Earlyface

COMMERCE ADVANCE
NUMBER ONE
Legal marketing refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The three levels of the environment are:
Micro (internal) environment small forces within the company that affect its ability to serve its customers.
Internal environment can be controlled, however, it can't influence an external environment.
Macro (external) environment larger societal forces that affect the microenvironment.
NUMBER TWO
advertising
marketing
consumer behavior
marketing communications.
NUMBER THREE
Air transport is the second fastest method of transport, after space travel. Commercial jets reach speeds of up to 955 kilometres per hour (593 mph) and a considerably higher ground speed if there is a jet stream tailwind, while piston-powered general aviation aircraft may reach up to 555 kilometres per hour (345 mph) or more. This celerity comes with higher cost and energy use, and aviation's impacts to the environment and particularly the global climate require consideration when comparing modes of transportation.
Land transport covers all land-based transportation systems that provide for the movement of people, goods and services. Land transport plays a vital role in linking communities to each other. Land transport is a key factor in urban planning. It consists of 2 kinds, rail and road.
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail track, known as a railway or railroad. The rails are anchored perpendicular to railroad train consists of one or more connected vehicles that run on the rails. Propulsion is commonly provided by a locomotive, that hauls a series of unpowered cars, that can carry passengers or freight.
Water transport is the process of transport that a watercraft, such as a barge, boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a boat or other vessel can successfully pass through a waterway it is known as a navigable waterway.

NUMBER FOUR
 Accessibility – This primarily deals with the ease of getting.boarding a vehicle. If a mode is not easily accessible then it loses its usefulness because of its unavailability in a certain condition.
 Cost/fare of ticket or cost of service – Considering large number of trips taking place for different purposes and a modern capitalist economy, cost becomes one of the single most important determining factor. It can also be linked to affordability of the user. This factor is one of the most dynamic as the willingness to pay changes on the basis or urgency and need to travel/transport.
 Fuel efficiency/ carbon emission – With the growing environmental concerns many people and companies prefer to chose a option with smaller carbon footprint. Some people prefer electric vehicle solely because of the green label associated with them. Fuel efficiency is closely linked with carbon emission while doing a comparative study, getting more output from same quantity of fuel is always desirable.
 Speed – This factor is another most important and deterministic factor depending upon the situation. Fastest mode may seem to be best option but cost associated with it makes it less lucrative, a cheap mode might result in delay and the purpose of whole trip may be defeated. In cases of emergency speed gains much more significance as compared to day to day trips.
 Capacity/ Carrying Capacity – This is another important factor especially for logistic companies, it becomes important in case of travelling in a group. While going on a trip with your complete class you cannot expect to take multiple vehicles because of safety and security concerns,a vehicle with more carrying capacity will be preferred. In case of transporting goods the concept of scale of economies is best exploited for economic profit while dealing with bulk orders.
 Integration with other modes – For long trips or trips which requires change of mode this factors becomes most significant for completion of the trip. In case the selected mode is not integrated with other modes than the trip will never get completed. In some cases to overcome the problem of integration a heavy cost will be incurred to complete the required trip.
 Reliability of the vehicle/mode – The chosen mode must be reliable. All factors will turn out to be useless if the vehicle develops some fault or is prone to develop fault. If the mode is not reliable than it will result in loss of both time and money. Reliability again becomes important on the basis of situation.
 Comfort – This factor is at times ignored while some makes it priority depending upon the affordability. This is essential in case of travelling and ignored in case of transporting goods. Humans undertakes the trip for various purpose like work, leisure journey, picnic, shopping and thus always prefer comfort. Those who can afford to pay more are expected to get more comfort while some prioritize cost over comfort depending on their personal decision.
Safety Considering the increased cases of accidents safety becomes another important factor. Anyone will wish to ensure maximum available safety for their loved ones. In case of logistics also safety matters a lot especially while dealing with fragile material.



NUMBER FIVE
(i) Buying and Assembling:
The wholesaler purchases goods in large quantities from different manufacturers and assembles them at one place and stores them in his warehouse and resell to the retailers. 
(ii) Warehousing:
By preserving the goods received from different manufacturers in stores, the wholesaler performs the function of warehousing. The storage of goods is needed on account of time lag between production and consumption of goods.
(iii) Grading and Packaging:
The assembled goods are graded in accordance with their quality and packed in different containers before supplying to the retailers. In this manner, the wholesaler performs important marketing functions of grading and packing. 
(iv) Transportation:
The wholesalers purchase goods from manufacturers and carry them to his godowns and then supply the same to the retailers. He may employ his own vans or hire vehicles for carrying the goods on account of bulk purchases. They can avail of economies in freight. 
