Business management notes

PARTNERSHIP

‘Partnership’ is an association of two or more persons who pool their financial and managerial
resources and agree to carry on a business, and share its profit. The persons who form a
partnership are individually known as partners and collectively a firm or partnership
firm.
The agreement may be in oral, written or implied. When the agreement is
in writing it is termed as partnership deed. However, in the absence of an agreement, the
provisions of the Indian Partnership Act 1932 shall apply.
Partnership form of business organisation in India is governed by the Indian Partnership Act, 1932 which defines partnership as “the relation between persons who have agreed to
share the profits of the business carried on by all or any of them acting for all”.

CHARACTERISTICS OF PARTNERSHIP FORM OF BUSINESS
ORGANISATION

Based on the definition of partnership as given above, the various characteristics of
partnership form of business organisation, can be summarised as follows:
(a) Two or More Persons: To form a partnership firm atleast two persons are required.
The maximum limit on the number of persons is ten for banking business and 20 for
other businesses. If the number exceeds the above limit, the partnership becomes
illegal and the relationship among them cannot be called partnership.
(b) Contractual Relationship: Partnership is created by an agreement among the persons
who have agreed to join hands. Such persons must be competent to contract. Thus,
minors, lunatics and insolvent persons are not eligible to become the partners. However,
a minor can be admitted to the benefits of partnership firm i.e., he can have share in the
profits without any obligation for losses.
(c) Sharing Profits and Business: There must be an agreement among the partners to
share the profits and losses of the business of the partnership firm. If two or more
persons share the income of jointly owned property, it is not regarded as partnership.
(d) Existence of Lawful Business: The business of which the persons have agreed to
share the profit must be lawful. Any agreement to indulge in smuggling, black marketing
etc. cannot be called partnership business in the eyes of law.
(e) Principal Agent Relationship: There must be an agency relationship between the
partners. Every partner is the principal as well as the agent of the firm. When a partner
deals with other parties he/she acts as an agent of other partners, and at the same time
the other partners become the principal.
(f) Unlimited Liability: The partners of the firm have unlimited liability. They are jointly
as well as individually liable for the debts and obligations of the firms. If the assets of
the firm are insufficient to meet the firm’s liabilities, the personal properties of the
partners can also be utilised for this purpose. However, the liability of a minor partner
is limited to the extent of his share in the profits.
(g) Voluntary Registration: The registration of partnership firm is not compulsory. But
an unregistered firm suffers from some limitations which makes it virtually compulsory
to be registered. Following are the limitations of an unregistered firm.
(i) The firm cannot sue outsiders, although the outsiders can sue it.
(ii) In case of any dispute among the partners, it is not possible to settle the dispute
through court of law.
(iii) The firm cannot claim adjustments for amount payable to, or receivable from, any
other parties.

MERITS OF PARTNERSHIP FORM OF BUSINESS ORGANISATION
(a) Easy to Form: A partnership can be formed easily without many legal formalities.
Since it is not compulsory to get the firm registered, a simple agreement, either in oral,
writing or implied is sufficient to create a partnership firm.
(b) Availability of Larger Resources: Since two or more partners join hands to start
partnership firm it may be possible to pool more resources as compared to sole
proprietorship form of business organisation.
(c) Better Decisions: In partnership firm each partner has a right to take part in the
management of the business. All major decisions are taken in consultation with and
with the consent of all partners. Thus, collective wisdom prevails and there is less
scope for reckless and hasty decisions.
(d) Flexibility: The partnership firm is a flexible organisation. At any time the partners
can decide to change the size or nature of business or area of its operation after taking
the necessary consent of all the partners.
(e) Sharing of Risks: The losses of the firm are shared by all the partners equally or as
per the agreed ratio.
(f) Keen Interest: Since partners share the profit and bear the losses, they take keen
interest in the affairs of the business.
(g) Benefits of Specialisation: All partners actively participate in the business as per
their specialisation and knowledge. In a partnership firm providing legal consultancy
to people, one partner may deal with civil cases, one in criminal cases, another in
labour cases and so on as per their area of specialisation. Similarly two or more
doctors of different specialisation may start a clinic in partnership.
(h) Protection of Interest: In partnership form of business organisation, the rights of
each partner and his/her interests are fully protected. If a partner is dissatisfied with
any decision, he can ask for dissolution of the firm or can withdraw from the partnership.
(i) Secrecy: Business secrets of the firm are only known to the partners. It is not required
to disclose any information to the outsiders. It is also not mandatory to publish the
annual accounts of the firm.

