it to find success.
   3. Attention to Detail: Restricting your attention to the big picture can be even more problematic than ‘sweating the small stuff.’ As an entrepreneur, unless venture capital has magically dropped out of the sky, a small expense can be a killer. It’s attention to detail that can make a small business successful when it has competition and it’s attention to detail that can keep costs down. Attention to detail can be difficult to maintain — going over ledgers can be tedious even when you aren’t trying to pay close attention — but keeping your eye on a long-term vision is just asking for a problem to sneak in under a radar. After a business grows, an entrepreneur might be able to hire someone to worry about the details. In the beginning, though, only one person can take responsibility for the details.
   4. Risk Tolerance: No entrepreneur has a sure thing, no matter how much money he stands to earn on a given product. Even if a product tests well, the market can change, the warehouse can burn down and a whole slew of other misfortune can befall a small business. It’s absolutely risky to run a business of your own and while you can get some insurance, it’s not like most investment options. Even worse, if something does go wrong, it’s the entrepreneur’s responsibility — no matter the actual cause. In order to deal with all of that without developing an ulcer, you have to have a good tolerance for risk. You don’t need to channel your inner frat boy and take on absolutely stupid risks, but you need to know just how much you can afford to risk — and get a good idea of how likely you are to lose it. If the numbers make you uncomfortable, the risk is too great. An entrepreneur has to be willing to accept pretty big risks, with some level of comfort.
   5. Balance: You can take any characteristic too far. There’s a point at which attention to detail can become obsession or calm can become unemotional response. As an entrepreneur, you have to be able to balance your characteristics, getting the most of them without going over the edge. But balance for an entrepreneur goes far beyond keeping your characteristics in check, though. Just as an entrepreneur doesn’t have a boss to keep him at work when necessary, he doesn’t have one to send him home when he’s done. If you are working for yourself, you have to decide how to balance your work and home life — and if you have a day job to add into the equation, balance just gets more complicated.

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5. Comment very briefly on the following statements:
(a) There is no element of risk in business.
Solution: There is element of risk in business, following are types of risk occur in Business=

Strategic Risk
Strategic risks result directly from operating within a specific industry at a specific time. So shifts in consumer preferences or emerging technologies that make your product-line obsolete--eight-track, anyone--or other drastic market forces can put your company in danger. To counteract strategic risks, you’ll need to put measures in place to constantly solicit feedback so changes will be detected early.

Compliance Risk
Risks associated with compliance are those subject to legislative or bureaucratic rule and regulations, or those associated with best practices for investment purposes. These can include employee protection regulations like those imposed by the Occupational Safety and Health Administration (OSHA), or environmental concerns like those covered by the Environmental Protection Agency (EPA) or even state and local agencies.

Financial Risk
Direct financial risks have to do with how your business handles money. That is, which customers do you extend credit to and for how long? What is your debt load? Does most of your income come from one or two clients who might not be able to pay? Financial risks also take into account interest rates and if you do international business, foreign exchange rates.

Operational Risks
Operational risks result from internal failures. That is, your business’s internal processes, people or systems fail unexpectedly. Therefore, unlike a strategic risk or a financial risk, there is no return on operational risks. Operational risks can also result from unforeseen external events such as transportation systems breaking down, or a supplier failing to deliver goods.

Reputational Risk
Loss of a company’s reputation or community standing might result from product failures, lawsuits or negative publicity. Reputations take time to build but can be lost in a day. In this era of social networking, a negative Twitter posting by a customer can reduce earnings overnight. According to Matt McGee, a search engine optimization consultant, “One negative blog post or product review can spread online in a flash and change the direction of a company.”

Other Risks
Other risks are more difficult to categorize. They include risks from the environment, such as natural disasters. Difficulties in maintaining a trained staff that has up-to-date skills to operate your business is sometimes called employee risk management. Health and safety risks not covered by OSHA or state agencies fall into this category as do political and economic instability in countries you import from or export to.

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(b) Loans are sanctioned for short term only.
Solution: Loans are sanctioned not only for short term but also for long term finance requirement:

Long-term bank loans are always supported by a company's collateral, usually in the form of the company's assets. The loan contracts usually contain restrictive covenants detailing what the company can and cannot do financially during the term of the loan. For example, the bank may specify that the company cannot take on more debt during the life of the long-term loan. Long-term loans are usually repaid by the company's cash flow over the life of the loan or by a certain percentage of profits that are set aside for this purpose.
The Purpose of Long-Term Loans

Businesses should generally follow the rule of tying the length of their financing to the life of the asset they are financing. So, if a business needs to make a major capital improvement, such as purchasing a piece of equipment for their manufacturing process that will last 10 years, a long-term business loan would be the appropriate type of financing. A short-term business loan would not be appropriate in this case.If a business needs to buy capital equipment, buildings, other businesses, or undertake construction projects, a long-term loan is the way to go.
Obtaining a Long-Term Business Loan

Long-term business loans are difficult for start-up businesses to obtain. Usually, only established businesses with some years of financial success are approved for long-term bank loans. The business has to produce their business plan and several years of historical financial statements in order to secure a long-term loan. In addition, it has to prepare forecasted financial statements to prove to it can repay the loan. Before a small business seeks a long-term loan, they should always compare the cost of the loan with the cost of leasing the asset they are looking to finance.
The interest rates on a long-term loan are usually a few points lower than the interest rates on a short-term loan in a normal economy. If you are aware of the prime rate of interest, you can add a few points to that and come up with something close to the interest rate the bank will charge on your loan. Those few points will reflect how risky they feel your company is. The riskier your company, the more points they will add to the prime rate of interest. In assessing the risk of your company, banks will look at the 5C's of creditworthiness of your company.

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(c) There is no difference between the money market and capital market.
Solution: There is aot difference between the money market and capital market. Here it is :

The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called "paper." This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity. The core of the money market consists of interbank lending--banks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments. These instruments are often benchmarked to (i.e. priced by reference to) the London Interbank Offered Rate (LIBOR) for the appropriate term and currency. Finance companies, such as GMAC, typically fund themselves by issuing large amounts of asset-backed commercial paper (ABCP) which is secured by the pledge of eligible assets into an ABCP conduit. Examples of eligible assets include auto loans, credit card receivables, residential/commercial mortgage loans, mortgage-backed securities and similar financial assets. Certain large corporations with strong credit ratings, such as General Electric, issue commercial paper on their own credit. Other large corporations arrange for banks to issue commercial paper on their behalf via commercial paper lines.

A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year,[1][dead link] as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Money markets and capital markets are parts of financial markets. Financial regulators, such as the UK's Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere

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(d) All the business risks are insurable.(4 ×5)
Solution: When you have a business, there are various risks involved that could result in the failure of your business. However, not all the risks can be insured.

Factors determining uninsurable risk

    * A risk is uninsurable when an insurance company cannot calculate the probability of the risk and therefore cannot work out a premium that the business must pay. For example, you cannot take out insurance against possible failure of your business.
    * Risk is too widespread, for example, when there is a war in the country.
    * When the loss is incurred due to your own deliberate actions, it cannot be insured. If, for example, you have financial problems in your business and decide to set fire to your business in order to get a cash payout from insurance, this will be a void claim.
    * You cannot insure a business for:
          o price fluctuations from the time the order for goods is placed and the delivery of the goods
          o different price levels at different places
          o new inventions that replace old technology, eg. in the IT industry
          o nuclear weapons or war
          o changes in fashions when goods become obsolete