NUMBER SIX
1. Indigenous Bankers: 
Private money-leaders and other country bankers used to be the only sources of finance prior to the establishment of commercial banks. They used to charge very high rates of interest and exploited the customers to the largest extent possible. Now-a-days with the development of commercial banks they have lost their monopoly. But even today some business houses have to depend upon indigenous bankers for obtaining loans to meet their working capital requirements.
2. Trade Credit: 
Trade credit refers to the credit extended by the suppliers of goods in the normal course of business. As present day commerce is built upon credit, the trade credit arrangement of a firm with its suppliers is an important source of short-term finance. The credit-worthiness of a firm and the confidence of its suppliers are the main basis of securing trade credit.
It is mostly granted on an open account basis whereby supplier sends goods to the buyer for the payment to be received in future as per terms of the sales invoice. It may also take the form of bills payable whereby the buyer signs a bill of exchange payable on a specified future date.
When a firm delays the payment beyond the due date as per the terms of sales invoice, it is called stretching accounts payable. A firm may generate additional short-term finances by stretching accounts payable, but it may have to pay penal interest charges as well as to forgo cash discount.
If a firm delays the payment frequently, it adversely affects the creditworthiness of the firm and it may not be allowed such credit facilities in future.

NUMBER 7
In business, bad debt is the portion of a loan or portfolio of loans a lender considers to be uncollectable. In personal finance, bad debt generally refers to high-interest consumer debt.
For example, let's say Company XYZ manufactures bicycles and sells them through retail stores. Once the retailer receives the bicycles it has 90 days to pay Company XYZ. Company XYZ records the amount due as "accounts receivable" on the balance sheet and recognizes the revenue. However, as the 90 day due date passes, Company XYZ realizes the retailer is not ever going to make its payment.
Once it determines that it's a bad debt and won't be repaid, XYZ must make adjustments to its financial statements. Under accrual accounting, since revenue was already credited for the sale of the bicycles, Company XYZ must adjust its income statement for the bad debt. Therefore, Company XYZ has accounts for both allowance for doubtful accounts (ADA) and bad debt expense, which reduces the amount of net income reported by Company XYZ.
Companies have bad debt expense accounts because it is inevitable that some customers won't pay for the goods and/or services provided, usually occurs because the debtor declares bankruptcy.
For individuals, bad debt refers to debt that is not beneficial in the long run. While a mortgage is a form of debt, it is not considered bad debt, because the borrower has the potential to actually profit from an increase in their home's value. However, credit card debt and other forms of consumer debt are called bad debts, because they are debts taken on for consumption. Consumer goods almost always go down in value over time, so it's common to owe more on a credit card than the purchased goods are actually worth.
NUMBER 8
is an agreement between the purchaser and the seller who owns the goods, where the purchaser agree upon to pay the seller the sum owed for purchasing the goods, in installments or in percentage over a period of time.
There are two parties in a hire purchase contract
The intending seller
The intending purchaser or the hirer.
NUMBER 9
Market aggregation" is defined as the marketing of standardized goods and services to a large population of people that have similar needs, according to Inc. Another name for market aggregation is "mass marketing," a strategy that treats all customers as a single group that is handled homogeneously. Market aggregation is one end of the marketing spectrum that ranges from offering one product to many people versus a different product designed specifically for one person. Inc. reveals the disadvantages to mass marketing include lack of product diversity and inability to identify needs of specific groups of customers.
NUMBER 11
1.
The IMF assists member nations in several different capacities. If a country has a balance of payments deficit, the IMF can step in to fill the gap. It serves as a council and adviser to countries attempting a new economic policy. It also publishes papers on new economic topics.
2.
Its most important function is its ability to provide loans to member nations in need of a bailout. The IMF can attach conditions to these loans, including prescribed economic policies with which borrowing governments must comply.
NUMBER 11B
Governance Structure
A major challenge faced by IMF is directly related to governance of the organisation in practical levels. It has been argued that international organisations such as IMF face the problem of multiple principals to a much larger extent than public and private enterprises. They are controlled by many governments governments that often do not agree on what the organisation should do In other words, there are often disagreements amongst governments in control of IMF in terms of the aims and objectives to be achieved by IMF and the manner in which they need to be achieved and this halts the performance of the organisation to a great extent. The major downsizes associated with IMF governance structure can be best evaluated by referring to four dimensions: effectiveness, efficiency, accountability, and voice.
 
2 Increasing Level of Politicisation
Increasing level of politicisation of IMF can be specified as an additional issue that is proving to be obstruction in achievement of core aims and objectives of the organisation. It has been argued that IMF lending is not a technocratic process; rather, the Fund is a highly political institution whose policies depend on the interests of not only its largest shareholders but also its bureaucrats, both of whom exercise partial incomplete control over IMF policymaking (Copelovich, 2010, p.6).
To put it simply, rather than dealing with its aims and objectives in a direct and timely manner, IMF is being hostage to bureaucracy and geopolitical ambitions of specific countries.