LIMITATIONS OF PARTNERSHIP FORM OF BUSINESS ORGANISATION
A partnership firm also suffers from certain limitations. These are as follows:
(a) Unlimited Liability: The most important drawback of partnership firm is that the
liability of the partners is unlimited i.e., the partners are personally liable for the debt
and obligations of the firm. In other words, their personal property can also be utilised
for payment of firm’s liabilities.
(b) Instability: Every partnership firm has uncertain life. The death, insolvency, incapacity
or the retirement of any partner brings the firm to an end. Not only that any dissenting
partner can give notice at any time for dissolution of partnership.
(c) Limited Capital: Since the total number of partners cannot exceed 20, the capacity
to raise funds remains limited as compared to a joint stock company where there is no
limit on the number of share holders.
(d) Non-transferability of share: The share of interest of any partner cannot be
transferred to other partners or to the outsiders. So it creates inconvenience for the
partner who wants to transfer his share to others fully and partly. The only alternative
is dissolution of the firm.
(e) Possibility of Conflicts: You know that in partnership firm every partner has an
equal right to participate in the management. Also every partner can place his or her
opinion or viewpoint before the management regarding any matter at any time. Because
of this, sometimes there is friction and quarrel among the partners. Difference of opinion
may give rise to quarrels and lead to dissolution of the firm.
TYPES OF PARTNERS

(A) Based on the extent of participation in the day-to-day management of the firm
partners can be classified as ‘Active Partners’ and ‘Sleeping Partners’. The partners
who actively participate in the day-to-day operations of the business are known as
active partners or working partners. Those partners who do not participate in the
day-to-day activities of the business are known as sleeping or dormant partners. Such
partners simply contribute capital and share the profits and losses.
(B) Based on sharing of profits, the partners may be classified as ‘Nominal Partners’
and ‘Partners in Profits’. Nominal partners allow the firm to use their name as partner.
They neither invest any capital nor participate in the day-to-day operations. They are
not entitled to share the profits of the firm. However, they are liable to third parties for
all the acts of the firm. A person who shares the profits of the business without being
liable for the losses is known as partner in profits. This is applicable only to the minors
who are admitted to the benefits of the firm and their liability is limited to their capital
contribution.
(C) Based on Liability, the partners can be classified as ‘Limited Partners’ and ‘General
Partners’. The liability of limited partners is limited to the extent of their capital
contribution. This type of partners is found in Limited Partnership firms in some European
countries and USA. So far, it is not allowed in India. However, the Limited liability
Partnership Act is very much under consideration of the Parliament. The partners
having unlimited liability are called as general partners or Partners with unlimited liability.
It may be noted that every partner who is not a limited partner is treated as a general
partner.
(D) Based on the behaviour and conduct exhibited, there are two more types of
partners besides the ones discussed above. These are (a) Partner by Estoppel; and
(b) Partner by Holding out. A person who behaves in the public in such a way as to
give an impression that he/she is a partner of the firm, is called ‘partner by estoppel’.
Such partners are not entitled to share the profits of the firm, but are fully liable if some
body suffers because of his/her false representation. Similarly, if a partner or partnership
firm declares that a particular person is a partner of their firm, and such a person does
not disclaim it, then he/she is known as ‘Partner by Holding out’. Such partners are
not entitled to profits but are fully liable as regards the firm’s debts.

SUITABILITY OF PARTNERSHIP FORM OF BUSINESS ORGANISATION
We have already learnt that persons having different ability, skill or expertise can join
hands to form a partnership firm to carry on the business. Business activities like construction,
providing legal services, medical services etc. can be successfully run under this form of
business organisation. It is also considered suitable where capital requirement is of a medium
size. Thus, business like a wholesale trade, professional services, mercantile houses and
small manufacturing units can be successfully run by partnership firms.

FORMATION OF PARTNERSHIP FORM OF BUSINESS ORGANISATION
The following steps are to be taken in order to form a partnership firm:
(a) Minimum two members are required to form a partnership. The maximum limit is ten
in banking and 20 in other businesses.
(b) Select the like-minded persons keeping in view the nature and objectives of the
business.
(c) There must be an agreement among the partners to carry on the business and share
the profits and losses. This agreement must preferably be in writing and duly signed by
the all the partners. The agreement, i.e., the partnership deed must contain the following:
(i) Name of the firm
(ii) Nature of the business
(iii) Names and addresses of partners
(iv) Location of business
(v) Duration of partnership, if decided
(vi) Amount of capital to be contributed by each partner
(vii) Profit and loss sharing ratio
(viii) Duties, powers and obligations of partners.
(ix) Salaries and withdrawals of the partners
(x) Preparation of accounts and their auditing.
(xi) Procedure for dissolution of the firm etc.
(xii) Procedure for settlement of disputes
(d) The partners should get their firm registered with the Registrar of Firms of the concerned
state. Although registration is not compulsory, but to avoid the consequences of nonregistration,
it is advisable to get it registered when it is setup or at any time during its
existence. The procedure for registration of a firm is as follows.
(i) The firm will have to apply to the Registrar of Firms of the concerned state in the
prescribed form.
(ii) The duly filled in form must be signed by all the partners.

(iii) The filled in form along with prescribed registration fee must be deposited in the
office of the Registrar of Firms.
(iv) The Registrar will scrutinise the application, and if he is satisfied that all formalities
relating to registration have been duly complied with, he will put the name of the
firm in his register and issue the Certificate of Registration.

JOINT HINDU FAMILY FORM OF BUSINESS ORGANISATION
After knowing about sole proprietorship and partnership forms of business organisation
let us now discuss about a unique form of business organisation that prevails only in India
and that too among the Hindus. The Joint Hindu Family (JHF) business is a form of business
organisation run by Hindu Undivided Family (HUF), where the family members of three
successive generations own the business jointly. The head of the family known as Karta
manages the business. The other members are called co-parceners and all of them have
equal ownership right over the properties of the business.
The membership of the JHF is acquired by virtue of birth in the same family. There is no
restriction for minors to become the members of the business.

