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Promotion mix refers to the composure of several promotional tools used by the business to create, maintain and increase the demand for goods and services.

Elements of promotion mix : Personal selling : It is a part of the promotional mix which involv es a one to one communication between buyers and customers (either potential or already customers). As it is a one-to-one communication, it generates direct contact with prospects and customers. Even though it is considered to be one of the most expensive forms of promotion, it is also considered to be the most successful as a seller-buy er relationship can be created and developed.

Advertising: One of the key factors in the promotional mix. which contributes to brand building and also how the market perceives the company, is advertising. It is always a big part of the promotional mix because of the far and wide reach of advertising and the message that you can send to your existing and potential customers. Good adv ertising can build a solid brand for the company. On the other hand, bad advertising with a wrong message, can cause the brand or product to fail.

Direct marketing: While advertising targets a mass-audience, direct marketing targets prospects and customers. Social media marketing, Email marketing, Internet marketing are all types of direct marketing used by companies. They have become important in the promotional mix lately because people are using internet far more than they used to a decade back. Companies employ direct marketing in order to engage in one-way communication with their customers, about product announcements, special promotions order confirmations as well as customer inquiries.

Sales promotions : Sales promotions are one of the most common types of promotion used by companies. Their main purpose is to stimulate purchasing and sales. While it has the potential of increasing sales, it is also beneficial for informing prospects about new products on the market or just to recapture old or lost customers. Such examples include: coupons, product samples, etc.

Personal selling is used to meet the following objectives of promotion in the following ways :

Building Product Awareness : A common task of salespeople, especially when selling in business markets, is to educate customers on new product offerings. In fact, salespeople serve a major role at industry trades shows where they discuss products with show attendees. But building awareness using personal selling is also important in consumer markets. As we will discuss, the advent of controlled word-of mouth marketing is leading to personal selling becoming a useful mechanism for introducing consumers to new products.

Creating Interest : The fact that personal selling involves person-to-person communication makes it a natural method for getting customers to experience a product for the first time. In fact, creating interest goes hand-in-hand with building product awareness as sales professionals can often accomplish both objectives during the first encounter with a potential customer.

Increases Sales : The main objective of all the business firms is to increase sales. Customers can have doubts regarding the quality of the product. The salesman can clarify the doubts and objections raised by the customers on the spot. Hence, sales increases.

The following benefits may be derived from a sound system of control : 

Accomplishment of Organisational Goals : Control helps in achieving business objectives. It ensures regular supply of factors of production and production of high quality of goods and services at economical costs. This is how it helps in achieving, the profitability objective of the business. Further, managerial control includes production control, financial control and other controls which are essential to achieve the objectives of the enterprise.

Judging Accuracy of Standards : Through controlling, a manager can judge whether the standards or targets set are accurate or not. An accurate control system revises standards from time to time to match them with environmental changes. 

m Making Efficient Use of Resources : Each activity is performed in accordance with predetermined standards. As a result there is better use of resources and wastage’s and inefficiencies arc reduced.

Improving Motivation of Employees : The existence of clear-cut standards performance has a positive impact on the behaviour of the employees. They feel motivated while performing their duties and work as dedicated employees. As a result, there is higher quality and productivity in the organisation.

Ensuring Order and Discipline : Controlling insists on continuous check on the activities of employees and thus creates an atmosphere of order and discipline. The employees are made aware of their duties and responsibilities very clearly . They know clearly the standards against which their performance will be judged. These standards motivate the employees work efficiently.

(a) Two elements of a Promotion Mix: 

1. Advertising: It is non-personal communication, which is paid for by an identified sponsor. It is aimed at promoting ideas (no smoking), products (BPLtelevision) or services (Dolphin mobile). 

2. Publicity: It is non-paid form of non-personal communication. This is like advertising except that advertising is paid for and it is not. Publicity takes place when media in the form of news, covers some event and information is disseminated about something free of cost. 

(b) 

1. Protection: Trade unions safeguard workers against all sorts of exploitation by the employer and political parties. A union provides protection from unfair labour practices and atrocities of management. It also tries to revise the status of workers in industry and society. Trade unions resist retrenchment of their members and help to ensure steady employment for workers. Unions serve as a check on arbitrary action by employers. 

2. Economic Security: Unions protect their members from various economic hazards such as illness, accidental injuries, unemployment. They secure compensation from employers. Unions also provide financial assistance to workers during distress. 

(c) Orientation or induction training refers to the training given to new employees to familiarise them with the policies, rules and regulations of the organisation and the conditions of the job. A systematic orientation programme enables the new employees to adjust quickly to new surroundings and people. 