The USA is considered to be the most powerful member of IMF with exclusive privileges that include powerful institutional linkages between the IMF, US Treasury Department and Congress, the ability to veto IMF decisions and modify its budget and quota (Breen, 2008), and there is a popular viewpoint that this position is taken advantage of by US government for political purposes.
Moreover, high level of politicisation of IMF is proving to have detrimental impact on the organisational image of IMF, especially amongst developing countries and newly emerging economic superpowers.
3 Leadership Challenges
A substantial challenge faced by IMF Managing Director is to be decisive and courageous in terms of facing European leaders and communicating to them the current state of global economic situation and policy changes and other measures that need to be implemented in order to deal with these issues.
A recent article in Financial Times shifts attention to this issue by arguing that IMF has challenged Berlins game plan for pulling the eurozone out of its crisis by advocating a series of short-term fixes that the German government has resisted (Specifically, stance taken by IMF chief, Christine Lagarde has been praised for being courageous to challenge German chancellor Angela Merkel  advocating the use of eurozones 500 billion EURO bailout fund to recapitalise banks directly rather than doing it through corresponding governments.
Nevertheless, the leadership challenge is greater for the current IMF Managing Director Christine Lagarde due the numerous scandals associated with the former head of organisation Dominique Strauss-Kahn. Specifically, Mr. Strauss-Kahn has been forced to quit as the head of the IMF after he was accused of **** attempt of a chambermaid at a New York hotel Although this specific case against Strauss-Kahn has been subsequently suspended, additional accusations of similar nature emerged with negative implications on the image of IMF in general, and the bargaining power of the next Managing Director in dealing with heads of member states.
.4 Performance Evaluation Difficulties
Another difficulty associated with IMF can be specified as challenges of evaluating its performance In other words, IMF aims to achieve a wide range of aims and objectives such as promoting international monetary cooperation and exchange stability, facilitating the expansion and balanced growth of international trade etc. and measuring IMF performance in contributing to the achievement of such a variety of aims presents substantial challenges in practical levels.
IMF established Independent Evaluation Office (IEO) in July 2001 and the office issues regular reports evaluating various aspects of IMF performance in an occasional manner.
IEO conducts its evaluations on the basis of multiple surveys involving organisations governing documents, its historical record, and surveys involving monetary and fiscal authorities of member countries, members of Board, IMF senior level management, and external specialist
However, although IEO is being positioned as independent there is a great deal of doubt about the quality and the level of objectivity of IEO performance evaluations of IMF, taking into account that this evaluation office is governed and financed directly by IMF.
Therefore, due to the absence of specific set of performance criteria agreed by IMF stakeholders in general, members in particular, IMF performance evaluation in an objective manner remains a considerable challenge yet to be addressed.
NUMBER 12
Essential Elements of a Valid Contract. An agreement must have the following essential elements to become a valid contract:
Offer and acceptance. ... 
Mutual consent of parties. ... 
Intention to create legal obligation. ... 
Free consent of parties. ... 
Parties must be competent to contract. ... 
Lawful object. ... 
Lawful consideration.
12B
NUMBER 15
Mortgage bank is a bank that specializes in originating and/or servicing mortgage loans. In the US a mortgage bank is a state-licensed banking entity that makes mortgage loans directly to consumers. The difference between a mortgage banker and a mortgage broker is that the mortgage banker funds loans with its own capital.
A merchant bank is historically a bank dealing in commercial loans and investment is a financial institution that engages in underwriting and business loans, catering primarily to the needs of large enterprises and high net worth individuals. In the British market, the term merchant bank refers to an investment bank.
Development Bank Financial institutions dedicated to fund new and upcoming businesses and economic development projects by providing equity capital and/or loan capital.
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'Commercial Bank'
A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans, and offers basic financial products like certificates of deposit and savings accounts to individuals and small businesses.
Number 16b CHOOSE ANY FIVE.
1. Accepting deposits
2. Giving loans
3. Overdraft
4. Discounting of Bills of Exchange
5. Investment of Funds
6. Agency Functions
7. Miscellaneous Functions
1. Accepting Deposits:
The most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks.
For example, fixed and low income group people deposit their savings in small amounts from the points of view of security, income and saving promotion. On the other hand, traders and businessmen deposit their savings in the banks for the convenience of payment.
Therefore, keeping the needs and interests of various sections of society, banks formulate various deposit schemes. Generally, there ire three types of deposits which are as follows:
(i) Current Deposits:
The depositors of such deposits can withdraw and deposit money whenever they desire. Since banks have to keep the deposited amount of such accounts in cash always, they carry either no interest or very low rate of interest. These deposits are called as Demand Deposits because these can be demanded or withdrawn by the depositors at any time they want.
Such deposit accounts are highly useful for traders and big business firms because they have to make payments and accept payments many times in a day.