CHARACTERISTICS OF JHF FORM OF BUSINESS ORGANISATION
From the above discussion, it must have been clear to you that the Joint Hindu family
business has certain special characteristics which are as follows:
(a) Formation: In JHF business there must be at least two members in the family, and
family should have some ancestral property. It is not created by an agreement but by
operation of law.
(b) Legal Status: The JHF business is a jointly owned business. It is governed by the
Hindu Succession Act 1956.
(c) Membership: In JHF business outsiders are not allowed to become the coparcener.
Only the members of undivided family acquire co-parcenership rights by birth..
(d) Profit Sharing: All coparceners have equal share in the profits of the business.
(e) Management: The business is managed by the senior most member of the family
known as Karta. Other members do not have the right to participate in the management.
The Karta has the authority to manage the business as per his own will and his ways of
managing cannot be questioned. If the coparceners are not satisfied, the only remedy
is to get the HUF status of the family dissolved by mutual agreement.
(f) Liability: The liability of coparceners is limited to the extent of their share in the
business. But the Karta has an unlimited liability. His personal property can also be
utilised to meet the business liability.
(g) Continuity: Death of any coparceners does not affect the continuity of business.
Even on the death of the Karta, it continues to exist as the eldest of the coparceners
takes position of Karta. However, JHF business can be dissolved either through mutual
agreement or by partition suit in the court.

MERITS OF JHF FORM OF BUSINESS ORGANISATION
Since Joint Hindu Family business has certain peculiar features as discussed above, it has
the following merits.
(a) Assured Shares in Profits: Every coparcener is assured of an equal share in the
profits irrespective of his participation in the running of the business. This safeguards
the interest of minor, sick, physically and mentally challenged coparceners.
(b) Quick Decision: The Karta enjoys full freedom in managing the business. It enables
him to take quick decisions without any interference.
(c) Sharing of Knowledge and Experience: A JHF business provides opportunity for
the young members of the family to get the benefits of knowledge and experience of
the elder members. It also helps in inculcating virtues like discipline, self-sacrifice,
tolerance etc.

(d) Limited Liability of Members: The liability of the coparceners except the Karta is
limited to the extent of his share in the business. This enables the members to run the
business freely just by following the instructions or direction of the Karta.
(e) Unlimited Liability of the Karta: Because of the unlimited liability of the Karta, his
personal properties are at stake in case the business fails to pay the creditors. This
clause of JHF business makes the Karta to manage business most carefully and efficiently.
(f) Continued Existence: The death or insolvency of any member does not affect the
continuity of the business. So it can continue for a long period of time.
(g) Tax Benefits: HUF is regarded as an independent assessee for tax purposes. The
share of coparceners is not to be included in their individual income for tax purposes.
After knowing the merits let us see the limitations of Joint Hindu Family form of business
organisation.

LIMITATION OF JHF FORM OF BUSINESS ORGANISATION
(a) Limited Resources: JHF business has generally limited financial and managerial
resource. Therefore, it is not considered suitable for large business.
(b) Lack of Motivation: The coparceners get equal share in the profits of the business
irrespective of their participation. So generally they are not motivated to put in their
best.
(c) Scope for Misuse of Power: Since the Karta has absolute freedom to manage the
business, there is scope for him to misuse it for his personal gains. Moreover, he may
have his own limitations.
(d) Instability: The continuity of JHF business is always under threat. A small rift within
the family may lead to seeking partition.

SUITABILITY OF JHF FORM OF BUSINESS ORGANISATION
The Joint Hindu Family form of business organisation is suitable where the family inherits a
running business and the members of the family want to continue that business jointly as a
family business. Even otherwise, this form of business organisation is considered suitable
for a business that requires limited financial and managerial resources and having a very
limited area of operation. It is found that JHF are usually engaged in trading business,
indigenous banking, small industry, and crafts etc.

Business management notes

FORMS OF BUSINESS ORGANISATION
Have you ever thought who brings the required capital, takes the responsibility of arranging
other resources, puts them into action, and coordinates and controls the activities to earn
the desired profits? If you look around, you will find that a small grocery shop is owned
and run by a single individual who performs all these activities. But, in big businesses, it
may not be possible for a single person to perform all these activities. So in such cases two
or more persons join hands to finance and manage the business properly and share its
profit as per their agreement. Thus, business organisations may be owned and managed
by a single individual or group of individuals who may form a partnership firm or a joint
stock company. Such arrangement of ownership and management is termed as a form of
business organisation. A business organisation usually takes the following forms in India:
(1) Sole proprietorship
(2) Partnership
(3) Joint Hindu Family
(4) Cooperative Society
(5) Joint Stock Company

SOLE PROPRIETORSHIP

Definition of Sole Proprietorship
J.L. Hanson: “A type of business unit where one person is solely responsible for
providing the capital and bearing the risk of the enterprise, and for the management
of the business.”
Thus, ‘Sole Proprietorship’ from of business organisation refers to a business
enterprise exclusively owned, managed and controlled by a single person
with all authority, responsibility and risk.
Now you can workout certain characteristics of sole proprietorship form of business
organisation.
CHARACTERISTICS OF SOLE PROPRIETORSHIP FORM OF BUSINESS
ORGANISATION
(a) Single Ownership: The sole proprietorship form of business organisation has a single
owner who himself/herself starts the business by bringing together all the resources.
(b) No Separation of Ownership and Management: The owner himself/herself manages
the business as per his/her own skill and intelligence. There is no separation of ownership
and management as is the case with company form of business organisation.