(d) Bank purchases bills of exchange at the face value and less the interest at current rate till its due date. This is called discounting of bills. The owner of the bills can get cash immediately and need not to wait for payment until the bills fall due. 

(e) Contribution: The principle of contribution is another corollary of the doctrine of indemnity. It implies that when property is insured for the same risk with two or more insurers, the different insurers will contribute to the total payment in proportion to the amount assured by each. In case one insurer has paid the full compensation for loss, he is entitled to receive proportionate contribution from other insurers.

Following are the advantages of raising funds from commercial banks : 

• Raising funds from commercial banks are available for the specified period. 

• It provides benefit of trading on equity. 

• Repayment can be made out of future earnings. 

• Interest paid on bank loan is deductible for determining taxable profits.

Importance of Management are as follows : 

Helps in accomplishment of organisational goals : It is the management which determines the goals of the organisation and of various departments and functional groups. The goals are communicated to the employees to seek their cooperation and to ensure coordination. All organisational activities are directed towards the organisational objectives. Clear-cut definition of goals is essential for the success of any organisation.

Helps in efficient utilization of resources : Management ensures efficient utilization of resources to reduce costs and increase productivity and profitability Through planning and organisation, management eliminates all types of wastage’s and achieves efficiency in all business operations. Management motivates workers to put in their best performance. This would lead to the effective working of the business.

Creates dynamic organisation : All organisations operate in a dynamic environment. In order to survive and grow, each organisation has to adapt itself according to the needs of the environment. Employees generally resist changes in the organisation. Management helps them to adapt to the changes so that the organisation is able to maintain its competitive edge.

Helps in accomplishment of personal objectives : Management leads the group members to motivate them to achieve their personal objectives while working for the organisational objectives. Management helps them to satisfy their physical, social, and psychological needs so as to develop a cooperative and committed team.

Helps in development of society : Efficient management of resources is equally important for the development of society . According to Peter Drucker. “Management is the crucial factor in economic and social development.” The development of a country virtually depends upon the quality of management of its resources. 

Efficient management of resources helps in the development of nation in the following ways :

• provision of good quality products and services; 

• creation of employment opportunities; 

• technological innovations for the betterment of society; and 

• contribution to economic growth and development.

Order letter:

Tel:064-888-7654    Caste cary PLC   Telex No:202769

                                5,Barlow Street,   Date:13 Mar 2012 

                                Mussoorie            order No: 39876

To,

Brookside PLC

DehraDun

Please supply and deliver to the above address the following goods.

Terms of Payment

2/12% one month,5%  7days.

signed.........................                                                                                       Purchasing officer castle cary PLC

(a) Marketing contributes to the economic and social development of a nation. In a developing country like India, marketing is all the more important. It helps to make fuller utilisation of untapped assets and energies. Marketing contributes to the development of entrepreneurial and managerial talent. Development of marketing leads to the integration of agriculture, industry and other sectors of the economy. Marketing in developed countries is more advanced than in developing countries. It also helps to increase exports and foreign exchange earnings of the nation. It generates employment and improves standard of living of the people. By increasing per capita income and by bringing new and better products and services to consumers marketing raises the quality of life of Indian economy. 

(b) Stages of marketing: 

1. Production oriented stage: In this stage, production and engineering departments shaped the company’s goals and strategy. The philosophy of this stage was that customers buy products which are low priced and easily available. 

2. Product oriented stage: In this stage marketers believed that customers will buy the product if its quality was good. Firms made efforts to improve product features and performance. 

3. Marketing oriented stage: The aim of marketing should be to know and understand the customer so well that the product or service fits him and sells itself. The modern concept of marketing recognizes the role of marketing as a direct contributor to profits as well as sales volume. 

4. Social marketing stage: With growing population, pollution, poverty and resource shortages, the marketing concept was expanded to include social welfare.

(a) Two uses of Receipt and Payment Account: 

1. Receipt and Payment Account serves as the basis for preparing the Income and Expenditure Account and the Balance Sheet. 

2. It tells at a glance the cash position of the organisation both at the beginning and end of the accounting year. 

(b) (i) The Going Concern Concept: It is assumed that the business will continue to exist for a long time in the future. Transactions are recorded on the assumption that the business will exist for an indefinite period of time. It is on this assumption that a distinction is made between capital expenditure and revenue expenditure. Fixed assets are recorded at their original cost less depreciation. Market value of fixed assets is not recorded, as these assets are not to be sold in the near future. 

(ii) Accounting Period Concept: It is due to this concept that financial statements are prepared at regular intervals, generally one year. This period is called accounting period. The net profit/net loss of business is ascertained separately for each accounting period. Similarly, the financial position of business is ascertained on the last day of an accounting period. Under tax laws, the accounting period starts from 1st April and ends on 31st March next year. 