(ii) Fixed Deposits:
These are the deposits which are deposited for a definite period of time. This period is generally not less than one year and, therefore, these are called as long term deposits. These deposits cannot be withdrawn before the expiry of the stipulated time and, therefore, these are also called as time deposits.
These deposits generally carry a higher rate of interest because banks can use these deposits for a definite time without having the fear of being withdrawn.
(iii) Saving Deposits:
In such deposits, money upto a certain limit can be deposited and withdrawn once or twice in a week. On such deposits, the rate of interest is very less. As is evident from the name of such deposits their main objective is to mobilise small savings in the form of deposits. These deposits are generally done by salaried people and the people who have fixed and less income.
2. Giving Loans:
The second important function of commercial banks is to advance loans to its customers. Banks charge interest from the borrowers and this is the main source of their income.
Banks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the accounts of borrowers. In other words, they create loans out of deposits and deposits out of loans. This is called as credit creation by commercial banks.
Modern banks give mostly secured loans for productive purposes. In other words, at the time of advancing loans, they demand proper security or collateral. Generally, the value of security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refund of the loan.
At limes, banks give loan on the basis of personal security also. Therefore, such loans are called as unsecured loan. Banks generally give following types of loans and advances:
(i) Cash Credit:
In this type of credit scheme, banks advance loans to its customers on the basis of bonds, inventories and other approved securities. Under this scheme, banks enter into an agreement with its customers to which money can be withdrawn many times during a year. Under this set up banks open accounts of their customers and deposit the loan money. With this type of loan, credit is created.
(iii) Demand loans:
These are such loans that can be recalled on demand by the banks. The entire loan amount is paid in lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.
(iv) Short-term loan:
These loans may be given as personal loans, loans to finance working capital or as priority sector advances. These are made against some security and entire loan amount is transferred to the loan account of the borrower.
3. Over-Draft:
Banks advance loans to its customers upto a certain amount through over-drafts, if there are no deposits in the current account. For this banks demand a security from the customers and charge very high rate of interest.
4. Discounting of Bills of Exchange:
This is the most prevalent and important method of advancing loans to the traders for short-term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. In this way, businessmen get loans on the basis of their bills of exchange before the time of their maturity.
5. Investment of Funds:
The banks invest their surplus funds in three types of securitiesGovernmen t securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc.
Other securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks units of UTI, shares of Regional Rural banks etc.
6. Agency Functions:
Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:
(i) Banks collect cheques, drafts, bills of exchange and dividends of the shares for their customers.
(ii) Banks make payment for their clients and at times accept the bills of exchange: of their customers for which payment is made at the fixed time.
(iii) Banks pay insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest etc. as per directions.
(iv) Banks purchase and sell securities, shares and debentures on behalf of their customers.
(v) Banks arrange to send money from one place to another for the convenience of their customers.
7. Miscellaneous Functions:
Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:
(i) Banks make arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, legal documents etc.
(ii) Banks give reference for their customers.
(iii) Banks collect necessary and useful statistics relating to trade and industry.
(iv) For facilitating foreign trade, banks undertake to sell and purchase foreign exchange.
(v) Banks advise their clients relating to investment decisions as specialist
(vi) Bank does the under-writing of shares and debentures also.
(vii) Banks issue letters of credit.
(viii) During natural calamities, banks are highly useful in mobilizing funds and donations.
(ix) Banks provide loans for consumer durables like Car, Air-conditioner, and Fridge etc.
NUMBER 16B
Payments in international trade are generally made through bills of exchange and bankers drafts.

NUMBER 18
1. Watch What You Say and Do First of all, when it comes to your business image, owners and their employees should avoid making any public announcements or conducting any business that might be considered questionable. This means avoiding things like libelous or potentially slanderous statements, but it also means not doing business with unscrupulous individuals. You may not think it's a problem working for a group of individuals who are known for shoddy business practices - because you know your company's ethics are above reproach - but if they take a hit, your company's name may be linked to them in the fallout.
2. Hire a Competent Attorney Business owners should interview attorneys when they first start up, in order to have a ready legal contact. You may need this person to advise you before you act or on how to react when you've been sued. 
Owners should also attempt to secure an attorney that is familiar with local laws and customs in the area in which the business operates. Care should also be taken to retain an attorney with expertise in a particular field if necessary. If your company is anticipating legal challenges from the Internal Revenue Service (IRS) or taxation state department it makes sense to hire a tax attorney. 
3. Separate Yourself From Your Business Many business owners own and operate their businesses as sole proprietorships. The only problem with this is that in the event the company is sued, the owner's individual assets (such as their cars or home) are fairly easy to attack or attach in a court of law.
4. Insure Yourself All businesses should obtain liability insurance in case (for example), a customer was to slip and fall in your place of business. Certain professionals, such as insurance agents and/or consultants, should also consider obtaining errors and omissions coverage to ensure the business should a customer or client accuses the owner of making some sort of error, or not living up to a contract.




