NATURE AND SIGNIFICANCE OF MANAGEMENT
Monday, 23 April 2012
Sunday, 22 April 2012
Difference between Co-ordination and Co-operation
Basis
|
Co-ordination
|
Co-operation
|
Meaning
|
Co-ordination
refers to bringing together the activities of an organisation
|
Co-operation
refers to voluntary efforts of individuals to work
together
and help each other
|
Nature
|
Co-ordination
is conscious and deliberate function
|
It
is voluntary effort of employees
|
Interdependence
|
Co-ordinations
is interdependent upon co-operation, as it is incomplete without it.
|
Co-operations
is also dependent on co-ordination as it is
meaningless
without it.
|
Relations
|
Co-ordination
is achieved through both formal and informal relations.
|
Co-operations
arises of informal relations.
|
Scope
|
It
includes co-operation and hence has a wider scope
|
It
has a narrow scope as it is towards establishing co-ordination
|
Requirement
|
Co-ordination
is essential for achievement of organizational goal, where a group of people
work together
|
Co-operation
is voluntary in nature, it arises only when people
desire
to work together.
|
Tuesday, 10 April 2012
BUSINESS STUDIES
DAY 3
1. Management is the process of working with and through other to achieve organizational objectives in a changing environment”. In the light of this statement explain briefly the characteristics of management.
2. “Without management, the resources of production. will remain resources and shall never become production”. In the light of this statement explain the importance of management in business.
3. Explain briefly the important features of management as a profession.
4. Is management an exact science ? Explain.
5. Is management becoming a profession ? Discuss in the light of the emerging trend.
6. “Co-ordination is the process of achieving unity of action among inter-dependant activities and departments of an organisation. Explain the nature of coordination in the light of this statement.
Ans. 1. The following basic characteristics of management highlight its nature :
1. Management is a goal – oriented process : An organisation has a set of basic goal which are the basic reason for its existence. These goals should be simple and clearly stated. Management unites the efforts of different individuals in the organisation towards achieving these goals. For example, a firm decides to sell 1000 TV sets in particular year. The manager will plan a course of action and organize the activities to achieve this goal.
2. Management is a group activity : An organization is a group of diverse individuals with different needs. Every member of the group has a different purpose for joining the organization. But as members of the organization they work towards achieving the common organizational goal. This requires team work and coordination of individual efforts in a common direction.
Management as a team can contribute more effectively and efficiently rather than individuals.
3. Management is an intangible force : Management cannot be seen. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos and there is coordination in the working environment.
4. Management is all pervasive : Management is virtually applied to every type of organisation, whatever its size or purpose. An auto plant, a city government, a cricket team, a hospital or a school all require management, a cricket team, a hospital or a school all require management. Moreover, what managers do inIndia, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.
5. Management is multidimensional : Management is a complex activity which has three main dimensions.
i) Management of work
ii) Management of people
iii) Management of operation
6. Management is a continuous process : Management process is a series of continuous, composite but separate functions (planning, organizing, staffing and controlling). But these functions are inter-dependent. They are simultaneously performed by all managers all the time.
7. Management is a dynamic function : Management is a dynamic function and has to adapt itself to the changing environment. An organization interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organization must change itself and its goals according to the needs of the environment.
Ans.2 The resources of production are Man, Machine, Material and Money. It is the mgt. which works in the direction of bringing these resources together and convert them into production thus achieving the organizational social and personal objectives.
Ans. 5 Yes, management is, by and large becoming a profession :-
This can be seen by referring to following emerging trend in business :-
® All big companies appoint professional managers at all levels, i.e. they appoint MBA qualified persons to perform managerial activities.
® Many India companies taken initiative to replace family members by professional managers.
® In public undertakings, management is in effect by professional managers. They appoint professional experts except in departmental undertakings such as Railways, Posts and Telegraph Department, which are controlled by ministers.
® Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management. They are sending their relatives abroad to do managerial courses.
® All over the world, management is widely taught in the universities and management institutions. There are a large number of books on management. A number of journals specialise in various aspects of management problems.
® There are various formal training institutions which provide managerial training programmes, e.g. India Institutes of Management (IIMs) at Ahmedabad, Kolkata, Bangalore, etc., Post-Graduate Departments of Management; Colleges of Management in different parts of India.