(c) Importance of Selection of Employees: Selection of employees involves comparison between job requirements and qualifications of candidates. The purpose of selection is to choose the right candidate for the right job. 

Proper selection of employees will result in: 

1. Improving efficiency and profitability by choosing a qualified person for every job. 

2. Ensuring job satisfaction to employees by matching the candidates with the job. 

3. Minimising labour turnover and absenteeism. 

4. Facilitating higher quantity and quality of performance.

(i) Developmental Functions: HRD is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively. 

It involves the following activities: 

1. Performance Appraisal: It implies systematic evaluation of employees with respect to their performance on the job and their potential for development. 

2. Training: It is the process by which employees learn knowledge, skills and aptitudes to further achieve organisational and personal goals.

3. Career planning and development: It involves planning the career of employees with the help of promotions and transfers and implementing these career plans so as to fulfil the career aspirations of people. 

(ii) Compensation Functions: These refer to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives. 

It consist of the following activities: 

1. Job Evaluation: It is the process of determining the relative worth of a job. 

2. Wage and Salary Administration: It implies developing and operating a suitable wage and salary programme by conducting various surveys on wage and salary structure in different organisations. 

3. Bonus: It involves payment of bonus under the payment of Bonus Act, 1965, as well as non-statutory bonus and other incentives.

Overdraft Facility: Commercial banks lend money to businessmen, farmers, artisians and others in many ways and one of the facility is overdraft facility. Overdraft means an arrangement under which a current account holder is allowed to withdraw more than the balance to his credit upto the specified limit given by the bank. Overdraft is allowed for a short period and interest is charged on it. Commercial banks provide overdraft facility on the security of some assets or on the personal security of the account holder.

The span of control is the number of subordinates for whom a manager is directly responsible. Some companies also have an ideal span of control, which is the number of reports they feel a manager can effectively manage. In this case, if a manager has fewer reports than the ideal, they may feel he or she is not being effectively used, while if he or she is handling more they may feel that the manager is over-stretched and the reports will not receive enough direction.

Place is the element of the marketing mix that ensures that the product is distributed and made conveniently available for the consumer – at the right location at the right time. It is imperative that, when the consumer comes into the store to purchase a product, that product is readily available without any issue. Whenever consumers are faced with issues involving the availability of a product, it is almost certain that they will take their business somewhere else,

Bank Overdraft is a temporary’ arrangement in the form of a sanctioned limit granted to the customers to overdraw from their current accounts. Interest is charged on the over drawn amount. The overdrawn limit is determined by the bank depending upon various issues like, credit worthiness of the customer, need and time interval for which the overdrawn is required.

Marketing research refers to a process which involves application of research process in . solving various marketing problems. First of all market information is gathered and analysed. This is necessary to understand the needs of customers and for taking marketing decision.

Objectives of Marketing: 

(i) To Increase Sales: One of the most important goals of marketing for-profit entities is driving business and increasing sales. Marketing needs a good return on investment – meaning the increase in sales should significantly exceed the cost of marketing – and should, therefore, be specific.

(ii) To Improve Product Awareness: A marketing effort can be focused on reviving or invigorating interest in a product that has been on the market for a long time or about which people have longstanding attitudes.

(iii) To Establish in the Industry: A new organization finds it extremely difficult to be heard in a crowded market place, with a public distracted by many stimuli. It has to induce all efforts by means of marketing activities to be heard in the market place.

(iv) Brand Management: Maintaining a place in the mind of the public takes work, and some marketing efforts are simply aimed to maintain prominence in the public space. Major organizations known worldwide often run ads that simply use images and tone to remind consumers of the brand, rather than promote a particular product or service.

Staff is an important managerial function -Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.

Staffing is a pervasive activity- As staffing function is carried out by all managers and in all types of concerns where business activities are carried out.

Traditionally marketing has been described in terms of its functions or activities. In this respect, marketing has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers.

In modern times, emphasis is placed on describing marketing as a social process. It is a process whereby people exchange goods and sen ices for money or for something of value to them.

The main features of marketing are as follow: 

Needs and Wants: The main objective of marketing process is to satisfy the needs and wants of the customers. All the marketing activities are carried out to fulfill this objective. A need can be defined as sum total of all those items which are basic to human beings. 

For example, food, shelter, clothing, water etc. Culturally defined objects that are potential satisfies of needs are known as Wants. 

For example, basic need for water can take many forms such as cold drink or lemon water or tea or coffee etc. These forms are known as wants. An organisation must identify’ the various needs of their customers and should develop products and services that satisfy the same.