COMMERCE ADVANCE
NUMBER ONE
Legal marketing refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The three levels of the environment are:
Micro (internal) environment small forces within the company that affect its ability to serve its customers.
Internal environment can be controlled, however, it can't influence an external environment.
Macro (external) environment larger societal forces that affect the microenvironment.
NUMBER TWO
advertising
marketing
consumer behavior
marketing communications.
NUMBER THREE
Air transport is the second fastest method of transport, after space travel. Commercial jets reach speeds of up to 955 kilometres per hour (593 mph) and a considerably higher ground speed if there is a jet stream tailwind, while piston-powered general aviation aircraft may reach up to 555 kilometres per hour (345 mph) or more. This celerity comes with higher cost and energy use, and aviation's impacts to the environment and particularly the global climate require consideration when comparing modes of transportation.
Land transport covers all land-based transportation systems that provide for the movement of people, goods and services. Land transport plays a vital role in linking communities to each other. Land transport is a key factor in urban planning. It consists of 2 kinds, rail and road.
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail track, known as a railway or railroad. The rails are anchored perpendicular to railroad train consists of one or more connected vehicles that run on the rails. Propulsion is commonly provided by a locomotive, that hauls a series of unpowered cars, that can carry passengers or freight.
Water transport is the process of transport that a watercraft, such as a barge, boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a boat or other vessel can successfully pass through a waterway it is known as a navigable waterway.

NUMBER FOUR
 Accessibility – This primarily deals with the ease of getting.boarding a vehicle. If a mode is not easily accessible then it loses its usefulness because of its unavailability in a certain condition.
 Cost/fare of ticket or cost of service – Considering large number of trips taking place for different purposes and a modern capitalist economy, cost becomes one of the single most important determining factor. It can also be linked to affordability of the user. This factor is one of the most dynamic as the willingness to pay changes on the basis or urgency and need to travel/transport.
 Fuel efficiency/ carbon emission – With the growing environmental concerns many people and companies prefer to chose a option with smaller carbon footprint. Some people prefer electric vehicle solely because of the green label associated with them. Fuel efficiency is closely linked with carbon emission while doing a comparative study, getting more output from same quantity of fuel is always desirable.
 Speed – This factor is another most important and deterministic factor depending upon the situation. Fastest mode may seem to be best option but cost associated with it makes it less lucrative, a cheap mode might result in delay and the purpose of whole trip may be defeated. In cases of emergency speed gains much more significance as compared to day to day trips.
 Capacity/ Carrying Capacity – This is another important factor especially for logistic companies, it becomes important in case of travelling in a group. While going on a trip with your complete class you cannot expect to take multiple vehicles because of safety and security concerns,a vehicle with more carrying capacity will be preferred. In case of transporting goods the concept of scale of economies is best exploited for economic profit while dealing with bulk orders.
 Integration with other modes – For long trips or trips which requires change of mode this factors becomes most significant for completion of the trip. In case the selected mode is not integrated with other modes than the trip will never get completed. In some cases to overcome the problem of integration a heavy cost will be incurred to complete the required trip.
 Reliability of the vehicle/mode – The chosen mode must be reliable. All factors will turn out to be useless if the vehicle develops some fault or is prone to develop fault. If the mode is not reliable than it will result in loss of both time and money. Reliability again becomes important on the basis of situation.
 Comfort – This factor is at times ignored while some makes it priority depending upon the affordability. This is essential in case of travelling and ignored in case of transporting goods. Humans undertakes the trip for various purpose like work, leisure journey, picnic, shopping and thus always prefer comfort. Those who can afford to pay more are expected to get more comfort while some prioritize cost over comfort depending on their personal decision.
Safety Considering the increased cases of accidents safety becomes another important factor. Anyone will wish to ensure maximum available safety for their loved ones. In case of logistics also safety matters a lot especially while dealing with fragile material.



NUMBER FIVE
(i) Buying and Assembling:
The wholesaler purchases goods in large quantities from different manufacturers and assembles them at one place and stores them in his warehouse and resell to the retailers. 
(ii) Warehousing:
By preserving the goods received from different manufacturers in stores, the wholesaler performs the function of warehousing. The storage of goods is needed on account of time lag between production and consumption of goods.
(iii) Grading and Packaging:
The assembled goods are graded in accordance with their quality and packed in different containers before supplying to the retailers. In this manner, the wholesaler performs important marketing functions of grading and packing. 
(iv) Transportation:
The wholesalers purchase goods from manufacturers and carry them to his godowns and then supply the same to the retailers. He may employ his own vans or hire vehicles for carrying the goods on account of bulk purchases. They can avail of economies in freight. 