Ans. 6. Co-ordination is the process of achieving unity of action among interdependent activities & harmonious implementation of plans for the achievement of desired goals. In the light of above statement the nature of co-ordination can be summarised as :-
® Synchronisation of different actions or efforts of the various units of an organisation.
® This provides the requisite amount, quality, timing and sequence of efforts.
® This ensures that planned objectives are achieved with a minimum of conflict.
Friday, 6 April 2012
Wednesday, 4 April 2012
ACCOUNTING FOR PARTNERSHIP FIRM - BASIC CONCEPT
CHAPTER - I
Accounting for partnership firms - Fundamentals\
1 and 3 Mark Questions
Q.1 Define partnership.
Q.2 What do you understand by 'partners', 'firm' and 'firms' name?
Q.3 Write any four main features of partnership.
Q.4 What is the minimum and maximum number of partners in all partnership?
Q.5 What is the status of partnership from an accounting viewpoint?
Q.6 What is meant by partnership deed?
Q.7 State any four contents of a partnership deed.
Q.8 In the absence of a partnership deed, how are mutual relations of partners governed?
Q.9 Give any two reason in favour of having a partnership deed.
Q.10 State the provision of 'Indian partnership Act 1932’ relating to sharing of profits in absence of any provision in the partnership deed.
Q.11 Why is it important to have a partnership deed in writing?
Q.12 What do you understand by fixed capital of partners?
Q.13 What do you understand by fluctuating capital of partners?
Q.14 Give two circumstances in which the fixed capital of partners may change.
Q.15 List the items that may appear on the debit side and credit side of a partner's fluctuating capital account.
Q.16 How will you show the following in case the capitals are i) Fixed and ii) Fluctuating
. a) Additional capital introduced
b) Drawings
c) Withdrawal of capital
d) Interest on capital and
e) Interest on loan by partners?
Q.17 If the partner’s capital accounts are fixed, where will you record the following items?
i) Salary to partners
ii) Drawing by a partners
iii) Interest on capital and
iv) Share of profit earned by a partner?
Q.18 How would you calculate interest on drawings of equal amounts drawn on the Last day of every month?
Q.19 How would you calculate interest on drawing of equal amounts drawn on the last day of every month?
Q.20 How would you calculate interest on drawing of equal amount drawn in the middle of every month?
Q.21 Ramesh, a partner in the firm has advanced a loan of a Rs. 1, 00,000 to the firm and has demanded on interest @ 9% per annum. The partnership deed is silent on the matter. How will you deal with it?
Q.22 The partnership deed provides that Anjali, the partner will get Rs. 10,000 per month as salary. But, the remaining partners object to it. How will this matter be resolved?
Q.23 The partnership deed is silent on payment of salary to partners. Alok, a partner, has put a claim that since he manages the business, he should get monthly salary of Rs. 10,000. Is he entitled to the salary?
Q.24 Give two points of difference between Profit and Loss and profit and loss appropriation A/c.
ANSWERS
Ans.1 When two or more persons enter into an agreement to carry on business and share its profit and losses, it is a case of partnership. The Indian partnership Act, 1031, defines Partnership as follows:
"Partnership is the relation between persons and who have agreed to share the profits of a business carried on by all or any of them acting for all.
Ans.2 The persons who have entered in to a Partnership with one another are individually called 'Partners' and collectively 'a firm' and the name under which the business is carried is called 'the firm's name'.
Ans.3 Essential elements or main features of Partnership:
i) Two or more persons: Partnership is an association of two or more persons.
ii) Agreement: The Partnership is established by an agreement either oral or in writing.
iii) Lawful Business: A Partnership formed for the purpose of carrying a business, it must be a legal business.
iv) Profit sharing: Profit of the firm is share by the partners in an agreed ration, if the ratio is not agreed then equally. Profit also includes loss.
Ans.4 There should be at least two persons to form a Partnership. The maximum number of Partners in a firm carrying a banking business should not exceed ten and in any other business should not exceed ten and in any other business it should not exceed twenty.