Creating a Market Offering: Market offering means giving an offer for goods and services by describing its features like shape, size, qualify, uses etc. Suppose a computer is offered in a market: its various features like different sizes and prices at which it is available, technologies used, location of the shops at which it is available etc. are described. A good ’market offer’ is one which aims at complete consumers’ satisfaction.

(a) Introduction stage in a Product Life Cycle is very risky. It is the stage when product is launched for the first time in the market. It takes time for product to settle in the market and become readily acceptable to consumers. The sales and profit related to the product are, therefore, low. Competition is virtually absent, market is limited, prices are relatively high and little is known about the product innovation. Growth in sales volume is at a low rate due to lack of knowledge on the part of consumers and limited distribution. Prices are usually high because of small scale of production and heavy promotional expenditure. There is high probable rate of product failure. Therefore, it is wrong to say that introduction stage in a Product Life Cycle is not very risky. 

(b) Accounts should disclose all material information. The reasons for this disclosures are reporting on financial statements. 

1. Everyone can understand the reporting on the financial statements relating to the economic affairs of the firm. 

2. A thorough understanding of the change in the method of depreciation or method of valuation of stock, market value of investments and contingent liability. 

(c) Recruitment is not a process of elimination because recruitment is the process of searching for and identifying the prospective employees and encouraging them to apply for jobs in the enterprise. It involves seeking and attracting adequately qualified people from which suitable candidates can be selected. 

(d) No, Branded products/goods are not sold by inspection. These goods are sold by there trademark, brand name etc. A brand is a name, term, symbol or design or a combination thereof used to identify the goods and services of a seller and to differentiate them from those of competitors. For example, Lux Soap, Colgate toothpaste, Titan Watches. These all products are sold with there brand names. 

(e) Training reduces employee absenteeism : Yes, it is true. Training reduces employee absenteeism as trained employees feel more satisfied and interested in doing their jobs. Effective training improves the selfconfidence and job satisfaction of employees. They take greater interest in their work and feel a sense of security which reduces labour turnover and absenteeism.

Modem marketing has created several non-traditional markets. 

The main types of non- traditional markets are as follows : 

(i) Catalogue Market: In this market, products are kept in the showroom along with a catalogue, which contains the details of goods and their prices. Customers select goods after reading the catalogue and examining the samples. In order to attract a higher volume of sales, catalogue markets sell goods at heavy discounts. Nowadays, items like luggage, watches, home appliances and so on are sold through catalogue markets. 

(ii) In-House Market : Door-to-Door sales persons visit the homes of consumers and offer products to them. Before the visit, initial contact may be created through telephone or mailed-in-coupon. This is an effective method and offers great convenience to the customer. In India, Eureka Forbes is selling its water filters and vaccum cleaners through this method. This is however, a time-consuming and . cosdy method. 

(iii) Mail Order Market : In this market, the seller mails price lists and other publicity materials to the prospective buyers. Customers place order after reading advertisements and the mailed literature. Goods are despatched through V.P.P. or courier. 

(iv) Automatic Vending Machines : Well known brands of products of daily use are sold through vending machines. These machines are installed at workplaces, schools and public places. Customers insert coupons/cash in the machines and collect the product. Vending machines are used to sell cold drinks, tea, coffee, candy, snacks, and so on. In Delhi, Mother Dairy sells milk through vending machines. 

(v) Telemarket: This is selling through television. The products are demonstrated on television. Customers place order on a toll-free number and get their products delivered at home through courier. “Asian Sky Shop” is leading company selling products by this method.

Advantages of Branding to Producers are : 

1. Product Differentiation : Branding is a means of differentiating the product from the competitors products. This helps the firm to secure and control the market for its product. 

2. Facilitates Advertising: Branding helps in advertising. A firm can create a market preference for its product (Brand loyalty) by continuously repeating the brand name in its advertisements. Lux, Coca-Cola have become household names due to brand advertising. 

3. Lower Selling Costs : Branding helps to minimise selling costs by reducing dependence on middlemen. Dealers are ready to handle branded products at lower margins. Advantages to Consumers : 

1. Product Identification : Branding helps customers in identifying and recognise the product. It simplifies, therefore, purchase and sale reduces the time and effort involved therein. 

2. Protection : Prices of branded and standardised products are fixed by the manufacturer. They are printed on the product and become well-known to consumers. 

3. Ensures Quality : Branding ensures uniform standards of quality and design to customers. Branded products as well packed to prevent adulteration.

A service is an act or performance offered by one party to another. They are economic activities that create value and provide benefits for customers at specific times and places as a result of bringing desired change.