(c) Less Legal Formalities: The formation and operation of a sole proprietorship form
of business organisation does not involve any legal formalities. Thus, its formation is
quite easy and simple.
(d) No Separate Entity: The business unit does not have an entity separate from the
owner. The businessman and the business enterprise are one and the same, and the
businessman is responsible for everything that happens in his business unit.
(e) No Sharing of Profit and Loss: The sole proprietor enjoys the profits alone. At the
same time, the entire loss is also borne by him. No other person is there to share the
profits and losses of the business. He alone bears the risks and reaps the profits.
(f) Unlimited Liability: The liability of the sole proprietor is unlimited. In case of loss, if
his business assets are not enough to pay the business liabilities, his personal property
can also be utilised to pay off the liabilities of the business.
(g) One-man Control: The controlling power of the sole proprietorship business always
remains with the owner. He/she runs the business as per his/her own will.

MERITS OF SOLE PROPRIETORSHIP FORM OF BUSINESS ORGANISATION
(a) Easy to Form and Wind Up: It is very easy and simple to form a sole proprietorship
form of business organisation. No legal formalities are required to be observed. Similarly,
the business can be wind up any time if the proprietor so decides.
(b) Quick Decision and Prompt Action: As stated earlier, nobody interferes in the
affairs of the sole proprietary organisation. So he/she can take quick decisions on the
various issues relating to business and accordingly prompt action can be taken.
(c) Direct Motivation: In sole proprietorship form of business organisations. the entire
profit of the business goes to the owner. This motivates the proprietor to work hard
and run the business efficiently.
(d) Flexibility in Operation: It is very easy to effect changes as per the requirements of
the business. The expansion or curtailment of business activities does not require many
formalities as in the case of other forms of business organisation.
(e) Maintenance of Business Secrets: The business secrets are known only to the
proprietor. He is not required to disclose any information to others unless and until he
himself so decides. He is also not bound to publish his business accounts.
(f) Personal Touch: Since the proprietor himself handles everything relating to business,
it is easy to maintain a good personal contact with the customers and employees. By
knowing the likes, dislikes and tastes of the customers, the proprietor can adjust his operations accordingly. Similarly, as the employees are few and work directly under
the proprietor, it helps in maintaining a harmonious relationship with them, and run the
business smoothly.

LIMITATIONS OF SOLE PROPRIETORSHIP FORM OF BUSINESS
ORGANISATION
(a) Limited Resources: The resources of a sole proprietor are always limited. Being
the single owner it is not always possible to arrange sufficient funds from his own
sources. Again borrowing funds from friends and relatives or from banks has its own
implications. So, the proprietor has a limited capacity to raise funds for his business.
(b) Lack of Continuity: The continuity of the business is linked with the life of the
proprietor. Illness, death or insolvency of the proprietor can lead to closure of the
business. Thus, the continuity of business is uncertain.
(c) Unlimited Liability: You have already learnt that there is no separate entity of the
business from its owner. In the eyes of law the proprietor and the business are one and
the same. So personal properties of the owner can also be used to meet the business
obligations and debts.
(d) Not Suitable for Large Scale Operations : Since the resources and the managerial
ability is limited, sole proprietorship form of business organisation is not suitable for
large-scale business.
(e) Limited Managerial Expertise: A sole proprietorship from of business organisation
always suffers from lack of managerial expertise. A single person may not be an expert
in all fields like, purchasing, selling, financing etc. Again, because of limited financial
resources, and the size of the business it is also not possible to engage the professional
managers in sole proprietorship form of business organisations.

FORMATION OF SOLE PROPRIETORSHIP FORM OF BUSINESS
ORGANISATION
It is very simple to establish a sole proprietary concern. Any person who is willing to start
a business and has the necessary resources can set up this form of business organisation.
To start and operate the business in this form, practically does not require any legal formalities
to be fulfilled. In some cases like restaurant, chemist shop etc. however, permission from
the competent authority is required to be obtained before starting the business. Similarly,
setting up a factory may involve taking permission from the local authority. But, formation
of business unit as such does not involve any complexities.

I enjoy the company of my students

industrial visit to Verka milk plant on 16.02.11

Some good MBA entrance exams

• AIMA-MAT (MANAGEMENT APTITUDE TEST) Management Aptitude Test or MAT as it is popularly known is conducted 4 times a year (in February, May, September & December) by the Centre for Management Services (CMS) division of All India Management Association (AIMA). It is as a credible, comprehensive and single window test for admissions to different postgraduate management programmes. The application form for MAT is available for Rs. 1050.