Ans.5 From an accounting viewpoint, partnership is a separate business entity. From legal viewpoints, however, a Partnership, like a sole proprietorship, is not separate from the owners.
Ans.6 Partnership deed is a written agreement containing the terms and conditions agreed by the Partners.
Ans.7 i) The date of formation and the duration of the Partnership
ii) Name and address of the Partners
iii) Name of the firm.
iv) Interest on Partners capital and drawings
v) Ratio in which profit or losses shall be shared
Ans.8 In the absence of Partnership deed, mutual relations are governed by the Partnership Act, 1932.
Ans.9 i) In case of any dispute or doubt, Partnership deed is the guiding document.
ii) It can specify the duties and powers of each Partner.
Ans.10 In the absence of any provision in the Partnership deed, profit or losses are share by the Partners equally.
Ans.11 Partnership deed is important since it is a document defining relationship of among Partners thus is assistance in settlement of disputes, if any and also avoids possible disputes: it is good evidence in the court.
Ans.12 Partners' capital is ;said to be fixed when the capital of Partners remain unaltered except in the case where further capital is introduced or capital is withdrawn permanently.
Ans.13 Partners capital is said to be fluctuating when capital alters with every transaction in the capital account. For example, drawing, credit of interest, etc.
Ans.14 Two circumstances in which the fixed capital of Partners may change are:
i) When additional capital is introduced by the Partners.
ii) When a part of the capital is permanently withdrawn by the Partners.
Ans.15 On debit side: Drawing, interest on drawing, share of loss, closing credit balance of the capital.
On credit side : Opening credit balance of capital, additional capital introduced, share of profit, interest on capital, salary to a Partner, commission to a Partner.
Ans.16 i) In case, capitals are fixed:
a) On credit side of capital (b) on debit side of current A/c (c) on debit side of capital A/c (d) on credit side of current A/c (e) on credit side of loan from partner's A/c
Ans.17 i) Credit side of Partner's current A/c
ii) Debit side of Partner's current A/c
iii) Credit side of Partners current A/c
iv) Credit side of Partners current A/c
Ans.18 When a partners draws a fixed amount at the beginning of each month, interest on total drawing would be on the amount withdraw for 6.5 months at the agreed rate of interest per annum. Apply the following formula.
Interest on drawing = total drawing x rate x 6.5
100 12
100 12
Ans.19 When drawing of fixed amounts are made at regular monthly intervals on the day of every month, Interest would be charged on the amount withdrawn at the agreed rate of interest for 5.5 months. Apply the following formula. :
Interest on drawing = Total drawing x rate x 5.
100 12
100 12
Ans.20 Since the Partnership deed is silent on payment of interest; the provisions of the Partnership Act, 1932 will apply. Accordingly, Ramesh is entitled to interest @ 6% p.a.
Ans.21 The stand of remaining Partners in the Partnership deed does not stand scrutiny. Since all the Partners to the deed had agreed to Anjali's salary, it will be paid to him.
Ans.22 No, he is not entitled to the salary because it is not so, Provided in the Partnership deed and according to the Partnership act, 1932 if the Partnership deed does not provided for payment of salary to Partners, he will not be entitled to it.
Ans.23 Distinction between Profit and loss and profit and loss appropriation account:
Profit and Loss A/c :1. It is prepare to ascertain profit or loss of the business for an accounting year.
2. It is prepared by business firm.
Profit and Loss appropriation A/c :It is prepared to appropriate / distribute profit among the partners,
2.Only partnership firm or a company prepared the profit and loss appropriation a/c.
2. It is prepared by business firm.
Profit and Loss appropriation A/c :It is prepared to appropriate / distribute profit among the partners,
2.Only partnership firm or a company prepared the profit and loss appropriation a/c.
NATURE AND SIGNIFICANCE OF MANAGEMENT
DAY 1
OBJECTIVE TYPE QUESTION N ANSWER:
1. In order to be successful, an organisation must change its goals according to the needs of the environment. Which characteristic of management are highlighted in this statement ?
2. To meet the objectives of the firm, management of Angora Ltd. offers employment to physically challenged persons. Identify the organizational objectives it is trying to achieve.
3. Name the level of management involved in
(a) overseeing the activities of workers.
(b) Taking key decisions.