Intangibility: Services are activities performed by the service provider. Services cannot be seen, tasted, felt, heard or smelt before they are consumed.

Inseparability: Services are typically produced and consumed simultaneously. Inseparability of production and consumption increases the importance of the quality in services.

Perishability: Services are deeds, performance or act whose consumption take place simultaneously; they tend to perish me the absence of consumption. Hence, services cannot be stored. The sen ices go waste if they are not consumed simultaneously.

Coordination is not only a function of management but it is also an essence of the management process. Coordination is required in each and every activity and in each and every function of the management. Coordination is maintained in all the activities of the department, so that enterprise can be run efficiently and effectively. The concept of essence is related to the intrinsic nature of the object. Every function of management must in itself be coordinated. So it becomes the central task of the manager to reconcile the differences in approach, timing, effort or interest and to harmonize cooperative and individual goals. 

The reasons for treating coordination as the essence of management is as follow :

Coordination and Planning: Planning cannot prove effective if the sub plans of the organisation does not match with the overall or main plan. Coordination reconciles the policies and programmes of the various departments with the policies and programmes of the organisation, so that overall objectives can be achieved. Proper coordination as well is required when plans of the organisation are prepared with the participation of all the people who are involved in it. Further, coordination can be achieved through planning by integrating the plans of different departments.

Coordination and Organizing: Organisation would be poor if there is lack of harmony in vertical and horizontal authority relationships. Coordination helps in simplifying the organizational structure as well as reduces the conflicts. Coordination is required at the time of division of work i.e., delegating authority and creating responsibility. So for successfully performing the function of organizing, there is great need of coordination.

Coordination and Staffing: Staffing must be consistent with the needs and the resources of the enterprise. Even manager requires coordination for performing the function of recruitment, selection, training, development, performance appraisal, transfers, demotion, promotion etc. Placing the right person at the right place and at the right time requires coordination. So coordination is required for effectively performing the function of management.

Coordination and Direction: Direction cannot be proved effective if the orders and instructions given to the employees are not consistent with the requirements of the circumstances. Coordination promotes effective communication, leadership, supervision and motivation. Similarly, effective communication, leadership, motivation and supervision enhance coordination in the enterprise.

Coordination and Controlling : Controlling creates harmony between planning and the performance. For the measurement of actual performance, comparing it with the standards and taking the corrective action requires coordination of the different activities and the units in the organisation. So, coordination is required for the performance of the controlling function efficiently.

Good Qualities of a good salesman : 

Personality : A good salesman should possess a good personality. What fragrance is to a flower is personality to an individual. It is the ability to impress others. A charming personality always creates a good impression. He should possess good health, attractive appearance and impressive voice. He should not suffer from physical handicaps like stammering and limping etc.

Cheerful Disposition : He should have a smiling face. It is rightly said that ‘a man without a smiling face must not open a shop. In order to impress upon the customers he should always be cheerful and sweet tempered. He should be properly dressed as the dress greatly enhances the personality.

Mental Ingredients : An individual cannot be a successful salesman unless he possesses certain mental qualities like imagination, sound judgment, presence of mind, foresightedness, initiative and strong memory. These qualities are of great help to a salesman in dealing with customers having different nature and temperament. He can successfully tackle the customers. The mental qualities are very helpful in creating permanent customers for the product.

Courtesy : A salesman should always be polite and courteous towards his customers. It costs nothing but wins permanent customers for the product. He should help the customers in making the right choice or in selecting the products. This will definitely help in winning over the confidence of the customers. 

Patience and Perseverance : A salesman comes across different type of customers. Some of them purchase nothing but waste time by asking irrelevant questions about the products. Under such circumstances, he should not loose temper but give patient hearing to the customers.

An accounting period, in book keeping is the period with reference to which accounting books of any entity are prepared. 

It is the period for which books are balanced and the financial statements are prepared. Generally, the accounting period consists of 12 months. However the beginning of the accounting period differs according to the jurisdiction. For example, one entity may follow the regular calendar year, i.e. January to December as the accounting year, while another entity may follow April to March as the accounting period.

If a company prepares monthly financial statements, there needs to be adjusting entries as of the last day of every month to:

• Accrue expenses and liabilities that occurred but have not yet been recorded. Examples include maintenance, repairs, wages of hourly paid employees, utilities used, property taxes, interest, etc. 
• Record the depreciation for the 30 days of the month. 
• Adjust prepaid expenses for the amounts that have expired and to defer the expenses that have not expired as of the end of the month.

Coordination is a conscious and national managerial function of pulling together. Various components of organised activity pre-determined goals. 