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• ATMA - AIMS TEST FOR MANAGEMENT ADMISSIONS

ATMA has been approved by the Ministry of HRD of the Government of India for admission on All India basis to the MBA/PGDM and other postgraduate programmes like MCA. Around 140 MBA institutes accept ATMA scores for admission to various management programs. The application form for ATMA is available for Rs. 950
Eligibility: Candidate must have completed their graduation from a recognized and authorized university.
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• CAT (COMMON ADMISSION TEST)

Common Admission Test (CAT) is the most popular MBA entrance test and is held annually for admission to postgraduate management courses in all the Indian Institute of Management (IIMs) and various other management institutes. IIMs offer around 2700 seats in various management programmes & other than the IIMs, 165-odd institutes admit students based on CAT scores. Every year more than two lakh students appear for CAT. The application form and information bulletin is available for Rs. 1400.
Eligibility: A candidate should have atleast 50% or equivalent CGPA in Graduation.
Test Pattern & Selection: Since 2009 CAT is a computer based test of 2 ½ hours. CAT has multiple choice questions from the following sections: Data Interpretation and logical Reasoning, Quantitative Ability, Verbal Ability and Comprehension. Candidates are expected to perform well in all the three sections as there are separate cut-offs for individual sections as well. Each correct answer will be awarded 1 or 2 marks & for each wrong answer, 1/3rd mark will be deducted.
CAT website will list the names of the candidates shortlisted for interviews by IIMs for PGP. Each IIM will send interview letters to the candidates it has shortlisted. The criteria for shortlisting vary from IIM to IIM. Other management colleges have different cutoffs for various courses. Candidates can apply to the colleges individually with the CAT score and then convert the call by going through a rigorous round of group discussion and personal interview.
Website: www.catiim.in

• IBSAT (IBS APTITUDE TEST)

IBSAT is an aptitude test conducted by the Federation of Universities (FedUni), for students seeking admission into the management programmes. The application form is available for Rs. 1200 and the test is held all across India in about 100 centres in various cities.
Eligibility: Graduates (any discipline) in English medium with 50% and above aggregate marks.
Test Pattern & Selection: IBSAT is for 2 hours duration and is aimed to test the applicants’ ability in quantitative techniques, data interpretation, data adequacy, vocabulary, analytical reasoning and reading comprehension. The results of the IBSAT are hosted online on www.ibsat.org. The details of the score (in terms of percentiles) obtained in the test is intimated to all applicants.
Website: www.ibsat.org

• FMS (FACULTY OF MANAGEMENT STUDIES)

FMS is one of the premier management institutions in India which conducts its own Entrance Test. The application form is available for Rs. 750.
Eligibility: 3-year Bachelor’s programme with an aggregate of minimum 50%.
Test Pattern & Selection: There is no prescribed syllabus or format for this multiple-choice test which has 200 questions to be attempted in 120 minutes. So the most important factor in FMS entrance is speed & accuracy. The tests usually comprise the ollowing basic areas: Quantitative, Verbal, Analytical & Logical Reasoning. Students will receive both total percentile rank and sectional percentile rank scores in FMS. To be shortlisted students should have atleast 50th percentile rank score in each section of the test in FMS results.
Website: www.fms.edu

• IIFT (INDIAN INSTITUTE OF FOREIGN TRADE)

The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of India as an autonomous organisation to help professionalize the country’s foreign trade management. Today it is one of India’s most prestigious business schools. Last year approximately 63,000 candidates applied for just 180 seats. The cost of the application form is Rs. 1500.
Eligibility: Recognized Bachelor’s degree of minimum 3 years duration in any discipline.
Test Pattern & Selection: The entrance examination is of 2 hours having objective questions from the following sections: 1. English Comprehension, 2. Logical Reasoning, 3. Quantitative Analysis, 4. General Knowledge & Awareness. The candidates will be shortlisted on the basis of their scores in the entrance examination. The shortlisted candidates will be called for Group Discussion, Interview and Essay Writing for final selection.
Website: www.iift.edu

• JOINT MANAGEMENT ENTRANCE TEST [JMET]

Joint Management Entrance Test (JMET) is the first step in the process of admission to the 2 year full-time PG degree programmes in Management offered by the IITs. Currently IIT Bombay, IIT Delhi, IIT Kanpur, IIT Kharagpur, IIT Madras, and IIT Roorkee offer programmes in Management. The application form is available for Rs. 750.
Eligibility: Candidates with Bachelor’s degree in any discipline of Engineering/Technology or a Master’s degree with first class or equivalent in any discipline from a recognized Institute/University with at least 60% marks
Test Pattern & Selection: The test is of 3 hours duration and consists of 120 questions (objective/multiple choice type) in the following sections: Verbal Communication, Logical Reasoning, Quantitative Ability, Data Interpretation. The results of JMET provide a basis to each participating institute to shortlist potential candidates for conducting its own selection processes like, Group Discussion/Interview etc for the final admission.
Website: www.web.iitd.ac.in/~gate/jmet

• NMAT (NARSEE MONJEE MAT)

NMIMS was established in 1981 by Narsee Monjee Educational Trust. It was awarded ‘deemed to be university’ status by the UGC in 2003. NMAT is conducted by Narsee Monjee Institute of Management Studies, Mumbai for admission to various specialised courses in MBA. The application form is available for Rs. 1650.
Eligibility: Bachelor’s Degree (10+2+3) in any discipline from a recognized University with a minimum 50% marks.
Test Pattern & Selection: The NMAT is a computer based test of 2 hours duration consisting of multiple-choice questions where the candidate needs to select one of the correct answers. The sections in the NMAT-2011 are Language Skills; Quantitative Skills, Data Interpretation & Data Sufficiency; and Logical Reasoning. The final merit list will be prepared on the basis of the NMAT Score, Written Test marks (as applicable), Group Discussion, Personal Interview, Presentation (as applicable) and work experience. The selection will be based on merit.
Website: www.nmims.edu

