24Oct 2018 by admin

9 Essential Elements of a Bill of Exchange (With Specimens)

Currency
“A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.” The maker of a bill of exchange is called the Drawer. The person who is directed to pay is called the Drawee. The person who will receive the money is called the Payee. When the payee has custody of the bill, he is called the Holder. It is the holder’s duty to present the bill to the drawee for his acceptance. The drawee signifies his acceptance by signing on the bill. After such signature the drawee becomes the Acceptor.In a bill of exchange sometimes the…
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24Oct 2018 by admin

7 Most Important Silent Features of the Consumer Protection Act, 1986 (India)

Trade
Important Salient Features of the Consumer Protection Act, 1986 are given below:1. The Act provides speedy redressal to consumer complainants. The Bill provides for setting up of a Consumer Redressal Forum in every district, a commission at the state level and the National Commission at the Centre. The Forum in the District will have original jurisdiction to redress complaints up to claim of Rs. 1 lakh (after amendment up to 10 lakhs).The State Commission will be original jurisdiction to settle claims up to the amount Rs. 10 lakhs (after amendment 20 lakhs). The National Commission can entertain any claim for damages above Rs. 10 lakhs (after amendment above 20 lakhs). The State Commission will be vested with appropriate Appellate and Revisional powers. ADVERTISEMENTS: 2. To promote voluntary consumer movement and…
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24Oct 2018 by admin

Brief Notes on “Breach of a Condition”, “Implied Condition” and “Warranties”?

Trade
1. Condition is a term which is essential to the main purpose of the contract. Warranty is only a collateral term. It is subsidiary to the main purpose of the contract.2. Breach of a condition gives the aggrieved party a right to repudiate the contract. It also creates a right to get damages. Breach of warranty entitles the aggrieved party to claim damages only.3. A breach of condition may under certain circumstances, be treated as a warranty. But a warranty cannot become a condition. Image Source: alarabrecruiting.com Implied Condition and Warranties: ADVERTISEMENTS: A stipulation (or term) in a contract of sale of goods may be express or implied. Express terms are those which have been expressly agreed upon by the parties. Implied terms are those which have been enacted in…
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24Oct 2018 by admin

14 Main Disadvantages of “Market Mechanism”

Investment
Disadvantages of Market Mechanism are given below:(i) There is as much evidence of market failure as there is of failure in state intervention. Both market and government are imperfect alternatives. ADVERTISEMENTS: (ii) Market can only serve those who are part of the market system. It is a good servant but a bad master.(iii) Market forces lead to sometimes misallocation of present and future resources or at least to one which may not be in the best long-run social interest, as the process fails to take care of priorities. Image Source: omahainsurancesolutions.com(iv) Market mechanism fails to provide a proper guideline for using appropriate material for selecting project. It diverts investment to those directions in which profits are high, neglecting socially desirable low profit ventures.(v) Do not bring competition in fullest sense.…
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24Oct 2018 by admin

6 Chief Features of Industrial Policy Resolution of 1977 (India)

Investment
In March, 1977, the Janata Party came to power at the centre. Criticising the 20 years of the functioning of the Industrial Policy of 1956, the Janata Party Industrial Policy statement (December, 1977) mentioned: Despite some desirable elements, the Industrial Policy of congress resulted in certain distortions: “unem­ployment has increased, rural urban disparities have widened and the rate of real investment has stagnated.Since the new policy was drafted by the hardcore Gandhians in the Janata Party, its major emphasis was on the growth and development of the small sector. The chief features of the policy were Image Source: gauravmisraa.files.wordpress.com ADVERTISEMENTS: 1. Principal thrust was on the Development of small Industries: The Janata Party accused the Congress of over emphasising on large industries, neglecting the development of cottage and small industries.…
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24Oct 2018 by admin

Classification of Small Scale Industries (SSI) in India

Investment
For long, the term ‘small enterprises’ means an industrial unit which employed less than 50 workers producing with electricity and than 100 workers without using electricity and had assets not exceeding Rs 5 lakhs.In 1960, and even now the definition delimits the size of industries in terms of capital investment alone. Later on in 1966, some modification was made but that reduced the items to be included in evaluating the capital investment.In 1966, the small scale enterprises were defined as undertakings with a fixed capital investment of less than Rs. 7.5 lakh and ancillaries with a fixed capital investment of Rs 10 lakh. Image Source: grips.ac.jp ADVERTISEMENTS: Investment will imply investment in fixed assets in plant and machinery, whether held in ownership term or by lease or by hire purchase.…
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24Oct 2018 by admin

8 Contributions of Public Enterprises towards the Growth of Indian Economy

Economic Development
Through the establishment of public sector undertakings the basis of further rapid industrialisation has been attempted. They have also made a significant contribution to the balanced economic development in the country.The following are some tangible contributions of the public enterprises to the growth process of our economy. (1) Contribution to Capital Formation: ADVERTISEMENTS: Capital formation is a necessary condition for economic growth. This creates a nucleus for further growth. (2) Development of Infrastructure: Infrastructural facilities are as much essential for the economy to take-off, as the run-way for an aeroplane to take off. Infrastructure refers to power, transport, communication, irrigation, steel, cement and fertilizers. The public sector has played a pivotal role in creating infrastructural facilities in the development process of our economy. Image Source: mhi-global.com (3) Role in Export…
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24Oct 2018 by admin

9 Important Merits and Demerits of Disinvestment (Privatisation) Policy of India

Investment
“Privatization” or “Disinvestment” are used to mean same thing i.e., divestment of PSEs required in public interest.The main objective of disinvestment is to put national resources and assets to optimal use and in particular to unleash the productive potential inherent in our public sector enterprises. The policy of disinvestment aims at modernization of PSEs, creation of new assets, generation of employment and retiring of public debt. Merits/Objectives of Disinvestment: ADVERTISEMENTS: 1. To obtain release of the large amount of public resources locked up in non-strategic Public sector units for re-employment in areas that are much higher on the social priority e.g. health, family, welfare etc. and to reduce the public debt that is assuming threatening proportions.2. Privatization would help stemming further outflows of the scarce public resources of sustaining the…
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24Oct 2018 by admin

7 Most Important Functions of World Bank

Currency
The functions performed by the World Bank follow from the objectives set out in its articles when it was formed. They can be summed up as follows.(a) It grants loans for long and medium terms: Loans may be divided in two types: Reconstruction Loans and Development Loans. The first is given to countries” damaged by the last war, the second to all countries who require such loans for development purposes.(b) The bank gives loans to governments and also to private borrowers (to industrial concerns for particular projects). In the later case the bank demands a guarantee from the government, the central bank and similar organizations of the region in which the project is to be undertaken. The bank generally does not provide the entire cost of a private project. The…
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24Oct 2018 by admin

What are the Merits and Demerits of Indirect Taxes? – Explained

Budget
Merits and Demerits of Indirect Taxes are explained below: Merits of Indirect Taxes: 1. Indirect taxes have a great merit of convenience. They are paid in small amounts and at intervals instead of in one lump-sum.2. The burden of an indirect tax is less felt as it is hidden in the price of the commodity. ADVERTISEMENTS: 3. Indirect taxes can be elastic if they are imposed on articles having inelastic demand.4. Indirect taxes have a wide area of functioning. It makes the tax system broad based as they are paid by all classes of people. Demerits of Indirect Taxes: 1. The main demerit of indirect tax is that they are often inequitable. If imposed on commodities of common consumption, the burden of taxation on the poorer section may be heavy.…
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