The significance of co-ordination may be understood on the basis of the following factors : 

(i) The backbone of Management: Management is essentially a task of co-ordination of all internal as well as external forces and activities that affect the organisation. Coordination may be regarded as a mother function of management in which all other functions (like planning, organising directing and controlling) are embedded.

(ii) Unification of activities: Co-ordination reduces diversity among various departments and individual employees. It is not possible to achieve the specialised task of various departments and individual employees. It is not possible to achieve specialist tasks of various departments without perfect co-ordination. Coordination welds the various sequents and parts of the organisation into one entry.

(iii) Core of Group efforts: Co-ordination is indispensable in group efforts for accomplishing common goals. Co-ordination integrates various activities for effective achievement of common goals. Co-ordination reconciles the employee’s goals with both department and organisation goals.

Formal Organisation : When the managers are carrying on organizing process then as a result of organizing process an organisational structure is created to achieve systematic working and efficient utilization of resources. This type of structure is known as formal organisational structure. 

The salient features of formal organization are as follows :

• Organization structure is laid down by the top management to achieve organizational goals. 

• Organization structure is based on division of labor and specialization to achieve efficiency in the operations. 

• Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs. 

• The organization does not take into consideration the sentiments of organizational members. 

• The authority and responsibility relationships created by the organization structure are to be honored by every one.

(a) 

1. Fuller Employment: Only under socialised production will of the fullest possible employment to all adult workers, in accordance with the aptitude on each be secured. 

2. Better Deal to Workers: Exploitation, job uncertainty and wretched conditions are to be replaced by just rates of pay, security of service and improved working conditions under state enterprise. 

3. Greater Economy and Coordination: There is greater harmony and coordination among the various industries which are brought under or initiated under state control. 

4. Assistance in economic Development: The surplus profit of nationalised undertaking can be used to finance schemes of national economic development. 

5. Safety of Money: Money deposited in a bank remains safe. Precious articles too can be kept in the safe custody of bank in lockers. 

(b) 

1. Issuing Credit Instruments: Banks issue letters of credit, drafts and travellers cheques to their customers. People can transfer funds from one place to another without carrying currency notes with them. 

2. Underwriting Capital Issues: Banks underwrite the shares and debentures issued by companies. 

3. Safe Custody of Valuables: Banks accept jewellery, documents and other valuables for safe-keeping. 

4. Advice and Information: Banks offer advice on financial matters. They provide information about credit worthiness of customers to enable them to obtain credit facility from suppliers. 

(c) No, there is no guarantee for profit. There should be a balance between liquidity and risk. Past sins should be forgiven. Novel and pragmatic techni-ques should be adopted without which banks would be in danger.

(a) No, Receipts and Payment Account is not a nominal account. It is a real account (debit what comes in, credit what goes out). The primary object of preparing this account is to find out the cash position and to show receipts and payments under different heads. As, it is summary of cash transactions appearing in the Cash Book 

(b) Yes, some costs are also semi-variable costs in nature. These costs do not vary proportionately but don’t remain constant with the change in the volume of output. For example, in telephone cost, basic rental cost is fixed but call rates are vary. 

(c) Human Resource Development is a system of developing in a continuous and planned way the competencies of individual employees, dynamic groups, teams and total organisation to achieve organisational goals. It also maintain the high morale and better human relations would then be measured in terms of these more tangible criteria. 

(d) A company needs to pay for its publicity to the media owners. As the company have to pay money for communicating the new and different uses of their products which will increase the demand of the product and boost nation’s economy too. 

(e) Money is a common denominator. Money measurement concept helps to make accounting records homogeneous, relevant, simple and understandable. In other words, an event, howsoever important may be to the business, will not be recorded unless its monetary effect can be measured with a fair degree of accuracy. So, in this concept, only those transactions are recorded in accounts which can be expressed in terms of money.

(a) 

(b) The strategies adopted during introduction stage are :

1. Selective distribution and attractive discount should be given.

2. Proper advertisement of product.

3. Removing technical and other deficiencies in the product.

4. Attract gifts to customer as on introductory offer.

The strategies adopted during Growth stage are :

1. Keeping the price at competitive levels. 

2. Expanding distribution channels to make the product available wherever demanded. 

3. Greater emphasis on customer service. 

4. More advertising to create brand image.

(c) Accounting statements are prepared at regular intervals, generally One year. This is called Accounting period concept. The expenditure whose benefit will across over a long period, should be apportioned suitable over each year. The users of financial statements need periodical reports on the performance of business. As such, the results of business can be ascertained only after the liquidation of business. But the measurement of net profit and financial position of the business after a very long period will be of little use of owners, managers, investors and other.