• SNAP (SYMBIOSIS NATIONAL APTITUDE TEST)

Symbiosis National Aptitude (SNAP) Test is a common written test for the admission to all the Post-Graduate Institutes of Symbiosis International University. Written test is mandatory for admission into any Postgraduate programme offered by the constituent institute of Symbiosis International University. The application form is available for Rs. 1550. Candidates will need to apply to the individual one or more Symbiosis colleges separately.
Eligibility: To apply for SNAP a candidate should be a gradudate with atleast 50% marks in graduation.
Test Pattern & Selection: SNAP Test is of 2 hours duration and is an objective test with each question having 4 responses. Candidate should choose an appropriate response. Each wrong answer attracts 25% negative marks. The four sections are: General English, Quantative Aptitude, General Awareness, Logical & Analytical Reasoning. Candidates from the first stage will be shortlisted on the basis of SNAP score for Group Discussions and thereafter they will appear if shortlisted for Personal Interviews.
Website: www.snaptest.org

• XAT (XLRI)

For more than 60 years XLRI has been conducting admission test on all India level to select the most appropriate students for management education. There are more than 70 plus Management Institutes which use XAT scores for selecting students. There are 33 cities in which XAT exam is conducted. The information bulletion and application form is available for Rs. 900. Other prominent institutes which accept XAT are : S P Jain Institute of Management and Research, Mumbai, Welingkar Institute of Management Development and Research, Mumbai, Xavier Institute of Management Bhubaneswar and Loyola Institute of Business Administration, Chennai
Eligibility: Bachelor’s Degree (10+2+3)in any discipline from a recognized University
Test Pattern & Selection: XAT has three sections – 'Verbal Ability and Logical Reasoning (VA)’, 'Quantitative Ability and Data Interpretation (QA)’ and 'Analytical Reasoning and Decision Making Ability (AR)’. The time given to attempt these three sections is 120 minutes. In addition, one is evaluated on an essay which one is supposed to write in the next 20 minutes after finishing these three sections. A common merit list is declared and a candidate may apply for a maximum of three programmes. Those who apply for multiple programmes may be called for multiple interviews and/or group discussions. And selection criterion and cut offs vary across different programmes.
Website: www.xlri.net.in

Study material for BBA-I

 Effective Meetings

Among all the meetings that are held, most of them fail to be effective because they are held at too frequent intervals and most often lack a purpose. Several times, there are too many people present at the meeting which makes it difficult to arrive at an effective decision. Careful planning is required for a meeting to be effective.

The Planning Process

There are five important questions that need to be addressed while planning a meeting. These are:

·    Why have a meeting at all?

·    What type of meeting should be held?

·    Who should participate?

·    Where should the meeting be held?

·    When should the meeting be held?

Why have a meeting at all?

Before calling for a meeting, the purpose of holding the meeting should be clearly known. Routine meetings are called to update employees on a daily, weekly or monthly basis about recent developments pertaining to the ongoing purpose of the organization. Meetings may also be called for specific purposes such as to inform, consult or persuade the members 

What type of meeting should be called?

Meetings fall under three categories:

·    Informational meetings,

·    Problem-solving meetings, and

·    Change facilitating meetings.

·    Informational meetings: These meetings are organized to inform the members of the group about recent developments. Usually the communication flow in these meetings is one-way communication but sometimes, it may be two-way, during which the members may ask the convener to clarify certain points.

 Example: A meeting is called to inform all the employees about changes in the leave policy of the company. 

·    Problem-solving meetings: The purpose of holding these meetings is to generate ideas and later arrive at a decision. The decisions that result from such meetings may include decisions regarding changes in company policy, adopting a new technology and so on.

Example: A meeting is called to decide on new markets into which the company can venture on the strength of  its current products. 

·    Change-facilitating meetings: These meetings require a lot of planning. The main purpose of these meetings is to convince the participants on a particular issue.

Example: A meeting is called to convince the employees to adopt a new application software for carrying out their daily operations.

Wwho should participate?

The purpose of holding the meeting decides who should participate in the meeting.

In case of an informational meeting, a large number of people are required to attend the meeting but if the purpose of having the meeting is problem-solving, then only those who can contribute to the discussion and who are directly involved in the decision need to be invited. 

Where should the meeting be held?

The place of meeting and the seating arrangement at the meeting plays a role in making it effective or otherwise. It also reflects the extent to which the meeting is formal and  whether the meeting is dominated by the convener or is participatory. The seating arrangements differ for different types of meetings. 

When should the meeting be held?

Meetings that are held on Monday mornings, and in the afternoon on the last day of the week are usually ineffective. This is because the people who participate in meetings held at these times are generally pre-occupied with other thoughts and plans. The timing of a meeting should be such that the participants remain attentive besides making meaningful contributions to the discussions.

Notice

After the questions to be discussed in the meeting are finalized, the convener issues a notice calling for a meeting. While issuing the notice, certain aspects should be taken into consideration:

·    The notice must be issued by the proper authority

·    It must be issued sufficiently in advance

·    The notice should clearly specify the time, date and venue of the meeting

·    An agenda should accompany the notice

·    The notice should be sent to all persons who are entitled to receive it.