NUMBER SIX
1. Indigenous Bankers: 
Private money-leaders and other country bankers used to be the only sources of finance prior to the establishment of commercial banks. They used to charge very high rates of interest and exploited the customers to the largest extent possible. Now-a-days with the development of commercial banks they have lost their monopoly. But even today some business houses have to depend upon indigenous bankers for obtaining loans to meet their working capital requirements.
2. Trade Credit: 
Trade credit refers to the credit extended by the suppliers of goods in the normal course of business. As present day commerce is built upon credit, the trade credit arrangement of a firm with its suppliers is an important source of short-term finance. The credit-worthiness of a firm and the confidence of its suppliers are the main basis of securing trade credit.
It is mostly granted on an open account basis whereby supplier sends goods to the buyer for the payment to be received in future as per terms of the sales invoice. It may also take the form of bills payable whereby the buyer signs a bill of exchange payable on a specified future date.
When a firm delays the payment beyond the due date as per the terms of sales invoice, it is called stretching accounts payable. A firm may generate additional short-term finances by stretching accounts payable, but it may have to pay penal interest charges as well as to forgo cash discount.
If a firm delays the payment frequently, it adversely affects the creditworthiness of the firm and it may not be allowed such credit facilities in future.

NUMBER 7
In business, bad debt is the portion of a loan or portfolio of loans a lender considers to be uncollectable. In personal finance, bad debt generally refers to high-interest consumer debt.
For example, let's say Company XYZ manufactures bicycles and sells them through retail stores. Once the retailer receives the bicycles it has 90 days to pay Company XYZ. Company XYZ records the amount due as "accounts receivable" on the balance sheet and recognizes the revenue. However, as the 90 day due date passes, Company XYZ realizes the retailer is not ever going to make its payment.
Once it determines that it's a bad debt and won't be repaid, XYZ must make adjustments to its financial statements. Under accrual accounting, since revenue was already credited for the sale of the bicycles, Company XYZ must adjust its income statement for the bad debt. Therefore, Company XYZ has accounts for both allowance for doubtful accounts (ADA) and bad debt expense, which reduces the amount of net income reported by Company XYZ.
Companies have bad debt expense accounts because it is inevitable that some customers won't pay for the goods and/or services provided, usually occurs because the debtor declares bankruptcy.
For individuals, bad debt refers to debt that is not beneficial in the long run. While a mortgage is a form of debt, it is not considered bad debt, because the borrower has the potential to actually profit from an increase in their home's value. However, credit card debt and other forms of consumer debt are called bad debts, because they are debts taken on for consumption. Consumer goods almost always go down in value over time, so it's common to owe more on a credit card than the purchased goods are actually worth.
NUMBER 8
is an agreement between the purchaser and the seller who owns the goods, where the purchaser agree upon to pay the seller the sum owed for purchasing the goods, in installments or in percentage over a period of time.
There are two parties in a hire purchase contract
The intending seller
The intending purchaser or the hirer.
NUMBER 9
Market aggregation" is defined as the marketing of standardized goods and services to a large population of people that have similar needs, according to Inc. Another name for market aggregation is "mass marketing," a strategy that treats all customers as a single group that is handled homogeneously. Market aggregation is one end of the marketing spectrum that ranges from offering one product to many people versus a different product designed specifically for one person. Inc. reveals the disadvantages to mass marketing include lack of product diversity and inability to identify needs of specific groups of customers.
NUMBER 11
1.
The IMF assists member nations in several different capacities. If a country has a balance of payments deficit, the IMF can step in to fill the gap. It serves as a council and adviser to countries attempting a new economic policy. It also publishes papers on new economic topics.
2.
Its most important function is its ability to provide loans to member nations in need of a bailout. The IMF can attach conditions to these loans, including prescribed economic policies with which borrowing governments must comply.
NUMBER 11B
Governance Structure
A major challenge faced by IMF is directly related to governance of the organisation in practical levels. It has been argued that international organisations such as IMF face the problem of multiple principals to a much larger extent than public and private enterprises. They are controlled by many governments governments that often do not agree on what the organisation should do In other words, there are often disagreements amongst governments in control of IMF in terms of the aims and objectives to be achieved by IMF and the manner in which they need to be achieved and this halts the performance of the organisation to a great extent. The major downsizes associated with IMF governance structure can be best evaluated by referring to four dimensions: effectiveness, efficiency, accountability, and voice.
 
2 Increasing Level of Politicisation
Increasing level of politicisation of IMF can be specified as an additional issue that is proving to be obstruction in achievement of core aims and objectives of the organisation. It has been argued that IMF lending is not a technocratic process; rather, the Fund is a highly political institution whose policies depend on the interests of not only its largest shareholders but also its bureaucrats, both of whom exercise partial incomplete control over IMF policymaking (Copelovich, 2010, p.6).
To put it simply, rather than dealing with its aims and objectives in a direct and timely manner, IMF is being hostage to bureaucracy and geopolitical ambitions of specific countries.