The qualities of a good salesman are: 

1. Good physique 

2. Cheerful 

3. Sincerity 

4. Sensitiveness 

5. Knowledge 

A good salesman should possess: 

1. Good Physique: A good salesman must have sound health, good appearance, cheerful disposition and an impressive voice. He should be properly dressed. 

2. Cheerful: Pleasing manners and a smiling face are necessary for a successful salesman. He should be polite and courteous. 

3. Sincere: A good salesman is always loyal and committed to his work. He is dependable and courageous.

Matching Principle of Accounting : According to this principle, cost of a particular period should be charged from the revenue of same period only. This principle provides the guidelines as to how the expenses are to be matched with revenue. For matching costs with revenue, first revenue should be recognized and then costs incurred for generating that revenue should be recognized. It requires that in determining the net profit, all costs which are applicable to revenue of that period should be charged against that revenue. The following points should be considered while matching costs with revenue : 

1. Cost of goods remaining unsold at the end of there year together with expenses incurred on them must be carried forward to the next year. 

2. When a item of revenue is included in the profitaodloss account, all expenses incurred on it whether paid or not, should be included in the profit and loss account. 

3. Incomes received in advance must be treated asa liability, while income earned but not received should be recognized as revenue.

4. If an amount is spent, but revenue from it will be earned in the next year, the amount should be carried down as an asset and should be shown as an expense next year.

(a) Two qualities of a salesman: 

1. Cheerful: Pleasing manners and a smiling face are necessary for a successful salesman. He should be polite and courteous. 

2. Sensitive: A good salesman should be sensitive to the needs and expectations of customers. He is a good listener and has patience. 

3. Knowledgeable: A good salesman should have adequate and up-to-date knowledge about his firm, product, market, competitors and customers. (any two) 

(b) Open Market Operations: The open market operations mean the sale and purchase of securities by the central bank in the open market. When the central bank wants to reduce the volume of credit, it sells securities in the market. Similarly, when the central bank wants to expand credit, it buys securities in the open market. This increases the money supply in the banking system. 

(c) Interviews are essential part of the selection procedure because employer can judge the candidate’s suitability for a job by assessing his/her facial expression, postures, gestures and speaking skills. Interviews are also beneficial !to the candidate as he/she gets the opportunity to know about the job and the organisation. 

(d) Indirect labour cost is the wages paid to the labour which indirectly helps in the production process, which cannot be wholly and directly identified with a particular product. Example: Wages paid to storekeeper, foreman, timekeeper, inspectors. 

(e) Features of Balance Sheet: 

1. A Balance Sheet is always prepared on a particular date. 

2. It is prepared after the preparation of Income and Expenditure account. 

3. It is not an account but a statement. 

4. It shows the financial position on a specified date. 

5. Assets are shown on the right hand side and liabilities are shown on the left hand side. 

6. It contains personal and real accounts and the net result of nominal account. (any two)

(a) Qualities of a good salesman are : 

1. Knowledgeable : A good salesman should possess knowledge about his organisation, product, market, customer and competitor. He should have knowledge about the customer related to his habits, tastes, preferences and time of buying so that the repeated sales can be made. 

2. Communication Skills : Communication skills is an asset for the salesman. He should be able to speak freely, clearly and in a well-pitched voice. He must be a person who has a natural ability for conversation.

(c) Bonded Warehouse : A Bonded warehouse is established under a bond with the customs authorities for storage of duitable goods till the payment of import duty. The owner of a bonded warehouse gives on undertaking not to release the goods until the customs duty is paid. Bonded warehouse are located in port towns and are licensed by the Government. These warehouses operate under the vigilance of customs officials. 

(d) Mural Advertising : Mural advertising is also known as Outdoor advertising. This is the oldest medium of advertising and continues to be popular in spite of new media. It consists of the use of posters, billboards, electric displays etc. Poster? are pasted on walls at important public places to convey the message to the people passing by such places. Sign boards or painted boards are displayed on buses, railways, carriages and public vehicles. Loudspeakers, travelling announcers, sky writings, handbills etc., are examples of outdoor advertising or mural advertising. 

(e) Advantages of Group Life Insurance to employees and employers are as follows : 

1. Group life insurance is economical for employees as they have to pay low premium in comparison with individual life policies. 

2. Group life insurance is also economical and convenient for the employer as he can meet his obligation out of money received from insurance company in case of an employee’s death.

(a) Sales volume of detergent increase by the following ways: 

The various types of incentives used for this purpose are: 

percent off, special discount, free gifts, free extra quantity in the pack, three for two offer (take three, pay for two), coupons, contests etc. Making immediate sales clearing over-due stocks, attracting new buyers, launching a new product quickly, catching impulse buyers (who buy on the spur of moment without planning) and meeting competition successfully are the major merits of sales promotion. Many brands in the market like Henko, Nirma and Ghari detergents have launched sechets which also increase the sales volume of detergent Advertising of detergents also increases the sales volume. It creates a positive impact on the consumer towards the product. 