 Agenda

The agenda of a meeting comprises the list of  topics that are to be discussed in the meeting. The agenda should clearly state the issues to be discussed, the time, date, place and the name of the meeting. The supporting background materials should also be sent along with the agenda to the participants. The participants should come well-prepared for the meeting.

Minutes

Minutes consist of written records of the proceedings of the previous meeting. Minutes are sent along with the agenda or read out by the company secretary before the commencement of the meeting. The purpose is to brief the members about the previous meeting. 

Opening the meeting

The meeting usually commences with the chairman or the leader conveying thanks to the participants for attending the meeting. He then follows this with a brief speech about the purpose of the meeting. The agenda papers are circulated to those who don't possess them. The chairman also gives a briefing on the specific contributions to be made by members, setting the time-frame for the same.

Conducting the business

The main role of the chairman or the leader of the meeting is to ensure that the various issues listed in the agenda are discussed. In case of any deviations, he should immediately redirect the focus on to the main agenda. He should also ensure that all members participate. When  tactics such as personal power play, attention-seeking and blocking are resorted to,  he should handle them deftly. Personal opinions should be kept at bay and he should consider the practicality and acceptability of the contributions made by members. At the end of the meeting, he should thank all members for their contributions, irrespective of his personal opinion on the different views expressed in the meeting.

Concluding the meeting

When there are few minutes left for the meeting to end, the leader brings it to the notice of the members. This enables the members to be able to wrap up their discussions within the time. After that,  the leader should summarize the proceedings stating what has been achieved and what hasn't been achieved in the meeting and inform the members about the future course of action. He should also inform them as to when the minutes will be circulated.  

Following up the meeting

After the meeting is over, the leader should review the proceedings and find an answer to the following queries:

·    Did the meeting achieve its specified purpose?

·    What are the issues that require further discussion?

·    Was there adequate participation by the members?

·    How can the next meeting be conducted better?

When to use Visual aids

Before trying to know when to use visual aids, it is important to first understand the role played by visual aids in enhancing the process of communication. Therefore, it is necessary to first know why business professionals use visual aids in their reports and presentations.

Why are visual aids used in presentations and reports?

Visual aids help in communicating information more clearly than what is possible using only textual matter. They help to clarify and simplify data. The ability of visual aids to attract the attention of the reader helps them serve as attention-getters. Thus, visual aids can be used to emphasize important material and to persuade the reader to understand or agree with the writer's point of view. 

Example: A quarterly sales report submitted by a sales executive will be clear and easy to understand if it is presented in a tabulated manner showing the targeted, actual and difference in sales. If, however, the sales report were to be presented in the form of textual matter, not only would this be complicated and difficult to understand but will also make comparison difficult.

When to use visual aids?

Visual aids are used to make reports and presentations more effective. They are used to support and clarify textual descriptions through graphics, diagrams etc. They simplify complicated descriptions by breaking them into various components and depicting them together using flow charts, diagrams etc. Visual aids are used to emphasize important parts of presentations or reports by means of pie charts, line charts etc. They are used to summarize the major points in a report or narrative by summing them up in the form of a table or chart.

Selective usage of visual aids

Selective usage of visual aids is necessary since use of too many graphics and other such visual aids may result in distracting the attention of the readers from the central idea of the presentation or report. Also, visual aids should complement the textual matter. They should not be used in place of textual matter.

The following questions require to be answered to know whether a visual presentation is effective or not?

·    Does the visual presentation help enhance the readers' overall understanding of the subject?

·    Can the information be conveyed in words rather than by visual means?

·    Will the textual information add meaning to the visual display?

·    Is the visual presentation easy to understand or does it confuse the readers?

Selecting a suitable visual aid

Selecting the right visual aid could be the most vital decision in making a report effective. The visual aid selected should be the one that best conveys the message to the readers.

Various visual aids available are discussed below:

Tables

A table is a systematic presentation of data in columns and rows. A table is the most suitable visual aid when detailed, numerical information has to be presented in a clear and simple manner. A table consists of horizontal rows and vertical columns with headings to indicate what they represent.

Bar charts

The bar chart, also known as simple bar chart or single-range bar chart, is a graphic aid used to depict quantities. The bars may be presented either horizontally or vertically and the length of the bars indicates the quantity of the variable.

There are two types of bar charts:

Multi-range bar chart: Multi-range bar charts are also known as comparative or cluster bar chart. A multi-range bar chart is used to express data that change over time. A multiple-range bar chart can effectively compare more than one set of data at each point on the X-axis or the Y-axis.

Stacked bar chart: The stacked bar chart is also called as the component, 100 percent or segmented bar chart. This type of bar chart is used when it is necessary to show how the various components contribute to the total figure. A stacked bar chart allows comparisons of components for more than one time period. 

Gantt chart: Gantt charts are horizontal bar charts that represent time relationship graphically. Time is represented on the horizontal axis while tasks are represented on the vertical axis in a Gantt chart. The length of the bars indicate the amount of time taken to accomplish each task. Gantt charts are a useful tool for managers and help them in planning, allocating and scheduling resources.