4. Name the level of management the following posts belong to :
i. Purchase Manager
ii. CEO
iii. Supervisory level
5. Bhavan is the manager of northern division of a large corporate house. At what level does he work in the organisation? What are her basic functions?
6. Lack of proper management results in wastage of time, money and efforts.” Do you agree with this statement? Give reasons in support of your answer.
7. “Management is regarded as a perfect science like Physics or Chemistry.” Do you agree ? Explain in brief any 5 reasons.
8. “Management is neither as precise nor as comprehensive as natural and pure sciences are”. Why? Explain.
9. Your grandfather has retired as the director of a manufacturing Co. At what level of management was he working? What functions do you think he was performing at that level? State any four functions.
10 Your uncle is employed in Deepti Ltd., as a production manager. At what level of management is he working. State any three functions that he might be performing at that level.
11. Miss Amita is associated with Fortune Ltd. She told you that her workers have good relations with her. At what level of mgt. is she ?
12. Why management is necessary where there is a group of people working in an organisation?
13. What is the main focus of the management?
14. “Management is the process of getting things done to achieve goals effectively & efficiently” what is the process in the definition?
15. Can planning prevent problems?
16. Name that intangible force which creates productive relationship among resources of an organisation.
17. Why is management an intangible force?
18. Why is management necessary for all organisation regardless of whether they are big or small?
19. A petrol pump needs to be managed as much as a school or a hospital.” Which characteristic of management has been highlighted here?
20. Mr. Donald’s, the fast food giant, made major changes in its menu to be able to survive in the Indian market. Which characteristic of mgt. is highlighted.
21. What is the main objectives of any organisation?
22. Why does mgt. help people to adapt environment changes?
23. What should a mgt. do in order to ensure harmony in the organisation ?
24. A manager applies the various theories of mgt. in his unique personalized way ? What aspect of nature of mgt. does this statement indicate
25. There is no restriction in anyone being appointed or designated as a manager of any business enterprise. What aspect of management as a profession does this statement indicate ?
26. Ankit Enterprise Ltd. manufactures tea. The production department produces more of tea than required and sales department is not able to sell the total production. What quality of mgt. do you think the Co. is lacking ?
Answers
1. It is highlighting- “Management is dynamic functioning”.
2. It is trying to achieve “Social objectives’.
3. (i) Supervisory level (ii)Top Level.
4. (i) Middle level
(ii) Top level
(iii) Supervisory level.
5. He works at “Middle Level”.
His basic functions – List functions of middle management.
6. Yes, I agree with the given statement. Mgt. is necessary in all organizations Importance of Mgt. (Points) in support of answer.
7. No, I don’t agree with the statement. Mgt. is an inexact science or soft science. It is neither as precise nor comprehensive as the natural as an pure science like Physics or chemistry. Actual mgt. is a social science which deals with human behavior in an organisation.
8. Mgt. is an inexact science or soft science. It is neither as precise nor comprehensive as the natural and pure science like Physics or Chemistry the principles of management are not-as exact as the principles of Sc., so their application and use is not universal.
9. Top level management.
Functions of top level management.
10 Middle level management
Functions of middle level management.
11. Operational management.
Functions of operational management
12. To guide their efforts towards achieving a common objective.
13. The main focus of management is that the tasks are completed and goals are achieved (effectiveness) with the least amount of resources (efficiency)
14.The process in this definition means the primary functions or activities that a manager performs to get things done. These functions are planning, organizing, staffing, directing and controlling.
15. Planning cannot prevent problems but it can predict them and prepare contingency plans to deal with them.
16. Management
17.Management is necessary so that individuals make their best contribution towards group objectives.
18. Management is necessary so that individuals make their best contribution towards group objectives.
19. Management is all pervasive.
20. Management is a dynamic function.
21. The main objective is to utilize human & material resources to the maximum possible advantage i.e. to fulfill the economic objectives of a business survival, growth and profit.
22. Mgt. helps people to adapt environmental changes so that the org. is able to maintain its competitive edge.
23. Mgt. should reconcile the personal and organizational objectives.
24.Management is an art.
25. It is a profession but not a full fledged profession like medicine or law.
26. Co-ordination.
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