(b) No branding is not useless. Branding helps the consumers to identify and recognise the product. It simplifies, therefore purchase and sale and reduces the time and efforts of the consumers. 

Branding acts as a market identity: A brand helps position a company’s product offering in terms of price level, quality, service, prestige and other factors that are important to buyers in the firm’s target market. Consumers often use brand image as a proxy for quality and dependability, particularly if they find it difficult to evaluate the product because of its newness or complexity. Brand identity may itself increase margins and profits by enhancing the perception of quality. 

(c) To grow in future FMCG should take care of: 

1. The quality of the product. Products should be invariably packed which prevents adulteration and helps to preserve the quality of the product. 

2. Advertising of a particular product should be there which increases the sales volume. It creates a positive impact on the consumer towards that product. 

3. Technological Advancement should be there time to time. Companies should invest in research and development aimed at advances in technology and should make regular improvement at all stages of life cycle. 

4. Dynamic: One should follow the dynamic techniques in marketing which can be adopted according to the tastes and preferences of the consumers.

1. Institutional advertising: It presents information about the advertiser’s .business, or it tries to create a favourable attitude towards the organisation. For example, to build goodwill or image. Thus, it is basically not intended to sell a specific product directly, but is solely aimed at creating a particular positive image for the company by building prestige and public respect for it. It is a long term and sustained effort. Advertisements undertaken to promote admit education, family planning, commercial harming, public hygine, safe driving, energy conservation, environmental protection are examples of institutional advertising. 

2. Persuasive Advertising: This type of advertising is designed to persuade to consumers to buy a product or service or to support an idea. It is undertaken primarily by business firms. Advertisements of Colgate toothpaste, cocacola soft drinks, lux soap, cadbury chocolate, Me Donald burger are examples of persuasive advertising.

Difference between Recruitment & Selection :

1. Balance sheet shows the assets owned by a trading organization. 

2. It reveals the liabilities of the organisation. 

3. It shows the financial position of the organisation. 

4. It depicts the capital fund of the organisation. 

5. It fulfils the statutory requirements as a non-trading organisation is legally required to prepare a Balance Sheet.

The main reasons for the rapid growth of public relations are: 

1. Communication Gap: The need for communication between organisations and their public is being increasingly recognised. Public relation function is required to bridge this communication gap. 

2. Population Growth: A significant factor contributing to the development of public relations has been the increase in population and the resulting expansion of business, social and political organisations. 

3. Recognition of Social Responsibility: Public relations has made the corporations realise that they have a social responsibility to serve the public. 

4. Big Government: Growing government activity, legislation, taxes and criticism of business by politicians have all contributed to the expansion of public relations in to the field of public affairs and relations with local, state and national government. 

5. Development of Communication Media: Tremendous growth in ideo and cable systems has enabled rapid and widespread transmission of information. 

6. New Ethical Standards: High moral standards and ethical conduct in business have contributed to the development of public relations. 

7. Consumerism: Increasing emphasis on consumer service has caused many companies seeking the goodwill and support of consumers to respond to consumer pressure. This pressure represents a significant change in direction, one which presents to business both an opportunity and challenge. 

8. Education in Public Relations: Growing emphasis on public relations education is in good measures responsible for the increasing prestige of public relations.

Services are becoming important due to the following reasons: 

1. Economic Planning: Government of India launched five year plans in 1951 to achieve rapid growth of the country. Industrialisation requires industrial infrastructure (transport, communication, power, insurance, banking finance, etc.). Therefore, these services have expanded rapidly in the country. 

2. Increasing Urbanisation: Urbanisation has been another cause of expansion of service sector in India. There has been shifting of population from rural to urban areas. Urbanisation leads to rise in demand for infrastructure, services such as communication, public utilities and distribution services. 

3. Media: Television, internal and other media have led to spurt in tourism. Modem technology has made business more comfortable. Tourism in turn has promoted all types of services such as hotels, restaurants, travel agents, amusement parks, event management, etc. Expanding world trade has also had a demonstration effect.

Difference between Fixed Cost & Variable cost :

Different between Spot Market & Future Market :

Difference between Fixed Deposit Account & Recurring Deposit Account :

Four types of market on the basis of area: 

1. Local Market. 2. Regional Market. 3. National Market. 4. International Market. 

Persuasive Advertising: This type of advertising is designed to persuade the consumers to buy a product or service or to support an idea. This advertising becomes more important when competition increases.