Line charts

Line charts are used to indicate the changes that take place over a period of time. These can successfully indicate trends and display variations within each time period. Time is depicted on the  horizontal axis, and the amount is depicted on the vertical axis. In a line chart, more than one line may be plotted on a single graph. This facilitates comparisons. 

For example: Sale of small, midsize & large cars may be plotted on a single graph.  This graph would depict the increase or decrease in car sales, in each of these segments. 

Cumulative line charts, also known as surface charts or area charts, are used to depict cumulative effect or how various components contribute to the total.

Pie charts: Pie charts are similar to the stacked bar charts and represent how the parts of a whole are distributed. These are useful in depicting percentages but ineffective in showing quantitative totals or in making comparisons. Each slice should be labeled and colored, or shaded, so that each portion of the pie can be differentiated from the other. The slices of the pie should be arranged in such a manner that the slice depicting the largest portion of the pie should begin at the 12 o'clock position. 

Pictograms: Pictograms are visual aids which use pictures to depict numerical relationships. While using pictograms, care should be taken that all the pictures in a particular pictogram are of the same size.

Maps: Maps are useful in illustrating geographic relationships. Apart from being less confusing than a verbal explanation, maps are a more interesting and concise way of presenting geographical data. For example, when a tourist guide provides you with a map; it is easier for you to understand about the location of various places that you will be touring, as against the guide's verbal explanation about each location. 

Flowcharts and Organization charts: These are used to express the physical or conceptual relationships between various components of a process or departments of an organization, etc. Flowcharts are an indispensable visual aid to illustrate processes, procedures and relationships between components.

Organization charts depict the location, functions and interrelationships between various units of an organization.

Other visual aids

Apart from the visual aids that have been discussed above, floor plans, photographs, diagrams, cartoons and blueprints may also be used in reports. The easy availability of these sophisticated graphics and drawing software has led to increasing use in many reports and presentations. These software, being easy to use, are being increasingly used by managers to develop creative visuals for inclusion in internal reports. 

Introducing visual aids in the text

Text and visual aids should serve as partners in the communication process. The visual should supplement the text and the text should add meaning to the visual. 

Reference to the visual should be given before the reader comes across it in the text. This helps to draw the attention of the reader to that aspect of the visual that the writer wishes to emphasize and to supplement what has already been said in the text. However, if reference to the visual is not given in the text, the readers may draw their own inferences from the visual rather than what the writer wants them to infer. Thus the visual needs to be integrated with the text.

Life lessons from ANTS

All of us tend to look up to big people for lessons on how to get better. We are keen to learn the secrets of their success. But we forget that sometimes the biggest lessons in life come from the smallest folks around us. Now that's a good lesson to remember!

Take ants for instance. Would you believe those small creatures could teach us how to live a better life? Jim Rohn -- the great motivational guru -- developed what he called the 'Ants Philosophy'. 

He identified four key lessons from the behaviour of ants that can help us lead better lives. Jim Rohn is no more but his messages continue to inspire. Here then, are the four lessons from Rohn's 'Ants Philosophy'.

1. Ants never quit.

Have you noticed how ants always look for a way around an obstacle? 

Put your finger in an ant's path and it will try and go around it, or over it. It will keep looking for a way out. It won't just stand there and stare. It won't give up and go back.

We should all learn to be like that. There will always be obstacles in our lives. 

The challenge is to keep trying, keep looking for alternative routes to get to our goals.


2. Ants think winter all summer.

Remember the old story of the ant and the grasshopper?

In the middle of summer, the ant was busy gathering food for the winter ahead -- while the grasshopper was out having a good time. Ants know that summer -- the good times -- won't last forever. Winters will come.

That's a good lesson to remember.

When the going is good, don't be so arrogant as to believe that a crisis or a setback cannot happen to you.

Be good to other people. Save for a rainy day.

Look ahead. And remember, good times may not last, but good people do.

3. Ants think summer all winter.

As they suffer through the unbearable cold of the winter, ants keep reminding themselves that it won't last forever, and that summer will soon be here.

And with the first rays of the summer sun, the ants come out -- ready to work and ready to play.

When we are down and seemingly out, when we go through what looks like a never-ending crisis, it's good to remind ourselves that this too shall pass.

Good times will come. It's important to retain a positive attitude, an attitude that says things will get better.

As the old saying goes, tough times don't last. Tough people do.

4. Ants do all they possibly can.

How much food does an ant gather in summer? All that it possibly can! Now that's a great work ethic to have. Do all you can!

One ant doesn't worry about how much food another ant is collecting.

It does not sit back and wonder why it should have to work so hard. Nor does it complain about the poor pay!

Ants just do their bit. They gather all the food they can.

Success and happiness are usually the result of giving 100% - doing all you possibly can.

If you look around you, you'll find that successful people are those who just do all they possibly can.

Follow the four simple steps of Jim Rohn's 'Ant Philosophy' and you'll see the difference. Don't quit. Look ahead. Stay positive. And do all you can.

And there's just one more lesson to learn from ants.

Did you know that an ant can carry objects up to 20 times their own weight?

Maybe we are like that too. We can carry burdens on our shoulders and manage workloads that are far, far heavier than we'd imagine.

Next time something's bothering you and weighing you down, and you feel you just can't carry on, don't fret.

Think of the little ant. And remember, you too can carry a lot more on your shoulders!