The USA is considered to be the most powerful member of IMF with exclusive privileges that include powerful institutional linkages between the IMF, US Treasury Department and Congress, the ability to veto IMF decisions and modify its budget and quota (Breen, 2008), and there is a popular viewpoint that this position is taken advantage of by US government for political purposes.
Moreover, high level of politicisation of IMF is proving to have detrimental impact on the organisational image of IMF, especially amongst developing countries and newly emerging economic superpowers.
3 Leadership Challenges
A substantial challenge faced by IMF Managing Director is to be decisive and courageous in terms of facing European leaders and communicating to them the current state of global economic situation and policy changes and other measures that need to be implemented in order to deal with these issues.
A recent article in Financial Times shifts attention to this issue by arguing that IMF has challenged Berlins game plan for pulling the eurozone out of its crisis by advocating a series of short-term fixes that the German government has resisted (Specifically, stance taken by IMF chief, Christine Lagarde has been praised for being courageous to challenge German chancellor Angela Merkel  advocating the use of eurozones 500 billion EURO bailout fund to recapitalise banks directly rather than doing it through corresponding governments.
Nevertheless, the leadership challenge is greater for the current IMF Managing Director Christine Lagarde due the numerous scandals associated with the former head of organisation Dominique Strauss-Kahn. Specifically, Mr. Strauss-Kahn has been forced to quit as the head of the IMF after he was accused of **** attempt of a chambermaid at a New York hotel Although this specific case against Strauss-Kahn has been subsequently suspended, additional accusations of similar nature emerged with negative implications on the image of IMF in general, and the bargaining power of the next Managing Director in dealing with heads of member states.
.4 Performance Evaluation Difficulties
Another difficulty associated with IMF can be specified as challenges of evaluating its performance In other words, IMF aims to achieve a wide range of aims and objectives such as promoting international monetary cooperation and exchange stability, facilitating the expansion and balanced growth of international trade etc. and measuring IMF performance in contributing to the achievement of such a variety of aims presents substantial challenges in practical levels.
IMF established Independent Evaluation Office (IEO) in July 2001 and the office issues regular reports evaluating various aspects of IMF performance in an occasional manner.
IEO conducts its evaluations on the basis of multiple surveys involving organisations governing documents, its historical record, and surveys involving monetary and fiscal authorities of member countries, members of Board, IMF senior level management, and external specialist
However, although IEO is being positioned as independent there is a great deal of doubt about the quality and the level of objectivity of IEO performance evaluations of IMF, taking into account that this evaluation office is governed and financed directly by IMF.
Therefore, due to the absence of specific set of performance criteria agreed by IMF stakeholders in general, members in particular, IMF performance evaluation in an objective manner remains a considerable challenge yet to be addressed.
NUMBER 12
Essential Elements of a Valid Contract. An agreement must have the following essential elements to become a valid contract:
Offer and acceptance. ... 
Mutual consent of parties. ... 
Intention to create legal obligation. ... 
Free consent of parties. ... 
Parties must be competent to contract. ... 
Lawful object. ... 
Lawful consideration.
12B
NUMBER 15
Mortgage bank is a bank that specializes in originating and/or servicing mortgage loans. In the US a mortgage bank is a state-licensed banking entity that makes mortgage loans directly to consumers. The difference between a mortgage banker and a mortgage broker is that the mortgage banker funds loans with its own capital.
A merchant bank is historically a bank dealing in commercial loans and investment is a financial institution that engages in underwriting and business loans, catering primarily to the needs of large enterprises and high net worth individuals. In the British market, the term merchant bank refers to an investment bank.
Development Bank Financial institutions dedicated to fund new and upcoming businesses and economic development projects by providing equity capital and/or loan capital.
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'Commercial Bank'
A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans, and offers basic financial products like certificates of deposit and savings accounts to individuals and small businesses.
Number 16b CHOOSE ANY FIVE.
1. Accepting deposits
2. Giving loans
3. Overdraft
4. Discounting of Bills of Exchange
5. Investment of Funds
6. Agency Functions
7. Miscellaneous Functions
1. Accepting Deposits:
The most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks.
For example, fixed and low income group people deposit their savings in small amounts from the points of view of security, income and saving promotion. On the other hand, traders and businessmen deposit their savings in the banks for the convenience of payment.
Therefore, keeping the needs and interests of various sections of society, banks formulate various deposit schemes. Generally, there ire three types of deposits which are as follows:
(i) Current Deposits:
The depositors of such deposits can withdraw and deposit money whenever they desire. Since banks have to keep the deposited amount of such accounts in cash always, they carry either no interest or very low rate of interest. These deposits are called as Demand Deposits because these can be demanded or withdrawn by the depositors at any time they want.
Such deposit accounts are highly useful for traders and big business firms because they have to make payments and accept payments many times in a day.
(ii) Fixed Deposits:
These are the deposits which are deposited for a definite period of time. This period is generally not less than one year and, therefore, these are called as long term deposits. These deposits cannot be withdrawn before the expiry of the stipulated time and, therefore, these are also called as time deposits.
These deposits generally carry a higher rate of interest because banks can use these deposits for a definite time without having the fear of being withdrawn.
(iii) Saving Deposits:
In such deposits, money upto a certain limit can be deposited and withdrawn once or twice in a week. On such deposits, the rate of interest is very less. As is evident from the name of such deposits their main objective is to mobilise small savings in the form of deposits. These deposits are generally done by salaried people and the people who have fixed and less income.
2. Giving Loans:
The second important function of commercial banks is to advance loans to its customers. Banks charge interest from the borrowers and this is the main source of their income.
Banks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the accounts of borrowers. In other words, they create loans out of deposits and deposits out of loans. This is called as credit creation by commercial banks.
Modern banks give mostly secured loans for productive purposes. In other words, at the time of advancing loans, they demand proper security or collateral. Generally, the value of security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refund of the loan.
At limes, banks give loan on the basis of personal security also. Therefore, such loans are called as unsecured loan. Banks generally give following types of loans and advances:
(i) Cash Credit:
In this type of credit scheme, banks advance loans to its customers on the basis of bonds, inventories and other approved securities. Under this scheme, banks enter into an agreement with its customers to which money can be withdrawn many times during a year. Under this set up banks open accounts of their customers and deposit the loan money. With this type of loan, credit is created.
(iii) Demand loans:
These are such loans that can be recalled on demand by the banks. The entire loan amount is paid in lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.
(iv) Short-term loan:
These loans may be given as personal loans, loans to finance working capital or as priority sector advances. These are made against some security and entire loan amount is transferred to the loan account of the borrower.
3. Over-Draft:
Banks advance loans to its customers upto a certain amount through over-drafts, if there are no deposits in the current account. For this banks demand a security from the customers and charge very high rate of interest.
4. Discounting of Bills of Exchange:
This is the most prevalent and important method of advancing loans to the traders for short-term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. In this way, businessmen get loans on the basis of their bills of exchange before the time of their maturity.
5. Investment of Funds:
The banks invest their surplus funds in three types of securitiesGovernmen t securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc.
Other securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks units of UTI, shares of Regional Rural banks etc.
6. Agency Functions:
Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:
(i) Banks collect cheques, drafts, bills of exchange and dividends of the shares for their customers.
(ii) Banks make payment for their clients and at times accept the bills of exchange: of their customers for which payment is made at the fixed time.
(iii) Banks pay insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest etc. as per directions.
(iv) Banks purchase and sell securities, shares and debentures on behalf of their customers.
(v) Banks arrange to send money from one place to another for the convenience of their customers.
7. Miscellaneous Functions:
Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:
(i) Banks make arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, legal documents etc.
(ii) Banks give reference for their customers.
(iii) Banks collect necessary and useful statistics relating to trade and industry.
(iv) For facilitating foreign trade, banks undertake to sell and purchase foreign exchange.
(v) Banks advise their clients relating to investment decisions as specialist
(vi) Bank does the under-writing of shares and debentures also.
(vii) Banks issue letters of credit.
(viii) During natural calamities, banks are highly useful in mobilizing funds and donations.
(ix) Banks provide loans for consumer durables like Car, Air-conditioner, and Fridge etc.
NUMBER 16B
Payments in international trade are generally made through bills of exchange and bankers drafts.

NUMBER 18
1. Watch What You Say and Do First of all, when it comes to your business image, owners and their employees should avoid making any public announcements or conducting any business that might be considered questionable. This means avoiding things like libelous or potentially slanderous statements, but it also means not doing business with unscrupulous individuals. You may not think it's a problem working for a group of individuals who are known for shoddy business practices - because you know your company's ethics are above reproach - but if they take a hit, your company's name may be linked to them in the fallout.
2. Hire a Competent Attorney Business owners should interview attorneys when they first start up, in order to have a ready legal contact. You may need this person to advise you before you act or on how to react when you've been sued. 
Owners should also attempt to secure an attorney that is familiar with local laws and customs in the area in which the business operates. Care should also be taken to retain an attorney with expertise in a particular field if necessary. If your company is anticipating legal challenges from the Internal Revenue Service (IRS) or taxation state department it makes sense to hire a tax attorney. 
3. Separate Yourself From Your Business Many business owners own and operate their businesses as sole proprietorships. The only problem with this is that in the event the company is sued, the owner's individual assets (such as their cars or home) are fairly easy to attack or attach in a court of law.
4. Insure Yourself All businesses should obtain liability insurance in case (for example), a customer was to slip and fall in your place of business. Certain professionals, such as insurance agents and/or consultants, should also consider obtaining errors and omissions coverage to ensure the business should a customer or client accuses the owner of making some sort of error, or not living up to a contract.